MMTC Ltd Management Discussions

Overview of Global Trade & Developments

The past year 2025 commenced with elevated global uncertainty, shaped by evolving trade policies, geopolitical tensions and uneven economic growth across regions. The world GDP grew at a rate of 3.4% in 2025. While moderating in ation and continued digital investments provided pockets of resilience, global GDP growth remained subdued, with enterprises exercising greater caution in discretionary spending. Technology spending faced sharper scrutiny, with decisions tied to clear business outcomes, productivity gains, and cost optimization.

The global economy in 2025 navigated a landscape de ned by divergent growth paths and a fundamental reordering of trade priorities. The most signi cant disruptor in 2025 was the implementation of tari rates climb to levels not seen in a century, triggering a wave of global "front-loading" where businesses rushed to import goods early in the year. Nevertheless, global growth is estimated to have slowed to ~2.8-3.0% in 2025, down from the 3.3% seen in 2024. This slowdown, however, was not uniform across major economies.

The Indian economy is estimated to grow at 7.6% in FY 2025-26, up from 7.1% in FY 2024-25, as RBI rate cuts along with cuts in personal tax and GST led to recovery in consumption demand. Supportive in ation backdrop led RBI to ease policy rates by 100 bps in FY 2025-26. RBI also enhanced liquidity through measures like CRR Cuts, bond purchases and long-term FX swaps. Depreciation pressure on Rupee intensi ed during second half on back of foreign portfolio out ows and surge in crude oil prices. At the end, Rupee registered the largest annual depreciation against Dollar to close the year at around 95 levels.

The Economic Survey 2025-26, tabled in the Parliament of India, con rms that real GDP expanded by 7.4% for the scal year, consolidating Indias position as the worlds fastest-growing major economy for the fourth consecutive year. The o cial parliamentary document establishes that this performance was anchored by an exceptional 1.7% headline in ation rate and a robust 7.8% expansion in Gross Fixed Capital Formation (GFCF).

Indian economy is in the middle of a change that represents an unprecedented economic challenge and opportunity. Geo-Economic Fragmentation (GEF) is replacing globalization leading to imminent economic realignments and readjustments. To realize the vision of Viksit Bharat by 2047 India will need to achieve a growth rate of around 8 per cent at constant prices, on average, for about a decade or two. Corporate India showed signs of renewed vigor in 2025-26, with listed private non- nancial companies reporting a sales growth of 13.9%, an improvement from the 10.1% recorded in the Q3 FY 2026.

Indias economy is expected to remain the fastest-growing major economy in the world during the 2026-27 nancial year, with real GDP growth projected at 6.6%. While this growth is slightly slower than the 7.7% recorded last year due to global challenges, the countrys economic foundation remains very strong. This steady growth is driven by the governments heavy investments in roads and digital infrastructure, healthy bank balances, and solid corporate earnings. However, everyday consumers and businesses may face some challenges, as rising global oil prices and erratic monsoon weather are expected to push retail in ation up to 5.1%, causing the Reserve Bank of India to keep interest rates steady at 5.25% to control prices. Fortunately, Indias historic foreign exchange reserves of over USD 701 billion will act as a strong shield, protecting the local currency and keeping the overall economy safe from global market shocks

During the year 2025-26, almost no business activities were undertaken by the Company and MMTC continued as an almost non-operative company in pursuance of the direction of the Ministry of Commerce & Industry and approval of the Board of Directors. The company achieved Revenue from operations of Rs. 3.41 crore (L.Y. Rs.2.69 crore) which

is the revenue from wind mill operations in Karnataka State. Your Company registered a pro t after tax of Rs. 212.07 crore as against pro t of Rs. 69.53 crore last year. The pro t is mainly derived from Pro t on Sale of Investment, Interest Income and Dividend Received from its JV. The performance of the company during the year 2025-26 vis-a-vis the previous year is summarized below:

The source of funds of the company as on 31st March, 2026 comprises of shareholders fund amounting to Rs. 1699.13 crore (including equity share capital of Rs.150 crores and other equity of Rs. 1549.13). Non-Current and Current Liabilities of Rs. 28.81 crore and Rs.646.34 crore respectively. These funds have been deployed, inter alia, towards non-current assets amounting to Rs. 178.43 crore and current assets of Rs. 2195.85 crore as on 31st March, 2026.

Statutory Auditor is appointed by the C&AG and professional agencies conducting regular and exhaustive internal audits are appointed through GeM Portal. The observations/ recommendations made by the auditing agencies are reported to the Audit Committee of Directors along with a report on the compliance of directions issued in the past. The quarterly nancial statements as well as reports of the Statutory Auditors and Government audit party are reviewed by the Audit Committee of Directors before these are submitted to the Board of Directors.

MMTC has Internal Audit System & Procedures which are in line with its business operations. The scope of audit is reviewed by the Audit Committee. The directions, if any, of Audit Committee are duly complied. The company has an Internal Audit Division, to coordinate with external auditing rms in conducting internal audit. The Audit Committee comprises of Shri Srinivas Rao Maddi, Independent Director as Chairperson, Ms. Arti Bhatnagar, Govt. Nominee Director, Smt. S. Meenakshi, Independent Director, Shri Nabarun Nayak, Independent Director and Shri Dinesh Dubey, Independent Director as Members of the Committee. Though the tenure of Independent Directors, Shri Srinivas Rao Maddi, Shri Dinesh Dubey and Smt. S. Meenakshi has expired on 09.06.2026, 24.04.2026 and 08.06.2026 respectively. Also, Govt. Nominee Director Smt. Arti Bhatnagar superannuated on 26.09.2025 Nabarun Nayak

MMTC Transnational Pte. Ltd. (MTPL), Singapore, the wholly owned subsidiary of your Company engaged in commodity trading is under liquidation as per Singaporean laws.

The Government is of the view that there is no requirement of MMTC as a central canalizing agency and that relevant Ministry/Departments can do trading through their own PSUs/other agencies. However, formal decision of Government regarding closure of the Company is awaited. Till then, the Company has to meet its statutory obligations with stock exchanges, employees, administrative overheads etc from the funds it got from divestment of its JV NINL in 2022.

The Company is continuing on non-operating basis and no business activities are being carried out by MMTC in pursuance of direction of the Administrative Ministry/Board. Since there is no change in the business activity and nancial position of the Company, therefore exemption from signing of MOU for the year 2024-25 has also been requested from DPE through DoC.

The Company continuously keeps reviewing potential areas of cost reduction and takes appropriate steps for reduction in avoidable expenses and avenues of generating income by renting out surplus o ce space available with MMTC.

The Company is not carrying out any business activity for last three years and is continuing as non-operative. The manpower of the Company is also reducing due to resignations, superannuation, VRS, etc and there are no fresh recruitments in MMTC. Further, the position of Director (P) is currently vacant, while all other Functional Director roles remain lled. Therefore, the certain statements contained in this Annual Report describing the Companys objectives, expectations or anticipations may be forward-looking statements within the meaning of applicable laws and regulations and the actual results may di er materially from the expectations.