MMTC Ltd Management Discussions

Overview of Global Trade & Developments

Global trade hit a record $33 tnllion in 2024, growing by 3 7% ($1.2 trillion). Most regions saw positive growth, except for Europe and Central Asia. Services led the expansion in 2024. growing 9% annually and adding S700 billion (nearly 60% of the total growth). Trade in goods grew at a slower 2%. contributing $500 billion. However, growth in both sectors slowed in the second hall of 2024. with services growing Just 1% and goods less than 0.5% in the fourth quarter. Developing economies trade grew faster Their imports and exports rose 4% for the year and 2% in the fourth quartor. driven mamly by East and South Asia. Merchandise trado imbalances widened Mounting geo-economic tensions, protectionist policies and trade disputes signal likely disruptions ahead. Recent shipping trends also suggest a slowdown, with tailing freight indices indicating weaker industrial activity, particularly in supply chain-dependent sectors

Ovorvicw of.Economic Oeyolopmente in India during 2Q24-25

In the Economic Survey 2025 presented to the Parliament on January 31,2025, Indias real GDP growth is projected at 6.4% for FY25, The GDP growth for FY26 is forecasted between 6 3% and 6.8%. Service sector contributes 55.3% to total GVA in FY25 majody focusing on the Skill development lor workforce and simplifying grassroots-level regulations Geopolitical tensions, ongoing conflicts and global trade policy risks continue to pose significant challenges to the global economic outlook

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 2024-25. with listed private non-financial companies reporting a sales growth of 7.2%. an improvement from the 4.7% recorded the previous year,

Outlook far2025-26

Indias economic outlook for 2025-26 remains positive, with strong domestic demand and government initiatives expected to drive growth While global challenges exist, Indias resilience and strategic focus on key sectors position it as a bright spot in the global economy The real GDP growth m FY26 is expected to grow between 6.3 and 6.8 per cent, keeping in mind the upsides and downsides to growth

The Indian economy is expected to maintain a promising outlook In 2025-26, supported by several positive factors, according to Ihe Reserve Bank of Indias (RBI) annual report for 2024-25 The report emphasized that economic growth momentum is likely to continue driven by a revival in consumption demand, healthy balance sheets among banks and corporates, and easing financial conditions

RBI noted Indias expanding rolo in global trade, with participation In 14 free trade agreements (FTAs) and six preferential trade agreements (PTAs). plus ongoing trade negotiations with the US, Oman. Peru, and the European Union (EU). all expected to support trade growth

MMTC-2024-25 in retrospect

Business Activity

Dunng th8 year 2024-25, no business activities were undertaken by the Company and MMTC continued as a non- operative company in pursuance of Ihe direction of the Ministry of Commerce & Industry and approval of the Board of Directors. The company achieved Rovonue from operations of Rs. 2.69 croro (L.Y. Rs.5.34 crore) which Is Die revenue from wind mill operations in Karnataka State. Your Company registered o profit after tax of Rs. 69 53 crore as against profit of Rs. 68.21 crore last yoar The profit is mainly derived from Interest Income and dividend received from its JV. The performance of the company during the year 2024- 25 vis-a-vis the previous year Is summarized below

(Rupcos In croros)

Source and Utilization of Funds

The source of funds of the company as on 31 March 2025 comprises of shareholders fund amounting to Rs 1456 05 crore Including equity share capital of Rs. 150 crores and non-current and current liabilities of Rs 29.50 crore and Rs 1746.76 crore respectively. These funds have been deployed, inter alia, towards non-currant assets amounting to Rs. 318.72 crore and current assets ot Rs. 2913.59 crore as on 31 March. 2025.

Internal Control Procedures

Statutory Auditor is appointed by the CAG 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 financial 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 ot Directors.

MMTC has Internal Audit System & Procedures which are in line 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 externa! auditing firms in conducting internal 3Udrt. The Audit Committee cornpnses of Shn Srimvas Rao Maddi, Independent Director as Chairman, Ms Arti Bhatnagar. Govt. Nominee Director, Smt S. Meenakshi Independent Director. Shn Nabarun Nayak. Independent Director and Shri Dinesh Dubey, Independent Director as Members.

Subsidiary Compony

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

WgyForward 1 ortho Company

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 ilsJVNINLin 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 financial 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 fakes appropriate steps for reduction in avoidable expenses and avenues of generating Income by rent) ng out surplus office space available with MMTC.

Cautionary Statement

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, all posts of Functional Directors except Director (Finance) are vacant. Therefore, the certain statements contained in this Annual Report describing the Companys objectives, expectations or anticipations may be forward-looking statements within the meaning ot applicable laws and regulations and the actus! results may differ materially from the expectations