Ladies and Gentlemen,

I have great pleasure in welcoming you today to the 46th Annual General Meeting of your Company which has successfully completed another year of serving our nation with international trading of various products, adding momentum and value to its economic progress and touching, though often invisibly, the lives of its people which is a matter of joy and pride for every member of MMTC family.

GROWTH OF MMTC- An Overview

An occasion such as this is appropriate for a look at the past. Your company was incorporated in the year 1963 primarily to regulate the international trade of Minerals and Metals, with an initial seed capital of Rs 3 crores contributed by the Govt of India. During the first full year of operations in 1964-65, the company had achieved a turnover of Rs. 67.79 crores and a net profit of Rs. 1.71crores. Over the years, the Company created a creditable track record of molding a nascent company into a trading giant with a total equity of Rs. 50 crores and reserves exceeding Rs. 1073 crores with its turnover touching a staggering figure of Rs. 36821 crores in 2008-09 with zero long term debt liability. Today MMTC - India's largest International trading Company has a strong nation wide trading network offering a large and wide range of products and services and is the largest exporter of Minerals from India, largest single importer/ supplier of bullion in the country, leading exporter/importer of Agro commodities and a major player in Coal & Hydrocarbon, Metals and Fertilizers sectors. The Company has unique record of uninterrupted profit and dividend payment since last 40 years.

PERFORMANCE DURING 2008-09

All of us have a reason to feel proud of the strength of character, the sagacity, the resilience and the foresight with which MMTC has successfully negotiated the last 46 years of its operations. All these sterling characteristics were severely tested during 2008-09 and I am happy to share with you that your Company was able to weather the storm and has continued to be successful. The suddenness and severity of the global financial crisis caught everybody by surprise. We, in India, had initially hoped that the inherent strength and momentum of our rapidly growing economy would insulate us from the global ills. However, our economy started to slow down even as the global economy went into reverse gear and before we knew, we were fighting with our backs to the wall. According to World Trade Organization economists, World economic growth slowed abruptly in 2008 against the backdrop of the worst financial crisis since the 1930s. Growth in 2008 was down to 1.7%, from 3.5% a year earlier and was the slowest since 2001- well below the 10 year average rate of 2.9%. Developed economies only managed a meagre 0.8% growth during last year, compared to 2.5% in 2007. Developing economies also behaved in a similar fashion and expanded their output in 2008 by 5.6%, down from 7.5% in 2007.

Despite signs of the sharp deterioration in trade being evident in the later part of 2008 as demand sagged and production slowed, your Company exhibited inspiring performance by achieving record level top line consecutively for the fifth year running by registering its highest ever business turnover of Rs. 36,821 Crores during 2008-09. This best ever business turnover since MMTC's inception in 1963 includes highest ever Exports of Rs. 4,576 crores, highest ever Imports of Rs. 30,695 crores and domestic trade of Rs. 1,550 crore.  The other trade related earnings contributed Rs. 197 crores. Your Company earned trading profit of Rs. 321 crores.  The profit before tax and profit after tax earned by the company amounted to Rs. 217 crore and Rs. 140 crore respectively. Earning per share for the financial year 2008-09 has been Rs.28.04. Your company continues to be a zero long-term debt company.

Subsidiary Company

During the year 2008-09, MMTC Transnational Pte. Ltd. Singapore (MTPL)- the wholly owned subsidiary of your Company also achieved its highest ever business turnover of USD 686 million and generated its highest ever net profit of USD 6.91 million, registering growth of 254% over previous year. The net worth of MTPL stood at USD 14.58 million as on 31st March 2009. It has so far paid total dividends of USD 4.08 million besides multiplying its net worth by nearly 15 times since its inception in end 1994.

As a strategy to diversify and add value to trading operations, your company jointly with the Govt of Orissa, has set up Neelachal Ispat Nigam Limited (NINL) - an iron & steel plant of 1.1 million tones capacity, 0.8 million tonne coke oven plant with captive power plants The project has firm Iron ore supply linkages and also has captive Iron ore mining rights for reserves estimated at about 150 million tons. The phase-1 (Pig Iron) of the plant with a project cost of Rs.1910 crores has already commenced commercial production. The construction of phase-II of the Project costing Rs.1810 crores is under progress. During the financial year 2008-09 NINL has recorded a sales turnover of Rs.1359 crores with a net profit after tax of Rs.79.2 crores.

CORPORATE GOVERNANCE IN MMTC

We at MMTC are continuously dedicated to promoting the principles of sound corporate governance norms as a self discipline code for sustainable enrichment of stakeholders value.

This year again your company has received ‘NIL’ comments from CAG successively for third year in a row. The Statutory Auditors too have not given any adverse comments having an impact on the profit for the year 2008-09. This proves the commitment and conviction of your company for the best accounting and disclosure practices.

LOOKING AHEAD

While at one level we gamely combated the effects of the downturn, at another we have been aggressively pursuing our aim of diversification, with a view to add value to MMTC’s existing trading operations, through various strategic initiatives following public- private partnership route. These value multiplier initiatives to enhance your company’s future sustainability, in broad terms include:

1. Setting up of a Commodity Exchange under the name and style of “Indian Commodity Exchange Limited” which is likely to commence operations shortly.
2. Setting up of a Currency Futures Exchange under the name and style of “United Stock Exchange of India Ltd” which also is likely to commence operations shortly.
3. Joining hands with an international producer as a joint venture partner for setting up a gold /silver medallion manufacturing unit, which would also include a gold refinery as an integral part, under the name and style of “MMTC-Pamp India Private Limited”. The civil construction activities for the said unit have already commenced in Haryana and the unit is likely to commence trial production in mid 2010.
4. For effective marketing of the finished products from above unit, as well as jewellery from other sources, your company is be setting up, in partnership with a leading Indian company, a chain of retail stores at various cities in India for medallions, jewellery and its homegrown brand of ’SANCHI’ silverware. Towards this end a special purpose vehicle (SPV) under the name and style of “MMTC-Gitanjali Private Limited” has been incorporated and to begin with one retail store each in Delhi, Gurgaon and Ahmedabad has already been opened under the name “SHUDHI” by the said SPV.
5. Setting up permanent berth with loading facilities for Iron ore at Ennore Port jointly with SICAL and L&T Infrastructure Ltd. under the name and style of M/s. SICAL Iron Ore Terminals Limited, Chennai. The permanent berth being constructed by M/s. SICAL Iron Ore Terminals Limited is likely to be operational by mid 2010.
6. Development of deep draught Iron ore berth at Paradeep Port (Orissa) jointly with Noble Group Ltd and Gammon Infrastructure Projects Ltd under the name and style of M/s. Blue Water Iron Ore Terminal Private Ltd.
7. Towards investing in mining infrastructure your Company is promoting a joint venture Company with M/s TATA Steel Ltd. for exploration and development of mines for minerals, ferrous and non-ferrous ores, precious metals, diamonds and coal etc.
8. Your Company has been allotted a coal mine in Jharkhand having estimated reserves of about 700 million MT, pre-feasibility study of which has already commenced and prospecting license is likely to be issued shortly by the concerned authorities.

These value multiplier projects, which your company is pursuing, are progressing well and once commissioned shall provide integrated dimensions to your company’s diversification pursuit with huge upside potential.

Acknowledgements

I take this opportunity, to express my thanks to all the shareholders for their continued trust in the Board of Directors and the Management of the Company. I am grateful to the Govt of India, our principal shareholder, for its full support and valuable guidance. On behalf of the Company, I would also like to thank all our customers, suppliers and other business associates for their support and co-operation without which the success of the past 46 years would not have been possible.  I look forward to your continued support in the Company’s exciting journey into the future.

Sanjiv Batra

Chairman and Managing Director

New Delhi

30th September 2009