Ladies and Gentlemen,

On behalf of myself and my colleagues on the Board, I wish to extend a very warm welcome to you at this 45th Annual General Meeting of your Company.

As the curtain falls on the Financial Year 2007-08 and the events of the past 12 months become a part of history, it is with a feeling of satisfaction that I present the year’s results of your Company. The year 2007-08 was a period of hectic activity for the company and I am happy to share with you some of the key highlights of the year. Your company strengthened its position of being India's largest trading company through a strategy of backward and forward integrations and enhanced focus on profitability.

FINANCIALS

These strategic moves enabled your company to achieve highest ever topline & bottomline consecutively for the fourth year. It achieved record level business turnover of Rs. 26,423 crores during 2007-08 which includes Exports of Rs. 3911 crores, Imports of Rs. 20,450 crores and domestic trade of Rs. 2062 crores – all being at the all time highest levels in last 45 years. The net profit of Rs. 201 crores is also the highest ever net profit after tax earned by the Company since inception.

SUBSIDIARY COMPANY

During the year 2007-08, the wholly owned subsidiary of your Company - MMTC Transnational Pte. Ltd. Singapore (MTPL), also achieved its highest ever business turnover of USD 557 million. and also generated highest ever Profit After Tax of USD 1.95 million during 2007-08, registering a growth of 28% over previous year. The net worth of MTPL stood at USD 9.14 million as on 31st March 2008.

MMTC'S PROMOTED PROJECT- Neelachal Ispat Nigam Ltd. (NINL)

Neelachal Ispat Nigam Limited (NINL) - an iron & steel plant set up by your company jointly with Govt. of Orissa also recorded its highest ever sales volumes of Rs 1474 crores besides generating highest ever cash profit and net profit of Rs. 213 crores and Rs.120 crores respectively.

Your company takes pride on its commitment to continuously promote & strengthen the principles of sound corporate governance norms and follow them as a self discipline code for sustainable enrichment of value for stakeholders, which also include investors, directors, employees, suppliers, customers and the community in general.

SUSTAINABLE AND INCLUSIVE GROWTH

My address to you during last year’s AGM had laid stress on “Enhancing Sustainability“. By providing goods and services to consumers, and continuously enhancing stakeholder returns, corporate bodies can create sustainable value for society. Since corporates draw large resources from society, they should find innovative ways to build social and natural capital. While we may not be able to entirely achieve this alone, there is need to create public-private partnerships, besides inventing new business models which blend the value creation for stakeholders with the ultimate mission of achieving sustainable growth.

I would now like to update you on the measures undertaken in this direction to enhance future growth of your company.

Setting up of a Commodity Exchange

To evolve a new business model for taking advantage of new opportunities emerging in the free market environment, your company has joined hands with M/s Indiabulls Financial Services Ltd for setting up of a Commodity Exchange through SPV route. Forward Markets Commission, Govt of India has granted ‘in-principle’ approval for the same. Setting up of the Commodity Exchange is also in line with your company’s corporate objectives as it would develop trade related infrastructure, provide services to SMEs, improve return on capital employed besides helping your company to become an international leader in this field.

Setting up a gold /silver medallion manufacturing unit

Your company has been in the business of bullion for over 20 years and is a leading player in India. Presently MMTC is making medallions in a small medallion unit, which has limited capacity. To cater to large demand of medallion in India your company is setting up a large unit for medallions jointly with M/s. PAMP S.A.- the world's largest independent refiner of Precious Metals - which would also include a gold refinery as an integral part. The land for setting up the unit has been allotted in the state of Haryana and the project is expected to be in operation before Diwali next year.

Opening of Retail Chain for Jewellery Marketing

India has a large and growing domestic jewellery market and at present the industry is dominated by family jewellers. Organized players have been growing steadily. India's jewellery market is expected to get more organized and the share of family jewellers is expected to decline. Keeping in view the expanding retail sector in India, it is felt worthwhile to expand in retail through JV route with an experienced and renowned Company as the best way forward. Accordingly, M/s. Gitanjali Gems Limited, which is a fully integrated manufacturer, exporter and retailer of Jewellery and Diamonds with International affiliations, has been selected as a Joint Venture partner for the said activity.

Mining & exploration of minerals

As per the National Steel Policy of the Government of India, steel production in India is projected to grow to 110 million tonnes by the year 2020. There is going to be a corresponding increase in requirement for raw materials in view of the increasing steel demand in India. This would in turn require exploration and development of mines as well as extraction and processing of minerals to be used as raw materials for such steel making units. To facilitate mining and processing of various minerals, ferrous and non-ferrous ores, coal, precious metals (like gold and silver), diamonds etc, both in India and abroad your company is collaborating with M/s Tata Steel by forming a joint venture company.

Coal mining

Coal and energy is a thrust area for your Company. Your company has been allotted a coal mine in Jharkhand having estimated reserves of about 700 million MT. The pre-feasibility study of the said Coal Block has already commenced and the application for prospecting license has been submitted by your company to the concerned authorities.

Development of Permanent Berth at Ennore Port

Ministry of Shipping, Government of India had decided that Iron ore handing at Chennai Port would be discontinued in due course and that facilities at Ennore port should be developed as an alternative. Your company has been exporting Iron Ore from Chennai Port for many decades and this decision of the Government may have impact on your company’s Iron Ore exports. Your company has joined hands with M/s SICAL and L&T Infrastructure to form a consortium for setting up a permanent iron ore loading berth at Ennore port. MMTC would be holding 26% equity stake in the consortium company. Construction work on the permanent berth and ancillary facilities has already commenced. Zero date for the project was in February 2008 and the berth is expected to be in operation by beginning of 2010.

Setting up Free Trade and Warehousing Zones

The concept of Free Trade & Warehousing Zones (FTWZ) envisages creation of trade related infrastructure to facilitate import and export of goods and services with freedom to carry out trade transactions in free currency. FTWZ is a special category of SEZs with a focus on trading and warehousing. With an intent to take on the roles of developer, investor and part user of the FTWZ project apart from being involved in running the SPV concerned, your company and M/s. Infrastructure Leasing & Financial Services Ltd. (ILFS) have decided to jointly work towards setting up such FTWZ initially at Greater Noida, Kandla and Haldia. M/s Mitsui & Co. of Japan has been inducted in the Noida SPV as strategic partner. The SPV which has been incorporated to set up free trade and warehousing project at Kandla has since been allotted 100 acres of land for the project and the SPV for project at Haldia has also been allotted 200 acres of land.

Entry into non-conventional energy sources

Your company has already diversified into the area of clean, non-conventional and renewable energy sources by setting up a 15MW Wind Energy Farm in the state of Karnataka, which has already been commissioned. The plant is generating power, which is being sold to the State Electricity Grid and has generated revenues amounting to Rs. 8 crores during the year 2007-08

CONCLUSION

Your Company is the largest trading company of India. Although it ranks amongst top five companies in India in terms of market capitalisation and its size of operations in India being significant, your company is still a small enterprise when viewed in the global context. With your company having the requisite ability to significantly enhance its position in international arena, I am confident that over time it will become a major player of global dimensions and create ever growing value for its stakeholders. While the challenge of attaining global dimensions is inspiring and exciting, I hope, the cutting edge in realisation of such an aspiration would be provided by your unstinted faith in the Board of Directors besides the continued support of the Department of Commerce, all Govt. Agencies, RBI and other Banks, Railways, Customs, Ports, NMDC, Customers and Suppliers, as in the last 45 years of your company’s history.

Thank you ladies and gentlemen for your attention.

Sanjiv Batra

Chairman and Managing Director

New Delhi

30th September 2008