MMTC Limited has submitted its Statement on Impact of Audit Qualifications for the Audited Financial Results (Standalone and Consolidated) for the financial year ended March 31, 2026. This submission follows SEBI regulations requiring disclosure of audit qualification impacts. The statement details a qualified opinion related to the Anglo Coal matter, where a provision of ₹82.82 crore was not recognized by the company, but disclosed as a contingent liability.
MMTC Submits Audit Qualification Impact Statement
MMTC Limited has formally submitted its Statement on Impact of Audit Qualifications for the financial year ended March 31, 2026. This filing, made in accordance with SEBI regulations, addresses the impact of audit qualifications on the company’s standalone and consolidated financial results.
Key Financial Data Affected
The provided statements outline the differences between audited figures (as reported) and adjusted figures (after adjusting for qualification). For the standalone financial results:
- Turnover / Total Income remained steady at ₹180.58 crore for both reported and adjusted figures.
- Total Expenditure showed a notable adjustment from ₹-282.72 crore to ₹-199.90 crore.
- Net Profit/(Loss) adjusted from ₹212.07 crore to ₹129.25 crore.
- Earnings Per Share adjusted from ₹1.41 to ₹0.86.
- Net Worth adjusted from ₹1699.13 crore to ₹1616.31 crore.
For the consolidated financial results:
- Turnover / Total Income was reported and adjusted at ₹180.58 crore.
- Total Expenditure adjusted from ₹-282.72 crore to ₹-199.90 crore.
- Net Profit/(Loss) adjusted from ₹387.38 crore to ₹304.56 crore.
- Earnings Per Share adjusted from ₹2.58 to ₹2.03.
- Net Worth adjusted from ₹2120.72 crore to ₹2037.90 crore.
Nature of Audit Qualification
The audit qualification is detailed as a Qualified Opinion, appearing for the first time. The basis for this qualification, as outlined in Annexure 1, pertains to the Anglo Coal matter. The auditors noted a non-recognition of an additional provision of ₹82.82 crore by the company, which was instead disclosed under contingent liabilities.
Management’s Response and Views
MMTC Limited’s management, in Annexure 2, respectfully disagrees with the auditors’ qualification. The company states that the matter involving Anglo Coal relates to a deposit of ₹1088.62 crore with the Hon’ble Delhi High Court. While an amount of ₹1000 crore was released, the remaining liability was subject to judicial adjudication and clarification on exchange rates. Management’s assessment, based on available accrued interest and considering Ind AS 37, indicates that the probable outflow for the differential liability of ₹82.82 crore is not met, thus deeming it appropriately disclosed as a contingent liability rather than a provision.
Signatories
The statement is signed by the CFO, DIR(M), Chairman (Audit Committee), Statutory Auditor, and CMD, reflecting the company’s official endorsement of the submitted information.
Source: BSE
