State-owned trading firm MMTC today reported a net loss of
Rs 113.73 crore for the quarter ended September 30, largely due to an ad-hoc
provisioning of Rs 194.67 crore against a transaction done in the last fiscal.
The company had reported a net profit of Rs 18.85 crore during the
corresponding period of last fiscal.
Net sales of the company was also down by about 45 per cent
to Rs 8,846.98 crore during the quarter as compared to Rs 16,046.64 crore of
the July-September period of FY'12, it said in a filing to the BSE. According
to the filing, MMTC reported extraordinary items (net of tax expense) of Rs
131.51 crore during the quarter, which represents ad hoc provision of Rs 194.67
crore.
The provisioning has been "made against amount
recoverable from customer arising out on account of certain acts of commission
and omission at regional office, Hyderabad, relating to bullion transactions
during 2011-12 pending investigation," the filing said.
It added that the company has received security in the form
of equitable mortgage of land valued at Rs 108.90 crore and jewellery of about
Rs 46.50 crore. The valuation has been done by a government approved valuer,
the company said, adding that the company has received legal notice in respect
of ownership of land, which has been legally replied to.
"However, keeping in view the uncertainty in reliability
of these securities, ad-hoc provision has been made," the MMTC filing
said. The company, which is on the disinvestment radar of the government during
the current fiscal, also reported an exceptional item of Rs 12.62 crore but did
not provide details.
During the quarter, its total expenses were at Rs 8,823.46
crore, while it paid a tax of Rs 8.54 crore. Shares of the company closed today
at Rs 727.65 apiece on the BSE, down 0.82 per cent from their previous close.
Source: www.moneycontrol.com
Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd
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