MMTC Limited has notified the National Stock Exchange of India Ltd and Bombay Stock Exchange Limited that the tenure of Nabarun Nayak as Non-Executive Independent Director on its Board expires on August 2, 2026. The intimation, issued on August 3, 2026, carries no immediate financial impact but marks a scheduled change in the company’s governance structure.

The disclosure was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015. Ajay Kumar Misra, Company Secretary of MMTC Limited, signed the communication to the exchanges.

Key Details

The expiration is a routine procedural event tied to the maximum term limits for independent directors under Indian corporate governance norms. No successor has been named in this filing, and no further action by shareholders is required at this stage.

MMTC Limited reported a qualified audit opinion for the financial year ended March 31, 2026, following a disagreement with its statutory auditors over the recognition of a provision for the Anglo Coal case. The auditor identified a shortfall of Rs. 82.82 crore, which the company classified as a contingent liability rather than a provision. This accounting treatment impacts the reported profitability and net worth for the fiscal year, as the adjustment reduces the standalone net profit from Rs. 212.07 crore to Rs. 129.25 crore.

Audit Qualification Details

The qualification arises from the Anglo Coal litigation, where MMTC had deposited Rs. 1088.62 crore with the Delhi High Court. Following a court order dated November 10, 2025, Rs. 1000 crore was released to Anglo on November 17, 2025. The company estimated the remaining liability at Rs. 170.58 crore but recognized a provision of only Rs. 87.76 crore. The statutory auditor stated that the non-recognition of the additional Rs. 82.82 crore constitutes a departure from accounting standards prescribed under section 133 of the Act, leading to an understatement of provisions and an overstatement of contingent liabilities.

Management's Response

Management disputed the qualification, arguing that the calculations submitted to the court were provisional and subject to further adjudication regarding the applicable USD exchange rate and methodology. The company highlighted that substantial interest accrual of approximately Rs. 259.74 crore had accumulated on the deposited amount, which is available for adjustment against any final liability. Citing Ind AS 37, management asserted that no probable outflow of resources is expected for the Rs. 82.82 crore differential, rendering a separate provision unwarranted.

Financial Impact

The audit qualification affects both the standalone and consolidated financial statements for FY26. In the standalone results, the adjustment reduces the net profit and earnings per share (EPS) from 1.41 to 0.86. The consolidated net profit also sees a reduction from Rs. 387.38 crore to Rs. 304.56 crore, with EPS dropping to 2.03. Net worth figures are similarly adjusted downward in both statements.

Standalone Financial Impact (FY26)

Consolidated Financial Impact (FY26)

The statement of impact was submitted to the BSE and NSE on June 16, 2026, in compliance with SEBI regulations regarding the disclosure of audit qualifications.