“Certain acts of commission and omission” wiped out Rs 113.46 crore worth of profit from the books of MMTC Ltd in 2011-12. The company said it “had to make an ad hoc provision of Rs 113.46 crore in Q3 pending completion of internal investigation/ special audit on account of certain acts of commission and omission pertaining to recoverables from debtors towards earlier years.”
As a result of this ad hoc provision, MMTC’s net profit slipped to Rs 23.48 crore from a profit after tax of Rs 136.94 crore from ordinary activities during the year. In 2010-11 it had reported a net profit of Rs 121.64 crore. The State-owned company’s networth, however, rose to about Rs 1,403 crore in the absence of any long-term debt.