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BSE: 542597 Sector: Others
BSE 00:00 | 25 Jan 332.60 3.75






NSE 00:00 | 25 Jan 332.85 4.20






OPEN 320.00
VOLUME 49250
52-Week high 542.00
52-Week low 193.70
P/E 19.61
Mkt Cap.(Rs cr) 2,342
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 320.00
CLOSE 328.85
VOLUME 49250
52-Week high 542.00
52-Week low 193.70
P/E 19.61
Mkt Cap.(Rs cr) 2,342
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

MSTC Ltd. (MSTCLTD) - Chairman Speech

Company chairman speech

Dear Shareholders & Members of the Board

It gives me immense pleasure to present to you the Annual Report andAccounts of your Company for the year ended 31st March 2021. The financial year 2020-21was most difficult and challenging one that many of us have faced. The Covid-19 pandemichas cast a shadow of uncertainty and anxiety it has a significant impact on liveslivelihoods and the business operations. Presently safety and well-being remains ourhighest priority. During the financial year on one hand we have faced overwhelmingchallenges and hardship and on the other hand we have experienced business expansion thatwas not envisaged. We are hopeful that the growth and advancement will continue to helpyour company to improve its position in the coming years.

Economic and Business Environment

Financial year 2020-21 was a highly volatile and challenging one.Covid-19 changed almost every aspect of human lives in ways never imagined. The economictoll from the pandemic was unprecedented. Operational challenges mounted due to restrictedmovement and disrupted supply lines. As the Covid-19 cases continued to riseexponentially the economy declined sharply.

The Indian economy witnessed a sharp contraction of 23.9% in Q1: FY2020-21 and 7.5% in Q2: FY 2020-21 due to the stringent lockdown imposed duringMarch-April 2020. Since then several high frequency indicators have demonstrated aV-shaped recovery. The fundamentals of the economy remain strong as gradual scaling backof lockdowns along with the astute support of Atmanirbhar Bharat Mission have placed theeconomy firmly on the path of revival. There has been rapid recovery in India's economicactivity from the COVID-19 pandemic induced unprecedented lows of the first quarter of FY2020-21 on the back of extraordinary fiscal and monetary support provided by theGovernment and RBI.

In 2020-21 a number of significant structural reforms have beenundertaken to drive innovation technology adoption and efficiency in the IT-BPM sectorincluding Relaxation of OSP Terms & Conditions and Consumer Protection (E-commerce)Rules 2020. This would significantly expand access to talent increase job creation makeIndia a global hub for digital services and catapult the sector to the next level ofgrowth and innovation. 100% FDI is permitted in the B2B E-commerce. Continuing investmentsby telecom operators and Government of India in rolling out fiber network for 4G/5G willhelp boost E-commerce in India.

Despite depressed consumer spending economic slowdown and uncertaintycreated due to COVID-19 e-commerce players are expecting strong sales growth in 2021.Online grocery e-pharmacy and social commerce are expected to witness strong growth inCY21. Rising penetration of internet users will drive e-commerce adoption among masses.

During the year under review;

Your company has weathered the pandemic very well. The commitment anddedication of every member of the MSTC has helped the business to overcome the challengesfaced during the financial year. Considering the constraints faced during the financialyear the team has worked relentlessly to achieve significant growth at the operationallevel. During the financial year your company;

Has recorded total revenue of Rs 6391.33 millions.

Total e-Commerce business has recorded an increase of around2% during the financial year;

Profit after Tax during the financial year was Rs 1010.70millions compared to Rs 752.03 millions in the previous financial year riding mainly onthe e-commerce contribution.

MSTC Advantage

MSTC plays a very important role as a service provider in e-commerceand is a market leader in this sector. Our strength lies in our ability to convert anybusiness activity conducted through brick and mortar method and/or in any other method toonline activity. It has the distinction of serving majority of Central/PSUs/State Govt.departments and large private Institutions for providing transparent fair & seamlesse-Commerce services to its clients.

MSTC has always been availing first mover advantage in its businessverticals.

Subsidiary Company

Ferro Scrap Nigam Limited is the 100% Subsidiary of the Company. Duringthe year the subsidiary has performed well. The Profit after Tax of FSNL was Rs 227.50millions.

Joint Venture - MMRPL

As you are aware that our Company through MMRPL forayed into therecycling sector through JV has set up India's first authorised Collection &Dismantling centre at Greater Noida and later at Chennai and Pune also and intends to setup four more Collection & Dismantling centres. During the year ended 31st March 2021the JV Company earned an Income of Rs 98.77 Millions.

Corporate Social Responsibility (CSR)

Friends your continued trust encouragement and support drive us toimprove our performance. We are committed to participate in improving the livelihood ofcommunities and societies at large.

Operational Excellence

As you know your company is a major standalone e-Commerce Company inthe country. The area includes selling agency business e-sales of scrap and othercommodities e-procurement etc. Customized e-commerce solutions have emerged as majorinnovative business models of MSTC. Major operation activities undertaken by the companyare as follows;

Has successfully conducted Spectrum auction which hasfetched revenue of Rs 778150 Million for Govt. of India in the first tranche.

Has conducted online auctions for Excise DepartmentGovernment of Rajasthan for allotment of License for Liquor Shops in the State ofRajasthan.

Has provided online bidding platform for selection of Agencyto carry out Sand Operations in the State of Andhra Pradesh.

Has conducted the bidding for Commercial Coal Mine auctionin the month of November 2020.

Cotton Corporation of India has appointed MSTC as serviceprovider for e-auction of Cotton bales & Cotton Seeds. MSTC has developed the portaland successfully conducted the auctions.

MSTC has developed the web application for Department ofInvestment and Public Asset Management (Gol) for strategic sale of Public SectorEnterprises.

Future outlook

MSTC is looking at giving more value added services to existing andfuture clients in terms of logistics valuation consultancy and technology drivenassistance for decision making.

Looking ahead your company sees immense opportunities for growthriding the new technology cycle powered by the belief that its solution centric approachmakes it the preferred transformation partner within its customers.

Minerals and Mineral Blocks

MSTC is a nominated agency for allocation of coal blocks and all majormineral blocks in the country through its very customized e-Commerce portal. The minormineral blocks allocation is also happening through MSTC's e-Commerce portal in thevarious states in the country.

e-Retail Software

MSTC has carved niche for itself by developing an unique Exim portalfor Oil marketing companies and in the process MSTC has developed required expertise forproviding e-Retail Software solutions to the Government and private organizationsparticularly the MSME. This sector holds a great opportunity and potential for MSTC infuture.

Targeting private companies

MSTC is casting more focus on the untapped e-Commerce business from theprivate sector and in this stride MSTC has signed big ticket agreement with RelianceIndustries Indus Tower Tata Power L&T Jindal Group Vedanta etc. to name a few.


i) E-Commerce: MSTC has emerged as a major standalone e-commerceservice provider in the country. With its foray into new and diverse business verticalsincluding the flagship projects of the Govt. of India it has an immense potential to growmultifold in this arena.

ii) MSTC is endeavoring to harness the untapped potential in thePrivate Sector also beside trying to retain the Govt. and PSU business.

iii) Recycling Sector: MSTC through PPP model via joint venture routeis spearheading the initiatives of framing a recycling policy its pivotal role in settingup recycling plant in the automobile sector e-waste and solid based management sectorwhich is a sunrise sector.


i) GeM portal - reducing opportunity in exposure: With the Govt.'sdirective to use the GeM Portal for purchases the business in e-procurement of commongoods and services will take a hit. The scope of work in e-procurement gets a bitdownsized as major percentage of any Corporation's business is spent on procurement ofgoods and services.

ii) Trading business - As a policy matter MSTC has decided to playsafe in the traditional trading business due to the extent of risk involved.

iii) Cyber attacks - Risks of cyber-attacks are forever a threat onaccount of the fast-evolving nature of the threat. In addition to impact on businessoperations a security breach could result in reputational damage penalties and legal andfinancial liabilities.

Investor Services

The Company's shares have been dematerialized in both the depositoriesi.e. NSDL and CDSL. 59 Shareholders out of 49000 (approx.) shareholders are holdingshares in physical mode. I would like to request to the remaining shareholders to gettheir shares dematerialized so that the bonus shares lying in the "Unclaimed BonusSuspense Account" can be transferred to the demat account of the respectiveshareholders. Further this will also enable the shareholders to receive the dividend ontime.

Corporate Governance

Your Company always strives to attain highest standards of

Corporate Governance practices. The Company is complying withGovernment Guidelines on Corporate Governance framed by the Department of PublicEnterprises (DPE) for CPSEs and SEBI (Listing Obligation and Disclosure Requirement)Regulations 2015 in letter and spirit. Your company is continuously working for theoptimum benefit of its stakeholders and has thus moulded its corporate conduct to fulfillthese responsibilities. The Company has established systems & procedures to ensurethat its Board of Directors is well informed about the policies of the Company to enablethem to discharge their responsibilities and to enhance the overall value of allstakeholders. Your Company is making best efforts to adapt and comply with the changingstatutes and continue to comply with the Corporate Governance guidelines/ norms to theextent within its control.

Accolades and Recognitions:

During the year your company has received recognitions in variousspheres of its activities. A few of the significant are as follows:

1. MSTC has received the first award in corporate office category forthe best performance in the field of official language implementation.

2. Company has also received appreciation for implementation ofofficial language from the Parliamentary Official Language Committee.

Human Resources

Your company has always considered its human resource as the mostimportant resource and has been conducting various employee benefit programs. Theindustrial relations have remained cordial and participative all along. We have openedoffices in many cities in India so that we can reach out to our principals and customerseasily and generate more business. Therefore we have posted officers for expansion ofbusiness and non - executives all over the branches to cater the needs of all type ofclients.

I would like to assure you that we continue to stand with the nationduring the challenging phase of Covid-19 your company has contributed Rs 50.00 Millionsto the PMCARES fund further the employees of the Company has also contributed their oneday salary to the PMCARES Fund.

Our thought go out to the families and friends and to all those whoselife is impacted due to Covid-19. We will continue to be with our employees and their dearones in the best possible manner.


I would like to place on record my gratitude to the Hon'ble UnionMinister for Steel Hon'ble Minster of State for Steel Secretary (Steel) AdditionalSecretary and FA (Steel) Additional Secretary (Steel) and other officials of the Ministryof Steel Defence Ministry Coal Ministry Mining Ministry Civil & AviationPetroleum Natural Gas Ministry and various other Central Government Ministries all StateGovernments various Central and State Public Sector

Undertakings private companies the bankers shareholders ourprincipals and others for their valuable assistance and guidance extended to the Companyduring the year. I also place on record the appreciation of the sincere efforts made byvarious employees at all level. I also express my gratitude to all stakeholders customersand suppliers for the trust and confidence reposed by them on your Company year after yearand assure you that we shall continue to create more value for our stakeholders.

Thanking you Jai Hind! /RsY_
Place : Kolkata (Surinder Kumar Gupta)
Date : June 25 2021 Chairman and Managing Director
[DIN : 08643406]