MSTC Ltd

I rmly believe that digital transformation is an integral part and will continue to play a key role in the development of the organisation in the near future. Software development will be rapidly automated and ampli ed. MSTC has to be ready to seize the benefits and to ensure that we remain well placed to take the opportunity with both hands.

Shri Manobendra Ghoshal

Chairman and Managing Director

Dear Stakeholders,

It is my privilege to have joined MSTC this January, as the Chairman and Managing Director. It gives me immense pleasure to present you the Annual Report and nancial statement of your Company for the year ended 31 March, 2024.

I am proud to state that amidst an uncertain economic and demand environment, your company continued to grow and evolve the business and has delivered yet another year of good performance. During the year under review, with rapid digital transformation, India has established itself as a hub for innovation and technology services, boosting its economy and positioning it as a key player in the future of the digital economy.

We are hopeful that the growth and advancement will continue to help your company to improve its position in the coming years.

Economic and Business Environment

The Indian economy concluded the past scal year on a robust note, driven by strong business and consumer sentiments, sustained public investment, easing in ation, and a favourable external environment. However, extended geopolitical tensions and persistent high real interest rates pose risks to the growth trajectory.

B2B e-commerce emerged as a pivotal driver of economic growth, catalyzing trade activities among businesses within the country and across borders. The sector experienced robust ex-pansion, fueled by increasing internet penetration, widespread adoption of smartphones, and the government's focus on digital infrastructure development. Small and medium-sized enterprises (SMEs) particularly benefited from the proliferation of B2B e-commerce platforms, gaining access to a broader market and streamlined supply chains.

The scal year 2023-24 brought about transformative changes in India, in uencing various aspects of its development, characterized by the rapid expansion of B2B e-commerce, digitalization across sectors, and reforms in government procurements and sales. These developments underscored the country's commitment to fostering a conducive business environment, promoting technological innovation, and driving inclusive growth.

Moving forward, continued investments in digital infrastructure, regulatory reforms, and skill development initiatives will be crucial to sustain momentum and unlocking the full potential of India's digital economy.

During the year under review

Against a very dynamic business en-vironment clouded by unprecedented in ation and geopolitical tensions, our Company has delivered a solid performance. The current financial year has been a steady year for MSTC. Business volumes have remained largely similar to the previous year in the major sectors like coal. Revenue was also at lined, with revenue from scrap being adversely affected due to fall in both volumes coming up for disposal, as well as average market prices having gone down over the year. During the financial year, your company;

? Has added two more RVSFs (Registered Vehicle Scrapping

Facility) at Guwahati and Bengaluru through its JV company MMRPL (Mahindra MSTC Recycling Pvt. Ltd) promoting Steel recycling towards circular economy.

? Launched ELV auction portal for disposal of 'End-Of-Life' Vehicles for Central and State Govt. in compliance with the MoRTH's notified Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021. The services have now been extended for individual ELV owners also.

? Developed the bidding portal for auction for leasing Critical Mineral

Blocks. 6 (six) blocks of critical minerals have been auctioned successfully in FY 2023-24.

MSTC Advantage

MSTC plays a very important role as a service provider in e-commerce and is a market leader in this sector. Our strength lies in our ability to convert any business activity conducted through brick and mortar method and/or in any other method to online activity. It has the distinction of serving majority of Central/PSUs/State Govt. departments and large Private organisations for providing transparent, fair & seamless e-Commerce services to its clients. MSTC has always been availing first mover advantage in its business verticals.

Subsidiary Company

Ferro Scrap Nigam Limited is a 100% Subsidiary of the Company. During the year the subsidiary has performed very well. The Pro t after Tax of FSNL as on 31 March, 2024 was Rs. 6,492 lakhs.

Joint Venture for Shredding Plant with

MMRPL

As you are aware, our Company forayed into the recycling sector through its JV company MMRPL. At present MMRPL has presence at 40 locations throughout India through its 33 collection centres and 7 dismantling centres. During the year ended 31 March 2024, the Company earned an income of Rs. 2,981 lakhs.

Looking at consolidated nancials, it's been a reasonably good year for the group with FSNL's performance being, standing out the group revenue levels, as well as PBT showing an increase of about 4% year on year for consolidated basis.

Corporate Social Responsibility

During the financial year your company has spent around Rs.3.78 crores on CSR activities related Health sector in various parts of the country viz Assam, Sikkim, Odisha, Karnataka, Kerala, Telangana, Tamil Nadu, Madhya Pradesh, Bihar, Uttar Pradesh and West Bengal.

Operational Excellence

As you know your company is a major standalone e-Commerce Company in the country. The area includes selling agency business, e-sales of raw materials, minerals and other commo-dities, e-procurement etc. Customized e-commerce solutions have emerged as major innovative business model of MSTC. Major operational activities undertaken by the company are as follows;

? 20 Coal Mine blocks have been successfully allotted through auction for commercial mining in FY 2023-24.

? 92 Major Mineral blocks have been successfully allotted through auctions for various States in FY 2023-24.

? 10,815 Nos. of NPAs from various banks have been sold through auctions for a sale value of Rs.10,178 Crore.

Future outlook

MSTC is a nominated agency for allocation of coal blocks and all major mineral blocks in the country through its customized e-Commerce portal. It intends to tap the market for selling the mined minerals through e-auctions once the successful bidding of the blocks are operationally active.

MSTC has onboarded startups and specialised software companies to provide customised software solutions to its new and existing clients. The huge potential in this area augues well for further growth. MSTC envisages to spend funds to onboard startup for furthering its e-commerce business interests as part of R&D initiatives.

MSTC has carved a niche for itself by developing an unique EXIM portal for Oil marketing companies and in the process MSTC has developed required expertise for providing e-Retail Software solutions to the Government and private organizations particularly the MSME.

This sector holds a great opportunity and potential for MSTC in future.

Putting emphasis on the untapped e-Commerce business from the private sector, MSTC has signed big ticket agreements with Reliance Industries, Indus Tower, Tata Power, Vedanta, Jindal Power Ltd., Arcelor Mittal etc. to name a few.

MSTC is exploring possibilities for entering into more areas of recycling, as a step towards circular economy.

However, I rmly believe that digital transformation is an integral part and will continue to play a key role in the development of the organisation in the near future. Software development will be rapidly automated and ampli ed. MSTC has to be ready to seize the benefits and to ensure that we remain well placed to take the opportunity with both hands.

Opportunities

? MSTC is exploring e-auction of sand mining block in other states in line with Uttar Pradesh model.

? The successful portals for EXIM products for IOCL and ONGC has paved way for development of such portal for other OMC's both public and private.

? Circular Economy: MSTC is exploring new areas of business in recycling ector like ferrous material / Aircraft / e-Waste / Textile Recycling/ Other Hazardous Waste, etc.

? Efforts towards R&D: We have framed a Start-up policy for on- boarding start-up companies for R&D as well as utilising emerging technologies and opportunities.

? MoRTH, in September 2021, notified the Motor Vehicles

(Registration and Functions of Vehicles Scrapping Facility) Rules, 2021 for setting up of authorized vehicle scrapping centers across India with the objective to reduce pollution by scrapping End-of-Life vehicles to improve road safety, improve fuel ef ciency, reduce maintenance cost for vehicle owners, promote circular economy, formalize the currently informal vehicle scrappage industry and boost availability of low-cost raw materials, boost auto sector sales and generate employment.

Threats

? GeM Portal: reducing opportunity in exposure: With the Govt.'s directive to use the GeM Portal for purchases, the business in e-procurement of common goods and services will take a hit. The scope of work in e-procurement gets downsized, as major percentage of any company's business is spent on procurement of goods and services.

? Trading Business: As a policy matter, MSTC has decided to taper down this business due to the inherent risks involved.

? Cyber Attacks: Risks of cyber-attacks are forever a threat on account of the fast-evolving nature of the threat. In addition to impact on business operations, a security breach could result in reputational damage, penalties and legal and financial liabilities.

? Business Model: Technologies are changing the customers approach, creating new classes of customers and thus creating a challenge on organisation to keep themselves updated and continuously develop a model to suit customer need.

Investor Services

The Company's shares have been dematerialized in both the depositories, i.e. NSDL and CDSL. 31 Shareholders out of 69,500 (approx.)shareholders are holding shares in physical mode. I would like to request to the remaining shareholders to get their shares dematerialized so that the bonus shares lying in the "Unclaimed Bonus Suspense Account" can be transferred to the demat account of the respective shareholders. Further this will also

MSTC has been awarded first prize by Narakas, Kolkata for best official language implementation in corporate office category enable the shareholders to receive the dividend on time.

Corporate Governance

Your Company always strives to attain highest standards of Corporate Governance practices. The Company is complying with Government Guidelines on Corporate Governance framed by the Department of Public Enterprises (DPE) for CPSEs, and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 in letter and spirit. Your company is continuously working for the optimum benefit of its stake-holders and has thus molded its corporate conduct to fulfill these responsibilities. The Company has established systems & procedures to ensure that its Board of Directors is well informed about the policies of the Company to enable them to discharge their responsibilities and to enhance the overall value of all stakeholders. Your Company is making best efforts to adapt and comply with the changing statutes and continue to comply with the Corporate Governance guidelines/ norms to the extent within its control.

Accolades & Recognitions

MSTC has been awarded first prize by Narakas, Kolkata for best official language implementation in corporate office category and also consolation prize in magazine publishing. Overall, for the first time, MSTC Ltd. sets a record of receiving 5 Narakas Awards cumulatively.

Human Resources

Your company has always considered its human resource as the most important resource and has been conducting various employee benefit programs. MSTC fosters an environment of continuous learning and innovation and continues to invest in upskilling of its resources by providing training and learning opportunity to them. The industrial relations have remained cordial and participative all along. We have of ces in many cities in India so that we can reach out to our principals and customers easily and generate more business.

Acknowledgement

I would like to place on record my gratitude to the Hon'ble Union Minister for Steel, Hon'ble State Minster for Steel, Secretary (Steel), Additional Secretary and FA (Steel), Additional Secretary (Steel) and other of cials of the Ministry of Steel, Ministries of Power, Defence, Coal, Mining, Civil & Aviation, Petroleum & Natural Gas and other Central Government Ministries, all State Governments, various Central and State Public Sector Undertakings, private companies, bankers and our principals and others for their valuable assistance and guidance extended to the Company during the year. I also place on record the appreciation of the sincere efforts made by our directors and employees at all level. I also express my gratitude to all stakeholders, customers and suppliers for the trust and con dence reposed by them, in your Company year after year, and assure you that we shall continue to create more value for our stakeholders.