BRIEFOVERVIEWOFMSTCLIMITED

MSTC Limited (formerly known as Metal Scrap Trade Corporation Limited) was
incorporated under the Companies Act, 1956 on 9th September, 1964. The status of
the Company underwent change in February, 1974 to that of a subsidiary of Steel
AuthorityofIndiaLimited(SAIL).Intheyear198283,theCorporationwasconverted
intoaGovernmentofIndiaCompanytransferringthesharesofSAILtothePresidentof
India. Presently, the company undertakes disposal of ferrous and nonferrous scrap
arisingsfromintegratedsteelplantsunderSAIL/RINLetc.anddisposalofscrap,surplus
stores, etc. from other Public Sector Undertakings and Government Departments
including Defence and also import of ferrous and nonferrous scrap, coke, finished
steelandpetroleumproductsincompetitionwithanyotherprivatetrader.MSTChas
atotalstrengthof316employeesason31.3.2011.

CAPITALSTRUCTURE

The Company has an authorized capital of Rs. 5 crore and paid up capital is Rs. 2.20
croreason31.3.2011ofwhichapproximately90%isheldbytheGovernmentofIndia
andbalance10%isheldbymembersofSteelFurnacesAssociationofIndia,Ironand
SteelScrapAssociationofIndiaandothers.PaidupcapitalofRs.2.20croreincludes
Bonussharesissuedintheyear199394intheratio1:1.

LOCATIONOFUNITS
The registered and corporate office of the Company is located atKolkata and it has
four Regional offices at Kolkata, Delhi, Chennai and Mumbai; three branch offices at
Visakhapatnam,BangaloreandVadodaraandthreeresidentofficesatBhopal,Trichy
andHaldia.

ACTIVITIES
TheCompanyhastwomajorspheresofactivitiesi.e.AgencyandMarketing.
(1)Agency
MSTCundertakesdisposalofferrousscrapandothersecondaryarisingsgeneratedin
theintegratedsteelplantsanddisposalofscrap,surplusstoresetc.fromotherpublic
sectorenterprisesandGovernmentDepartmentsincludingtheMinistryofDefence.It
alsostartedsaleofcoalfromCoalIndiaLimitedthrougheAuction.
DetailsofperformanceofAgencyDivisionforthelastsixyearsaregivenbelow:
(Rs.Incrore)
Year
200506
200607
200708
200809
200910
201011
Agency
3211
3495
4633
6557
6354
8168

(2)Marketing

MSTCundertakesimportofinputmaterialrequiredbylargeindustrialhousesonbackto
backbasis.Theitemsofimportincludepetroleumproducts,LAMCoke,CokingCoal,DR
Pellets, HR Coils, Melting Scrap etc. It also undertakes trading in items within the
country.Details of performance of Marketing Division for the last six years are given
below:
(Rs.Incrore)

Year
200506
200607
200708
200809
200910
201011
Marketing
4503
4178
6299
8362
6355
5933

ThetotalvolumeofbusinessinAgencyandMarketingDivisionisasunder:

Year
200506 200607 200708 200809 200910 201011
Total
7714
7673
10932
14919
12739
14101

MSTCsECOMMERCESERVICE

MSTClauncheditseAuctionserviceinJune2002.Historically,MSTChasbeen
sellingvarioustypesofscrapandotheritemsthroughthetraditionalmodesoftenders
and auctions. The disadvantages inherent with these time taking modes coupled with
the advent of information Technology in the country had made MSTC to develop and
provideinternetbasedsellingoptionstovariousorganizationsformeetingtheirselling
needs.Theideawaswellacceptedbythesellersandgraduallytheawarenessspread.
Thus,startingwithameresaleofaboutRs.20crorein200203,MSTCsesalesactivities
have grown many folds and in the year 200809 the total esales was 10900 crore.
Buoyedbythesuccessachievedinesales,MSTCintroduceditseProcurementservicein
200607. It has taken some time for the buying organization to make a change in
mindsettofavoureProcurementoverthetraditionalpurchasesystem.

Year
200506 200607 200708 200809 200910 201011
Volume of 2786
3021
5143
11120.43 6353.57 8167.75
Business
(through e
commerce)

Thefinancialperformanceofthecompanyisgivenbelow:
Items
200809
200910
201011
(i)Turnover
7082.09
4381.18
1947.31
(ii)Operatingprofit
132.09
137.66
150.70

(iii)Interest,
Depreciationand
provision
(iv)Profitbeforetax
(v)Profitaftertax
(vi)Dividend

2.56

1.67

1.30

129.53
85.05
775%

135.99
86.10
861%

149.40
99.16
100%

MOURATINGOFTHECOMPANY
200506 200607 200607 200708 200809 200910 201011
Very
Very
Excellent Very
Very
Excellent Very
Good
Good
Good
Good
Good

CompositionofBoardofDirectorsofMSTCLimited.
1
FunctionalDirectorincludingCMD

3
2
OfficialDirectors(GovernmentDirector)

2
3
NomofficialparttimeDirectors

3
4
NumberofDirectorsasprovidedunderArticle
Notmorethan15and
notlessthan3

STATUSOFBOARDOFDIRECTORSASON31.05.2012:
NameoftheCPSE :MSTCLtd.
ScheduleoftheCompany:B
Whetherlisted

:No
AdministrativeMinistry
:MinistryofSteel
NumberofSanctionedPostsofDirectors:Functional:3Official:2NonOfficial:3
DetailsofDirectorsinPosition:

S. DetailsofDirectors
Name
No. Designation
Category(Functional/
Official/NonOfficial)

Date
of
Birth

Date
of
Joining

1.

CMD

Functional

Sh.S.K.Tripathi 08.05.1956

Dateof
Superannua
tion/Tenure
ending
15.06.2009 14.06.2014

2.

Director(Finance)

Functional

Sh.A.K.Basu

28.11.1958

28.04.2010 27.04.2015

3.

Director(Commercial) Functional

Sh.B.B.Singh

11.11.1959

11.05.2010 10.05.2015

4.

JointSecretary

Official

Sh.J.P.Shukla

22.02.1954

20.10.2010

5.

EconomicAdviser

Official

Sh.SurajBhan

05.07.1958

24.04.2012

6.

NonOfficial

Sh.G.S.Chugh

30.04.1947

13.08.2009 12.08.2012

7.

NonOfficial

Sh.K.L.Mehrotra 09.10.1948

13.12.2010 12.12.2013

DetailsofVacantPostsofDirectors(ifany):NIL

NEWINITIATIVES

MSTChasdecidedtoexplorethepossibilityofsettingupashreddingplanttorecover
scrapfromcarsandotherwhitegoods.