CMD, MSTC Limited Speech in 53rd Annual General Meeting at Kolkata
Ladies and Gentlemen,
I
heartily welcome you all to this 53rd Annual General Meeting of the
Company. I am privileged to share my thoughts with you through this forum. Since, the requisite quorum is present I
hereby declare the meeting as open.
Necessary
documents/ register in compliance with the provisions of the Companies Act,
2013 are lying open at the meeting venue and shall remain open and accessible
during the continuance of the meeting.
The
Annual Financial Statement and the Board’s Report have been sent along with the
notice of the meeting and presume you have spared some part of your valued time
to read.
Performance
Highlights
Though
the physical performance in terms value was encouraging,the revenue generated
was not proportionate due to various reasons. One of the reasons was pressure
for reduction of service charges by our clients.In spite of the same the
Company ended the financial year with PBT of Rs. 111.59 Crore compared to Rs. 96.61
Crore during the previous year.
MSTC Advantage
MSTC
plays a very important role as a service provider in e-commerce and is a market
leader in this sector. It has the distinction of serving majority of
Central/PSUs/State Govt. Department and Private Institutions for providing
transparent, fair & seamless e-Commerce services to its clients.
Joint Venture
for Shredding Plant
During
the year MSTC has formed a Joint Venture Company “Mahindra MSTC Recycling Pvt.
Ltd.” with Mahindra Intertrade Ltd., to set up the first Auto Shredding Plant
in India for which input raw materials like condemned automobiles, white goods,
etc. are required. A collection and dismantling centre with state-of-the-art
technology has been set up in Greater Noida as a supply feedstock for the main
Auto shredding plant. Foundation work for the shearer cum baler in the plant is
completed.Hydraulic Scissor will also be ready.
CSR
Friends,
your continued trust, encouragement and support drive us to improve our
performance. We are committed to participate in improving the livelihood of
communities and societies at large. We take up various kinds of social
development projects, mostly in rural areas. Your company has given special
thrust in health care, cleanliness, and primary education and in future
continued to work for the upliftment of society at large.
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 scrap and other
commodities, e-procurement etc. Customized e-commerce solutions have emerged as
major innovative business models of MSTC. Here we have developed Exim Portal
for Petroleum Industry, Online Draw System for selection of LPG dealership,
e-Rakam (e-RashtriyaKishanAgriMandi) Portal etc. to name a few.
E-auction
of sand Mining blocks in UP and exim-products of IOCL have been the signature
events in the recent past.
In
trading business, which comprise of import and import financing through BG
backed model contributed to 35% of the total operational income. MSTC also
supplied imported coal worth Rs. 272 Crore to power generating companies.The
trading business has contributed 35% of the total operational income of the
Company.
Ladies
& Gentlemen, we all know that North East Region is rich in forest wealth
constituting 22.21 percent of total forest area in the country. Agro Climatic
condition favors growth of niche variety of fruits, vegetables, timber, spices
and other products.In line with the “Look East” and “Act East” policies of the
Government of India, MSTC has taken many steps with a view to benefit the
farmers which will subsequently benefit the entire North East Region. MSTC and
other stakeholders including NABARD, NERAMAC, CRWC, FPOs, etc. are working
together for overall development of the Agri-horti Eco-System in the North East
Region. I am delighted to inform you that MSTC plans to enter into umbrella
agreement with the State Government of the North East states for providing
complete e-commerce solutions with a focus on Agri-horti products.
The
recent initiative of the Government for sale of mineral blocks, both major and
minor, through e-auction has also opened window of opportunity for MSTC and it
has signed agreement with most of the State Governments which may yield
positive results to the exchequer of states and fetch revenue to MSTC.
MSTC
has signed an agreement with NAFED to sell the food grain lying with various
godowns in the country through e-auction. Procurement of the same is also
within the ambit of agreement through e-reverse auction. This offers a huge
opportunity for MSTC for e-Commerce business.
E-procurement
is another potential area in which MSTC is making a rapid stride to grab the
business. MSTC has introduced multi browser facility to make much deeper dent
in the e-procurement domain of business.
Economic and
Business Environment
Dear Friends,
MSTC’s business is having the following opportunities and threats:
Opportunities
i)
E-Commerce: MSTC has emerged as a major standalone
e-commerce service provider in the country. With its foray into new and diverse
business verticals including the flagship projects of the Govt. of India, it
has an immense potential to grow multifold in this arena.
ii)
Recycling
Sector: MSTC is spearheading the initiatives of
framing a recycling policy, its pivotal
role in setting up recycling plant in
the automobile sector and e-waste throws open many opportunities for MSTC to be
the front runner holding the torch for growth.
iii)
Foreign
footprints
– Exim of petroleum products: MSTC has added one more feather to its cap by
developing an exclusive portal for the import and export tenders for OMCs for
its petroleum products digitizing the entire process with its complexities. The portals services are to be extended to its
overseas Joint Venture units empowering MSTC to make its footprints overseas in
the days to come.
iv)
Listing - MSTC is slated to be listed in this fiscal year which will increase
its visibility and thereby its business.
Threats
i)
GeM portal – reducing
opportunity in exposure:
With
the Govt.’s directive to use the GeM Portal for purchases, the business in e-procurement
of goods will take a hit. The scope of work in e-procurement gets a bit downsized,
as a major percentage of any Corporation’s business is spent on procurement of
goods.
ii)
Trading
business:
As a policy matter, MSTC has decided to go safe in the traditional trading
business due to the extent of risk involved. Though it is making efforts to
resurrect the same, the slowness of the economic growth and the exponential
increase in NPAs etc has destabilized the credit system and it poses a
difficult scenario.
Investor
Services
I
am glad to inform you that this year, with continuous follow up, we have
collected the bank accounts of shareholders and for the first time, dividend
shall be credited to bank accounts. Out of 544 shareholders, around 400 have
given bank details and we will issue dividend to their Bank Accounts, for the
rest, we will issue dividend warrants.
The
Company’s shares have been dematerialised in both the depositories, i.e., NSDL
and CDSL.335 shareholders out of 544are holding shares in demat mode. I would
like to request all the shareholders to get their shares dematerialized.
Shareholders are also requested to update their bank account with the company
so that dividend can be transferred to their account directly. We do not have
any record of a single shareholder grievance in the last decade.
As
mentioned earlier, the Government of India has decided to disinvest around 25%
of their holding in the Company through IPO.The Lead Manager & Legal
advisors havealready been appointed. We
hope to enhance the shareholders value in the coming years too.
Corporate
Governance
Your
Company is an ethical and properly governed company. All actions are
transparent and taken with reasons and keeping in view the interest of the
stakeholders. We follow all guidelines of the Government and also the law. We
have been rated as “excellent” in the CG rating done by DPE every year. We have
not received any notice of non-compliance from any authority in last 10 years.
Your
Board has nine Directors, comprising of two Govt. nominee and four independent
directors, which makes the Board decision making process more analytical,
reasonable and logical.
Human
Resources
Your
company is pro-employee company and has bagged award for “great place to work”.
The industrial relations have remained cordial and participative all along. We
have opened offices in many cities in India so that we can reach out to our
principals and customers easily and generate more business. Therefore we have
recruited officers for expansion of business.
I
can assure you, on behalf of the management that with prudent
and experienced Board members, an efficient and loyal manpower and sound
financial resources, we are managing the affairs in the most reasonable way
keeping in view the interest of the stakeholders.
Acknowledgement
I
would like to place on record my gratitude to the Hon’ble Union Minister for
Steel, Secretary (Steel), Additional Secretary and FA (Steel), and other
officials of the Ministry of Steel, Defence Ministry, Coal Ministry, Mining
Ministry, Civil & Aviation, Petroleum, Natural Gas Ministry and various
other Central Government Ministries, all State Governments, various Central and
State Public Sector Undertakings, private companies, the bankers, our principals
and others for their valuable assistance and guidance extended to the Company
during the year. I also express my gratitude to all stakeholders, customers and
suppliers for the trust and confidence reposed by them on your Company year
after year and assure you that we shall continue to create more value for our
stakeholders.
Best wishes
for Durga Puja and Diwali.
Thanking you,
Jai Hind!
Kolkata B. B. Singh
26thSeptember,
2018 Chairman-cum-Managing
Director
