MSTC Ltd Management Discussions

OVERVIEW OF INDIAN ECONOMY

The Indian economy in the financial year 2024-25 demonstrated notable resilience amidst a complex global landscape characterized by persistent geopolitical uncertainties and fluctuating commodity prices. Actual data indicates a robust GDP growth of approximately 6.5%, aligning closely with earlier projections. This growth was primarily fueled by sustained domestic demand, with strong contributions from urban consumption and a significant rebound in the rural sector, supported by favorable agricultural output. The services sector continued its strong performance, particularly in key areas like finance, real estate, and IT-enabled services, solidifying its role as a major growth driver. Government spending on infrastructure development and social welfare programs remained a key focus, effectively stimulating economic activity and promoting inclusive growth.

While the Indian economy showcased strong fundamentals, it navigated certain challenges too. Headline inflation witnessed a moderation, reaching around 3.6% in February 2025. However, core inflation remained sticky at 4.1%, indicating persistent underlying inflationary pressures that required continued monitoring. Certain export-oriented sectors, including petroleum products, engineering goods, and chemicals, experienced headwinds due to global demand fluctuations and geopolitical factors. Furthermore, volatility in global financial markets and instances of trade disruptions posed external risks that necessitated careful navigation.

Key Highlights and Trends Observed in FY 2024-25 :

• Continued Ascendancy of B2B E-commerce: The B2B e-commerce sector maintained its robust growth trajectory, driven by increasing internet penetration among businesses and the ongoing digital transformation of supply chains. The Indian B2B e- commerce market demonstrably moved towards the projected $200 billion mark, with increasing adoption of AI, blockchain, and data analytics for platform optimization and enhanced efficiency.

• Strong Momentum in the Digital Economy: Indias digital economy continued its strong growth, making significant strides towards the $1 trillion target by 2030. Increased adoption of cloud computing, AI, and fintech solutions across various sectors was evident.

Digital payment systems further deepened financial inclusion and facilitated economic transactions.

• Tangible Enhancement in Government Procurement Transparency: The governments sustained focus on digitalizing procurement processes through e- procurement platforms yielded significant positive outcomes in terms of enhanced transparency, improved efficiency, and a reduction in corruption risks. A growing emphasis on sustainable procurement practices was also observed.

• Increased Digitalization of Government Sales: Public Sector Enterprises (PSEs) increasingly leveraged online platforms and digital marketing strategies to expand their market reach and enhance sales volumes. E-procurement solutions streamlined transactions between government agencies and PSEs, leading to greater efficiency and transparency.

• Significant Growth in Foreign Direct Investment (FDI): Gross FDI inflows witnessed a substantial year-on- year growth of 17.9% in the first eight months of FY 2024-25, clearly indicating renewed and strengthened investor confidence in the Indian economys growth potential and stability.

• Comfortable Foreign Exchange Reserves: Indias foreign exchange reserves remained strong and stable, standing at a comfortable $640 billion at the end of December 2024. This provided a significant buffer against potential external economic vulnerabilities.

The Indian economy concluded the financial year 202425 on a strong footing, demonstrating resilience and achieving healthy growth despite a complex global environment. The underlying domestic fundamentals remained robust, supported by ongoing structural reforms and a strong push towards digitalization. Continued investments in digital infrastructure, logistics, and skill development proved crucial in sustaining this growth momentum. While global economic headwinds and persistent core inflationary pressures required careful monitoring and policy responses, the inherent strength of the Indian economy provided a solid foundation for future expansion. The increasing integration of digital technologies across various sectors, coupled with proactive government initiatives aimed at enhancing efficiency and transparency, further contributed to a conducive business environment and fostered inclusive economic development. For MSTC Limited, these observed trends presented significant

opportunities in facilitating B2B transactions, supporting government procurement and sales processes through its digital platforms, and contributing meaningfully to the overall growth and efficiency of the Indian economy.

GLOBAL SCENARIO

The global economic landscape in the financial year 2024-25 witnessed a continuation of several key trends, albeit with some notable shifts and evolving dynamics compared to the preceding year. E-commerce maintained its significant growth trajectory, while geopolitical tensions remained a persistent feature, and regional economic performances exhibited considerable divergence.

E-commerce continued its robust expansion throughout FY 2024-25. The increasing comfort and reliance of consumers on online platforms, coupled with advancements in digital infrastructure and payment systems, fueled further growth in online retail. Businesses across sectors continued to invest heavily in their digital presence, adopting omnichannel strategies and leveraging data analytics for personalized customer experiences. The integration of artificial intelligence in areas like recommendation engines and logistics further enhanced the efficiency and reach of e-commerce operations globally.

However, geopolitical tensions and international political conflicts remained a significant headwind for global economic stability during FY 2024-25. Existing conflicts in various regions persisted, and new areas of diplomatic strain emerged, impacting cross-border trade and investment. Uncertainty surrounding international relations and trade policies contributed to volatility in financial markets and continued to pose challenges to global supply chains. Businesses actively sought to mitigate these risks through diversification and the strengthening of regional supply networks.

Economic performance across Southeast Asian countries presented a varied picture throughout FY 2024-25. Some nations in the region demonstrated resilience, benefiting from increased foreign direct investment as companies sought to diversify their supply chains away from concentrated geographies. These economies often exhibited strong domestic demand and benefited from regional trade agreements. However, other Southeast Asian economies faced challenges stemming from persistent inflationary pressures, reliance on specific export markets, and the lingering effects of global economic slowdown. Policy responses to manage inflation and attract sustainable investment varied across the region, leading to differing growth outcomes.

In conclusion, the global economic scenario in the financial year 2024-25 was characterized by the sustained dynamism of e-commerce alongside the enduring impact of geopolitical complexities and divergent economic trajectories across regions. While the digital transformation of commerce continued to be a powerful growth engine, businesses and policymakers had to navigate a landscape marked by significant geopolitical uncertainties and the varied economic resilience of different parts of the world. The ability to adapt to these evolving dynamics and foster strategic collaborations proved crucial for navigating the global economic environment during this period.

COMPANYS BUSINESS

MSTC has two core business segments namely e- Commerce & Trading. 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 / State Govt. Departments, PSUs and a few leading Private Institutions in providing transparent fair & seamless e-Commerce services.

A. e-Commerce Business

MSTC continues to maintain its leadership as a standalone e-Commerce service provider PSU, offering an extensive bouquet of services including e-Bidding, Price Discovery, Procurement, customized e-Solutions, Software Development and Advisory Services. MSTC has pioneered digital commerce in diverse sectors such as Petroleum products, Agricultural produce, Forest produce, Fly-Ash, Scrips, Ferrous and Non-Ferrous Scrap, Surplus Stores, Plant and Machinery, Hazardous Waste, Coal, Iron Ore and other Minerals, alongside assets like land, buildings, apartments, and bank NPAs.

The Companys strategic focus remains on the development and deployment of integrated, paperless portals to enhance transparency and efficiency for Government and Private stakeholders. MSTC has successfully implemented or is progressing with integrations with Odisha Mining Corporation, Uttar Pradesh Mining Department, Rajasthan Mining Department, Kerala treasury, NIC Portal (for ELV and COD data transfer), various Forest Departments, and other principal organizations.

In alignment with emerging technologies, MSTC has undertaken extensive modernization of its platforms, including the rollout of PKI-based browser independence

across portals such as Major Mineral Block Auction Portal and the Common V3 Procurement Platform. Continuous module upgradation ensures that MSTC remains at the forefront of secure, seamless and scalable digital commerce solutions.

Selling Agency Business

MSTC acts as a trusted Selling Agent for a wide range of Central and State Government departments, PSUs and Private Sector Corporates for the disposal of Scrap, Surplus Stores, Obsolete Equipment, e-Waste and other Hazardous Materials. Its technology-driven, automated processes, coupled with a vast buyer base, ensures optimized price realization through healthy competition with minimal manual intervention.

Leading private sector groups including Bharti Group, GMR Group, L&T, Tata Group, Indus Towers, JSW Group, Reliance Industries, Vedanta among others, have leveraged MSTCs e-Auction platform, significantly enhancing transparency, revenue realization, and corporate governance.

MSTC is also the nodal agency for channelizing the sale of all End-of-Life Vehicles (ELVs) from Government departments to Registered Vehicle Scrapping Facilities (RVSFs), thereby supporting the Government of Indias vision of promoting a Circular Economy.

E -Sales

Since initiating e-Auctions for coal in 2004, MSTC has consistently expanded its e-Sales footprint, covering minerals such as manganese ore, lignite, chrome ore, bauxite, iron ore, fly ash, pond ash, sand, timber and forest produce, besides immovable properties from Government and Financial Institutions. MSTC remains the nominated agency for e-Auction of all major and minor mineral blocks across States/UTs in India, and continues to support asset monetization initiatives through portals like DIPAM.

E -Procurement

MSTC offers comprehensive e-Procurement solutions encompassing e-Tendering and e-Reverse Auctions, certified by STQC for stringent quality and security adherence. MSTCs flagship V3 Enterprise Procurement Solution has enhanced features like:

3 Multi-currency bidding support for Global tendering;

3 Linked events for seamless procurement workflows;

3 QCBS-based tendering (Quality and Cost-Based Selection);

3 Fully customizable modules for diverse sectoral needs.

3 Pre Bidding and Post Bidding Clarifications.

The V3 system is now accessible through all major

browsers and represents a global benchmark in ease of

use and robustness.

E -Solutions

Few of the noteworthy E-Solutions developed by MSTC

are as follows:

a. EXIM Portal for Petroleum Industry: The online bidding platform for Export & Import of petroleum products was developed & delivered to IOCL. The EXIM portal is fully operational and IOCL is reaping the benefits after transforming its Import & Export activities to online mode. This is a path breaking portal for all the players in petroleum sector in India and abroad. For ONGC, Mangalore Refinery and Petrochemicals Limited also a separate portal was developed.

b. Online Draw System for selection of LPG & Petrol Pumps Dealership: Online Draw System is the process to select the applicants out of the eligible applicants, in secured and transparent manner, without any human intervention. In the current system, online applications are requested from the interested candidate and then from these candidates, eligible candidates are allowed to take part in the draw. This software is used in events to conduct online draws and display the names of the winners on the screen. The system is easy to use and ready for more complex draws. The application is developed with random number generation algorithm for conducting on-line computerized draw of lots (Online Computerized Draw System) by selecting only one eligible candidate at each time out of the total eligible applicants. Shuffling will occur for the names of the applicants along with their details in random order at the press of a button. Visualization of the shuffling process for display on the screen is there.

c. MSTC was appointed as the transaction advisor cum software developer and operator for condition of s p e c t r u m a u c t i o n b y D e p a r t m e n t o f Telecommunication (GoI). The developed application was used for conduction of Simultaneous Multi Round Auctions for sale of frequencies under various bands like 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz etc.

d. Coal Mine auctions: MSTC has developed and is operating the portal for Ministry of Coal (GoI), to auction Coal Mine for sale of coal (commercial mining) as per the Mines and Minerals (Development and Regulation) Act 1957 as well as other related Acts.

The e-bidding process comprises of two stages- (a) Technical cum IPO and (b) forward auction.

e. MSTC had developed an application software for IOCL wherein Tender cum auctions/ independent auction can be floated for finalization of Transporters for bulk POL (Petroleum Oil Lubricant). The application software has various sophisticated mechanism like auto evaluation and determination of provisional allotments based on pre fixed rules, maintaining optimum allotment to reserved categories etc.

f. Director General of Hydrocarbons has empanelled MSTC as one of the service provider for conduction of e-bidding events by gas exploration and selling agencies. Currently Hindustan Oil Exploration Company limited has committed to use MSTCs services for conducting their e-bidding events.

g. DIPAM Asset Monetization: As per the renewed directives from GOI, DIPAM shall be monetizing the assets of various CPSE. For the same, MSTC has been appointed as the Auction service provider. A dedicated portal has already been developed and DIPAM has utilized the portal for monetization of the assets of BSNL.

h. Transmission Service Provider (Interstate/ Intrastate TBCB): Ministry of Power, Govt. of India notified "Tariff Based Competitive Bidding Guidelines for Transmission Service" and "Guidelines for Encouraging Competition in Development of Transmission Projects" (Guidelines). In line with provisions of the guidelines, Bid Process Coordinator like RECTPCL and PFCL are conducting events, using the services of MSTC for Interstate Transmission system (ISTS) projects. This also includes solar power and wind power projects.

i. Critical Minerals, Mining Leases and Exportation leases: in its bouquet of MLCL e-Bidding events, based on the latest guidelines issued by GOI, MSTC has upgraded its e-Solution for MLCL to include e-Bidding for Critical minerals and Exploration Licenses.

j. A specially designed and customized procurement portal has been developed for establishment of FGD (Flue-gas desulfurization) plant and other projects of Corporate Contracts Unit of NTPC at its various Sewage Treatment Plants. The procurement process shall be through tender followed by Reverse Auction and the bidding shall be in multicurrency.

k. DEEP portals for procurement of electricity by Distribution Companies including Standard DEEP portal (for Short/Medium/Long term procurement of Power), Aggregated Thermal Power, Long Term Solar

power, Flexible Coal Scheme, Power Procurement from ICB Plants during Crunch Period(s).

l. Jaivik kheti portal is a unique initiative of Ministry of Agriculture (MoA), Department of Agriculture (DAC) along with MSTC to promote organic farming globally. It is a one stop solution for facilitating organic farmers to sell their organic produce and promoting organic farming and its benefits.

m. MSTC has developed Swiss challenge based subsidy allocation e-Bidding portal under Regional Connectivity Scheme (UDAN) and e-Bidding portal for sale of Duty Scrips issued by DGFT under service exports from India Scheme used for payment of import duties.

n. MSTC has been nominated for Channelising the sale of all ELVs of all Govt. departments, both Central and State, ensuring compliance of all provisions under the ELV Policy. MSTC has also enabled the portal for sale by individuals and institutional seller in Private sector adhering to all policy guidelines.

o. MSTC has signed agreement with various State governments for sale of minor mineral blocks.

p. Customised portal was developed for Chattisgarh Forest department for sale of timber.

q. FM radio waves frequency auction portal was developed for Ministry of Information & Broadcasting.

e-Commerce business constitutes about 99.80% (99.86% in 2023-24) of the total volume of business of the Company and contributed around 94.48% (93.95% in 2023-24) to the revenue from operations during FY 2024-25, reflecting its continued centrality to the Companys operations.

B. Trading Business

In trading business, which constituted 0.20% of the total volume of business during FY 2024-25 (0.14% in 2023-24), MSTC acts as a facilitator for procurement of raw material on behalf of buyers and charge mark-up on percentage basis against a bank guarantee as security.

This business contributed 5.52% of the total revenue from operations of the Company during FY 2024-25 (6.05% in 2023-24).

This division is currently engaged in the business for procurement of industrial raw materials, projects equipment etc. against Bank Guarantee (BG) to the tune of 110% from the Customer. Customers who have sanctioned BG limits and can use the same to procure raw materials / commodities for their projects or for trading. In this model, MOU is signed with the Customer

after following the laid down process. Procurement is done on behalf of the Customers backed by 110% BG opened on any Scheduled Commercial Bank.

The trading business achieved a volume of 17,700 lakhs out of the total volume of business of 89,82,360 lakhs during FY 2024-25 (as against 19,907 Lakhs out of the total volume of business of 1,41,58,657 Lakhs in FY 202324)

This business contributed 185 Lakhs of the total operational income of the Company during FY 2024-25 (204 Lakhs in 2023-24).

Apart from the above this division earned Service Charges of 214 lakhs from the E-Tender of selection of Agency for Andhra Pradesh sand mining during the FY 2024-25.

C. Recycling

MSTC had entered into a JV Agreement with m/s Mahindra Accelo Ltd. and formed a Joint Venture Company "Mahindra MSTC Recycling Pvt. Ltd." MSTC through this JV, had set up Indias first authorised Collection and Dismantling centre at Greater Noida in 2018. At present MMRPL has 6 operational Registered Vehicle Scrapping Centre/ Registered Vehicle Scrapping Facility (RVSF) in Greater Noida, Chennai, Indore. Ahmedabad, Guwahati and Bengaluru respectively. Apart from RVSF plants, MMRPL has setup 34 collection centres throughout India.

MMRPL has tied up with M&M Ltd., Renault India and Daimler as a partners for procuring scrap vehicles Pan India. MMRPL is also in discussion with other OEMs for tie-up.

FUTURE OUTLOOK

MSTC continues to chart an ambitious growth trajectory, leveraging its core strengths in digital commerce, resource auctioning, and strategic platform development. The Companys future strategy is firmly anchored in key national priorities — digital transformation, sustainability, innovation, and circular economy promotion.

1. Expansion in Mineral and Resource Auctions

MSTC remains the nominated agency for allocation of coal blocks and mineral blocks across India. With successful operationalization of auctioned mines underway, MSTC aims to extend its role into post-auction sales and trading services. The Company has also successfully introduced e-Auction modules for Critical Mineral Blocks and Exploration Licenses, aligning with Indias strategic resource security plans.

2. Launch of Upkaran Portal

MSTC is planning to launch "Upkaran" — a dedicated, national platform for equipment listing, leasing, and services. Upkaran will create a self-sustaining ecosystem connecting manufacturers, dealers, users, and repair networks, initially focusing on construction, mining, and industrial equipment sectors. Expansion into transactional leasing, financing facilitation, and aftersales support is envisaged in subsequent phases.

3. Private Sector Expansion

MSTC is focusing on private sector business, having onboarded major clients like Reliance Industries, Vedanta, Tata Power, Indus Towers, and Jindal Power Ltd. The Company is also offering bespoke solutions for EPC contractors, logistics providers, and financial institutions, expanding its service footprint beyond traditional Government clientele.

4. Growth in Circular Economy and Recycling

MSTC is strategically positioning itself in emerging recycling verticals including ferrous material, End-of-Life Vehicles (ELVs), aircraft dismantling, e-waste and textile recycling. These initiatives are aligned with Indias sustainability goals and offer significant long-term revenue potential.

5. Software Development and Management

MSTCs proven track record in developing and managing customized digital portals positions it strongly to seize future opportunities in the software development domain. Building on its success with platforms like the Coal Auction Portal, ELV Portal, Spectrum, Mineral Auction systems, OMC drawn portal, EXIM portal, DEEP Portal etc. and recent initiatives such as the Ministry of Steel website and the SRTMI portal, MSTC is well-equipped to expand its offerings. These experiences demonstrate its ability to deliver secure, scalable, and user-centric solutions, making it a reliable partner for government bodies and industries seeking digital transformation. Going forward, MSTC can leverage this expertise to provide end-to-end portal development and management services across a wider range of sectors, enabling innovation, transparency, and operational efficiency.

6. Extended Producer Responsibility Electronic Trading Platform

MSTC has submitted its proposal in response to the Expression of Interest (EOI) issued by the Central Pollution Control Board (CPCB) for the development and operation of an Electronic Trading Platform (ETP) for trading of Extended Producer Responsibility (EPR) certificates. Envisioning the creation of a robust,

transparent, and scalable Extended Producer Responsibility Electronic Trading Platform (EPRETP), under the regulatory framework of Central Pollution Control Board.

7. Strategic Asset Disposal and Rare Earth Recovery for MOD

MSTC aims to play a key role in the secure disposal and reclamation of strategic assets for the Ministry of Defence, with a focus on rare earth recovery, traceability, and strict disposal protocols.

SOME OF THE MAJOR OPPORTUNITIES MSTC IS PURSUING :

3 Scaling up mineral and critical mineral block auctions across States.

3 Expansion of Upkaran portal into transactional leasing and national-level equipment marketplaces.

3 Enabling digital contracting ecosystems through the Smart Contract Portal.

3 Deployment of sector-specific ERP solutions for mining and steel industries.

3 Expansion into new recycling verticals aligned with national sustainability goals.

3 Aggressive entry into private sector digital commerce markets.

3 Collaboration with technology startups for cocreation of future-ready solutions.

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 revenue of MSTC.

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 OMCs both public and private.

DISCUSSION ON FINANCIAL PARAMETERS WITH RESPECT TO OPERATIONS AND PERFORMANCE Performance A) Agency Business

This year the total volume of Agency Business stands at 61,97,924 Lakhs, against 88,70,733 Lakhs in 2023-24. Break-up for the year 2024-25 vis-a-vis 2023-24 is as follows:

Business Segment	Volume of Business ( in Lakhs)
	2024-25	2023-24
Scrap Disposal	6,43,681	6,52,251
e-Sale	27,75,857	52,56,201
Coal e-Auction	3,94,102	11,14,661
Iron ore e-Auction	23,84,284	18,47,620
Total (A) :	61,97,924	88,70,733

B) E- Procurement

Business Segment	Volume of Business ( in Lakhs)
	2024-25	2023-24
e-Procurement	27,66,736	52,68,017
Total (A) :	27,66,736	52,68,017
Total (A+B) :	89,64,660	1,41,38,750

C) Trading

The performance of the Trading Division shows a total volume of business of 17,700 Lakhs, against 19,907 Lakhs in 2023-24. Break-up for the year 2024-25 vis-a-vis 2023-24 is as follows:

Business Segment	Volume of Business ( in Lakhs)
	2024-25	2023-24
Indigenous materials	17,700	19,907
Total (C) :	17,700	19,907
Total (A+B+C) :	89,82,360	1,41,58,657

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/ INDUSTRIAL RELATIONS FRONT, INCUDING NUMBER OF PEOPLE EMPLOYED

The details regarding material developments in human resources/ industrial relations front including number of people employed is given under Human Resource Development section of Boards Report.

RISKS AND CONCERNS

MSTC is in the process of adopting a structured and integrated Enterprise Risk Management (ERM) framework to proactively identify, assess, respond to, and monitor risks impacting the Companys strategic, operational, financial, technological, and regulatory objectives.

During the year, MSTC has drafted an updated Risk Management Policy and Standard Operating Procedures (SOPs), aligned with the latest SEBI (LODR) Regulations, 2021.

Once approved, a three-tier governance structure will be established, comprising:

W Board of Directors and Risk Management Committee (RMC) for overall oversight,

W Risk Management Steering Committee (RMSC) for operational supervision,

W Risk Owners and Risk Response Owners for day-to-day functional risk management.

Risks are proposed to be classified based on their origin into Internal and External categories and grouped under Financial, Operational, Strategic, Reputational, Regulatory, Cyber/Information Security, Extended Enterprise, Sectoral, and Sustainability domains.

Through structured consultations with Risk Owners, key enterprise-level and functional-level risks have been identified and appropriate mitigation strategies and Key Risk Indicators (KRIs) have been formulated.

Sl. No.	Risk Theme	Risk Description
1	Competition Risk	Shifts in market dynamics and intensive competition from public and private sector participants may adversely impact business growth.
2	IP Infringement Risk	Intellectual Property (ip) Infringement, i.e. unauthorized use of Third-Party IP by MSTC and MSTCs IP by external entities may lead to litigation, impact brand & reputation and disrupt business operations for both MSTC and third-party IP owners
3	Litigation Risk	Adverse outcomes of ongoing litigations, along with challenges such as documentation issues or unavailable witnesses, may result in significant financial or reputational impact.
4	Regulatory risk	Non-adherence to the regulatory requirements, labor laws, bribery rules or financial regulations may lead to potential fines, penalties and reputational loss
5	Data Loss Risk	Loss of confidential/sensitive data may lead to penalties, financial loss and reputational damage
6	Cybersecurity Risk	Cyber Attacks (malware, phishing, ransomware), security breaches and disruption in IT systems Network Failure, Hardware and Application failures may lead to operational disruption, financial loss, and reputational damage
7	Succession Risk	Inadequate succession planning may lead to operational instability.
8	Process Obsolescence Risk	Lack of business process updates based on client feedback and changing customer needs may lead to obsolescence.
9	Brand-building Risk	Limited brand-building efforts or negative media coverage may reduce visibility, hinder growth and eventually result in a potential loss of revenue or prospective customers.
10	Cash Flow Risk	Delayed customer payments may disrupt cash flow, negatively impact liquidity and profitability.
11	Technological Obsolescence Risk	Inadequate technological upgradation may lead to missed opportunities and loss of competitive edge.
12	Project Delivery Risk	Delayed project delivery or unforeseen enhancements in project scope may result in reputational harm or revenue loss.

MSTCs Risk Management Framework, upon final adoption, will ensure proactive identification of emerging risks, effective mitigation, and robust internal control systems, supporting the Companys strategic objectives and sustainable growth.

Risks, Internal Control Systems and their adequacy

Risk Management Policy in MSTC for trading was

introduced in the year 2008-09. The policy has been last revised on 5^th April, 2018. MSTC makes it certain that the internal control system functions within the risk appetite of the Company. The company has now discontinued the higher risk models of business in trading.

M/s. S. Poddar & Co. (FRN: 320294E), Chartered Accountants were assigned with the Internal Audit function of the Company for the year and their reports

are put up to the management at regular intervals and summarized statement of important issues are placed before the Audit Committee. The Audit Committee analyses the functions of the internal control system and recommendations of the committee are put up to the Board and those are implemented as per the considerations of the Board. Audit Committee also considers various financial statements for risk analysis and control.

MSTC works primarily in the field of sale of scrap materials, especially ferrous scraps from different sellers and trading of those scraps for recycling. Thus, MSTC works for the conservation of the natural resources, reduction in pollutants, conservation of energy by recycling ferrous scraps into a re-useable form. MSTC contributes towards recycling by facilitating easy scrap availability through common portal.

KEY FINANCIAL RATIOS

Key Ratios	FY 2024-25	FY 2023-24	Change in %	Reason for Difference/Remarks
Debtor Turnover Ratio	0.99	0.97	2.09	Debtor Turnover Ratio increased due to reduction in Debtors on account of better realization.
Inventory Turnover	-	-	-	NA
Interest Coverage Ratio	-	-	-	NA
Current Ratio	1.28	1.22	4.52	The current Ratio has improved due to continuous cash profit earned by the Company.
Debt Equity Ratio	-	-	-	NA
Operating Profit Margin (%)	83.86	92.39	-9.23	The ratio has decreased due to non-receipt of Dividend income from the wholly owned subsidiary.
Net profit Margin (%)	129.59	54.36	138.40	Net Profit Ratio has increased on account of the increase in Net Profit after Tax due to profit on sale of wholly owned subsidiary.
Return on net Worth (%)	53.60	25.87	107.21	Return on Net Worth ratio has increased on account of the increase in Net Profit after Tax due to profit on sale of wholly owned subsidiary.

Statements under "Management Discussion and Analysis" are on Companys projections and estimates. Actual results may materially differ from such projections and depends on economic condition and industry demand in the relevant domestic and international market. Government regulations including fiscal regulations and other incidental factors may also affect the projections and estimates.