MSTC/CS/SE/172 03rd September, 2020 1. The Dy.Manager (Listing) 2. The Manager, Listing Department BSE Limited National Stock Exchange of India Limited PhirozeJeejeebhoy Towers, Exchange Plaza, BandraKurla Complex Dalal Street, Mumbai 400 023. Bandra (E), Mumbai 400 051 (Scrip Code: 542597) (Scrip Code: MSTCLTD) Dear Sir/Madam, Sub: Annual Report 2019-20 of MSTC Limited 1. This is to inform that the 55th Annual General Meeting ('AGM') of the Company will be held on Friday, 25th September, 2020 at 11:00 hours through Video Conferencing ("VC") /Other Audio-Visual Means ("OAVM") to transact the business as set out in the AGM Notice dated 18th July, 2020, in accordance with the relevant circulars issued by Ministry of Corporate Affairs and Securities and Exchange Board of India. The deemed venue for the 55th AGM shall be the Registered Office of the Company at 225C, A.J.C Bose Road, Kolkata -700020. The copy of the 55th Notice of AGM is enclosed herewith. 2. Pursuant to Regulation 34(1) of SEBI (Listing Obligations and Disclosure Requirements)Regulations, 2015 ("SEBI Listing Regulations"), we are submitting herewith the Annual Report of the Company along with the Notice of AGM for the financial year 2019-20 which has already been sent through electronic mode to the Members. 3. The Annual Report 2019-20 and the Notice of the 55th AGM is also uploaded on the Company's website at www.mstcindia.co.in 5. This is for your information and record Thanking you, Yours faithfully, For MSTC Limited Digitally signed by AJAY AJAY KUMAR RAI KUMAR RAI Date: 2020.09.03 19:13:09 +05'30' (Ajay Kumar Rai) Company Secretary & Compliance Officer 1 th 55Annual Report Contents Board of Directors 2 Management Team 3 Vision, Mission and Objectives 4 MSTC at Present 5 Chairman’s Statement 6 Management Discussion and Analysis 13 Board’s Report 21 Corporate Governance Report 33 Business Responsibility Report 52 Extract of Annual Return (MGT-9) 59 Annual Report on CSR 66 Secretarial Audit Report 67 Standalone Report a) Auditors’ Report 72 b) CAG Report 82 c) Balance Sheet 83 d) Statement of Profit & Loss 84 e) Statement of Changes in Equity 85 f) Statement of Cash Flow 86 g) Notes on Financial Statements 87 Consolidated Report a) Auditors’ Report 119 b) CAG Report 128 c) Balance Sheet 129 d) Statement of Profit & Loss 130 e) Statement of Changes in Equity 131 f) Statement of Cash Flow 132 g) Notes on Financial Statements 133 1 1 1 PÎF¼WèF=+ ÛFk°áF Board of Directors êFU ÙFU. ÙFU. PõFkù êFU õF]ÞWk½ =]+ÛFFÞ ;F]ѶFF EÍÜF‡ F õFù ÒÙFkÍF PÎF¼WèF=+ EÍÜF‡ F õFù ÒÙFkÍF PÎF¼WèF=+ Shri B. B. Singh Shri Surinder Kumar Gupta Chairman & Managing Director Chairman & Managing Director [Upto 30.11.2019] [w.e.f. 17.12.2019] êFUÛF¶FU ÚFFÎF] =]+ÛFFÞ êFU õF]ÙFe¶F õFÞ=+FÞ PÎF¼WèF=+ (æFFPµFP¡ÜF=+) PÎF¼WèF=+ (PæF¸F) JæFk õFUJ×+EX Mrs. Bhanu Kumar Shri Subrata Sarkar Director (Commercial) Director (Finance) and CFO êFUÛF¶FU ßP˜ F=+F ˜ FZÍFÞU ;FXPæFáF °F g ÒÛFXP¼¶FF õF¶FUèF õFÞ=+FÞU ÎFFÛFFkP=+¶F PÎF¼WèF=+ õFÞ=+FÞU ÎFFÛFFkP=+¶F PÎF¼WèF=+ Mrs. Ruchika Dr. Promodita Sathish Govt. Nominee Director Chaudhry Govil [Upto 02.07.2020] Govt. Nominee Director °Fg. © U.æFU. êFU ¡FU.EFÞ. EáFXPÞÜFF ÛF]ÞáFUæFááFÚFÎF õæF¶Fk·F PÎF¼WèF=+ õæF¶Fk·F PÎF¼WèF=+ Shri G. R. Aloria Dr. T. V. Independent Director Muralivallabhan Independent Director êFUÛF¶FU EÑFµFFa ˜ F¶F]æFWa¼U °Fg. EFÞ. JõF. ÜFWáFU õæF¶Fk·F PÎF¼WèF=+ õæF¶Fk·F PÎF¼WèF=+ Mrs. Aparna Chaturvedi Dr. R. S. Yeli Independent Director Independent Director EæFÍFWèF =]+ÛFFÞ ˜ FZÍFÞU õFÞ=+FÞU ÎFFÛFFkP=+¶F PÎF¼WèF=+ Awadhesh Kumar Choudhary Govt. Nominee Director [w.e.f. 02.07.2020] 12 1 ÒÙFkÍFÎF ¼áF / Management Team êFU õF]ÞWèF ÛFFÍFæFÎF êFU EFÞ. =W+ ˜ FZÍF]ÞU êFU õFU.EFÞ. P;FPÞ ÛF]&ÜF õF¶F=a+¶FF EPÍF=+FÞU ÛF]&ÜF ÛFùFÒÙFkÍF=+ (PæF æF áFW) ÛFùFÒÙFkÍF=+ (PõFõ© ÛõF) Shri Suresh Madhavan Shri R.K. Chaudhuri Shri C. R. Giri Chief Vigilance Officer CGM (F&A) GM (Systems) [Upto 30.06.2019] êFU EàÑF ÙFYÎF¡FUa êFUÛF¶FU æFU. æFõFζFU ÛFùFÒÙFkÍF=+ (PæFPÍF) êFU JÛF. ÑFU êFUæFFõ¶FæF ÛFùFÒÙFkÍF=+ (EÍÜF‡ F JæFk Shri Arup Banerjee ÛFùFÒÙFkÍF=+ (õFUõFU) ÒÙFkÍF PÎF¼WèF=+ =W+ GM (Legal) ¶F=+ÎFU=+U õFP˜ FæF) [w..e.f 19.03.2020] Shri M. P. Shrivastava GM (CC) Smt. V. Vasanti [Upto 30.06.2019] GM (TS to CMD) êFU ÙFU. ÛF¡F]ÛF¼FÞ êFU E¡FÜF =]+ÛFFÞ ÞFÜF ÛFùFÒÙFkÍF=+ (PæFÑFµFÎF JæFk õFUõFU) =k+ÑFÎFU õFP˜ FæF JæFk Shri B. Majumdar EÎF]ÑFFáFÎF EPÍF=+FÞU GM (Marketing & CC) Shri Ajay Kumar Rai [w..e.f 19.03.2020] Company Secretary and Compliance Officer =+FgÑFXaÞW© ÑFù˜ FFÎF õFk&ÜFF áFW&FF ÑFÞU‡ F=+ Auditors Corporate Indentification No. JõF. fFXðF Jµ° =k+. JáFJáFÑFU S. Ghose & Co. LLP L27320WB1964GOI026211 õFÎF¼U áFW&FFÑFFáF Chartered Accountants ÙFYk=+õFa Bankers õFP˜ FæFFáFÜF áFW&FF ÑFÞU‡ F=+ ÙFYk=+ EFg×+ ÙF°sZ¼F Bank of Baroda õFZÛÜF ¡ÜFXP¶F õFUáF, EÚÜFFõFÞ¶F =k+ÑFÎFU õFP˜ FæF ÙFYk=+ EFg×+ GkP°ÜFF Bank of India Secretarial Auditors GáFFùFÙFF¼ ÙFYk=+ Allababad Bank Saumayo Jyoti Seal, Practising Company Secretary GkP°ÜFÎF ÙFYk=+ Indian Bank Gµ°õF Gk° ÙFYk=+ Indus Ind Bank ÑFk¡FU=_+¶F JæFk ÒÍFFÎF =+FÜFFaáFÜF ÑFk¡FFÙF ÎFYèFÎFáF ÙFYk=+ Punjab National Bank 225-õFU, EF˜ FFÜFa ¡F;F¼UèF ˜ Fk½ ÙFXõF ÞX° ÚFFÞ¶FUÜF õ© W© ÙFYk=+ State Bank of India =+XáF=+F¶FF -700 020 ÜF[PÎFÜFÎF ÙFYk=+ EFg×+ GkP°ÜFF Union Bank of India ¼[ÞÚFFðF : (+91 33) 2290 0964, 22877557/0568/9627 ÜF[ÎFFG© W° ÙFYk=+ EFg×+ GkP°ÜFF United Bank of India ×Y+ƒ õF : (+91 33) 2287 8547, 2240 4176 õFWk© dFáF ÙFYk=+ EFg×+ GkP°ÜFF Central Bank of India Ga-ÛFWáF : [email protected] Registrar and Transfer Agents : ÑFk¡FUÜF=+ JæFk Ek¶FÞµF EPÚF=+¶FFa : Registered & Head Office ÛFYõFõFa EáFkP=+¶F EõFFGÎFÛFWk© PáFPÛF© W° M/s Alankit Assignments Limited 225-C, Acharya Jagadish Chandra Bose Road, 205-208,EÎFFÞ=+áFU =+FgÛÑáFWƒ õF, ¤Fk°WæFFáFFÎF 205-208, Anarkali Complex, Jhandewalam Kolkata - 700 020 Jƒ õF© WkèFÎF, ÎFGa P¼ááFU-110 055 Extension, New Delhi-110 055 Phone : (+91 33) 2290 0964, 22877557/0568/9627 ¼[ÞÚFFðF õFk.-+91-11-4254-1951/+91-224348-1200 Tel : +91-11-4254-1951/+91-224348-1200 Fax : (+91 33) 2287 8547, 2240 4176 Ga-ÛFWWá[email protected]/[email protected] E-mail : [email protected]/ e-mail : [email protected] [email protected] 3 1 1 ¼_Pñ, ÍÜFWÜF EZÞ áF‡ ÜF Vision, Mission and Objectives ¼_Pñ Vision =+) PæFèæF ÙFF¡FFÞ ÛFWk Ga-=+FgÛFõFa =+U èFUðFa =k+ÑFÎFU ÙFÎFÎFF— a) To be the global market leader in e-commerce domain. b) To emerge as a dominant player in secured and &F) © dWP°k;F =W+ ‡ FW·F ÛFWk J=+ ÒÛF]&F PæFèæFõFÎFUÜF EZÞ ÑFFÞ¼èFUa =k+ÑFÎFU ÙFÎFÎFF— transparent trading. ;F) EÎF]ÑFÜFX;FU õFFÛF;FeU =+X P© =+FI+ JæFk ÑFÜFFaæFÞµF-Pù¶FYðFU ÑF]ÎFÒaP=e+ÜFF =W+ c) Creating value from waste resources through sustainable ÛFFÍÜFÛF õFW HÑFÜFX;FU õFFÛF;FeU ÛFWk ÙF¼áFÎFF— and eco-friendly recycling. ÍÜFWÜF Mission =+) Ga-=+FgÛFõFa =W+ æÜFFÑF=+ HÑFÜFX;F õFW ÑFFÞ¼PèFa¶FF EZÞ ÙFWù¶FÞ =+UÛF¶F a) To ensure transparency and better price discovery through õF]PÎFPè˜ F¶F =+ÞÎFF— extensive use of e-commerce. &F) ÑFÞWèFFÎFU ÛF]ƒ ¶F EZÞ PÎFðÑF‡ F Ga-=+FgÛFõFa õFW © dWP°k;F =+X èFPƒ ¶F-õFÛÑFÎÎF b) To ensure hassle-free and fair e-commerce enabled ÙFÎFFÎFF— trading. c) To promote sustainable and eco-friendly recycling. ;F) P© =+FI+ JæFk ÑFÜFFaæFÞµF-Pù¶FYðFU ÑF]ÎFÒaP=e+ÜFF =+X ÙFáF ¼WÎFF— d) To strive for continuous innovation to deliver desired value fF) PÎFÞk¶FÞ ÎFæFXÎÛFWðF =W+ ÛFFÍÜFÛF õFW EÑFÎFW õFÚFU õ© W=+ ùXá°ÞXk =+X æFFkPš ¶F to our stakeholders. ÑFPÞÛFFµF ¼WÎFF— e) To penetrate and expand the markets we handle and ‘ ~) PÎFÞk¶FÞ EÑFÎFW =+FÜFa-‡ FW·F ÛFWk ÎFJ ‡ FW·F =+U ¶FáFFèF =+ÞÎFF ¶F»FF EÑFÎFU enhance the value of services we render on sustained õFWæFFEXk =+U ;F]µFæF¸FF ÛFWk áF;FF¶FFÞ æF_PÊ =+ÞÎFF— basis. áF‡ ÜF Objectives =+) Ga-=+FgÛFõFa =+U PæFèæFõFÎFUÜF õF];FÛF õFWæFF õFW PæFèæF õ¶FÞ ÑFÞ õFUÛFF ÑFFÞ a) To increase India’s share in global cross border trade by æÜFæFõFFÜF =+X èFPƒ ¶F-õFÛÑFÎÎF ÙFÎFF¶FW CJ ÚFFÞ¶F =+U PùõõFW¼FÞU ÛFWk æF_PÊ facilitating reliable e-commerce enabled trading. =+ÞÎFF— b) To improve customer experience and make a significant positive impact on customers' satisfaction by providing &F) EÑFÎFW æÜFæFõFFPÜF=+ õFùÜFXP;FÜFXk =+X ¶æFPÞ¶F EZÞ =]+èFáF õFWæFFJk Ò¼FÎF prompt and efficient services to business associates, =+Þ¶FW CJ EÑFÎFW æÜFæFõFFÜF =W+ ÒP¶F ;FeFù=+Xk =W+ EÎF]ÚFæF =+X ÙFWù¶FÞ ÙFÎFFÎFF driving improved loyalty to its business. ¶F»FF ;FeFù=+Xk =+U õFk¶F]Pñ ÛFWk ÛFù¶æFÑF[µFa-õF=+FÞF¶ÛF=+ ÜFX;F¼FÎF =+ÞÎFF— c) To provide a secure and transparent e-commerce platform ;F) ÚFFÞ¶F EZÞ EÎÜF ¼WèFXk =W+ õFFæFa¡FPÎF=+ EZÞ PÎF¡FU ‡ FW·F =+U =k+ÑFPÎFÜFXk =+U enabling better price discovery and meet the transactional áFWÎF¼WÎF JæFk ÙFWù¶FÞ =+UÛF¶F ÑFFÎFW =W+ PáFJ EÑFÎFF õF]ÞP‡ F¶F EZÞ ÑFFÞ¼èFUa Ga- requirements of Indian and cross border public and private =+FgÛFõFa ÑáFW© ×+FgÛFa HÑFáFÙÍF =+ÞFÎFF— sector enterprises. fF) õF‡ FÛF, õFÛFPÑFa¶F EZÞ H¶ÒWPÞ¶F =+FÜFaÙFáF =+F PæF=+FõF =+ÞÎFF— d) To develop and maintain a competent, dedicated and motivated workforce. ‘ ~) ÛFW© áF JæFk Ga-æFWõ© PÞõFFGPƒ áFk;F =W+ ‡ FW·F ÛFWk ¶F»FF Ga-=+FgÛFõFa ÑáFW© ×+FgÛFa ÑFÞ e) To, enter into joint ventures with enterprises offering ÚFFæFU æÜFæFõFFÜF-æF_PÊ =W+ PáFJ JWõFU =k+ÑFPÎFÜFXk õFW õFkÜF]ƒ ¶F HÃÛF =+U synergy in the area of metal and e-waste recycling, =k+ÑFÎFU ÙFÎFFÎFF, ¡FX GÎF HÑF=e+ÛFXk ÛFWk õFÛFÎæFÜF=+ =+U ÚF[PÛF=+F PÎFÚFFJ— prospective business on e-commerce platform.