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MSTC Limited October, 2003 Background & History MSTC Limited (formerly known as Metal Scrap Trade Corporation Limited) was incorporated under the Companies Act, 1956 on 9th September 1964. The status of theCompany underwent a change in February 1974 to make it a subsidiary of Steel Authority of India (SAIL). In the year 1982-83, the Corporation was converted into Government of India Company transferring the shares of SAIL to the President of India. It was the canalizing agency for import of carbon steel melting scrap, sponge iron, hot briquetted iron and rerollable scrap till February 1992. It was also the canalizing agency for import of old ships for breaking, import of which was decanalised and put under OGL with effect from August 1991. Presently the Company undertakes disposal of ferrous and non-ferrous scrap arising from integrated steel plants under SAIL, RINL, etc. and disposal of scrap, surplus stores, etc. from other PSUs and other Govt. departments on the basis of selling agency agreements. The Company also imports ferrous and non-ferrous scrap, coke, coal, finished steel and petroleum products for sale in India. The Company undertakes all these activities in competition with other establishments both in Private and Public Sector. From 1997-98 to 2002-03, the company has consistently improved its performance both interms of volume of sales and net profit (PAT). As per provisional results the volume of sales in 2002-03 was Rs.2645 crore and PAT was Rs.9.01 crore, excluding the operations of its wholly owned subsidiary FSNL. MSTC engages 288 employees at present and in addition its subsidiary FSNL employs 1246 persons. Incorporation and Share Capital MSTC was incorporated under the Companies Act 1956 on 9th September 1964 by the Government of India (through MMTC), members of Iron & Steel Scrap Association of India and of Steel Furnace Association of India. In July 1972 80% of the share holdings were transferred to the President of India, shareholdings of members of Iron & Steel Scrap Association of India and of Steel Furnace Association were reduced to 10% each. In 1973, after the formation of SAIL, Government's holdings were transferred to SAIL and MSTC became a subsidiary of SAIL. In 1982, the status of the Company was again changed to that of an independent Company under Department of Steel. Key locations The Company's corporate office is located at Kolkata, West Bengal. It has four regional offices at Kolkata, New Delhi, Mumbai and Chennai and three branch offices at Bangalore, Visakhapatnam and Vadodara. It has also five resident offices at Surat, Bhopal, Trichy, Rourkela and Durgapur. MSTC Activities MSTC is the leading importer of scrap in India. After decanalisation in February in 1992, the demand for imported scrap was considerably reduced in the country. The Company, therefore, enlarged its import basket and it now undertakes import of other items such as petroleum products, coke, coal, DR pellets, etc. for sale in India. The Company undertakes disposal of ferrous scrap and other secondary arisings generated in integrated steel plants and disposal of scrap and surplus stores from other public sector enterprises and Government departments. Some of the select customers of MSTC have been mentioned below: Government Integrated Steel Plants, e.g., SAIL, RINL, etc. Private Sector Steel Plants, e.g., ESSAR Steel, Ispat Industries Ltd., etc. Central PSUs, e.g., BHEL, NTPC, etc. State PSUs, e.g., DPL, MSRTC, etc. Defence units and Ordnance Factories.