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MSTC Ltd
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Ladies and gentlemen, good day, and welcome to MSTC Limited Q4 and FY '22 Earnings Conference Call hosted by Equirus Securities. [Operator Instructions] Please note that this conference is being recorded.
I now hand the conference over to Mr. Depesh Kashyap from Equirus Securities. Thank you, and over to you, Mr. Kashyap.
Yes. Thank you, Meerav. Hello, everyone. On behalf of Equirus Securities, I welcome you all to 4Q and FY '22 earnings conference call of MSTC Limited.
From the management, we have with us Mr. Surinder Kumar Gupta, Chairman and Managing Director; Ms. Bhanu Kumar, Director, Commercial; Mr. Subrata Sarkar, Director Finance; and Mr. Ajay Kumar Rai, Company Secretary. We'll begin by opening remarks from the management, and then we can open the lines for Q&A.
I now hand over the call to Mr. Surinder Kumar. Over to you, sir.
Yes. Good morning, everybody. We have done quite well as compared to last year. We are basically 3 companies: MSTC, FSNL and our joint company MMRPL. All 3 companies have made record profits. MMRPL recorded a [indiscernible] profit this year, FSNL has made the record profit, and MSTC has also achieved all-time high profit.
It will still be stand-alone financial performance. We have a revenue from operation net after reductive purchasing. We have a growth of around 23% over last year. Total income rising by 30%. PAT rising by around 90% -- PBT rising by 90%. Profit after tax is almost double. It is driven by 98%.
When we talk about the consolidated performance, again, the profit have increased -- profit before tax has increased by 71%. And profit after tax has increased by around 76%. So there is a robust performance. And our earnings per share, EPS, has allowed almost increased from INR 14 to INR 28 on a stand-alone basis, that's a double of the last year -- almost double in the same proportion as the basically profit after tax.
And for the -- consolidate also the EPS has taken a big leap. Now FSNL is doing very good as we see production of our [ IFPs ] are increasing, FSNL is also increasing its revenue. There is another positive development, there is a plant which is going to be operational in current financial year, it's a NMDC plant at Nagarnar. So that will be operational. We have done the contract part, the Chennai operation for that plant that will be a good revenue projections in the current year, and next financial year as far as the FSNL is concerned.
Nevertheless, I mean I would also say that the process for this investment is at advanced stage and [ EAI ] has already been to, and it is giving some time in June. So [indiscernible] working hard, and we are for strategic [indiscernible] of the assessment of FSNL.
In MMRPL, we have 3 plants which are operational and every plant has got good returns, more for R&D release policies,states have yet to implement the policy which has been incurred by the [ more ]. And we are in active engagement with the state government for early issue of the policy.
And we are setting our further plans and targeting to complete 4, 5 plants in the current financial year. As far as MSTC is concerned, we have a growth in volume also, and more than volume, we have a very, very robust growth in e-commerce [ division ]. So we have increased the income or [ sales ] income from INR 2.77 crores to INR 254 crores. So that's a quite a jump. And there is another thing that quarter-to-quarter also, we have a better performance in current financial year. So the growth is robust.
The reason for the growth is on factoring apart from the increase in volumes. There has been a good price for the iron ore. The segment-wise iron ore has given us quite a good jump in profit. Similarly, the scrap sale has also given us a good jump.
And overall, the business -- we are diversifying into all kinds of e-commerce areas. In this current year, [indiscernible] will be a major source of income, most measure as per the central government policies all major members, various state governments are being to I mean -- as per the mandate of the center, they have to mandatory sell their mineral block through MSTC quarter only. So now their patents are coming. And as we are engaging with the state governments, we are trying for the sale of their minor mineral as well.
Apart from the mineral blocks, we are also proactively engaging with the parties who have both the minerals blocks so that for selling their minor minerals, also. So for an iron ore, we have got good success, and we are making the efforts and replicating that kind of successes for other minerals, also.
So overall, the business prospects are good. That's what -- [indiscernible] commodity prices, of course, have helped us, but that's not the only reason. Our volumes have, in absolute terms have increased, and we have diversified our bouquet of services to new areas. So that's all in a nutshell about the company.
Our Director of Commercial, will further elaborate about the business operations and Director of Finance, will take you to the main financials. Thank you.
Good afternoon, all. I'm Ms. Bhanu Kumar, Director Commercial of MSTC Limited. So more or less, our MD has given a broad overview of what has been the performance and the key factors that helped us achieve this brand performance.
Now the helping factors apart from the commodity prices is the scrap sale volume that we have been handling that has also gone up, not just the prices, the volume has gone up.
So here, I would like to highlight that we have sold a very old power plant in [indiscernible] that brought us some good revenue. Then we also diversified into other products, not just the iron ore and [indiscernible] and all these minerals.
Now we are going to sell gypsum for NTPC and probably other power utilities. That was the first time we started for NTPC, and that has been met with very grand success. So going forward, the volumes are likely to increase. Apart from that, the government's trust for this investment of variable units of [ 6 PSUs ] is also helping us. That is where the volumes are coming up. So inventory items of [indiscernible] India Limited that has also been sold off in the last year.
Apart from that, there are a few power plants which have been lined up, which have been sold in the recent past, but that will actually materialize in the current financial year. Then in the Property segment also, we are making good in growth, not just for the NPAs of the banking sector. But also for various state governments and central government, our property portal is having a very robust growth.
Then in a very small way we started off last year with liquor license auctions for Rajasthan. So we have been engaging with the Excise department of various governments. In Bihar, where e-commerce is definitely a nonstarter. There the Excise department called us and they asked us for auction of the confiscated vehicles. So that is, again, although it is a very small volume, but the...
[Foreign Language]
[Technical Difficulty].
Hello?
[indiscernible] go ahead. You are audible.
Yes. So that's a small beginning in the -- for the government of Bihar. So we expect that more such units will come to us for auctioning of their scrap and confiscated goods. Then on that [ coal ] ash,fly-ash we have been selling all across the country for many years. [ Coal ] ash and the other kind of base material which can be used by the cement industries and other infrastructure projects. But also we are able to sell, and these are very customized [indiscernible] orders. It is not that normal auctioning process takes place. So there also, our clients have seen a lot of benefit on our portal.
As we said, our focus is now going to be the sale of minerals that is mined from all the mineral blocks that have been auctioned in the recent past. So we are tapping that potential, we see huge potential, and we are approaching all the successful bidders who have got this block.
And going forward, we will be able to sell. And from the private sector, we are getting very good response. So that is something very commendable for us. And these are the key highlights of last year's performance. So going forward, we expect that this kind of growth can be expected in the near future, also. The market is still good.
Good morning, everybody. After [ Gupta ] has given a quite snapshot of our financial performance. I will just give some highlights. So if you look at our stand-alone financial performance, it is just double from -- PBT just doubled from [ INR 11,468 crores to INR 22,007 crores ], and PAT is again just doubled from [ INR 101.07 crores to INR 200 crores ].
And if you look at this consolidated basis, here also the almost [indiscernible] from PBT -- PBT is up by 70% from INR 135.88 crores to INR 232.9 crores, and profit after tax is also up by 76.29% from INR 102.95 crores to 119.13 crores. And on the balance sheet front, if you can see, our -- this year, we have in the stand-alone balance sheet front, we have already very good current ratio.
With this, I will now hand over for the questions, please.
I'll just add to the key highlights, go through our performance on the financials, you can see that our trading business, we have tapered off, which we have been emphasizing in the last couple of conversations. And this year, we also we have done some provisioning, but that we hope is the last tranche of provisioning. And going forward, there will be no provisioning required in this segment of business.
Thank you. And for the -- handing over to you for questions.
[Operator Instructions]
The first question is from the line of Pritesh Chheda from Lucky Investment Managers.
My question is on the e-commerce segment. Within this, if you could give us what is the scrap sales business? And what kind of volume growth and value growth did you see in that scrap sales?
Okay. In terms of volume as well as in terms of revenue, we have seen a growth of about 34%, year-on-year growth. I'm talking about 2021 and '21, '22.
I want year-on-year only. Okay.
So it is 34%.
And what is the value of scrap sales business?
We don't have those numbers exactly, but it will be in the range of about INR 5,000 crores, INR 6,000 crores.
That will be the value, right? So in that, you will get your commission?
That is the value, yes.
In that, what will be your...
If you talk about total e-commerce revenue, the percentage of scrap revenue is between 45% to 50%.
So basically about INR 140 crores, which would have grown at about 35%, right?
Yes.
Now this business, what kind of growth visibility do you have in the forthcoming year? And when you mentioned about, focus is on sale of minerals from the mining block auction by the government, so this mineral will be e-procurement, e-tender type of business or it will be a type of transactional-based business?
It is -- we call it e-sales business. All the mine minerals, that is auctioned through our portal, and that is a very different kind of model compared to the scrap where we go for price and quantity bidding.
So it will be a fixed...
It is not a fixed, but it is an auction. It is a normal auction.
So you will get a percentage or you will get a fixed fee per auction?
We have both these orders. It depends on what is the kind of services that the client takes from us. We will try the [indiscernible].
Okay. So do you expect the e-com business as a sum total to grow for us in the forthcoming year?
Yes. Definitely, we are hoping that it will go up, whatever volumes we have shown here about INR [ 134,000 ] crores we are saying is the volume of e-commerce transactions that has happened through our portal. So going forward, we expect that it will be more than this.
Any growth number you want to mention that you will grow a certain...
No. It won't be possible because we have a basket of the products. So something may go down and something may go up.
Okay. My second question is, Ma'am, with respect to the entries in P&L. I could understand the provision which we have taken. But usually, what is other income arises on account of?
Yes. That...
Other income, basically, if you see that you are talking about a big figure...
Yes. I can understand the provision numbers. But how does the other income...
But this other income is nothing, it's a book entry because we have taken -- we have written a provision of around INR 200 crores -- INR 200-plus crores, which is appearing both sides. It's a null effect on the P&L.
Perfect. I Understood, sir. So basically, net-net, there is no provision because we have taken a write back and there is a write-off. So net-net the provision is a difference of that number?
Yes. That is the -- that is the net provision.
And the tax rate, what would be your incremental tax rate now? Will you go to 25% tax rate from next year or still lower number only?
We have certain credits -- tax credits. So we still do not want to go to a new regime [indiscernible] that is [indiscernible]. Already, we have declared in the note that we are continuing with the old regime only.
So your tax rate will be what, for next year?
34.944%. That is the tax rate.
Sorry?
That is the tax -- old regime rate already in the 30-plus surcharge and that is the old regime rate, not at the new regime rate.
But when I look at your P&L, even last year, the expense out was 15%. You have some credit, and what would the next...
Yes, basically, if you see that it's the base tax rate, but you have certain -- we have got certain credits and assumptions, okay? For that only, we are sticking to this old regime rate, okay? And we have got certain net rates also. So to exhaust that we are still sitting on that old credit rate. That's why our net effective rate can come down heavily.
So Will I -- will the net effective rate next year will also be 15%, 20%?
We cannot comment right now what will be our income and what will be the circumstances, and what type of income we will derive. So it's very difficult to tell all this, but we will try to take maximum amount of tax planning that is available as per the law in India. That much we can say.
And my last question is when will that segment of scrap recovery and sales not start reflecting for us. We've already done the transaction, so...
That scrap recovery -- and that pertains in the console account because of our [indiscernible], okay? And as our [indiscernible] has already pointed out, like that the process of these investments has already started. [indiscernible] has already been floated. So it all depends upon the -- when that whole procedure comes to an end. [indiscernible]
[indiscernible] a couple of quarters back is what the communication you have given or it is yet to sell? You had mentioned about a INR 100 crores...
Yet to be, yet to be. The process of sale has already started. Process of sale already been started, but yet to be culminate into that full transaction, financial transaction.
[Operator Instructions]
The next question is from the line of Dixit Doshi from Whitestone Financial.
First question is regarding the trading business. So you mentioned that as per promise, you have tapered down. So will the trading business remain next year, also? Or there will be no revenue and segment from trading business?
Actually, in trading, we had 3 different models, models. So 2 of those models, we have discontinued completely. So there is be no transaction under those 2 models.
One model where we do procurement for our clients backed by 110% BG. That is still there because it's quite a safe model. And in that, of course, the transactions are not to the extent of what we had expected earlier. They are [indiscernible] be some small income but not very significant.
Okay. And net-net there also, we will not lose money. I mean 1% or 2% margin will be there or at least...
Yes. Yes, absolutely.
Okay. Now my second question is regarding -- there is one notes to account regarding that standard chartered case where you have mentioned that INR 143 crores is shown in the loan, which is in the short-term loan, and it is also shown in the receivables. So this INR 408 crore of receivable in the stand-alone balance sheet. That includes this INR 143 crores, is it right?
Yes. Basically, you see what has happened. It is in the gross provision. INR 403 is the net of provision. We have already made provision for that INR 147 crores in the books of accounts, okay? But grossly, it stands in our books of accounts -- in a gross manner, it stands in our books of account.
Okay. So now this INR 408 crores, can you give the breakup of this receivable in terms of...
Basically, INR 408 crores is -- more than 50% is backed by 110% BG. So around INR 200-plus crores is for our BG business. So it is completely secured by 110% BG amount. And for the sticky part, we have already made all the provisions, and the balance is basically more or less from e-commerce and associates model, which are, of course, quite safe.
So if you look at the provisioning part, we are done away with most of the provisioning part.
So you mentioned INR 200 crores from the trading receivable of [indiscernible].
INR 200-plus crores from the trading, yes.
And there will be some from associate model, also?
Yes. So that is also a safe and secure because it is backed by the traders guarantee, and the e-commerce, which is -- pardon?
How much that would be, approx [ something ]?
That will be around INR 100 crores, and around the balance will be from our e-commerce business. So both are safe, and both do not require any major provisioning in the coming years that we can foresee.
Okay. So e-commerce receivable is around INR 100 crores only.
Around -- it will be around, rather it is less than INR 100 crores.
Okay. Okay. And my last question is regarding this e-commerce revenue. So on a steady-state, there is always some year, you have some e-auction or, let's say, spectrum auction. Then there will be some year, some business will not come and some new business will come. So on a steady-state basis, let's say, over 2, 3 years, can this business grow at double-digit, I mean, 10% to 15%? Or you feel that it can grow further, also?
Yes. So far, forecasting is concerned, again, I just told you earlier also, it's very difficult to tell right now sitting over here, see what will be the growth factor today.
But again, that we keep on retracing it will be the MSTC's growth will be basically backed by e-commerce. And of course, it will be highly market-driven because it depends on a lot of the market factors also, like price of -- how the steel market fares, price of the scrap, et cetera et cetera.
So it will be very difficult as it's now sitting on today to tell what will be the growth, but we expect that, of course, there might be a growth. But, of course, there are certain factors, which is very difficult to predict right now.
I'll add here that although it's very difficult to predict the growth, but you see the government post for digital India. And all even state government, central government, every department, every PSUs are going more and more towards the e-side, e-commerce business or development of their portal, specific portal for the specific requirement. And that is where the MSTC's strength lies. So we can convert any manual process to e-commerce for giving them the desired benefit. Like we had designed a [ green ] portal [indiscernible] a couple of years back.
Now we have last year 2 ONGC and this group companies, we have delivered a similar [indiscernible]. I mean a portal with much advanced future -- further has been portal. So basically the most government companies are going towards e-processing. And they want to sell all their -- whatever their scrap or useful things only through the e-processes. So that's where we expect that we'll be able to maintain the growth momentum.
But nevertheless, the risk factors or the other factors like the commodity price, as [indiscernible] has said, is steel prices. Naturally, if the steel prices go up, scrap prices go up, iron ore prices go up, steel prices go up. So all these things will definitely to some extent, will add on the [indiscernible] -- or may decrease our revenue a day. But nevertheless, we are working hard to retain not only the old business, but that additional business, additional clients, additional principles. Thank you.
Okay. And one last thing. Obviously, the opportunity in the scrap sale is huge in India, but predominantly, even today, we are mainly into working for the PSUs. We did try in the last 2, 3 years for Reliance, Bharti Airtel or many other private sector also. But still the volumes are low. So what we are trying to do, you know, increase the volume? Or what are the headwinds you are seeing in that segment?
Yes. Actually, this year, now we are going to focus more on aggregation of the smaller industry who generate scrap on a regular basis. So we have introduced one model last year where the Industrial Development Corporation or some kind of an aggregator or some government intermediary is roped in. He asks the facilitator for the smaller units to channelize their scrap. So we are going for expanding this model of business this year. And this is an area where the trust needs to be given. Because as a PSU, under -- especially under Ministry of Steel, we need to augment the supply of scrap for the secondary steel production. So that is going to be our focus now.
The next question is from the line of Maan Vardhan Baid from Laurel Advisory.
So one, I just wanted to seek a clarification in our earnings presentation in the e-commerce section, there is an other income of around INR 30 crores. That's stated. So I just wanted to understand under the e-commerce section, what is this specific INR 30 crores item?
Yes. Basically, in the e-commerce segment, we collect this registration fees and transaction fees, et cetera, in our year. So that is our other operating income from that e-commerce segment. And -- so that's the -- basically, the main part of that -- that is basically the main part of that other income.
Okay. Fair enough. So I wanted to understand, there was some information about Coal India setting up its independent auction platform. So any updates on that? And how will that affect our numbers if that comes up?
Coal India had actually started this portal. I mean they have developed the portal, but it's not operational as on date. And now there's some policy changes for the sale of coal itself. So at least this year we don't see much of a change in our coal sales. But maybe going forward, if this quarter takes off in a big way, then definitely we may not be able to retain this business. But as on date, the kind of portal and the kind of customization that we can do, the service provider who were preparing for Coal India is not equipped to handle that. So it may take -- in my opinion, I mean, it's totally possible, but it may take at least a couple of years for that to stabilize.
Another thing here is, from the coal segment, our earning is around INR 10 crores, INR 11 crores. So that's not a very significant earning. Nevertheless, we'll be working hard for retaining that business also. But as [indiscernible] said, they have made the portal, but they have not been able to actually use it till date. So they are continuing with our services. And now they have engaged us for making a portal for basically the specific changes that central government has mandated now. So we are actively engaging with them. And we are hoping that at least in the near future, the business will continue. Okay. Thank you.
Fair enough. Sir, third question. Internally, I mean, in terms of most platforms that we see that become successful, they have a very big portion that comes from advertising. The very big portion of the revenue comes from advertising. So what are the steps that we are taking? And what is the sort of prospects that we see on that front?
You are right. We have not yet focused on advertising. Basically, what we think is that -- I mean primarily our portal is second to B2B segment. I mean it's very small area and properties that are there where we cater to B2C. So the advertisement revenue will be more in place of B2C where we keep falling very high. We have also a very good footfall, but we'll take forward your suggestion and see whether we can get something out of advertising.
Okay. Also, sir, what are -- sort of how do we benchmark our websites to other websites? And I just wanted to understand what is the process for that, while I understand we have a lot of capabilities in terms of understanding the complex nature of B2B procurements. But sort of I just wanted to understand in terms of developing a website in terms of -- so that it is easier for the user, et cetera. What are the -- sort of how is that approached upon?
You see, Maan, is not basically, I mean, what I see is what we are trying to ask you is that we designed these specific portals for specific customers. The website is a very generic term, any undergraduate can make a website. So perhaps that's not your intention. Basically, whatever -- I mean how the customer interacts with our portal, right? That's what you wanted to...
Absolutely.
So I will admit that we have -- we are not as robust as Amazon or Flipkart because that's not our requirement. So our -- basically, we have a large buyer base, but that also is nothing compared to the Amazon or Flipkart. So we have a customer category to whom we have to cater to. So we -- when we design a portal, we proactively engage with them to understand their requirements, and custom make portals as per their requirement. So -- and we make it an effort to give them a customer-friendly portal and to provide them the information that they require. Okay. But there are -- there is always a scope. And based on the feedback, we have a system where we constantly and continuously upgrade our systems. I hope I was able to answer it?
Yes. Yes, absolutely. And just last question. I think in the last concall, you had mentioned the sort of the website that has been made on the agriculture side, Jaivik. I think there were some last-mile connectivity issues that, that website was facing. I mean I think maybe from the end of the ministry. Has that been resolved? Is that more active now?
Not exactly. Not much progress has been made in that area. Logistics and packaging and handling is still a gray area, and the channel is not yet established. I think the market has to mature a little more for these things to come on board.
The next question is from the line of Manish Agarwal from [ Arise ] Group.
Sir, most of my questions have been answered. Just one simple question I have is, like we have made -- if we look at the cash flow, the provision no longer required this INR 221 crores. So could you please help me if these provisions are already in the balance sheet? Because I am unable to find that.
Just now the -- earlier also, I just replied, it is basically a book entry because these provisions were already lying in it. If you see that last year's annual report, okay, if you can go through the last year's annual report, there was a note how much provisioning is lying there. So it was already sitting on our books of accounts. And just we made a write-off this year, and it has a neat effect on our P&L. It is just income and the expenditure side, both side, it is there. So that is there. Nothing else it is a book entry that's come.
Okay. So could agree, but it was already in the books, it should be in the balance sheet as well.
It's already there in the books of accounts, and it was sitting in the balance sheet. And I give you that reference also last year's annual report, you see the data schedule where it was clearly mentioned, that this much of amount, almost -- around same amount was sitting over there.
Okay, sir. And one more thing, sir. Is there any more provisions we can expect next year? Like what is the quantum of provision which we can expect next year?
No. No. Just now we have categorically. We kept on saying that we are doing a staggered way. And now so far, all the key provisions that is required for has been done away with, and we expect very, very miniscule provisions in the coming years. And if any, I mean, exceptional or extraordinary event happens, that is all -- otherwise, in the normal course of business, it will be a very miniscule provisions in the coming year, very miniscule as compared to that we are keep on doing.
You see that trend also this year, it is around INR 35 crores plus. And last year, it was around INR 68 crores. So it is going down gradually. So with that, we have done away with almost all the provisioning. So again, I repeat that will very miniscule provisions unless until there are some extraordinary or something major happening.
The next question is from the line of Harshit Jain from Rah Investments and Advisory.
Just heard over with Mrs. Bhanu last quarter, and she said that we are going to taper down our marketing business. But for this year, we have done marketing revenues of around INR 413 crores versus INR 406 crores. So can you please explain that why this business has not tapered down...
I'm explaining. Just now if you are part of that concall earlier also, we replied to Manish Agarwal jee. It is physically segmental part, INR 220 crores was written back. So that is the provision no longer required and [indiscernible] but has come and sit on this particular date. That's why. Otherwise, so far, we -- transaction-wise, it is a very less transaction.
And it is hardly any transition around INR 160 crore transaction we have done, that too of the late [indiscernible] toward orders. Plus, we are only now engaging with that 110% BG backed procurement segment.
Just one more thing here, well, our marketing business will be profitable because as of now, I'm seeing that we have incurred a loss of around INR 5.9 crores last year on marketing front. So will this be profitable going forward?
Yes. As we said, we are going to have only this 110% BG-backed model. So there, we don't envisage any kind of losses. So it is profitable, but of course, very miniscule.
And to add to that, you are seeing the losses because of that provisioning was happening, that we have tapered down our income, but the provisioning part was for the earlier years. So there was a mismatch between income and expenditures. So right now, as we had just done away with the provisioning from the next year, whatever earnings we will have in our city, there will be no negative part on that per se.
Right, right. And one more question would be regarding this that while there is a need to show book entry. Because even last year in Q4, we have shown a book entry of INR 200 crores -- other income of INR 200 crores write-off. And this year, we have shown the same thing. So will this be -- going forward will this be the same trend going forward?
Because it is basically an accounting requirement because to -- if you can appreciate that is the difference between provisions and write-offs. First of all, if there is the impairment of any financial asset that make a provision. And when you see that fee is that the recovery chances is totally 0, then we make write-off, okay? So these are the 2 different things. So for that, we have to make an entry and for -- in the books of accounts to have a track and trace of all these things. [indiscernible] We cannot knock off the reentries of balance sheet off the books.
Because the thing is that while Q1, Q2, Q3 numbers are very easy to understand, comprehend, but Q4 number being an investor or being a trader, it is very difficult to comprehend. So -- and just want to know that whether the same trend will be going forward? Or will be our Q4 number the same like Q1, Q2, Q3?
Hardly now -- it has done away with. Hardly, we expect not much more in the coming years. But of course, again, it will depend upon if we lose the court cases and NPLs cases, so naturally, there will be a write-off. Otherwise, we have done away with the provisioning so far the P&L effect is concerned, it is all now done away with. So now a couple of entries might come if we lose the cases. That's where that everything is gone out of hand, and we are unable to realize a single penny out of that. That's the point.
But other than that Standard Chartered case, no other entries will rise, right?
Standard Chartered case, there will be no entries because we kept on saying that we already dealt with it is sitting on our books of accounts. The entry part is okay. Fair enough. So the entry part we have already shown is that a loan. So -- and we are fighting in the case. So entry part is okay. If anything, of the outcome that will happen. That will happen...
Case -- as I read your notes that we have already deposited around INR 55 crores. So just want to know where is the book entry for this INR 55 crores in our balance sheet?
[indiscernible] appearing in the deposit part, financial asset deposit. When you get the -- when we publish the annual report also, you can track it down because separate schedule has been maintained for that, and separate disclosure is already there in that schedule also that this much amount has been deposited.
Okay. Okay. And my next question would be to Mrs. Bhanu. The last concall, you mentioned that MSTC is in talks with Tata Group. So any positive insight on that front?
Can you repeat?
Last quarter, you mentioned that MSTC is in talks with the Tata group. So any positive insights on that?
Yes. We have signed some agreements with the Tata Group, Tata Power specifically at both at Mumbai and at Delhi, and we are selling some of their old scrap and redundant items.
And anything with Tata Steel, Tata Motors?
Yes. Tata Group is availing our services for scraps too.
Anything with Tata Steel and Tata Motors yet?
No. No, not really.
Okay. And my last question would be, is there any proposal to change the name of the company? Because as Mr. Surinder Kumar sir already mentioned it somewhere because as my humble opinion, since we are predominantly in e-commerce there and most of the profits come from it. So I think our name should fall in line with the work we are doing.
No. Name is fine because now our name is MSTC, not scrap basically, Previously, it was metal scrap, right? Now it's not that. I mean now we are known as just MSTC. So no other reason and that kind of thing. And MOA, we are in the process. I mean we will be doing something for connecting our business in terms of whatever we are doing and whatever we are aiming to do, so that we are really under [ the bus ], and it's a long process. So we are working on that.
Because investor presentation considers us as a scrap company, which is not helping us to rerate our company and our valuations.
Okay. Right. That we understand. That we understand. So let's say, I mean slightly different segment in which we are, we are basically not a IT company also and not a trading company also. So -- but naturally, we need to change our MOA. We need to change our MOA. We are basically doing what our business assisted that basically assisted by the IT tools.
Yes. Because I am being an investor in the company since past 2 years. And what I felt that market is not recognizing you as a pure e-commerce player because our name is Metal Scrap Trading Corporation, MSTC. So my humble suggestion would be if we can go for our name change, which can define our work that we are e-commerce player. That would help us to rerate our company much better.
We'll -- take in your sentiment, we'll proactively think about it.
The next question is from the line of [indiscernible] from Apex Capital.
Sir, what I wanted to ask is the cash on our books of roughly INR 800 crores. What part of this INR 800 crores belongs to the shareholders? And what part is maybe customers' advance or something?
It's a very simple thing, this is clearly defined in the company's act like what is the shareholders' part, it is an equity plus reserves, it is a shareholders' part. It is one part of its answer of it. And again, if you look at this -- our balance sheet, which has been published yesterday, so basically, you see there is one way, there is a -- it is sitting in the cash and cash equivalents and other cases as a current asset, and there are current liabilities also. So if you made it up, so it is around 1.09, it is a current ratio.
So the answer goes as simple as that, that more than that working capital, that is the net cash that is live. That is the thing. That is a simple thing. And how the equity is concerned, your equity is there. Share capital plus investment capital. It is clearly disclosed in the balance sheet. It is clearly disclosed in the balance sheet. It is clearly disclosed in the balance sheet, what part of is my current liability. And our cash part becomes part of our current asset, so it is a part of our current assets, and what is their reliability, current liability. This clearly disclose no ambiguity per se.
As there are no further questions, I now hand the conference over to the management for closing comments.
So thank you, all our investors who had shown the interest in the company's financials. I can fully assure our investor community that the company with its all dedicated manpower is working hard, and helping the government to convert their processes to e-commerce and earn revenues in our efforts. So those -- the revenues that we earn. I mean if you see the volumes and the service income, so you see the service charges are small. There are many transactions where we get very less service charges. And there is always a pressure for reducing the service charges.
But nevertheless, we are able to maintain the growth and we are hopeful, I mean, unless otherwise something drastic happens we'll be able to maintain the growth momentum for the company. For all three companies like MSTC, FSNL and as well as our joint venture company, MMRP. Thank you.
Thank you very much. On behalf of Equirus Securities, that concludes this conference. Thank you for joining us. You may now disconnect your lines. Thank you.