MSTC Limited, a Government of India enterprise, has received reaffirmation of its credit ratings from CARE Ratings Limited for bank facilities totaling ₹110.00 crore. The rating agency communicated its decision to the company on March 17, 2026, maintaining the existing ratings without any changes.

Credit Rating Details

CARE Ratings Limited's Rating Committee reviewed and reaffirmed the following ratings based on the company's operational and financial performance for FY25 (Audited) and 9MFY26 (Unaudited):

Facility Structure

The rated facilities comprise specific banking arrangements designed to support MSTC Limited's operational requirements. The long-term facilities include a proposed cash credit facility worth ₹10.00 crore, while the short-term facilities consist of non-fund based limits totaling ₹100.00 crore for letter of credit and bank guarantee arrangements.

Long-Term Facilities Breakdown

Short-Term Facilities Breakdown

Regulatory Compliance

MSTC Limited disclosed this credit rating update to BSE Limited and National Stock Exchange of India Limited in compliance with Regulation 30 of SEBI (LODR) Regulations, 2015. The company's shares are traded under scrip code 542597 on BSE and MSTCLTD on NSE.

Rating Methodology

CARE Ratings Limited based its rating reaffirmation on recent developments including the company's operational and financial performance. The rating agency reserves the right to undertake surveillance and review of the ratings from time to time, with at least one review or surveillance conducted annually. The ratings reflect opinions on the likelihood of timely payment of obligations under the rated instruments and are subject to periodic review based on the company's performance and market conditions.

Source: None/Company/INE255X01014/b13160af-a41a-48a2-a2f3-d57eb9df6233.pdf

MSTC Limited has received a regulatory fine from BSE Limited for non-compliance with board composition requirements during the quarter ended 31st December, 2025. The company disclosed this development through an official communication dated 2nd March, 2026, pursuant to SEBI listing regulations.

Fine Details and Regulatory Context

BSE Limited imposed the fine through an email dated 27th February, 2026, citing non-compliance with Regulation 17(1) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The penalty pertains specifically to board composition requirements that were not met during the third quarter of fiscal year 2026.

Company's Position and Clarification

MSTC Limited emphasized its unique status as a Mini Ratna Category-I Public Sector Undertaking under the administrative control of the Ministry of Steel, Government of India. The company clarified that the President of India holds the authority to appoint all directors, including independent directors, on MSTC's board.

The key aspects of the company's position include:

• All director appointments are made by the Government of India through the Ministry of Steel
• MSTC Limited has no role in director appointments unless nominated by the government
• The company has been continuously following up with the Ministry of Steel for independent director appointments
• No desired nominations have been received from the Ministry to date

Impact Assessment and Waiver Request

MSTC has formally requested BSE to waive the imposed fine, arguing that the non-compliance circumstances were beyond the company's control. The management stated that the violations were neither due to negligence nor default by the company, but rather stemmed from delays in government appointments.

The company has assured that the BSE fine will have no impact on its financial, operational, or other business activities. This disclosure was made to keep stakeholders informed about the regulatory development while maintaining transparency in compliance matters.

Corporate Governance Context

As a government-controlled enterprise, MSTC operates under a different governance framework compared to private companies. The appointment process for independent directors involves government procedures that can extend beyond the company's direct influence, creating potential compliance challenges with stock exchange requirements.

The company continues its efforts to meet regulatory compliance requirements while working within the constraints of its government ownership structure and appointment processes.