MIRA
INFORM REPORT
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Report Date : |
12.10.2007 |
IDENTIFICATION DETAILS
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Name : |
SHAH ALLOYS LIMITED |
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Registered Office : |
5 / 1, Shreeji House, Behind M. J. Library, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
23.11.1990 |
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Com. Reg. No.: |
014698 |
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CIN No.: [Company
Identification No.] |
L27100GJ1990PLC014698 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
AHMS02307E |
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Legal Form : |
A public limited liability company. The company’s shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturing of Alloy Steel Products. |
RATING & COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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Maximum Credit Limit : |
USD 10000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established company, doing very well on all fronts – domestic as well as exports. Financial position is good. Payments are usually correct and as per commitments. The company can be considered good for any normal business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
5 / 1, Shreeji House, Behind M. J. Library, |
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Tel. No.: |
91–79–26578030/26578046/26578058/55308100 Office: 91-79-66629100 Plate Division:91-79-66629133 Round Division: 91-79-66629135 Purchase Division: 91-79-66629123 Export Division: 91-79-66629151, 66629152 |
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Fax No.: |
91–79–55308110/55308120/55308150/ 66629110, 66629120, 66629150 |
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E-Mail : |
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Website : |
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Area: |
1,200 sq. fts |
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Location: |
Owned |
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Corporate Office : |
GNFC Infotower, 9th Floor, Sarkhej- |
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Factory : |
Block No. 2221 / 2222 Shah Industrial Estate, Sola – Kalol Road, Santej, Taluka Kalol, District Mahesana - 382 721, Gujarat, India Tel. No. 91 – 2764 – 286525 / 286545 / 286616 Fax No. 91 – 2764 – 286615 |
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Area: |
35,285 sq. fts. |
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Location: |
Owned |
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Branches : |
Located at :- PURCHASE OFFICE: FF/4, P. K. House, 1st Floor, Behind M. J.
Library, Tel. No. 91 – 79 – 26575081 Fax No. 91 – 79 – 26575110 |
DIRECTORS
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Name : |
Mr. Rajendra Vijaykumar Shah |
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Designation : |
Chairman and Managing Director |
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Date of Birth/Age : |
19.09.1955 |
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Profile : |
He is the Chairman and Managing Director from a modest beginning with acquisition of rolling mill in 1976, graduating to steel production in 1990 with installed capacity of 15000 T/annum steel at company. This has transformed Shah Alloys Limited, as giant in stainless steel making with his foresight, technical skills and personal involvement. He has demonstrated the true quality of a leader and leads the organization from front. The company is the 2nd largest stainless steel producer in the country aiming for the top spot. |
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Name : |
Mr. S. N. P. |
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Designation : |
Joint Managing Director |
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Name : |
Mrs. Ragini R. Shah |
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Designation : |
Director |
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Date of Birth/ Age: |
11.01.1961 |
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Name : |
Mr. Jayesh V. Shah |
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Designation : |
Director |
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Date of Birth/ Age: |
28.05.1969 |
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Name : |
Mr. S. T. Shah |
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Designation : |
Director |
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Date of Birth/ Age: |
02.08.1927 |
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Name : |
Mr. G. M. Shaik |
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Designation : |
Director |
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Date of Birth/ Age |
30.07.1940 |
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Qualification: |
Chartered Accountant |
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Name : |
Mr. Mahendra K. Shah |
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Designation : |
Additional Director |
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Name : |
Mr. Atul P. Pandya |
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Designation : |
Executive Director |
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Date of Birth/ Age: |
20.04.1958 |
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Name : |
Mr. Girishchandra Bhatt |
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Designation : |
Director |
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Name : |
Mr. Ashok Sharma |
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Designation : |
Director |
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Name : |
Mr. Sandip A. Mistry |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Bhupendra Jha |
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Designation : |
Vice President |
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Name : |
Mr. Sandip A. Mistry |
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Designation : |
Company Secretary and Sr. Manager (Finance) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Indian Public |
2847369 |
31.96 |
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NRIs |
4800 |
0.05 |
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Nationalised Banks |
100 |
0.00 |
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Domestic Companies |
82546 |
0.93 |
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Promoters |
5725100 |
64.25 |
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Directors & their relatives |
250105 |
2.81 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing of Alloy Steel Products. |
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Products : |
Utensil Grades Austenitic Stainless Steel Martesitic Stainless Steel
Stainless Steel Black Bars Stainless Steel Wire Rod in Coil
Stainless Steel Wires Stainless Steel Hex & Square Stainless Steel Flat Stainless Steel RCS
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Imports : |
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Products : |
v Raw Materials v Capital Goods v
Stores |
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Countries : |
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Terms : |
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Purchasing : |
L/C |
GENERAL INFORMATION
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No. of Employees : |
Around 686 |
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Bankers : |
+
Union Bank of +
State Bank of +
Bank of + Axis Bank Limited + IDBI Bank Limited + The Dhanlaxmi Bank Limited + Punjab National Bank + ING Vysya Bank Limited |
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Facilities : |
- |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Parikh & Majumdar Chartered Accountants |
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Address : |
204-5-6 Harsh Avenue, |
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Associates/Subsidiaries : |
+ Shah Steel Industries + Shah Industries + Shah Steel Udhyog + Vijay Steel and Metal + Adarsh Foundation +
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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35000000 |
Equity Shares |
Rs. 10.00 each |
Rs. 350.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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19797540 |
Equity Shares |
Rs. 10.00 each |
Rs. 197.975 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
198.000 |
178.200 |
89.100 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
2314.200 |
1690.600 |
1452.500 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
2512.200 |
1868.800 |
1541.600 |
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LOAN FUNDS |
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1] Secured Loans |
3090.600 |
3044.000 |
1623.200 |
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2] Unsecured Loans |
921.000 |
627.600 |
394.900 |
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TOTAL BORROWING |
4011.600 |
3671.600 |
2018.100 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
6523.800 |
5540.400 |
3559.700 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
2468.800 |
2661.300 |
1340.000 |
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Capital work-in-progress |
1785.700 |
285.200 |
601.000 |
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INVESTMENT |
399.200 |
399.300 |
400.700 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
2137.200
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1782.900 |
1598.400 |
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Sundry Debtors |
688.500
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1033.800 |
367.800 |
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Cash & Bank Balances |
463.700
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298.500 |
426.400 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
1888.300
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1760.800 |
1013.000 |
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Total
Current Assets |
5177.700
|
4876.000 |
3405.600 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
3275.900
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2639.800 |
2163.100 |
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Provisions |
41.300
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53.800 |
24.500 |
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Total
Current Liabilities |
3317.200
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2693.600 |
2187.600 |
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Net Current Assets |
1860.500
|
2182.400 |
1218.000 |
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MISCELLANEOUS EXPENSES |
9.600 |
12.200 |
0.000 |
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TOTAL |
6523.800 |
5540.400 |
3559.700 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
13635.100 |
9581.900 |
12060.600 |
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Other Income |
191.700 |
306.200 |
239.900 |
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Stock Adjustments |
194.200 |
212.500 |
338.300 |
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Total Income |
14021.000 |
10100.600 |
12638.800 |
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Profit/(Loss) Before Tax |
472.600 |
489.000 |
498.400 |
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Provision for Taxation |
81.400 |
141.500 |
50.300 |
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Profit/(Loss) After Tax |
391.200 |
347.500 |
448.100 |
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Expenditures : |
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Raw Materials |
9518.000 |
6212.500 |
8040.200 |
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Excise Duty |
1148.300 |
1256.300 |
934.700 |
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Power and Fuel Cost |
787.900 |
648.000 |
690.000 |
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Other Manufacturing Expenses |
1209.400 |
902.300 |
1499.600 |
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Employee Cost |
117.000 |
112.100 |
133.800 |
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Selling and Administration Expenses |
391.700 |
257.300 |
495.300 |
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Miscellaneous Expenses |
20.800 |
6.800 |
48.900 |
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Interest and Financial Charges |
407.000 |
305.300 |
298.100 |
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Depreciation |
218.000 |
176.000 |
134.800 |
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Total Expenditure |
13818.100 |
9876.600 |
12275.400 |
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QUARTERLY RESULTS
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PARTICULARS |
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30.06.2007 |
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Sales Turnover |
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2814.400 |
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Other Income |
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91.600 |
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Total Income |
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2906.000 |
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Total Expenditure |
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2965.200 |
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Operating Profit |
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2965.200 |
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Interest |
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(59.200) |
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Gross Profit |
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|
73.200 |
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Depreciation |
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(132.400) |
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Tax |
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|
63.600 |
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Reported PAT |
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|
0.300 |
KEY RATIOS
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PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
2.79
|
3.44 |
3.55 |
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Net Profit Margin (PBT/Sales) |
(%) |
3.47
|
5.10 |
4.13 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
6.18
|
6.49 |
10.50 |
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Return on Investment (ROI) (PBT/Networth) |
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0.19
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0.26 |
0.32 |
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Debt Equity Ratio (Total Liability/Networth) |
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2.92
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3.41 |
2.73 |
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Current Ratio (Current Asset/Current Liability) |
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1.56
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1.81 |
1.56 |
LOCAL AGENCY FURTHER INFORMATION
History
Subject was incorporated on
Subject was promoted by Mr. Rajendrabhai V. Shah and Mrs. Raginiben R. Shah.
The company came out with a public issue in December, 1992 to part finance an expansion scheme and to meet long-term working capital requirements. The company has embarked on a Rs. 65.3 millions project to manufacture stainless steel and other alloy products, financed by GIIC. It has put up a hot plate rolling mill at a cost Rs. 367.5 millions.
The company has received the Dhatu Nayak Award for best performance in the stainless steel industry.
During 1998-99, the company implemented the project of captive power plant having capacity of 20 MW. The project was financed through term loans and internal cash accruals.
Also in 2000-01, the company has successfully commissioned
During 2001-02, Shah Steel & Industrial Gases Limited was amalgamated with the company and accordingly 20 equity shares of the company were issued and allotted to Shah Steel & Industrial Gases Limited pursuant to the scheme which provided for the company to issue shares in the ratio of one equity shares of the company for every 35 equity shares of Shah Steel & Industrial Gases Limited.
Website details
attached:
Rajendra VijayKumar Shah - The Chairman and Managing Director from a modest beginning with acquisition of rolling mill in 1976, graduating to steel production in 1990 with installed capacity of 15000 T/annum steel at subject.. This has transformed Shah Alloys Limited, as giant in stainless steel making with his foresight, technical skills and personal involvement.
He has demonstrated the true quality of a leader and leads the organization from front.
Today subject is the 2nd largest stainless steel producer in the country aiming for the top spot.
C O M P A N Y P R O F I L E
Subject from modest beginning of 15000 T/annum in 1990 has come to acquire a pride place in the country with production capacity of over 2, 00,000 T/annum through technological advancement and cost competitiveness.
The Systematic expansion plans and time bound execution has made subject as a first runner in stainless steel production, the 2nd largest in the country.
C U S T O M E R S E R V I C E S
Subject accords priority to customers’ feedback. Manufacturing practices are constantly updated and modified to subsequent requirement of customers in terms of quality, timely delivery and after sales services.
Q U A L I T Y A S S U R A N C E
Subject accepted the fact that the reputation of the company lies on the quality of its products. With stringent quality control measures aided by modern process control, inspection and testing facilities. Subject ensures supply of quality products confirming to International Standards. The quality assurance efforts are complemented by the testing facilities of laboratory equipped with sophisticated equipment like. :
· Universal Testing Machine
· Hardness Tester
· Impact Tester
· Ultrasonic Flaw detector
· Ultrasonic thickness gauge
· Full Fledged Chemical Laboratory
· Temperature measuring equipments
optical and infrared.
Facility
PRODUCTION FACILITY
STEEL MELTING SHOP (SMS-1 SMS-2)
Scrap Preheating Furnaces
2 Nos. one in each shop
Induction melting Furnaces
4 Sets 20 Ton Capacity
(Largest Capacity In
1 Set of 15 Ton Capacity
1 Set of 10 Ton Capacity
AOD Converters 2 Set of 28
Ton Capacity
2
Set of 50 Ton Capacity
{Having
fully Automatic GMC & PLC Controlled}
Fume exhaust
systems To be
Environment friendly, both the Shops are equipped with
Ladle Refining Furnace 50Ts Capacity Ladle
refining Furnace 1 Nos.
CASI cored wire
Treatment Station One in each shop
Electromechanically Operated and Capable for 8mm to 13.5mm cored wire.
CASTING FACILITY
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ROLLING MILLS
Plates and Hot rolled Coils and long products
- 4 Hi reversible plate mill equipped
with PLC temperature control and recording system Capacity 1800 mm
- Steckle Mill for Hot rolled coil having
capacity upto 2000mm. The widest in Indian stainless steel Industry
Flats,
Round and Structural Mill
- The Cross Country mill for rolling of
Flats, Round Bars, Channel Angle and I-Beams
POST ROLLING FACILITY
Based on customer requirements, bars and plates can be supplied in heat
treated condition, for which Shah Alloys Limited has following equipment.
- Oil fired annealing furnace with PID
control and data storing facility - 2 Nos quenching tank for solution
annealing.
- Multiroll straightening Machine for
round and plates
- Pickling and passivation facility
- Continuous annealing & pickling
line for HR coil
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 39.31 |
|
|
1 |
Rs. 80.12 |
|
Euro |
1 |
Rs. 55.76 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
8 |
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PAID-UP CAPITAL |
1~10 |
8 |
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OPERATING SCALE |
1~10 |
8 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
9 |
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--PROFITABILIRY |
1~10 |
7 |
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--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
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--RESERVES |
1~10 |
8 |
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--CREDIT LINES |
1~10 |
8 |
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--MARGINS |
-5~5 |
-- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
YES |
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--EXPORT ACTIVITIES |
YES/NO |
YES |
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--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
|
72 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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