MIRA
INFORM REPORT
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Report Date : |
24.11.2008 |
IDENTIFICATION DETAILS
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Name : |
SHAH ALLOYS LIMITED |
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Registered Office : |
5/1 Shree House,5th Floor M.J. Library , |
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Country : |
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Financials (as on) : |
31.03.2008 |
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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 : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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Maximum Credit Limit : |
USD 7000000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an old established company but passing through the
difficult times. The company’s profitability is under severe pressure and continues
to incur heavy losses. Payments are reported as slow and delayed. The company can be considered for small to mediocre business dealings
with slight caution initially. |
LOCATIONS
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Registered Office : |
5/1 Shree House,5th Floor 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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Factory : |
Block No. 2221 / 2222 Shah Industrial Estate, Sola – Kalol Road, Santej, Taluka Kalol, District Mahesana - 382 721, Gujarat, India |
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Tel. No.: |
91 – 2764 – 286525 / 286545 / 286616 |
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Fax No.: |
91 – 2764 – 286615 |
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E-Mail : |
info@shahalloys.com |
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Area : |
35,285 sq. fts. |
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Location : |
Owned |
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Corporate Office : |
GNFC Infotower, 9th Floor, Sarkhej- |
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Branches : |
Located at :- PURCHASE OFFICE: FF/4, P. K. House, 1st Floor, Behind M. J.
Library, |
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Tel. No.: |
91–79–26575081 |
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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 : |
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: |
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: |
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: |
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 |
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: |
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 |
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Name : |
Mr. Bhagwant Singh Rawat |
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Designation : |
Jt. Managing Director |
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Name : |
Mr. K.S.Kamath |
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Designation : |
Director (Marketing and Logistic) |
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Name : |
Mr. Yogesh N Thaker |
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Designation : |
Director (Human Resources and taxation) |
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Name : |
Mr. N.D.Shah |
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Designation : |
Director |
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Name : |
Mr. Dilipkumar Sinha |
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Designation : |
Director |
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Name : |
Mr. Harshad M. Shah |
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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) |
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Name : |
Mr. Kirit Kanjaria |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2008
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Indian Public |
4452742 |
22.49 |
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NRIs |
38395 |
0.19 |
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Nationalised Banks / Insurance Company |
1776724 |
8.97 |
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Domestic Companies |
2770763 |
14.00 |
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Promoters |
10590370 |
53.49 |
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Directors & their relatives |
168546 |
0.86 |
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Total |
19797540 |
100.00 |
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 |
PRODUCTION STATUS AS ON 31.03.2008
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Particulars |
Actual
Installed casting capacity (MT) |
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S.S Flats, bars and Castings, hot Rolled M.S Plates, S.SHR Coil |
300000 |
GENERAL INFORMATION
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Customers : |
Ř
Ř
Ř SAL Steel Limited |
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No. of Employees : |
Around 686 |
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Bankers : |
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Facilities : |
Secured Loans As on
31.03.2008
Unsecured Loans
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Banking
Relations : |
- |
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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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Name : |
Talati and Talati Chartered Accountants |
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Address : |
Ambica Chambers, Near old High Court, Navrangpura
Ahmedabad – 380 009, |
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Associates/Subsidiaries : |
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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 |
NOTE: Paid up Capital includes: 20 [P.Y. 20] Equity shares of Rs 10/- each issued on amalgmation of erstwhile company M/s Shah Steel & Industrial Gases Limited 8910020 [P.Y. 8910020] Equity shares of Rs 10/- each fully paid up issued bonus shares by capitalisation of reserve.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
197.975 |
198.000 |
178.200 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1100.680 |
2314.200 |
1690.600 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1298.655 |
2512.200 |
1868.800 |
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LOAN FUNDS |
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1] Secured Loans |
5610.034 |
3090.600 |
3044.000 |
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2] Unsecured Loans |
727.185 |
921.000 |
627.600 |
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TOTAL BORROWING |
6337.219 |
4011.600 |
3671.600 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
7635.874 |
6523.800 |
5540.400 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
3408.815 |
2468.800 |
2661.300 |
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Capital work-in-progress |
791.394 |
1785.700 |
285.200 |
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INVESTMENT |
399.506 |
399.200 |
399.300 |
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DEFERREX TAX ASSETS |
262.219 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
1507.271
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2137.200 |
1782.900 |
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Sundry Debtors |
409.627
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688.500 |
1033.800 |
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Cash & Bank Balances |
232.526
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463.700 |
298.500 |
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Other Current Assets |
3.811
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0.000 |
0.000 |
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Loans & Advances |
1557.782
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1888.300 |
1760.800 |
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Total
Current Assets |
3711.017
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5177.700 |
4876.000 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
926.023
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3275.900 |
2639.800 |
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Provisions |
17.994
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41.300 |
53.800 |
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Total
Current Liabilities |
943.994
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3317.200 |
2693.600 |
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Net Current Assets |
2767.023
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1860.500 |
2182.400 |
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MISCELLANEOUS EXPENSES |
6.917 |
9.600 |
12.200 |
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TOTAL |
7635.874 |
6523.800 |
5540.400 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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Sales Turnover |
9032.566 |
13635.100 |
9581.900 |
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Other Income |
101.178 |
191.700 |
306.200 |
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Total Income |
9133.744 |
13826.800 |
9888.100 |
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Profit/(Loss) Before Tax |
(1791.220) |
472.600 |
489.000 |
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Provision for Taxation |
(602.427) |
81.400 |
141.500 |
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Profit/(Loss) After Tax |
(1188.793) |
391.200 |
347.500 |
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Earnings in Foreign Currency : |
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Traveling Expenses |
0.566 |
0.415 |
NA |
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Book
and Periodical |
NA |
0.020 |
NA |
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Commission Earnings |
3.536 |
1.953 |
NA |
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GDR Listing Fees |
NA |
0.720 |
NA |
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Bank Charges |
NA |
0.027 |
NA |
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Total Earnings |
4.102 |
3.135 |
NA |
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Imports : |
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Raw Materials |
1082.954 |
2862.730 |
NA |
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Stores & Spares |
25.712 |
8.059 |
NA |
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Capital Goods |
15.974 |
30.728 |
NA |
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Total Imports |
1124.640 |
2901.517 |
NA |
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Export Value |
1635.989 |
5672.725 |
NA |
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Expenditures : |
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Raw Materials |
7039.341 |
9518.000 |
6212.500 |
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Stock Adjustments |
457.915 |
(194.200) |
(212.500) |
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Excise Duty |
0.000 |
1148.300 |
1256.300 |
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Power and Fuel Cost |
0.000 |
787.900 |
648.000 |
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Other Manufacturing Expenses |
2587.324 |
939.700 |
637.300 |
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Employee Cost |
0.000 |
117.000 |
112.100 |
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Selling and Administration Expenses |
0.000 |
391.700 |
257.300 |
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Miscellaneous Expenses |
0.000 |
20.800 |
6.800 |
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Interest and Financial Charges |
522.921 |
407.000 |
305.300 |
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Depreciation |
317.463 |
218.000 |
176.000 |
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Total Expenditure |
10924.964 |
13354.200 |
9399.100 |
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QUARTERLY /
RESULTS
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PARTICULARS |
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30.06.2008 (1st
Quarter) |
30.09.2008 (2nd
Quarter) |
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Sales Turnover |
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2157.900 |
2305.100 |
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Other Income |
|
07.100 |
(43.400) |
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Total Income |
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2165.000 |
2261.700 |
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Total Expenditure |
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2305.700 |
2387.800 |
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Operating Profit |
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(140.700) |
(126.100) |
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Interest |
|
160.600 |
149.100 |
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Gross Profit |
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(301.300) |
(275.200) |
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Depreciation |
|
84.300 |
87.300 |
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Tax |
|
00.200 |
00.300 |
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Reported PAT |
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(328.500) |
(331.500) |
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PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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Debt-Equity
Ratio |
2.72 |
1.75 |
1.67 |
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Long
Term Debt-Equity Ratio |
2.24 |
1.36 |
1.16 |
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Current
Ratio |
1.47 |
1.30 |
1.25 |
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TURNOVER
RATIOS |
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Fixed
Assets |
2.36 |
3.77 |
3.35 |
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Inventory |
5.52 |
6.96 |
5.67 |
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Debtors |
18.32 |
15.83 |
13.67 |
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Interest
Cover Ratio |
(2.06) |
2.16 |
2.60 |
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Operating
Profit Margin(%) |
(8.93) |
8.05 |
10.13 |
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Profit
Before Interest And Tax Margin(%) |
(12.09) |
6.45 |
8.29 |
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Cash
Profit Margin(%) |
(8.82) |
4.47 |
5.46 |
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Adjusted
Net Profit Margin(%) |
(11.97) |
2.87 |
3.63 |
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Return
On Capital Employed(%) |
(17.20) |
14.61 |
17.48 |
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Return
On Net Worth(%) |
(63.21) |
17.86 |
20.38 |
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 and Industrial Gases Limited was amalgamated with the company and accordingly 20 equity shares of the company were issued and allotted to Shah Steel and 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 and Industrial Gases Limited.
Directors Report
Operational
review:
The company has posted turnover of Rs. 10160.300 Millions for the year ending
on 31.3.2008 as against the total turnover of Rs.13655.800 millions for the
corresponding previous year showing a reduction of about 25.60%. The main
reasons for reduction in the turnover is due to reduction in Nickel price
resulting reduction in lower realisability, cancellation of substantial orders
from the overseas customers particularly from China due to reduction in the
nickel price and accordingly change of the product mix by the company from S.S.
Products to M.S. Products.
The company was consistently profit making till the financial year 2006-07 and
for the first time, the company has incurred losses. The main reason for
incurring losses includes reduction in the nickel price resulted in reduction
in the value of stock, cancellation of orders and return of L/Cs resulted in
lower realization, change in the product mix from S.S. to M.S.
Resulted in lower contribution as well as continuation of fixed over heads during transition period has further added fuel in fire. Not only this, the increase in the furnace oil price has also contributed negatively to the bottom-line of the company.
Operational and Financial
Restructuring:
Considering the need of the day and also considering the fact that S.S. 200 series
has contributed negatively to the bottom-line of the company and accordingly
the management has made various operational and financial restructuring. Thus,
the company has switched over immediately from S.S.
Products to M.S. products for temporary period and thereafter systematically, the Management has decided to also transfer certain value added products in the S.S.300 series. The company is also planning to install coal based Captive Power Plant, so as to reduce the power cost in the long term.
Due to the cancellation of export L/C opened by the customers as well as
reduction in the nickel price resulting into lower value of stock and losses
incurred by the company, has created temporary liquidity crunch.
Practically, the company has immediately approached the
Corporate Debt Restructuring (CDR) Cell through the lead bank, Union Bank of
MANAGEMENT DISCUSSION
AND ANALYSIS:
Global Scenario Productions:
In 2007 the World Crude Steel output reached 1343.5 million metric tons and
showed a growth of 7.5% over the previous year. It is the fifth consecutive
year that world crude steel production grew by more than 7%. (Source:
IISI)
The International Iron and Steel Institute (IISI) in its forecast for 2008 has
predicted that 2008 will be another strong year for the steel industry with
apparent steel use rising from 1,202 million metric tonnes in 2007 to 1,282
million metric tonnes in 2008 i.e. by 6.7%. Further, the BRIC (
Domestic Scenario:
The Indian steel industry have entered into a new development stage from
2005-06, riding high on the resurgent economy and rising demand for steel.
Rapid rise in production has resulted in
It has been estimated by certain major investment houses, such as Credit Suisse
that,
The National Steel Policy has envisaged steel production to reach 110 million
tonnes by 2019-20. However, based on the assessment of the current ongoing
projects, both in
The Government also took various fiscal and other measures for stabilizing the
steel prices like exempting pig iron, non alloy steel and steel making inputs
like zinc, ferro-alloys and metcoke from customs duty; withdrawing DEPB
benefits on export of various categories of steel products and bringing back
railway freight on iron ore from
Classification 180 to 170 for domestic steel producers.
In May 2008, the Government imposed 15% export duty on
semi-finished products, and hot rolled coils/sheet, 10% export duty on cold
rolled coils/sheets and pipes and tubes and 5% export duty on galvanized steel
in coil/sheet form in order to further curtail rising prices and increase
supply of steel in the domestic market.
OPPORTUNITIES AND THREATS:
The demand for stainless steel is set to increase because of the growth in
Industrial construction, infrastructure projects, sky rail / roads and
expansion of railways, Air Ports, Sea Ports and undergrounds metro
railway.Indian economy is expected to grow at more than 8 %, which will propel
the demand of steel. The demand for s s products too has been on the rise. The
product is largely used in construction industry, engineering, pharma,
automobiles etc. All these sectors are poised for good growth in future.
Increasing steel production in
The steel industry has been highly volatile and cyclic in nature. The current
boom is because of increased consumption in
The Company has to sustain in the highly competitive market with good quality
and efficient / cost effective production of steel.
OVER VIEW OF THE COMPANY:
The Company posted turnover of Rs. 10160.311 millions for the financial year
ended March 31, 2008 against Rs. 13655.786 millions for the previous year ended
March 31, 2007.
During the year Company has incurred losses; however, which is likely to be
reduced in the subsequent years because of more focus on the value added SS
products and lower MS production. The future of world steel industry looks very
bright. For
FUTURE OUT LOOK:
According to International Iron and Steel Institute (IISI), the world steel
market would be 1482 million tons by 2015. As ERIC countries are growing with a
tremendous growth rate which contributes more than 40% of global steel demand,
the future of world steel industry looks very bright. For
In past their average growth rate has consistently stayed at more than 25%.
Given the positive economic climate and sound fundamentals, the industry is
poised for a big leap forward. The company is poised to achieve substantial
growth in the coming years.
STRATEGY OF THE COMPANY:
Although S.S. segment broadly falls within the ambit of steel industry. In
fact, from a usage perspective, stainless steel is considered to be a much
superior product in terms of its property, quality and characteristics of the
metal as well as specialized metallurgy/ engineering involved in the
process.
The advanced countries of the world like
Further, with infrastructure growth attaining huge momentum in
In order to maintain the profitability, the Company has decide to produce more
of SS 300 series in the proposed product mix. The higher marketability of SS
300 series products needs to be seen at least from the demand side and from
market penetration angle.
The company is planning to install the coal based captive power plant to meet
the internal power requirement at low cost. It is envisaged in the scheme that
the SPV will be created to finance the power project and will commence power
generation from April, 2010. In the mean time, the company has initiated the
process for establishment of gasifier project to replace furnace oil from
reheating furnace .The benefit will start pouring in from end of this year.
This will substantially reduce the cost of manufacturing and improve the
quality of the products.
Miscellaneous Expenditure
Due to heavy loss suffered by the company, it has faced severe liquidity
crisis, resulted in default in honoring commitment towards letter of credit
(L/C), payment towards interest and installment to bank and financial
institutions as well as debenture holders.
The company has approached to Corporate Debt Restructuring (CDR) Cell
through their lead bank, Union Bank of
a) All the amount by way of interest and principal amounting to Rs 98.988
millions due upto 30.9.2007 (up to cut off date i.e.30.9.2007)
are to be paid. The same has been paid by the company except Interest to
Debenture holder amounting to Rs. 38.599 millions
b) Letter of Credit (L/C facility) is enjoyed by the company were devolved
during the for interim period and accordingly L/C facilities to the extent of
Rs.2000.000 millions were converted into working capital term loan (WCTL) which
shall have the moratorium period of two years. The said WCTL shall be paid in
32 equal quarterly installments commencing from 1.10.2009 carrying interest at
10% per annum.
c) The existing term loan including unsecured short term loan /corporate
loan shall be rescheduled and shall have the moratorium of two years commencing
from 30.9.2007 and thereafter the same shall be paid in 32 equal quarterly
installments carrying interest at contracted rate of 10% per annum, whichever
is lower.
The Company, in September 2006, had raised US $ 10 million through
Unsecured Zero Coupon Foreign Currency Convertible Bonds (FCCB), due in 2011.On
full conversion of FCCB, the FCCB will be converted in to 26,41,143 Equity
shares of Rs 10 each at a premium of Rs 165 per share, at the option of the
Bondholders at any time before the maturity of the bonds, on Conversion.
Capital will increase by Rs. 26.400 millions and Share Premium shall increase by Rs
435.800 millions If Bonds are not
converted, the company will have to repay the bonds at a premium and in US
Dollars. The company has provided the premium for this year, which has been
adjusted against Security Premium in accordance with Section 78 of Companies Act, 1956.
FIXED ASSETS
Ř
Ř
Ř
Office/ Resi. Building
Ř
Plant And Machinery
Ř
Laboratory Equipments
Ř
Office Equipments
Ř
Furniture And Fixtures
Ř
Vehicles
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.
COMPANY PROFILE
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.
CUSTOMER SERVICES
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.
QUALITY ASSURANCE
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 and 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 and 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.50.03 |
|
|
1 |
Rs.74.42 |
|
Euro |
1 |
Rs.62.71 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
2 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
33 |
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 |
|