MIRA
INFORM REPORT
|
Report Date : |
05.01.2013 |
IDENTIFICATION DETAILS
|
Name : |
SHAH ALLOYS LIMITED |
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Registered
Office : |
5/1, Shreeji House, 5th Floor M J Library , |
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Country : |
India |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
23.11.1990 |
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Com. Reg. No.: |
04-014698 |
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Capital
Investment / Paid-up Capital : |
Rs.197.975 Millions |
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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 Share are Listed on
the Stock Exchange. |
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Line of Business
: |
Manufacturing of
Alloy Steel Products. |
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|
No. of Employees
: |
Information declined by management |
RATING & COMMENTS
|
MIRA’s Rating : |
C |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
Status : |
Sick Company |
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Payment Behaviour : |
Delayed |
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Litigation : |
Exist |
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Comments : |
Subject is been reffere to BIFR, Company is a sick company. Its
networth has been erroded. Payment are reported to be slow and delayed. The company can be considered for business dealing on safe and secured
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces
of its past autarkic policies remain. Economic liberalization, including
industrial deregulation, privatization of state-owned enterprises, and reduced
controls on foreign trade and investment, began in the early 1990s and has
served to accelerate the country's growth, which has averaged more than 7% per
year since 1997. India's diverse economy encompasses traditional village
farming, modern agriculture, handicrafts, a wide range of modern industries,
and a multitude of services. Slightly more than half of the work force is in
agriculture, but services are the major source of economic growth, accounting
for more than half of India's output, with only one-third of its labor force.
India has capitalized on its large educated English-speaking population to become
a major exporter of information technology services and software workers. In
2010, the Indian economy rebounded robustly from the global financial crisis -
in large part because of strong domestic demand - and growth exceeded 8%
year-on-year in real terms. However, India's economic growth in 2011 slowed
because of persistently high inflation and interest rates and little progress
on economic reforms. High international crude prices have exacerbated the
government's fuel subsidy expenditures contributing to a higher fiscal deficit,
and a worsening current account deficit. Little economic reform took place in
2011 largely due to corruption scandals that have slowed legislative work.
India's medium-term growth outlook is positive due to a young population and
corresponding low dependency ratio, healthy savings and investment rates, and
increasing integration into the global economy. India has many long-term
challenges that it has not yet fully addressed, including widespread poverty,
inadequate physical and social infrastructure, limited non-agricultural
employment opportunities, scarce access to quality basic and higher education,
and accommodating rural-to-urban migration.
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
D (Long term facilities) |
|
Rating Explanation |
This rating are in default or are expected to be in default soon. |
|
Date |
January, 2010 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DECLINED BY
|
Name : |
Mr. Gaurav Moktali |
|
Designation : |
Finance Department |
|
Contact No.: |
91-2764-661100 |
|
Date : |
04.01.2013 |
LOCATIONS
|
Registered Office : |
5/1, Shreeji House B/h. M.J.
Library, |
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Tel. No.: |
Not Available |
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Fax No.: |
Not Available |
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E-Mail : |
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Corporate Office/Factory : |
Block No. 2221, Sola-Kalol Road, Santej, Taluka Kalol, District Gandhinagar-382721,
Gujarat, India |
|
Tel. No.: |
91-2764-661100 |
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E-Mail : |
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Stainless steel Coil/plate/sheet division |
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|
Alloy steel Coil/plate/sheet division |
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|
Carbon/mild steel Coil/plate/sheet division |
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|
stainless/Alloy steel rounds division |
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Stainless steel flat bars division |
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Armour Steel Division |
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North America & South America |
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Middle East & Africa |
DIRECTORS
As on 31.03.2012
|
Name : |
Mr. Rajendra V. Shah |
|
Designation : |
Chairman |
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|
Name : |
Mr. K |
|
Designation : |
Jt. Managing Director |
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|
Name : |
Mr. M.P Desai |
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Designation : |
Executive Director - Works |
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|
Name : |
Mr. Ashok Sharma |
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Designation : |
Whole Time Director |
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Name : |
Mr. G M Shaikh |
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Designation : |
Director |
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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 |
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Name : |
Mr. Tejpal S Shah |
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Designation : |
Director |
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|
Name : |
Mr. Bhaskar Ghosh |
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Designation : |
Director |
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Name : |
Mr. O P Dua |
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Designation : |
Nominee Director - UBI |
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|
Name : |
Mr. M.B.Kaul |
|
Designation : |
Nominee Director-IDBI Bank |
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|
Name : |
Mr. Arakhita Khandual |
|
Designation : |
Nominee Director-IDBI Bank |
KEY EXECUTIVES
|
Name : |
Mr. Gaurav Moktali |
|
Designation : |
Finance Department |
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|
|
|
Name : |
Mr. Vinod Kumar Shah |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2012
|
Category
of Shareholder |
No. of Shares |
Percentage of
Holding |
|
|
|
|
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
10729246 |
54.19 |
|
|
10729246 |
54.19 |
|
|
|
|
|
Total shareholding
of Promoter and Promoter Group (A) |
10729246 |
54.19 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
1746624 |
8.82 |
|
|
1746624 |
8.82 |
|
|
|
|
|
|
2880360 |
14.55 |
|
|
|
|
|
|
3630036 |
18.34 |
|
|
682616 |
3.45 |
|
|
128658 |
0.65 |
|
|
127506 |
0.64 |
|
|
200 |
0.00 |
|
|
952 |
0.00 |
|
|
7321670 |
36.98 |
|
Total Public
shareholding (B) |
9068294 |
45.81 |
|
Total (A)+(B) |
19797540 |
100.00 |
|
(C) Shares held
by Custodians and against which Depository Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total
(A)+(B)+(C) |
19797540 |
100.00 |
Shareholding of securities (including shares, warrants,
convertible securities) of persons belonging to the category Promoter and
Promoter Group
|
Name
of the Shareholder |
No. of Shares |
Percentage of
Holding |
|
Rajendra V Shah |
79,12,404 |
39.97 |
|
Rajendra V Shah HUF |
15,31,960 |
7.74 |
|
Ragini R Shah |
11,46,006 |
5.79 |
|
Prakash V Shah |
47,000 |
0.24 |
|
Karan R Shah |
40,000 |
0.20 |
|
Jayesh V Shah |
29,936 |
0.15 |
|
Ashwin V Shah |
21,940 |
0.11 |
|
Total |
1,07,29,246 |
54.19 |
Shareholding of securities (including shares, warrants,
convertible securities) of persons belonging to the category Public and holding
more than 1% of the total number of shares
|
Name
of the Shareholder |
No. of Shares |
Percentage of
Holding |
|
Gujarat NRE Coke Limited |
969769 |
4.90 |
|
Satellite Mercantiles Private Limited |
901361 |
4.55 |
|
United India Insurance Company Limited |
878577 |
4.44 |
|
General Insurance Corporation of India
Limited |
868047 |
4.38 |
|
Saharsh Yarn Private Limited |
393743 |
1.99 |
|
Total |
4011497 |
20.26 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of
Alloy Steel Products. |
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Products : |
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PRODUCTION STATUS (As on 31.03.2011)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
S .S. Flats, Bars& Castings, Hot Rolled M.S. Plates, S.S.HR Coil |
MT |
NA |
300000 |
NA |
|
FINISHED GOODS |
|
|
|
|
|
Bars, Beams, Angles & wire rods |
MT |
NA |
NA |
6361.532 |
|
S.S. Flats |
MT |
NA |
NA |
19577.526 |
|
M.S. / S.S. Plates |
MT |
NA |
NA |
53977.122 |
|
S.S. HR / CR Coil |
MT |
NA |
NA |
28592.127 |
|
SEMI-FINISHED GOODS |
MT |
NA |
NA |
|
|
S.S.Slab, Billets,Blooms, Ingots,etc |
MT |
NA |
NA |
784.827 |
Note: Production indicates Net Saleable Quantity
The above production does not include Job work Production for the current
Financial year - 448.625 MT. Previous year - 9430.919 MT.
GENERAL INFORMATION
|
No. of Employees : |
Information declined by management |
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Bankers : |
·
Union Bank of ·
State Bank of ·
Bank of · Punjab National Bank · IDBI Bank Limited ·
Bank of ·
Axis Bank Limited |
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Facilities : |
Note Nature of
security and terms of repayment for secured borrowings Non Convertible
Debentures First Mortgage
and charge on the company’s all immovable and movable properties (other than
working capital assets), both present and future, ranking pari-passu with all
term lenders. Second charges on Working Capital assets of the company. Pledge
of promoter’s entire shareholding ranking pari passu with all Corporate Debts
Restructuring lenders. Unconditional and irrevocable personal guarantee of
the promoter-director Shri Rajendra Shah. Non Convertible Debentures is repayable in equal monthly installment
starting from June 2011 till May 2019. Maturity profile of Non Convertible Debentures are as set out below :
Period and
Amount of default as on the Balance sheet During the year
2011-12 as per the terms of the CDR, Principal amount of Non Convertible
Debentures were due for repayment amounting Rs. 104.167 millions and Interest
amounting to Rs. 81.890 millions However the company has defaulted in
repayment of Principal amount as well as the interest on the same. The
default is subsisting for a period from 91-366 days. Term Loan from
Bank / Financial Institution: First Mortgage
and charge on the company’s all immovable and movable properties (other then
working capital assets), both present and future, ranking pari-passu with all
term lenders.(except Punjab National Bank’s Corporate loan which has
exclusive charge on 26,00,000 shares of Shah Alloys Limited. Thus First
charge on fixed assets is not extended to Punjab national bank over the
Corporate loan) Second charges on WC assets of the company. Pledge of
promoter’s entire shareholding ranking pari passu with all CDR lenders except
for 26,00,000 shares on which Punjab national bank has exclusive charge .
Unconditional and irrevocable personal guarantee of the promoter-director
Shri Rajendra Shah. Term Loan is
repayable in equal monthly installment starting from June 2011 till May 2019. Terms of repayment for term loans are as set out below : (Rs. in
millions)
b) Period and Amount of default as on the Balance sheet The company has made a default in repayment as follows:
* Including default of 2010-11 amounting to Rs. 43.163 millions Loan from
Directors Loans from Director are interest free. The amount of loan is repayable
after a period of 1 year from the date of Balance Sheet. Nature of security and terms of repayment for secured borrowings Cash Credit Facilities Hypothecation
first charges on company’s entire stocks of raw material, stock in progress,
finished goods, book debts/receivables and all current assets stored in the
company’s factory premises, at all plants and / or elsewhere including those
in transit covered by documents of title thereto, local and export usance
bill ranking pari-passu in favor of all the working capital banks. Second
charge on the entire movable and immovable assets both present and future on
pari-passu basis. Pledge of promoter’s entire shareholding ranking pari-passu
with all CDR lenders. Unconditional and irrevocable personal guarantee of the
promoter-director Shri Rajendra Shah. Period and Amount of default as on the Balance sheet
* Including default of 2010-11 amounting to RS. 226.994 millions |
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Banking
Relations : |
-- |
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|
|
|
Auditors : |
|
|
Name : |
Talati and Talati Chartered Accountants |
|
Address : |
Ambica Chambers Nr. Old High Court Navrangpura Ahmedabad – 380 009, |
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|
Associates : |
SAL Steel Limited |
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|
Enterprise with
significant influence : |
·
SAL Pharmacy (A Division of SAL Corporation
Private Limited) ·
Adarsh Foundation ·
SAL Hospital and Medical Institute (A Division of
SAL Care Private Limited) ·
Kesar SAL Hospital (A Division of Adarsh
Foundation) |
CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
35000000 |
Equity Shares |
Rs.10/- each |
Rs. 350.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
19797540 |
Equity Shares |
Rs.10/- each |
Rs. 197.975 Millions |
|
|
|
|
|
Reconciliation of
Number of Shares:
|
|
31.03.2012 |
|
|
Equity Shares: |
Number of Shares |
Rs. in millions |
|
Shares outstanding at the beginning of the year Changes during the year |
19797540 |
197.975 |
|
Shares outstanding at the end of the year |
19797540 |
197.975 |
Rights, Preferences
and restrictions attached to shares
Equity Shares
The company has one class of equity share having a par value of Rs. 10 each. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of directors is subject to the approval of shareholders in the ensuing Annual general meeting, except in case of interim dividend. In the case of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding.
Details of Shares
held by Shareholders holding more than 5% in the Company
|
Name of the
Shareholder |
31.03.2012 |
|
|
|
No. of Shares held |
Percentage of Shares held |
|
Mr. Rajendra V. Shah # |
94 44 364 |
47.71% |
|
Mrs. Ragini R. Shah |
11 46 006 |
5.79% |
# including 7.74 % shares held as Karta
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
197.975 |
197.975 |
197.975 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
(3637.484) |
(1979.273) |
741.253 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
(1377.136) |
|
|
NETWORTH |
(3439.509) |
(1781.298) |
(437.908) |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
7806.620 |
8296.842 |
7162.358 |
|
|
2] Unsecured Loans |
118.622 |
86.122 |
954.812 |
|
|
TOTAL BORROWING |
7925.242 |
8382.964 |
8117.170 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
4485.733 |
6601.666 |
7679.262 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
2761.476 |
3079.766 |
3402.488 |
|
|
Capital work-in-progress |
183.184 |
183.184 |
170.594 |
|
|
|
|
|
|
|
|
INVESTMENT |
399.506 |
399.506 |
399.506 |
|
|
DEFERRED TAX ASSETS |
2374.532 |
1589.329 |
1037.187 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1297.891
|
2093.424 |
2213.454 |
|
|
Sundry Debtors |
1096.652
|
983.230 |
973.800 |
|
|
Cash & Bank Balances |
30.796
|
27.953 |
107.139 |
|
|
Other Current Assets |
0.152
|
0.149 |
7.683 |
|
|
Loans & Advances |
1155.955
|
1171.542 |
1252.304 |
|
Total
Current Assets |
3581.446
|
4276.298 |
4554.380 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1270.340
|
649.639 |
1584.853 |
|
|
Other Current Liabilities |
3496.881
|
2246.082 |
280.522 |
|
|
Provisions |
47.190
|
30.696 |
21.143 |
|
Total
Current Liabilities |
4814.411
|
2926.417 |
1886.518 |
|
|
Net Current Assets |
(1232.965)
|
1349.881 |
2667.862 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
1.625 |
|
|
|
|
|
|
|
|
TOTAL |
4485.733 |
6601.666 |
7679.262 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
7578.080 |
7517.156 |
7780.665 |
|
|
|
Other Income |
31.915 |
26.762 |
122.814 |
|
|
|
TOTAL (A) |
7609.995 |
7543.918 |
7903.479 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
5039.219 |
|
7685.312 |
|
|
|
Purchases of Stock-in-Trade |
81.282 |
105.534 |
|
|
|
|
Changes in inventories of finished goods, work-in-progress and
stock-in-trade. |
650.169 |
80.518 |
|
|
|
|
Employee benefits expense |
265.607 |
287.316 |
|
|
|
|
Other Expenses |
2731.583 |
2387.340 |
|
|
|
|
Prior Period Items |
0.896 |
39.230 |
|
|
|
|
TOTAL (B) |
8768.756 |
8190.255 |
7685.312 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(1158.761) |
(646.337) |
(218.167) |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
922.232 |
871.926 |
731.247 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(2080.993) |
(1518.263) |
(513.080) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
317.393 |
322.753 |
336.487 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
(2398.386) |
(1841.016) |
(849.567) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(784.631) |
(544.161) |
(246.324) |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
(1613.755) |
(1296.855) |
(603.243) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(2673.991) |
(1377.136) |
(773.893) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED TO
THE B/S |
(4287.746) |
(2673.991) |
(1377.136) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
351.355 |
179.846 |
323.770 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
31.960 |
155.340 |
437.861 |
|
|
|
Stores & Spares |
42.460 |
52.808 |
131.213 |
|
|
TOTAL IMPORTS |
74.420 |
208.148 |
569.074 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(81.51) |
(65.51) |
(30.47) |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2012 |
30.09.2012 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
1404.300 |
1442.800 |
|
Total Expenditure |
|
1660.700 |
1501.100 |
|
PBIDT (Excl OI) |
|
(256.400) |
(58.300) |
|
Other Income |
|
1.900 |
0.000 |
|
Operating Profit |
|
(254.500) |
(58.300) |
|
Interest |
|
231.600 |
232.800 |
|
Exceptional Items |
|
0.000 |
0.000 |
|
PBDT |
|
(486.100) |
(291.100) |
|
Depreciation |
|
76.500 |
76.400 |
|
Profit Before Tax |
|
(562.600) |
(367.500) |
|
Tax |
|
(182.000) |
(118.200) |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
(380.600) |
(249.300) |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
(380.600) |
(249.300) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
(21.21)
|
(17.19) |
(7.63) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(31.65)
|
(24.49) |
(10.92) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(37.81)
|
(25.03) |
(10.68) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.70
|
1.03 |
1.94 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
(3.70)
|
(6.35) |
(22.84) |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.74
|
1.46 |
2.41 |
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS
DETAILS:
|
Particulars |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
(Rs. In Millions) |
||
|
Due to Micro, Small and Medium
Enterprises |
0.000 |
0.000 |
0.000 |
|
Other than Micro, Small and Medium
Enterprises |
1270.340
|
649.639 |
1584.853 |
|
Total |
1270.340
|
649.639 |
1584.853 |
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
----- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm
/ promoter involved in |
Yes |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
----- |
|
26] |
Buyer visit details |
----- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
No |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
LITIGATION DETAILS
|
HIGH COURT OF
GUJARAT CIVIL
APPLICATION No. 62 of 2012 In TAX APPEAL/
2092/ 2010 |
||||||||||||||||||
|
Status: PENDING
(Converted from:
ST/297/2012) CCIN
No:001073201200062 Last Listing Date: 20/04/2012 Coram: HONOURABLE
MR. JUSTICE AKIL KURESHI
HONOURABLE MS JUSTICE SONIA GOKANI |
||||||||||||||||||
|
S.NO. |
Name of the
Petitioner |
Advocate On
Record |
||||||||||||||||
|
1 |
COMMISIONER OF INCOME TAX - IV |
MRS MAUNA M BHATT for: Applicant(s) 1 |
||||||||||||||||
|
S.NO. |
Name of the
Respondant |
Advocate On
Record |
||||||||||||||||
|
1 |
SHAH ALLOYS LIMITED |
MRS SWATI SOPARKAR for :Respondent(s) 1 |
||||||||||||||||
|
Presented On : 13/02/2012 Registered
On : 22/02/2012 Bench Category : DIVISION BENCH District : AHMEDABAD Case Originated From: THROUGH ADVOCATE Listed : 5 times Stage Name : FOR HEARING – AT 2:30 P.M.
Classification DB – CIVIL MISC.
APPLICATION – CODE OF CIVIL PROCEDURE, 1908 – REVIEW – MODIFICATION /
DIRECTION / EXTENSION OF TIME / CLARIFICATION Act INCOME-TAX ACT, 1961 |
||||||||||||||||||
|
Office Details |
||||||||||||||||||
|
S. No |
Filing Date |
Document Name |
Advocate Name |
Court Fee on
Document |
Document Details |
|||||||||||||
|
1 |
13.02.2012 |
APPLICATION |
MRS. MAUNA BHATT ADVOCATE for PETITIONER (s) 1 |
20 |
MRS MAUNA M BHATT:1 |
|||||||||||||
|
2 |
15/08/2012 |
VAKALATNAMA |
MRS SWATI SOPARKAR ADVOCATE for RESPONDENTS(s) 1 |
- |
MRS SWATI SOPARKAR:1 |
|||||||||||||
|
Linked Matters |
||||||||||||||||||
|
S. No. |
Case Detail |
Status Name |
Disposal Date |
Action/Coram |
||||||||||||||
|
1 |
TAX APPEAL/2092/2010 |
PENDING |
- |
·
HONOURABLE MR.JUSTICE AKIL KURESHI ·
HONOURABLE MS JUSTICE SONIA GOKANI |
||||||||||||||
|
Court
Proceedings |
||||||||||||||||||
|
S. No. |
Notified Date |
Court Code |
Board Sr. No. |
Stage |
Action |
Coram |
||||||||||||
|
1 |
20/04/2012 |
51 |
- |
FOR HEARING – AT 2:30 P.M. |
NEXT DATE |
·
HONOURABLE MR.JUSTICE AKIL KURESHI ·
HONOURABLE MR.JUSTICE SONIA GOKANI |
||||||||||||
|
Available Orders |
||||||||||||||||||
|
S. No. |
Case Details |
Judge Name |
Order Date |
CAV |
Judgement |
View Download |
||||||||||||
|
1 |
CIVIL APPLICATION/62/2012 |
·
HONOURABLE THE ACTING CHIEF JUSTICE MR. BHASKAR
BHATTACHARYA ·
HONOURABLE MR. JUSTICE J.B. PARDIWALA |
09/04/2012 |
N |
N |
View Download |
||||||||||||
PERFORMANCE
Members are aware that due to the status of Sick industry, Company has
been facing financial crunch and as such manufacturing capacity was very much
underutilized. However, due to all round efforts Company could maintain
turnover near to the figures of last year. Total Income for the year ended 31st
March, 2012 amounted to Rs. 7610.000 millions as against Rs. 7543.900 millions
for the year ended 31st March, 2011. Apart from the financial crisis,
operations of the company are still influenced due to higher raw material
prices, escalating fuel prices, higher inflationary conditions, lower margin
realization and competition. Introduction of some good product mix and greater
attention on the high value premium products have helped the Company to realize
better margin in some areas.
MANAGEMENT
DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE
AND DEVELOPMENTS
Indian steel industry plays a significant role in the country’s economic
growth. The major contribution directs the attention that steel is having a
stronghold in the traditional sectors, such as infrastructure &
constructions, automobile, transportation, industrial applications, Railways
etc. Moreover, steel variant stainless steel is finding innovative applications
due to its corrosion resistive property. India is the fifth largest steel
producer at the global front. The Indian steel sector has grown significantly
during the last decade, registering strong demand in the last five years. As
the economy develops further, steel consumption is likely to increase. Indian
steelmakers have plans to expand capacity substantially in order to meet the
anticipated increase in demand. India has relatively large reserves of iron ore
and is likely to remain self-sufficient in its supply of iron ore for the
foreseeable future. In contrast, Indian steelmakers rely heavily on imports for
their coking coal needs.
According to the provisional data released by World Steel Association
(WSA), India with a production of 72.2 MT was the 4 highest Global Producer of
crude steel in the year 2011.
The Working Group for Steel for the 12th Plan period has estimated that
India’s domestic Steel Demand will grow at an average annual rate of 10.3
percent during the next five years (2012-2017).
The Global Steel Industry witnessed sound growth during 2010 and 2011.
This growth is mainly attributed to increase in demand from key steel end-user
industries like infrastructure, construction and automotive in the emerging
markets. The year 2011 began with a positive outlook as a fear of a recession
was declined. Despite a good start to 2011, the global economy entered an
uneven and uncertain territory in the second half of the year. Global
industrial activity has weakened and confidence has fallen on account of
financial turbulence in the Eurozone, weak private demand in the United States,
and events in Japan and the Middle East. Emerging markets like India, Brazil,
China etc. are also affected by the current economic slowdown, particularly
where reliance on export income from developed markets is concerned. Inflation
is also an issue in many emerging markets.
COMPANY’S
PERFORMANCE AND HIGHLIGHTS
Due to financial constraints, this year also, Company could not do well.
Since the Company is declared sick industry, it has become very difficult to
arrange financial arrangements. However, with all round efforts, Company is
able to maintain its sales figure during the year
under review. Further performance of the company largely depends of the
DRS that may be submitted by the Operating Agency to Hon’ble BIFR. Due to
increased burden of interest and high cost of raw material, the loss of the
company has been increased.
Amidst adverse factors, there is a good news, Company has been allowed
for purchase of power from open market. This will facilitate company to reduce
cost of power in future.
FUTURE OUTLOOK
The outlook for 2012 remains cautious. Global steel industry
is expected to grow in 2012, although at a lower rate. Global Steel Production
is expected to be at around 6.7% in 2012 and expected to grow at a CAGR of 2.6%
by 2015.
On the other hand, according to the World Steel Association,
Global Steel Consumption is estimated to increase by 5% (approx) in 2012,
compared to increase of 6% in 2011.
Steel demand will vary depending on the outlook for different
regions and countries. Steel demand in developed regions such as the North
America and Europe is forecast to be lower, but stronger eco economic growth in
China, India, Brazil, Russia and South Korea indicate the likelihood of
stronger steel demand from these regions.
Fitch Ratings says that despite the risk of a slowdown in
the growth of domestic steel demand, the outlook for the Indian Steel Producers
will remain stable in 2012. Steel demand has a high correlation with growth in
GDP, which is showing signs of a slowdown mainly because of higher prevailing
domestic interest rates and a weaker global economy. Profitability margins of
most Indian steel producers came under pressure in H1 FY12 due to increases in
input costs led by a disruption in coking coal supply. While raw material cost
pressures may ease in the coming months, reduced steel demand is likely to
constrain steel prices, putting pressure on margins.
The rising interest rate scenario in the country could
increase the overall cost of funding new projects. The domestic steel industry
mayalso suffer from overcapacity in the medium to long term. Steel producers
would have to focus on exports to maintain their operating
rates at profitable levels which seem to be a challenging
proposition given the current slowdown in the developed world.
In the midst of uncertainty, future of the Company largely
depends on the Rehabilitation Scheme which is yet to be sanctioned. In the
meantime, Company expects better performance on account of measures being taken
to reduce the power cost and increase in margins by improving its product mix.
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30™ SEPTEMBER, 2012
(Rs. in millions)
|
|
Particulars |
QUARTER ENDED |
HALF YEAR ENDED |
||
|
|
|
30.09.2012 |
30.06.2012 |
30.09.2012 |
|
|
|
|
Unaudited) |
Unaudited) |
Unaudited) |
|
|
1 |
Income from Operations |
|
|
|
|
|
|
(a) Net Sales/Income from Operations (Net of excise duty) |
1435.000 |
1394.900 |
2829.900 |
|
|
|
(b) Other Operating Income |
7.800 |
09.400 |
17.200 |
|
|
|
Total Income from Operations (a)+(b) |
1442.800 |
1404.300 |
2847.100 |
|
|
2 |
Expenditure |
|
|
|
|
|
|
(a) Cost of materials consumed |
949.400 |
1039.300 |
1988.700 |
|
|
|
(b) Purchases of stock-in-trade |
|
|
|
|
|
|
(c) Changes in inventories of finished goods, |
|
|
|
|
|
|
work-in-progress and stock-in-trade |
(9.400) |
(41.000) |
(50.400) |
|
|
|
(d) Employee benefits expense |
65.900 |
63.900 |
129.800 |
|
|
|
(e) Depreciation and amortisation expense |
76.400 |
76.500 |
152.900 |
|
|
|
(f) Consumption of Stores & Spares |
254.600 |
276.300 |
530.900 |
|
|
|
(g) Power cost |
174.100 |
231.200 |
405.300 |
|
|
|
(h) Other Expenditure |
66.500 |
91.000 |
157.000 |
|
|
|
Total Expenditure (a) to (h) |
1577.500 |
1737.200 |
3314.200 |
|
|
3 |
Profit / (Loss) from operations before other income, |
(134.700) |
(332.900) |
(467.100) |
|
|
|
finance costs and exceptional item ( 1-2 ) |
|
|
|
|
|
4 |
Other income |
|
1.900 |
1.400 |
|
|
5 |
Profit / (Loss) from ordinary activities |
(134.700) |
(331.000) |
(465.700) |
|
|
|
before finance costs and exceptional items ( 3+4 ) |
|
|
|
|
|
6 |
Finance costs |
232.800 |
231.600 |
464.400 |
|
|
7 |
Profit / (Loss) from ordinary activities after |
(367.500) |
(562.600) |
(930.100) |
|
|
|
finance costs but before exceptional items ( 5-6 ) |
|
|
|
|
|
8 |
Exceptional items |
|
|
|
|
|
9 |
Profit / (Loss) from ordinary activities before tax ( 7-8 ) |
(367.500) |
(562.600) |
(930.100) |
|
|
10 |
Tax expense |
(118.200) |
(182.000) |
(300.200) |
|
|
11 |
Net Profit / (Loss) from ordinary activities |
(249.300) |
(380.600) |
(629.900) |
|
|
|
after tax (9 - 10) |
|
|
|
|
|
12 |
Extraordinary items |
|
|
|
|
|
13 |
Net Profit / (Loss) for the period (11 - 12) |
(249.300) |
(380.600) |
(629.900) |
|
|
14 |
Paid-up equity share capital |
198.000 |
198.000 |
198.00 |
|
|
|
(Equity shares having face value of Rs. 10/- each) |
|
|
|
|
|
15 |
Reserve excluding Revaluation Reserves as |
|
|
|
|
|
|
per balance sheet of previous accounting year |
|
|
|
|
|
16 |
Earnings per share (of Rs. 10/- each) (not
annualised) |
|
|
|
|
|
|
Basic & Diluted |
(12.58) |
(19.23) |
(31.81) |
|
|
PART-II |
|||||
|
|
|
QUARTER ENDED |
QUARTER ENDED |
HALF YEAR ENDED |
|
|
A |
Particulars of Shareholding |
|
|
|
|
|
|
|
30.09.2012 |
30.06.2012 |
30.09.2012 |
|
|
1 |
Public Shareholding |
|
|
|
|
|
|
- Number of shares |
9068294 |
9068294 |
9068294 |
|
|
|
- Percentage of shareholding |
45.81% |
45.81% |
45.81% |
|
|
2 |
Promoters and Promoter Group Shareholding |
|
|
|
|
|
|
a)
Pledged / Encumbered |
|
|
|
|
|
|
- Number of shares |
10590370 |
10590370 |
10590370 |
|
|
|
- Percentage of Total Promotor and Promotors Group
Shareholding |
98.71% |
98.71% |
98.71% |
|
|
|
- Percentage of Total Share Capital |
53.49% |
53.49% |
53.49% |
|
|
|
b) Non
- encumbered |
|
|
|
|
|
|
- Number of shares |
138876 |
138876 |
138876 |
|
|
|
- Percentage of Total Promotor and Promotors Group
Shareholding |
1.29% |
1.29% |
1.29% |
|
|
|
- Percentage of Total Share Capital |
0.70% |
0.70% |
0.70% |
|
|
B |
INVESTOR COMPLAINTS |
Quarter ended 30.09.2012 |
|
|
Pending at the beginning of the quarter |
Nil |
|
|
Received during the quarter |
2 |
|
|
Disposed of during the quarter |
2 |
|
|
Remaining unresolved at the end of the quarter |
Nil |
Statement of Assets and Liabilities
(Rs. in millions)
|
|
|
As at |
|
|
PARTICULAR |
30.09.2012 |
|
|
|
(Unaudited) |
|
A 1 |
EQUITY AND LIABILITIES Shareholders' funds |
|
|
|
(a) Share capital |
198.000 |
|
|
(b) Reserves and surplus |
(4267.400) |
|
|
Sub-total - Shareholders' funds |
(4069.400) |
|
2 |
Share application money pending allotment |
- |
|
3 |
Non-current liabilities |
|
|
|
(a) Long-term borrowings |
4542.600 |
|
|
(b) Other long-term liabilities |
175.500 |
|
|
(c) Long-term provisions |
15.600 |
|
|
Sub-total - Non-current liabilities |
4733.700 |
|
4 |
Current liabilities |
|
|
|
(a) Short-term borrowings |
3219.000 |
|
|
(b) Trade payables |
933.300 |
|
|
(c) Other current liabilities |
4128.700 |
|
|
(d) Short-term provisions |
35.200 |
|
|
Sub-total - Current liabilities |
8316.200 |
|
|
TOTAL - EQUITY AND LIABILITIES |
8980.500 |
|
B 1 |
ASSETS Non-current assets |
|
|
|
(a) Fixed assets |
2791.700 |
|
|
(b) Non-current investments |
399.500 |
|
|
(c) Long-term loans and advances |
502.500 |
|
|
(d) Deferred tax assets (net) |
2674.700 |
|
|
Sub-total - Non-current assets Current
assets |
6368.400 |
|
2 |
Current assets |
|
|
|
(a) Inventories |
1266.200 |
|
|
(b) Trade receivables |
691.300 |
|
|
(c) Cash and cash equivalents |
11.100 |
|
|
(d) Short-term loans and advances |
643.400 |
|
|
(e) Other current assets |
00.100 |
|
|
Sub-total - Current assets |
2612.100 |
|
|
TOTAL - ASSETS |
8980.500 |
Notes:
The above results were reviewed by the Audit
Committee and approved by Board of Directors in its meeting held on 5th
November, 2012.
Company has identified two segments as per
Accounting Standard 17.
Dues on account of maturity of Foreign
Currency Convertible Bonds ( FCCB ) on Dt.22-09-2011, have been frozen on
maturity and accordingly exchange rate fluctuation has not been considered
thereafter. Payment of FCCB shall be considered as per the scheme that may be
considered by Hon'ble BIFR.
SEGMENT WISE REVENUE, RESULTS
AND CAPITAL EMPLOYED
(Rs.
in millions)
|
Particulars |
QUARTER ENDED |
HALF YEAR ENDED |
|
|
|
30.09.2012 |
30.06.2012 |
30.09.2012 |
|
|
Unaudited) |
Unaudited) |
Unaudited) |
|
1. Segment Revenue |
|
|
|
|
(Net Sales/Income
from Operation) |
|
|
|
|
a) Stainless Steel Plant |
1435.000 |
1394.900 |
2829.900 |
|
b) Medical Store & Laboratory |
0.000 |
0.000 |
0.000 |
|
Total |
1435.000 |
1394.900 |
2829.900 |
|
Less: Inter Segment Revenue |
0.000 |
0.000 |
0.000 |
|
Total Sales/Income from Operation |
1435.000 |
1394.900 |
2829.900 |
|
2. Segment Results |
|
|
|
|
(Profit
and Loss before Tax & Interest) |
|
|
|
|
a) Stainless Steel plant |
(134.700) |
(331.000) |
(465.700) |
|
b) Medical Store & Laboratory |
0.000 |
0.000 |
00.000 |
|
Total |
(134.700) |
(331.000) |
(465.700) |
|
Less: Interest & Finance Charges |
232.800 |
231.600 |
464.400 |
|
Total Profit before Tax |
(367.500) |
(562.600) |
(930.100) |
|
3. Capital Employed |
|
|
|
|
(Segment
assets - Segment liabilities) |
|
|
|
|
a) Stainless Steel Plant |
(4183.400) |
(3943.900) |
(4183.400) |
|
b) Medical Store & Laboratory |
114.900 |
119.400 |
114.900 |
|
Total |
(4068.500) |
(3824.500) |
(4068.500) |
CONTINGENT LIABILITIES
(to the extent not provided for):
(Rs. in millions)
|
PARTICULARS |
31.03.2012 |
|
Claims against the company not acknowledged as debts |
|
|
(a) Claims against the company not acknowledged as debts |
|
|
- Claim by Parties |
2734.222 |
|
(b) Guarantees |
|
|
- Corporate guarantee given to consortium Banks for SAL Steel Limited |
2075.000 |
|
- Corporate guarantee given to ABN AMRO Bank for SAL Steel Limited |
0.000 |
|
- Corporate guarantee given to Banks for Adarsh foundation |
0.000 |
|
- Bank guarantee given |
20.082 |
|
- Corporate Guarantee given to L and T for Atithi Gokul |
0.000 |
|
(c) Other money for which the company is contingently liable |
|
|
- Disputed Income Tax Demand (net of Payment) |
0.130 |
|
- Disputed Income Tax Demand (net of Payment) |
380.436 |
|
- Disputed matter with excise and service tax |
13.197 |
FIXED ASSETS
·
Freehold Land
·
Factory Building
·
Office/ Residential
Building
·
Plant and Machinery
·
Laboratory Equipments
·
Vehicles
·
Office Equipments
·
Furniture and Fixtures
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 proeeding 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.54.85 |
|
|
1 |
Rs.88.16 |
|
Euro |
1 |
Rs.71.54 |
INFORMATION DETAILS
|
Information Gathered
by : |
PJA |
|
|
|
|
Report Prepared
by : |
MRI |
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 |
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 |
|
NB |
NEW BUSINESS |
||
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.