MIRA INFORM REPORT
|
Report No. : |
317364 |
|
Report Date : |
18.04.2015 |
IDENTIFICATION DETAILS
|
Name : |
SHAH ALLOYS LIMITED |
|
|
|
|
Registered
Office : |
5/1, Shreeji House, 5th Floor, Behind M.J. Library,
Ashram Road, Ahmedabad – 380 006, Gujarat |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2014 |
|
|
|
|
Date of
Incorporation : |
23.11.1990 |
|
|
|
|
Com. Reg. No.: |
04-014698 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs. 197.975 Million |
|
|
|
|
CIN No.: [Company Identification
No.] |
L27100GJ1990PLC014698 |
|
|
|
|
IEC No.: |
Not Available |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
AHMS02307E |
|
|
|
|
PAN No.: [Permanent Account No.] |
Not Available |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Subject is engaged in manufacturing of wide range of Stainless Steel,
Alloy and Special Steel, Carbon/ Mild Steel and Armour Steel in Flat and Long
products. |
|
|
|
|
No. of Employees
: |
Not Divulged |
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 |
|
|
|
|
Payment Behavior : |
Slow |
|
|
|
|
Litigation : |
Exist |
|
|
|
|
Comments : |
The subject company has been declared as Sick unit under sick
Industrial Company (Special provisions) Act 1985. The company has accumulated losses which are deteriorating the
position of net worth. Payments are reported to be slow and delayed. The company can be considered for business dealings on fully 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.
ECGC Country Risk Classification List – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
Not Available |
|
Rating |
Not Available |
|
Rating Explanation |
Not Available |
|
Date |
Not Available |
RBI DEFAULTERS’ LIST STATUS
Subject’s name has been found enlisted as a
defaulter in the publicly available RBI Defaulters’ list and the details of the
same are as under:
|
Borrowers’ Name : |
Shah Alloys Limited |
|
Address : |
5/1, Shreejee House, B/H Town Hall, Ashram
Road, Ahmedabad, Gujarat, India |
|
Name of Individual : |
|
|
Name of Credit Grantors / Bank & Branch: |
State Bank of India (SAMB Ahmedabad) |
|
Amount (Rs. In Millions) : |
Rs. 0.021 Million |
|
Borrowers’ Name : |
Shah Alloys Limited |
|
Address : |
5/1, Shreejee House, B/H Town Hall, Ashram
Road, Ahmedabad, Gujarat, India |
|
Name of Individual : |
|
|
Name of Credit Grantors / Bank & Branch: |
Bank of Maharashtra (Ahmedabad Bharda) |
|
Amount (Rs. In Millions) : |
Rs. 0.004 Million |
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
31-03-2014.
INFORMATION DENIED BY
|
Name : |
Mrs. Sheetal Shah / Mr. K.S. Kamath |
|
Designation : |
Finance Manager / Director |
|
Contact No.: |
91-2764-661100 / 91-2764-661100 |
|
Date : |
14.04.2015 |
LOCATIONS
|
Registered Office : |
5/1, Shreeji House, 5th Floor, Behind M.J.
Library, Ashram Road, Ahmedabad – 380 006, Gujarat, India |
|
Tel. No.: |
Not Available |
|
Fax No.: |
Not Available |
|
E-Mail : |
Stainless steel
Coil/plate/sheet division: ss.sales@shahalloys.com Alloy steel
Coil/plate/sheet division: as.sales@shahalloys.com
Carbon/mild
steel Coil/plate/sheet division: ms.sales@shahalloys.com
Stainless/Alloy
steel rounds division: rounds@shahalloys.com Stainless steel
flat bars division: ssflat.sales@shahalloys.com
Amour Steel
Division: armour.sales@shahalloys.com North America
and South America: americas@shahalloys.com Europe: europe@shahalloys.com Asia: asia@shahalloys.com Middle East and
Africa: mea@shahalloys.com |
|
Website : |
|
|
|
|
|
Corporate Office : |
Corporate House, Sola-Kalol Road, Santej, Taluka Kalol, District
Gandhinagar – 382 721, Gujarat, India |
|
Tel. No.: |
91-2764-661100 |
|
E-Mail : |
|
|
|
|
|
Work : |
Shah Industrial Estate, Block No. 2221, Sola – Kalol Road, Santej,
Taluka- Kalol, Dist. Gandhinagar – 382721, Gujrat, India |
DIRECTORS
As on: 31.03.2014
|
Name : |
Mr. Rajendra V. Shah |
|
Designation : |
Chairman |
|
DIN No.: |
00020904 |
|
|
|
|
Name : |
Mr. K.S. Kamath |
|
Designation : |
Joint Managing Director |
|
Date of Birth: |
05.05.1960 |
|
Date of
Appointment: |
26.04.2005 |
|
Qualification : |
B. Com |
|
DIN No.: |
00261544 |
|
|
|
|
Name : |
Mr. Ashok Sharma |
|
Designation : |
Whole Time Director |
|
Date of Birth/ Age : |
04.01.1956 |
|
Qualification : |
C.A., C.S., B.Com |
|
Profile and Expertise in Specific functional Areas : |
He has more than 29 years of experience in senior positions in finance
and accounts in various companies. Corporate various companies. Corporate
finance related areas in various industries. |
|
DIN No.: |
00038360 |
|
|
|
|
Name : |
Mr. G.M. Shaikh |
|
Designation : |
Director |
|
Date of Birth: |
31.07.1940 |
|
Date of Appointment: |
07.08.1992 |
|
Qualification : |
F.C.A, B.com |
|
DIN No.: |
00367186 |
|
|
|
|
Name : |
Mr. Dilipkumar Sinha |
|
Designation : |
Director |
|
Date of Birth/ Age : |
15.08.1945 |
|
Date of
Appointment: |
31.12.2005 |
|
Qualification : |
M.A, CAIIB |
|
Profile and Expertise in Specific functional Areas : |
He has more than 37 years of experience of working in State Bank of
India on various positions. |
|
List of other Companies in which Directorships are held : |
Parenteral Drugs (India) Limited |
|
DIN No.: |
00366192 |
|
|
|
|
Name : |
Mr. Harshad Shah |
|
Designation : |
Director |
|
Date of Birth: |
01.07.1952 |
|
Date of
Appointment: |
31.12.2005 |
|
Qualification : |
B. Com |
|
DIN No.: |
1309096 |
|
|
|
|
Name : |
Mr. Tejpal Shah |
|
Designation : |
Director |
|
Date of Birth/ Age : |
01.06.1953 |
|
Date of
Appointment: |
01.02.2006 |
|
Qualification : |
B.Com |
|
Profile and Expertise in Specific functional Areas : |
More than 33 years of rich experience in Trading business. |
|
List of other Companies in which Directorships are held : |
S.A.L. Steel Limited |
|
DIN No.: |
01195357 |
|
|
|
|
Name : |
Tilak Raj Sahni |
|
Designation : |
Nominee Director – UBI (w.e.f. 5th September, 2012) |
|
DIN No.: |
06381156 |
NOTE:
Shri N. D. Shah ceased from Directorship w.e.f. 22nd May, 2013.
Shri Bhaskar Ghosh vacated from the office of Director w.e.f.
14.11.2013.
Shri Anoop Sharma nominated vice Shri Arakhita Khandual w.e.f. 15.11.2013
by IDBI.
KEY EXECUTIVES
|
Name : |
Mr. Vinod Kumar Shah |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on : 30.06.2014
|
Category of
Shareholder |
Total No. of Shares held in Dematerialized
Form |
Total Shareholding as a % of Total No. of
Shares |
|
(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 |
|
|
||
|
|
2764888 |
13.97 |
|
|
||
|
|
3003335 |
17.66 |
|
|
899526 |
4.60 |
|
|
146889 |
0.75 |
|
|
140031 |
0.72 |
|
|
200 |
0.00 |
|
|
6658 |
0.03 |
|
|
6814638 |
36.98 |
|
Total Public shareholding (B) |
8561262 |
45.81 |
|
Total (A)+(B) |
19290508 |
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) |
19290508 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in manufacturing of wide range of Stainless Steel, Alloy
and Special Steel, Carbon/ Mild Steel and Armour Steel in Flat and Long
products. |
||||||||||||
|
|
|
||||||||||||
|
Products : |
|
||||||||||||
|
|
|
||||||||||||
|
Brand Names : |
Not Available |
||||||||||||
|
|
|
||||||||||||
|
Agencies Held : |
Not Available |
||||||||||||
|
|
|
||||||||||||
|
Exports : |
Not Available |
||||||||||||
|
|
|
||||||||||||
|
Imports : |
Not Available |
||||||||||||
|
|
|
||||||||||||
|
Terms : |
Not Available |
PRODUCTION STATUS : (As on 31.03.2014)
Capacity (As Certified by Management)
|
Class of products |
Annual Licensed
capacity (MT) |
Annual
Installed Capacity (MT) |
|
S.S. Flats, Bars and Castings, Hot Rolled M.S. Plates, S.S. H.R. Coil |
N.A. |
3 00 000 |
Production
|
Class of products |
Actual
Production Qty. (MT) |
|
(a) Bars, Beams, Angles and Wire Rods, S.S. Slab, Billets, Casting
etc. |
3608.584 |
|
(b) S.S. Flats |
18443.642 |
|
(c) M.S./ S.S. Plates |
20168.298 |
|
(d) S.S. H.R. / C.R. Coil |
35511.187 |
|
Total |
77731.711 |
GENERAL INFORMATION
|
Suppliers : |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Customers : |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
No. of Employees : |
Not Available |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
· Union Bank of India · State Bank of India · Bank of Baroda · Punjab National Bank · IDBI Bank Limited · Bank of Maharashtra ·
Axis Bank Limited |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
(Rs.
In Millions)
(A) SECURED: a) Nature of
security and terms of repayment for secured borrowings I)
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. II) Term Loan
from Bank / Financial Institution 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.(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 2600000 shares on which Punjab national bank has exclusive charge .
Unconditional and irrevocable personal guarantee of the promoter-director
Shri Rajendra Shah. a) 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. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Auditors : |
|
|
Name : |
Talati and Talati Chartered Accountants |
|
Address : |
Ambica Chambers Near Old High Court Navrangpura Ahmedabad – 380 009,
Gujarat, India |
|
|
|
|
Associate : |
SAL Steel Limited |
|
|
|
|
Enterprise with
significant influence : |
|
CAPITAL STRUCTURE
As on: 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
35000000 |
Equity Shares |
Rs.10/- each |
Rs. 350.000 Million |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
19797540 |
Equity Shares |
Rs.10/- each |
Rs. 197.975
Million |
|
|
|
|
|
[It comprises of
1977500 equity shares of Rs.10/- each fully paid converted from Global Depositary
Receipts (GDRs). Outstanding number of GDRs is Nil.]
Reconciliation of
Number of Shares:
|
Equity Shares |
31.03.2014 |
|
|
Number of Shares |
Amount (Rs. in millions) |
|
|
Shares outstanding at the beginning of the year Changes during the year |
19797540 |
197.975 |
|
Changes during the year |
-- |
-- |
|
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 |
31.03.2014 |
|
|
No. of Shares held |
Percentage of Shares held |
|
|
Mr. Rajendra V. Shah |
9444364 |
47.71% |
|
Mrs. Ragini R. Shah |
1146006 |
5.79% |
# including 7.74% shares held as Karta
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
197.975 |
197.975 |
197.975 |
|
(b) Reserves & Surplus |
(5930.119) |
(4644.230) |
(3637.484) |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending
allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
(5732.144) |
(4446.255) |
(3439.509) |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
3400.329 |
4154.052 |
4815.001 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long term
liabilities |
115.649 |
170.500 |
175.500 |
|
(d) long-term
provisions |
12.175 |
14.730 |
15.650 |
|
Total Non-current
Liabilities (3) |
3528.153 |
4339.282 |
5006.151 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
3172.379 |
3184.198 |
3110.241 |
|
(b) Trade
payables |
1185.093 |
1149.518 |
1270.340 |
|
(c) Other
current liabilities |
6625.260 |
4896.338 |
3321.381 |
|
(d) Short-term
provisions |
39.512 |
37.513 |
31.540 |
|
Total Current
Liabilities (4) |
11022.244 |
9267.567 |
7733.502 |
|
|
|
|
|
|
TOTAL |
8818.253 |
9160.594 |
9300.144 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current
assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
2155.804 |
2455.072 |
2761.476 |
|
(ii)
Intangible Assets |
183.184 |
0.000 |
0.000 |
|
(iii)
Capital work-in-progress |
0.000 |
183.184 |
183.184 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
399.496 |
399.506 |
399.506 |
|
(c) Deferred tax assets (net) |
3637.342 |
3057.563 |
2374.533 |
|
(d) Long-term Loan and Advances |
102.499 |
302.499 |
502.499 |
|
(e) Other
Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
6478.325 |
6397.824 |
6221.198 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
1055.086 |
1247.980 |
1297.890 |
|
(c) Trade
receivables |
310.781 |
678.513 |
1096.652 |
|
(d) Cash
and cash equivalents |
6.375 |
8.458 |
30.796 |
|
(e)
Short-term loans and advances |
967.450 |
827.751 |
653.456 |
|
(f) Other
current assets |
0.236 |
0.068 |
0.152 |
|
Total
Current Assets |
2339.928 |
2762.770 |
3078.946 |
|
|
|
|
|
|
TOTAL |
8818.253 |
9160.594 |
9300.144 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
4191.272 |
5845.336 |
7578.081 |
|
|
|
Other Income |
41.619 |
41.171 |
31.915 |
|
|
|
TOTAL |
4232.891 |
5886.507 |
7609.996 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
2998.631 |
4084.929 |
5039.219 |
|
|
|
Purchases of Stock-in-Trade |
0.000 |
0.000 |
81.282 |
|
|
|
Changes in inventories of finished goods, work-in-progress and
stock-in-trade |
206.121 |
(51.823) |
650.169 |
|
|
|
Prior period items |
(1.781) |
0.562 |
0.896 |
|
|
|
Employee benefits expense |
209.541 |
250.792 |
265.608 |
|
|
|
Other Expenses |
1451.939 |
2061.832 |
2731.583 |
|
|
|
TOTAL |
4864.451 |
6346.292 |
8768.757 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
(631.560) |
(459.785) |
(1158.761) |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
934.740 |
923.587 |
922.232 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION |
(1566.300) |
(1383.372) |
(2080.993) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
299.268 |
306.405 |
317.393 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
(1865.568) |
(1689.777) |
(2398.386) |
|
|
|
|
|
|
|
|
|
Less |
TAX |
(579.780) |
(683.031) |
(784.631) |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
|
(1285.788) |
(1006.746) |
(1613.755) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of exports |
48.796 |
160.764 |
351.355 |
|
|
TOTAL EARNINGS |
48.796 |
160.764 |
351.355 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
184.203 |
11.635 |
31.96 |
|
|
|
Stores & Spares |
21.483 |
23.158 |
42.46 |
|
|
TOTAL IMPORTS |
205.686 |
34.793 |
74.420 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(64.95) |
(50.85) |
(81.51) |
|
QUARTERLY /
SUMMARISED RESULTS
|
Particulars (Rs. in
Million) |
30.06.2014 |
30.09.2014 |
31.12.2014 |
|
|
1st Quarter |
2nd Quarter |
3rd Quarter |
|
|
|
|
|
|
Audited / UnAudited |
UnAudited |
UnAudited |
UnAudited |
|
Net Sales |
769.000 |
651.000 |
598.700 |
|
Total Expenditure |
896.800 |
690.300 |
761.700 |
|
PBIDT (Excl OI) |
(127.800) |
(39.300) |
(163.000) |
|
Other Income |
0.000 |
00.900 |
0.000 |
|
Operating Profit |
(127.800) |
(38.400) |
(163.000) |
|
Interest |
185.800 |
189.200 |
180.800 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
(313.600) |
(227.600) |
(343.800) |
|
Depreciation |
109.600 |
109.600 |
109.500 |
|
Profit Before Tax |
(423.200) |
(337.200) |
(453.300) |
|
Tax |
(150.800) |
(121.400) |
(154.700) |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
(272.400) |
(215.800) |
(298.600) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
Net Profit Margin (PAT/Sales) |
(%) |
(30.68) |
(17.22) |
(21.30) |
|
|
|
|
|
|
|
Operating Profit Margin (PBDIT / Sales) |
(%) |
(15.07) |
(7.87) |
(15.29) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(22.16) |
(30.61) |
(37.81) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.33 |
0.38 |
0.70 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
(1.15) |
(1.65) |
(2.30) |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.21 |
0.30 |
0.40 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO:
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Million) |
(Rs.
In Million) |
(Rs.
In Million) |
|
Share Capital |
197.975 |
197.975 |
197.975 |
|
Reserves & Surplus |
(3637.484) |
(4644.230) |
(5930.119) |
|
Net
worth |
(3439.509) |
(4446.255) |
(5732.144) |
|
|
|
|
|
|
long-term borrowings |
4815.001 |
4154.052 |
3400.329 |
|
Short term borrowings |
3110.241 |
3184.198 |
3172.379 |
|
Total
borrowings |
7925.242 |
7338.250 |
6572.708 |
|
Debt/Equity
ratio |
(2.304) |
(1.650) |
(1.147) |
YEAR-ON-YEAR GROWTH:
|
Year
on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Million) |
(Rs.
In Million) |
(Rs.
In Million) |
|
Sales |
7578.081 |
5845.336 |
4191.272 |
|
|
|
(22.865) |
(28.297) |
NET PROFIT MARGIN:
|
Net
Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Million) |
(Rs.
In Million) |
(Rs.
In Million) |
|
Sales |
7578.081 |
5845.336 |
4191.272 |
|
Profit |
(1613.755) |
(1006.746) |
(1285.788) |
|
|
(21.30)% |
(17.22)% |
(30.68)% |
LOCAL AGENCY FURTHER INFORMATION
|
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 |
Yes |
|
10] |
Designation of contact
person |
Yes |
|
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 |
No |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
Yes |
|
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 |
Yes |
|
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 |
No |
LITIGATION
DETAILS:
|
HIGH COURT OF GUJARAT |
|
SPECIAL CIVIL
APPLICATION NO. 9174 OF 2013 |
|
Status : PENDING |
( Converted from
: ST/224/2008 ) |
CCIN No :
001021201309174 |
|
|||
|
|
S.NO. |
Name of the Petitioner |
Advocate On Record |
|
1 |
STATE BANK OF INDIA – CORPORATE OFFICE |
MS DHARMISHTA RAVAL for: Petitioner(s) |
|
2 |
CHIEF MANAGER – STATE BANK OF INDIA |
MRS KALPANAK RAVAL for: Petitioner(s) |
|
S.NO. |
Name of the Respondent |
Advocate On Record |
|
1 |
SHAH ALLOYS LIMITED |
MR GM JOSHI for: Respondent (s) |
|
|
|||
|
Presented On |
: 08.05.2013 |
Registered On |
: 30.05.2013 |
|
Bench Category |
: SINGLE BENCH |
District |
: AHMEDABAD |
|
Case Originated From |
: THROUGH HIS/ HER/ THEIR ADVOCATE |
Listed |
: 56 times |
|
Stage Name |
: NOTICE AND ADJOURNED MATTERS |
||
|
Office Objection FILING
STAGE: WHETHER COPIES ARE LEGIBLE AND WHETHER TYPED COPIES OF HAND
WRITTEN ANNEXTURES
FILED? FILING
STAGE: WHETHWE THE ORIGINAL POSITIONS OF THE PARTIES STATED? CLASSIFICATION: SI – LABOUR –
PAYMENT OF WAGES ACT. 1936 |
CORPORATE
INFORMATION
The company is engaged
in manufacturing of wide range of Stainless Steel, Alloy and Special steel,
Carbon/ Mild Steel and Armour Steel in Flat and Long products. It is one of the
key suppliers to many renowned companies in India and overseas. It exports
various products to more than 50 countries around the world. Company has been
successful in developing protection Armour Steel which is mainly required for
defense purpose. Company has been registered with Defense Research and
Development Organization as approved vendor and it is expected that good
business will be available to the company. To reduce the cost of power, company
has been making efforts to purchase power through Open Access which would be
cheaper than the present cost of power.
PERFORMANCE
As the aware that
Company has been declared Sick undertaking under the provisions of Sick
Industrial Company (Special Provisions) Act, 1985, it has become difficult for
the company to arrange the funds. As such due to paucity of working capital,
company's working is declining. Company is in constant touch with the lenders
for an amicable settlement with the lenders through Hon'ble BIFR.
MANAGEMENT DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE
AND DEVELOPMENTS
After
a period of 5 years, since the break out of the global financial crisis and
with significant liquidity injection by several large economies, the macro data
from the developed economies started showing trends of slow improvement during
2013 even though several structural weaknesses still needs to be addressed before
these trends can be considered sustainable. Global growth remains below
pre-crisis levels and much weaker than during the rebound that took place in
2010 and 2011.
After
registering growth rates of 13.3% and 9.9% in FY 10 and FY 11, Indian steel
consumption grew at only 5.5% during FY 12 on the back of a slowdown in demand
from its key consuming industries namely construction, capital goods and
automobiles. The Indian iron or mining industry in undergoing a difficult phase
given regulatory intervention in various states. However, there could be a
shortage of about 30mt given the on-going challenges in the mining sector.
In
2013, global steel demand grew by 3.6% to 1.48 billion tones due to improved
performance in the developed economies especially in North America and Euro
Zone in the second half of the year. However, growth in emerging markets slowed
down in 2013 due to weak demand especially in developed countries and tighter
financial conditions. The World crude steel production rose by 3.5% to 1.607 billion
tones in the year 2013.
In
2013, India remained the 4th largest steel producing country in the world,
behind China, Japan and the US. Crude steel production grew by 4.6% to 81.2
million tones and steel demand grew by 1.8%. India's GDP growth has slowed down
to 5% in 2013 on account of rising inflation and tight monetary controls. This
has led to weak domestic steel demand, which grew by 3.3% in 2013 in spite of
rise in demand in the last quarter. This has resulted in India becoming the net
exporter of steel in Financial Year 2013-14 after a gap of six years. Total
steel exports by
India
during the Financial Year stood at 5.59 million tones, as against imports of
5.44 million tones as per the report issued by Joint Plant Committee (JPC), a
unit of the steel ministry.
According
to the Planning Commission of India, the country's steel production is expected
to grow by around 60 million tones during the Twelfth Five Year Plan (2011-12
to 2016-17). India's domestic steel consumption will continue to grow steadily
for several years into future driven by urbanization, favorable demography, GDP
growth, refocus on industrialization and stepped-up investments in
infrastructure.
Inflation
has, since then, moderated, along with an improvement in the fiscal and current
account deficit. A good monsoon also enhanced rural demand. The government's
clearance of stalled infrastructure projects in the last quarter of FY 2013-14
has improved business sentiments. India's GDP is expected to grow by 5% and
steel demand is expected to growth by 3.3% in 2014. The automotive sector
(passenger vehicles and commercial vehicles), which grew by -6% in the
Financial Year 2013-14, is expected to grow by about 3%-4% in Financial Year
2014-15. Similarly, the construction sector growth is expected to grow by 5% in
the next year compared to growth of 1.9% in the Financial Year 2013-14.
COMPANY’S
PERFORMANCE AND HIGHLIGHTS
Due to
the status of sick undertaking, working of the company has been adversely affected.
Performance of the company has been affected due to financial crunch, increase
in price in raw materials and non-availability of raw material in time etc. As
such due to paucity of working capital, company’s working is declining. Company
could make optimum use of power under Open Access. As Company is not in
position to optimize its full working capacity, Company had reduced its
contract demand with disco company and tried to control over fixed expenses.
FUTURE OUTLOOK
In Financial Year
2014-15, while greater financial stability is expected in the advanced
economies, growth will remain subdued in emerging and developing economies. The
lower growth trajectory in China is expected to impact commodity markets
adversely, including steel and its raw materials. The situation in
Ukraine/Russia may increase steel availability in the rest of the world as 70%
of Ukraine's steel production of 35 million tones per annum was exported of
which ~3.5 million tones per annum (15% of exports) was earlier exported to
Russia. The economic outlook in Europe is strengthening and the US economy
shows strong signs of a better performance going forward.
Financial Year
2013-14 has been a challenging year with subdued economic growth, as a result
of higher inflation, higher interest rates, lower industrial growth and lower
investments in the country, along with the poor condition of the global
economy. However, the Indian economy is expected to perform comparatively well
in the coming years. With a stable government at the center, significant policy
changes are anticipated in the near future. The government focus on
infrastructure development, more foreign direct investment inflow and more
transparency in governance is likely to significantly increase the business
confidence in the country.
In 2013, world
steel demand grew at 3.6% because of the strengthened recovery in the US
markets in the second half of the year. Steel demand in the Euro zone is likely
to rise with a 4.5% increase in steel usage in Germany in 2014, 2.6% in Italy,
1.0% in France and 3.0% in Spain. India's steel demand is estimated to grow by
3.3% to 76.2 MT in 2014-15, following 1.8% growth in 2013-14. This is due to
improved sentiments for the construction and manufacturing sectors, even though
structural issues and persistent inflation continue to pose challenges.
Overall steel
demand in developed economies will be above 2% in 2014 and 2015, while that in
developing economies will continue to grow faster [Source: World Steel
Association, Short Range Outlook, 2014-15]. Improving automobile and consumer
durable sectors are expected to raise the flat steel demand compared to last
year, while long steel demand is expected to fare relatively better due to an
uptick in construction activities and the planned infrastructure growth
UNSECURED LOAN:
(Rs. In Million)
|
Particulars |
As
on 31.03.2014 |
As
on 31.03.2013 |
|
LONG TERM
BORROWING |
|
|
|
Inter Corporate Deposits |
|
|
|
- From Related Parties |
89.700 |
12.500 |
|
- From Others |
46.400 |
70.000 |
|
Loans and Advances from related parties |
|
|
|
- From Directors |
58.473 |
53.522 |
|
|
|
|
|
Total |
194.573 |
136.022 |
|
|
||
|
(A) UNSECURED: Deposits The company has
taken inter corporate deposit during the year from two related parries as
mentioned herewith: SAL Care Private Limited of 152.000 Million and SAL
Hospital & Medical Institute of 4.000 Million. This party is covered
under the register maintained under section 301 of the
Companies Act. 1956. 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. The Company has taken an unsecured
loan from related Party of 4.851 Million during the year. This party is
covered under the register maintained under section 301 of the Companies Act,
1956. |
||
INDEX OF CHARGES:
|
S.No. |
Charge ID |
Date of Charge Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number (SRN) |
|
1 |
10162596 |
27/04/2009 |
369,400,000.00 |
BANK OF MAHARASTRA |
LOKMANGAL, 1501, SHIVAJI NAGAR, PUNE, Maharashtra |
A64155450 |
|
2 |
10152444 |
27/02/2009 |
596,000,000.00 |
BANK OF BARODA |
CORPORATE FINANCIAL SERVICES BRANCH, 1ST FLOOR,, |
A60651627 |
|
3 |
10141061 |
12/01/2009 |
1,550,000,000.00 |
UNION BANK OF INDIA |
INDUSTRIAL FINANCE BRANCH, C U SHAH CHAMBER, ASHR |
A56317316 |
|
4 |
10100852 |
24/07/2009 * |
7,504,700,000.00 |
UNION BANK OF INDIA |
INDUSTRIAL FINANCE BRANCH, C U SHAH CHAMBERS, ASH |
A67939843 |
|
5 |
10038852 |
14/02/2007 |
250,000,000.00 |
Industrial Development bank of India Limited. |
IDBI Complex, Near Lal Bunglow,, Off C G Road,, A |
A11270873 |
|
6 |
10022445 |
20/10/2006 |
1,000,000,000.00 |
IDBI TRUSTEESHIP SERVICES LIMITED |
Asian Bldg., Ground Floor, 17, R.Kamani Marg,, Ba |
A05581061 |
|
7 |
80018560 |
01/12/2006 * |
175,000,000.00 |
PUNJAB NATIONAL BANK |
LARGE CORPORATE BRANCH, PELICAN BUILDING, ASHRAM |
- |
* Date of charge modification
STANDALONE
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30TH DECEMBER,
2014
Standalone statement of profit and loss
(Rs. In Million)
|
Type |
Un-Audited |
Un-Audited |
|
Period Ending |
31.12.2014 |
30.09.2014 |
|
Net Sales / Interest Earned / Operating Income |
598.700 |
651.000 |
|
Other Income |
0.000 |
0.900 |
|
Expenditure |
(761.700) |
(690.300) |
|
Interest |
(180.800) |
(189.200) |
|
Profit Before Depreciation and Tax |
(343.800) |
(227.600) |
|
Depreciation |
(109.500) |
(109.600) |
|
Profit before Tax |
(453.300) |
(337.200) |
|
Tax |
154.700 |
121.400 |
|
Net Profit |
(298.600) |
(215.800) |
|
Equity Capital |
198.000 |
198.000 |
|
Basic And Diluted EPS after Extraordinary item |
(15.080) |
(10.900) |
|
Basic EPS after Extraordinary items |
- |
- |
|
Diluted EPS after Extraordinary items |
- |
- |
|
Nos. of Shares - Public |
90,68,294.00 |
90,68,294.00 |
|
Percent of Shares-Public |
45.810 |
45.810 |
|
Operating Profit Margin |
(27.230) |
(5.900) |
|
Net Profit Margin |
(49.870) |
(33.150) |
|
Cash EPS |
(9.550) |
(5.360) |
NOTE :
- The above results were reviewed by the Audit Committee and approved
by Board of Directors in the meeting held on February 14, 2015.
2. Dues on account of maturity of Foreign
Currency Convertible Bonds ( FCCB ) on Sept 22, 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.
3. Financial figures of previous year / period
have been regrouped / re-classified & re-stated, wherever necessary, to
make them comparable with the current year / period figures.
4. Secured Borrowings from Karur Vysya Bank
w.e.f. December 31, 2012, IDBI Bank w.e.f. 28th march 2014, Bank of Baroda
w.e.f. March 26, 2014 and Oriental Bank of Commerce w.e.f August 04, 2014 have
been transferred / assigned to financial institution together with all their
rights, title and interest in the financial documents and any underline
security interest/pledges and /or guarantees in respect of such loans. Hence
the company has stopped for making provision for interest on such borrowing
from the date of transferred due to non-execution of agreement with ARCIL.
5. Consequent to enactment of Companies Act,
2013 and its applicability of accounting period commencing after 1st April
2014, the Company has reworked depreciation with reference to the estimated
economic lives of Fixed Assets prescribed in the Schedule II to the Act or
actual life of asset whichever is lower. In case of any Asset whose life has
completed as above, Carrying value as at April 01, 2014 has been adjusted to
the General Reserve (net of deferred tax) and in other cases carrying value has
been depreciated over the remaining useful life of assets and recognized in the
Statement of Profit & Loss.
6. The Statutory auditors have conducted a
Limited Review of the above mentioned results as required by the Listing
Agreement with the Stock Exchange.
CONTINGENT
LIABILITIES (TO THE EXTENT NOT PROVIDED
FOR):
|
Particulars |
31.03.2014 (Rs. in millions) |
31.03.2013 (Rs. in millions) |
|
Claims against the company not acknowledged as debts |
|
|
|
(a) Claims against the company not acknowledged as debts |
|
|
|
- Claim by Parties |
2741.593 |
2751.313 |
|
(b) Guarantees |
|
|
|
- Corporate guarantee given to consortium Banks for SAL Steel Limited |
2075.000 |
2075.000 |
|
- Bank guarantee given |
4.283 |
2.083 |
|
(c) Other money for which the company is contingently liable |
|
|
|
- Disputed Income Tax Demand (net of Payment) |
0.130 |
0.130 |
|
- Disputed Sales Tax Demand (net of Advance) |
380.436 |
380.436 |
|
- Disputed matter with excise and service tax |
27.429 |
23.071 |
FIXED ASSETS:
·
Freehold Land
·
Factory Building
·
Office/ Residential
Building
·
Plant and Machinery
·
Laboratory Equipments
·
Vehicles
·
Office Equipments
·
Furniture and Fixtures
Notes:
1) Cost of Fixed
Assets and pre-operative expenses, being technical matter, are capitalized or
allocated to Capital work in progress on the basis of data certified by
technical person & the Management.
2) Borrowing cost
includes interest and other bank charges to the extent that they are regarded
as an adjustment to interest costs which are directly related to the
acquisition & construction of a qualifying asset.
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 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.62.34 |
|
|
1 |
Rs.93.09 |
|
Euro |
1 |
Rs.67.13 |
INFORMATION DETAILS
|
Information
Gathered by : |
NYA |
|
|
|
|
Analysis Done by
: |
SUC |
|
|
|
|
Report Prepared
by : |
DDD |
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
unfavorable 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.