SHAH ALLOYS LTD. |. Gandhinagar 362721 . Ofc: Shah Alloys Corporate House, Sola - Kalo! Road, Sate Ta Kalo Dis Corr Oogd.Ofce 51, rea House, ih Flor, Behind M.Library, Ashram Road, Amedabed india . Phone : 02764 - 661700 . Fay 1764 - 661110 Email: info shahaloys.com November 12, 2016 To, Department of Corporate Service Manager Bombay Stock Exchange Ltd. _Listing Department PhirozeJeejeebhoy Tower. National Stock Exchange of India Ltd. Dalal Street, Exchange Plaza, Plot No C/1, G-Block, Mumbai - 400 001 Bandra — Kurla Complex, Bandra (E), Mumbai - 400051 BSE Scrip Code: 513436 NSE Symbol - SHAHALLOYS Sub: Board Meeting for considering Unaudited Financial Results for the Quarter & Half Year Ended on 30.09.2016 With reference to above, kindly be informed that the Board of Directors of the company in its meeting held today have considered the Unaudited Quarterly Results along with Limited Review Report for the quarter & half year ended on 30.09.2016. A copy of approved results along with Limited Review Report is enclosed for ready reference. [The @foresaid Board Meeting commenced at 03:30 p.m. and concluded at 04:30 p.m.] Kindly take the above on your record. Thanking you, Yours faithfully, for Shah Alloys Ltd eta L Company Secretary Enel: a/a | +: Block No. 2221 / 2222, Shah Industrial Estate, Sola-Kalol Road, Santej, | Fectory: Beck Phone: (02764) 206525 286545 Fax: (0276 Kalol, Dist. : Gandhinagar - 382721. 15 Website : www.shahalloys.comSHAH ALLOYS LIMITED FRooge Of: 51.5 STATEMENT OF STANDALONE UNAUDI ‘QUARTER AND SIX MONTHS ENDED 20" SEPTEMBER, 2016 ‘Amount (Re in Crores) PARTICULARS er 39] 339] reas] 6a] 7097] 6202)Standalone Statement of Assets and Liabilities SHAH ALLOYS LIMITED House, Behind Wray Ashram Reed, Ahmadabad - 380006 PARTICULAR EQUITY AND LIABILITIES ‘Shareholders fonds (0) Reserves and surplus {6} Long teem provisions ‘Subtotal - Non-current liabilities Deferred tax assets (net) Trade receivables ‘Other current assets Sub-total - Current assets [roraL -ASSETS, \axs= ‘Sub-total - Shareholders’ funds Share application money pending allotment ‘sub-total - Non-current assets Current assets Cash and cash equivalents ‘Short term loans and advances ass| 451 Tass | 16470 ea (are as] ssa0 | 16595 221] 227 aos ti| 248-16 525.10 [25.12 eros] 8249 a3] 994 229| 305 1068] 1408 os} ja6s2 | 1101 srt |appa aking rosion frees ‘Companies (ARC) and hence deo akon the COR 2 orders 38 Bae 1 ever ‘ies Company nave been prepared an a gong concer have been frozen on matty ar 3 sal pe eoraldered as per the scheme orign Curency Convertible Bonds (FECB } on tse not been Gonekdered thereafter. Payment considered FR br ra tanrapcuned oul e angel crore n—emeTe cs Neca comparable with the current perio. i on baka of Board of Direstors| for heh Alloys Limited Joint itanaging Directornd talati € talati SN hyartered Assouentnts Limited Review Report Review Report to The Board of Directors Shah Alloys Limited We have reviewed the accompanying statement of unaudited financial results of Shah Alloys Limited (the Company) for the period ended September 30, 2016. This statement is the responsibility of the Company's Management and has been approved by the Board of Directors. Our responsibilty is to issue a report on these financial results based on our review We conducted our review in accordance with the Standard on Review Engagement (SRE) 2419, “Review of Interim financial information Performed by the Independent Auditor of the Entity “issued by the Institute of Chartered Accountants of India. This standard requires that we plan and perform the review to obtain moderate assurance as. to whether the financial results are free of material misstatement. A review is limited primarily to inquiries of company personnel and analytical procedures applied to financial data and thus provide less assurance than an audit. We have not performed an audit and accordingly, we do not express an audit opinion. Without qualifying our opinion, we draw your attention to 1) Note 4 to the financial results which states that the Company has accumulated losses and its net worth has been fully eroded. The Financial results indicate that the Company has incurred a net loss during the current period and previous periods) and, the Company's current liabilities exceeded its current assets as at the previous year balance sheet date. These conditions indicate the existence of a material uncertainty that may cast significant doubt about the Company's Page 1 of 3 AMBICA CHAMBERS, NEAR OLD HIGH COURT, NAVRANGPURA, AHMEDABAD 380 008, TEL. 2754 4571-72, FAX: 2754 7233, 3008 4575 www alatiandtalati.com Also at: VADODARA (0265) 305 8025.26, 231 0499, SURAT (0261) 325 8526, ANAND (02692) 656 405 ‘MUMBAL : 9867353743 DELHI (O11) 32562800 INDORE (073) 4257344ability to continue as a going concern. However, the financial results of the Company have been prepared on a going concern basis. 2) Note 3 to the financial results which states about the transfer/ assignment of secured loans with all their rights, title and interest in the financial documents by banks to the Asset Reconstruction companies, against which the company has stopped making provision for interest on such borrowing from the date of transfer due to non execution of agreement with Asset Reconstruction companies. Basis for Qualified Conclusion The Company has not provided for foreign exchange Profits in the financial results on the Principal amount of 1,00,00,000 USD and on the Premium amount of 48,25,500 USD of the Foreign Currency Convertible Bonds(FCCB) which had become due for payment on September 22, 2011 and remain unpaid as at September 30, 2016, which constitutes a departure from the Accounting Standard - 11, "The Effects of Changes in Foreign Exchange Rates’, which requires that each foreign currency monetary items should be reported using the closing rate as at the balance sheet date. Non provision of the foreign exchange loss on the aforesaid Foreign Currency Convertible Bonds (FCCB) and the Premium amount relates to the period from September 23, 2011 to September 30, 2016. The Company's record indicate that had management done the provision, the Exchange Profits for the quarter ended 30" September would have been higher by Rs. 1,41,88,004/-. Accordingly, loss for the quarter ended 30" September 2016 have been over stated by Rs. 1,41,88,004/- and negative balance of reserves and surplus has been understated by Rs. 26,44,73,577/- as. at 30” September 2016. Page 2 of 3Qualified Conclusion Except for the adjustment as stated above to the interim financial results that we might have become aware of had it not been for the situation described above , based on our review conducted as above, nothing has come to our attention that causes us to believe that the accompanying statement of unaudited financial results prepared in accordance with applicable accounting standards and other recognized accounting practices and policies has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 , read with SEBI Circular No. CIR/CFD/CM0/15/2015 dated November 30, 2015 including the manner in which it is to be disclosed, or that it contains any material misstatement. For Talati & Talati Chartered Accountants Firm Regn No. 110758W Umesh Talati Place: Ahmedabad (Partner) Date: 12" November 2016 Mem. No. 034834 Page 3 of 3STATEMENT OF CONSOLIDATED UNAUOITED RESULTS FOR THE QUARTER AND Six MONTHS ENDED 20" SEPTEMBER, 2016 ‘Amount (Rs In Crores) : oe woeo” | MONTHS | cNoeD No alia |so-an 07s] scan 07s [30.05 2016 1-03 2016 fovsaca] mses anne oat + income from Operations Net Salestocome fom Operaons (Nef ves ty) zoos] ear] ssaao] 26100) 5] 004] _oas|__o. hs yoo] e349] tess] 15 2 |e ara arses ineentoves of ished goods wekin-roges ana teckinivode | (601) Employ nets exerse 201 {@)Beprecaton ara amorzaton expense aa (e} Consumption Stores & Sores 74 (0 Pome cost 105 {@) Ober Expensince aH ott Exper 0) 0) 708 so) fom operators bef oer cane, ance costs and exceponal tem | (85) Finance costs oss) fom ordinary aces ater france costs (54) rs] 20.45} tems Prot (Loss fom ordinary actives boore tax (72) 73] 2045 10 |oetered Tax Go (625) * |e rot (Lee) tom onary activites aera tut etre et dary tem o-10) | 74 eal ar tom (11-12 672) __(678| 1350] 124.38 345 45 |NetPront (Loss forthe period (19-14) (672| 678] (1350) 120.893 16 |Paicup equty share capital (Equity shares having face value of Rs. 11- each) 1980] 1840] 1960] 1980 17 |Reserve excising Revaluation Reserves as per balance sheet of previous aocountng seer ‘® aneuslsed) inary item 39] Gan) ea} a tem sa] Gaz) 622) 61.09SHAH ALLOYS LIMITED registered Ofc: SH Shreq Hout, Behind Library Aram Rud, Ahmedabad 380 006 Consolidated Statement of Assets and Liabilities Re incre fea] Asa PARTICULAR oes | sts 6 ee 1 | equrry AND LIABILITIES Shareholders’ funds ‘Share captal 1980 (@) Reserves and surplus soon} ‘Subtotal - Shareholders’ funds (79.87) Share application money pending allotment Non-curent lieitios 1p term borowings aista| 24008 her long-term babies 035| 035, (6) Long term peowsions sie] a7 ‘Sub-total - Non-current liabilities Beer] mars 12081 r.18 59925, 45, Tai TOTAL - EQUITY AND LIABILITIES aaa] 8 |assers 1+ | Non-current assets (2) Foes assets tse] 165.98 Non-curant vestments Long term loans and advances 2a] 227 ) Defered tax assets (ne) assti] 348.16 ‘Sub-total -Non-current assots Current assots 31636 [51637 current assets entries eros} 6243 receivables om] ase fash and cash equivalents 2as| 305 jortterm loans and advances so6s) 1481 rent assets a. ‘Sub-total - Current assets 16 52 | 170.03, [TOTAL - ASSETS, Tm] eA)ficaton comparable withthe have been regrouped and rearranged wherever necessary to make thet classification compar FOR, SHAH ALLOYS LTD \ecquaet e_ JT. MANAGING DIRECTOR (DIN 00261544)Ox talati € talati NX acters, Arountart Limit Review Report Review Report to The Board of Directors Shah Alloys Limited We have reviewed the accompanying Statement of Unaudited Consolidated Financial Results of Shah Alloys Limited (the "Holding Company’) and its associate (The Holding Company and its Associate together referred to as the “Group") for the period ended September 30, 2016 being submitted by the Company pursuant to the requirements of Regulation 33 of SEBI(Listing Obligations and Disclosure Requirements) 2015 , read with SEBI Circular No. CIR/CFD/FAC/62/as_ modified by Circular No. CIRICFD/CMD/15/2015 dated November 30, 2015. This statement is the responsibility of the Holding Company's Management and has been approved by the Board of Directors. Our responsibility is to issue a report on these financial results based on our review. We conducted our review in accordance with the Standard on Review Engagement (SRE) 2410, “Review of Interim financiai information Performed by the Independent Auditor of the Entity * issued by the Institute of Chartered Accountants of India. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the financial results are free of material misstatement. A review is limited primarily to inquiries of Holding company personnel and analytical procedures applied to financial data and thus provide less assurance than an audit. We have not performed an audit and accordingly, we do not express an audit opinion. oe? <) Page 1 of 3 [AMBICA CHAMBERS, NEAR OLD HIGH COURT, NAVRANGPURA, AHMEDABAD 380 009, TEL. : 2754 4571 - 72, FAX: 2754 2233, 3008 4575 www aatiandtaat.com {iso at : VADODARA (0265) 305 8025-26, 231 0499, SURAT (0261) 325 8526, ANAND (02692) 656 405 (MUMBAI ; 8667359743 DELHI (011) 32583900 INDORE (073) 4257344Without qualifying our opinion, we draw your attention to 1) Note 4 to the Consolidated financial results which states that the Company has accumulated losses and its net worth has been fully eroded. The Financial results indicate that the Company has incurred a net loss during the current and previous period(s) and, the Company's current liabilities exceeded its current assets as at the current and previous year balance sheet date. These conditions indicate the existence of a material uncertainty that may cast significant doubt about the Company's ability to continue as a going concern. However, the financial results of the Company have been prepared on a going concern basis. 2)Note 3 to the Consolidated financial results which states about the transfer! assignment of secured loans with all their rights, title and interest in the financial documents by banks to the Asset Reconstruction companies, against which the ‘company has stopped making provision for interest on such borrowing from the date of transfer due to non execution of agreement with Asset Reconstruction companies, 3) Note 7 to the Consolidated Financial results regarding the recognition of the share of loss in its Associate by the Holding Company. Basis for Qualified Conclusion The Holding Company has not provided for foreign exchange Profits in the financial results on the Principal amount of 1,00,00,000 USD and on the Premium amount of 48,25,500 USD of the Foreign Currency Convertible Bonds(FCCB) which had become due for payment on September 22, 2011 and remain unpaid as at September 30, 2016, which constitutes a departure from the Accounting Standard - 11, “The Effects of Changes in Foreign Exchange Rates", which requires that each foreign currency monetary items should be reported using the closing rate as at the balance sheet date. Non provision of the foreign CER AX Page 2 of 3exchange loss on the aforesaid Foreign Currency Convertible Bonds (FCCB) and the Premium amount relates to the period from September 23, 2011 to September 30, 2016. The Holding Company's record indicate that had management done the provision, the Exchange Profits for the quarter ended 30” September would have been higher by Rs. 1,41,88,004/-. Accordingly, loss for the quarter ended 30" September 2016 have been over stated by Rs. 1,41,88,004/- and negative balance of reserves and surplus has been understated by Rs. 26,44,73,577/- as at 30" September 2016. Qualified Conclusion Except for the adjustment as stated above to the interim financial results that we might have become aware of had it not been for the situation described above , based on our review conducted as above, nothing has come to our attention that causes us to believe that the accompanying statement of unaudited financial results prepared in accordance with applicable accounting standards and other secognized accounting practices and policies has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 , read with SEBI Circular No. CIR/CFD/CMD/15/2015 dated November 30, 2015 including the manner in which it is to be disclosed, or that it contains any material misstatement. For Tatati & Talati Chartered Accountants Firm Regn No. 110758W. ae Umi&sh Talati Place: Ahmedabad (Partner) Date: 12" November 2016 Mem. No. 034834 Page 3 of 3