SHAH ALLOYS LTD. Corp. Office : Shah Alloys Corporate House, Sola - Kalol Road, Santej, Ta. Kalol, Dist. Gandhinagar- 382043, Regd. Office : 6/1, Shreeji House, Sth Floor, Behind M.J.Library, Ashram Road, Anmedabad- 6. India Phone : 02764 - 661100 Fax : 02764 - 661110 February 11, 2017 E-mail info@ shahalloys.com 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 & Nine month Ended on 31.12.2016 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 & nine month ended as on 31.12.2016. A copy of approved results along with Limited Review Report is enclosed for ready reference. [The aforesaid 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, We Alloys Ltd Company Secretary Encl: a/a Factory : Block No. 2221 / 2222, Shah Industrial Estate, Sola-Kalol Road, Santej, Ta. Kalol, Dist. : Gandhinagar - 382 043. Phone : (02764) 286525 / 286545 + Fax : (02764) 286615 ‘Website : www.shahalloys.com ameee ae ee ‘SHAH ALLOYS LIMITED ‘Regd OM 81S House, BW. JLBa Auta RO, Adan 280 08 ee ‘En LeTioagytaorLcojeabe ww SHAnALLOYS.cOM STATEMENT OF COMBOUDATED UNAUDITED RESULTS FOR THE QUARTER AND MINE WONTHS ENDED" DECEMAER, 206 Ares rors 5 eae Twn wowms creo [MERON | year een feast eee [temas |e + Jocome trom Operations ‘slut tnmencone ter Opting atte ay soc roa] mace] ata {nw omen se ca] “sean en rotate om Optoma) {8 a a 2 Jespoanare Mowpemmensterdinsted wocwtinpepen mdsncince | cian) aor] tei] i eccieetecmeres i] Sn) ee] {a onennon wcanraan epee Se] ae) wel ta {6 edmtrmtons Stee nee a] as) al al ‘rome sat iowa BS] BS Grom eoeranse a4 ie] 3 rt apne (0) sa ati 2 fst tt ann nrc st erin | fo] ro] |B 4 [ote ne an} alas 19 $ eat han tomer scien nor sce) esa] es) aan] acl & [rmeteoee sa] Ss) hay $ Pom or tom ory sien terrane cot (6 eas) ars] aasel | 4 [Botton : : = 4 |r cntom ryt btn 78) eo} a] aes] ran] 10 [Onerarae eo) on] geal tare 1 leet seem ry seit sertacttoee screen) | team) team) azn] aerad 1] temanptene tars] 1 ao dai resem est. eee] __e7/_usanl “aun 13 fra oa re pra. em] ter] eae te {t faatpeqaysnae xp fy ses vey ac vue Yt) fo} ee] ao 11 [amet eng Rettate sone perc see orecun eng contr] 16 [tPaocee clan wesc pet once one bs en ay ay ca] a] az] ears] Peetinesteprrntied fe] Bs) a ci prow: = i 1 These Unaea hance or vows He A Commas nd aperoved by Baars ih mong ln 1 Fear 017 2 Theat Fina Renu fh Company othe urea rns nn edd 38 Dace 2014 have oan Le Reena ‘Skul Acre tn Company. 3 Sct Boronigs tr eben manne ars have been nse assed are nese gene ah tH a, keane ‘ecm t hone cocmeni ary uae sory renee sd pram spect she SBE aaa RAN Coy Te Oe ‘aaosatte fseRecrntcon Conga (rs Lm ‘2ss0r fume na senon Corny cen "alia Canpary hes eto erg caer an penous years aah Compan’ car lai erent caret asta Ce {Ss prvoun yar baane snot cate. Tse cndtant dca: nsec fro aan ht ray rey ay ncn a‘ ence Hower ear es ate Company echy meat wt he ARC ender wearers {Dies cn acco mary Fores Curancy Convene Bens FCC Jon 012.0020, hue be anon. ancy ‘tango ae ncn hasnt be caeiteres Wersotor, Peel of FEC shat bconaere tp these al ay be Sneed Herne i (Shoe be company a ope opus ety Stndscre Farcl Ros Finns Yee 206-16 covering te 4 ares. he Comeany as a duce cones hus otros eta re ane on tine Nanhai Desa 215 7 Tre teva Congas acres se ats ib Ani ic ba ett Sop 20,2018 ced a ‘einen vee Ses of SA. Ses arco) Hence, etry Covey Se scutes corey ‘ween an rc, autotest var: hearer oe Crennon 3216 ain sear yt canna Sar Actag tate Asa ok sacs ee se ‘Testaments oman sev it tors a emi Seater ibe esos carey a § oe iS 1 Prev ed fos hae ben rpeupd ale resmanged herr ncaa 9 mae Saco copie th curt peed FOR, SHAH ALLOYS LTD on nace ECTOR K. S. Kamath (DIN 06261544)talati & talati Cr) aath < tata Limited 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 December 31, 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. CIR/CFD/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 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 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, Page lof 4 ANTBICA CHAMBERS, NEAR OLD HIGH COURT, NAVRANGPURA, AHMEDABAD 380 009 TEL, 2754 4571 - 72, FAX: 2754 2233, 2008 4575 _wuwtalstiandtalati com Also at : VADODARA (0265) 305 2026-26, 231 0499, SURAT (0261) 325 6526, ANAND (02692) 656 405 MUMBAI ; 9867253748 DELM! (O11) 32553900 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 concer 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. Page 2 of 4Basis for Qualified Conclusion The Holding Company has not provided for foreign exchange loss 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 December 31, 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 December 31, 2016. The Holding Company's record indicate that had management done the provision, the Exchange Loss for the quarter ended 31% December would have been higher by Rs. 1,92,00,505/-. Accordingly, loss for the quarter ended 31%* December 2016 have been under stated by Rs. 1,92,00,505/- and negative balance of reserves and surplus has been understated by Rs. 28,36,74,082/- as at 31** December 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 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 SEB! Circular No. CIR/CFD/CMD/15/2015 dated November 30, 2015 including the Page 3 of 4manner in which it is to be disclosed, or that il contains any material misstatement, For Talati & Talati Chartered Accountants Firm Regn No. 110758W “y) a BD inesn Talati Place of signature: Ahmedabad (Partner) Date: 11% February 2017 Mem: No. 034834 Page 4 of 4‘SHAH ALLOYS LIMITED Regd Of 5 Sel Hou, Sh Ms Lora, ashram Rous, Ahmedabed- 380 008 En LartoagytSe0rLCo\4ss6. WWW SHARALLOYS.COM STATEMENT OF STANDALONE UNAUDITED RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31" DECEMBER, 2016 ‘Amount | Rs Crore s. aii No. o . 7a eee eae [aoe sea 1 |income tom Operations “aihutSurcisrne ton Opertene otefercse eo) | 8008} ros] eztz|_ aga] ter] aeta {2 One Opera nem cos| ous as oi) ee i ta neome ro Operations (+ 38 se] —Fo 0] —— ea] — apes] ras at 2 |expenaitute {a Cost mati coset sa sor} ssa ws sae] {0 Shanes miners iat gost, «an v8] ceil oo en watcrpogess an uccknirace ‘eiSpoyen beets exgerse 2a) aan) acs] so] aid [6 bepetaten angen eaten egerse bay ast wa ney tere {6} caraunglon tres 8 Spaes aaa Ss) 203 ba es (Boower emt 1509 wa za] ay (Syomer gener “el ‘21 vas| tsa rota Exper aaah Tea wes ——ara 2 [ren rom pera ator rer ene, ‘esa Ta] aaa] 0590] nce son anacaceptons tom 3) 4 |orerncom on} om oa asl a 103 |poerstcna wom onary sctesnoresrancecousi | cci]] asi] (226) rzan] ata] al beer «|Fntce cone ao] 3) ea] 103 val aa 1 [rom tena rom oranayscovesanertancecons (s:| sn] ora] rat asm] san] rl i 2 [eres tens 2 = z 1 [pen an om oar atts bt 78) es] 7a] aren} aan] asa) ra 10 [oeened Tex em) aon] xa sa coss| oars 1 fireman nm erate otra |) (ara) ti7m] teat] isan] a 12 [Seresranar tome asa) ema] gars) 15 |ietrom ossomendoey acne tere orvey,| zat] (em) 88h] tea) tana] kas er 7 Pt wn ans aT a] Te] 3 3 cS [inser rune mtn 1. Jno arr oe oxsa] 18 |Eargepo wre re 106909 ot arate) abe & De beter ear ray tr (iso} an] a8 aan] ean) ata Bans t Glued ser xno co {iso] G39] iszn| oe eal 1" frat UnavtedFnarcin Reaus ere evewe by th Audit Comets on prove y Boss of reso: he meting el on + Fay 2017 2 The nme Fnac Ret fe Company fe quater anne maths nde 3s ester 206 rave ben Lined Reviews te Sato ‘tro he Company. {Secs Barowiga tom he bw entra bans have been varseras stoned anc ron ope wih thts, te aren ‘re tmarea doce ara oy une sey eres pledges an fe Quaraies rapt of uh abs Name of Bone Paso Name of Financia rnttion ana ara Bare SRY a Recto Conary Goa ror 0 ane 2e000'¢ [att Reeoranasin Campery Oe) Line fark Bode ‘Bosn |etemei snes ecoracon Conon Mes (ost anc ot Commerce Ban te |Edeanie Asn Recreation Congey Le’ lean uanorostie “Soveots [ert aos Socarcaon 8 eeenancion Pre Lina. Peo atone! Dank 235206 lm ute Satan & Reecon Pe Lite ar Goro Da Hoppnd wp ono Ween on sen Eoroug Worth dtefFasfr 2a an even e aeRTa Wi AGT Feamarcan Compares (6) aahnence defo on aveiabiy of sgrere wan Ass Recortucon Companies (ARC), he compar Nes ten he (COR? oner ar Beer data f carert/noncret balay eg atau of DOW 4 Asst pte ena 91 Desemoe 2016 he Company has accumu ens ard et wat hes been il ore. The anc reuse at ‘he Campeny ns wet os ung he cuenta grevau yeas an he Caroay'scaet hie ecoe ser sls aa re ce a previous ‘oo tanos te! it Teas Condor ada he ence ca materia sneaty at may aa sg carl Jb ate Companys bi) 12 ‘inins oe 2-g0ng encom However th tara els he Consuy have baen pare on 8 gos concer bats bes ona be Comey i ‘ay natn mh he ARC ers for etiorar 1 Denson scout of mataty of Foreign Cureney Convertible nds (FCCB ) on 0122092011 have bean zen on mat ane aecordraly exchange a ‘ctston hs re been coudeed Meveaer Payment ot FCCB sna be conslsred pane save ay be carte by Hon ba BIER. {Previous pr figures nave ean auuped an eranged whatever cee ak her cigs ston compari wi he cure pa FOR, SHAH ALLOYS Lrp P*m ooonat oasaaaTor ow Jt. MANAGING DRECToR (DIN 00261544)Ow talati € talati \ Chartered Asountorte Limited Review Report Review Report to The Board of Directors Shah Alloys Limited We have reviewed the accompanying statement of unaudited financial results of Shan Alloys Limited (the Company) for the period ended December 31, 2016. This statement is the responsibility of the 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 financial information Performed by the Independent Auaitor 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 period(s) 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 ANBICA CHAMBERS, NEAR OLD HIGH 'URA, AHMEDABAD 380 009. ‘EL 2754 4571-72, FAX: 2754 ti ‘ww alatiandtalatcom ‘Aigo at : VADODARA (0265) 205 8025-26, 231 0499, (0261) 325 8526, ANAND (02692) 656 405 (MUMBAI : 9667353743 BELHI (O11) 32553900 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 loss 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 December 31, 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 December 31, 2016. The Company's record indicate that had management done the provision, the Exchange Loss for the quarter ended 31** December would have been higher by Rs. 1,92,00,505/-. Accordingly, loss for the quarter ended 31" December 2016 have been under stated by Rs. 1,92,00,505/- and negative balance of reserves and surplus has been understated by Rs. 28,36,74,082/- as at 31st December 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 Tequired to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 , read with SEB) 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 Talati & Talati Chartered Accountants Firm Regn No. 110758W w a Umesh Talati Place of signature: Anmedabad (Partner) Date: 11M February 2017 Mem. No, 034834 Page 3 of 3