|SUDAL INDUSTRIES LIMITED is a company incorporated on 8th August, 1979 in the state of Maharashtra with the main object of manufacturing Aluminium Extrusions and Alloys. The company's unit, with annual installed capacities of manufacturing 5900 MT of Aluminium Extrusions and 3000 MT of Aluminium Alloys, is located on a lease hold land at
MIDC Ambad Industrial Area, Bombay Nasik Highway, Nasik, Maharashtra. The Company's plant was set up at a relatively low capital cost, the revalued figure of which is substantially higher.
The Company is engaged in the manufacture of various Aluminium Extrusions and has a well-equipped Quality Control Department and an R&D unit which is recognised by the Ministry of Science and Technology, Govt. of India. The company commands a reputation of a producer of quality products and has been supplying to Railways, Road Transport Authorities and giants/multinationals like BHEL, TELCO, Larson & Toubro, Philips, Siemens, Mahindra & Mahindra, Godrej, Bajaj Auto, Crompton Greaves, Asea Brown Boveri and Kiirloskar Electrodyne etc. The Company's products have found acceptance in the international market and the
company has exported to advanced countries like USA, UK, Germany and others. The company has also produced several import substitute items.
The Company has already been awarded a Licence for the Quality Systems Certification in accordance with IS 14002/ISO 9002 by the Bureau of Indian Standards.
The Company commenced the commercial production in May 1981, however, could not perform satisfactorily owing to several reasons beyond the control of the management. It is important to note that the reasons for the Company's unsatisfactory performance were common for most of the
Aluminium Extrusion Industry and almost all the companies in the Industry were incurring losses.
While stabilising the company's production in 1981-82 and 1982-83, the Company suffered a sever setback because of the inadequate availability of main raw material, Aluminium Ingots, which was mainly because of the drastic power cuts faced by the primary producers of Aluminium and inordinate delay in importing Aluminium Ingots by MMTC, the then channelising agency. Owing to the Govt's restrictive import policy the quantities imported were also far less than required for the smooth functioning of the industry.
The supply position of Aluminium Ingots could improve during the year 1986-87 when most of the primary producers of Aluminium set up facilities for power generation and NALCO also came into production. Consequently, the company's performance improved and company began posting profits.
During the period of just two years 1987-88 and 1988-89, the ompany could recover 54% of the accumulated losses incurred over the initial six years.
This could not last longer and the company's operations received another setback, this time because of the decontrol of Aluminium prices leading to spiral increase in raw material pnces. This rise along with rise in the other input costs could not be passed on fully to the customers.
The company has faced some labour problems intermittently upto June 1992 however there has been no closure of the company's unit. The company has faced several litigations in past but no litigation is pending except for 2 cases filed by the company for recovertng its dues amounting to
Rs.2.88 lakhs. There are no defaults of statutory/ institutional or bankers' dues other than those under reschedulement in terms of BIFR Scheme, the payment of interest on the dues to the Financial Institutions/Bank which will fall due until the commencement of the
implementation of the Scheme and an amount of Rs. 87.38 lakhs (principal) overdue as per the BIFR Scheme.
The company has been operating at low capacity utilisation of 36%, 33% & 33% in case of extrusions during the years 1991-92,1992-93 & 1993-94 respectively. During these years, the company has not produced Alloys.
The above reasons coupled with inadequate availability of working capital, under capacity utilisation and higher interest & overhead burden resulted in company incurring losses which stand at Rs.627.72 lacs as on 31st March, 1993. However the company's losses incurred are amongst the lowest in the industry.
As required under the applicable provisions of Sick Industrial Companies (Special provisions) Act, 1985, the company's proposal was referred to
BIFR for rehabilitation.
The Rehabilitation scheme has already been sanctioned by BIFR subject
to the Terms & Conditions mentioned under 'PRINCIPAL TERMS OF LOAN' stated in the second part of this document. The major concessions available to the company in terms of the Rehabilitation Scheme are as under:
a. Waiver of Rs.140 lakhs towards interest, penal interest and liquidated damages.
b. Deferment in payment of 67% of principal and interest repayable in 12 quarterly instalments starting from 15th August 1994.
c. Conversion of existing funded interest of Rs.42 lakhs into 10% Cumulative Convertible Preference Shares (CCPS) with an option of premature redemption.
d. Conversion of Irregularity of Rs.155 Iakhs Bank Borrowing into Working Capital Term Loan, repayable in 16 quarterly instalments starting from third quarter of the year 1994-95 and would carry interest @ 2.5% below minimum lending rate (MLR).
The Company would also get exemption from Section 41(1) and 43(B) of Income Tax Act, 1961.
During last three years, the company has not made any capital issue and there is therefore no investor complaint in respect of such issue.
FAVOURABLE SCENARIO TODAY
1. Because of the new found applications, wider acceptability and higher exports of Aluminium extrusions, the demand is expected to grow @ 11% per annum as per the Working Group appointed by the Govt. of India. The Group has estimated the domestic demand 102000 MT in 1994-95 besides the export demand of 10000 MT for the year. The said demand is expected to be approximately 75% of the installed capacity in India against 52% in 1990-91.
2. Because of the improved economic situation in the country, several consumer industries which consume company's products have come out of recession leading to better demand.
3. Over the last 2 years the Excise duty and Sales Tax on Aluminium Extrusions have been lowered from 40.25% and 5.73% to 20% and 3.74% respectively.
4. As a corollary to the above the sales realisation has also improved.
5. Need-based working capital facilities are released by the bank.
6. Considerable waivers worth Rs.140 Lakhs being granted to the Company under the rehabilitation scheme thereby reducing the company's liabilities and recurring interest burden. Repayment has also been deferred.
-Delist securities from Ahmedabad Stock Exchange (ASE) w.e.f. February 18, 2005.
-Sudal Industries Ltd has informed that the Board of Directors of the Company at its meeting held on December 29, 2008, inter alia, has appointed Shri Shyantanu S Chokhani (independent, relative of Promoter Director) and Shri Dinesh C Shah (Independent) as Additional Directors w.e.f. December 29, 2008.