National General Industries Limited is an **ISO 9001:2015 Certified** company specializing in the production and marketing of steel products. The company operates as a dedicated manufacturer of long products, primarily focusing on **Engineering Steel** for industrial and structural applications. The company’s operational core is its **Re-Rolling Unit**, strategically located in Northern India to serve regional industrial hubs. | Facility Type | Location | Key Product Focus | | :--- | :--- | :--- | | **Re-Rolling Unit** | **9th Mile Stone, G.T. Road, Mohan Nagar, Ghaziabad, UP** | **Engineering Steel** (Rounds, Squares, Flats) | | **Registered Office** | **New Friends Colony, New Delhi** | Corporate Administration & Governance | #### **Specialized Product Portfolio** The company manufactures a variety of steel profiles designed for machining, forging, and fabrication: * **Rounds:** Cylindrical steel bars used extensively in the production of engineering components and tools. * **Squares:** Square-shaped bars utilized in machinery parts and structural frameworks. * **Flats:** Rectangular steel sections essential for the automotive industry, base plates, and general fabrication. --- ### **Strategic Asset Optimization and Capital Restructuring** The company is currently executing a strategy focused on streamlining its balance sheet and disposing of non-core assets to enhance financial agility. #### **Asset Rationalization** In **December 2023**, the company completed the sale of vacant land in **Mandi Gobindgarh, Punjab** (Villages Chattarpura and Ajnali). The land, originally acquired in **2004** for a deferred steel plant project, was sold to a related party, **Modi Steel Private Limited**, for a consideration of **₹2.06 Crores**. This sale followed a management determination that no viable business proposals existed for the site, allowing the company to liquidate an underutilized asset. #### **Capital Regularization and Share Forfeiture** The Board is actively addressing long-standing issues regarding its capital structure: * **Final Call Money:** In **February 2025**, the Board initiated a final call for payment on **1,048,600 outstanding partly paid-up equity shares**. The call required **₹7.50** against face value and **₹2.50** against share premium, plus **12% interest per annum**. * **Forfeiture Action:** As of **December 2025**, the company moved to forfeit amounts previously paid on these shares (aggregating **₹5.00 per share**) due to non-payment of calls originating from the **1995 Letter of Offer**. --- ### **Financial Performance and Segment Analysis** The company classifies its operations into two primary reporting segments under **Ind AS 108**: **Steel** (manufacturing and job work) and **Other** (investment activities). #### **Annual Audited Results** Recent financial performance shows a transition toward service-based revenue (job work) despite a decline in overall net profitability following a high-base year. | Particulars (INR Crore) | FY 2024-25 (Audited) | FY 2023-24 (Audited) | | :--- | :---: | :---: | | **Value of Sales** | **1.65** | **4.93** | | **Job Work Services** | **8.70** | **7.88** | | **Other Income** | **1.63** | **2.48** | | **PBDIT** | **1.69** | **1.88** | | **Profit Before Tax (PBT)** | **1.21** | **3.19** | | **Net Profit** | **0.94** | **3.00** | *Note: The **₹3.00 Crore** profit in FY24 was significantly bolstered by an **exceptional gain of ₹1.64 Crore** from land sales.* #### **Current Fiscal Year Performance (FY 2025-26)** Un-audited results for the first half of the current fiscal year indicate a challenging environment: * **H1 Revenue:** Total revenue reached **₹4.51 Crores** (Steel segment contributing **₹3.72 Crores**). * **Profitability:** The company reported a **Net Loss of ₹46.09 Lakhs** for the half-year ended September 2025. * **Balance Sheet Strength:** As of September 30, 2025, **Total Segment Assets** stood at **₹39.96 Crores** against **Total Segment Liabilities** of **₹5.70 Crores**. --- ### **Governance, Leadership, and Shareholding** The company maintains a conservative governance profile with a focus on long-term stability and promoter commitment. * **Board Composition:** As of **March 31, 2025**, the Board consists of **six Directors**, maintaining a 50/50 split between **three Executive/Non-Independent** and **three Independent Directors**. * **Leadership:** **Mr. Pawan Kumar Modi** serves as **Chairman & Managing Director**, with his tenure extended through **September 30, 2027**. * **Promoter Consolidation:** In late 2025, significant equity portions were consolidated within the promoter group via inter-se gifts. **Ashok Kumar Modi** acquired **13.16% (7,27,745 shares)** and **Pawan Kumar Modi** acquired **6.33% (3,49,786 shares)**. * **Audit Continuity:** **M/s. Deepak Bansal & Associates** have been appointed as Secretarial Auditors for a five-year term (**FY 2025-26 to FY 2029-30**). * **Dividend Policy:** The Board has **not recommended a dividend** for FY24 or FY25, opting to retain profits to strengthen the internal capital base. --- ### **Market Outlook and Risk Landscape** The company’s performance is closely tied to the Indian macroeconomic environment and global steel trade dynamics. #### **Growth Drivers** Management is positioning the company to benefit from India's projected **6.5% GDP growth** for **FY 2025-26**, supported by: * **Infrastructure Spending:** A central government capex budget of **₹11.2 trillion**. * **Housing Demand:** The expansion of **PM Awas Yojana (PMAY)** targeting **2 crore additional houses**. * **Industrial Utilization:** Domestic manufacturing capacity utilization remains healthy at above **75%**. #### **Sector-Specific Risks** The steel industry faces several headwinds that impact pricing and margins: * **Import Surges:** India became a net importer in FY25, with imports reaching **10.5 MnT**, primarily due to global overcapacity and Chinese economic cooling. * **Trade Barriers:** Protectionist policies in the US and other regions have diverted global steel flows toward India, depressing domestic prices. * **Raw Material Volatility:** Geopolitical tensions in **Russia-Ukraine** and the **Middle East** continue to threaten the stability of input costs. #### **Demand Projections by Segment (FY 2025-26)** | Segment | Projected Growth | Key Drivers | | :--- | :--- | :--- | | **Long Steel (Core Focus)** | **5.5% - 7.5%** | Infrastructure, Railways, Public Housing | | **Flat Steel** | **12% - 14%** | Auto industry, Consumer durables, PLI schemes | | **Overall Consumption** | **9% - 10%** | Urbanization, Defence, Highway corridors | The company remains focused on navigating these risks by maintaining an **arm’s length** approach to related party transactions and avoiding exposure to foreign exchange risks or complex commodity hedging.