AIA Engineering Ltd

Stock Opportunities Not-so-Hidden Gems
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Very good analysis by Dr Vijay Malik on AIA

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One of the major overhang in the Canadian Operations seems to have been cleared now. The company now has a clarity on the taxation w.r.t Canadian Operations. Also, looks like the verdict is in favor of the company.

https://www.bseindia.com/xml-data/corpfiling/AttachLive/af5b2447-661a-4fb4-9dbb-1aabc0ec6abd.pdf

Reference From Annual Report

The Canada Border Service Agency (CBSA) had initiated investigations with respect to alleged dumping and subsidizing of certain grinding media from India based on complaint filed by Magotteaux Limitee, located in Magog Quebec. CBSA is carrying out its review of submissions made by the Holding Company and the final determination on the matter is expected by July 2021. The applicable rules and regulations enable CBSA to levy an interim duty while the matter continues to be under investigation. Accordingly, CBSA has imposed interim duty of 32.2% duty on certain grades of grinding media exported from India into Canada with effect from 1 May 2021. This duty will be applicable till the final determination is done which as explained above is expected to be concluded by July 2021.

Page 226 in the Annual Report (link)

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Interesting.

https://www.bseindia.com/xml-data/corpfiling/AttachLive/d87ca496-9cfa-4e96-b47e-0f5794e77a69.pdf

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Indeed… I see both irresponsibility first for causing this & transparency for sharing it. Rare lol.

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There was a subsequent clarification issued by the company whereby the interim penalty charged by the Canadian authorities was quashed.

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3 quick questions:

  1. Does anyone know anything on its succession plan? They had mentioned they will appoint a global CEO, mostly laterally.
    The 2 daughters of Bhadreshwar Shah are also on the board for quite some time but it doesn’t look like they would be successors

  2. What is the difference between grinding media balls and castings?

  3. Does anyone have any information on Scaw - African licensee of magotteaux (now stake 51%)? Whether they have modern tech installed/ any capex history to have technologically advanced operations etc.? Scaw is said to have 2,00,000 TPA capacity of high chrome grinding media in Africa.