Vanya Steels Private Limited director loans are 55% of facilities

Vanya Steels Private Limited had Rs 117.83 crore of loans from two directors on July 15, 2026, representing 55.1% of its Rs 213.79 crore total outstanding facilities. The director loans carried nil interest and four-to-six-year tenures, while Rs 80.97 crore of the subsidiary’s Rs 81.00 crore cash-credit and working-capital demand loan limits was outstanding.

How much of Vanya Steels’ outstanding facilities comes from directors?

Vanya Steels’ director loans were its largest reported funding component, totalling Rs 117.83 crore out of Rs 213.79 crore in outstanding facilities on July 15, 2026. Sandeep Kumar accounted for Rs 60.31 crore and Sunil Jallan for Rs 57.53 crore. The respective balances were 51.2% and 48.8% of the director-loan total, concentrating all such funding in two named lenders.

The 55.1% share uses the disclosed total facilities, which include a Rs 2.07 crore secured bank guarantee from Axis Bank. Excluding the guarantee, Vanya Steels had Rs 211.72 crore of fund-based outstanding facilities, and director loans represented 55.7% of that amount. A bank guarantee is a non-fund-based facility under which a bank guarantees an obligation, rather than a cash loan advanced to the borrower.

The Rs 117.05 crore disclosed sanctioned amount was lower than total outstanding facilities because the facility table recorded no sanctioned amount for either director loan. The sanctioned amount covered the Axis Bank term loan, vehicle loans, cash-credit and working-capital demand loan facilities, and the Axis Bank guarantee. As a result, outstanding borrowings cannot be measured against sanctioned limits for the director-loan balances.

What makes up Vanya Steels’ remaining Rs 95.96 crore of facilities?

The Rs 95.96 crore outside director loans consisted of Rs 80.97 crore of cash-credit and working-capital demand loan facilities, Rs 12.88 crore of Axis Bank term loans, Rs 2.07 crore of an Axis Bank guarantee, and Rs 3.21 lakh of vehicle loans. Cash credit and working-capital demand loans were identified in the repayment schedule as working-capital facilities.

The Rs 12.88 crore term-loan balance comprised Rs 12.18 crore under Emergency Credit Line Guarantee Scheme 5.0, or ECLGS 5.0, and Rs 70 lakh under an earlier Axis Bank loan. The ECLGS 5.0 facility was disbursed on June 30, 2026 for working capital, carried interest of 8.75% a year and had a 60-month tenure including a 12-month moratorium. The earlier loan financed a 100-tonnes-per-day rotary kiln, had Rs 70 lakh outstanding and carried interest of 8.35% a year.

Director loans exceeded all secured fund-based loans by Rs 23.94 crore on July 15, 2026. The Rs 93.89 crore secured fund-based amount combines the Rs 80.97 crore working-capital facilities, Rs 12.88 crore Axis Bank term loans and Rs 3.21 lakh in vehicle loans. This comparison shows that the reported funding mix depended more on director balances than on secured fund-based borrowings.

How fully drawn were Vanya Steels’ working-capital lines?

Vanya Steels had Rs 80.97 crore outstanding against Rs 81.00 crore of cash-credit and working-capital demand loan limits, leaving Rs 2.61 lakh undrawn on July 15, 2026. Combined utilisation was 99.97%, based on Rs 60.97 crore outstanding from Axis Bank and Rs 20.00 crore from YES Bank.

Axis Bank’s facilities included a Rs 45.00 crore line that was fully outstanding and repayable on the due date at 8.55% annual interest. Its Rs 16.00 crore demand facility had Rs 15.97 crore outstanding and carried 7.90% interest. YES Bank’s Rs 20.00 crore line was fully outstanding, repayable on the due date and carried 8.35% interest.

The disclosure does not state a plan to increase Vanya Steels’ working-capital limits. It states that sales are slightly affected during the rainy season because retail consumers do not actively undertake construction activity. The document also states that no circumstances had arisen after March 31, 2026 that were expected to materially and adversely affect the company’s operations, trading, profitability, assets or ability to pay liabilities within 12 months.

What are the terms of Vanya Steels’ director loans?

Vanya Steels disclosed both director loans at nil interest, with four-to-six-year tenures and lump-sum repayment. The Rs 60.31 crore loan from Sandeep Kumar and Rs 57.53 crore loan from Sunil Jallan were each stated to serve general corporate purposes. Their repayment structure differs from the monthly repayment terms attached to the Axis Bank term loans and vehicle loans.

The facility summary classified both director balances as unsecured loans. However, the detailed repayment schedule described Sandeep Kumar’s Rs 60.31 crore loan as secured, while it did not apply a security label to Sunil Jallan’s Rs 57.53 crore loan. The disclosure separately states that unsecured loans are only from directors and that lenders have no power to recall any loans at any time.

Neither director loan had a disclosed sanctioned amount, unlike the Rs 12.18 crore ECLGS 5.0 term loan and the Rs 81.00 crore aggregate working-capital limits. The prospectus does not disclose a plan to repay, refinance or convert the Rs 117.83 crore of director loans. Their continued inclusion in the funding mix therefore depends on the stated four-to-six-year loan tenures and the disclosed lump-sum repayment terms.

Conclusion

Vanya Steels’ July 15, 2026 facility profile was led by Rs 117.83 crore of nil-interest director loans, which made up 55.1% of Rs 213.79 crore in total outstanding facilities. Bank working-capital funding was also heavily used, with Rs 80.97 crore outstanding against Rs 81.00 crore of available cash-credit and working-capital demand loan limits.

The next disclosed points to watch are the four-to-six-year lump-sum terms of the director loans, the differing security descriptions for Sandeep Kumar’s loan, and the limited Rs 2.61 lakh of unused working-capital capacity. The prospectus discloses no director-loan refinancing plan or increase in working-capital limits, while the Rs 12.18 crore ECLGS 5.0 loan includes a 12-month moratorium within its 60-month tenure.