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MIRA
INFORM REPORT
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Report Date : |
29.08.2007 |
IDENTIFICATION DETAILS
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Name : |
ELECTROTHERM ( |
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Registered
Office : |
A-1, Skylark
Apartment, |
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Country : |
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Financials (as
on) : |
31.03.2007 |
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Date of
Incorporation : |
29.09.1986 |
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Com. Reg. No.: |
04-9126 |
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CIN No.: [Company
Identification No.] |
L24110GJ1986PLC009126 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
AHME00193E |
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Legal Form : |
Public Limited
Liability Company. The company’s shares are listed on the Stock Exchange |
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Line of
Business : |
Manufacturer of Medium Frequency Induction Melting Furnaces, Metal Refining
Konverter, Induction Ladle Refining Furnace, Induction Heating/Hardening
Equipments, Submerged Arc Furnace & a host of allied products. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 23963200 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a
well-established company having satisfactory track. Trade relations are fair.
General financial position is satisfactory. Payments are usually correct and
as per commitments. The company can
be considered good for normal business dealings at usual trade terms and
conditions. |
LOCATIONS
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Registered
Office : |
Survey No. 72,
Village Palodia, Via- Thaltej, Tal.: Kalol, District: Gandhinagar, |
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Tel. No.: |
91-2717-234553-57/234613-15 |
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Fax No.: |
91-2717-234616/234866 |
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E-Mail.: |
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Website |
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Correspondence
Office : |
A-1, Skylark
Apartment, |
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Tel. No.: |
91-79-26746474/26748855 |
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Fax No.: |
91-79-26740923 |
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Factory 1 : |
Survey No. 72,
Village: Palodia, Tal: Kalol, District: Gandhinagar- 382115, |
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Factory 2 : |
Survey No. 325, Village:
Samakhiyali Taluka, Bhachau, District Kutchh |
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Factory 3 : |
414/1, GIDC Phase
– II, Vatva Industrial Area, Ahmedabad – 382445, |
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Factory 4 : |
Village: Dhank,
Taluka: Upleta, District: |
DIRECTORS
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Name : |
Mr. Mukesh
Bhandari |
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Designation : |
Chairman and
Managing Director |
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Name : |
Mr. Shailesh
Bhandari |
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Designation : |
Whole Time
Director |
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Name : |
Mr. Harish Sharma |
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Designation : |
Whole Time
Director |
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Name : |
Mr. Narendra
Dalal |
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Designation : |
Whole Time
Director |
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Name : |
Mr. Avinash
Bhandari |
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Designation : |
Director |
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Name : |
Mr. Naveen Nakra |
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Designation : |
Director |
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Name : |
Mr. Nilesh Desai |
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Designation : |
Director |
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Name : |
Mr. Madhusudan
Somani |
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Designation : |
Director |
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Name : |
Mr. Ram Singh |
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Designation : |
Director |
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Name : |
Mr. P K Prasad |
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Designation : |
Director |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Indian Promoters |
3134875 |
65.77 |
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Banks, Financial
Institutions, Insurance Company, etc. |
150000 |
3.14 |
|
Mutual Funds and
UTI |
20300 |
0.43 |
|
Private Corporate
Bodies |
426125 |
8.94 |
|
NRIs/ OBCs |
58000 |
1.22 |
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Indian Public |
977075 |
20.50 |
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TOTAL |
4766375 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Medium Frequency Induction Melting Furnaces, Metal
Refining Konverter, Induction Ladle Refining Furnace, Induction
Heating/Hardening Equipments, Submerged Arc Furnace & a host of allied
products. |
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Products : |
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GENERAL INFORMATION
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Bankers : |
Bank of |
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Facilities : |
-- |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Mehta Lodha and Company Chartered
Accountants |
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Address : |
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Associates : |
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Subsidiaries : |
·
Dharnendra Die
& Engineering Works ·
Faraday Shop ·
Falcon Cables
Private Limited
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CAPITAL STRUCTURE
As on 30.09.2006
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
50000000 |
Equity Shares |
Rs. 10/- each |
Rs. 500.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
21134708 |
Equity Shares |
Rs. 10/- each |
Rs. 211.347 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
211.300 |
167.700 |
83.300 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1918.200 |
269.200 |
169.500 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
2129.500 |
436.900 |
252.800 |
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LOAN FUNDS |
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1] Secured Loans |
3081.100 |
1827.900 |
556.100 |
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2] Unsecured Loans |
780.200 |
312.800 |
334.000 |
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TOTAL BORROWING |
3861.300 |
2140.700 |
890.100 |
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DEFERRED TAX LIABILITIES |
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TOTAL |
5990.800 |
2577.600 |
1142.900 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
2784.100 |
1527.300 |
715.000 |
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Capital work-in-progress |
973.300 |
362.700 |
0.000 |
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INVESTMENT |
0.700 |
0.700 |
0.200 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
2028.600
|
749.900
|
418.200 |
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Sundry Debtors |
1386.000
|
622.000
|
213.400 |
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Cash & Bank Balances |
410.400
|
212.200
|
88.100 |
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Other Current Assets |
0.000
|
0.000
|
0.000 |
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Loans & Advances |
486.700
|
242.300
|
138.600 |
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Total
Current Assets |
4311.700
|
1826.400 |
858.300 |
|
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
2096.000
|
1100.600
|
407.800 |
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Provisions |
105.600
|
55.300
|
22.800 |
|
Total
Current Liabilities |
2201.600
|
1155.900 |
430.600 |
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Net Current Assets |
2110.100
|
670.500 |
427.700 |
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MISCELLANEOUS EXPENSES |
122.600 |
16.400 |
0.000 |
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TOTAL |
5990.800 |
2577.600 |
1142.900 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
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Sales Turnover |
7465.300 |
3676.400 |
2053.800 |
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Other Income |
2988.800 |
115.800 |
133.700 |
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Total Income |
7754.100 |
3792.200 |
2187.500 |
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Profit/(Loss) Before Tax |
614.700 |
222.500 |
147.000 |
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Provision for Taxation |
181.200 |
104.100 |
12.000 |
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Profit/(Loss) After Tax |
433.500 |
118.400 |
135.000 |
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Expenditures : |
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Raw Materials |
4876.600 |
2505.400 |
1591.400 |
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Excise Duty |
156.500 |
229.200 |
216.100 |
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Power and Fuel Cost |
608.900 |
212.000 |
12.200 |
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Other Manufacturing Expenses |
472.300 |
125.800 |
92.800 |
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Employee Cost |
153.800 |
90.900 |
44.200 |
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Selling and Administration Expenses |
309.800 |
160.200 |
54.500 |
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Miscellaneous Expenses |
32.700 |
83.400 |
4.300 |
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Interest |
350.300 |
92.300 |
15.900 |
|
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Depreciation |
178.500 |
70.500 |
9.100 |
|
Total Expenditure |
7139.400 |
3569.700 |
2040.500 |
|
QUARTERLY
|
Year |
30.06.2007 |
|
Type |
1st
Qtr |
|
Sales
Turnover |
2466.200 |
|
Other
Income |
35.900 |
|
Total
Income |
2502.100 |
|
Total
Expenditure |
2160.400 |
|
Operating
Profit |
341.700 |
|
Interest |
140.600 |
|
Gross
Profit |
201.100 |
|
Depreciation |
40.600 |
|
Tax |
19.200 |
|
Reported
PAT |
121.300 |
200706 Quarter 1 --------------- Notes Expenditure Includes (Increase)/Decrease in Stock in Trade Rs (82.800) million Consumption of Raw Materials Rs 1710.918 million Staff Cost Rs 49.767 million Manufacturing & Other Expenditure Rs 482.557 million Tax includes Provision for Taxation Provision for Current Tax Rs 18.183 million Provision for Deferred Tax Rs 20.000 million Provision for FBT Rs 1.000 million Status of Investor Complaints for the quarter ended June 30, 2007 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 04 Complaints disposed off during the quarter 04 Complaints unresolved at the end of the quarter Nil 1. The above results were reviewed by the Audit Committee and subject to limited review by the auditors of the Company. 2. The Board of Directors at its meeting held on July 30, 2007 had approved the above results and its release. 3. The company has received Rs 408 million from proceeds of FCCB from International Finance Corporation during the quarter ended on June 30, 2007. The proceeds of FCCB have been fully utilised towards Capital Expenditure. 4. Figures have been regrouped / reclassified / rearranged where ever necessary.
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity
Ratio |
|
2.34 |
4.39 |
2.92 |
|
Long
Term Debt-Equity Ratio |
|
1.70 |
3.36 |
2.28 |
|
Current
Ratio |
|
1.23 |
1.17 |
1.39 |
|
|
|
|
|
|
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Fixed
Assets |
|
3.13 |
3.00 |
4.39 |
|
Inventory |
|
5.37 |
6.29 |
7.78 |
|
Debtors |
|
7.44 |
8.80 |
11.75 |
|
Interest
Cover Ratio |
|
2.75 |
3.41 |
10.25 |
|
Operating
Profit Margin(%) |
|
15.32 |
10.48 |
8.37 |
|
Profit
Before Interest And Tax Margin(%) |
|
12.93 |
8.56 |
7.93 |
|
Cash
Profit Margin(%) |
|
8.20 |
5.14 |
7.02 |
|
Adjusted
Net Profit Margin(%) |
|
5.81 |
3.22 |
6.57 |
|
Return
On Capital Employed(%) |
|
22.90 |
17.00 |
24.21 |
|
Return
On Net Worth(%) |
|
36.65 |
41.75 |
87.71 |
STOCK PRICES
|
Face Value |
Rs.10/- |
|
High |
Rs.488.85/- |
|
Low |
Rs.475.00/- |
LOCAL AGENCY FURTHER INFORMATION
History
Subject, the
Ahmedabad based company, was started in the early eighties by two enterprising
brothers Mukesh Bhandari and Shailesh Bhandari, along with Harish Sharma and
Narendra Dalal.
Subject manufactures medium frequency induction melting furnaces, induction
heating and hardening equipment, single electrode DC arc furnaces, secondary
metallurgical equipment like DC ladle refining furnaces, etc. subject is also
into wind power generation. Since its first order of 350-KW Medium frequency
induction furnace in Jun 1983, it has installed over 300 induction furnaces
allover
Subject has set up a sister concern for
new products like laser cutting machines for cutting stainless steel to very
close tolerances which otherwise is a difficult operation.
Subject has received the prestigious 'Dhatu Nayak' award for the year 1997-98
and 1998-99 for indigenous development, manufacture & Commissioning of
India's largest Medium Frequency Induction Melting Furnace of 7500 KW/15 Ton
capacity for Alloy steel and key contribution to stainless steel and alloy
steel industry by developing indiginously developing cost effective equipment
for manufacturing of stainless steel through induction furnace route
respectively.
The Company also supplied
OPERATIONS:
The Indian economy is growing at more than 8%. The manufacturing sector now
contributes to around one-fourth of the total GDP and industrial output has
crossed USD 65 Billion.
During the year, the Company has achieved a turnover of Rs. 73,08.865 Millions
in comparison to the turnover of Rs.3447.210 millions of previous year, showing
a growth of over 112%. Net profit after provision for taxation (Before Prior
Period Adjustment) during the year is Rs.432.035 Millions against Rs.187.935
Millions during the previous year, showing an increase of 130%.
CAPITAL PROJECTS:
The company is undertaking an aggressive capacity addition program besides
launching new products. The company has assessed the requirement of finances
for these initiatives. All the plant capacity addition programs are to be
financed with a debt to equity ratio of 60:40. In this connection the company
placed shares with a private equity player ((M/s The Western India Trustee and
Executor Company Ltd (India Advantage Fund VI), through their investment
managers M/s ICICI Venture Fund Management Company Ltd.)) to raise Rs.820
millions. The company is in the process of raising USD 25 Million from
International Finance Corporation,
The company is nearing completion of its project at
The company has also established manufacturing capabilities to produce Electric
vehicles and has expanded the same to produce 150000 Electric Scooters per
annum.
EXPORT:
The company is keenly pursuing projects to increase its foot print in the
different parts of the world. The company has now started providing consultancy
services in engineering and project management to their clients outside
The Company's exports continue to increase each year. During the year, the
export turnover was Rs.515.1 Millions. In addition the company made exports
which are considered as deemed exports of Rs 17.62 millions. These two together
account for an export turnover of Rs 69.13 millions. In comparison the exports
during the previous year were Rs.411.1 Millions. Several initiatives have been
taken which has resulted in an export order booking of more than Rs. 2000
Millions. In the current year as well as in coming years, the company is
targeting a growth of more than 100% on the export front.
QUALITY & ENVIRONMENT:
The company is focusing on its quality and after sales service. Whereas the
Palodia Division enjoys ISO 9001 Certification, the Kutch Products are BIS
Certified. This emphasis on quality has enabled the company to position its
product above the competitors and Electrotherm brand is now recognized as a
symbol of quality. Subject is recognized as a company which tailors its
products according to the requirements of the customers instead of trying to
push the products which it is comfortable in manufacturing. This customer focus
has earned a good name for the company and the company
Has a record that none of its customers ever change their loyalties in favour
of its competitors. In a short time, all the products which the company
launched at its newly established engineering and steel works at
Foreign Exchange Earning and Outgo:
(Activities Relating to Export:
The Company has been making efforts for direct exports at international level.
Company has executed export orders worth of Rs 379.242 Millions during the year
and has further diversified its export market
MANAGEMENT DISCUSSION
AND ANALYSIS REPORT
An Overview of Economy:
The world's largest democracy continues to grow from strength to strength. The
country's GDP is consistently growing above 8%. The investment rates are
healthy and can sustain an annual growth rate of more than 8%. The scenario is
generally promising and they are very optimistic about the future. The risk
factors which can dampen the growth are a fact that
One worrying factor is the increase in interest rates. Many individual
depositors would like to see the interest rates going up. Senior citizens may
appear to be happy that the banks are giving them better return on their fixed
deposits. But for millions of young professionals, higher interest rate means
higher EMIs on their house loans, car loans, consumer loans and even holiday
loans which they have taken:
To discourage excessive borrowing, the RBI has been pushing up interest rates
by raising its benchmark lending rate of banks and also reducing the amount
they can lend by increase in their cash reserve ratio or the portion of deposit
they must keep with the central bank. The reason for this drastic step by The
Reserve Bank of
On their part, they are taking steps that the higher interest rates do not
adversely affect their profitability. They are taking steps to borrow from
lenders abroad for their expansion activities in form of external commercial
borrowings. Such loans are available at 7 to 7.5%. The interest rate is
normally 2% above the six-month London Inter-Bank Offered Rate or LIBOR. With
LIBOR close to 5.5%, it is possible to get ECBs at 7.5% and keep the interest
burden within acceptable levels. They have to guard against any depreciation of
rupee vis-a-vis dollar. In the current scenario appreciation of dollar looks
unlikely and with their rising exports, they have a natural hedge.
Internal Control Systems And Adequacy:
The company has proper internal mechanism, which monitors the adequacy and
effectiveness of the internal control. Looking to the growth of the business,
the company has further strengthened the internal controls and Management
analysis. They also have a regular monitoring of business risk control procedure
by the Internal Audit Department, which is reviewed by the Audit
Committee.
Cautionary Statement:
Statements in this management's Discussions and Analysis detailing the
Company's objectives, projections, estimates, expectations or predictions may
be 'forward looking statements' within the meaning of applicable securities
laws and regulations. Actual results could differ materially from those
expressed or implied. Important factors that could made a difference to the
Company's operations include global and Indian demand-supply conditions,
finished goods, feedstock availability and prices, cyclical demand and pricing
in the Company's principal markets, changes in Government regulations, tax
regimes, economic developments within India and the Countries within which the
Company conducts business and other factors such as litigation and labour
negotiations.
Business Performance:
From its humble beginning 25 years ago, Subject has become a force to reckon with.
Their journey has been bumpy at times and exciting otherwise. They have clocked
their best ever performance for the year ended Mar 31, 2007 with sales growing
by more than 112%. Their net worth has multiplied nearly 4 times since last
year and so has their market capitalization. They are market leaders in most of
the segments in which they operate. They are continuously investing to sustain
future growth.
There are two traits of Subject which has made this track record possible. They
are continuously embracing change, without changing their core values. No
matter how successful they are, there is always a desire to achieve more and
perform better. They are continuously investing in future because they know
that to reap benefits tomorrow, they must sow the seeds today. With operational
success of past few years behind them, they look to the future with more
enthusiasm.
Future Plan:
The last few years have been very challenging and of great significance for the
company. The company has been undergoing major transformations in its market
segments, business mix, revenue mix and profitability. The company has
undertaken an elaborate exercise to re-engineer its revenue mix towards higher
value added business with a view to improve shareholder value.
From a single product and single market segment company, the company has
matured into a diversified enterprise.
The Engineering, Capital Equipment and Project Division:
The engineering, capital equipment and project division will continue to focus
on providing metallurgical solutions to the industry by making available to
them superior products and technologies. The company expects that exports will
become a major component of revenue in this segment. The existing scale of
operations have demonstrated their project execution and management
capabilities and their strong cash flows in this segment coupled with a huge
reservoir of human and intellectual capital has created a unique opportunity
for future growth. The company has signed an MOU with Beichen Hi Tech
Industrial Park,
Construction Steel Division:
Last year the company entered the construction steel industry by setting up a
steel unit in
Stainless Steel Division:
The company pioneered the growth of stainless steel production in the country
by introducing MRK (Metal refining Konverter) a few years ago and has now
decided to enter stainless steel market by setting up modern facilities in
their
Structure and Alloy Steel Division:
The demand for structural steel and alloy steel continues to grow on account of
huge growth in infrastructure, power sector and automobile sector. With
unprecedented growth taking place in transmission lines, power distribution,
communication and automobiles, the company sees for itself a huge opportunity
in this segment which will become its fourth revenue stream.
Ductile Iron Pipe Division:
Ductile Iron pipes advantages over normal cast iron pipes, HDPE pipes, welded
pipes and concrete pipes due to its superior corrosion resistant properties and
hygienic qualities. There is a huge demand for pipes in the country and
internationally. The company has made a modest entry into this segment by
setting up a state of tile art integrated plant. The entire plant and equipment
has been made with in-house technology, which has ensured very low capital
investment vis-a-vis its competitors. The company sees a huge growth
opportunity in this revenue stream.
Electric and Hybrid Electric Vehicle Division:
At Subject they have set for themselves a tremendous pace for innovation and
development, from innovation to evolution, from steel to wheels. Subject has
innovated in all their endeavors to provide the utmost value to its customers.
Subject has completed a successful launch of its Electric Vehicles in the
Five years ago,
INTERNATIONAL PARTNERSHIPS:
Two years ago, the company entered into a partnership agreement with HYL
Technologies of Mexico, which is now apart of Techint Technologies,
The company has also been allotted land at
Website Details Attached:
Company Profile:
Subject as a trusted name in foundry and Steel Industry for providing
unmatched technological leadership for nearly two decades. Subject is renowned
for providing sophisticated technologies & offering customized
metallurgical turnkey solutions irrespective of its nature, size &
geographical boundaries. With the new liberalized environment that has seen a
rise in the customer expectations for uncompromising quality products backed by
cost effectiveness & reliability, Subject has marched ahead with impressive
performance year after year. Today Subject does not confine itself to catering
only to local patrons but to customers across the globe.
Subject caters to Ferrous & Non-Ferrous foundries and metal melting
industry by manufacturing Medium Frequency Induction Melting Furnaces, Metal
Refining Konverter, Induction Ladle Refining Furnace, Induction
Heating/Hardening Equipments, Submerged Arc Furnace & a host of allied
products.
Subject has achieved market leadership in its core products
because of excellence and dedication towards continuous improvement. Today
Subject has a clientele of over 750 installations. Subject has exported its
products to
Subject is distinguished by the skill & depth of
leadership /experienced team. Prime importance is given to prompt after sales
service. Subject's operations are spread over 30 locations with 6 Regional
Offices and offices at
Research & Development has been the basic strength of
the company right from the date of its inception. Subject takes into account
the specific needs of steel industry and local ambient conditions in designing
equipment. Subject’s pursuit for newer and better solutions has led to the
development of sophisticated, rugged, efficient, and cost-effective & user
friendly equipment for the metallurgical industry. Novel methods of producing
steel are investigated with a view to drastically reduce the heat time and
capital cost associated with the conventional processing methods. The efforts
put in by the team is not gone unnoticed, subject has been conferred with 21
prestigious National awards.
"The urge to delve into future by developing equipment
and process for tomorrow set new industry standards. Always a leader, all these
efforts translated not only into enriched customer satisfaction but also ISO : 9001 certification by RWTUV
Germany."
Mammoth infrastructure nearly two decades of experience in
developing concurrent technologies and the ability to compete globally in the
backdrop of boundaries business opportunities prompted subject to introspect
and fine tune its activities. The result fine tuning and further expanding its
reach by providing most modern technologies feat, man and material any where in
the world in time.
Providing efficient, reliable products, more effective
utilization of its highly trained & experienced manpower & to open up
new vistas in the global market are now priorities on subject's agenda.
All said and done, subject has embarked on a revolutionary
re-shaping of its future growth in the country & around the world. And absolutely
nothing can stop it now…..
History
A dream of technocrat to serve Indian Steel Industry lead to
Inception of Electrotherm (
At a time when capability of multinationals was the only
excepted norm in
Promoters of Subject visualized this gap in technology and
took upon itself indigenous development of Medium Frequency Induction Melting
Furnace at a time when these furnaces were imported into
Subject is working towards infusing diversity within the
company as a part of its corporate culture and lays special emphasis on equal
opportunity and fairness. The diversity element will play a vital role in
building future needs to serve all parts of their highly diverse country as
also the disurning entrepreneurs all over the world.
Subject has distinction of manufacturing 3 T to 20 T Medium
Frequency Induction Melting Furnaces for first time in the country. On rough
estimates, over 4 million MT of steel is melted in
Infrastructure
Subject's full-fledged state-of-the-art manufacturing and testing
facilities are spread over an expansive area of 70,000 sq.mtrs at Palodia, on
the outskirts of Ahmedabad. It has well equipped machine / assembly shops
facilitated with the latest CNC machines & host of special purpose machines
for better precision in machining and over all quality of its products.
Subject has implemented World Class Manufacturing concepts with focus on
training and Continuous Improvement. Subject also has its own in-house
competent information technology department to cater to the total needs of the
company. "TUV CERTIFICATION BODY OF GERMANY" accredits this plant
with ISO 9001 certification for well documented Quality Systems and Procedures
and for practicing International Quality standards in every sphere of its
activity.
Superior Standards; Ruthless Benchmarking
Subject believes in TQM (Total Quality Management) approach and
therefore each and every component has to pass through stringent Quality
Control procedure. At work in subject is a quality chain that binds all parts
of their operations- from raw material sourcing to processing, from research and
development to production, from stage wise quality inspection to delivery.
In fact, every time a customer sources a world class equipment from
them, and they custom-design and deliver it to their satisfaction, that's not
the end of the story for them. It's the beginning of a long and mutually
rewarding industrial relationship. They continue to monitor the performance of
the equipment through frequent client interactions and feedback. This enables
them to continually upgrade their own abilities, and satisfy even the most
demanding clients.
Subject takes pride of being the only company in
To ensure that visualized Quality is built into its
products, subject has a well equipped Quality Assurance department manned by
Mechanical and Electronics Engineers.
subject's works regularly undergo Statutory &
Independent inspections by LLOYDS, UDHE, SGS, INSPECTORATE GRIFFITH, EIL (
ENGINEERS (INDIA) LIMITED).
The Quality Policy at subject dictates: "they are
committed to customer satisfaction by providing cost effective, reliable
products and services. For continuous improvement, they rely on training,
design and development." This is a dictum at Et at every level.
ISO-9001 certification is taken by one and all in subject as
an added responsibility to further its already stringent quality parameters in
their organization at every level so that subject is always at the forefront in
providing world last equipment.
Core Team
With the opening of barriers in international co-operation
and implementation of new economic policy in
Being a research and development oriented company with
future plans for backward and forward integration, subject has
been recruiting Graduate/Post Graduate Engineers & Management students from
prime institutes of
With qualified Electrical, Electronics and metallurgy
Engineers, subject is able to offer the customers better productivity and value
added products. subject can take legitimate pride in the form
of having the largest group of Metallurgical Engineers compared to any
Metallurgical equipment manufacturer in
subject Family comprises of professionals broadly
categorized as follows:
60% of employees possess Engineering and/or Post-Graduate
Qualification
Mechanical Engineers
08%
Metallurgical Engineers
07%
Electrical/Electronics Engineers
39%
Industrial Engineers
02%
Post Graduates
04%
Subject is working towards infusing diversity within the
company as a part of its corporate culture and lays special emphasis on equal
opportunity and fairness. The diversity element will play a vital role in
building future needs to serve all parts of their highly diverse country as
also the disurning entrepreneurs all over the world.
Milestones
1982 - Subject started as a servicing unit for Electrical &
Electronic equipment.
1983 - Subject received its First Order of 350 KW/ 500 KG.
1984 - Designed and developed
1989 - Subject enters EXPORTS- Orders from
1992 - Developed & Commissioned India's first Integrated
manufacturing line incorporating MF Induction Melting Furnace, Metal Refining
Konverter and DC Ladle Refining Furnace at Viraj Alloys Limited.
1995 - Developed & Commissioned a 12MT MF Induction Melting Furnace,
15 MT Metal Refining Konverter and 18 MT Twin Electrode DC Ladle Refining
Furnace at Stainless India Jodhpur, a project of Mukund India Limited.
1995 - Developed & commissioned the then Largest M.F. Induction
Melting Furnace of the country at Shah Alloys Limited. (7500KW/15 MT).
1996 - Developed & Commissioned
1997 - Supplied three large MF Induction Melting Furnaces with DC Ladle
Refining Furnace for world's largest billet manufacturing facility through the
route of Induction Melting Furnace at M/s Vishwas Steels,
1999 - Developed & Commissioned Bent Rail Hardening System at
Digvijay Steel Industries, Batala.
1999 - Developed & Commissioned
2001 - 3rd Repeat order of 20 MT Induction Melting Furnace from M/s Shah
Alloys Limited.
2001 - Designed developed and commissioned
2001 - Supplied 20 T furnace in record time of 40 days to Viraj Profiles
Limited.
2001 - Supplied two melting furnaces to Thor Foundry in
2002 - Order of
2002 - Fastest Commissioning of 7.5MW/20T Induction Melting Furnace
within 40 days at Viraj Profiles Limited.
2002 - First indigenous Induction Ladle Refining Furnace of 1MW/12T at
R.L.Steel Limited.
2002 - First induction Ladle Furnace commissioned
2002 - First Continuous Induction Furnace CONTIFUR supplied - a
revolutionary process for economical manufacture of steel. Power consumption
and maintenance cost are much less compared to conventional steel making
process and equipment.
Recognitions
1987 - Young Electronics Engineer of the year award at the hands of
President Giani Zail Singh.
1989 - Special Recognition award for Indigenous Development of
Technology instituted by SIDO, Ministry of Industries at the hands of President
Shri Venkatraman.
1989 - Udyog Patra presented by the then Vice-President of India Shri S.
D. Sharma
1990 - VASVIK Research Award for contribution in the field of Electrical
Sciences & Technology.
1991 - FIE Foundation Award for eminence in the field of Engineering by
Prime Minister Shri Chandra Shekhar.
1993 - IEEMA Award for indigenously developing
1999 - Dhatunayak Award for Designing, Developing and Commissioning
Largest MF Induction Melting Furnace of 20 MT capacity.
2000 - ISO 9001 Certification BY RWTUV
2000 - Awarded by
Awards
Ř
IMM-Binatone Award
Ř
Special recognition National Award Udyog Patra
Ř
IEEMA Award
Ř
Vasvik Research Award and Dhatu Nayak Award for designing
State-of-the-art
Product
Profile:
Subject is a trusted name in foundry and steel industry for providing
unmatched technological leadership for nearly two decades.
It caters to Ferrous & Non-Ferrous foundries and metal melting
industry by manufacturing Medium Frequency Induction Melting Furnaces, Metal
Refining Konverter, Induction Ladle Refining Furnace, Induction
Heating/Hardening Equipments, Submerged Arc Furnace & a host of allied
products.
Medium Frequency Induction Melting / Holding Furnace
Subject caters to ferrous and non-ferrous foundries and to all segments
of steel industry (Mini Steel Plant and Alloy Steel Plant) by manufacturing
Medium Frequency Induction Melting Furnaces ranging from 15 KW/30KG to 25 MW /
50MT.
Metal Refining Konverter (MRK)
MRK is an improved Air-Oxygen-Decarburisation (AOD) converter for making
Stainless Steel
and Alloy Steels. It uses air and nitrogen to reduce..
Electric Arc Furnace (EAF)
Due to the fast escalating costs of raw material and electricity, it has
become essential to adopt a process, which can compensate for high costs of
these inputs...
Ladle Refining Furnace (LRF)
Ladle Refining of liquid is a proven technology to obtain clean steel.
Subject offers Induction Ladle Refining Furnace for lower rating ranging from
0.5T to 20T and LRF with three electrodes...
Induction Heating & Hardening Equipment (IHH)
The front runners in indigenised induction technology , subject offers
high precision customised Induction Heating & Hardening Systems for any
specific needs Quick heat is...
Induction Ladle Furnace (INDUREF)
Lime based fluxes effectively desulphuries steel and prolonged degassing
by argon purging gives metal properties similar to vacuum treated metal. It can
be used with ..
Continuous Induction Furnace
(CUNT-I-FUR)
Continuous Induction Furnace has overall heat transfer effiency of more
than 85% Lime and dolomite enables dephosphorization. Inductor lining life is
more that 45 days. Carbon..
Research
and Development
Subject offers customer-specific Technological Solutions with the
support of Strong Research & Development (R&D) set-up. R&D has
always been the main thrust for subject.
Mr.Mukesh Bhandari, CMD of the company, personally steers R&D
activities through his highly professional and efficient management skills.
Their R&D team consists qualified Metallurgists and Electronics wizards.
Their in-house
Extraordinary emphasis and value placed on R&D had not only
delivered excellent results, but also earned accolades and distinction. Subject
received National recognition for Excellence for in-house technology
development. Vasvik Gold Medal recognized subject's research competence and
proficiency. IEEMA, on the other hand, gave its award for the Best Indigenously
developed product. These awards and recognitions are feathers in the cap of ET
R&D. Dedicated R&D efforts have also lead them to many Firsts in
Sales
and Services:
Subject has wide spread Sales and Service Network with 26 Offices in
Subject’s Engineers not only give in-time services to customers but also
assist customers to help define their specific needs & increasing their
productivity and efficiency.
A prompt and efficient service rendered by subject's Engineers has
helped them to add more than 750 satisfied customers in their client list.
subject has expanded its network to such an extent that every call is attended
within 24 hours anywhere in
News
Letter:
Transmitter to Steel
By Mukesh Bhandari,
Chairman & Managing Director
Electrotherm (
Objects and achievements giving satisfaction are unique in individuals.
Mental faculty does not accept any level of achievement as a benchmark of
satisfaction. The mind goes on searching for new avenues out of which
satisfaction could be derived. This is a never ending process.., the way of
life to any aspiring individual. This is the basic principle of development in
any field; consider recycled paper or eco-friendly manure from food and agro
waste, space shuttle or supersonic jet, the common factor is dissatisfaction or
the urge to cross over to a new phase.
Engineer As A Tool
The society is not conscious about the role an individual plays in its
development as a discipline. It looks towards the person as a tool whose
contribution is not taken as that of an Engineer but as a man next door.
Therefore, by and large the society considers an Engineer as a tool, which
moulds and casts better living.
I am proud to be an engineer. I am proud to be an engineer because my
mental faculty is a tool, which meets the needs of the society; the nation as a
whole and above all, it gives me satisfaction to that extent.
Engineer Redefined
"Engineer", the term brings to mind a person who has acquired
a degree in Engineering. The executive at the finance desk who crafts by sizing,
exploring, addition, subtracting, scratching, scribbling and researching to
arrive at most practical and balanced application of funds is also doing a sort
of engineering. Similarly, a strategic planning done by a team, which may not
comprise qualified engineers, is also doing a sort of engineering. A creative
artist who designs the ads or s publicity material or an event manager is an
engineer in effect.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government official
or a family member or close business associate of a Government official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.41.24 |
|
|
1 |
Rs.82.55 |
|
Euro |
1 |
Rs.56.06 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
YES |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
63 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems comparatively
below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|