MIRA INFORM REPORT

Report Date :

13.05.2008

IDENTIFICATION DETAILS

Name :	ELECTROTHERM (INDIA) LIMITED
Registered Office :	Survey No. 72, Village Palodia, Via- Thaltej, Tal.: Kalol, District: Gandhinagar, Gujarat – 382115
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	29.09.1986
Com. Reg. No.:	04-9126
CIN No.: [Company Identification No.]	L24110GJ1986PLC009126
TAN No.: [Tax Deduction & Collection Account No.]	AHME00193E
Legal Form :	Public Limited Liability Company. The company’s shares are listed on the Stock Exchange
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

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 23963200
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
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

Registered Office :	Survey No. 72, Village Palodia, Via- Thaltej, Tal.: Kalol, District: Gandhinagar, Gujarat – 382115, India
Tel. No.:	91-2717-234553-57 / 234613-15
Fax No.:	91-2717-234616 / 234866
E-Mail.:	sb@electrotherm.com sec@electrotherm.com
Website	http://www.electrotherm.com
Correspondence Office :	A-1, Skylark Apartment, Satellite Road, Satellite, Ahmedabad – 380015, Gujarat, India
Tel. No.:	91-79-26746474/26748855
Fax No.:	91-79-26740923
Factory 1 :	Survey No. 72, Village: Palodia, Tal: Kalol, District: Gandhinagar- 382115, Gujarat, India
Factory 2 :	Survey No. 325, Village: Samakhiyali Taluka, Bhachau, District Kutchh, India
Factory 3 :	414/1, GIDC Phase – II, Vatva Industrial Area, Ahmedabad – 382445, Gujarat, India
Factory 4 :	Village: Dhank, Taluka: Upleta, District: Rajkot, Gujarat, India

DIRECTORS

Name :	Mr. Mukesh Bhandari
Designation :	Chairman and Managing Director
Name :	Mr. Shailesh Bhandari
Designation :	Whole Time Director
Name :	Mr. Harish Sharma
Designation :	Whole Time Director
Name :	Mr. Narendra Dalal
Designation :	Whole Time Director
Name :	Mr. Avinash Bhandari
Designation :	Director
Name :	Mr. Naveen Nakra
Designation :	Director
Name :	Mr. Nilesh Desai
Designation :	Director
Name :	Mr. Madhusudan Somani
Designation :	Director
Name :	Mr. Ram Singh
Designation :	Director
Name :	Mr. P K Prasad
Designation :	Director

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares	Percentage of Holding
Indian Promoters	3134875	65.77
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
Indian Public	977075	20.50
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.
Products :	Electronic Induction Furnace Induction Heating Equipment Electricity Power Generation

GENERAL INFORMATION

Bankers :	Bank of India, Navrangpura Branch, Swastik Char Rasta, C.G. Road, Ahmedabad - 380009
Banking Relations :	Satisfactory
Auditors :
Name :	Mehta Lodha and Company Chartered Accountants
Address :	Ahmedabad, India
Associates :	Ahemdabad Aviation and Aeronautics Faraday Shop Palace Tour and Air Charter Services Western India Speciality Hospital Limited
Subsidiaries :	· Aaradike Engineering Enterprise · Aditya Industries · A.N. Fabricators · Arco Industries · Appolo International · Anu Engineers · Bharati Electricals · Divine Power · Dharnendra Die & Engineering Works · Faraday Shop · Falcon Cables Private Limited · Flowbraze Alloy Industries · Hirel Circuit Private Limited · Kaushik Spring Industries · Kiyosh Electronics · Meldy Fastners · Mikron Control Company · Nirav Engineers · Noble Refractories

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
SHAREHOLDERS FUNDS
1] Share Capital		211.300	167.700	83.300
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1918.200	269.200	169.500
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2129.500	436.900	252.800
LOAN FUNDS
1] Secured Loans		3081.100	1827.900	556.100
2] Unsecured Loans		780.200	312.800	334.000
TOTAL BORROWING		3861.300	2140.700	890.100
DEFERRED TAX LIABILITIES
TOTAL		5990.800	2577.600	1142.900
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2784.100	1527.300	715.000
Capital work-in-progress		973.300	362.700	0.000
INVESTMENT		0.700	0.700	0.200
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2028.600	749.900	418.200
	Sundry Debtors	1386.000	622.000	213.400
	Cash & Bank Balances	410.400	212.200	88.100
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	486.700	242.300	138.600
Total Current Assets		4311.700	1826.400	858.300
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	2096.000	1100.600	407.800
	Provisions	105.600	55.300	22.800
Total Current Liabilities		2201.600	1155.900	430.600
Net Current Assets		2110.100	670.500	427.700
MISCELLANEOUS EXPENSES		122.600	16.400	0.000
TOTAL		5990.800	2577.600	1142.900

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		7465.300	3676.400	2053.800
Other Income		2988.800	115.800	133.700
Total Income		7754.100	3792.200	2187.500
Profit/(Loss) Before Tax		614.700	222.500	147.000
Provision for Taxation		181.200	104.100	12.000
Profit/(Loss) After Tax		433.500	118.400	135.000
Expenditures :
	Raw Materials	4876.600	2505.400	1591.400
	Excise Duty	156.500	229.200	216.100
	Power and Fuel Cost	608.900	212.000	12.200
	Other Manufacturing Expenses	472.300	125.800	92.800
	Employee Cost	153.800	90.900	44.200
	Selling and Administration Expenses	309.800	160.200	54.500
	Miscellaneous Expenses	32.700	83.400	4.300
	Interest	350.300	92.300	15.900
	Depreciation	178.500	70.500	9.100
Total Expenditure		7139.400	3569.700	2040.500

QUARTERLY RESULTS

PARTICULARS	30.06.2007	30.09.2007	31.12.2007	31.03.2008
Type	1^st Quarter	2^nd Quarter	3^rd Quarter	4^th Quarter
Sales Turnover	2466.200	268.800	3819.100	4287.500
Other Income	35.900	11.900	11.900	9.700
Total Income	2502.100	2692.700	3831.000	4297.200
Total Expenditure	2160.400	2241.100	3199.800	3580.600
Operating Profit	341.700	451.600	631.200	716.600
Interest	140.600	175.200	241.500	227.800
Gross Profit	201.100	276.400	389.700	488.800
Depreciation	40.600	76.200	89.300	112.500
Tax	19.200	24.700	36.300	68.200
Reported PAT	121.300	130.600	197.300	174.200

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
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

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 India and abroad sofar. Subject also has some firsts to its name like design and commission of India's first indigenously made solid state generator of 1200 KW. 

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 and 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 India's largest MF Induction Melting Furnace of 20 Tons capacity to M/s Shah Alloys Limited, Ahmedabad. In the year 2000-01 the company was accredited with ISO-9001 certificate through RWTUV.

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. 7308.865 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, Washington DC, out of which USD 15 Million is debt and the balance USD 10 Million will be converted into equity. Subject to approval y General body/Statutory approvals. Additional funds, if required, will be raised both from Indian Banks as well as from overseas as ECB or FCCB. 

The company is nearing completion of its project at Kutch. This is a project having a capital outlay of Rs.4370 millions went into commercial production in Mar 07, except captive power plant, which is scheduled to go into operation in Sep 07. With the completion of this project, the company will be one of the few totally integrated units in the country, which will not only produce special quality steel products but will also be one of the lowest cost steel producer of its type, in view of captive sponge iron and captive power generated by using waste gases. 

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 India. In order to scout for more business opportunities outside India, the company has now representative in Middle East, China, Turkey, South Africa, Bangladesh, Russia and CIS Countries. 

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 and 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 Kutch have been recognized as brand leaders. 

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 India is no longer insulated from the global influences. Any international adverse factors slow down of US economy, climbing up of international interest rates, increase in crude oil prices, can affect Indian economy. Nevertheless, the development trajectory of India is high and is likely to remain so. 

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 India is largely on account of the inflation which is close to 6% as against 5% desired by it. The RBI has pushed the interest rate to control this inflation. It is assumed that when the consumers can borrow money at low interest rates, people take loans to buy houses, cars and other consumer goods. Cheap credit pushes demand beyond the available supply, leading to higher prices. Thus, by raising interest rates the central bank hopes to slow down the growth in credit, helping in lowering the demand for houses, which in turn will slow down the construction activity and reduce the demand for steel, cement, other equipment and in turn reduce the prices and reduce in inflation. They feel that the RBI should have taken a more balanced view on interest rate and should have kept them stable so that there is no slow down in industrial activity. 

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, Tianjin, China to set up an engineering unit in this industrial park. This will enable the company to make a foray into the fast growing Chinese steel and foundry market. 

Construction Steel Division: 

Last year the company entered the construction steel industry by setting up a steel unit in Kutch district of Gujarat. This venture provides a unique opportunity to the company by becoming a port based steel unit with an access to the ever growing market of Gujarat. The facility will enjoy fiscal incentives announced by the government. With backward integration of sponge iron and with the installation of Waste Heat Captive Power plant in the coming 24 months, the company will become one of the lowest cost construction steel producer in this part of the country. This division becomes the second segment in its revenue mix. 

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 Kutch plant. The focus of the company will be to produce value added stainless steel bars, both for domestic and international markets. Proximity to Kandla Port will enable the company to make its mark in the overseas market where the appetite for stainless steel continues to grow. They will treat this as their third segment in their revenue mix. 

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 Gujarat market and in the current year will become a national player. Rising fuel costs has put a huge strain on their economy. Whereas the conventional vehicle manufacturers will try to introduce more fuel efficient engines, Subject has taken a huge leap by launching vehicles which do not use liquid fuel. With their development of in house leading-edge technology and continuous product development activities, Subject will strive to maintain leadership position in electric vehicles. They are confidant that this segment will witness rapid growth. This business becomes its sixth revenue stream. 

Five years ago, China hardly produced any electric two wheelers and within a short span their production has now reached a level of 10 million vehicles per annum. The rising fuel costs and the unacceptable pollution levels have created a huge opportunity for electric vehicles and the company is gearing up for selling this product all over the country and perhaps in the international market also. 

INTERNATIONAL PARTNERSHIPS: 

Two years ago, the company entered into a partnership agreement with HYL Technologies of Mexico, which is now apart of Techint Technologies, Milan, Italy. This has enabled the company to demonstrate its project engineering, project design and project implementation capabilities. The company alongwith its partners has bagged a prestigious order of US Dollar 30 Million in Middle East. 

The company has also been allotted land at Beichen Industrial Park, Tianjin, China to set up a manufacturing facility for production of Induction melting equipment, Induction Heating and Hardening equipment and Electric Vehicles including Hybrid Electric Vehicles. The company proposes to implement this project through a Wholly Owned Subsidiary. 

Website Details Attached:

History

A dream of technocrat to serve Indian Steel Industry lead to Inception of Electrotherm (India) Limited, [ET].

At a time when capability of multinationals was the only excepted norm in India, subject ventured into manufacturing of equipment for melting metals. The MNCs were compelled to open local assembly shops and offer reasonable terms and better services. The customer experienced comfort of competition for the first time. This was just a beginning.

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 India at exorbitant prices and also took upon itself servicing of induction furnace in far flung areas of the country.

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 India on Subject furnaces.

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 and offering customized metallurgical turnkey solutions irrespective of its nature, size and geographical boundaries. With the new liberalized environment that has seen a rise in the customer expectations for uncompromising quality products backed by cost effectiveness and 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 and 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 and 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 Bangladesh, Ethiopia, Ghana, Greece, Kenya, Mauritius, Myanmar, Pakistan, Senegal, Sri Lanka, South Africa, Tanzania, Zimbabwe, The Middle East and some other East African Countries.

Subject is distinguished by the skill and 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 Australia, Bangladesh, Brazil and RSA. Subject’s strong sales and service network throughout India is manned by Metallurgical, Electrical and Electronics Engineers who are always on toes day in and day out to offer best in terms of application engineering and in time service to its customers. Their sales professionals are right there at the doorstep to offer best solution to any customized needs. This has made subject a distinctively real "A Solution Driven Company".

Research and 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 and 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 and experienced manpower and 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 and around the world.

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 and 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 India where in all electronics cards are manufactured in-house under stringent quality control and supervision of well -qualified staff. Once the Generator/Power Pack is assembled, testing is carried out on no-load condition before dispatch to ensure satisfactory functioning of the equipment. This results in shorter duration for erection and commissioning.

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 and 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 India, there was a vast scope for industrial development in the country. Technically sound companies can go global and compete with international giants. subject also has been aspiring and striving for the same.

Being a research and development oriented company with future plans for backward and forward integration, subject has been recruiting Graduate/Post Graduate Engineers and Management students from prime institutes of India.

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 India.

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 and Electronic equipment.

1983 - Subject received its First Order of 350 KW/ 500 KG.

1984 - Designed and developed India's first Indigenous Solid State Generator of 1200 KW

1989 - Subject enters EXPORTS- Orders from Ethiopia and Bangladesh.

1992 - Developed and 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 and 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 and commissioned the then Largest M.F. Induction Melting Furnace of the country at Shah Alloys Limited. (7500KW/15 MT).

1996 - Developed and Commissioned India's First Indigenous DC Arc Furnace of 22 MT.

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, Goa.

1999 - Developed and Commissioned Bent Rail Hardening System at Digvijay Steel Industries, Batala.

1999 - Developed and Commissioned India's Largest M.F. Induction Melting Furnace of 20 MT at Shah Alloys Limited.

2001 - 3rd Repeat order of 20 MT Induction Melting Furnace from M/s Shah Alloys Limited.

2001 - Designed developed and commissioned India's Largest Metal Refining Konverter of 50 MT for M/s Shah Alloys Limited.

2001 - Supplied 20 T furnace in record time of 40 days to Viraj Profiles Limited.

2001 - Supplied two melting furnaces to Thor Foundry in South Africa, who has been using equipment supplied by a multinational from USA for over two decades.

2002 - Order of India's first revolutionary Steel Making Cont-1-Fur of 4MW/10T at Twenty First Century wire Rods Limited.

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 and Technology.

1991 - FIE Foundation Award for eminence in the field of Engineering by Prime Minister Shri Chandra Shekhar.

1993 - IEEMA Award for indigenously developing India's 1st DC Arc Furnace.

1999 - Dhatunayak Award for Designing, Developing and Commissioning Largest MF Induction Melting Furnace of 20 MT capacity.

2000 - ISO 9001 Certification BY RWTUV GERMANY for establishing and practicing International quality standards.

2000 - Awarded by Institute Of Trade And Industrial Development for continuous developmental effort made by subject's team.

Awards

Ø IMM-Binatone Award

Ø Special recognition National Award Udyog Patra

Ø IEEMA Award

Ø Vasvik Research Award and Dhatu Nayak Award for designing State-of-the-art India's largest MF Induction Furnace for 20 MT And many more…

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 and 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 and 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 and Hardening Equipment (IHH)

The front runners in indigenised induction technology, subject offers high precision customised Induction Heating and 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 and Development (RandD) set-up. RandD has always been the main thrust for subject.

Mr.Mukesh Bhandari, CMD of the company, personally steers R and D activities through his highly professional and efficient management skills. Their RandD team consists qualified Metallurgists and Electronics wizards. Their in-house R and D Center is recognized by the Department of Science and Technology , Govt. of India

Extraordinary emphasis and value placed on R and 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 and D. Dedicated R and D efforts have also lead them to many Firsts in India; part of the success story is described below.

Sales and Services:

Subject has wide spread Sales and Service Network with 26 Offices in India + offices at Australia, Bangladesh, Brazil and RSA. It is manned by well- qualified Metallurgical, Electronics and Electrical engineers who are on toes day in and day out to deliver pre and post purchase service.

Subject’s Engineers not only give in-time services to customers but also assist customers to help define their specific needs and 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 India.

News Letter:

Transmitter to Steel

By Mukesh Bhandari,

Chairman and Managing Director

Electrotherm (India) Limited, 72, Palodia, Ahmedabad.

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, India Prisons Service, Interpol, etc.

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.41.38
UK Pound	1	Rs.80.76
Euro	1	Rs.63.89

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

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions