MIRA INFORM REPORT

Report Date :

27.08.2011

IDENTIFICATION DETAILS

Name :	INDUCTOTHERM (INDIA) PRIVATE LIMITED
Registered Office :	Shri Kishorebhai D. Vyas Building, Ambli-Bopal Road, Bopal, Ahmedabad-380058, Gujarat
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	04.12.1982
Com. Reg. No.:	04-5739
Capital Investment / Paid-up Capital :	Rs.10.000 Millions
CIN No.: [Company Identification No.]	U29120GJ1982PTC005739
TAN No.: [Tax Deduction & Collection Account No.]	AHMI00607F / AHMI00050B / AHMI00522E / AHMI00562C
PAN No.: [Permanent Account No.]	AAACI3672B
Legal Form :	Private limited liability company
Line of Business :	Manufacturer of Melting, Thermal Processing and Production Systems.
No. of Employees :	Information denied by the management.

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 4800000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

INFORMATION DECLINED BY

Name :	Mr. Mihir Patel
Designation :	Accounts Manager
Contact No.:	91-2717-231961
Date :	26.08.2011

LOCATIONS

Registered / Head Office / Factory:	Shri Kishorebhai D. Vyas Building, Ambli-Bopal Road, Bopal, Ahmedabad-380058, Gujarat, India
Tel. No.:	91-2717-231961 (8 Lines)
Fax No.:	91-2717-231266
E-Mail :	finance@inductothermindia.com iil@inductothermindia.com
Website :	www.inductothermindia.com
Location :	Owned
Branches:	Located At: · Bangalore · Chennai · Coimbatore · Hyderabad · Jaipur · Kolhapur kilkata · Ludhiana · Mumbai · New Delhi · Pune · Raipur · Rajkot · Rourkella · Trichy

DIRECTORS

As on 21.06.2011

Name :	Mr. Jagat Jayant Shah
Designation :	Managing Director
Address :	Saumya, C-62, Sterling City, Bopal, Ahmedabad-380 058, Gujarat, India
Date of Birth/Age :	19.03.1942
Date of Appointment :	21.06.1999
Din No.:	00198802
Name :	Mr. Himatlal Shantilal Bhavsa
Designation :	Whole time Director
Address :	U/42, Satellite Complrx,premchand Nagar Road, Satellite, Ahmedanbad-380 015, Gujarat, India
Date of Birth/Age :	22.03.1937
Date of Appointment :	21.06.1999
Din No.:	00198824
Name :	Mr. Bharat Lallubhai Seth
Designation :	Director
Address :	9/10, Bhanuchandra, Co. Operative Society, Near Ranchodji Temple, Jivrajpark, Ahmedabad, Gujarat, India
Date of Birth/Age :	30.11.1949
Date of Appointment :	01.04.2001
Din No.:	00181139
Name :	Mr. Henry M. Rowan
Designation :	Director
Address :	C/O, Inductotherm Corporation, 10 Indel Avenu, Rancocas, New Jersey, USA-08073
Date of Birth/Age :	01.12.1923
Date of Appointment :	31.12.1988
Din No.:	00179462
Name :	Mr. Satyen Nagesh Prabhu
Designation :	Director
Address :	C/O, Inductotherm Corporation, 10 Indel Avenu, Rancocas, New Jersey, USA-08073
Date of Birth/Age :	17.10.1961
Date of Appointment :	09.12.1999
Din No.:	00173080
Name :	Mr. Gary Anthony Doyon
Designation :	Director
Address :	80, Touraine Road, Grosse Pointe Farms, Michi Gan, USA-48236
Date of Birth/Age :	09.12.1999
Date of Appointment :	13.01.1959
Din No.:	02129096
Name :	Mr. Michae Anthony Nallen
Designation :	Director
Address :	9, Perennial Lane, Hampden MA 01036, USA
Date of Birth/Age :	19.07.1960
Date of Appointment :	06.12.2010
Din No.:	03364228

KEY EXECUTIVES

Name :	Mr. Hardik Harindra Medh
Designation :	Company Secretary
Address :	Plot 28, Meghna Independent Bunglow, Behind Inductotherm, Bopal, Ahmedabad-380 058, Gujarat, India
Date of Birth/Age :	09.03.1960
Date of Appointment :	12.08.1999
Pan No.:	AFIPM1380A
Name :	Mr. Mihir Patel
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 21.06.2011

Names of Shareholders	No. of Shares
Inductotherm Technologies Inc. , USA	99999
Bharat Lallubhai Sheth	1
Total	100000

As on 21.06.2011

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	99.99
Other top fifty shareholders	0.01
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Melting, Thermal Processing and Production Systems.

Products :

Product Description	Item Code No. (ITC Code)
Induction melting, Heating and Welding Equipment	85.14
Water Cooled Capacitors	85.32
Component and Spares	--

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Induction Melting Equipment	Nos.	PT 650 FR 1000	PT 650 FR 1000	-
Induction Heating Equipment	Nos.	200	200	-
Induction Welding Equipment	Nos.	55	55	-
Capacitors	Nos.	10500	10500	-
Melting Furnace	Nos.	-	-	PT 254 FR 506
Heating Furnace	Nos.	-	-	90
Welding Equipment	Nos.	-	-	14

GENERAL INFORMATION

No. of Employees :	Information denied by the management.
Bankers :	State Bank of India, Spl. Commercial Branch, Gandhigram, Opposite Gandhigram Railway Station, Ahmedabad – 380009, Gujarat, India Bank of Baroda The Kalupur Commercial Co Operative Bank Limited

Banking Relations :	--
Auditors :
Name :	Chandabhoy and Jassoobhoy Chartered Accountants
Address :	605-607, Silveroaks, Near Mahalakshmi Char Rasta, Paldi, Ahmedabad- 380007, Gujarat, India
Tel. No.:	91-79-26586063/ 26586069
Fax No.:	91-79-26586063
E-Mail :	cnjabd@vsnl.net
Associates/Subsidiaries :	Newelco India Private Limited [U31909DL1994PTC057720]

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
200000	Equity Shares	Rs.100/- each	Rs.20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs.100/- each	Rs.10.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		10.000	10.000	10.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1211.389	1527.626	1253.582
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1221.389	1537.626	1263.582
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.000	0.000	0.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		1221.389	1537.626	1263.582
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		238.313	268.228	265.548
Capital work-in-progress		0.602	2.950	1.288
INVESTMENT		0.824	0.823	0.743
DEFERREX TAX ASSETS		37.885	43.432	37.203
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	587.982	673.895	557.709
	Sundry Debtors	292.019	256.006	393.970
	Cash & Bank Balances	873.513	926.815	584.692
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	1463.586	1350.333	977.227
Total Current Assets		3217.100	3207.049	2513.598
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	207.286	130.463	116.618
	Other Current Liabilities	555.330	537.088	501.634
	Provisions	1510.719	1317.305	936.546
Total Current Liabilities		2273.335	1984.856	1554.798
Net Current Assets		943.765	1222.193	958.800
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1221.389	1537.626	1263.582

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	2906.100	3138.539	2970.003
		Erection, Commissioning and Service Charges	0.000	61.367	64.876
		Other Income	64.991	74.001	62.621
		TOTAL (A)	2971.091	3273.907	3097.500
Less	EXPENSES
		Raw materials consumption		1642.358	1505.363
		Payments to & provisions for employees		201.611	186.628
		Manufacturing expenses		77.539	66.903
		Administrative expenses		25.081	21.138
		Selling & Distribution expenses	1943.638	243.141	209.190
		Directors' remuneration		25.007	23.490
		Earlier Year Expenses		(7.282)	(14.700)
		Surplus on sale of Land and Building		(4.577)	1998.012
		Increase/(decrease) in stock		(45.424)	19.112
		TOTAL (B)	1943.638	2157.454	2017.124
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		NA	1116.453	1080.376
Less	FINANCIAL EXPENSES (D)		NA	13.439	13.611
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1027.453	1103.014	1066.765
Less/ Add	DEPRECIATION/ AMORTISATION (F)		42.183	43.110	42.093
	PROFIT BEFORE TAX (E-F) (G)		985.270	1059.904	1024.672
Less	TAX (H)		365.547	376.378	361.673
	PROFIT AFTER TAX (G-H) (I)		619.723	683.526	662.999
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1127.626	923.582	593.822
Less	APPROPRIATIONS
		Interim Dividend paid	800.000	350.000	225.000
		Corporate Dividend Tax	135.960	59.482	38.239
		Transfer to General Reserve	70.000	70.000	70.000
	BALANCE CARRIED TO THE B/S		741.389	1127.626	923.582
	EARNINGS IN FOREIGN CURRENCY
		Export on FOB Basis	899.785	1145.240
		Commissioning and Servicing Income	3.040	3.970
		Commission Income	0.899	3.753
		Income From Job Work	9.698	16.733	NA
		Reimbursement of Travel Expenses	0.713	2.322
		Training Fees Income	0.124	0.568
		Discount Earned	0.097	0.188
		Order Cancellations Charges	0.034	0.069
	TOTAL EARNINGS		914.390	1172.843	NA
	IMPORTS
		Raw Materials	278.322	428.423	NA
		Capital Goods	2.390	6.510	NA
	TOTAL IMPORTS		280.712	434.933	NA
	Earnings Per Share (Rs.)		6197.23	6835.26	--

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	20.86	20.88	21.40
Net Profit Margin (PBT/Sales)	(%)	33.16	33.77	34.50
Return on Total Assets (PBT/Total Assets}	(%)	28.51	68.93	81.09
Return on Investment (ROI) (PBT/Networth)		0.81	0.69	0.81
Debt Equity Ratio (Total Liability/Networth)		1.86	1.29	1.23
Current Ratio (Current Asset/Current Liability)		1.41	1.62	1.62

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS:

Particulars	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)	31.03.2008 (Rs. in millions)
Sundry Creditors
Due to Micro and Small Enterprises	24.440	11.928	44.521
Others	182.846	118.535	72.097
Total	207.286	130.463	116.618

OPERATIONS

Turnover for the year 2009-2010 is Rs.2906.100 millions which is 9% lower compared to previous year. In a year characterized by a dim economic environment globally as well as the slowdown in Indian economy, the company has managed to sustain its performance. This years witnessed a slowdown in the steel and ingots markets. Also automobile industry witnesses effect of recession which also resulted in slow down in demand for the company products. Despite these difficulties the company managed to show better performance by continued effort to improve manufacturing process and focus on cost reduction and cost control and consist efforts to meet quality service expectations of customers.

FOREIGN COLLABORATOR

The continuous efforts on product innovation by the group companies and access to the latest technology under Technical Collaboration Agreement has contributed significantly to the performance of your Company during the year. This would even remain the Key element in future for the Company to maintain the market leadership in increasingly competitive market

The company wishes to place on record its appreciation of valuable contributions made by Inductotherm group companies towards the growth of your company.

PROSPECTS

The steps taken by the Government to stimulate the Indian economy has started to show its impact. The growth of Indian economy and the growing emphasis on infrastructure development of the country is expected to generate further demand for the Company’s products. The auto ancillary sector and steel sector is poised for growth which would also generate demand of your Company’s products. With continuous improvement in quality of their products through improved manufacturing processes, customer specific approach, prompt and quality after sales services would provide potential for growth going forward.

BANKERS CHARGES REPORT AS PER REGISTRY

This form is for	Modification of charge
Charge identification number of the modified	90111781
Corporate identity number of the company	U29120GJ1982PTC005739
Name of the company	NDUCTOTHERM (INDIA) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Shri Kishorebhai D, Vyas Building, Bopal, Ahmedabad-380 058, Gujarat, India
Type of charge	Book Debts Movable Property Others Hypothecation Of Stocks, Book Debts and Other Current Assets
Particular of charge holder	State Bank of India, Spl. Commercial Branch, Gandhigram, Opposite Gandhigram Railway Station, Ahmedabad – 380009, Gujarat, India
Nature of description of the instrument creating or modifying the charge	A) Supplemental agreement of hypothecation of goods, and current assets for increase in over all limit (form C.2 a), dated 27.11.2008. B) Letter regarding the grant of individual limits within the overall limit (form C.5), dated 27.11.2008.
Date of instrument Creating the charge	27.11.2008
Amount secured by the charge	Rs.250.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Letter of credit : Commission and charges as per bank circular applicable Bank guarantee : Commission and charges as per bank circular applicable Terms of Repayment Repayable on demand Margin Letter of credit : 10% Bank guarantee : 10% Extent and Operation of the charge Renewal of NFBWC limits with enhancement from Rs.180.000 millions to Rs.250.000 millions secured against hypothecation of stocks, book debts and other current asset of the company. The details of primary securities as under Letter of credit: documents to title to goods / merchandise cover under LC and charge on entire current assets of the company. Bank guarantee : counter guarantee and charge on entire current assets of company Others Individual limits within overall as under : Letter of credit : Rs.50.000 millions Bank Guarantee : Rs.200.000 millions (Two Way Full Interchangeability Between LC and BG Limits)
Short particulars of the property charged	Hypothecation of entire Stocks, Book Debts and Other Current Asset of the company located at Ambli -Bopal Road, Bopal, Ahmedabad – 380 058.
Date of latest modification prior to the present modification	01.05.2007
Particulars of the present modification	By execution of aforsaid deed, the Nfbwc limits have been enhanced from Rs.180.000 millions to Rs.250.000 millions. Now the amount of charge have been increased to aggregate of Rs.250.000 millions. Other terms and conditions as per agreement enclosed herewith.

FIXED ASSETS

· Land

· Building

· Electrical Installations

· Computers

· Office Equipments

· Furniture and Fixture

· Computers

· Vehicles

· Type Writers

· Air conditioner

· Electric Fans

· Xerox Machine

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.46.05
UK Pound	1	Rs.75.20
Euro	1	Rs.66.47

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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	Capability to overcome financial difficulties seems comparatively below average.	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
-	NB	New Business	-

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.