MIRA
INFORM REPORT
|
Report Date : |
26.05.2012 |
IDENTIFICATION DETAILS
|
Name : |
ELECTROTHERM ( |
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|
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Registered
Office : |
A–1, Skylark Apartment, |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
29.10.1986 |
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Com. Reg. No.: |
04-9126 |
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Capital Investment
/ Paid-up Capital : |
Rs.234.760
Millions |
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|
|
CIN No.: [Company Identification
No.] |
L29249GJ1986PLC009126 |
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|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
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Line of Business
: |
Manufacturer and Exporter of Industrial Furnaces, Chemical Plants,
Induction hardening and heating Systems and other associates process
equipments for steel plants. |
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|
No. of Employees
: |
2500 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (61) |
|
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 29178600 |
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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 fine track. Financial
position of the company appears to be sound. Directors are reported to be
experienced and respectable businessmen. Trade relations are reported as
fair. Business is active. Payments are reported to be regular and as per
commitments. The company can be considered good for normal 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.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
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High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INFORMATION DECLINED BY
|
Name : |
Mr. Vivek |
|
Designation : |
Finance Manager |
LOCATIONS
|
Registered Office : |
A–1, Skylark Apartment, |
|
Tel. No.: |
91-79-26768844 |
|
Mobile No.: |
91-9825159296 (Mr. Shailesh Bhandari) |
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Fax No.: |
91-79-26768855 |
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E-Mail : |
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Website : |
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Area: |
3500 sq.ft. (Owned) |
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Factory 1 : |
Engineering and Projects Division Survey No. 72,
Village : Palodia, Taluka : Kalol, District : Gandhinagar – 382 115, |
|
Tel. No.: |
91-2717-234554/ 660550/ 55/ 56/ 57 |
|
Fax No.: |
91-2717-237612/ 234616 |
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Factory 2 : |
Special Steel, DI Pipe and Electric Vehicle
Division Survey No. 325,
Village : Samakhiyali, Taluka : Bhachau, District : Kutch, |
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Factory 3 : |
Wind Farm Project Village : Dhank, Taluka : Upleta, District : |
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Factory 4 : |
Renewables Division 414/1, GIDC,
Phase II, Vatva Industrial Area, Ahmedabad – 382 445, |
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Factory 5 : |
Village : Juni Jithardi, Taluka : Karjan, District : Vadodara, |
DIRECTORS
AS ON 31.03.2011
|
Name : |
Mr. Mukesh Bhandari |
|
Designation : |
Chairman and CTO |
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|
Name : |
Mr. Shailesh Bhandari |
|
Designation : |
Managing Director |
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|
Name : |
Mr. Avinash Bhandari |
|
Designation : |
Joint Managing Director and CEO |
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Name : |
Mr. Narendra Dalal |
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Designation : |
Whole Time Director |
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Name : |
Mr. Naveen Nakra |
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Designation : |
Director |
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|
Name : |
Mr. Nilesh Desai |
|
Designation : |
Director |
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|
Name : |
Mr. Madhusudan Somani |
|
Designation : |
Director |
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|
Name : |
Mr. Ram Singh |
|
Designation : |
Director |
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|
Name : |
Mr. Pradeep Krishna Prasad |
|
Designation : |
Director |
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|
Name : |
Mr. Ravikumar Trehan |
|
Designation : |
Director |
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|
Name : |
Dr. Sudhir Kapur |
|
Designation : |
Director |
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|
Name : |
Mr. Parth Gandhi |
|
Designation : |
Nominee Director (up to 12.08.2011) |
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|
Name : |
Mr. Ashokkumar Lahiri |
|
Designation : |
Nominee Director (up to 04.02.2011) |
KEY EXECUTIVES
|
Name : |
Mr. Jigar Shah |
|
Designation : |
Company Secretary |
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|
|
|
Name : |
Mr. Shirish Maniar (w.e.f. 02.08.2010) |
|
Designation : |
Chief Financial Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 31.03.2012)
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
|
|
|
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
2280575 |
19.87 |
|
|
975000 |
8.50 |
|
|
|
|
|
|
|
|
|
|
512500 |
4.47 |
|
|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
|
|
|
|
|
|
|
(B)
Public Shareholding |
|
|
|
|
|
|
|
|
9800 |
0.09 |
|
|
100 |
-- |
|
|
2675 |
0.02 |
|
|
|
|
|
|
|
|
|
|
1366666 |
11.91 |
|
|
|
|
|
|
|
|
|
|
1323689 |
11.53 |
|
|
|
|
|
|
|
|
|
|
1263183 |
11.01 |
|
|
313242 |
2.73 |
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|
|
|
|
|
|
|
|
|
2000000 |
17.43 |
|
|
87283 |
0.76 |
|
|
1292431 |
11.26 |
|
|
49230 |
0.43 |
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|
|
|
|
(C) Shares
held by Custodians and against which Depository Receipts have been issued |
-- |
-- |
|
|
|
|
|
Total
|
11476374 |
100.00 |
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(1) Indian%20LIMITED%20-%20181459%2026-May-2012_files/image003.gif){kind=small}
Individuals / Hindu Undivided Family%20LIMITED%20-%20181459%2026-May-2012_files/image004.gif){kind=small}
Foreign Financial InstitutionsBUSINESS DETAILS
|
Line of Business : |
Manufacturer and Exporter of Industrial Furnaces, Chemical Plants,
Induction hardening and heating Systems and other associates process
equipments for steel plants. |
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Products : |
· Induction Melting Furnaces · Induction Melting and Holding Furnaces · Electric Arc Furnaces · Submerged Arc Furnace · Metal Refining Konverter · Ladle Refining Furnaces · Induction Heating and Hardening Equipments · Electro DI Pipes · Electric Scooter · Steel, Special Steels and Stainless Steel · Electro TMT Plus Bars · Transformer |
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Exports : |
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Products : |
Industrial Furnaces and Chemicals |
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Countries : |
·
·
·
Ethiopia ·
·
·
·
·
·
·
Tanzania ·
Middle East ·
Zimbabwe |
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Terms : |
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Selling : |
L/C,
Cash and Credit ( 30-60- 90 Days) |
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Purchasing : |
Cash
and Credit ( 30-60- 90 Days) |
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
A Saleable |
|
|
|
|
1 Electronic Furnaces and other capital equipments |
Sets |
350 |
291 |
|
2 Wind Power generation |
KW Million KWH |
500 0.80 |
0 0.359 |
|
3 |
Nos. |
150000 |
8190 |
|
4 Ferrous and Non-Ferrous Billets /Bars/Ingots * |
MT |
314000 |
247282 |
|
5 Duct Iron Pipes |
MT |
192000 |
82998 |
|
6 Sponge & Pig Iron # |
MT |
286000 |
3085 |
# Total Installed Capacity is of 2,86,000 MT
* Actual Production is excluding captive consumption
GENERAL INFORMATION
|
Customers : |
End Users, OEM’s and Others |
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No. of Employees : |
2500 (Approximately) |
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Bankers : |
·
Bank
of ·
State
Bank of ·
Punjab
National Bank ·
State
Bank of Travancore ·
Corporation
Bank ·
Bank
of ·
Dena
Bank ·
Oriental
Bank of Commerce ·
Union
Bank of ·
Canara
Bank ·
UCO
Bank ·
ICICI
Bank ·
State
Bank of ·
Standard Chartered Bank ·
Allahabad Bank |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
|
|
Name : |
Mehta Loadha and Company Chartered Accountants |
|
Address : |
Ahmedabad |
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|
|
Subsidiaries : |
1.
Jinhua Indus Enterprises Limited 2.
Jinhua Jahari Enterprises Limited 3.
Bhaskarpara Coal Company Limited 4.
ET Elec-Trans Limited 5.
Hans Ispat Limited 6.
Shree Ram Electrocast Private Limited 7.
Shree Hans Papers Limited 8.
Electrotherm Mali SARL |
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|
|
|
Associates : |
1. Ahmedabad Aviation and Aeronautics Limited 2. Crystal Real Estate Private Limited 3. Palace Tours and Air Charters Private Limited 4. Western India Speciality Hospital Limited 5. Mangalam Information Technologies Pvt. Limited 6. Liberty Finance and Leasing Company Private Limited 7. E-Motion Power Limited 8. Indus Elec-Trans Private Limited 9. Magnum Limited 10. Alwar Trading and Investment Company 11. Afghan Trading Private Limited 12. Bhandari Brothers Commercial Private Limited 13. Palanpur Reality Developers Private Limited 14. Jayshri Petro-Yarn Private Limited 15. Adroit Trading and Investment Company 16. EIL Hospitality Private Limited 17. EIL Realty Private Limited 18. EIL Software Private Limited 19. EIL Software Services Offshore Private Limited 20. EIL Technology Private Limited 21. Electrotherm Engineering and Projects Limited 22. Electrotherm Infrastructure Private Limited 23. Electrotherm Renewables Private Limited 24. Electrotherm Foundation. 25. Gujarat Mint Alloys Limited 26. Indus Real Estate Private Limited 27. ICS Commercial Private Limited 28. New Delhi Real Estate Private Limited 29. Palace Infrastructure Private Limited 30. S B Realty Developers Private Limited 31. Sun Infrapower Private Limited 32. Sun Residency Private Limited 33. Suraj Real Estate Private Limited 34. S N Advisory Private Limited 35. Suraj Advisory Services Private Limited 36. Bhandari Charitable Trust. 37. Airfones Innovatives Private Limited 38. BNB Real Estate Private Limited 39. Electrotherm Energy Holdings Limited 40. Electrotherm Solar Limited 41. Firefly Energy Limited 42. Indus Coils and Plates Limited 43. Inspira Solar Energy Limited 44. NET Architectures Private Limited 45. Bhandari Real Estate Private Limited |
CAPITAL STRUCTURE
(AS ON 31.03.2011)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
25000000 |
Equity Shares |
Rs.10/- each |
Rs.250.000 Millions |
|
25000000 |
6% Non – Cumulative Redeemable Preference Shares |
Rs.10/- each |
Rs.250.000 Millions |
|
|
Total |
|
Rs.500.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
11476374 |
Equity Shares (Out of above
shares, 9,53,275 shares are allotted on 13th November, 1995 as
fully paid up bonus shares by capitalising General Reserve and Profit and
Loss Account) |
Rs.10/- each |
Rs.114.760
Millions |
|
12000000 |
6% Non – Cumulative Redeemable Preference Shares of Rs.10/- each fully
paid up, Redeemable at Par (35,60,000 Preference
Shares Redeemable not later then 11th March, 2025. 44,40,000
Preference Shares Redeemable not later then 1st April, 2025 and
40,00,000 Preference Shares Redeemable not later than 14th May,
2025) |
Rs.10/- each |
Rs.120.000
Millions |
|
|
Total |
|
Rs.234.760 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
234.760 |
234.760 |
234.760 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
7059.900 |
6806.320 |
4363.060 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
7294.660 |
7041.080 |
4597.820 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
13545.600 |
11811.140 |
10319.760 |
|
|
2] Unsecured Loans |
9097.000 |
3346.170 |
1973.920 |
|
|
TOTAL BORROWING |
22642.600 |
15157.310 |
12293.680 |
|
|
DEFERRED TAX LIABILITIES |
865.130 |
814.500 |
694.110 |
|
|
|
|
|
|
|
|
TOTAL |
30802.390 |
23012.890 |
17585.610 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
15731.680 |
14512.790 |
6461.680 |
|
|
Capital work-in-progress |
2335.040 |
1221.420 |
4510.220 |
|
|
|
|
|
|
|
|
INVESTMENT |
1083.860 |
72.690 |
22.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
8487.500
|
4841.450
|
4521.580
|
|
|
Sundry Debtors |
4820.540
|
3364.670
|
2483.870
|
|
|
Cash & Bank Balances |
1175.510
|
1864.810
|
661.090
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
1989.020
|
2218.400
|
1512.240
|
|
Total
Current Assets |
16472.570
|
12289.330
|
9178.780 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
5016.600
|
5336.000
|
2873.700 |
|
|
Other Current Liabilities |
82.510
|
18.700
|
20.810 |
|
|
Provisions |
63.860
|
114.560
|
83.920
|
|
Total
Current Liabilities |
5162.970
|
5469.260
|
2978.430
|
|
|
Net Current Assets |
11309.600
|
6820.070
|
6200.350
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
342.210 |
385.920 |
391.360 |
|
|
|
|
|
|
|
|
TOTAL |
30802.390 |
23012.890 |
17585.610 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Sales and Other Operational Income
|
22968.930 |
20027.530 |
16827.760 |
|
|
|
Other Income |
145.300 |
140.820 |
69.360 |
|
|
|
TOTAL (A) |
23114.230 |
20168.350 |
16897.120 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Material Cost |
19797.900 |
13039.810 |
11896.160 |
|
|
|
(Increase)/Decrease in Stocks |
(4827.390) |
111.820 |
(903.280) |
|
|
|
Manufacturing Expenses |
2899.240 |
2631.730 |
2110.640 |
|
|
|
Employees Remuneration |
645.930 |
517.970 |
389.510 |
|
|
|
Administrative, Selling and General Expenses |
1183.810 |
980.960 |
941.810 |
|
|
|
Research and Development Expenses |
2.550 |
26.910 |
21.140 |
|
|
|
TOTAL (B) |
19702.040 |
17309.200 |
14455.980 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
3412.019 |
2859.150 |
2441.140 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1924.820 |
1332.520 |
1150.470 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1487.370 |
1526.630 |
1290.670 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1077.760 |
723.760 |
517.910 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
409.610 |
802.870 |
772.760 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
126.770 |
256.840 |
265.610 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
282.840 |
546.030 |
507.150 |
|
|
|
|
|
|
|
|
|
|
Prior Period Adjustment - Income Tax and Others |
5.410 |
(8.060) |
15.310 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1494.030 |
1198.050 |
917.580 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
200.000 |
200.000 |
200.000 |
|
|
|
Proposed
Dividend |
|
|
|
|
|
|
Equity Shares |
-- |
28.690 |
28.690 |
|
|
|
Preference Shares |
-- |
7.200 |
7.200 |
|
|
|
Tax on Proposed Dividend |
-- |
6.100 |
6.100 |
|
|
BALANCE CARRIED
TO THE B/S |
1582.280 |
1494.030 |
1198.050 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
3248.170 |
2454.790 |
2496.250 |
|
|
|
Stores & Spares |
205.820 |
103.960 |
42.090 |
|
|
|
Capital Goods |
34.880 |
357.190 |
489.010 |
|
|
TOTAL IMPORTS |
3488.870 |
2915.940 |
3027.350 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
- Basic |
25.12 |
46.14 |
45.70 |
|
|
|
- Diluted |
25.12 |
46.14 |
45.70 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
31.03.2012 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Sales Turnover |
4723.480 |
4049.140 |
3189.080 |
4493.230 |
|
Total Expenditure |
5000.540 |
4424.320 |
3371.210 |
4697.050 |
|
PBIDT (Excl
OI) |
(277.060) |
(375.180) |
(182.130) |
(203.820) |
|
Other Income |
14.610 |
42.790 |
26.220 |
87.660 |
|
Operating
Profit |
(262.450) |
(332.390) |
(155.910) |
(116.160) |
|
Interest |
729.910 |
820.750 |
759.620 |
907.010 |
|
Exceptional
Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
(992.360) |
(1153.140) |
(915.530) |
(1023.170) |
|
Depreciation |
375.640 |
376.800 |
398.790 |
343.360 |
|
Profit
Before Tax |
(1368.000) |
(1529.930) |
(1314.320) |
(1366.530) |
|
Tax |
0.000 |
0.000 |
0.000 |
0.000 |
|
Reported PAT |
(1368.000) |
(1529.930) |
(1314.320) |
(1366.530) |
|
Extraordinary Items |
9.200 |
0.000 |
(9.160) |
837.740 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
(1358.790) |
(1529.930) |
(1323.930) |
(528.790) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
1.22
|
2.71
|
3.00 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
1.78
|
4.01
|
4.59 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
1.27
|
3.00
|
4.94 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.05
|
0.11
|
0.17 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
3.93
|
2.93
|
3.32 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.19
|
2.25
|
3.08 |
LOCAL AGENCY FURTHER INFORMATION
|
Check List by
Info Agents |
Available in
Report (Yes / No) |
|
1) Year of Establishment |
Yes |
|
2) Locality of the firm |
Yes |
|
3) Constitutions of the firm |
Yes |
|
4) Premises details |
No |
|
5) Type of Business |
Yes |
|
6) Line of Business |
Yes |
|
7) Promoter's background |
-- |
|
8) No. of employees |
Yes |
|
9) Name of person contacted |
Yes |
|
10) Designation of contact person |
Yes |
|
11) Turnover of firm for last three years |
Yes |
|
12) Profitability for last three years |
Yes |
|
13) Reasons for variation <> 20% |
-- |
|
14) Estimation for coming financial year |
No |
|
15) Capital in the business |
Yes |
|
16) Details of sister concerns |
Yes |
|
17) Major suppliers |
No |
|
18) Major customers |
No |
|
19) Payments terms |
Yes |
|
20) Export / Import details (if
applicable) |
Yes |
|
21) Market information |
-- |
|
22) Litigations that the firm / promoter
involved in |
-- |
|
23) Banking Details |
Yes |
|
24) Banking facility details |
Yes |
|
25) Conduct of the banking account |
-- |
|
26) Buyer visit details |
-- |
|
27) Financials, if provided |
Yes |
|
28) Incorporation details, if applicable |
Yes |
|
29) Last accounts filed at ROC |
Yes |
|
30) Major Shareholders, if available |
-- |
PROFILE
Subject is engaged in the manufacturing and marketing of induction
furnaces, steel items and battery operated vehicles. In May, 2010, the Company
acquired 100% of Shree Ram Electrocast Private Limited, a Company having its
manufacturing complex at Siruguppa, Bellary, Karnataka, for pig iron with
installed capacity of 1,20,000 million tons per annum and power generation
plant of 2.5 megawatt. In June, 2010, the Company acquired 100% of Hans Ispat
Limited, a Company having manufacturing facilities for Billet of 84000 tons per
annum, TMT Rolling Mill of 1,20,000 tons per annum and SS Rolling Mill of 72000
tons per annum. The Company has also acquired the shareholding in Shree Hans
Papers Limited, a subsidiary of Hans Ispat Limited. The Company’s subsidiaries include
ET Elec-Trans Limited and Bhaskarpara Coal Company Limited. In March 2011, the
Company incorporated a wholly owned subsidiary in the Republic of Mali,
Electrotherm Mali SARL. For the fiscal year ended 31 March 2010, Electrotherm
(India) Ltd's revenues increased 19% to RS20.17B. Net income available for
common increased 1% to RS226M. Revenues reflect higher income from Special
Steel Division . Net income was partially offset by an increase in material
cost, higher employees cost and increased financial expenses. The company is
engaged in manufacturing of induction furnaces and steel items.
OPERATIONS
During the year, the company has achieved a turnover of Rs. 22968.93
Millions representing an increase of 14.69% over the previous year turnover of
Rs. 20027.53 Millions. The Net Profit for the year is Rs. 288.25 Millions as
against RS. 537.97 Millions of the previous year.
AN OVERVIEW OF
ECONOMY:
The global economy
is recovering at different speed in various regions. The world economy is projected
to grow at about 4.5 % in 2010 and 4.25% in 2011 (Source :IMF) These positive
trends have led to lower risk perceptions, greater global financial stability
and improved business sentiments. Having said so, there are some other
problematic factors that may impact the future growth. There is economic
instability in some countries in Europe. Ireland for example is facing threats
of complete banking collapse. Also there has been a surge in prices of
ommodities and oil leading to high levels of inflation, which has hit normal
life especially in emerging economies like India. There is growing unrest in
the Middle East and North African region which has affected Asian trade and
market sentiments.
The Indian Economy
is well on its way to regaining the high growth momentum see in the period
immediately prior to the economic meltdown of 2008. India’s GDP grew at a
healthy 8.6% in the year 2010-11 as against 8.00% in the previous year. The
growth rate shall be 9.00% GDP at the start of fiscal 2011-12. This growth was
largely owing to the significant growth in the agricultural sector at 5.4%
(0.4% in 2009-10); the service and industrial sectors maintained their previous
year’s momentum. These positive trends have led to lower risk perceptions,
greater global financial stability and improved business sentiments. India is
today rated as one of the most attractive investment destinations across the
globe.
INDUSTRY STRUCTURE
and DEVELOPMENT
A. ENGINEERING,
CAPITAL EQUIPMENT AND PROJECTS DIVISION
Demand and production
of steel in India has been rising continuously over the last few years. The
steel ministry has projected the steel production to go up to 200 million tones
by 2020 from the present level of around 66 million tones. While china’s per
capita steel consumption over the last 10 years has hovered around 350 kgs,
India’s per capita consumption is a meager 40 kg’s. Given this, the demand
forecast of 200 million tones by 2020 does not seem unrealistic. They expect a
sizeable portion of this demand to be met through the secondary steel making
route given the various issue related to land and mining being faced by large
primary producers in the
country today.
More and more mini steel plants (0.3 to 0.6 million tones) through the
induction route are expected to come up over the next 5 years to cater to
regional demands as logistics cost plays a more critical role in PAN India
Distribution of long steel products of large producers. New technologies which
have been developed over the last few years will help in solving the key issue
of refining steel produced through the induction route to bring it at par, with
respect to quality, with the primary producers. The setting up of fully
integrated mini steel plants with larger capacities (Iron ore Kiln
Induction
rolling
mill and CPP) is opening up new opportunities for companies like Electrotherm
in the areas of material handling, scrap processing and pollution control. The
company is gearing up to take advantage of these large opportunities by
developing some of these new products which are
going to be
necessary either for productivity improvement or for making the plants
environmentally more compliant.
Developments
1. Induction
Melting:
·
Bigger capacity
furnace with improved efficiency to produce steel cheaper by about 600 / ton
compared to smaller capacity furnace.
·
Development of
continuous casting machine for smaller heat size. This helps improving their
end customer’s productivity while still remain cost effective.
·
Efficient furnace
for foundry.
·
Development of
higher capacity induction melting furnace for aluminum.
·
Automation to
improve operational efficiency and increase utilization factor up to 94 %.
2. Induction
Heating and Hardening:
·
Enhancement in the
operating frequency and power range of High frequency power supply.
·
Digital controller
for all power supply above 10 Khz frequency.
3. Dynamic power
factor correction system and Thyristor switched capacitor bank:
Dynamic power
factor correction system being developed by the company is state of the art
technology which gives superior response time helps maintaining constant power
factor of the plant with fluctuating reactive power of the load.
4. Quality steel
production through Induction Furnace:
Direct Reduced
Iron (DRI) has increased for production steel in induction furnace to the tune
of 70 % to 80%, which has aggravated the issue of higher Phosphorus and Sulfur
level in steel produced through Induction Furnace route. The induction refining
equipment helps to produce steel with lower Phosphorus and Sulfur. This has
open up new avenue to those who uses induction furnace to produce steel using
higher percentage of DRI and new route getting establish to produce quality
steel in small size (50,000 to 2,50,000 tons / annum) which is economically
competitive to ARC furnace route.
B. SPECIAL STEEL
DIVISION
Steel Industry
World Steel
forecasts that apparent steel use will increase by 5.9% to 1,359 mmt in 2011,
following 13.2% growth in 2010. In 2012, it is forecast that world steel demand
will grow further by 6.0% to reach a new record of 1,441 mmt. (Source: World
Steel Association) India is the 5th largest producer of crude steel in the
world and is expected to become the 2nd largest producer by 2015-16. India
continues to maintain its lead position as the world’s largest producer of
direct reduced iron (DRI) or sponge iron during January- December 2010, a rank
it has held on since 2002.
Despite the
recessionary trend continuing in the beginning of the year and restricted
supply of iron ore from Hospet region, the steel production was not affected
substantially. In the year 2010-11, the crude steel production in India was
68.2 MMT approximately, registering a growth of over 4% over previous year.
Secondary route in
Domestic Steel production
In India, the
secondary producers of steel are currently playing an important role in
production and growth of steel industry. In the annual report for FY 2010-11,
the Indian Ministry of Steel recognized the contribution of several relatively
smaller and medium scale units such as Sponge iron plants, Mini Blast Furnace
units, Electric Arc Furnaces, Induction Furnaces, which not only play an
important role in production of secondary steel, but also contribute
substantial value addition in terms of quality, innovation and cost
effectiveness.
Per Capita
Consumption of Finished Steel
The present per
capita consumption of steel in the country is only around 49 kg against the
world average of 182 kg. China growing and large economy like India registered
a per capita steel consumption in excess of 400Kgs during 2009-10. A study has
been commissioned through the Joint Plant Committee (JPC) during the 2010-11 to
estimate the per capita demand for iron and steel in the rural sector of India
and to determine the factors that can contribute to its enhancement. The
findings of the study are expected to be finalized by June 2011. (Source:
Ministry of Steel, India)
Share of Induction
route
The SME sector in India
has benefited largely from the ability to set up Mini Steel Mills with
Induction route. The Induction furnace technology helps SMEs to set up Steel
production facility within a short period of time and with reasonably small
investment. Besides it also offers operational flexibility in terms of
production, given the variation in the raw material availability. On the whole,
for a mini steel mill, it is very economical to produce steel through the
induction route. With the introduction of better technology and building of
larger capacity induction furnaces, primarily by the efforts of Electrotherm,
the total installed capacity for induction route of Steel production has
steadily increased over the years.
DI Pipe Industry
Domestic DI pipe
manufacturing capacity stood at about 1.2 MMT by the end of the year 2010-11.
Present capacity utilisation is about 70-75% in the industry. It is to be noted
that almost all major manufacturers have backward integration with in-house pig
iron manufacturing facility. Most of them also have captive iron ore mines.
Domestic DI pipe
demand grew steadily at the rate of 12% over the last five years and stood at
around 1 MMT by the end of FY 2010- 11. There is additional demand that is
being created through increasing investments by the local government bodies in
installing new water supply facilities. This has yet to be serviced and
presents a positive outlook for the DI Pipe market. Prices realisation of DI
pipes were in the range of 42,000 to 48,000 during year 2010-11 with an average
realisation of around 45000. Prices of DI pipes depend on basic raw material
prices such as Pig Iron and prevailing demand-supply scenario for DI pipes. The
Company has retained its position as third largest manufacturer of DI Pipe (by
actual production), and is augmenting its capacity further.
Developments
The Company
renewed the appointment of ECS (Eicher Consultancy Services, subsidiary of
Price Waterhouse Coopers) to help it with productivity and EBITDA improvements
through FY 2010-11. Several process improvements have been made in SMS, TMT
Mill and Structural Mill to improve the productivity and optimize cost.
The Company is a
leading manufacturer of DI Pipe and has commissioned its 128 mł Blast Furnace
and new facility for DI Pipe production of higher diameter up-to 1200 mm. The
Company also got BIS approval for higher sizes of DI Pipes up-to 1200 mm. The
Marketing and Distribution Network for DIP has been expanded by opening offices
across 8 states in the Country and experienced people have been leading the
marketing function across the network. With the approval from Power Grid
Corporation, the company has established credibility in the market and is
poised to increase the production of angles for Transmission Line Tower (TLT)
applications. The Company has also received BIS approval for its MS Billets
which has improved its realization in the Gujarat market.
Electro TMT Plus
bars have a lion’s share of Gujarat market and with the brand image, the price
realizations are steadily improving and the product has been approved for
supply to various large Government and private projects.
C. ELECTRIC
VEHICLE DIVISION
Electric Vehicle
market has seen an upward trend, in India, in the last quarter wherein there is
growth in revenues of more than 45% due to the following:
a) Subsidy from
the Central Government
b) Petrol Price
hike
c) Better
performance of YO bykes
They believe the
petrol prices will continue to rise due to increasing demand and therefore
electric vehicles will come forth as an alternative solution for the consumer
over the period of time. YObykes will be able to take best advantage of this
situation because of it being the longest standing brand in the market, its
reputation of being the EV technology leader and vast network across India. Also,
the Promoters of Electrotherm are starting an independent venture wherein they
will produce batteries for deep discharge application. The technology they have
acquired from an US based technology oriented company which has got the world
class Microcell Carbon Foam technology for making the batteries for
Deepdischarge application. They believe these batteries will be the game
changer for Yobykes because of their ability to stand longer life cycles,
higher energy density and its ability to take faster charge and discharge. They
have started various initiatives in their division with objective to
consolidate their position in the market and extract maximum from
this opportunity.
The results of these initiatives will be visible from the end of this quarter.
INTERNAL CONTROL
SYSTEM, IT SECURITY AND ADEQUACY
After successful
implementation of SAP in major divisions, the company has rolled out SAP in
other divisions during the year 2010-11. Company has gained enormously in terms
of bringing transparency, improved operational efficiency and moreover the
controls in the operations apart from other intangible benefits.
To further
strengthen the Information control, the company revamped the whole IT
infrastructure and built well equipped data center. The company has implemented
complete suite of Microsoft solutions and signed Enterprise Agreement which
made the company license compliant. Entire infrastructure solution runs on HP
hardware platform. Enough redundancy has been built to take care of any
contingency to ensure business continuity. The company has been secured from
any external threats to the information system and data. The company has
deployed Data Loss Prevention (DLP) solution to protect precious business data
from theft, loss andpilferage. There had been no single incidence reported of
virus attack or intrusions during the entire year. Robust back-up and recovery
procedure has been built and practiced to ensure minimum down time to rebuild
whole system in case of any technical failures or any catastrophe. The company
has built secured and scalable data communication infrastructure to connect its
plants and offices across the geographies of its presence.
FIXED ASSETS:
·
Free
·
·
Building
·
Plant and Machinery
·
Furniture and Fixtures
·
Vehicles
WEBSITE DETAILS:
PROFILE:
Subject has been engineering metal melting industry since 1983. In Electrotherm
from inception, R and D has been their core competency with a common focus on
developing and adopting technologies to customize customer needs making it a
key driver in their Multi-Divisional growth story. Electrotherm is the only
Indian company with indigenously developed world class technologies of global
scale. Their team focused with a Customer First attitude believes technology
should be right-sized, with the process designed to minimize waste and selected
to enhance product performance with an embedded attitude of customizing
engineering and metallurgical solutions to customers that made Electrotherm
grow into one of the market leaders in the metal melting industries in India
and globally. Electrotherm today is a Multi-divisional ISO: 900:2000 certified
global Company holding a 2,500,000 kW market share in the metal melting
industry globally. Electrotherm is a research driven company with an
appreciating asset in intellectual capital its primary source of their
multi-divisional growth story. The company has developed robust processes with
inbuilt learning and continuous improvements in every job performed. This
develops effective product lifecycle management and is the foundation of their
product innovations to ensure their customers achieve their top line growth.
Engineering innovations for the global metal melting industry has been possible
due to their focused 2,607 employees with a State-of-the-art manufacturing
facilities and R and D centre manufactures a wide spectrum of products for the
metal melting industry and electric vehicles and are manufactured in four
different divisions of the company. Their products continually undergone
research and development leading to innovations of global scale to suit the
changing global environment or the customer requirements. The Customer Focus of
each division in manufacturing is in tandem with the R and D to ensure their
customers achieve their objectives for top line growth.
The major critical customized parts are manufactured in house under stringent
quality control management and the finished products tested to withstand laid
out quality parameters with Just-In-Time delivery management principle to
prevent customer installation and operational cost overruns make achieving
deadlines a reality. The real responsibility at Electrotherm is to care for the
installed equipments work with a zero down time objective. This principle of
servicing their customers any time anywhere has made them a truly global
company. They cater to the domestic market while exports form major component
of their turnover. They service the global markets around the world with
specific focus upon
HISTORY:
Story
of Performance
Before Electrotherm was a company, it was a dream. This dream came true in 1983
with passion, persistence and performance of promoters. The mission was simple:
to serve Indian Steel Industry by providing cutting-edge technology and pass on
the benefits to the customers.
The Company ventured into manufacturing of equipments for melting
metals at a time when capability of multinationals was accepted
as a norm in
Soon, Electrotherm envisioned the gap in technology and took upon them the task
of indigenous development of Medium Frequency Induction Melting Furnace at a
time when these furnaces were imported into India at exorbitant prices.
Electrotherm also took upon servicing induction furnaces in far-flung areas of
the country.
Today, approximately over 25 million MT of steel is melted in
MILESTONE:
1983
ELECTROTHERM received its - first order - of 350 KW/ 500 KG.
1984
Designed and developed
1989
ELECTROTHERM enters GLOBAL MARKET – Received orders from
1992
Developed and commissioned
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 Mukand 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
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 Limited,
1999
Developed and Commissioned Bent Rail Hardening System at Digvijay Steel Industries, Batala.
1999
Developed and Commissioned
2001
Developed and Commissioned a 50MT Metal Refining Konverter at Shah Alloys Limited, Ahmedabad.
2004
Developed and Commissioned
2005
AMA-Outstanding Entrepreneur Of The Year Award – 2005” in recognition
of the contribution to industrial developments in
2007
Automotive Product of the Year (Yo Bykes)
2008
Developed and Commissioned
2009
Developed
ACHIEVEMENTS
Awards
and Accolades
Hard work, passion, talent and performance together mean only one thing–
Success. They have received several National Awards
• IMM-Binatone Award
• National Award Udyog Patra
• IEEMA Award
• Vasvik Research Award and Dhatu Nayak Award
for designing
• State-of-the-art
PRESS RELEASE
Electrotherm (India)
Limited (ELECTHERM) - Alternative Energy - Deals and Alliances Profile
Electrotherm (India) Limited (ELECTHERM) - Alternative Energy - Deals and
Alliances Profile provides you comprehensive data and trend analysis of the
company's Mergers and Acquisitions (M and As), partnerships and financings. The
report provides detailed information on Mergers and Acquisitions, Equity/Debt
Offerings, Private Equity, Venture Financing and Partnership transactions
recorded by the company over a five year period. The report offers detailed
comparative data on the number of deals and their value categorized into deal
types, sub-sector and regions.
GlobalData derived the data presented in this report from proprietary in-house
Alternative Energy eTrack deals database, and primary and secondary research.
Scope
- Financial Deals - Analysis of the company's financial deals including Mergers
and Acquisitions, Equity/Debt Offerings, Private Equity, Venture Financing and
Partnerships.
- Deals by Year - Chart and table displaying information encompassing the
number of deals and value reported by the company by year, for a five year
period.
- Deals by Type - Chart and table depicting information including the number of
deals and value reported by the company by type such as Mergers and
Acquisitions, Equity/Debt Offering etc.
- Deals by Region - Chart and table presenting information on the number of
deals and value reported by the company by region, which includes North
America, Europe, Asia Pacific, the Middle East and Africa and South and Central
America.
- Deals by Sub-sector - Chart and table showing information on the number of
deals and value reported by the company, by sub-sector.
- Major Deals - Information on the company's major financial deals. Each such
deal has a brief summary, deal type, deal rationale; and deal financials and
target Company’s (major public companies) key financial metrics and ratios.
- Business Description - A brief description of the company's operations.
- Key Employees - A list of the key executives of the company.
- Important Locations and Subsidiaries - A list and contact details of key centers
of operation and subsidiaries of the company.
- Key Competitors - A list of the key competitors of the company.
- Key Recent Developments - A brief on recent news about the company.
Reasons to Buy
Get detailed information on the company's financial deals that enable you to
understand the company's expansion/divestiture and fund requirements
- The profile enables you to analyze the company's financial deals by region,
by year, by business segments and by type, for a five year period.
Understand the company's business segments' expansion / divestiture strategy
- The profile presents deals from the company's core business segments'
perspective to help you understand its corporate strategy.
Access elaborate information on the company's recent financial deals that
enable you to understand the key deals which have shaped the company
- Detailed information on major recent deals includes a summary of each deal,
deal type, deal rationale, deal financials and Target Company's key financial
metrics and ratios.
Equip yourself with detailed information about the company’s operations to
identify potential customers and suppliers.
- The profile analyzes the company's business structure, locations and subsidiaries,
key executives and key competitors.
Stay up-to-date on the major developments affecting the company
- Recent developments concerning the company presented in the profile help you track important events.
Gain key insights into the company for academic or business research
- Key elements such as break up of deals into categories and information on detailed major deals are incorporated into the profile to assist your academic or business research needs.
Note: Some sections may be missing if data is unavailable for the company.
CARE trims to
BB/A4 ratings on Electrotherm India's bank facilities
EquityBites
19 August 2011
[What follows is
the full text of the news story.]
19 August 2011 -
Rating agency CARE yesterday downgraded the ratings on the long and short-term
bank facilities of Indian induction furnaces manufacturer Electrotherm (India)
Ltd (BOM:526608) to BB/A4 from BBB/A3+.
The move was
triggered by the deterioration in the firm's financial risk profile and
liquidity position caused by its debt-funded capital expenditure.
The ratings were
further constrained by the continued underperformance of the firm's electric
vehicle division and by the cyclical nature of the steel industry.
The firm's
dominant foothold on the domestic induction furnace market and its diversified
product offerings in the steel segment with captive sponge iron capacity and
power plant partially compensate for these weaknesses.
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.55.73 |
|
|
1 |
Rs.87.26 |
|
Euro |
1 |
Rs.69.84 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--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 |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
61 |
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 |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.