MIRA INFORM REPORT

Report Date :

13.07.2013

IDENTIFICATION DETAILS

Name :	ELECTROTHERM (INDIA) LIMITED
Registered Office :	A–1, Skylark Apartment, Satellite Road, Satellite, Ahmedabad – 380015, Gujarat
Country :	India
Financials (as on) :	30.09.2012
Date of Incorporation :	29.10.1986
Com. Reg. No.:	04-009126
Capital Investment / Paid-up Capital :	Rs. 234.760 Millions
CIN No.: [Company Identification No.]	L29249GJ1986PLC009126
TAN No.: [Tax Deduction & Collection Account No.]	AHME00193E
PAN No.: [Permanent Account No.]	AAACE2669L
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchange.
Line of Business :	Subject is engaged in the Manufacturing of Electronic furnaces and other capital equipments, Sponge and PIG Iron, Ferrous and Non-ferrous Billets/Bars/Ingots, Duct Iron Pipes, Battery operated vehicles, Electric Power Generation and services relating to Electric furnaces, other capital equipments and battery operated vehicles.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ca (11)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Exist
Comments :	Subject is an established company having moderate track record. The financial available for review are for 18 months starting from 1^st April and ending on 30^th September 2012. The company has incurred huge loss from its operations during the said period due to which the reserve have been eroded. External borrowings appear to be huge and act as a threat to the liquidity. The share price of the company has seen a drastic and continuous fall since November, 2012. However, business is active. Payment terms are reported as slow. The company can be considered for normal business dealings on a safe and secured 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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long term bank facilities: D
Rating Explanation	Default or are expected to be in default soon (Suspended)
Date	13.02.2013

Rating Agency Name	CARE
Rating	Short term bank facilities: D
Rating Explanation	Default or are expected to be in default on maturity(Suspended)
Date	13.02.2013

Note: Rating has been suspended as the company has not furnished the information required by CARE for monitoring of the rating.

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office :	A–1, Skylark Apartment, Satellite Road, Satellite, Ahmedabad – 380 015, Gujarat, India
Tel. No.:	91-79-26768844
Mobile No.:	91-9825159296 (Mr. Shailesh Bhandari)
Fax No.:	91-79-26768855
E-Mail :	sec@electrotherm.com ho@electrothrm.com
Website :	www.elctrotherm.com
Area:	3500 sq. ft.
Location :	Owned
Factory 1 :	Engineering and Projects Division Survey No. 72, Village : Palodia, Taluka : Kalol, District : Gandhinagar – 382 115, Gujarat, India
Tel. No.:	91-2717-234554/ 660550/ 55/ 56/ 57
Fax No.:	91-2717-237612/ 234616
Factory 2 :	Special Steel, DI Pipe and Electric Vehicle Division Survey No. 325, Village : Samakhiyali, Taluka : Bhachau, District : Kutch, Gujarat, India
Factory 3 :	Wind Farm Project Village : Dhank, Taluka : Upleta, District : Rajkot, Gujarat, India
Factory 4 :	Renewables Division 414/1, GIDC, Phase II, Vatva Industrial Area, Ahmedabad – 382 445, Gujarat, India
Factory 5 :	Transmission Line Tower Division Village : Juni Jithardi, Taluka : Karjan, District : Vadodara, Gujarat, India

DIRECTORS

As on 30.09.2012

Name :	Mr. Mukesh Bhandari
Designation :	Chairman and CTO
Name :	Mr. Shailesh Bhandari
Designation :	Managing Director
Name :	Mr. Avinash Bhandari
Designation :	Joint Managing Director and CEO
Name :	Mr. Narendra Dalal
Designation :	Whole Time Director
Name :	Mr. Nilesh Desai
Designation :	Director
Name :	Mr. Ram Singh
Designation :	Director
Name :	Mr. Pradeep Krishna Prasad
Designation :	Director
Name :	Mr. Ravikumar Trehan ( up to 26.09.2012)
Designation :	Director
Name :	Mr. Madhusudan Somani (up to 01.10.2012)
Designation :	Director
Name :	Dr. Sudhir Kapur ( up to 26.11.2012)
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Jigar Shah
Designation :	Company Secretary
Name :	Mr. Shirish Maniar (w.e.f. 02.08.2010)
Designation :	Chief Financial Officer

SHAREHOLDING PATTERN

As on 31.03.2013

Category of Shareholder	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	2280575	19.87
Bodies Corporate	975000	8.50
Sub Total	3255575	28.37
(2) Foreign
Individuals (Non-Residents Individuals / Foreign Individuals)	512500	4.47
Sub Total	512500	4.47
Total shareholding of Promoter and Promoter Group (A)	3768075	32.83
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	9800	0.09
Financial Institutions / Banks	100	0.00
Any Others (Specify)	1366666	11.91
Foreign Financial Institutions	1366666	11.91
Sub Total	1376566	11.99
(2) Non-Institutions
Bodies Corporate	1312693	11.44
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	1350214	11.77
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	292366	2.55
Any Others (Specify)	3376460	29.42
Foreign Corporate Bodies	2000000	17.43
Clearing Members	30687	0.27
Trusts	1292231	11.26
Non Resident Indians	53542	0.47
Sub Total	6331733	55.17
Total Public shareholding (B)	7708299	67.17
Total (A)+(B)	11476374	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	11476374	0.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in the Manufacturing of Electronic furnaces and other capital equipments, Sponge and PIG Iron, Ferrous and Non-ferrous Billets/Bars/Ingots, Duct Iron Pipes, Battery operated vehicles, Electric Power Generation and services relating to Electric furnaces, other capital equipments and battery operated vehicles.

Products :

ITC Code No.	Product Description
851420	Electronic Induction Furnace
851440	Induction Heating Equipment
8502	Electricity Power Generation
7207	Steel Billets
7213	Steel Bars
8711	Electric Vehicle

· 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

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	0.359
3 Battery Operated Vehicles	Nos.	150000	8190
4 Ferrous and Non-Ferrous Billets /Bars/Ingots	MT	314000	247282
5 Duct Iron Pipes	MT	192000	82998
6 Sponge and Pig Iron	MT	286000	3085

# Total Installed Capacity is of 286000 MT

* Actual Production is excluding captive consumption

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Bank of India

· State Bank of India

· Punjab National Bank

· State Bank of Travancore

· Corporation Bank

· Bank of Baroda

· Dena Bank

· Oriental Bank of Commerce

· Union Bank of India

· Canara Bank

· UCO Bank

· ICICI Bank Limited

· State Bank of Indore

· Standard Chartered Bank

· Allahabad Bank

Facilities :

Secured Loans	30.09.2012 Rs. In Millions	31.03.2011 Rs. In Millions
Long Term Borrowings
Term Loans from Bank
Rupee Term Loan (Secured by first Charge by way of Equitable mortgage of all immovable properties and hypothecation of specified movable assets situated at Vatva, Palodia, Dhank, Samakhiyali – Kutch, and Chhadawada –Bhachau and Juni Jithardi, Karjan, Vadodara and Bank Fixed Deposits and as second charge on all Stock-in-Trade and Receivables. Further the loans are guaranted by the personal guarantees of some of Directors.)	4065.810	4003.260
Foreign Currency Term Loan (ECB Loan is secured by Pari Passu Charge over the movable assets and first Pari Passu Charge on immovable assets of the company.)	458.700	490.490
Hire Purchase Finance for Vehicles (Secured By Hypothecation of Specific Vehicles)	1.200	5.150
Short Term Borrowings
Term Loan (a)	9333.710	47.160
Working Capital Facilities (b)	9887.520	7222.040
Buyers Credit (b)	64.790	1546.680
Letter of Credit (b)	234.450	2281.280
Total	24046.180	15596.060

Note :

(a) Secured by first Charge by way of Equitable mortgage of all immovable properties and hypothecation of specified movable assets situated at Vatva, Palodia, Dhank, Samakhiyali – Kutch, and Chhadawada –Bhachau and Juni Jithardi, Karjan, Vadodara and Bank Fixed Deposits and as second charge on all Stock-in-Trade and Receivables. Further the loans are guaranted by the personal guarantees of some of Directors.

(b) Secured by first Charge by way of Equitable mortgage of all immovable properties and hypothecation of specified movable assets situated at Vatva, Palodia, Dhank, Samakhiyali – Kutch, and Chhadawada –Bhachau and Juni Jithardi, Karjan, Vadodara and Bank Fixed Deposits and as second charge on all Stock-in-Trade and Receivables. Further the loans are guaranted by the personal guarantees of some of Directors.)

Banking Relations :	--
Auditors :
Name :	Mehta Loadha and Company Chartered Accountants
Address :	Ahmedabad, Gujarat, India
Subsidiary companies:	Jinhua Indus Enterprises Limited Jinhua Jahari Enterprises Limited Bhaskarpara Coal Company Limited ET Elec-Trans Limited Hans Ispat Limited Shree Ram Electro Cast Limited Shree Hans Papers Limited Electrotherm Mali SARL
Enterprises owned or significantly influenced by key management personnel or their relatives (Except foreign companies) :	Ahmedabad Aviation and Aeronautics Limited Crystal Real Estate Private Limited Palace Tours and Air Charters Private Limited Western India Speciality Hospital Limited E-Motion Power Limited Indus Elec-Trans Private Limited Afghan Trading Private Limited Bhandari Brothers Commercial Private Limited Jayshri Petro-Yarn Private Limited Adroit Trading and Investment Company EIL Hospitality Private Limited EIL Realty Private Limited EIL Software Private Limited EIL Software Services Offshore Private Limited EIL Technology Private Limited Electrotherm Engineering and Projects Limited Kappa Consultancy Private Limited Electrotherm Foundation. (Formerly Known as Electrotherm Infrastructure Private Limited) Gujarat Mint Alloys Limited Indus Real Estate Private Limited Electra Transformers Private Limited New Delhi Real Estate Private Limited (Formerly Known as ICS Commercial Private Limited) Palace Infrastructure Private Limited Suraj Real Estate Private Limited S N Advisory Private Limited Suraj Advisory Services Private Limited Airfones Innovatives Private Limited BNB Real Estate Private Limited ETAIN Energy Holdings Limited Electrotherm Solar Limited (Formerly Known as Electrotherm Energy Holdings Limited) Palace Solar Energy Private Limited SBRB Real Estate Private Limited (Formerly Known as Inspira Solar Energy Limited) (Formerly known as NET Architectures Private Limited) Bhandari Real Estate Private Limited ETAIN Immodo Renewables Limited Arjun Ceramics and Carbon Private Limited Indus Chargers and Controllers Private Limited Arjun Solar One Private Limited Arjun Green Power Private Limited Arjun Raj Solar One Private Limited Mangalam Information Technologies Private Limited* Liberty Finance and Leasing Company Private Limited* Magnum Limited* Alwar Trading and Investment Company* Palanpur Reality Developers Private Limited* Electrotherm Renewables Private Limited* S B Realty Developers Private Limited* Sun Infrapower Private Limited* Sun Residency Private Limited* Firefly Energy Limited* Indus Coils and Plates Limited* Bhandari Charitable Trust * These parties have ceased to be as Associates of the Company during the period.

CAPITAL STRUCTURE

As on 30.09.2012

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 and Paid-up Capital :

No. of Shares	Type	Value	Amount
11475374	Equity Shares	Rs. 10/- each	Rs. 114.760 Millions
12000000	6% Non-Cumulative Redeemable Preference Share (3560000 Preference Shares Redeemable not later than 11^th March 2025, 4440000 Preference Shares Redeemable not later than 1^st April 2025 and 4000000 Preference Shares Redeemable not later than 14^th May 2025)	Rs. 10/- each	Rs. 120.000 Millions
	Total		Rs. 234.760 Millions

Reconciliation of the number of shares outstanding at the beginning and at the end of the reporting period

Equity Shares	As on 30.09.2012
	Number of Shares
Shares outstanding at the beginning of the Period	11476374
Shares outstanding at the end of the Period	11476374

6% Non-Cumulative Redeemable Preference Shares	As on 30.09.2012
	Number of Shares
Shares outstanding at the beginning of the Period	12000000
Shares outstanding at the end of the Period	12000000

Rights, preference and restriction attached to Equity Shares

i) The face value of the Equity shares is Rs. 10/- per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividend in Indian Rupees. During the period, the company has not declared any dividend.

ii) The shareholders are not entitled to exercise any voting right either personally or proxy at any meeting of the Company in cases calls or other sums payable have not been paid.

iii) In the event of liquidation of the company, holder of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Rights, preference and restriction attached to Preference Shares

i) The face value of the Preference shares is Rs. 10/- per share. The Preference share holder does not have any voting rights. During the period , the company has not declared any dividend

ii) In the event of liquidation of the company, the preference share holders will have priority over equity shares in the payment of dividend and repayment of capital.

There were no shares reserved at the period-end for issue under options and contracts / commitments for the sale of shares/disinvestment.

Shareholders holding more than 5% of the Shares in the Company:

Equity Shares	Number of Shares	% holding
Castleshine Pte Limited	1000000	8.71
DEG-Deutsche Investitions-Und Entwicklungsgesellschaft MBH	1366666	11.91
IDBI Trusteeship Services Limited (India Advantage Fund-VI)	1292231	11.26
Leadhaven Pte Limited	1000000	8.71
Mr. Mukesh Bhandari	809500	7.05
Mr. Shailesh Bhandari	848275	7.39
Western India Speciality Hospital Limited	975000	8.50

6% Non-Cumulative Redeemable Preference Shares	Number of Shares	% holding
Web Businesses.com Global Limited	2730000	22.75
Lavish Packagers Limited	2580000	21.50
Highland Finance and Investments Private Limited	3240000	27.00
Froid Finance and Investments Private Limited	1200000	10.00
Ahmedabad Aviation and Aeronautics Limited	1050000	8.75
Mr. Shailesh B. Bhandari	1200000	10.00

The Company has calls in arrears / unpaid calls of Rs. Nil.

FINANCIAL DATA

[all figures are in Rupees Millions]

SOURCES OF FUNDS	30.09.2012 (18 Months)	31.03.2011 (12 Months)
I. EQUITY AND LIABILITIES
(1)Shareholders’ Funds
(a) Share Capital	234.760	234.760
(b) Reserves & Surplus	(167.220)	7059.900
© Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	67.540	7294.660
(3) Non-Current Liabilities
(a) long-term borrowings	5019.900	4947.060
(b) Deferred tax liabilities (Net)	0.000	865.130
© Other long term liabilities	0.000	0.000
(d) long-term provisions	75.100	45.340
Total Non-current Liabilities (3)	5095.000	5857.530
(4) Current Liabilities
(a) Short term borrowings	21594.080	19206.660
(b) Trade payables	598.940	1863.760
© Other current liabilities	5362.990	2778.110
(d) Short-term provisions	22.720	15.510
Total Current Liabilities (4)	27578.730	23864.040
TOTAL	32741.270	37016.230
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	16197.470	15705.700
(ii) Intangible Assets	17.560	25.980
(iii) Capital work-in-progress	95.850	2335.070
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	1223.950	1083.870
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	227.590	184.910
(e) Other Non-current assets	292.720	342.200
Total Non-Current Assets	18055.140	19677.730
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	6942.880	8527.600
(c) Trade receivables	4459.350	5101.920
(d) Cash and cash equivalents	516.510	1180.320
(e) Short-term loans and advances	2746.620	2518.780
(f) Other current assets	20.770	9.880
Total Current Assets	14686.130	17338.500
TOTAL	32741.270	37106.230

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		30.000
2] Share Application Money		0.000
3] Reserves & Surplus		871.722
4] (Accumulated Losses)		0.000
NETWORTH		901.722
LOAN FUNDS
1] Secured Loans		133.131
2] Unsecured Loans		467.685
TOTAL BORROWING		600.816
DEFERRED TAX LIABILITIES		34.475
TOTAL		1537.013
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		428.169
Capital work-in-progress		53.631
INVESTMENT		0.873
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	386.288
	Sundry Debtors	548.597
	Cash & Bank Balances	436.519
	Other Current Assets	0.000
	Loans & Advances	304.216
Total Current Assets		1675.620
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	260.168
	Other Current Liabilities	146.833
	Provisions	214.279
Total Current Liabilities		621.280
Net Current Assets		1054.340
MISCELLANEOUS EXPENSES		0.000
TOTAL		1537.013

PROFIT & LOSS ACCOUNT

	PARTICULARS		30.09.2012 (18 Months)	31.03.2011 (12 Months)	31.03.2010
	SALES
		Income	22389.030	22968.930	20027.530
		Other Income	316.420	163.900	140.820
		TOTAL (A)	22705.450	23132.830	20168.350
Less	EXPENSES
		Cost of Materials Consumed	15192.560	13610.960
		Purchases of Stock in Trade	1388.220	6186.940
		Changes in Inventories of Finished Goods and Work in Process	1606.560	(4827.380)
		Employee Benefits Expense	1215.050	645.930
		Other Expenses	4710.750	4099.700
		Preliminary Expenses Written Off	10.750	7.350
		TOTAL (B)	24123.890	19723.500	17309.200
Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(1418.440)	3409.330	2859.150
Less	FINANCIAL EXPENSES (D)		4740.340	1921.960	1332.520
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(6158.780)	1487.370	1526.630
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1991.830	1077.760	723.760
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		(8150.610)	409.610	802.870
Less	TAX (H)		864.910	126.770	256.840
	PROFIT/(LOSS) AFTER TAX (G-H) (I)		(7285.700)	282.840	546.030
Add/ Less	PRIOR PERIOD ADJUSTMENTS		(6.830)	5.410	(8.060)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1582.280	1494.030	1198.050
Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	200.000	200.000
		Proposed Dividend
		Equity Shares	0.000	0.000	28.690
		Preference Shares	0.000	0.000	7.200
		Tax on Proposed Dividend	0.000	0.000	6.100
	BALANCE CARRIED TO THE B/S		5710.250	1582.280	1494.030
	EARNINGS IN FOREIGN CURRENCY		1389.630	797.530	534.530
	IMPORTS
		Raw Materials	3450.710	3248.170	2454.790
		Stores & Spares	185.560	2085.820	103.960
		Capital Goods	108.470	34.880	357.190
	TOTAL IMPORTS		3744.740	5368.870	2915.940
	Earnings / Loss Per Share (Rs.)		(310.35)	25.12	46.14

QUARTERLY RESULTS

PARTICULARS	31.12.2012 (Unaudited)	31.03.2013 (Unaudited)
Net sales	2648.800	2785.200
Total Expenditure	2561.800	2751.400
Profit before interest, depreciation and tax (Excluding Other Income)	87.000	33.800
Other income	13.400	15.100
Operating Profit	100.400	48.900
Interest	293.300	138.100
Exceptional Items	0.000	0.000
Profit before depreciation and tax	(192.900)	(89.200)
Depreciation	432.400	271.400
Profit before tax	(625.300)	(360.700)
Tax	0.000	0.000
Profit after tax	(625.300)	(360.700)
Extraordinary items	0.000	0.000
Prior period expenses	0.000	0.000
Other adjustments	0.000	0.000
Net Profit	(625.300)	(360.700)

KEY RATIOS

PARTICULARS		30.09.2012 (18 Months)	31.03.2011 (12 Months)	31.03.2010
PAT / Total Income	(%)	(32.09)	1.22	2.71
Net Profit Margin (PBT/Sales)	(%)	(36.46)	1.78	4.01
Return on Total Assets (PBT/Total Assets}	(%)	(53.60)	2.29	34.85
Return on Investment (ROI) (PBT/Networth)		(120.678)	0.06	0.89
Debt Equity Ratio (Total Debt /Networth)		394.04	3.31	0.67
Current Ratio (Current Asset/Current Liability)		1.27	1.19	2.70

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	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	Yes
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	No
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
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	No
20]	Export / Import details (if applicable)	No
21]	Market information	----------
22]	Litigations that the firm / promoter involved in	Yes
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	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	No
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

CASE DETAILS:

HIGH COURT OF GUJARAT

COMPANY APPLICATION No. 158 of 2013

Status: PENDING CCIN No: 001057201300158

Next Listing Date : 01/08/2013

Coram HONOURABLE MR.JUSTICE K.M.THAKER

S.NO.	Name of the Petitioner	Advocate On Record
1	STATE BANK OF INDIA	MR UDAY R BHATT for: Applicant(s) 1

S.NO.	Name of the Respondant	Advocate On Record
1	UCO BANK
2	ELECTROTHERM INDIA LIMITED

Presented On : 22/04/2013 Registered On : 09/05/2013

Bench Category : SINGLE BENCH District :AHMEDABAD

Case Originated From : THROUGH ADVOCATE Listed : 4 times

StageName : ADJOURNED MATTERS

OFFICE OBJECTION

Filing Stage:	WHETHER INDEX-CUM-CHRONOLOGY OF DOCUMNETS AND EVENTS FILED
Filing Stage:	WHETHER PAGING IS DONE
Filing Stage:	WHETHER COPIES ARE LEGIBLE AND WHETHER TYPED COPIES HAND WRITTEN ANNEXURES FILED
Filing Stage:	WHETHER COPIES ARE TRUE COPIES SO SIGNED BY ADVOCATE

Classification : SJ - OJ - COMPANY APPLICATION - COMPANIES ACT, 1956 - FROM BOARD FOR INDUSTRIES FINANCE AND RECONSTRUCTION (BIFR)

Act : COMPANIES ACT, 1956

OFFICE DETAILS

S. No.	Filing Date	Document Name	Advocate Name	Court Fee on Document	Document Details
1	22/04/2013	VAKALATNAMA	MR UDAY R BHATT ADVOCATE for PETITIONER(s) 1	5	MR UDAY R BHATT:1
2	22/04/2013	MEMO OF APPEAL/PETITION/SUIT	MR UDAY R BHATT ADVOCATE for PETITIONER(s) 1	50	MR UDAY R BHATT:1

COURT PROCEEDINGS

S. No.	Notified Date	CourtCode	Board Sr. No.	Stage	Action	Coram
1	10/05/2013	13	13	OFFICE OBJECTION (FILING STAGE)	NEXT DATE	HONOURABLE MR.JUSTICE R.M.CHHAYA
2	18/06/2013	16	-	undefined	undefined	HONOURABLE MR.JUSTICE R.M.CHHAYA
3	20/06/2013	13	1	ADMISSION (FRESH MATTERS)	NEXT DATE	HONOURABLE MR.JUSTICE K.M.THAKER
4	08/07/2013	13	3	ADMISSION (FRESH MATTERS)	NEXT DATE	HONOURABLE MR.JUSTICE K.M.THAKER
5	01/08/2013	13	-	ADJOURNED MATTERS	undefined	HONOURABLE MR.JUSTICE K.M.THAKER

AVAILABLE ORDERS

S. No.	Case Details	Judge Name	Order Date	CAV	Judgement	View		Download
1	COMPANY APPLICATION/158/2013	HONOURABLE MR.JUSTICE R.M.CHHAYA	10/05/2013	N	N	View	Download

UNSECURED LOANS:

Particulars	30.09.2012 Rs. In Millions	31.03.2011 Rs. In Millions
Long Term Borrowings
Foreign Currency Term Loan	494.190	448.160
Short Term Borrowings
Loans and Advances from other parties repayable on demand from:-
Related Parties (Including Body Corporates)	23.890	28.230
Body Corporate	3.350	3.350
Directors	43.890	6.350
Term Loan from Banks
Rupee Term Loan	1739.590	7848.620
Foreign Currency Term Loan	262.890	222.950
Total	2567.800	8557.660

CORPORATE INFORMATION

Subject is a listed public company domiciled in India and Incorporated under the provisions of the Companies Act, 1956. The Company is engaged in the Manufacturing of Electronic furnaces and other capital equipments, Sponge and PIG Iron, Ferrous and Non-ferrous Billets/Bars/Ingots, Duct Iron Pipes, Battery operated vehicles, Electric Power Generation and services relating to Electric furnaces, other capital equipments and battery operated vehicles.

OPERATIONS:

During the period ended on 30th September, 2012, the total revenue of the Company is Rs. 22705.45 Millions compared to revenue of Rs. 23132.83 Million of previous financial year. The Loss for the period is Rs. 7292.53 Millions against Net profit of Rs. 288.25 Millions of the previous financial year.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

OUTLOOK / OVERVIEW OF THE ECONOMY:

In 2011 the world crude steel production reached 1518 Millions tonnes and showed a growth of 6.2% over 2010. (Source: World Steel Association) China remained the world’s largest crude steel producer in 2011 (684 mt) followed by Japan (108 mt), the USA (86.4 mt) and India (72.2 mt; prov) at the 4th position.

The WSA has projected that global apparent steel use will increase by 3.6% to 1422 Mt in 2012, following growth of 5.6% in 2011. In 2013, it is forecasted that world steel demand will grow further by 4.5% to around 1486 Mt. China’s apparent steel use in 2012 and 2013 is expected to increase by 4% in both the years. For India, growth in apparent steel use is expected to grow by 6.9% in 2012 and by 9.4% in 2013. Per capita finished steel consumption in 2011 is estimated at 215 kg for world and 460 kg for China.

Domestic Scenario

The Indian steel industry has entered into a new development stage from 2007-08, riding high on the resurgent economy and rising demand for steel. Rapid rise in production has resulted in India becoming the 4th largest producer of crude steel and the largest producer of sponge iron or DRI in the world.

As per the report of the Working Group on Steel for the 12th Plan, there exist many factors which carry the potential of raising the per capita steel consumption in the country, currently estimated at 55 kg. These include among others, an estimated infrastructure investment of nearly a trillion dollars, a projected growth of manufacturing from current 8% to 11-12%, increase in urban population to 600 Millions by 2030 from the current level of 400 Millions, emergence of the rural market for steel currently consuming around 10 kg per annum buoyed by projects like Bharat Nirman, Pradhan Mantri Gram Sadak Yojana, Rajiv Gandhi Awaas Yojana among others.

At the time of its release, the National Steel Policy 2005 had envisaged steel production to reach 110 Millions tonnes by 2019-20. However, based on the assessment of the current ongoing projects, both in greenfield and brownfield, the Working Group on Steel for the 12th Plan has projected that the crude steel capacity in the county is likely to be 140 mt by 2016-17 and has the potential to reach 149 mt if all requirements are adequately met.

INDUSTRY STRUCTURE AND DEVELOPOMENTS

ENGINEERING AND PROJECTS DIVISION:

The slowdown in the Indian economy has affected the addition of new capacity for steel-making but the capacity addition is expected to pick up in the coming years in line with the growth that has been forecasted by the steel ministry.

Recently, BIS has changed the norms of quality for long products and made them more stringent and comparable with the world standards. These new standards are expected to come in force by 31st March 2013. A sizable production of the long products happens through Induction furnace route. A patent has been granted to Electrotherm for De-phosphorization and De-sulphurization through Induction furnace route. This has opened up new avenues for the company to introduce new process of producing steel to meet the new norms set by BIS. Many plants in the range of 0.2 to 0.3 MTPA will upgrade their equipment to meet the new quality standards

of steel. This throws upon a huge opportunity for the company to build and sell large number of LRFs over the next 5 years.

In the past few years, Electrotherm has executed many Turn Key projects in the overseas emerging markets. These are now serving as strong references for the company to generate new business as the economy in these countries is picking up post the 2008 economic meltdown. The company has already become the preferred supplier of turnkey solutions for setting up of upto 0.5 MTPA steel plants in the world through the induction route. The company has established a strong presence for these kinds of projects/ standalone induction furnaces in markets like Africa, Middle East, South East Asia, Saudi Arabia, Turkey, Iran and Iraq. The revenues from these

export markets are expected to continue to grow over the next 5 years.

The company successfully introduced continuous casting machine for small size induction furnaces in April 2011. The product has been extremely well accepted in the market with more than 10 casters already commissioned across India. With the country’s small steel manufacturing units wanting to migrate from ingot making to billet making, the demand for these small casters suitable for small induction furnace units is expected to grow exponentially over the next 3 – 5 years. With a captive installed base of more than 800 induction furnaces and additional 150 furnaces being installed every year, the company expects to sell substantial number of casters going forward.

With robust demand coming from the Auto sector, the foundry sector is continuing to grow. This has resulted into a continuous increase in the demand for small induction furnaces for foundry applications. They expect this demand to further improve as the capex cycle kicks in with the expected reduction in interest rates by RBI over the next few quarters.

Developments

1. Induction Melting:

• Lining vibrator for improving lining life of the refractory thereby improving productivity and uptime.
• Development of additional features in continuous casting machine to improve quality of steel like EMS
• Power sharing energy efficient furnace for foundry.
• Automation to improve operational efficiency and increase utilization factor up to 94%.

2. Induction Heating and Hardening:

• Enhancement in the power range of medium frequency power supply for mass heating application with feature of near unity PF operation at any power level.
• Digital platform for control of power supply.

3. Power factor correction system:

• Dynamically Real time Dynamic power factor correction system coupled with fixed compensation to maintain near unity PF to reduce contract demand with fluctuating load.

4. Pollution Control Equipment:

• To further improve customer sustainability while meeting the environment norms, the company is working on yet another opportunity of developing effective pollution control equipment and scrap processing equipment for its customers.

STEEL DIVISION:

The year gone by has been an extremely challenging year for the steel sector in India. While the demand for most steel products slowed down due to slowing of the GDP/ economic growth on one side, the raw material availability became a serious area of concern with Supreme Court imposing bans in key mining sectors like Hospet, Bellary and Goa. Due to non-availability/ reduced availability of raw material for steel making, the capacity utilization of the sector (especially for units in the Western and Southern part of the country) dwindled.

The company could not source iron ore from Bellary for running of it’s steel and pipe plant in adequate quantities and had to resort to importing of expensive pellets. This not only effected the capacity utilization of the plant but also had a severe negative impact on the profitability. With the situation in Bellary not expected to change in the near term, the company has arranged for sourcing of iron ore from Africa. With the logistics for sourcing of this iron ore from Africa getting streamlined, the availability going forward is expected to improve and this will have a substantial positive impact on the profitability of the company and should help the company turnaround.

The iron ore situation in the country is improving albeit at a very slow pace. The shortage of the key raw material is going to result into continued high prices of the finished goods. The new initiatives of the Government (CRR cut) and expected initiatives in the near future are expected to revive the infrastructure sector. This will further improve the demand situation in coming quarters. Gujarat continues to be on a roll with a robust demand for steel products and growing. While the finished good prices are expected to remain high, the cost of production will reduce substantially in near future.

a) Availability of high quality, fixed cost iron ore from Africa

b) The high quality lower cost ore will substantially reduce the cost of sponge iron

c) Almost 14 MW of free power will be generated through the waste gases produced by operations of both the kilns bringing the average cost of power down substantially

d) The cost of the fuel in the TMT mill has reduced and is expected to further reduce on account of direct rolling.

All this is expected to help the company improve its profitability.

The company with its state-of-the-art equipment is already producing the long products in conformance with the new norms proposed by BIS expected to be implemented shortly. Thus, as and when the norms get implemented, the company will be a huge beneficiary and will see a substantial rise in demand of its products in the short run as the supply from non-standard manufacturers might get curtailed.

DI Pipe Division:

The pipe prices had fallen dramatically between Jan 2011 and Dec 2011 on account of entry of new players in the market substantially adding to the industry installed capacity. The market since then has stabilized and all the new players are also fully booked. This has once again resulted into improvement in the new order book prices for DI pipes. The average price realization is now improving and will remain at reasonably high levels given the high demand situation for rural water piping systems in the country. On the other hand, the cost of raw materials including coke and mill scale has gone down marginally. This should help improve the profitability of the pipe division in the coming year.

Developments:

The company has successfully implemented the use of LRF and De-phosphorization and De-sulphurization process for production of high quality low phosphorous forging grade billets. There is a large market for these low alloy steel forging grade billets in Rajkot and the company expects to sell larger quantities of such value added billets in the coming year. The company has also developed and introduced Fe-550D TMT rebars and the product has been well accepted in the market. The demand for this product is slowly on the rise and is helping the company realize better prices/ margins. This is also helping company compete effectively with larger players like Tata and Sail in the high end TMT market.

ELECTRIC VEHICLE DIVISION:

For the first time in last four years, the Electric Vehicles market saw an upturn during the financial 2011-12. YO bykes got the maximum advantage showing 70% growth with respect to last year. This growth has happened due to the following factors:

a) Subsidy from the Central Government

b) Petrol Price hike

c) High speed vehicles for YO bykes

d) YO bykes distribution network

e) Strong supply chain systems in place

The Company has struggled on the working capital issue because of late release of funds from the Ministry of New and Renewable Energy. The scheme was closed on 31st March 2012. Government of India has realized the potential of electric vehicle technology and its benefits to the nation. Hence, it has set up a National Electric Mobility Mission Plan (NEMMP), wherein it is investing around ` 14000 Crores on development of electric vehicle technology till 2020. They believe this would be a great catalyst for the development of eco-system for the electric vehicle market in there country.

Electrotherm R and D had been successful in developing a new type of charger, but faced issues in supply of good quality parts from China. In this year, they had established the manufacturing facility for producing chargers in Ahmedabad. This facility has not only reduced the lead time of charger availability but has also reduced the product quality issues. This facility will undertake controller and converter manufacturing, in next financial year. Also, They are setting up a production facility for high speed motors, wherein They envisage the similar benefits.

They are working on developing a new product with better features for the youth of Indian market. They expect the new product to be available in 2013-14 periods.

UNAUDITED FINANCIAL RESULTS (STANDALONE) FOR THE QUARTER ENDED DECEMBER 31, 2012

	Particulars	Quarter Ended ( Unaudited)
		31.12.2012
1	Income from operations
	(a) Net Sales / Income from Operations (Net of excise duty)	2648.780
	(b) Other operating income
	Total Income from operations (net)	2648.780
2	Expenses
	(a) Cost of materials consumed (Includes Purchases of stock-in-trade)	1915.560
	(b) Changes in inventories of finished goods, work-in-progress and stock-in-trade	(1.200)
	(c) Employee benefits expenses	161.500
	(d) Depreciation and amortisation expenses	432.420
	(e) Other expenses	485.910
	Total Expenses	2994.190
3	Profit / (Loss) from operations before other income, finance costs & exceptional items (1-2)	(345.41)
4	Other Income	13.350
5	Profit / (Loss) from ordinary activities before finance costs and exceptional items (3+4)	(332.060)
6	Finance Costs	293.250
7	Profit / (Loss) from ordinary activities after finance costs but before exceptional items (5-6)	(625.310)
8	Exceptional Items
9	Profit / (Loss) from ordinary activities before tax (7-8)	(625.310)
10	Tax expense	-
11	Net Profit / (Loss) from ordinary activities after Tax (9-10)	(625.310)
12	Extra Ordinary Items (Net of Tax Expense)	0.010
13	Net Profit / (Loss) for the period (11+12)	(625.300)
14	Paid up Equity Share Capital (Face value of Rs. 10 each)	114.760
15	Reserves excluding revaluation reserves
16	Earning per share (not annualized)
	(a) Before extra ordinary items
	(i) Basic	(54.49)
	(ii) Diluted	(54.49)
	(b) After extra ordinary items
	(i) Basic	(54.49)
	(ii) Diluted	(54.49)
A	PARTICULARS OF SHAREHOLDING
1	Public Share holding
	(a) No of Shares	7708299
	(b) Percentage of shareholding	67.17
2	Promoters and Promoter group shareholding
	(a) Pledged / Encumbered
	(i) Number of shares	300000
	(ii) Percentage of shares (as a % of the total shareholding of promoter and promoter	7.96
	group)
	(iii) Percentage of shares (as a % of the total share capital of the company)	2.61
(b)	(b) Non-encumbered
	(i) Number of shares	3468075
	(ii) Percentage of shares (as a % of the total shareholding of promoter and promoter	92.04
	group)
	(iii) Percentage of shares (as a % of the total share capital of the company)	30.22
B	The Status of Investor grievances for the quarter ended on 31^st December, 2012 :
	Pending at the beginning of the quarter	0
	Received during the quarter	0
	Disposed off during the quarter	0
	Remaining unresolved at the end of the quarter	0

SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED

Rs. In Millions

No.	Particulars	Quarter Ended Unaudited
		31/12/2012
1	Segment Revenue
	(a) Engineering and Projects Division	1087.230
	(b) Special Steel Division	1489.240
	(c) Electric Vehicle Division	79.550
	Total	2656.020
	Less: Inter Segment Revenue	7.240
	Net Sales / Income from Operations	2648.780
2	Segment Results Profit / (Loss) Before Finance Cost and Tax
	(a) Engineering and Projects Division	81.990
	(b) Special Steel Division	(374.770)
	(c) Electric Vehicle Division	(39.280)
	Total	(332.060)
	Less: (i) Finance Costs	293.250
	Less: (ii) Other Unallocable Expense net of Unallocable income
	Total Profit Before Tax	(625.310)
3	Capital employed (Segment Assets less Segment Liabilities)
	(a) Engineering and Projects Division	2119.950
	(b) Special Steel Division	1409.320
	(c) Electric Vehicle Division	534.380
	Total	4063.650

Notes:

1. The above Unaudited Financial Results were reviewed by the Audit Committee. The Board of Directors at its meeting held on 11th February, 2013 has approved the above results and its release.
2. During the quarter ending on December 31, 2012, the Company could not service interest and installment obligation on due dates. The Company has approached to all its lende to restructure the entire debt of the Company. In accordance to the guideline for Corporate Debt Restructuring (CDR) issued by the Reserve Bank of India, the flash report of the company was discussed at CDR Empowered Group (EG) meeting and the reference for restructuring the debt of the Company was admitted with CDR Cell as per meeting of the CDR EG held on August 23/24 2012 with cut off date as January 1, 2012.
3. During the quarter ending on December 31, 2012, the Company has not provided for bank interest on accounts which are declared as none performing assets by the Bank, as a result of which Loss during the quarter is understated to that extent and its amount is not determinable.
4. In the opinion of the management, the current assets, loans and advances are approximately of the value stated, if realised in the ordinary course of business.
5. Figures for the previous periods have been regrouped and reclassified to conform to the classification of the current period, where necessary.

FIXED ASSETS:

• Freehold Land
• Leasehold Land
• Building
• Plant and Machinery
• Computer
• Furniture and Fixtures
• Office Equipment
• Vehicles
• Software

WEB SITE DETAILS:

ARTICLE:

ELECTROTHERM GETS RELIEF FROM SC ON SHUTDOWN ORDER

In a relief to the Ahmedabad-based Electrotherm (India) Limited, the Supreme Court on Friday stayed Gujarat High Court's order to shut down the company's steel and pipe manufacturing plant in Bhachau block of Kutch district.

Following the Apex Court's order the production, which the High Court had directed to be stopped, would continue as before.

Joint managing director of Electrotherm Avinash Bhandari confirmed the development and said, "I have received the message from my team in Supreme Court that High court order has been stayed. I am yet get the order of the copy."

A division bench of Justices BS Chauhan and Dipak Misra observed that there was no need for closure of the plant. They also put in abeyance, the High Court's order cancelling the environment clearance granted to the company in January 2010. The stay is likely to continue until further orders from the court.

The next hearing on Electrotherm's appeal in Supreme Court is scheduled in thrid week of July.

Electrotherm (India) Limited had approached the Supreme Court early this week against Gujarat High Court's order to shut down its steel and pipe manufacturing plant in Bhachau block of Kutch district. On May 11 the Gujarat High Court had ordered shut down of Electrotherm's plant with 360,000 TPA capacity for producing structural steel, alloy steel and stainless steel, after concluding that company did not have proper environment clearance mandatory under Environment Impact Assessment (EIA) Notification, 2006.

High Court, which was acting on a petition filed by Kutch-based RTI activist Vipulkumar Patel, had held that the environmental clearance given for the plant was illegal as there was no public consultation before it was set up. The Court had also cancelled the environment clearance granted in January 2010.

According to case details, Electrotherm had applied for environment clearance, while it was expanding capacity of the unit.

The company had obtained environment clearance for expansion; but it turned out the they did not have clearance for the main project. This led the court to hold that the environment clearance accorded by the company was illegal and it cannot continue with production.

ELECTROTHERM (INDIA) FACES WINDING-UP THREAT

March 31, 2012

Business Line reported that even as Electrotherm (India) Limited is getting ready to transfer its ductile iron pipes business and 100% stake in a subsidiary for INR 950 crore to Saint Gobain of France, it is confronted with a winding up petition.

Though it may come as a relief for the company that no order has yet been issued by the court in this regard, there is no comfort to the shareholders as the stock hit its 52 week low on Friday on the NSE. In fact, the stock has shed a near 75% value in the past one year.

Electrotherm (India) Limited has said that the Gujarat High Court has admitted a petition filed by UCO Bank to wind up EIL. While the petition has been admitted by the High Court, no winding up order has been made against the company. The company has filed an appeal seeking stay on the order of admission.

It was on December 14 last year, Electrotherm executed binding agreements following which Saint Gobain Produits Pour La Construction SAS, France, would acquire the ductile iron pipes business and 100 per cent stake in a subsidiary for Rs 950 crore, in addition to the value of working capital at closing.

Mr Avinash Bhandari joint MD of Electrotherm (India) said then that the transaction would enable the company to focus on its core businesses of engineering and steel and to reduce debt.

It is not clear what was the reason for UCO Bank to approach the court for winding up the company at this juncture, when the company has signed a major deal that would help clean up the balance sheet.

Electrotherm’s board of directors on January 30, 2012, had approved the proposal to make a reference to the Corporate Debt Restructuring cell. Subsequently, the board approved the extension of financial year 2011-2012 by three months, i.e. up to June 30, 2012.

In the Q3 of FY 2011-12, the company recorded a standalone turnover of Rs 3189.000 Millions compared with Rs 4049.000 Millions in the same period last year. But the loss during the third quarter this year, though marginally less than in the same period in the previous year, was substantial at Rs 1314.000 Millions (Rs 1529.000 Millions).

For the first nine months of FY 2011-12, the company’s standalone turnover dropped sharply to Rs 11961.000 Millions from Rs 17091.000 Millions in the same period in 2010-11 fiscal.

The company sustained a colossal loss of Rs 4212.000 Millions during the nine months of the current fiscal against a net profit of Rs 248.000 Millions in the first nine months of the previous financial year. This was because of the substantial interest outgo of Rs 2310.000 Millions the company incurred during this period.

In the first nine months of FY 2011-12, the special steel division, of which the ductile iron pipes division is a part, contributed Rs 9627.000 Millions to the turnover.

It was not specifically mentioned in the results as to what was the share of DI pipes division, which the company has agreed to sell to Saint-Gobain, to the turnover of the company.

Of the three divisions of the company — engineering and projects division, special steel division and electric vehicle division — the highest turnover is from the special steel division.

But the shares of EIL sank to their 52-week low of Rs 62 on the NSE on March 30, 2012. The share had hit its 52-week high of Rs 232.50 (face value Rs 10) on April 6, 2011. The trading volume was about 9,070 shares.

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. 59.89
UK Pound	1	Rs. 90.88
Euro	1	Rs. 78.32

INFORMATION DETAILS

Report Prepared by :

VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	1
OPERATING SCALE	1~10	1
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	1
--LIQUIDITY	1~10	1
--LEVERAGE	1~10	1
--RESERVES	1~10	1
--CREDIT LINES	1~10	1
--MARGINS	-5~5	0
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		11

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.