MIRA INFORM REPORT

Report Date :

29.07.2013

IDENTIFICATION DETAILS

Name :	INDUCTOTHERM (INDIA) PRIVATE LIMITED
Registered Office :	Shri Kishorebhai D. Vyas Building, Ambli - Bopal Road, Bopal, Ahmedabad-380058, Gujarat
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	04.12.1982
Com. Reg. No.:	04-005739
Capital Investment / Paid-up Capital :	Rs. 10.000 Millions
CIN No.: [Company Identification No.]	U29120GJ1982PTC005739
TAN No.: [Tax Deduction & Collection Account No.]	AHMI00607F AHMI00050B AHMI00522E AHMI00562C
PAN No.: [Permanent Account No.]	AAACI3672B
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Induction Melting Furnaces, Induction Heating Furnaces and Induction Welding Equipment.
No. of Employees :	320 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (63)

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 8290000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is established company having fine track record. Company’s performance capacity is good. Financial position appears to be strong. Trade relations are reported as trustworthy. Business is active. Payments are reported to be regular and as per commitment. The company can be considered good for any 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.

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.

INFORMATION PARTED BY

Name :	Mr. Vijay
Designation :	Export department
Contact No.:	91-2717-231961
Date :	27.07.2013

LOCATIONS

Registered/ Head Office/ Factory:	Shri Kishorebhai D. Vyas Building, Ambli-Bopal Road, Bopal, Ahmedabad-380058, Gujarat, India
Tel. No.:	91-2717-231961 (8 Lines)/ 306196/ 306021
Fax No.:	91-2717-231268
E-Mail :	finance@inductothermindia.com iil@inductothermindia.com accounts@inductothermindla.com sales@inductothermindla.com spares@inductothermindla.com
Website :	www.inductothermindia.com
Location :	Owned

DIRECTORS

As on : 19.06.2013

Name :	Mr. Jagat Jayant Shah
Designation :	Managing Director
Address :	Saumya, C-62, Sterling City, Bopal, Ahmedabad - 380 058, Gujarat, India
Date of Birth/Age :	19.03.1942
Qualification :	M.S. (Mechanical) USA B.E. (Mechanical)
Date of Appointment :	21.06.1999
Voter ID No.:	LPZ1555317
DIN No.:	00198802
Name :	Mr. Bharat Lallubhai Seth
Designation :	Director
Address :	9/10, Bhanuchandra, Co-Operative Society, Near Ranchodji Temple, Jivrajpark, Ahmedabad, Gujarat, India
Date of Birth/Age :	30.11.1949
Date of Appointment :	01.04.2001
DIN No.:	00181139
Name :	Mr. Henry M. Rowan
Designation :	Director
Address :	C/O, Inductotherm Corporation, 10 Indel Avenu, Rancocas, New Jersey, USA-08073
Date of Birth/Age :	01.12.1923
Date of Appointment :	31.12.1988
DIN No.:	00179462
Name :	Mr. Michael Anthony Nallen
Designation :	Director
Address :	9, Perennial Lane, Hampden MA 01036, USA
Date of Birth/Age :	19.07.1960
Date of Appointment :	06.12.2010
DIN No.:	03364228
Name :	Mr. Satyen Nagesh Prabhu
Designation :	Director
Address :	C/O, Inductotherm Corporation, 10 Indel Avenu, Rancocas, New Jersey, USA-08073
Date of Birth/Age :	17.10.1961
Date of Appointment :	09.12.1999
DIN No.:	00173080
Name :	Mr. Gary Anthony Doyon
Designation :	Director
Address :	80, Touraine Road, Grosse Pointe Farms, Michi Gan, USA-48236
Date of Birth/Age :	09.12.1999
Date of Appointment :	13.01.1959
DIN No.:	02129096
Name :	Mr. Chirag Girishbhai Sitwala
Designation :	Whole Time Director
Address :	D-23, Ishan-2, Opposite Karnavati Club, SG Highway, Satellite, Ahmedabad – 380015, Gujarat, India
Date of Birth/Age :	30.11.1968
Qualification :	Diploma in Electronics
Date of Appointment :	17.07.2012
DIN No.:	05322617
Name :	Mr. Naishadh Nalinkant Parekh
Designation :	Whole Time Director
Address :	501, Shailraj Tower, Nirant Co-operative Housing Society, Vibhag IV, Vastrapur, Ahmedabad – 380015, Gujarat, India
Date of Birth/Age :	22.02.1957
Date of Appointment :	17.07.2012
DIN No.:	05324759
Name :	Mr. Prakash Dinkar Chaubal
Designation :	Whole Time Director
Address :	5, Suyash PM Road, Vile Parle (East), Mumbai-400057, Maharashtra, India
Date of Birth/Age :	28.08.1951
Qualification :	B.E. (Electronics)
Date of Appointment :	17.07.2012
DIN No.:	05324762
Name :	Mr. Vijay Vasudev Joshi
Designation :	Whole Time Director
Address :	14, Meera Madhav Apartments, Gulbai Tekra, Ahmedabad-380006, Gujarat, India
Date of Birth/Age :	27.09.1951
Qualification :	B.E. (Electronics)
Date of Appointment :	17.07.2012
DIN No.:	05322628

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on : 19.06.2013

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

Equity Share Break up (Percentage of Total Equity)

As on : 19.06.2013

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	99.99
Directors or relatives of Directors	0.01
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Induction Melting Furnaces, Induction Heating Furnaces and Induction Welding Equipment.

Products :

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

Terms :

Selling :

L/C, Cash and Credit

Purchasing :

L/C, Cash and Credit

GENERAL INFORMATION

Customers :	Manufacturing Companies
No. of Employees :	320 (Approximately)
Bankers :	State Bank of India, SPL Commercial Branch, Gandhigram, Opposite Gandhigram Railway Station, Ahmedabad-380009, Gujarat, India
Facilities :	--

Auditors :
Name :	Chandabhoy and Jassoobhoy Chartered Accountants
Address :	605-607, Silveroaks, Near Mahalakshmi Char Rasta, Paldi, Ahmedabad - 380007, Gujarat, India
Tel. No.:	91-79-26586063/ 26586069
Fax No.:	91-79-26586063
E-Mail :	cnjabd@vsnl.net
PAN No.:	AABFC0696F
Holding Company :	· Inductotherm Technologies Inc., USA.
Fellow Subsidiaries :	· Inductotherm Europe Limited · Inductoheat Europe GMBH · Inductotherm Corporation, USA · Inductotherm Group Australia Pty. Limited · Thermatool Corporation, USA · Inductoheat Incorporation, USA · Inductotherm Heating and Welding Technologies · Inductotherm Industries (Shanghai) Limited · Inductotherm Korea Limited · Indel Inc. · Inductotherm Group Brasil · PT Inductotherm Indonesia · Consarc Engineering Limited · Consarc Corporation · Inductotherm Group Taiwan Limited · Inductotherm Induksiyon Systemleri Sa. A · Servemelt Comm. Brasil · Alpha 1 Induction Service Centre · High Energy Corporation · Inductotherm Coating Equipment, S.A. · Magnetic Metals Corporation · Inductotherm Japan Limited · Radyne Corporation · Lepel Corporation · Electric Melting Services Company Limited, United Kingdom · Inductotherm Group Pune Private Limited CIN : U72200PN1998PTC012971 · HWG Inductoheat GMBH, Germany · Bricmont (India) Private Limited CIN : U72200PN1998PTC012971
Subsidiary Company :	· Newelco India Private Limited CIN : U31909DL1994PTC057720 PAN No: AABCN9033E

CAPITAL STRUCTURE

As on : 19.06.2013

Authorised Capital :

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

Issued, Subscribed & Paid-up Capital :

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

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	10.000	10.000	10.000
(b) Reserves & Surplus	2064.424	1848.458	1091.960
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1)+(2)	2074.424	1858.458	1101.960
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	0.000	0.000	0.000
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	206.667	172.268	275.778
(c) Other current liabilities	822.209	837.479	709.040
(d) Short-term provisions	2664.987	2244.571	1861.783
Total Current Liabilities (4)	3693.863	3254.318	2846.601
TOTAL	5768.287	5112.776	3948.561
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	508.936	231.877	252.635
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	16.445	4.721	0.508
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.599	0.824	0.825
(c) Deferred tax assets (net)	72.334	74.358	70.496
(d) Long-term Loan and Advances	5.425	281.014	5.657
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	603.739	592.794	330.121
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	923.321	940.013	885.476
(c) Trade receivables	499.878	382.914	265.396
(d) Cash and cash equivalents	1072.146	997.691	629.404
(e) Short-term loans and advances	2669.203	2199.364	1838.164
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	5164.548	4519.982	3618.440
TOTAL	5768.287	5112.776	3948.561

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	4003.600	3974.760	3424.100
		Other Income	NA	NA	NA
		TOTAL	NA	NA	NA
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	NA	NA	NA
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		1327.841	1182.481	1071.729
Less/ Add	DEPRECIATION/ AMORTISATION		40.589	39.837	37.508
	PROFIT BEFORE TAX		1287.252	1142.644	1034.221
Less	TAX		432.062	386.146	337.389
	PROFIT AFTER TAX		855.190	756.498	696.832
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1298.458	541.960	741.389
Less	APPROPRIATIONS
		Interim Dividend paid	550.000	0.000	700.000
		Corporate Dividend Tax	89.224	0.000	116.261
		Transfer to General Reserve	100.000	0.000	80.000
	BALANCE CARRIED TO THE B/S		1414.424	1298.458	541.960
	EARNINGS IN FOREIGN CURRENCY		1258.260	1198.830	889.700
	IMPORTS
		Raw Materials	NA	NA	447.658
		Capital Goods	NA	NA	17.470
	TOTAL IMPORTS		NA	NA	465.128
	Earnings Per Share (Rs.)		8551.90	7564.98	6968.32

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
Net Profit Margin (PBT/Sales)	(%)	32.15	28.74	30.20
Return on Total Assets (PBT/Total Assets}	(%)	24.90	23.80	28.54
Return on Investment (ROI) (PBT/Networth)		0.62	0.61	0.94
Debt Equity Ratio (Total Debt /Networth)		0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)		1.40	1.48	1.27

LOCAL AGENCY FURTHER INFORMATION

NOTE :

CURRENT MATURITIES OF LONG TERM DEBT : NOT AVAILABLE

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	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
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)	No
21]	Market information	------
22]	Litigations that the firm / promoter involved in	------
23]	Banking Details	Yes
24]	Banking facility details	No
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	Yes
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	No

LITIGATION DETAILS :

HIGH COURT OF GUJARAT

TAX APPEAL No. 608 of 2011

Status: PENDING (Converted from: ST/1743/2010) CCIN No: 001092201100608

Last Listing Date: 20/06/2012

Coram

· HONOURABLE MR.JUSTICE VIJAY MANOHAR SAHAI

· HONOURABLE MR.JUSTICE N.V.ANJARIA

S.NO.	Name of the Petitioner	Advocate On Record
1	COMMISSIONER OF INCOME TAX -II	MRS MAUNA M BHATT for: Appellant(s)  1

S.NO.	Name of the Respondant	Advocate On Record
1	INDUCTOTHERM (INDIA) PRIVATE LIMITED.

Presented On : 17/06/2010 Registered On : 17/06/2010

Bench Category : DIVISION BENCH District : AHMEDABAD

Case Originated From : THROUGH ADVOCATE Listed : 4 times

Stage Name : FOR REGULAR ADMISSION (SPL.)

Act INCOME-TAX ACT, 1961

S. No.	Filing Date	Document Name	Advocate Name	Court Fee on Document	Document Details
1	14/06/2010	MEMO OF APPEAL/PETITION/SUIT	MRS MAUNA M BHATT ADVOCATE for PETITIONER(s)  1	20	-

S. No.	Notified Date	Court Code	Board Sr. No.	Stage	Action	Coram
1	27.07.2010	3	-	FOR REGULAR ADMISSION (SPL.)	NEXT DATE	HONOURABLE MR.JUSTICE D.A.MEHTA HONOURABLE MS.JUSTICE H.N.DEVANI and REGISTRAR ( JUDICIAL)
2	31.03.2011	3	-	OFFICE OBJECTION REMOVED	NEXT DATE	HONOURABLE MR.JUSTICE AKIL KURESHI HONOURABLE MS JUSTICE SONIA GOKANI
3	20.06.2012	3	-	FOR REGULAR ADMISSION (SPL.)	NEXT DATE	HONOURABLE MR.JUSTICE VIJAY MANOHAR SAHAI HONOURABLE MR.JUSTICE N.V.ANJARIA

Available Orders

S. No.	Case Details	Judge Name	Order Date	CAV	Judgement
1	TAX APPEAL/608/2011	HONOURABLE MR.JUSTICE VIJAY MANOHAR SAHAI HONOURABLE MR.JUSTICE N.V.ANJARIA	20.06.2012	N	Y

OPERATIONS :

The company has achieved the highest ever turnover of Rs. 4003.600 Millions in the history of the company, in spite of volatile economic environment in India as well as globally. The equipment turnover of Heating division and Welding division has increased by 14% and 26% respectively, whereas in Melting division, the equipment turnover has decreased by 4% due to slowdown in steel industry. The company is able to maintain the spares turnover due to increased population of our equipment in the market. The company has introduced Vacuum Induction Technology in the market and has supplied first Vacuum Induction Equipment which is under

commissioning phase.

EXPANSION PROJECT :

The Architectural concept for New Plant at Sanand as proposed to the IGMAB (Inductotherm Group Management Advisory Board) requires changes and a new architectural concept was proposed, which was accepted and design work for the new plant layout has been started. Originally, the idea was to construct the buildings in phases and Phase-I design (Heating, Welding and other peripheral building requirements) were designed and the plans were submitted to the Government Authority for approval to start construction. Subsequent to that, it was felt that it would be better to construct the whole plant for which the design is being prepared and reviewed. They have now received the approval from the Government Authorities for the construction of Phase-I design that was submitted. In the meantime, earth filling work was started and is nearing the completion. The tube well has been completed and the boundary wall work is expected to start by end of April-2013

NOTE :

NO CHARGE EXIST FOR COMPANY.

FIXED ASSETS

· Land

· Building

· Electrical Installations

· Computers

· Office Equipments

· Furniture and Fixture

· Computers

· Vehicles

· Type Writers

· Air conditioner

· Electric Fans

· Xerox Machine

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No 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 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. 58.91
UK Pound	1	Rs. 90.68
Euro	1	Rs. 79.22

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	NIS

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--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	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		63

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	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.