MIRA INFORM REPORT

Report Date :

31.05.2014

IDENTIFICATION DETAILS

Name :	ELECTROTHERM (INDIA) LIMITED
Registered Office :	A–1, Skylark Apartment, Satellite Road, Satellite, Ahmedabad – 380015, Gujarat
Country :	India
Financials (as on) :	30.09.2013
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
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchange.
Line of Business :	Manufacturer 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 :	Information declined by the management.

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 and delayed
Litigation :	Exist
Comments :	Subject is an established company having a moderate track record. There company has incurred huge accumulated losses, which has eroded the net worth of the company. Profitability of the company seems to be under pressure. Business is active. Payment terms are slow and delayed. The company can be considered for 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, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
India	A1	A1

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

INDIAN ECONOMIC OVERVIEW

US investment bank Goldman Sachs  has upgraded its outlook on Indian markets as it expects positive impact of the election cycle.

India’s economy may grow 4.7 % in the current financial year, lower than the official estimate of 4.9 %, Fitch Rating said. The global rating agency expects the economy to pick up in the next two financial years.

Global ratings agency Standard & Poor said increasing focus by India Inc on lowering debt is likely to improve their credit profiles.

Singapore (1.1 million Indian tourists in 2012), Thailand (one million), the United Arab Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred holidays hotspots for Indians. The total figure is expected to increase to 1.93 million by 2017, according to the latest Eurmonitor international report.

There is a $29.34 bn outward foreign direct investment by domestic companies between April and January of 2013/14 which has seen some signs of recovery according to a Care Ratings report.

There are 264 number of new companies being set up every day on average during 2014. Most of them are registered in Mumbai. India had 1.38 million registered companies at the end of January, 2014.

Twitter like messaging service Weibo Corporation has filed to raise $ 500 million via a US initial public offering. Alibaba, which owns a stake in Weibo is expected to raise about $ 15 billion New York this year in the highest profile Internet IPO since Facebook’s in 2012.

Bharti Airtel has raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at a coupon rate of three per cent and maturing in 2020. This is the largest ever bond offering by an Indian company in Swiss Francs. Bharat Petroleum Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98 % coupon rate in February.

Indian Oil Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex at its almost complete Paradip refinery in Odhisha in three to four years. The company board is set to consider the setting up of a 700000 tonne per annum polypropylene plant at an estimated cost at Rs.3150 crore.

Global chief information officers at gathering in Bangalore in April to meet Indian startups at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in the making.

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 DENIED

Management Non Co-operative

(Contact No. : 91-2717-660550)

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
Corporate office / 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 :	Electric Vehicle Division Survey No. 689 Paiki, Village : Thol, Taluka : Kadi, District: Mehasana – 382715, Gujarat, India
Factory 5 :	Transmission Line Tower Division Village : Juni Jithardi, Taluka : Karjan, District : Vadodara, Gujarat, India

DIRECTORS

AS ON 31.03.2013

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. Nilesh Desai
Designation :	Director
Name :	Mr. Ram Singh
Designation :	Director
Name :	Mr. Pradeep Krishna Prasad
Designation :	Director

Name :	Mr. Narendra Dalal
Designation :	Director (up to31^st December, 2012)

KEY EXECUTIVES

Name :	Mr. Jigar Shah
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.03.2014

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of Total No. of Shares
(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	1303617	11.36
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	1343932	11.71
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	271479	2.37
Any Others (Specify)	3412705	29.74
Foreign Corporate Bodies	2000000	17.43
Clearing Members	50616	0.44
Trusts	1292231	11.26
Non Resident Indians	69858	0.61
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 :

Manufacturer 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

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 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 & Pig Iron #	MT	286000	3085

# Total Installed Capacity is of 2,86,000 MT

* Actual Production is excluding captive consumption

GENERAL INFORMATION

No. of Employees :

Information declined by the management.

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

· Standard Chartered Bank

· Allahabad Bank

Facilities :

Secured Loan	Rs. In Millions 30.09.2013	Rs. In Millions 30.09.2012
Long term borrowings
Term Loans from Bank
- Rupee Term Loan	2156.450	4065.810
- Foreign Currency Term Loan	436.500	458.700
Hire Purchase Finance for Vehicles (Secured By Hypothecation of Specific Vehicles)	0.710	1.200
Short-term borrowings
loan from Banks
Current Maturity of Long Term Borrowings	16466.100	13343.980
Working Capital Facilities	9986.770	9887.520
Buyers Credit	0.000	64.790
Letter of Credit	0.000	234.450
TOTAL	29046.530	28056.450

NOTES

LONG TERM BORROWINGS

(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 guaranteed by the personal guarantees of some of Directors.

(b) ECB Loan is secured by Pari Passu Charge over the movable assets and first Pari Passu Charge on immovable assets of the company.

SHORT TERM BORROWINGS

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 guaranteed by the personal guarantees of some of Directors.

(b) Secured by first charge by way of hypothecation of all stocks of raw material, packing materials, fuel, stock in process, semi-finished and finished goods, stores and spares not relating to the plant and machinery and stocks in trade and receivables and second charge on all movable fixed assets and second and subservient charge by way of equitable mortgage of all immovable properties situated at Vatva, Palodia, Dhank, Samakhyali- Kutch and Chhadawada -Bhachau. Further the loans are guaranteed by the personal guarantees of some of the Directors of the company.

Banking Relations :	--
Statutory Auditors :
Name :	Mehtaa Lodha and Company Chartered Accountant
Address :	Ahmedabad, Gujarat, India
Cost Auditors :
Name :	V H Savaliya and Company Cost Accountant
Address :	Ahmedabad, Gujarat, India
Internal Auditors :
Name :	RSM Astute Consulting Private Limited
Address :	Mumbai, Maharashtra, India
Subsidiaries :	· 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 · Palace Tours and Air Charters Private Limited · E-Motion Power Limited · Afghan Trading Private Limited · Jayshri Petro-Yarn Private Limited · EIL Hospitality Private Limited · EIL Software Private Limited · EIL Technology Private Limited · Kappa Consultancy Private Limited (Formerly Known as Electrotherm Infrastructure Private Limited) · Gujarat Mint Alloys Limited · Electra Transformers Private Limited (Formerly Known as ICS Commercial Private Limited) · Palace Infrastructure Private Limited · S N Advisory Private Limited · Airfones Innovatives Private Limited · ETAIN Energy Holdings Limited (Formerly Known as Electrotherm Energy Holdings Limited) · Palace Solar Energy Private Limited (Formerly Known as Inspira Solar Energy Limited) · Bhandari Real Estate Private Limited · Arjun Ceramics and Carbon Private Limited · Arjun Solar One Private Limited · Arjun Raj Solar One Private Limited · Liberty Finance and Leasing Company Private Limited* · Alwar Trading and Investment Company* · Electrotherm Renewables Private Limited* · Sun Infrapower Private Limited* · Firefly Energy Limited* · Bhandari Charitable Trust · Crystal Real Estate Private Limited · Western India Speciality Hospital Limited · Indus Elec-Trans Private Limited · Bhandari Brothers Commercial Private Limited · Adroit Trading and Investment Company · EIL Realty Private Limited · EIL Software Services Offshore Private Limited · Electrotherm Engineering and Projects Limited · Electrotherm Foundation · Indus Real Estate Private Limited · New Delhi Real Estate Private Limited · Suraj Real Estate Private Limited · Suraj Advisory Services Private Limited · BNB Real Estate Private Limited · Electrotherm Solar Limited · SBRB Real Estate Private Limited (Formerly known as NET Architectures Private Limited) · ETAIN Immodo Renewables Limited · Indus Chargers and Controllers Private Limited · Arjun Green Power Private Limited · Bhandari Charitable trust

CAPITAL STRUCTURE

AS ON 30.09.2013

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	Rs.10/- each	Rs. 114.760 Millions
12000000	6% Non-Cumulative Redeemable Preference Shares	Rs.10/- each	Rs. 120.000 Millions
	TOTAL		Rs. 234.760 Millions

A reconciliation of the number of shares outstanding at the beginning and at the end of the reporting period.

Equity Shares	No. of shares
Shares outstanding at the beginning of the Period	11,476,374
Shares outstanding at the end of the Period	11,476,374

6% Non-Cumulative Redeemable Preference Shares	No. of shares
Shares outstanding at the beginning of the Period	12,000,000
Shares outstanding at the end of the Period	12,000,000

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 year, 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.

(d) 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 year, the company has not declared any dividend.

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

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

Shareholders holding more than 5% of the Shares [as on 30.09.2013]

Equity Shares

Name of Shareholders	No. of Shares	% of Holding
DEG-Deutsche Investitions-Und Entwicklungsgesellschaft Mbh	1,366,666	11.91
IDBI Trusteeship Services Limited (India Advantage Fund-VI)	1,292,231	11.26
Castleshine PTE Limited	1,000,000	8.71
Leadhaven PTE Limited	1,000,000	8.71
Western India Speciality Hospital Limited	975,000	8.50
Mr. Shailesh Bhandari	848,275	7.39
Mr. Mukesh Bhandari	809,500	7.05

Preference Shares

Name of Shareholders	No. of Shares	% of Holding
Web Businesses.com Global Limited	2,730,000	22.75
Lavish Packagers Limited	2,580,000	21.50
Highland Finance and Investments Private Limited	3,240,000	27.00
Froid Finance and Investments Private Limited	1,200,000	10.00
Ahmedabad Aviation And Aeronautics Limited	1,050,000	8.75
Mr. Shailesh Bhandari	1,200,000	10.00

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	30.09.2013 (12 Months)	30.09.2012 (18 Months)	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	234.760	234.760	234.760
(b) Reserves & Surplus	(2737.920)	(167.220)	7059.900
(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)	(2503.160)	67.540	7294.660
(3) Non-Current Liabilities
(a) long-term borrowings	2693.660	5019.900	4947.060
(b) Deferred tax liabilities (Net)	0.000	0.000	865.130
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	53.680	75.530	45.340
Total Non-current Liabilities (3)	2747.340	5095.430	5857.530
(4) Current Liabilities
(a) Short term borrowings	28529.950	25604.360	19206.660
(b) Trade payables	2006.260	2155.200	1863.760
(c) Other current liabilities	2121.010	1267.590	2778.110
(d) Short-term provisions	42.470	42.540	15.510
Total Current Liabilities (4)	32699.690	29069.690	23864.040
TOTAL	32943.870	34232.660	37016.230
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	14787.830	16197.470	15705.700
(ii) Intangible Assets	18.240	17.560	25.980
(iii) Capital work-in-progress	111.390	95.850	2335.070
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	1273.870	1223.950	1083.870
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	202.470	227.650	184.910
(e) Other Non-current assets	332.670	292.720	342.200
Total Non-Current Assets	16726.470	18055.200	19677.730
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	6509.380	6942.880	8527.600
(c) Trade receivables	4656.520	4459.350	5101.920
(d) Cash and cash equivalents	270.130	440.620	1180.320
(e) Short-term loans and advances	4775.140	4313.840	2518.780
(f) Other current assets	6.230	20.770	9.880
Total Current Assets	16217.400	16177.460	17338.500
TOTAL	32943.870	34232.660	37016.230

PROFIT & LOSS ACCOUNT

	PARTICULARS		30.09.2013 (12 Months)	30.09.2012 (18 Months)	31.03.2011
	SALES
		Income	10552.320	22460.580	22968.930
		Other Income	64.060	258.020	163.900
		TOTAL (A)	10616.380	22718.600	23132.830
Less	EXPENSES
		Cost of Material Consumed	7392.130	15188.920	13610.960
		Purchase of Stock In Trade	259.900	1388.220	6186.940
		Employee benefits expenses	672.670	1215.130	645.930
		Other Expenses	2280.070	4727.460	4099.700
		Preliminary Expenses Written Off	0.220	10.750	7.350
		Changes in inventories of Finished goods, work in progress and stock in trade	146.150	1606.560	(4827.380)
		TOTAL (B)	10751.140	24137.040	19723.500
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(134.760)	(1418.440)	3409.330
Less	FINANCIAL EXPENSES (D)		1015.460	4740.340	1921.960
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(1150.22)	(6158.780)	1487.370
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1388.300	1991.820	1077.760
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		(2538.520)	(8150.600)	409.610
Less	TAX (H)		0.250	(864.890)	126.770
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		(2538.770)	(7285.710)	282.840
	Prior Period Adjustment - Income Tax and Others		(0120)	(6.820)	5.410
	Profit / (Loss) for the Period /Year		(2538.890)	(7292.530)	288.250
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(5710.250)	1582.280	1494.030
Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	0.000	200.000
		Equity Shares	0.000	0.000	0.000
		Preference Shares	0.000	0.000	0.000
		Tax on Proposed Dividend	0.000	0.000	0.000
	BALANCE CARRIED TO THE B/S		(8249.140)	(5710.250)	1582.280
	EARNINGS IN FOREIGN CURRENCY
		Export of Goods and Services	1298.150	1389.630	797.530
	TOTAL EARNINGS		1298.150	1389.630	797.530
	IMPORTS
		Raw Materials	772.470	3450.710	3248.170
		Stores & Spares	45.420	185.560	205.820
		Capital Goods	0.000	108.470	34.880
	TOTAL IMPORTS		817.890	3744.740	3488.870
	Earnings / (Loss) Per Share (Rs.)		(108.14)	(310.34)	25.12

KEY RATIOS

PARTICULARS		30.09.2013 (12 Months)	30.09.2012 (18 Months)	31.03.2011
PAT / Total Income	(%)	(23.91)	(32.07)	1.22
Net Profit Margin (PBT/Sales)	(%)	(24.06)	(36.29)	1.78
Return on Total Assets (PBT/Total Assets}	(%)	(8.04)	(24.76)	1.22
Return on Investment (ROI) (PBT/Networth)		1.01	(120.68)	0.06
Debt Equity Ratio (Total Debt /Networth)		(12.47)	453.42	3.31
Current Ratio (Current Asset/Current Liability)		0.50	0.56	0.73

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	30.09.2012	30.09.2013
	(INR in Mlns.)	(INR in Mlns.)	(INR in Mlns.)
Share Capital	234.760	234.760	234.760
Reserves & Surplus	7,059.900	(167.220)	(2,737.920)
Net worth	7,294.660	67.540	(2,503.160)
long-term borrowings	4,947.060	5,019.900	2,693.660
Short term borrowings	19,206.660	25,604.360	28,529.950
Total borrowings	24,153.720	30,624.260	31,223.610
Debt/Equity ratio	3.311	453.424	(12.474)

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	30.09.2012	30.09.2013
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Sales	22,968.930	22,460.580	10,552.320
		(2.213)	(53.018)

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	30.09.2012	30.09.2013
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Sales	22,968.930	22,460.580	10,552.320
Profit After Tax	282.840	(7,285.710)	(2,538.770)
	1.23%	(32.44%)	(24.06%)

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	No
30]	Major Shareholders, if available	No
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	No

UNSECURED LOAN

Particular	Rs. In Millions 30.09.2013	Rs. In Millions 30.09.2012
Long term borrowings
Foreign Currency Term Loan	100.000	494.190
Short-term borrowings
Loans and Advances from other parties repayable on demand from:-
Related Parties (Including Body Corporates)	25.900	23.900
Body Corporate	3.350	3.350
Directors	35.730	43.890
Term Loan from Banks
- Rupee Term Loan	1778.980	1739.590
- Foreign Currency Term Loan	233.120	262.890
TOTAL	2177.080	2567.810

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.

LITIGATION DETAILS

HIGH COURT OF GUJARAT

MISC.CIVIL APPLICATION (STAMP NUMBER) No. 1204 of 2010

[GROUP 01197-01204]

In SPECIAL CIVIL APPLICATION / 6298 / 2008 (DISPOSED) On : 18.03.2010

Status : PENDING				CCIN No : 001058201100136
Last Listing Date:		20.07.2010
Coram	· HONOURABLE MR.JUSTICE D.A. MEHTA · HONOURABLE MS.JUSTICE HARSHA DEVANI		Not Before :	· HONOURABLE MR.JUSTICE C.K. BUCH

S.NO.	Name of the Petitioner	Advocate On Record
1	UNION OF INDIA	(MR RM CHHAYA) for: Applicant(s)  1-2
2	COMMISSIONER OF CENTRAL EXCISEAND CUSTOMS

S.NO.	Name of the Respondent	Advocate On Record
1	KUTCH CHAMBER OF COMMERCE AND
2	INDUSTRY THROUGH SECRETARY
3	ELECTROTHERM (INDIA) LIMITED HARISH SHARMA SHAREHOLDER OF RESP. NO.2

Presented On	: 04.05.2010	Registered On	: 04.05.2010
Bench Category	: DIVISION BENCH	District	: KACHCHH
Case Originated From	: THROUGH ADVOCATE	Listed	: 2 times
Stage Name	: FOR ORDER
Act :	CIVIL PROCEDURE CODE, 1908

Office Details

S. No.	Filing Date	Document Name	Advocate Name	Court Fee on Document	Document Details
1	04.05.2010	APPLICATION	(MR RM CHHAYA) for PETITIONER(s)  2, 2	20	---

Court Proceedings

S. No.	notified date	Court code	Board Sr. No.	Stage	Action	Coram
1	20.07.2010	8	--	FOR ORDERS	NEXT DATE	· HONOURABLE MR.JUSTICE D.A. MEHTA HONOURABLE MS.JUSTICE HARSHA DEVANI

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

OUTLOOK / OVERVIEW OF THE ECONOMY:

GLOBAL AND DOMESTIC SCENARIO:

FY 12-13 was once again an extremely challenging year for the company. The overall demand for steel remained muted during the year on account of overall slowdown in the Indian economy and a serious slowdown in the infrastructure and construction sector.

The overall economic landscape is not likely to change for the better in the immediate future and see another challenging year. This apprehension stems from the fact that the global economy though improving, is witnessing a very slow turnaround. On the domestic front, high inflation, increased current account deficit and controlling monetary policies have slowed the consumption demand. The high interest rate scenario will ensure that there is a slow recovery in the infrastructure and construction sector. Even though the depreciation of the rupee will provide price protection, the overall demand situation is not expected to change dramatically in the immediate future.

INDUSTRY STRUCTURE AND DEVELOPMENTS:

ENGINEERING, CAPITAL EQUIPMENT AND PROJECTS DIVISION:

The continued slowdown in the Indian economy and in the infrastructure and construction sector continued to negatively impact the addition of new capacities for steel making. The demand for long products (TMT bars and structures) remained extremely low during the year thereby not allowing new plants to be set up. In fact, for existing small and medium sized plants, capacity utilization remained at a very low level throughout the year. The negative view of the banks towards the steel sector also made it difficult for the promoters/ companies to raise funds for their capacity expansion.

In spite of extremely challenging situation for the capital goods sector in general, the engineering and projects division recorded sales of approximately Rs.3879.200 Milloins in the twelve month period ending on September, 2013.

The execution of the new strategy which started two years back has started producing results in terms of the revenue growth. The company had introduced billet casters for mini steel plants two years back. The demand for this product picked up during the year and the company has already procured more than 80 orders since its launch in 2011. This, the company believes is a path breaking product which will not only allow the mini steel plants to transit from ingot making to billet making but also help them in improving their profitability substantially through benefits of higher price realization and cost savings through direct rolling. Given the huge savings in the direct rolling process, the company not only expects the new mini steel plants being set up to install a caster with induction melting furnaces but also most existing players to go for this equipment in their existing setups. As envisaged during the development phase of this product, it is turning out to be a huge opportunity for the company and the company now is more confident to achieve substantially more revenues from this product over the next 3 to 5 years.

BIS changed the norms for quality of long products and made them more stringent and comparable with the world standards. However, the implementation is still awaited. As a preparation for this change, the company has already successfully launched and commissioned its first refining equipment ‘ERF’ in South India with the patented technology for desulphurization and dephosphorousization and has received an extremely positive response from the industry. The company now expects a majority of the large sized induction based mini steel plants to add this equipment to their existing plants to meet the more stringent norms proposed by BIS. This is also a huge opportunity for the company and the company expects substantial revenue to come from this product over the next five years as the mini-steel makers will look to become BIS new-norms-compliant.

The export market continues to generate good revenues for the company. Africa, Saudi Arabia, Middle East and Iran have emerged as key exports market and are expected to continue to generate sizeable demands going forward also. Exports have contributed substantially to the revenues of the engineering division in the year gone by and expect this trend to continue in the medium-term.

The various productivity improvement equipments introduced by the company in the last two years also have been lapped up by the market and are continuing to generate good revenues for the division.

The company achieved the highest turnover ever since its inception in 1983 during the twelve month period ending on March 2013for its Engineering division and even though the capital goods industry is going through a slowdown, the company expects to surpass this turnover during the twelve months period ending on March, 2014.

Substantial new steel making capacities are expected to be created over the next five years as per the projections made by the Government and various industry bodies. A substantial proportion of this new capacity will be through the induction furnace route. The company remains confident of capturing a major market share of this new demand.

STEEL DIVISION:

The year gone by was once again a difficult year for this division of the company. The situation in Hospet Bellary area with respect to iron ore mining has improved although at a very slow pace. The operationalization of the ‘A’ category and certain ‘B’ category mines have eased the raw material situation for the plants operating in West and South India. However, on account of the lower availability, the prices have remained high affecting profitability. The demand for the finished products has also been seriously impacted on account of overall slowdown in the economy and more so in the infrastructure and the construction sector. This has put pressure on the prices of the finished goods which have remained on the lower side almost during the entire year. With more and more beneficiation and pillarization plants coming up in various regions across India, the company expects that the supply situation with respect to iron ore/ pellets to improve going forward. The finished goods prices, however, have seen an increase on account of Rupee depreciation. With imports reducing on account of Rupee depreciation, the prices going forward are expected to remain firm and may see further increase as and when the infrastructure sector improves.

DUCTILE IRON PIPE DIVISION:

The demand for Ductile Iron Pipes picked up once again during the year gone by. The prices which had fallen substantially on account of entry of newer players in the year 2011 has seen a major increase in the last 6 months. With price of coke expected to remain stable and the availability of iron ore fines improving from the Hospet region, the profitability of the pipe division is expected to further improve going forward. The order book situation as on September ‘13 end is very healthy and this demand is expected to continue in the near foreseeable future.

ELECTRIC VEHICLE DIVISION:

During the year gone by the Electric Vehicle division crossed a landmark total till date sales of 100,000 two-wheelers. This is reflection of the success of vehicles, which truly offer customers a combination of the most advanced technology, latest innovative and elegant designs and protection against soaring petrol price and pollution. Today, Indian Electric Vehicle Industry is passing through a very challenging phase and at YO bykes, are also facing the toughest time ever. The company see this as a temporary phase, as moving ahead foresee exponential growth for EV Industry in India. With the rising fuel prices in the international markets and the announcement of National Electric Mobility Mission Plan 2020, anticipating steep hike in demand for EV’s in India.

UNAUDITED FINANCIAL RESULTS (STANDALONE) FOR THE QUARTER ENDED DECEMBER 31, 2013

(Rs. In Millions)

Sr. No.	Particular	Quarter Ended
		31.12.2013
		Unaudited
1.	Net Sales/Income from Operations	2695.700
	Other Operating Income	--
	Total Income From Operations (Net)	2695.700
2.	Expenditure
	Cost of materials consumed	1902.400
	Purchase of stock in trade	9.000
	Changes in inventories of finished goods, work in progress and stock in trade	259.900
	Employee benefits expenses	165.600
	Depreciation and amortization expenses	346.900
	Other expenses	634.200
	Total Expenses	3318.000
3.	Profit From Operations before Other Income, Interest and Exceptional Items (1-2)	(622.300)
4.	Other Income	5.400
5.	Profit Before Interest and Exceptional Items (3+4)	(616.900)
6.	Finance Cost	232.100
7.	Profit After Interest but before Exceptional Items (5-6)	(849.000)
8.	Exceptional Items	--
9.	Profit from Ordinary Activities before Tax (7-8)	(849.000)
10.	Tax Expense	--
11.	Net Profit from Ordinary Activities after Tax (9-10)	(849.000)
12.	Extraordinary Item (net of expense)	0.000
13.	Net Profit for the period (11+12)	(849.000)
14.	Paid up Equity share capital (Face Value Rs. 10 each)	114.800
15.	Reserves excluding revaluation reserves	--
16.	Basic and Diluted Earning Per Share (EPS) (Rs.)-Not Annualised
	a) Basic and diluted EPS before extraordinary items	(73.98)
	b) Basic and diluted EPS after extraordinary items	(73.98)
17.	Public Shareholding
	-Number of Shares	7708299
	- Percentage of Shareholding	67.17
18.	Promoters and Promoter Group Shareholding
	a) Pledged/Encumbered
	- Number of Shares	300000
	- Percentage of Shares (as a % of the Total Shareholding of promoter and promoter group)	7.96
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	2.61
	b) Non Encumbered
	- Number of Shares	3468075
	- Percentage of Shares (as a % of the Total Shareholding of Promoter and Promoter Group)	92.04
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	30.22

Particulars	Quarter ended 31.12.2013
B INVESTOR COMPLAINTS (Nos.)
Pending at the beginning of the quarter	Nil
Received during the quarter	Nil
Disposed of during the quarter	Nil
Remaining unresolved at the end of the quarter	Nil

SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED

(Rs. In Millions)

Sr. No.	Particular	Quarter Ended
		31.12.2013
		Unaudited
1.	Segment Revenue
	Engineering and Projects Division	623.800
	Special Steel Division	2028.300
	Electric Vehicle Division	47.000
	TOTAL	2699.100
	Less: Inter Segment Revenue	3.400
	Net Sales/Income From Operations	2695.700
1.	Segment Results Profit I (Loss) Before Finance Cost and Tax
	Engineering and Projects Division	(49.900)
	Special Steel Division	(551.300)
	Electric Vehicle Division	(15.800)
	TOTAL	(616.900)
	Less:
	Finance cost	232.100
	Other Un-allocable Expenditure net off Un-allocable income
	TOTAL PROFIT BEFORE TAX	(849.000)
3.	CAPITAL EMPLOYED
	(Segment Assets-Segment Liabilities)
	Engineering and Projects Division	(84.700)
	Special Steel Division	(2639.500)
	Electric Vehicle Division	457.000
	TOTAL	(2267.200)

Note :

1. The above Unaudited Financial Results were reviewed by the Audit Committee. The Board of Directors at its meeting held on 11th February, 2014 has approved the above results. The Statutory Auditors of the Company have carried out a Limited Review of the aforesaid result.

2. The Last Financial year was ended on 30th September, 2013 comprising of 12 months and subsequently the financial year was changed from 1st October to 31st March. As such, the current financial year comprises of 6 months starting from 1st October, 2013 and ending on 31st March, 2014.

3. Various Banks / Creditors have initiated legal actions in the nature of winding up petitions, debt recovery proceedings, criminal complaints etc. against the company and its directors / officers for outstanding dues and the same are pending with various courts / authorities with some interim orders / directions. The Company is contesting against the said legal actions.

4. The Company has received a Letter of Approval from Corporate Debt Restructuring Cell informing the Company that the proposal for Corporate Debt Restructuring has been discussed and approved by CDR Empowered Group (EG) meeting held on November 14, 2013 with cutoff date i.e. March 31, 2013.

5. In the opinion of the Management, the current assets, Loans and advances are approximately of the values stated, if realised in the ordinary course of business. Some of the bank balances shown in the books are subject to confirmination and reconcilition. The amount of the inventories are as taken by the management and is subject to physical verification.

6. During the quarter ending on December 31, 2013, the Company has provided bank interest only on those banks, who have provided interest in their books of accounts. Although Bank Accounts of the Company has been categorised as NPA with all the Banks.

7. Figures for the previous periods have been regrouped and reclassified to conform to the classification of the current period, where necessary.

FIXED ASSETS

· Free Hold Land

· Leasehold Land

· Building

· Plant and Machinery

· Furniture and Fixtures

· Vehicles

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 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. 59.03
UK Pound	1	Rs. 98.91
Euro	1	Rs. 80.31

INFORMATION DETAILS

Information Gathered by :	HTL
Analysis Done by :	KAR
Report Prepared by :	SNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	--
--LIQUIDITY	1~10	2
--LEVERAGE	1~10	2
--RESERVES	1~10	1
--CREDIT LINES	1~10	--
--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	YES
--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.