In this paper the computer model of the cage induction machine taking into account magnetic non-linearity is presented. The model contains the mathematical model of the induction machine recorded as an S-function and the connecting blocs attaching the model from one side to the three-phase terminals of the supply system model and from the other to the system of mechanical model. Hence, Sim-Power-Systems and Sim-Mechanics libraries can be used. Such a methodology allows for various drives modelling where the induction machine operates as a motor or a generator and cooperates with power electronics system. Using wide range of SIMULINK possibilities the various control techniques can be applied. Using this methodology the own mathematical models of other electrical machines together with the SIMULINK library models can be used.