MIRA INFORM REPORT

 

 

Report Date :

11.07.2007

 

IDENTIFICATION DETAILS

 

Name :

ENCOP WIRES - UNIT OF HUBLI LEASING AND FINANCE COMPANY PRIVATE LIMITED

 

 

Registered Office :

85, Tarihal Industrial Estate, 2nd Phase, Tarihal, Hubli-580030, Karnataka

 

 

Country :

India

 

 

Financials (as on) :

31.03.2006

 

 

Date of Incorporation :

12.11.1984

 

 

Com. Reg. No.:

006487

 

 

CIN No.:

[Company Identification No.]

U65910KA1984PTC006487

 

 

Legal Form :

Sole Proprietory Concern

 

 

Line of Business :

Manufacturers of Copper Wire for application in Motor Winding Industry, Small Scale Industries Unit

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

--

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established concern having satisfactory track records. Trade relations are fair. Payments are usually correct and as per commitments.

 

The company can be considered normal for business dealings at usual trade terms and conditions.

 

 

LOCATIONS

 

Registered Office / Factory:

85, Tarihal Industrial Estate, 2nd Phase, Tarihal, Hubli-580030, Karnataka, India

Tel. No.:

91-836-2310327

Fax No.:

91-836-2360123

E-Mail :

encopwires@sancharnet.in

Web site:

http://www.encopwires.com

Area :

Plot : 2 acres, Built up: 90000 Sq.fts.

Location :

Owned

 

 

SOLE PROPRIETOR

 

Name :

Mr. Ashok Kubsad

Designation :

Proprietor

Mobile No.:

91-9343867740

Address:

93, Ashok Nagar, Hubli, Karnataka, India

Date of Birth/Age :

43 years

Qualification :

B.E. [Mech.]

Experience :

20 years

 

 

Name :

Smt. H.K. Sumangala

Designation :

Director

Address:

93, Ashok Nagar, Hubli, Karnataka, India

Date of Birth/Age :

58 years

Qualification :

S.S.L.C.

 

 

Name :

Smt. Shobba Kubsad

Designation :

Director

Address:

93, Ashok Nagar, Hubli, Karnataka, India

Date of Birth/Age :

35 years

Qualification :

B.A.

 

KEY EXECUTIVES

 

Name :

Mr. N S Murthy

Designation :

Production Manager

 

 

Name :

Mr. M N Kumar

Designation :

Production Manager

 

 

Name :

Mr. S S Gokhale

Designation :

Senior Executive Technical

 

 

Name :

Mr. S R Malghan

Designation :

Quality System Consultant Auditor (Rtd. Senior Manager Q A, K E C, Hubli)

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturers of Copper Wire for application in Motor Winding Industry, Small Scale Industries Unit

 

 

Products :

v      Polyester Enamelled Copper Wire (F Class) Thin and Medium covering

v      Polyester Enamelled Copper Wire (B Class) Thin and Medium Covering

v      Polyester Enamelled Copper Wire (F Class) Medium Covering

v      Hermatic Wires Dual Enamelled Copper

 

 

Agencies Held:

v      N.G.E.F. [H] Limited, Hubli

v      K.E.C. Limited, Hubli

v      Kaytee Switch Gear, Hubli

v      A.B.B. Limited, Bangalore

v      Crompton Greaves Limited, [Division Goa]

 

 

Terms :

 

Selling :

Credit (180 days)

 

 

Purchasing :

Cash

 

PRODUCTION STATUS

 

Particulars

 

Unit

Installed Capacity

Actual Production

Super Enamelled Copper Wire

 

Tons

70

45

 

 

 

 

 

60 % of the present capacity is utilized by regular OEM’s. Subject is added one more Roldraw horizontal machine finer Size capacity to 600 Kg to 800 Kg per day

 

 

 

 

 

 

GENERAL INFORMATION

 

Suppliers :

Ř       Sterlite Industries Limited, Blore

Ř       Dr. Beck, Pune

Ř       Sanmar, Hyderabad

 

 

Customers :

Ř       Kirloskar Electric Company Limited, Hubli

Ř       N.G.E.F.Limited, Hubli

Ř       Crompton Greaves – Goa

 

Major Pump Manufacturers:    

 

Ř       El Pem Industries

Ř       V-Guard

Ř       El-power Engineering

Ř       RMP – Hi Tech

Ř       Everest Products

Ř       Crowinic H Industries

Ř       Heera Motors

 

Other End Users:

Ř       Asha Electricals, Hubli

Ř       Bellad Electricals, Bangalore

Ř       Prestige Industries, Belgium

Ř       Crownch Electricals, Kolhapur

Ř       Eagle Electries, Jaisingpur

Ř       Sri Venkateshwar Electricals, Coimbatore

Ř       Marine Electricals, Goa

Ř       Kwality Electricals, Mysore

Ř       Kiran Enterprises, Bidar

 

 

No. of Employees :

24  (Office: 4 ; Factory : 20)

 

 

Bankers :

Ř       State Bank of India, Commercial Branch, Lamington Road, Hubli

Ř       State Bank of Mysore, Main Branch, Coin Road, Hubli

 

 

Facilities :

State Bank of India

Credit Limit : Rs.10.000 millions

B.G. Rs. 5.000 millions

 

State Bank of Mysore

Credit Limit: Rs. 3.000 millions

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

Mr. G. V. Desai

Chartered Accountants,

Address :

Hubli

 

 

Memberships :

Ř       Copper Association of India

Ř       Chamber of Commerce and Industries

 

 

CAPITAL STRUCTURE

 

 

Capital Investment :

 

Owned :

Rs.9.000 – 6.000 millions

Borrowed :

-

Total :

-

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

Particulars

 

31.03.2007

(Expected)

31.03.2006

31.03.2005

Sales Turnover

37.895

32.952

24.500

 

 

 

 

Profit for the year

0.556

0.043

0.048

 

 

 

 

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

Trade References:

 

v      K.E.C. Limited, Hubli [Contact Person- Mr. Sunil Patel]

v      N.G.E.F. Limited, Hubli [Contact Person – Mr. Tirlapur

v      A.B.B. Limited, Bangalore [Contact Person – Mr. C H Vijaykumar / Mr. Pradeep Hegade]

 

The company has received an ISO – 9001 -2000 Certificate

 

ISO No.: RQ91 / 2832

 

Organization

 

The company is promoted by group of professionals Hubli leasing and Finance Company private Limited headed by late Shri. H K Veerbhdrappa and Mr., Arvindkumar Kubsad leading Chartered Accountants by profession in Hubli.

 

They believe in and continuously practice the following:

 

v      Deliver defect free products to their customers on time and every time. 

v      Continuously improve out products / services to satisfy the needs of customers.

v      Develop team of employees committed to do quality work continuously and consistently.

 

Process

 

They have got vertical enameling plant supplied from Roldraw machinery Bombay and all supporting equipments for drawing.  They also have good support facilities for handling, packing and dust free storage etc.

 

Raw materials

 

They are using continuous cast rod as per IS 12444 part 88 supplied from reputed manufacturers like Hindustan Copper Limited and Sterlite Industries.  Insulating varnish supplied by world reputed manufacturers Dr. Beck and Company Pune only

 

Inspection and Testing:

 

They have in house testing equipments to conduct all required inspection at various stages of processing and final wire all the test are conducted as per IS 13730 part III and IS 13730 -34

 

All the test equipments are calibrated periodically with required traceability to meet the standard requirements.

 

Product Specifications:

 

Sr. No.

Specification

Sizes

IS Reference

Remarks

1

Polyester Enamelled Copper Wire (F Class) Thin and

Medium covering

0.213 MM to 1.626 MM 35  SWG TO 16 SWG

13730 PART III

Under Regular

Production

2

Polyester Enamelled Copper Wire (B Class) Thin and

 Medium Covering

0.213 MM to 1.626 MM 35  SWG TO 16 SWG

13730 – 34

Under Regular

Production

3

Polyester Enamelled Copper Wire (F Class) Medium

Covering

0.213 MM to 1.626 MM 35  SWG TO 16 SWG

13730 PART – 13

(DUAL COAT)

On Request

4

Hermatic Wires Dual Enamelled Copper

0.213 MM to 1.626 MM 35  SWG TO 16 SWG

13730 PART – 13

(DUAL COAT)

On Request

 

Sample Test Report

 

Plant and Machinery (including Testing Equipments)

 

Installed at our Factory at 85, Tarihal Industrial Area, Hubli

 

v      Vertical Enamel Machine

v      Enamelled Horizontal Machine – RDF- 11

v      Fine Wire Drawing Machinery RDF – 21

v      Bull Block Machine – BBD

v      Wire Pointing Machine – 2 Nos.

v      Micro Butt Welding Machine – 2 Nos.

v      Testing Equipments

 

 

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. 40.41

UK Pound

1

Rs. 81.37

Euro

1

Rs. 54.98

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

6

--RESERVES

1~10

6

--CREDIT LINES

1~10

6

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

54

 

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

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.

 

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

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

 

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