MIRA INFORM REPORT

Report Date :

05.07.2008

IDENTIFICATION DETAILS

Name :	DUPLEX WIRES PRIVATE LIMITED
Registered Office :	Plot No – 74, Lane No – 3, Natraj Co Op Hsg., Karve Nagar, Pune – 411052, Maharashtra
Country :	India
Financials (as on) :	31.03.2008
Date of Incorporation :	26.09.1990
Com. Reg. No.:	11-58307
CIN No.: [Company Identification No.]	U31300MH1990PTC058307
IEC No.:	3195002116
TAN No.: [Tax Deduction & Collection Account No.]	PNED00954C / PNED01623G
PAN No.: [Permanent Account No.]	AAACD6322M
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Wires for Electronics Parts, etc.

RATING & COMMENTS

MIRA’s Rating :

A

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

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having fine track. Directors are reported as experienced, respectable and having satisfactory means of their own. Trade relations are fair. Business is active. General financial position is satisfactory. Payments are repotted as usually correct and as per commitments. The company can be considered good for normal business dealings.

INFORMATION PARTED BY

Name :	Mr. Anil Satpute
Designation :	Director
Contact No.:	91-9823159515
Date :	04.07.2008

LOCATIONS

Registered Office :	Plot No – 74, Lane No – 3, Natraj Co Op Hsg., Karve Nagar, Pune – 411052, Maharashtra, India
Tel. No.:	91-20-24393244 / 25440156
Mobile No.:	91-9823159575
Fax No.:	91-20-243913571 / 25382561
E-Mail :	nvgopal@vsnl.com duplexwires@vsnl.net
Area :	1800 sq. ft. [Owned]
Head Office :	D-17, Flat 3 & 4, Giridharnagar, Warje – Malwadi, Pune – 411053, Maharashtra, India
Tel. No.:	91-20-25201336
Fax No.:	91-20-25231263
E-Mail :	almighty@vsnl.com
Website :	http://www.componentsbazaar/duplex/
Administrative Office :	Flat No. 2, Prachi Residency, Bhelkenagar, Kothrud, Pune – 411029
Area :	1000 sq. ft. [Owned]
Factory :	Plot No. A-3, MIDC, Kurkumbh, Daund, Pune – 413105, Maharashtra, India
Tel. No.:	91-2117-235271 / 235471 / 91-20-24393244 / 91-20-24391357
Fax No.:	91-2117-235471
E-Mail :	duplexwires@vsnl.net
Area :	2000 sq. mt. [Leased]
Branches :	Village Ambota Dhaggar Kasuali Road, Near Sector 4 District Solan Himachal Pradesh 173220
Tel. No.:	91-1729-235485
Fax No.:	91-1792-235485
Area :	2300 sq. ft. [Rented]

DIRECTORS

Name :	Mr. Anand Vishnu Satpute
Designation :	Chairman cum Director
Address :	Plot No – 74, Lane No – 3, Natraj Co Op Hsg., Karve Nagar, Pune – 411052, Maharashtra, India
PAN No.:	AFHPS4749G
Date of Birth/Age :	03.12.1936
Qualification :	Bsc, D.E. Chemistry
Experience :	40 Years
Date of Appointment :	26.09.1990
Name :	Mr. Anil Anand Satpute
Designation :	Managing Director
Address :	Plot No – 74, Lane No – 3, Natraj Co Op Hsg., Karve Nagar, Pune – 411052, Maharashtra, India
PAN No.:	ACEPS8365E
Date of Birth/Age :	08.02.1971
Qualification :	B.E. [Mech] MBA-Marketing
Experience :	20 Years
Date of Appointment :	01.01.1992

DIRECTORS

Name :	Mr. Gulhosar Ishwar
Designation :	Factory Manager
Qualification :	B. E. [Met]
Experience :	20 Years

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

[AS ON 31.03.2008]

Names of Shareholders	No. of Shares
Anand Vishnu Satpute	245400
Usha Anand Satpute	167000
Anil Anand Satpute	1661200
Abhijit A. Kulkarni	11500
Kanchan Anil Satpute	250000
Total	2335100

EQUITY SHARE BREAKUP [AS ON 29.09.2007]

Category	Percentage
Directors or relatives of directors	100.00

DATE OF ALLOTMENT [AS ON 26.12.2007]

List of Allottee	No. of Shares
Anand Vishnu Satpute	100000
Usha Anand Satpute	150000
Anil Anand Satpute	850000
Kanchan Anil Satpute	250000
Total	1350000

BUSINESS DETAILS

Line of Business :	Manufacturer of Wires for Electronics Parts, etc.
Products :	Bare Copper Wire Tinned Copper Wire Enameled Copper Wire
Exports :
Products :	Wires
Countries :	Malaysia, Mid-East, Singapore, UK and Europe
Imports :
Products :	Copper Rode
Countries :	Malaysia and Russia
Terms :
Selling :	L/C, Credit – 90 days
Purchasing :	DA, Credit – 30 days [Limit Rs. 3.000 Millions US$]

PRODUCTION STATUS

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Bare Copper Wire / Tinned Copper / Enameled copper Wire	M.T. P.A.	6000	6000	2840

GENERAL INFORMATION

Customers :

Wholesalers and Retailers

• Associate Flexiweld Private Limited
• Anurena Tristar Noida
• Alphatron Ele. Private Limited
• Captain Industries
• CTR Manufacturing Company Limited
• Epcos India Private Limited
• G. K. Wire Industries
• Friends Enterprises
• Himachal Winding Works
• Khaitan Ele. Private Limited
• KNG Wires and Cables
• Manmohan Metal Corporation
• Nainko Exim Limited
• National India Refinery
• Pushman Ele. Private Limited
• P & D Conductors
• Sanyo BPL Limited
• Spankar Metal
• Vagrecha Enterprises
• WCC Resources International

No. of Employees :

36 [In Office : 4, In Branch : 2 and In Factory : 30]

Bankers :

• Janata Sahakari Bank Limited, Bajirao Road Branch, Pune – 411002, Maharashtra, India

Credit Limit [Rs. 90.000 Millions]

• The Shree Suvana Sahakari Bank Limited, 272, Shariwar Peth, Pune – 411030, Maharashtra, India

• Axis Bank

• Saraswat Bank, Ganesh Nagar, Pune – 411052

• HDFC Bank

• ICICI Bank

• Kotak Mahindra Bank

Facilities :

Janata Sahakari Bank Limited, Bajirao Road Branch, Pune – 411002, Maharashtra, India

Nature of Credit Facility	Sanctioned Loan Amount	Outstanding Balance	EMI
Cash Credit, Term Loan	Rs. 70.000 Millions Rs. 20.000 Millions	Rs. 83.200 Millions Rs. 16.700 Millions	691000.00

Secured Loan [31.03.2008]

Rs in millions

Particulars
Janta Sahakari Bank Limited [Term Loan] [Secured by Hypothecation of Plant and machinery and Mortgage of Land and Building]	19.257
Janta Sahakari Bank Limited Cash Credit 7574 [Secured by Hypothecation of Stock, Debtors and machinery mortgage of factory at Kurkumbh : Mortgage of personal real estate assets of Directors ad further secured by personal guarantee of Directors]	70.674
Total	89.931

Unsecured Loan [31.03.2008]

Rs in millions

Particulars	Amount	Amount
Clean Loans from banks
India Bulls Credit Services Limited	2.281
HDFC Bank Loan	1.902
ICICI Bank Loan	1.921
Kotak Mahindra laon	1.920	8.024
Sales Tax Deferement
Sales Tax Deferement	5.740	5.740
Chit Loan of Sheeba Finance
Sheeba Finance and Kuries	45.536	45.536
Outstanding long term Loans from friends, relative etc.
A. N. Satyanarayan	0.096
A. A. Satpute	0.910
Dongare Uma G.	3.850
Dongre Uma G.	1.150
Heera Satyanarayna	0.124
Induja Traders Private Limited	6.500
Mrs. Usha Satpute and Mr. A. V. Satpute	0.055
Mrs. Ashwini Kulkarni	0.494
Mrs. Usha Satpute	0.007
Satish R. Gulhosur	3.159
Kanchan Satpute	[0.165]	16.180
Total		134. 480

Banking Relations :	Satisfactory
Auditors :
Name :	Kishor B. Phadke and Company Chartered Accountants Flat No. 402, ‘’Surad’ Apartments, Opp. Karnataka High School [Old], Off Dr. Ketkar Road, Erandwane, Pune – 411004, Maharashtra, India Tel No. : 91-20-25421860 / 25421862 Mobile No. : 91-9822010116 Res. No. : 91-20-25438109 E-Mail : phadke@eth.net / k_phadke@vsnl.net Mr. M. R. Gupta Chartered Accountants Padmawati Corner, Pune – 411052 Tel No. 91-20-24372970 Shashank Patki and Associates Chartered Accountants Pune Office : 2, Anil Apartments, Baner Residency, Baner Road, Behind Supreme Icon, Aundh, Pune – 411007 Telefax No.: 91-20-25660489 Mumbai Office : F-306, Govind Dham, Kalwa, Thane [West] 400605
Associates/Subsidiaries :	GALVANO TECHNIQUES Address : S. No. 10/1/b, Kaluram Ghule Farm, Nanded, Pune – 411041 Activities : Electroplating Bankers : Saraswat Bank

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs. 10/- each	Rs. 30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2335100	Equity Shares	Rs. 10/- each	Rs. 23.351 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2008	31.03.2007	31.03.2006
SHAREHOLDERS FUNDS
1] Share Capital		23.351	2.851	2.851
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		37.832	2.857	0.000
4] (Accumulated Losses)		0.000	0.000	[17.933]
NETWORTH		61.183	5.708	[15.082]
LOAN FUNDS
1] Secured Loans		89.931	50.000	44.693
2] Unsecured Loans		75.480	24.200	16.337
TOTAL BORROWING		165.411	74.200	61.030
DEFERRED TAX LIABILITIES		0.485	0.000	0.000
TOTAL		227.079	79.908	45.948
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		26.774	20.022	7.548
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.705	0.200	0.200
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	133.689	29.765	25.075
	Sundry Debtors	151.351	96.285	24.500
	Cash & Bank Balances	2.306	1.136	2.059
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	57.460	32.302	7.762
Total Current Assets		344.806	159.488	59.396
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	137.706	99.802	21.196
	Provisions	7.500	0.000	0.000
Total Current Liabilities		145.206	99.802	21.196
Net Current Assets		199.600	59.686	38.200
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		227.079	79.908	45.948

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
Sales Turnover		1020.773	586.111	166.997
Other Income		1.658	(0.092)	2.492
Total Income		1022.431	586.019	169.489
Profit/(Loss) Before Tax		42.958	24.791	10.798
Provision for Taxation		7.500	4.000	0.000
Profit/(Loss) After Tax		35.458	20.791	10.798
Export Value		326.357	81.537	NA
Imports Value		708.519	509.302	140.765
Expenditures :
	Raw Material Consumed	924.247	515.973	139.842
	Manufacturing Expenses	10.973	6.299	5.072
	Payment to Employees	4.018	2.301	1.679
	Administrative and General Expenses	20.171	8.313	4.207
	Selling and Distribution Expenses	5.264	5.987	1.213
	Financial Charges	11.079	21.585	5.250
	Depreciation & Amortization	3.261	1.302	1.414
	Increase / [Decrease] in Stock	0.459	(0.535)	0.015
Total Expenditure		979.472	561.225	158.692

KEY RATIOS

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
PAT / Total Income	(%)	4.20	3.55	6.37
Net Profit Margin (PBT/Sales)	(%)	4.21	4.23	6.47
Return on Total Assets (PBT/Total Assets}	(%)	11.56	13.81	16.13
Return on Investment (ROI) (PBT/Networth)		0.70	4.34	(71.60)
Debt Equity Ratio (Total Liability/Networth)		5.08	30.48	(5.45)
Current Ratio (Current Asset/Current Liability)		2.37	1.60	2.80

LOCAL AGENCY FURTHER INFORMATION

Trade Reference

• Akshay Insulator Conductors – Pune – Aditya Joshi – 91-20-24384244
• APS Enterprises, Pune – Mr. Juneja 9975596491
• Desai Ele. Private Limited – Mr. Sha – 91-20-25655445
• Amiras Technology
• H. G. Mehta and Company – Mr. Pankaj – 91-22-22614641
• National India Refinery

For Manufacturing Entities / Factory Site [s]

Location of Plot, accessibility, proximity to other units	Pune & Himachal Pradesh
Principal raw material [s] and sources	ETP Copper wire Rod – Import
Major branded and imported machines, installed	Rod Brake Down Machine
Pollution Control : Any pollutants being generated and heir disposal	By MIDC treatment plant
Power : Connected load and back up availability	Electricity 250 KVA
Inventory / WIP / Finished Good at the Site	Rs. 100.000 Millions
Storage / Security / Perishability / Susceptibility to fire and whether	Insurance cover enclosed
Workers / Split of temporary and permanent / any unions	Worker 45, No Union
History of any strikes / any child labour / working conditions	N.A.

HIGHLIGHTS OF THE PROPOSAL FEATURES

Strengths

Existing profit making unit aging over 15 years surviving bad times with management skills of promoters.

Technically qualified promoter owning a closely held ISO 9001-2000 company with well evolved succession plant and business policies. Total Net Worth of both the directors [Guarantors] together stands at 17.118 Millions as on 31.03.207

Organization manned with a blend of qualified and experienced employee. Team consists of only 50 loyal employees with extraordinary productivity resulting out of best H. R. practices of management. Promoters are taking steps for professionalizing the organization in view of growing international business.

Company’s activity is Manufacturing of copper wire products, which finds widespread application in industries like power and electrical, electronics, telecommunication etc all of which are progressive and growing ones and bankers outlook is positive on these industries.

Simple technology developed in-house and capacity expansion implemented with originally Chinese plant with high speed Rod Brake Down to suit in house technology with a very cost effective approach reducing fixed investment cost.

Himachal Pradesh Unit- II set up recently brought in substantial tax benefits direct and indirect both fronts for 10 year holiday as per Central Government Policy. This has enabled the company to sustain pressure on margins while scoring over competitors / large players.

With the past 3 years historical record of multifold rise in annual turnover from Rs. 170 Millions in 2005-2006 to Rs. 1020 Millions in 2007-2008, the unit is poised to reach 2000 millions mark in currant fiscal necessitating over fourfold rise in working capital funds.

Strategic Business alliance with a Singapore based group of trading firms dealings as acting customer and supplier resulting in mutually profitable relationship.

Growing share of export sales every year now estimated to cross 50 % level, invites support by way of foreign exchange based WC limits which being less costly, will help the company to meet international prices to stay in the global market and enhance profitability as well. The promoter’s policy of ploughing back of 100 % ensure increasing level of long term own funds every year.

Last but not the least, Acid test of Integrity passed by the company by standing firm and repaying entire dues, without any concession or waivers to the initial supportive banker Suvarna Sahakari Bank Limited, Pune when the later was declared to be liquidated by RBI of course this was achieved with timely support by existing sole bankers i.e. JSBL and hence they deserve retention as a consortium member bank in company’s opinion. The company has also reciprocated by maintaining financial discipline.

Weaknesses

Being SME unit unplanned business opportunities kept flowing in the capturing the opportunity with limited resources has poured in side – effect of high leverage / high capital gearing.

The promoters, due to essentially and deliberately followed policy of 100 % retention of profits in business couldn’t focus on building up asset base for strengthening collaterals for lenders comfort.

Extraordinary growth in turnover forced adhocism in respect borrowing as reflected through borrowing pattern. This has adversely affected debt-equity composition from working capital lender’s point of view. Moreover the phenomenal growth in turnover was achieved with a greater reliance on creditors on other hand.

Strategic alliance with WCC Resources group companies of Singapore as a customers with one group firm and as a supplier with another firm of the same group is resulting into elongated credit terms on both sides – creditor for raw material as well as Export Receivables. The excise duty structure has further added to the irony of blockage of working funds. For Exports Company doesn’t claim MODVAT and so the difference of 4 % between excise on imported material inputs and excise on output gets blocked for 3 months. This is sizeable amount but unfortunately out of drawing power purview of WC lenders though Central govt is the first class and highly reliable debtor of the company in respect of the excise balance due from the government Consequently this part of current assent is funded by long term NWC infused thorough the source of the long term finance by Sheeba Finance which is a chit finance of Rs. 50 Millions repayable over 5 years upto 2012. Hence it deserves treatment of Quasi – Equity in the opinion since the company is replacing annual repayment outgo to Sheeba through the profits generated and company can give undertaking a resolve to subordinate Sheeba’s debt – servicing to bank’s debt – servicing.

The present products are of High Turnover – Low Margin nature due to lower value addition. Hence low profitability below 50%. To overcome this weakness, company plans to go for adding Low – Turnover, High Margin products like cables and enameled wire from 2010 onwards. The material prices are also sensitive to Global Markets.

The limited resources restricted capacity utilization below 50 % till last year. Working capital lender has a risk of high – rise exposure but the proposed high rise in W.C. limits is not for financing the inflationary elements in sales but for the optimum capacity utilization by increasing production / sales valume. This fact is reflected in the CMA data wherein process are very conservatively assumed and this is safely comport for lender to enhance WC limits.

While the weakness of internal control systems is already addressed by appointing Internal Auditors during 2007-08 itself, the company has decided to appoint a qualified and experienced finance and accounts export on regular payroll.

The weakness as to drawing power expressed by CEO Mr. Joshi during the meeting is well – addressed by submitting Auditor - certified Drawing Power Summary Statement and stock / debtors / creditors statements. It establishes that as on 31.05.2008 the company has drawing power of Rs. 183.082 Millions against which outstanding balance under CC A/C of JSBPL is Rs. 86.321 Millions. Thus even today the drawing capacity / power Rs. 96.700 Millions is available. Secondly the current ratio of 1.52 as on 31.03.2008 depicts adequate NWC level. Moreover promoter have infused in June 2008 Rs. 4.300 Millions additional capital towards projected Rs. 11.100 Millions in CMA data during 2008-09.

After discussing the above stated strengths and weakness the lastly present the views on the credit rating parameters which generally banker consider while appraising any proposal.

On financial Parameters front they shall be scoring not less then 65 % marks since the current ratio is very sound and profitability and debtors velocity is quite moderate. As regards debt – equity ratio the TOL / TNW ratio stands at 2.40 : 1 with Quasi – Equity effect to all eligible outstanding loans including that of Sheeba chits which deserves the treatment on the basis of deliberations made under point no. 4 above.

They are confident of scoring 100 % marks on Operational and Quality Aspects parameters like conduct on accounts, debt servicing, overdrawing, quality and nature of product etc.

Under Risk Parameters they deserve full score on market / product / buyer risks since theirs is a well – evolved market, products is non – perishable and readily marketable and buyers are multiple spreading the risks. Similarly full score is expected for succession plan, well – organized business model etc.

The only weakness under Credit Rating Exercise would be on collateral security coverage for proposed exposure. Here the opinion is that when all parameters are weighed on historical basis i.e. March 2008 levels and numbers he same principle should be followed for calculating % of collateral security coverage. If not the case may be weak on collaterals as of now, if value Rs. 41 Millions is lined to proposed initial exposure of Rs. 180 Millions working out to 23 % only.

Subject offer the following package of additional collateral securities to be made available before 31.08.2008 latest.

Stand by letter of credit [SBLC] from the bankers of the foreign customer WCC Resource International group company to the extent of Rs. 50 Millions covering little over a month’s exports.

ECGC policy – Single Buyer Policy – to hedge the export risk to major foreign buyers. They expect ECGC to approve policy upto Rs. 20.000 Millions initially. Moreover bank’s PC Limit can be covered under WTPCG limit which bank will get approved from ECGC at corporate level.

Key man’s insurance policy upto Rs. 10 Millions to be drawn afresh on the life of key person Mr. Anil Satpute.

A new unit – linked policy proposed to be drawn with an annual premium of Rs. 0.500 Million by Mr. Anil Satpute.

Against this background they apply for the WC limits of Rs. 250 Millions in two phases as under :

Out of the 80 % share of Rs. 200 Millions – Rs. 130 Millions as Rupee cash credit in limit in July 2008 beginning.

The remaining Rs. 100 Millions by way of Forex Limits i.e. PC / FBP which may be split up as Rs. 30 Millions Packing credit and Rs. 70 Millions FBP which will be tune in with the presale and past sale current asset levels. This limit will be sought to be released in October 2008 on the satisfying the following terms :

Putting package of proposed additional collateral securities in place.

Submitting ½ yearly results as on 30.09.2008 duly certified by auditors on the basis of short review audit.

Lastly, they expect fair pricing of loans by way of approving ROI @ 13.50 % on Rupee CC limit and @ 10 % on Forex Limits. This expectation is based on the fact that other banks have indicated to the ROI @ 12.50 % p.a. as highest rate which they will charge to them and existing banker also agreeable for rate reduction. Moreover the Factoring agencies have offered them same rate of 12.50 % p.a. Therefore they are fair and reasonable in expecting the aforesaid rates, with due respect the fact expecting sub PLR rates from you at this juncture is not justified and they have to pay premium for collateral weakness at initial stage.

Mr. Anand Vishnu Satpute : Promoter Duplex Wires Private Limited

As a Visionaire of Duplex Wires Private Limited Mr. Anand Satpute, [Chairman] comes from a very much Services Oriented family. After completing Education as B. Sc Chemistry he stared his career as an laboratory assistant in Koyana Dam Project in the year 1960.

In 1963 he got an opportunity to work as an Laboratory Chemist in a Company Peico Electronic and Electrical Limited, later called Philips India Limited. Being educated in a Marathi Medium School has to face hardship in raising the standards upto the Company’s expectation in English speaking. The first target to be achieved was set for himself and he could deliver the same within 6 moths looking at which he got an opportunity to go to Holland in the year 1971. Mr. Satpute there learned the Techniques of Specialised electroplating Process on various ferrous as well as non ferrous substrates which he successfully implemented in Philips India Limited. He is Pioneer in the field of REEL TO REEL Electroplating Technology for Wires and Strops in India.

With this achievement is completed his tenure in Philips India Limited of 25 Years in year 1987. During 1986 the entrepreneur in Mr. Anand Satpute got triggered and decided to start a small space in Vithalwade Pune from year 1986 till 1993, in which later Mr. Anand Satpute was a Partner. When the ventured in the Business activity it was well supported with Orders from field fo Electronics and Electrical once again Philips India Limited one of the major buyers. Growth in the company promoted Mr. Anand Satpute to make it bigger in year 1993 wherein the stone for Duplex Wires Private Limited was led.

Subject was established in year 1993, wherein a space of 1 Acres land in an Industrial Belt in kurkumbh MIDC was selected. The company completed the Building and Plant Machinery Installations in the year 1996. the First year T/O of the organization was 160 Million. Since 1993 Company had its relationship with Co-operative bank the Shree Suvarna Sahakari Bank Limited

The Change in Import Duty structure in the year 1998, lowering of Import Duty on Finished Product gave a the setback to the company on the sales as well as margins hence facing difficult times for a couple of years. This was taken by the management as a challenge and under the guidance of Mr. Anand Satpute company explored the possibilities of other Products and markets. Mr. Anil Satpute, son of Mr. Anand Satpute took a lead in exploring International Markets, by visiting International Exhibition and events. Company was well supported by the Bankers during this phase of the business which today has led the company to grow to T/o of 1000 Millions.

Vision of Mr. Anand Satpute, Forward integrate to make Value Added Products like Lead Wires, Enamell Wires and Cables and Strops for Transformer Industry, backward Integration to make own Cathodes of Electrolytic Grade and then make their own CC Rod of Electrolytic Grade in the next 5 years.

Mr. Anil Anand Satpute : Managing Director

After completing bachelors in Engineering [Mechanical] from Vishwakarma Institute of Technology in year 1992, decided to work in an organized sector of Processing Industry Technology in year 1992, decided to work in an organized sector of Processing Industry for one year. During the tenure got hands on experience in various departments of industry especially processing industry.

Completed MBA in Marketing while working in Hi rel Components. With the Post Graduation started taking active participation in the Development of Duplex Wires Private Limited from year 1994. In the year 1994 underwent a Training program on developing inhouse Plating Lines in Singapore for 3 Months. With this experience and exposure built up a State of Art Reel to Reel Electroplating Machine in Kurkumbh in the year 1996. concentration was more on the local market growth the development of New Market segment.

After the reduction in t he Import Duty on Finished products in year 1998, Duplex Team decided to Backward Integrate thus adding Drawing Machine t draw 8mm rod in wires giving a new product Bare Copper Wire in the International market with marginal Value addition.

In year 2001, Singapore Exhibition for Wire and Cable as Strategic Alliance for Marketing and Sourcing was done with a Malaysian Company Synergic industrial Marketing Services [SIMS]. SIMS started supplying ETP Grade Copper 8mm Rod to Duplex Wires Private Limited at competitive rates as compared to Indian Suppliers. Even today the premium rates of basic Raw Material 8mm Rod from SIMS are competitive than local rates of Copper Rod in Indian from Indian Source. Hence 95 % Copper Rod is Imported.

Exports Started for Bare Copper Wire and Tinned Copper wire from the year 2002 and then Duplex never looked back on the sales growth. The Consistency in supply quality and Delivery schedule adherence made Duplex Achieve good growth in overall export market in Far East, Middle East and Europe.

Year 2005 Duplex Wires Private Limited achieved the ISO 9001-2000 Quality Certification from TUV Auditing Agency. This was a landmark achievement for Duplex term and was well received with increased orders from International as well as National Market in the year 2005-06.

Requirement for a specific product and a specific packing as per international standards for Bare Copper Wire was felt and realized by the Technical and Marketing team of Duplex and therefore an investment in High Speed Rod Break Down [RBD] Machine was decided. The RBD was sourced from China and was Purchased in the year 2007-08. Duplex Wires had already achieved a sales T/O of 100 Millions in Export Market in year fruitful set towards the growth in Sales as well as Exports.

Duplex has been very strong in the market segment in the western region due the mere presence as well as comfortable tax structure. Need was felt in the year 2005 to have some investment either by way of Agency or Depot to cater to the Customers in North region as well as regions where the customer is enjoying a Tax Benefits. With proper survey Duplex survey Deplex Wires Private Limited Unit II was setup in Himachal Pradesh, Dist Solan wherein the Government had announced a Tax Benefit Scheme for 10 years and a Sales Tax of only 1 %. This gave a competitive edge for Duplex for its growth in the region due to the Tax Structure.

Since the very beginning Mr. Anil Satpute has been very active in Development of New Markets, New Projects, project Finances as well as Financial Needs of the Organisation growth.

Goal is to make a Listing for the company in the International Market, with Forward as well as Backward Integration in the entire product range for Copper Industry.

RATIO ANALYSIS

Particulars	Ratio
Current Ratio	1.52 : 1
TL / TNW without QE effect [WQE]	1.32 :1
TL / TNW with QE effect [QEE]	0.27 : 1
TOL / TNW without QE effect [WQE]	4.88 : 1
TOL / TNW with QE effect [QEE]	2.15 : 1
TOL [WQE] 298.783 Millions	TOL [QEE]
TNW [WQE] 61.183 Millions	TNW [QEE]
QE effect on the basis of unsecured nature, long tenure, elimination of national discount Sheeba chit and Restraint letters plus debt – servicing subordination undertaking to be furnished by company.
TOL / TNW if Sheeba’s Liability is not considered as QE TOL Rs. 282.604 Millions TNW Rs. 82.909 Millions	3.40 : 1

ANALYTICAL RECLASSIFICATION OF ASSETS AND LIABILITIES AS ON 31.03.2008

Rs in Millions

	Particular	Amount	Amount
	TNW
	Share Capital		23.351
	Reserves		37.832
	Pure TNW		61.183
	TNW with QE effect :
	Pure TNW		61.183
Add :	Unsecured Loans of Directors		5.548
Add :	Other unsecured loans of QE nature		49.395
	TNW with QE effect		116.126
	Long term Liabilities
	JSBP T/L		19.257
	Sales tax Liability beyond 1 Year		4.305
	Other bank loans		8.025
	Pure TTL		31.587
	TL of QE nature
	Sheeba Chit’s Gross Liability	45.537
Less :	National discount booked as per Accounting Standard	12.320
	Net Liability to Sheba Chit’s		33.217
	Outstanding loans of other friends, relatives and other		16.179
	Total		49.396
	Current Liabilities
	JSBP cash credit		70.674
	Sales Tax C. Y. Liabilities		1.435
	Deferred Tax Liabilities		0.485
	OCL [S.crs. / IT / etc]		145.206
	TCL		217.800
	Total Liabilities		372.286
	Fixed Assets
	Gross Block		42.499
Less :	Depreciation		15.725
	Net Block		26.774
	Non – current assets
	Investments		0.705
	Other deposits		1.297
	Discount on Sheeba Chit		12.319
	Total NCA		14.321
	Current Assets
	Inventory		133.689
	Debtors		151.351
	Cash and Bank		2.307
	Other Current Assets		43.844
	[Excise, Adv. To Suppliers, Provisions etc]
	Total CA		331.191
	Total Assets		372.286

POSITION OF OTHER BANK BORROWINGS AS ON 31.05.2008

Rs in Millions

Name of Lenders	Purposes	Date of Sanction	Limit Sanctioned	O/s Balance [31.05.2008]
ABN Ambro Bank Loan	Corporate Loan	31.03.2008	2.500	2.285
HDFC Bank Loan	Corporate Loan	21.01.2008	2.000	1.758
ICICI Bank Loan	Corporate Loan	05.01.2008	2.000	1.835
India Bulls Financial Services Limited	Corporate Loan	03.02.2008	2.380	2.111
Kotak Mahindra Loan	Corporate Loan	30.12.2007	2.000	1.645
Barclays	Corporate Loan	06.09.2007	1.200	0.626
Citibank	Corporate Loan	01.11.2007	0.600	0.270
Reliance Capital	Corporate Loan	15.10.2007	3.000	2.790
India Bulls Financial Services Limited	Corporate Loan	03.01.2007	0.900	0.801
Cholamandalam	Corporate Loan	05.01.2008	1.275	1.165
Standard Chartered	Corporate Loan	18.12.2007	3.000	2.285
Sheeba Finance and Kuries Limited	Corporate Loan	01.04.2006	50.000	43.301
Total			70.855	60.872

OPERATING STATEMENT

[Rs in Millions]

Particulars	Projected
	2008-09	2009-10
Gross Sales
Domestic Sales	1183.600	1301.960
Export Sales	1000.000	1400.000
Total	2183.600	2701.960
Less : Excise Duty / Sales Tax	183.600	201.960
Net Sales	2000.000	2500.000
% rise [+] or fall [-] in net sales as compared to previous year	0.096	0.025
COST OF SALES
i] Raw Materials [Including stores and other items used in the process of manufacture]
[a] Imported	1200.000	1500.000
[b] Indigenous	600.000	7500.000
ii] Job work and other manufacturing expenses
iii] Other Spares
[a] Imported
[b] Indigenous
iv] Power and Fuel	1.566	1.723
v] Direct labour	8.574	9.431
[Factory Wages and Salaries]	4.125	4.538
vi] Depreciation	2.398	4.077
vii] SUB TOTAL [i to iv]	1816.663	2269.769
viii] Add : Opening Stocks – in – process	0.407	0.727
Sub Total	1817.070	2270.496
ix] Deduct : Closing Stock – in – Process	0.727	0.908
x] Cost of production	1816.343	2269.588
% to net sales	9.082	9.078
% to net sales [without depreciation]	9.070	9.062
xi] Add : Opening Stock of finished goods	0.283	0.545
Sub – total	1816.626	2270.133
xii] Deduct: Closing Stock – in - finished goods	0.545	0.681
xiii] Total Cost of Sales	1816.081	2269.452
% to Net Sales	9.080	9.078
Selling general and administrative expenses	33.066	36.676
Depreciation on other assets	1.260	1.647
Salaries	5.224	5.746
Sub Total	1855.631	2313.218
Operation profit before interest	144.369	186.782
Interest	3.081	2.054
Interest on Cash credit	32.500	32.500
Operating profit after interest	108.788	152.228
Other income / expenses	1.824	2.006
Profit before tax / Loss	110.612	154.234
Provision for taxes	22.339	31.149
Deferred Tax Liability	--	--
Net profit	88.273	123.085
[a] Equity Dividend Paid	--	--
Retained profit	88.273	123.085
Retained profit / Net profit [%]	100 %	100 %
Cash Accruals	91.931	128.809

ANALYSIS OF BALANCE SHEET

[Rs in Millions]

Particulars	Projected
	2008-09	2009-10
CURRENT LIABILITIES
01 Short – Term borrowings from banks	250.000	250.000
Sub Total [A]	250.000	250.000
02 Short Term Borrowings from others
03 Sundry creditors [Trade]	49.315	61.644
04 Advance payments from customers  / Deposits from dealers
05 Provision for tax [net of Tax paid]
06 Dividend and Dividend Tax payable
07 other statutory liabilities [due within one year]
08 Deposits / Installments of term loans / DPGs / debentures, etc [due within one year]
09 Other current liabilities and provisions [due within one year]	12.263	13.489
Sub – Total [B]	61.578	75.133
Total Current Liabilities [Total of 1 to 9]	311.578	325.133
10 TERM LIABILITIES
11 Debentures [not maturing within one year]
12 Preference Shares [Redeemable after 1 year]
13 Term loans [excluding installments  payable within one year]	12.838	0.000
14 Deferred Sales Tax / Deferred Loan Deferred Payment Credit [Excluding installments due within one year]
15 Term deposit [repayable after one year]
16 other Term Liabilities	50.321	25.161
17 TOTAL TERM LIABILITIES [Total of 11 to 16]	63.159	25.161
18 TOTAL OUTSIDE LIABILITIES [10 + 17]	374.737	350.294
Non Current Liabilities [Deferred tax Liability]	0.485	0.485
NET WORTH
19 Ordinary Share Capital	23.351	23.351
A] Interest – Free Loan term Loan under inventive scheme of Government of Maharashtra
20 Capital Reserve
21 General Reserve
22 Revaluation Reserve
23 Other Reserves [Excluding provisions]
24 Debenture
25 Surplus [+] or deficit [-] in Profit and Loss Account	126.105	249.190
26 Net worth [Total 19 to 25]	149.456	272.541
27 TOTAL LIABILITIES [18 + 26]	524.678	623.320
CURRENT ASSETS
28 Cash and Bank Balance	5.248	0.380
29 Investments [Other than long term investments] Government and other Trustee securities
I] Government and other trustee securities
II] Fixed deposit with bank
30 I] Receivables other than deferred and exports [Including bills purchased and discounted by banks]	197.267	216.993
II] Export receivables [Including bills purchased / discounted by banks]	41.667	58.333
III] Excise duty receivable	41.310	57.834
31 Instalments of Deferred  receivables [due within one year]
32 Inventory
I] Raw materials [Including stores and other items used in the process of manufacture]
Imported	100.000	125.000
Indigenous	50.000	62.500
II] Stock – in – process	0.727	0.908
II] Finished Goods	0.545	0.681
IV] Other consumable spares
Imported
Indigenous
33 Advances recordable in Cash or kind
34 Advance payment of taxes [NET]
35 Other current assets	57.500	58.000
36 TOTAL CURRENT ASSETS [Total of 26 to 33]	494.263	580.629
FIXED ASSETS
37 Gross Block	43.799	43.799
39 Depreciation to date	19.384	25.108
40 NET BLOCK [35-36]
OTHER NON – CURRENT ASSETS
41 Investments / book / debts / advances / deposits which are not Current Assts
I] [a] Others Investments in Subsidiary
[b] Others companies / affiliates
II] Advances to suppliers of capital goods and contractors
III} Deferred receivables [maturity exceeding one year]
IV] Others	6.000	24.000
42 Non consumables Stores and Spares
43 Total Other non – current assets [total of 41 to 43]	6.000	24.000
45 Intangible assets [Patents, goodwill, prelim, expenses, bad / doubtful debts Not provided for etc.]	524.678	326.320
TANGIBLE NET WORTH	149.456	272.541
ADJ TNW	164.402	299.795
Liabilities – Assets	--	--

DUPLEX WIRES PRIVATE LIMITED ISO 9001-2000 CERTIFIED COMPANY

Background

The company was incorporated as private limited company in September 1990 with authorized share capital of the company is Rs. 2.500 Millions as at December 1993.

The company is situated at MIDC, Kurkumbh, Daund Taluka, Pune District on one acre land with RCC built up area 8000 square feet.

The board of directors is constituted by

Mr. Anand V. Satpute [Chairman]

Mr. Anil A. Satpute [Managing Director]

The product portfolio is copper / copper related with or without surface coatings in various shapes and sizes for applications in electrical / electronics industries and energy distribution infrastructures.

The company has developed its own unique process of single or multiple layer electroplating process and requisite process equipments for reel to reel continuous plating. The galvanic coating technology it the company’s core strength.

The manufacturing facilities include wire drawing, annealing, continuous reel to reel wire plating line and 8 strand dip tinning line complete with pay off to take up on reels or pales. It has full fledged testing laboratory facilities for chemical and physical parameters.

Being environmentally conscious organization it has state of art effluent treatment plant for treating effluent.

The company enjoys about 35 % domestic market share in Tin / Solder coated copper wires for application as lead wires in electronics industries in India. Its customers base include many multinational firms covering all over India. Also about 50 M. T. has been exported to U. K. so far.

In the year 2005 the company received ISO 9001-2000 certificate from TUV South Asia Private Limited.

The company achieved turn over of Rs. 170 Million in 2005 and Rs. 400 Million is 2006 till September.

After realizing the company’s potential fro multifold growth in existing product portfolio as well introduction of newer products with vertical integration of main raw material, copper, Duplex Wires has entered into a strategic alliance.

Strategic Partnership

Synergic Industrial Materials and Services [India] Private Limited, having its Registered Office at 736, Sri Venkateshwara Hills Colony, 8-2-248/A/5 Road No. 3, Banjara Hills, Hyderabad – 500034, with offices in Malaysia and Singapore are having strong business base in copper raw materials sourcing and marketing. Promoters of the company are a good combination of copper technology and copper marketing.

Duplex Wires Private Limited has established its products brand image in electrical / electronic in copper and related products and well spread customer base including multinationals. The galvanic coating technology is the company’s core strength.

Both the company’s have therefore entered into an agreement to come together under the banner of Duplex Wires Private Limited to plough in each other’s strength to achieve planned business goals to achieve newer levels in international / domestic markets.

The company has an understanding with Leoni Temco of U. K. for international marketing of Duplex Wires products.

Goals

By expanding products portfolio in copper and copper based business so as to cover entire range of applications and therefore with expanded customer base achieve market leadership.

Manufacturing Facilities

Manufacturing faculties are situated at two centres, Pune and Parwanoo [H.P.]. The annual capacities at Pune is 3000 M.T. and at Parwanoo is 900 M. T. The facilities for production processes include wire drawing ; annealing ; continuous reel to reel wire plating line ; eight wire strand dip tinning line with take up on reels or pales ; nine wire enameling line from Dae-Tech [Italy]. It has also full fledged testing laboratory for chemical and physical tests.

Products

• Copper rod [2.65 mm dia] @ M.T. coiler for export market.
• Environmental friendly [RoHS] coated copper wires for electronics.
• Round / Flat copper conductors for electrical / cable industry.
• Enameled conductors for electrical motors.
• Tin / Nickel / Silver coated copper conductors for high temperature applications.
• Copper clad steel wire conductors for niche market [Proposed]
• Aluminium clad copper wires for niche market [Proposed]

Customer Base

• Electronic industries domestic and overseas
• Cable industries domestic and overseas
• Electric motors manufacturers
• Niche markets like Automotive / Aircrafts industries

Purpose of setup in Himachal [Parwanoo Unit]

• As they are well aware of the fact that Tax Structure in India is based on its Geographical Location as well as the State Government Directives.
• In the year 2003 Government has announced certain special Inventive Himachal Pradesh etc.
• As per these Schemes certain Provinces are declared as NO TAX zones.
• HP [Parwanoo] is one of such Sate wherein there is NO EXCISE,1 % CST, LOCAL VAT, NO INCOME TAX for next 10 Years.
• Looking a this Duplex Wires Private Limited, Management decided o have a Unit in this sector to cater to Industry in North Region so as to pass on these benefits to there customer.
• Duplex Product had very low sales in North Region as they had to Charge 4 % CST which made them costly to sale there products outside Maharashtra.
• Duplex by putting up a setup in this sector now can cater to the northern region as well as they have become competitive in selling there product outside Maharashtra with the benefit of 1 % CST through there Parwanoo Unit.
• Duplex products i.e. Copper Wire as well as Tinned Copper Wires has a vide application in Cable harnessing Industry as well as Equipment Assembly job, this Industry is also shifting towards these regions to enjoy the benefits of tax and cater to the Automobile as well as electronic industry which is very competitive in India today.
• Benefit of NO INCOME TAX for 10 years for generation of Income through sale will give support to the existing competitive setup n Pune Region.
• Procurement of Material for Parwanoo Unit is certralized in Pune. Material Imported after the Export against Licenses is sent to Parwanoo Unit for consumption so that it has no Incoming Taxes as well as no outgoing Taxes making the Product very competitive in he Region.
• If material Imported after Export is procured in the Pune Unit which is in Excise, Pune Unit has to Pay Excise Duty from its Cash Flows and then subsequently recover the same from other Excisable Units only.
• This restricts the market as well puts pressure on the Cash Flows for the organization.
• With unit in Parwanoo wherein this material with NO TAX is available various regions as per the Notification are available wherein they require this material thus adding to the market and improving the sales for DUPLEX.
• So long as the knowledge as well as study goes for this region, DUPLEX is the first company in field of these Wires which has a setup in Himachal Pradesh giving it a edge over the other competitors which may come in the years to come.

POTENTIAL CUSTOMER BASE IN NORTHERN REGION

Party Name	Region	Reqd QTY MT/Month	Present QTY Sold MT	Value Reqd Rs in Millions	Actual value
Jay Ambe Metal Corporation	Surat	15.00	65.940	5.250	20.531
Mayank Jain and Company	Delhi	5.00	12.861	1.750	4.054
Vaishnavi Metal Industry	Delhi	5.00	17.971	1.750	5.442
Bhairav Bhooshan Industry	Jallandar	6.00	7.000	2.100	2.156
Shakti Enterprises	Jallandar	7.500	33.076	2.625	10.554
Raghav Trading Company	Delhi	4.000	9.048	1.400	2.868
Shree Jaree Works	Surat	3.000	3.000	1.150	0.939
Bhagwati Metal Works	Jammu	12.000	66.524	4.200	24.188
Mayur Enterprises	Delhi	4.000	17.930	1.400	6.673
KNJ Wires and Cables	Solan	5.000	15.101	1.750	5.842
Friends Enterprises	Jallandhar	5.000	21.150	1.750	6.799
	Total	71.500	269.601	25.125	90.046

PROPOSED POTENTIAL BUYER IN SOLAN

Party Name	Qty in MT/Month	Region
Plaza Electric Works	10.00	Solan
Shreelal Electric Works	7.00	Solan
Dip Technologies Private Limited	4.00	Solan
Jaghruti Appliances	5.00	Solan
Renuka Electric Works	7.50	Solan

• In a very short span Duplex and achieved very good business as well as name in the region.
• With its dedicated workforce comprising of family members, it will further grow in this area.
• Unit is handled by Son in Law of Mr. Anand Satpute [Chairman] Duplex Wires Private Limited.
• Mr. Manohar Ghadsi with his family of 3 Brothers has shifted his base from Pune to Parwanoo to Support Mr. Suhas Salekar [Son in Law]
• Mr. Suhas Salekar is Diploma Holder in Printing Technology. Has an experience as incharge of a Printing Press wherein he was handling a workforce of 50 people, reporting directly to the Director.
• Mr. Suhas has undergone a Brisk Training for handling of Copper with his experience in Duplex Wires Pune Unit for a period of 1 month.
• Mr Manohar is been associated with Duplex Group for the past 5 years with hands on experience on various Wire Drawing as well as Plating Machines.
• With such a able team Duplex Stands a better chance to succeed in achieving the milestones set for there growth.

Duplex Wires Private Limited is a manufacturing firm making products used in field by Electronic, Electrical, Telecommunication Industry and Automobile Industry.

Its basis Infrastructure is used for manufacturing and trading Copper Wire, Tinned Copper Wires, Enammelled Copper Wires, Copper Strips, Copper Rods, Cables, [Pb] Free Lead Wires for International Market.

SOURCING OF BASIC MATERIALS

The main raw material used to make all the above products is 8mm CC Copper Rod of ETP Grade Copper Rod. The prime raw material which is 70 % of the product cost is sourced either from International Markets like Malaysia, Singapore, Taiwan, Korea, Russia, or is sourced from Indian Manufacturer like Hindustan Copper Limited, Sterlite Industries Limited etc. Since Duplex is manufacturer Exporter of there products, it source its Raw Material from International Market there indenting Agent SIMS i.e. Synergic Industrial Marketing Services. Duplex Wires met them in the year 2001 during an International Wire and Cable Exhibition. Since then SIMS Malaysia, Singapore have been their key source of Raw Material Sourcing.

Pricing of Copper is done on the London Metal Exchange [LME] price of copper from time to time. Material is priced as and when it is sole so as to avoid losses arising to the fluctuations in LME Prices. Since Duplex has not changed source of buying for year there has been a considerable leverage given for the pricing of there shipments Duplex enjoys flexible pricing policy with the supplier.

Contracts for quantities are signed on yearly basis so as to maintain consistent supplies irrespective of stock fluctuations in the international market. For the year 2007-08 Duplex has already signed a Quantity contract for 3000 MT with SIMS.

Increase in quantities is either contracted with the international source or is sourced from local manufacturer from time to time.

OTHER BASIS MATERIAL

Duplex uses chemicals for Drawing as well as Tinning Copper Wires. These chemicals are sourced from the local manufacturer. Duplex has inhouse testing facilities to test the purity or specifications of these materials.

Tin Ingots as well as Solder Ingots used for Plating of Tin are also sourced from the local suppliers.

INFRASTRUCTURE

Since the products are price sensitive as well as volume base, Duplex has an adequate infrastructure of manufacturing in Pune as well as Himachal Pradesh. Its installed capacity is more than 5000 Tons per year. Capacity utilization to the optimum level makes Duplex more competitive. Duplex has as combination of indigenous machines as well as imported machines to give the best product. Company has never hesitated in acquiring adequate knowledge, or machine for that matter to give the best to its customers which ahs been the key strength.

The Top Management is well qualified and technically sound to adopt to changes in technology as well as environment. Developing new process as well as techniques or machine has been one of the main features in Duplex growth worldwide. It has successful made [Pb] Free Lead Wires inhouse which is a necessity to save environment from polluting ingredients. This has given them a strong edge to supply their products in International market at premiums in comparison to other manufacturer of the same product.

MARKETING

Products manufactured are basically make to order based on the Customer specification. Marketing is centrally controlled from Pune. Duplex has a marketing office for its overseas marketing in Malaysia. In U.K. the product are sold directly to user. Presently there is no dealer, distributor network for Duplex Products in India as well as abroad. Duplex is planning to have such networks in the coming year to increase there share of Market.

By having Units at various locations, Duplex is in a position to cater to its various clients as per geographical availability and taxing structures. This make Duplex more competitive in comparison to any another competitor within India.

Being in the field for the past 15 years and having produced a Qualitative product, Duplex carries a very strong Brand image in the Electronic and Electrical market. Duplex has now plans to have its own website so that there sales internationally will grow multifold in the years to come.

Changing the product mix as well as catering to various customers in various industries keeps the growth. High volume and optimum margins have always been the success bones for the company.

Company has entered into a strategic alliance with SIMS to market the products in the Far East, Middle East and European Market.

Duplex personnel are in an effort to increase the sales of value added products by segmenting market into OEM, Traders, Dealers, Distributors network.

SALES

Sales volumes in terms of Quantity as well as values have always touched new horizons for Duplex.

Year	QTY in MT	Value in Millions
04-05	222	77.300
05-06	569	160.000
06-07	1800	700.000
07-08	3000	1030.000

Target for sales in the year 2008-08 are 3000 MT with export upto 60 % and Local Sales 40 %. Result can be achieved due to addition of new machines in the present year.

Pricing of products

Pricing for the product is LME based and is subject to fluctuations hence profitability changes to a great extent. To avoid this Duplex has taken adequate effort to minimize the priced risks by hedging copper in international market. Purchase is priced only when an equivalent quantity is sole. This will help bring stability to profit figures in the coming year. The supplier has agreed for flexible pricing policy looking at the business prospects as well as long term relationship.

POLICY DECISIONS

No investments in capital goods for the next years so long as the capacity utilization is upto 85 % of existing machines.

Target growth of 25 % in value added products

Target market segment in Europe wherein he products will have maximum Value addition.

Reinvest profit in the company and have a better capital base

Bring the growth pattern to a stable level.

FIXED ASSETS

• Building
• Computer
• Furniture and Fixture
• Office Equipments
• Plant and machinery
• Electrical Fittings
• Lab Equipments
• Land
• Printer
• Mobile
• Vehicles

Contingent Liabilities

The company imports raw materials by using “Advance License” in normal course of business, after extending corporate guarantee in favour of the Customs Department. The cumulative amount of live guarantee bonds was Rs. 215.000 Millions as at 31.03.2008. as the company was to export manufactured items within the permitted span of time, the said liability is a contingent liability and hence disclosed accordingly.

MR. ANIL SATPUTE [PERSONAL BALANCE SHEET]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007
SHAREHOLDERS FUNDS
1] Share Capital		5.221
2] Share Application Money		0.000
3] Reserves & Surplus		0.000
4] (Accumulated Losses)		0.000
NETWORTH		5.221
LOAN FUNDS
1] Secured Loans		5.271
2] Unsecured Loans
TOTAL BORROWING		5.271
DEFERRED TAX LIABILITIES		0.000
TOTAL		10.492
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.133
Capital work-in-progress		0.000
INVESTMENT		2.382
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000
	Sundry Debtors	0.000
	Cash & Bank Balances	0.429
	Other Current Assets	0.005
	Loans & Advances	7.543
Total Current Assets		7.977
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	0.000
	Provisions	0.000
Total Current Liabilities		0.000
Net Current Assets		7.977
MISCELLANEOUS EXPENSES		0.000
TOTAL		10.492

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2007
Total Income	2.185
Net Profit	0.645
Total Expenditure	1.540

KEY RATIOS

PARTICULARS		31.03.2007
PAT / Total Income	(%)	29.52
Net Profit Margin (PBT/Sales)	(%)	29.52
Return on Total Assets (PBT/Total Assets}	(%)	7.95
Return on Investment (ROI) (PBT/Networth)		0.12
Debt Equity Ratio (Total Liability/Networth)		0.01
Current Ratio (Current Asset/Current Liability)		0.00

BANKERS CHARGES REPORT AS PER REGISTRY

Name of the company	DUPLEX WIRES PRIVATE LIMITED
Presented By	Mr. Anand Vishnu Satpute
1) Date and description of instrument creating the change	22.07.2002 Agreement of hypothecation for plant and machinery, furniture and fixture etc to sewer loan
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 0.299 Million
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Hypothecate plant, machinery, furniture, fixture, all fittings, tools, spares, accessories and parts what source pertaining to the said plant, machinery, furniture and all replacements as additions made thereto and Discal generator set.
4) Gist of the terms and conditions and extent and operation of the charge.	17 % p.a. 12 monthly installments of Rs. 0.027 Million each payable on 10^th day of each month from 10^th August 2002.
5) Name and Address and description of the person entitled to the charge.	The Shree Suvana Sahakari Bank Limited, 272, Shariwar Peth, Pune – 411030, Maharashtra, India
6) Date and brief description of instrument modifying the charge	NA
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	NA

This form is for	Creation of charge
Corporate identity number of the company	U31300MH1990PTC058307
Name of the company	DUPLEX WIRES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No – 74, Lane No – 3, Natraj Co Op Hsg., Karve Nagar, Pune – 411052, Maharashtra, India
Type of charge	Immovable Property
Particular of charge holder	Janata Sahakari Bank Limited, Bajirao Road Branch, Pune – 411002, Maharashtra, India
Nature of description of the instrument creating or modifying the charge	Deed of Simple Mortgage
Date of instrument Creating the charge	04.01.2008
Amount secured by the charge	Rs. 90.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest 14.75 % p.a. at present Terms of Repayment The Cash credit of Rs. 70.000 Millions loan shall be repaid within 12 months from the date of this indenture with interest at monthly rest and term loan of Rs. 20.000 Millions Repayable in 36 monthly installments of Rs. 0.691 Million Margin As prescribed by the Bank Extent and Operation of the charge First charge on present and future stock, machinery in business as attached to the agreement, book debts of the company.
Short particulars of the property charged	Present and future stock, Machinery in business as attached to the agreement, book debts of the company Simple mortgage of lease hold property of Plot No. A-3, MIDC, Kurkumbh situate at Kurkumbh, Taluka Daund, District Pune Flat No. 3, Building D 17, Giridhari Nagar, Warje, Pune Flat No. 202 [apartment No. 6], Tara Towers, Plot No. R – 7, S. No. 20/2, Kothrud, Pune Flat No. 4, First Floor of building D – 17, Giridhari Nagar, Warje, Pune Shop No. 9, 10, Param Shopping Complex, Hingane [BK]

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.43.21
UK Pound	1	Rs.85.72
Euro	1	Rs.67.92

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	8
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	7
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		60

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.	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