Cospower Engineering Ltd Management Discussions.

Business Overview:

Our Company was originally incorporated as Cospower Engineering Private Limited at Mumbai as Private Limited Company under theprovisions of Companies Act, 1956 vide Certificate of Incorporation dated September 22, 2010, bearing Corporate Identification Number U31908MH2010PTC208016, issued by the Registrar of Companies, Mumbai and Maharashtra for the purpose of acquiring the Partnership business of M/s. Cospower Corporation, which was in existence since 2004. Subsequently, our Company was converted into Public Limited Company pursuant to a special resolution passed by members in Extra-Ordinary General Meeting of Company held on January 23, 2020 and thename of our company was changed to Cospower Engineering Limited vide a fresh Certificate of Incorporation dated February 19, 2020, issued by the Registrar of Companies, Mumbai and Maharashtra. The Corporate Identification Number of our Company is U31908MH2010PLC208016.

Initially our promoters have been started business in the year 2004 through partnership firm M/s. Cospower Corporation. The said firm was engaged in the business of trading and marketing of electric goods. Our promoters Mr. Oswald DSouza and Mr. Felix Kadam were the partners of the said firm. In FY 2010, our Company has taken over the running business of M/s Cospower Corporationalong with its assets and liabilities vide agreement of takeover dated December 01, 2010.

Our Company is currently engaged in the business of manufacturing of electrical panels, harmonic filters and substation and equipment mounting structure. The plant is equipped with machinery to produce the quality products with emphasis on quality and performance. Our Company has also been providing turnkey services which involves supply, installation, commissioning, testing and comprehensive maintenance of electric products. There are few products which the Company do not manufacture but has to provide turnkey services by buying from other manufacturers. Our Company has extended its product range to other power related products that are needed to complete the electrical system.Our company is offering ‘under one roof a complete package of electrical system and solutions.

Our Company has product portfolio that covers product range of electrical equipments and we also provide wide range of turnkey services with the help of highly trained team of field of service engineers to assure the safe and proper operation of the electrical distribution equipment. Over last decades, we believe that we have gained invaluable experience in assisting our customers develop new designs, incorporating latest technologies and efficiently utilising our manufacturing facility, equipment and materials and thereby constantly improving our product offerings, structure and functional design so as to meet our customers needs. We undertake manufacture and supply of finished products and intermediate-stage products for our customers on contract basis depending upon the demand from them.

Our Promoters Mr. Oswald DSouza and Mr. Felix Kadam have an experience of about more than 2 decades each in electrical and engineering industry. They have been the guiding force to take timely decisions and have served as an invaluable mentor for strategy formulation for our company.

Our Company is fully committed towards delivering products that will not only meet the expectations of the customers but exceed them as well to add a smile on their faces. And for achieving this objective, it is vital that the company upgrades the quality and range of its products to maintain the winning edge over its competitors. The engineers of the company are trained to face the markets challenge. Every engineer of the company are equipped and specialized to satisfy the clients needs. The ongoing training programs of the company are designed such that field engineers can independently handle the most intricate issues faced in the field during erection and maintenance of electrical equipment.

Our manufacturing unit is located at Vasai in Maharashtra. Our manufacturing facility is equipped with requisite infrastructure including machinery, other handling equipment to facilitate smooth manufacturing process. Moreover, the Environment Management System, Quality Management System and Occupational Health and Safety Management System of our Company has been approved as per the guidelines of ISO 14001:2015 ISO 9001:2015 and ISO 45001:2018 respectively for design, manufacturing, supply, commissioning and consultancy for electrical and mechanical equipment and Manufacturing of high/ low voltage electrical panels.

For the 9 months period ended as on December 31, 2019, Total Revenue and Restated Profit/ Loss after Tax was of our Company is 748.88 Lakhs and 24.86 Lakhs, respectively. For the year ended March 31, 2019, Total Revenue and Restated Profit after Tax of our Company was 1303.26 Lakhs and 51.73 Lakhs respectively, compared to Total Revenue and Restated Profit after Tax of 860.75 Lakhs and 19.24 Lakhs respectively, over previous year ended i.e. March 31, 2018.

Our Location:

Registered Office Flat No.203, 2nd Floor, Kesarinath Apartments, S.V. Road, Opp. Vijay Sales, Goregaon West, Mumbai, Maharashtra - 400062.
Manufacturing Unit Gala No. K-4 Qureshi Estate, Sagar Industrial Estate, Survey No. 32, Parabwadi, Vasai East, Palghar- 401208 , Maharashtra.

Our Competitive Strengths:

We believe we have the following competitive strengths:

• Quality standards and ISO certified organisation

Quality plays one of the most vital role in the success of any organisation. We are focused on providing quality products. We constantly strivedto improve our industrial processes at every step in the production chain. The Environment Management System, Quality Management System and Occupational Health and Safety Management System of our Company has been approved as per the guidelines of ISO 14001:2015 ISO 9001:2015 and ISO 45001:2018 respectively for design, manufacturing, supply, commissioning and consultancy for electrical and mechanical equipment and Manufacturing of high/ low voltage electrical panels. Our focus on quality is evidenced by the quality certifications and accreditations that our facility has obtained.We believe that ensuring global standard products will attract domestic and international customers to our Company.

• Experienced and professional management team

We believe that our qualified management team provides us a competitive advantage and enables us to function effectively and efficiently. Our Promoters, Mr. Oswald DSouza and Mr. Felix Kadam have over 2 decade of experience in the electrical and engineering industry. The Promoters are supported by our experienced and professional management team having varied experience in finance, marketing, sales, product development, etc. Our management team brings focused abilities in product conceptualization to our business and we believe that theirknowledge, global outlook and management ability would continue to contribute to our growth in future.

• Stable customer base

Our Company enjoys long standing relationship with key customers and suppliers. These long standing relationships are result of our commitment to quality, timely delivery, promptness in payments and adaptability etc. Over last decades, we believe that we have gained invaluable experience in assisting our customers develop new designs, incorporating latest technologies and efficiently utilising our manufacturing facility, equipment and materials and thereby constantly improving our product offerings, structure and functional design so as to meet our customers needs.

• Wide product range and product segments

Our Company has product portfolio that covers product range of electrical equipments and we also provide wide range of turnkey services with the help of highly trained team of field of service engineers to assure the safe and proper operation of the electrical distribution equipment. We believe that maintaining a diverse portfolio in our business provides us with an opportunity to cater to diverse needs of our different customer segment.

• Well established manufacturing facility

Our manufacturing facility is situated at Vasai in Maharashtra consisting various machineries and suitable infrastructure and quality control setup to handle the product portfolio. The manufacturing process provides us with the flexibility of manufacturing any part of our products at short notice and delivered within scheduled.

Our Business Strategy

• Brand Image

We would continue to associate ourselves with good quality customers and execute orders to their utmost satisfaction. We are highly conscious about our brand image and intend to continue our brand building exercise by providing excellent services to the satisfaction of the customers.

• Strengthening relationship with existing customers and widen our customer base

We look to further strengthen our relationship with our existing customers and meet their requirements. Whilst we continue to cater to our existing customers, we are emphasizing a lot on establishing new our relationship with prospective customers so that we can expand our customer base in other areas as well.

• Effective Utilization of Funds and Resources

The sustainability and profitability of our business lies in effective utilization of our resources. It involves lower reject ion, prompt recovery, cost effective purchases, controlled inventory, preventive maintenance of machines and equipment and constant endeavor to improve process timings and thereby increasing the productivity.

• Continueto expand and increase production capacity

Our Company constantly endeavors to explore opportunities to expand our operations by developing new products and services within our existing lines of business. We expect that the increase in our product base will result in an increase in customer base and enable us target more customers and market segments.

• Continue to improve operational efficiencies and cost competitiveness continuously

We continue to adopt best practices and standards across our manufacturing facility, drawing on our managements expertise and experience in plant management. We continue to increase efficiencies through comprehensive product planning resulting in increased utilizat ion rates and reduction in cost of production.

• Focus on consistently meeting quality standards

Presently, Our Company is certified from ISO 14001:2015, ISO 9001:2015 and ISO 45001:2018and we intend to focus on adhering to the qualitystandards of the products. This is necessary so as to make sure that we get repeat orders from our customers. This will also aid us in enhancing our brand value.

Our Products Range:

Our Company manufactures electrical equipments. Various product manufactured by the company are mentioned below: -

• Electrical Equipment:

Our Company manufactures capacitors, switchgears, harmonic filters, cable termination kits, transformers, battery and battery chargers, electrical panels etc.

• Manufacturing Facilities:

Our manufacturing unit is located at Vasai in Maharashtra. Our manufacturing facility is equipped with requisite infrastructure including machinery, other handling equipment to facilitate smooth manufacturing process. We endeavour to maintain safety in our premises by adhering to key safety norms. Our manufacturing process is integrated from procurement of raw materials to final testing. We believe in manufacturing and delivering quality products and are dedicated towards supply of quality products by controlling the procurement of standard raw material, monitoring the process parameters, maintaining appropriate measures to manage hazardous materials and to comply with applicable statutory and regulatory requirements of our products. It is the diligent efforts of our personnel, that we have been able to streamline our business operations.

The following table provides an overview of our production machines:

S. No Name of equipment/instrument Qty. No.
1. Hydraulic Angle punching machine 713 Punch Press Model 731 web type of 30 Ton capacity 1
2. Hydraulic AW Shear Press 704 Press Model 704 of 50 Ton 1
3. Hydraulic AW NBC 710 Notcher-Bender-Coper Model of 10 to 18 tons capacity 1
4. Power pack system motor 10 HP, pump11 lpm, W.P 315 bar, 80 litres tank capacity 1
5. Power pack system motor 5 HP, pump 6 lpm, W.P 315 bar, 50 litres tank capacity 1
6. Hydro-pneumatic Press 15 Ton, “C” frame CISCA-75-6 anti rotation guide, track 75 mm. 1
7. Air Compressor Model 353 with 7.5 HP motor 1
8. Lathe Machine 1
9. Welding Machines 2 sets
10. Vertical Fixed type drilling machine 1
11. Portable hand drilling machines 2
12. Hex saw steel cutting machine 1
13. Fixed type tool grinding machine 2
14. Electronic weighing machine capacity of 500 kgs. 1
15. Capacitance meters 6
16. ACA leakage tester 4
17. Multimeter analogue 1
18. Motorized Meggar 500 V 1
19. Motorized Meggar 5000 V 1
20. Earth Leakage Meggar 1
21. Multimeter Analogue 1
22. Primary Injection Kit 1
23. Relay Testing Kit 1
24. Variac 24-230 VDC 1
25. 3 phase Harmonic Analyzer 1

Our manufacturing process

Our machines are equipped with complete machinery for fabrication, assembly and updated testing facilities of electrical panels to ensure that the end product is of a highest quality level. We have and may have dedicated production lines based on the size and frequency of the orders of our customers.

The production process may be diagrammatically explained in the following manner:

The process undergone in the manufacturing is briefly described hereunder:

Design and fabrication:

The manufacturing process begins with fabrication of panel. This is done as per the designs done by our design department. All drawings are vetted by the engineering department. Along with the drawings we have initiate the procurement of raw materials so that materials are available to start theassembly work as soon as the panels are fabricated and powder coated.

Assembly of components:

All the components of the panels are purchased from reputed suppliers. Raw materials are procured by our project department based on the bill of materials and the specification of the materials. We have a proper vendor development procedure to ensure that materials are procured from the most reliable source and at competitive prices prevailing in the market. All the components are assembled in the panel as per the drawings. Every component that are used in the assembly have distinctive numbers which are recorded in the job card to maintain a proper history of the production process and the end product. Besides, components like Ammeter, Voltmeter, Multi-functional meters, relays, LED lamps, pushbuttons etc. are fitted on the doors of the panels. The alignment of the components assembled is closely supervise by the supervisors to maintain a proper aesthetic look and also enable ease in power and control connection.

Power Connections:

The next process is the power connection which are done through aluminium or copper busbars. Busbars are actually flat strips ofsizes based on the current rating of the panels. These are specified in the bill of materials. Busbar size selection are done on specially designed software to eliminate any errors in calculations. The busbars are used for making inter connections between electrical components as per the drawing.

This work involves cutting, drilling or punching and bending processes which are done on our hydraulic machines and drilling machines. These finished busbars are provided with heat shrinkable sleeves for insulation. All the busbars are supported to the panels sturdily through epoxy insulators that are tailor made for our panels. Also, connections are made through powercables wherever providing busbars are not feasible. This involves cutting of cables and crimping of cables lugs on both ends. Crimping is done on pneumatic or hydraulic crimping machine. This is a very important activity as the connection of lug has to be just adequate i.e. neither loose nor too tight as both can lead to adverse performance of the panels. For critical application we also use fiber glass insulation cables which has superior features compared to normal cables. The assembly of the complete panels is an important aspect of production as the panels are at times subjected to short circuit forces during operation which the panels should be able to withstand.

Control wiring:

The next process is control wiring of the entire panel. This is done as per the electrical diagram approved by the engineering department. The cables are procured from reputed manufacturers. The cross section of the cables are as per sizes given in the bill of materials made by the design department and approved by the engineering department. Every control cable is fitted with identification ferrules which are made in the ferrule printing machine. Finally, the lugs are crimped to the cables for connecting the same to the components. Cables are routed through cable trunk and neatly dressed to give a good aesthetic look.

Finishing:

In the next process the panels are thoroughly cleaned and the necessary labels, rating plate, danger plate and ourcompanys logo are affixed on the panel doors. Each final product is provided with a distinctive serial number.

Routine Testing:

The panels are tested by the quality control department based on the prescribed quality check document. This document also includes random test for workmanship which are very stringent norm. No failure is permitted and if there is even one failure then the entire panel is rejected by the quality control department.

Packing and Dispatch:

The panels are then packed. During packing activity, all care is taken that the components fitted on the doors is protected with good packing materials. All necessary supports are provided while loading the finished panels such that the panels reaches its destination safely.

Our Services:

• Electrical System Study Solutions

Our company is specialized in power quality improvement. All the engineers are trained to carry out power studies in the premises of the clients.

The studies are carried out with sophisticated state-of the-art power analysers. Thereafter the data is downloaded on the computer and these data are fed into a specially designed software. A thorough analysis is done on the results obtained from the software and recommendation are given to the clients. Based on our recommendation when the customer places the order on us, we design, manufacture and install the equipment in the premises of the client. Following the installation and commissioning, the power analysis is once again carried out to demonst rate the improvement in the voltage wave form which are actuals outcome of installation of our designed power quality improvement equipment.

• Energy Audit Study

Over the years of experience in the industry, we have been able to render reliable energy audits services to our customers. We provide complete recommendation to conserve energy and reduce the unnecessary power losses of the system to ensure that the client saves on energy costs. All we assure our valued customers that energy cost could be minimized substantially in an effective manner. It includes: Energy Audit Energy Conservation Energy Savings Energy Auditor Energy Management Energy Crisis Energy crisis planning

Energy & Environment Energy balance

Energy efficiency & Conservation Energy information &Administration Energy Industry Energy use &Conservation Energy Intensity Energy Industry Energy Resources

Marketing and selling arrangements

We have developed a marketing network across various states in the country focusing on government agencies, public sector undertakings and private clients as well. Our marketing team is led by our Promoters who are responsible for the overall marketing strategies. Our success lies in the strength of our relationship with our customers who have been associated with us for a long period. Our sales andmarketing team is headed by our management which keeps itself updated on the customer preference and changes in their requirements from time to time. Our marketing team is also assisted by a technical team which is headed by our Director Mr. Felix Kadam. Our promoters Mr. Oswald DSouza and Mr. Felix Kadam, through their vast experience and good rapport with customers plays an instrumental role in quality maintenance and timely delivery of products.

Our company uses marketing tools like advertisement, complimentary gifts, seminars followed by fellowship dinner for clients in order to widen their business scope and penetrate the market more incisively to increase business potential and market share of the company. Our company participate in exhibition in trade fairs related to electrical products. The management and staff also attend trade exhibitions all over the country to understand the trends of the market and also to promote that brand of the company.

Competition

We operate in an increasingly high competitive market, with participants in the organized and the unorganized sector. We face competition from other manufacturers, traders, suppliers and importers of electric equipment in relation to our offerings. Suppliers in the electric equipment industry are based on key attributes including technical competence, product quality, strength of sales and distribution network, pricing and timely delivery.

While our competitors in the organized sector focus more on technology and quality of their products, their unorganized counterparts supply their products at extremely competitive prices, which we may be unable to effectively compete with. For instance, we face competition from electric equipment of Chinese origin, primarily in the switchgear and panels verticals, which have gained significant presence in the Indian electric equipment market and which may be sold at more competitive prices than what we offer.

For and on behalf of the Board of Directors
Sd/-
OSWALD ROSARIO DSOUZA
CHAIRMAN & MANAGING DIRECTOR
Date:08th October, 2020
Place: Mumbai