MIRA INFORM REPORT

Report Date :

22.07.2011

IDENTIFICATION DETAILS

Name :	KEI INDUSTRIES LIMITED

Registered Office :	D – 90, Okhla Industrial Area, Phase – I, New Delhi – 110020

Country :	India

Financials (as on) :	31.03.2010

Date of Incorporation :	31.12.1992

Com. Reg. No.:	051527

Capital Investment / Paid-up Capital :	Rs.127.870 millions

CIN No.: [Company Identification No.]	L74899DL1992PLC051527

TAN No.: [Tax Deduction & Collection Account No.]	DELK05368G DELK05577F

PAN No.: [Permanent Account No.]	AAACK0251C

Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchange.

Line of Business :	Manufacturing of Cables, Non-Ferrous Metals and Jelly Filled Telecom Cables.

No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

RATING

STATUS

PROPOSED CREDIT LINE

41-55

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

Satisfactory

Maximum Credit Limit :	USD 8900000

Status :	Satisfactory

Payment Behaviour :	Slow but Correct

Litigation :	Clear

Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – April 1, 2010

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

India

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

LOCATIONS

Registered Office/ Head Office/ Factory :	D-90, Okhla Industrial Area, Phase – I, New Delhi – 110020, India
Tel. No.:	91-11-26818810/26818642/26815558/59/26815197/26818840/2681024/699
Fax No.:	91-11-26811959/ 26817225
E-Mail :	anilgupta@kei-ind.com keiind@vsnl.com melkei@nda.vsnl.net.in
Website :	http://www.kei-ind.com

Factory :	· SP-919, 920, 922, RIICO Industrial Area, Phase - III, Bhiwadi, District Alwar - 300019, Rajasthan, India · 99/2/7, Madhuban Industrial Estate, Village Rakholi, Silvassa- 396230, Dadra and Nagar Haveli, Union Territory · Plot No.A-280/281/282/283, RIICO Industrial Area, Chopanki, District Alwar -301019, Rajasthan, India

Overseas Office :	Dubai Post Box No. 261739, Jebel Ali Free Zone, Dubai, U.A.E. Tel: 97143689336 Fax: 97143689337 e-mail: keidubai@emirates.net.ae

Regional Marketing Office :	Mumbai (Marketing Office) 101/102, Vastu Shilp, Vastu Enclave, Andheri Pump House,, Andheri (East), Mumbai – 400093, Maharashtra, India Tel: 91-22-28239673, 28375642. Fax: 91-22-28258277 E-mail: kei.mum@kei-ind.com · No. 27/F, 1^st Floor, Chakrapani Street, West Mambalam, Chennai - 600033, Tamilnadu Tel. No. 91-44-4836781 · 3F, III Floor, Siddhi Vinayak Chambers, Gandhi Nagar, Opp, MIG Ground, Kala Nagar, Bandra (East), Mumbai – 400051, India Tel. No. 91-22-6428125 Fax No. 91-22-6436547

Branch Office :	Mumbai 101/102, Vastu Shilp, Vastu Enclave, Andheri Pump House,, Andheri (East), Mumbai-400093, Maharashtra, Idnia Tel: 91-22-28239673, 28375642. Fax: 91-22-28258277 e-mail: kei.mum@kei-ind.com Jaipur 7 Kailash Path, Suraj Nagar (West) Civil lines, Jaipur-302006 Tel: 91-141-2221707 Fax No.: 91-141-5179279 Email : jaipur@kei-ind.com Pune Amrit Kailash, Anuja Building, G-wing, Flat No. 103, S.No. 9, Shahu Colony, Karvenagar, Pune-411052. Tel: 91-9822048426 Fax No.: 91-20-25450345 Email : pune@kei-ind.com Baroda 803, Siddharth Complex, Near Hotel Express, R. C. Dutta, Road, Baroda-390007. Tel: 91-265-6539719 Fax: 91-265-2334161 Mobile : Tel: 91-9824087943/9824676443 e-mail: baroda@kei-ind.com Bangalore 303, 3rd Floor, President Chamber, Plot No. 8, Richmond, Road, Bangalore-560025. Tel: 91-80-22111187 e-mail: hzakee@kei-ind.com Chennai F-1, Sir Usman Court, New No. 63, (Old No. 27), Eldams Road, Tenampet, Chennai-600018 Tel: 91-44-42009120. Telefax: 91-44-42009130 e-mail: keichn@kei-ind.com Hyderabad Plot No. 76, H.No.: 3-14-52/1, Shubodaya Colony, Near Little Champs School, Mansoorabad, Vanasthalipuram, Hyderabad-500070 Tel: 91-40-32405522. Telefax: 91-40-25504358 Kolkata 2/1, Kalibari Lane, Jadavpur, Kolkata-700032. Telefax: 91-33-24121065 e-mail: keikol@kei-ind.com Chandigarh Flat No. 302, GH – 26, Mansa Devi Complex, Sector – 5, Panchula, Punjab, India Gwalior C – 6, Balaji Apt, City Center, Site No. 1, Gwalior, Madhya Pradesh, India Tel No.: 91-9977703797 Fax No.: 91-751-2350498 Email : gwalior@kei-ind.com Bhopal E/87, Minal Residency, Phae – 1, J.K. Road, Govindpura, Bhopal – 462023, Madhya Pradesh, India Bhubaneshwar C/21, Palashpalli, Near NCC Office, Bhubanneshwar – 751012 Tel No.: 91-9714-3689336 Fax No.: 91-9714-3689337

DIRECTORS

Name :	Mr. Anil Gupta
Designation :	Chairman cum Managing Director
Date of Birth / Age :	49 Years
Qualification :	B.Com
Experience :	28 Years
Date of Appointment :	31.12.1992

Name :	Mr. Sunil Gupta
Designation :	Director

Name :	Mrs. Archana Gupta
Designation :	Director

Name :	Mr. Pawan Bholusaria
Designation :	Director

Name :	Mr. K G Somani
Designation :	Director

Name :	Mr. Vijay Bhartia
Designation :	Director

Name :	Mr. Vijay Bhushan
Designation :	Director

Name :	Mr. Rajeev Gupta
Designation :	Executive Director (Finance)
Date of Birth / Age :	45 Years
Qualification :	Chartered Accountant
Experience :	16 Years
Date of Appointment :	14.12.1993

KEY EXECUTIVES

Name :	Mr. Kishore Kunal
Designation :	Company Secretary

	KEY MANAGEMENT PERSONNEL

Name :	Mr. Manoj Kakkar
Designation :	Chief Operating Officer

Name :	Mr. S. L. Kakkar
Designation :	President

Name :	Mr. Pawan Aggarwal
Designation :	Vice – President

Name :	Mr. K. C. Sharma
Designation :	Vice- President (Work – Bhiwadi

Name :	Mrs. Ashwini Kumar Gupta
Designation :	Vice – President (Marketing)

Name :	Mr. S. C. Sharma
Designation :	General Manager (EPC)

Name :	Mr. Vishwesh Bhatia
Designation :	General Manager (Marketing)

Name :	Mr. N. K. Bajaj
Designation :	General Manager (Wires and Flexibles)

Name :	Mr. Krishan Tamhamkar
Designation :	DGM (International Business)

Name :	Mr. N. S. Yadav
Designation :	DGM (Q.C.)

Name :	Mr. Dayanand Sharma
Designation :	DGM (Work-Chopnkil)

Name :	Mr. Ajay Mehra
Designation :	DGM (Works – SS Wire)

Name :	Mr. Munishwar Gaur
Designation :	General Manager (Business Development)

Name :	Mr. Dilip Barnwal
Designation :	DGM (Work-Silvassa)

Name :	Mr. Alok Saha
Designation :	DGM (Marketing)

Name :	Mr. Ajit Dinesh Durve
Designation :	DGM (International Business )

Name :	Mr. Gaurav Sahi
Designation :	Head Corporate Communications

Name :	Mr. A. K. Maity
Designation :	Senior General Manager (Works)

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.06.2011

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	19668466	29.38
Bodies Corporate	8180000	12.22
Sub Total	27848466	41.60
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	27848466	41.60
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	58340	0.09
Foreign Institutional Investors	222744	0.33
Sub Total	281084	0.42
(2) Non-Institutions
Bodies Corporate	17991721	26.88
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 million	17522900	26.18
Individual shareholders holding nominal share capital in excess of Rs.0.100 million	2324884	3.47
Any Others (Specify)	968383	1.45
NRIs/OCBs	637158	0.95
Clearing Members	325375	0.49
Trusts	5850	0.01
Sub Total	38807888	57.98
Total Public shareholding (B)	39088972	58.40
Total (A)+(B)	66937438	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	-	-
Sub Total	-	-
Total (A)+(B)+(C)	66937438	-

BUSINESS DETAILS

Line of Business :

Manufacturing of Cables, Non-Ferrous Metals and Jelly Filled Telecom Cables.

Products :

Products Descriptions	Item Code No

Cables	85
Stainless Steel Wire	72
Winding Wire	85

· Non-Ferrous Metals

· Jelly Filled Telecom Cables

· Control Cables

· LT Power Cables

· Instrumentation Cables

· Engineering Consultants

· State Electricity Boards

· HT Cables

· Thermocouple Extension/Compensating

· Rubber Cables

· House Wires

· Single/ Multicore Flexible Wires

· Winding Wires

· Stainless Steel Wires

GENERAL INFORMATION

Suppliers :

Department of Telecommunication, Government of India.

Customers :

· Bombay Stock Exchange (BSE)

· National Stock Exchange (NSE)

· Delhi Stock Exchange

· Kolkata Stock Exchange

· GDR

· FCCB

No. of Employees :

Not Available

Bankers :

· Dena Bank, New Delhi

· Punjab National Bank, New Delhi

· ING Vysya Bank

· State Bank of Hyderabad

· Yes Bank

· Standard Chartered Bank

· ICICI Bank

· Bank of India

· HSBC Bank

· HDFC Bank

· ABN Amro Bank

· State Bank of Patiala

Facilities :

Secured Loans	31.03.2009 Rs. In Millions
Terms Loan From Bank	350.951
Interests Accrued and Due (Secured by equitable mortgage of factory land and buildings, first charge on immovable and movable assets of the company and guaranteed by Anil Shah)	1.033

For Working Capital From Bank	1946.450
Interests Accrued and Due (Secured by equitable mortgage of factory land and buildings, Hypothecation of company’s all current and movable assets and by way first charge on all plant and machinery and guaranteed by Anil Shah)	0.000

Hire Purchases Finance (Secured against hypothecation of vehicles)	8.588

Total	2307.022

Unsecured Loans	31.03.2009 Rs. In Millions
Deposits	39.540
Sales Tax Deferment	0.000
Other Loans Foreign Currency Convertible Bonds	1132.625
Commercial Paper	200.000

Total	1372.165


Banking Relations :	Good

Auditors :
Name :	Jagdish Chand and Company Chartered Accountant
Address :	New Delhi, India

Memberships :	Confederation of Indian Industry

Associates:	KEI International Limited

Subsidiaries :	KEI Power Limited

Other related party :	Projection Financial and Management Consultants Private Limited Subh Laxmi Motels and Inns Private Limited Soubhagya Agency Private Limited Dhan Versha Agency Private Limited KEI Cables Private Limited Ashwathana Constructions Private Limited

CAPITAL STRUCTURE

As on 28.08.2010

Authorised Capital : Rs.250.000 millions

Issued, Subscribed & Paid-up Capital : Rs.133.875 millions

As on 31.03.2009

Authorised Capital :

No. of Shares	Type	Value	Amount
110000000	Equity Shares	Rs.2/- each	Rs.220.000 Millions
300000	Preference Shares	Rs.100/- each	Rs.30.000 Millions

	Total		Rs.250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
60937438	Equity Shares	Rs.2/- each	Rs.121.875 Millions

NOTE:

8716215 Equity Shares of Rs.2/- each were allotted to as fully paid shares as per scheme of amalgamation without payment being received in cash.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		127.870	121.875	121.617
2] Equity Share warrants		49.000	0.000	0.000
3] Reserves & Surplus		2049.290	1843.877	1949.127
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2226.160	1965.752	2070.744
LOAN FUNDS
1] Secured Loans		2576.280	2307.022	1909.096
2] Unsecured Loans		822.090	1372.165	1510.405
TOTAL BORROWING		3398.370	3679.187	3419.501
DEFERRED TAX LIABILITIES		0.000	0.000	113.615

TOTAL		5624.530	5644.939	5603.860

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		2654.400	2727.346	1914.170
Capital work-in-progress		124.220	66.752	399.742

INVESTMENT		1.040	1.039	3.171
DEFERREX TAX ASSETS		0.000	1.209	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2026.820	1574.689	2411.250
	Sundry Debtors	2600.690	2506.561	2586.727
	Cash & Bank Balances	50.770	230.211	323.644
	Other Current Assets	136.060	19.913	4.329
	Loans & Advances	396.710	467.245	472.105
Total Current Assets		5211.050	4798.619	5798.055
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors & Other Current Liabilities	2339.460	1950.026	2511.278
	Provisions	26.720	0.000	0.000
Total Current Liabilities		2366.180	1950.026	2511.278
Net Current Assets		2844.870	2848.593	3286.777

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		5624.530	5644.939	5603.860

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	9087.400	9696.790	8736.256
		Other Income	147.700	320.444	53.293
		TOTAL (A)	9235.100	10017.234	8789.549

Less	EXPENSES
		Raw Material Consumed	8152.300	7503.619	7046.861
		Power & Fuel		0.000	0.000
		Manufacturing Expenses		1187.333	930.725
		Employee Cost		167.518	151.891
		Selling and Administrative Expenses		0.000	0.000
		Miscellaneous Expenses		7.304	36.753
		Amortization of FCMITDA		1.470	0.000
		Increase/(Decrease) in Finished Goods		620.262	(527.822)
		Excise Duty		(91.097)	52.774
		TOTAL (B)	8152.300	9396.409	7691.182

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1082.800	620.825	1098.367

Less	INTEREST & FINANCIAL EXPENSES (D)		763.400	566.146	369.086

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		319.400	54.679	729.281

Less/ Add	DEPRECIATION/ AMORTISATION (F)		146.800	115.749	81.192

	PROFIT BEFORE TAX (E-F) (G)		172.600	(61.070)	648.089

Less	TAX (H)		30.300	37.685	210.239

	PROFIT AFTER TAX (G-H) (I)		142.300	(23.385)	437.850

	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	NA	1620.882	1387.161
		Commission Earnings	NA	0.017	24.771
		Other Earnings	NA	0.000	0.000
	TOTAL EARNINGS		NA	1620.899	1411.932

	IMPORTS
		Raw Materials	NA	255.605	285.474
		Stores & Spares	NA	0.098	0.634
		Capital Goods	NA	282.693	112.984
		Others	NA	6.431	0.621
	TOTAL IMPORTS		NA	544.827	399.713

	Earnings Per Share (Rs.)
	- Basic		2.19	0.20	7.33
	- Diluted		2.19	0.17	5.40

QUARTERLY RESULTS

PARTICULARS	30.06.2010	30.09.2010	31.12.2010	31.03.2011
Type	1^st Quarter	2^nd Quarter	3^rd Quarter	4^th Quarter
Net Sales	2316.890	2839.920	2841.070	3647.750
Total Expenditure	2143.260	2645.580	2603.850	3360.670
PBIDT (Excl OI)	173.630	194.340	237.220	287.080
Other Income	1.030	13.330	14.650	6.880
Operating Profit	174.660	207.670	251.870	293.960
Interest	119.540	137.680	146.610	179.360
Exceptional Items	0.000	0.000	0.000	0.000
PBDT	55.120	69.990	105.260	114.600
Depreciation	38.850	39.730	42.450	45.070
Profit Before Tax	16.270	30.270	62.800	69.530
Tax	3.240	6.030	12.510	51.500
Provisions and contingencies	0.000	0.000	0.000	0.000
Profit After Tax	13.030	24.230	50.290	18.040
Extraordinary Items	0.000	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000	0.000
Net Profit	13.030	24.230	50.290	18.040

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.53	(0.23)	4.98

Net Profit Margin (PBT/Sales)	(%)	1.89	(0.63)	7.42

Return on Total Assets (PBT/Total Assets}	(%)	2.19	(0.81)	8.40

Return on Investment (ROI) (PBT/Networth)		0.08	(0.03)	0.31

Debt Equity Ratio (Total Liability/Networth)		2.58	2.86	2.86

Current Ratio (Current Asset/Current Liability)		2.17	2.46	2.31

LOCAL AGENCY FURTHER INFORMATION

HISTORY:

Subject is an established player in the power cable segment and among the largest cable manufacturing companies in India. Subject was incorporated in 1968 as a Partnership Company. The company's product portfolio includes Low Tension (LT) cables, control & instrumentation cables, specialty cables, rubber cables, flexible & house wires and High Tension (HT) cables addressing the myriad demands of a cross section of sectors. Subject is one of the few companies in country to manufacture speciality cables including braided cables, fire survival and Zero halogen cables, also which is an ISO 9001:2000 certified company. Subject has manufacturing facilities at New Delhi, Bhiwadi, Silvassa and Chopanki (Export Oriented Unit).

As of inception year itself, the company had started to manufacture Switchboard Cables for DOT. The manufacturing of Control, Instrumentation and Thermocouple Cables was begun in the year 1985. In 1993, manufacturing of PVC/XLPE Power cables up to 3.3 KV was added to existing portfolio of the company. During the year 1994, KEIIL had diversified into Stainless Steel drawings with Pilot Plant. After a year, in 1995, the company had issued its first Initial Public Offerings, went to Public. Subject had installed its major SSW plant in the year 1996 at Bhiwadi for the manufacturing purpose. Follow this, a year after, in 1997, formulated another plant at Bhiwadi for LT PVC / XLPE Cables. Subject had scaled up with manufacture of Rubber Cables up to 11 KV in the year 2001. As of 2002, the company had established Jelly Filled Telecom Cables (JFTC) Plant at Silvassa. In the year 2005, the company made upgrade function of JFTC Plant in Silvassa to manufacture existing cable range, the achievement was the successful re-engineering and conversion of the idle JFTC.

During the year 2006, to manufacture up to 33 kV HT XLPE Cables with Dry curing inert nitrogen gas and with triple extrusion (Single cross head) process, the company made expansion activities at Bhiwadi unit. The Company had Introduced ERP Baan S/W system in the organization to ensure Transparency and efficacy in the same year 2006. Subject had upgraded Bhiwadi Unit in the year 2007 to manufacture HT power cable up to 132 kV & LT cable. In the identical year of 2007, the company had received Corporate Governance Rating. Subject had commenced Engineering Procurement Construction operations in the same year 2007 and also secured prestigious orders across the country.

FINANCIAL RESULTS:

During the year the Company was able to improve its performance in terms of sales but the profitability was on the lower side. The improvement in sales was possible due to increase in turnover of cables from Rs. 7446.288 Millions in 2007-08 to Rs. 8757.771 Millions in 2008-09. Stainless Steel Wire Products contributed Rs.779.590 Millions in 2008-09 as compared to Rs. 1130.040 Millions in 2007-08. Winding, Flexible & House Wire contributed Rs.764.354 Millions in 2008-09 as against Rs.1044.063 Millions in 2007-08. Profit after tax is lower at Rs. 23.385 Millions during 2008-09 as compared to Rs. 437.850 Millions during 2007-08 on account of devaluation of inventories triggered by plummeting raw material prices combined with significant appreciation in the dollar vis-à-vis the rupee and higher interest costs. As a result, margins also dipped drastically on account of excessive volatility in the raw material prices of copper and aluminum and currency rate fluctuations. During the year, Company made repurchase of FCCBs at discount which resulted in profit of Rs.263.558 Millions included under head Other Income.

REVIEW OF OPERATIONS

In the year, Company made rapid strides on the new business development, domestic retail business, capacity expansion programme and new business segments front. The Company’s capabilities in the HT cables segment were vindicated with the award of three prestigious projects. The aggressive advertising campaign paid off with domestic retail sales for house wires surging in the year. Capacity expansion projects were completed within the stipulated time frame. Increasing geographic footprint continued to remain a focus area with the Company adding new fast-growing markets to its list of 40+countries. With the aim of further enhancing presence in both the domestic retail segment and international markets, the Company embarked on strengthening distribution network in both segments in a big way.

FOREIGN CURRENCY CONVERTIBLE BONDS (FCCB)

The Company raised USD 36,000,0000 (thirty six million) by way of allotment of 1% Foreign Currency Convertible Bonds (FCCB) due 2011 in the financial Year 2006-07. The Bond has a maturity of 5 years and one day. The conversion price has been reset downward at Rs. 71/- per share as per reset conversion clause in the terms and conditions of FCCB issue. Out of 7,200 bonds of face value of USD 5,000 each, 670 Bonds were converted into equity shares of face value of Rs. 2/- each during financial year 2007-08, 2,110 Bonds were re-purchased on March 31, 2009 in accordance with RBI Circular A.P. (DIR Series) Circular No. 39 dated December 8, 2008 read with ECB Guidelines. As on March 31, 2009, 4,420 bonds are outstanding for conversion.

Further, the Company has repurchased 800 Bonds on May 14, 2009 and 300 Bonds on June 12, 2009 in accordance with above circular of RBI. Hence, as on the date of this report only 3,320 Bonds are outstanding for conversion.

The Company has duly paid the semi-annual interest payable on outstanding Bonds on respective due dates. Unless, the Bonds have been previously redeemed, repurchased and cancelled or converted, the Company shall redeem the Bonds on 30 November 2011 (the “Maturity Date”) equal to the outstanding principal amount of a Bond together with redemption premium and accrued but unpaid interest thereon to the Maturity Date. All outstanding bonds on the date of redemption would be redeemed at a price of USD 7.277 per Bond, providing a Yield to Maturity (YTM) of 8.5 % compounded semi-annually. The bonds are listed and traded at Luxembourg Stock Exchange.

GLOBAL DEPOSITORY RECEIPTS (GDR)

The Global Depository Receipts (GDR) issued by the Company are listed and traded at Luxembourg Stock Exchange. As on March 31, 2009 total outstanding GDR is 500 representing same number of equity shares of Rs.2/- each.

EXPORT ORIENTED UNDERTAKING (EOU)

During the year, Company started Commercial production of HT Power Cable at its Export Oriented Undertaking

Plant at Chopanki, Dist. Alwar, Bhiwadi (Rajasthan) in March 2009.

FUTURE OUTLOOK

Gearing up for the pickup in industrial and infrastructure activity in the country, the Company plans to capitalize on the opportunities by leveraging its increased capacities, EHV cables manufacturing capabilities, its proven presence in the EPC space, its brand equity, visibility and recall for growing its domestic retail business and

lastly spreading its wings in newer international markets.

INCREASE IN PAID-UP SHARE CAPITAL

During the year, the Share Allotment Committee of the Board at its meeting held on September 22, 2009 allotted

129,100 equity shares of Rs.2/- each at an exercise price of Rs. 25.25/- to eligible employees / directors pursuant to application for exercise of Options under KEI ESOS 2006. Due to exercise of Employees Stock Options for allotment of equity shares the equity share capital of the Company increased from Rs. 121.617 Millions to Rs. 121.875 Millions consisting of 60,937,438 equity shares of Rs.2/- each.

AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 31^ST MARCH, 2011

(Rs. in millions)

PARTICULARS	Unaudited Results for	Audited Results for
PARTICULARS	Quarter ended 31.03.2011	Year Ended 31.03.2011
1. a) Net Sales / Income from Operations	3640.435	11620.179
b) Other Operating Income	7.314	25.455
c) Total Income	3647.749	11645.634
2. Total Expenditure
a) (lncrease)/Decrease in stock in trade & WIP	(85.023)	(676.606)
b) Consumption of raw materials/Project Materials	2921.671	9785.496
c) Purchase of Traded goods	2.951	4.306
d) Employees cost	80.470	275.386
e) Depreciation	45.071	166.100
f) Other Expenditure	440.579	1364.756
g)Total Expenditure	3405.719	10919.438
3. Profit from Operations before Other Income, Interest & Exceptional Items (1-2)	242.030	726.196
4. Other Income	6.884	35.882
5. Profit before Interest & Exceptional Items (3+4)	248.914	762.078
6. Interest & Finance Charges	179.384	583.210
7. Profit after Interest but before Exceptional Items (5-6)	69.530	178.868
8. Exceptional Items (net)	0.000	0.000
9. Profit (+) /Loss (-) from Ordinary activities Before Tax (7+8)	69.530	178.868
10. Tax Expenses	51.495	73.286
11. Net Profit (+) (Loss (-) from Ordinary activities After Tax (9-10)	18.035	105.582
12. Extraordinary items (net of tax expenses)	0.000	0.000
13. Net Profit (+) /Loss (-) for the period	18.035	105.582
14. Paid -Up Equity Share Capital (Face Value of Rs.2/- each)	133.875	133.875
15. Reserves excluding Revaluation Reserves	0.000	2245.313
16. Earning Per Share (Rs)
a) Basic	0.28	1.64
b) Diluted	0.23	1.30
17. Public Shareholding
- Number of Shares	39088972	39088972
- Percentage of Shareholding	58.40%	58.40%
18. Promoters and Promoter Group Shareholding
a) Pledged / Encumbered
- Number of shares	Nil	Nil
- Percentage of shares (as a % of the total shareholding of promoter and promoter group)	Nil	Nil
- Percentage of shares (as a % of the total share capital of the company)	Nil	Nil
b) Non - encumbered
- Number of shares	27848466	27848466
- Percentage of shares (as a % of the total shareholding of the Promoter and Promoter group)	100%	100%
- Percentage of shares (as a % of the total share capital of the company)	41.60%	41.60%

SEGMENT - WISE REVENUE, RESULTS AND CAPITAL EMPLOYED

(Rs. in millions)

PARTICULARS	Unaudited Results for	Audited Results for
PARTICULARS	Quarter ended 31.03.2011	Year Ended 31.03.2011
1. Segment Revenue ( net sales/ income from)
a) Segment - Cables	3390.656	10795.885
b) Segment - Stainless Steel Wire	233.329	821.673
c)Segment-Others	23.764	28.076
d) Unallocated Segment	(4.793)	2.931
Total	3642.956	11648.565
Less: Inter segment revenue	0.000	0.000
Net Sales / income from operations	3642.956	11648.565

2. Segment Results (Profit) (+)I Loss (-)before tax and interest from segment
a) Segment - Cables	308.570	1011.744
b) Segment - Stainless Steel Wire	9.866	21.062
c) Segment - Others	8.172	(5.592)
Total	326.608	1027.214

Less: I) Interest	179.384	583.210
II) Other un- allocable expenditure net off un- allocable income	--	--

Total Profit Before Tax	69.530	178.868

3. Capital Employed (Segment Assets - Segment Liabilities)
a) Segment - Cables	5466.166	5466.166
b) Segment- Stainless Steel Wire	276.656	276.656
c) Segment - Others	14.575	14.575
d) Unallocated Segment	(1164.472)	(1164.472)
Total	4592.925	4592.925

Notes:

1. The Board of Directors have recommended a dividend of Rs.0.20/- per share (i.e. @10%) for the financial year ended March 31,2011, subject to the approval of the shareholders at the ensuing AGM.

2. The Share Allotment Committee of the Board at its meeting held on Februray 25, 2011, allotted 30,00,000 equity shares to Promoters / Promoters Group upon conversion of equivalent number of Warrants. The initial Application money of Rs.28.000 millions, equivalent to 25% of Issue Price i.e. @ 7/- per Warrant, received on 40 Lacs Warrants issued in 2009-10 to the Bodies Corporate Other than Promoters , stands forfeited as per the terms and conditions of the issue due to non-exercise of conversion option and has been transferred to Capital Reserve.

3. 1%, FCCB amounting to USD 16.60 Million are outstanding as on March 31, 2011. Unless these FCCBs have been previously converted, repurchased and cancelled, the Company will redeem these bonds at 145.54% of the outstanding principal amount on November 30, 2011. Since, the redemption of bonds is contingent upon its non-conversion into equity shares and the probability of redemption cannot presently be ascertained, the Company has not provided for the proportionate premium on redemption for the quarter and up to the period ended March 31, 2011 Rs.18.391 millions and Rs.285.284 millions respectively. Premium on redemption shall be adjusted out of the Securities Premium Account.

4. The Company had repurchased and cancelled 1100 Foreign Currency Convertible Bonds (FCCB5) of the Face Value of USD 5,000 each, at a discount, which had resulted in a write back of Rs.111.183 millions during previous year, which has been reflected as Exceptional Item.

5. Pursuant to changes made in AS-Il vide Companies (Accounting Standard) Amendment Rules, 2009, during the quarter! year foreign exchange difference arising on long term foreign currency monetary items- FCCBs and Foreign Currency Term Loan have been adjusted with the cost of fixed assets and in other cases the same has been adjusted in FCMITDA. Exchange fluctuation on ECB has been fully transferred to FCMITDA.

6. The number of investor complaints pending at the beginning of the quarter were NIL. During this quarter no complaint was received.The balance NIL pending at the end of the quarter.

7. The above results reviewed by the Audit Committee, have been approved and taken on record by the Board of Directors at their meeting held on May 21, 2011.

8. Previous year/periods figures have been regrouped / reclassified wherever necessary.

STATEMENT OF ASSETS AND LIABILITIES

(Rs. in millions)

Particulars	Audited 31.03.2011
Shareholders Fund
a) Capital	133.875
b) Amount Received against Warrants	0.000
c) Reserve and Surplus	2245.313

Loan Funds	3618.651

Foreign currency monetary item translation difference account (FCMITDA)	0.000
Deferred Tax (Net)	36.682

Total	6034.521

Fixed Assets (Net)	3119.978

Investments	30.817

Current Assets, Loans and Advances
a) Inventories	2822.649
b) Sundry Debtors	2635.617
c) Cash and Bank Balances	123.325
d) Other Current Assets	28.655
e) Loans and Advances	526.119
Less : Current Liabilities and Provisions

a) Liabilities	3215.529
b) Provisions	37.110
Total	6034.521

FIXED ASSETS:

Land
Land Leasehold
Building
Plant and Machinery
Electrical Fitting and Equipment
Furniture, Fixture and Office Equipment
Vehicles
Software

WEBSITE DETAILS:

GENESIS

1968: Established as a Partnership Company.

1968: Manufacturing of Switchboard Cables for DOT starts.

1985: Manufacturing of Control, Instrumentation and Thermocouple Cables begins.

1993: Manufacturing of PVC/XLPE Power cables up to 3.3 KV added to existing portfolio.

EVOLUTION

1994: Diversified into Stainless Steel drawings with Pilot Plant

1995: Launch of the First IPO, went Public.

1996: Installation of Major SSW plant at Bhiwadi

1997: Installation of another plant at Bhiwadi for LT PVC / XLPE Cables.

2001: Scaling up with manufacture of Rubber Cables up to 11 KV.

2002: Established JFTC Plant at Silvassa

2005: Upgraded JFTC Plant in Silvassa to manufacture existing cable range - Rebalancing Act

2006: Expansion of Bhiwadi unit to manufacture up to 33 kV HT XLPE Cables with Dry curing inert nitrogen gas and with triple extrusion (Single cross head) process.

2006: Introduced ERP Baan S/W system in the organization to ensure Transparency and efficacy.

2007: Upgrading Bhiwadi Unit to manufacture HT power cable up to 132 kV and LT cable.

2007: Proud recipient of Corporate Governance Rating

2007: Setting up of 100% EOU at Chopanki

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.44.43
UK Pound	1	Rs.71.90
Euro	1	Rs.63.41

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.

MIRA INFORM REPORT

2026.820

2600.690

50.770

136.060

396.710

5211.050

2339.460

26.720

2366.180

2844.870

4.98

7.42

8.40

0.31

2.86

2.31

Unit