MIRA INFORM REPORT

Report Date :

30.03.2012

IDENTIFICATION DETAILS

Name :	DELTON CABLES LIMITED
Registered Office :	Delton House, 4801 Bharat Ram Road, 24 Darya Gunj, New Delhi – 110002
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	26.09.1964
Com. Reg. No.:	004255
Capital Investment / Paid-up Capital :	Rs.28.800 Millions
CIN No.: [Company Identification No.]	L31300DL1964PLC004255
TAN No.: [Tax Deduction & Collection Account No.]	DELD00125G DELD06408D
PAN No.: [Permanent Account No.]	AAAFD2403L AAACD2482Q
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturing and Marketing of Wires and Cables, PVC Compound and Jelly Filled Telecommunication Cables.
No. of Employees :	1200 [Approximately]

RATING & COMMENTS

MIRA’s Rating :

Ba (51)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 1000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having fine track. Financial position of the company appears to be sound. Trade relations are reported as fair. Payments are reported to be regular and as per commitments. The company can be considered normal for good 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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

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

LOCATIONS

Registered Office :	Delton House, 4801 Bharat Ram Road, 24 Darya Gunj, New Delhi – 110002, India
Tel. No.:	91-11-23273905/ 08
Fax No.:	91-11-23280375/ 23272178
Telex	031-63357 DCCL-IN
Cable	DELWIRE
E-Mail :	shares@deltoncables.com delhi@delton.wiprobt.ems.vsnl.net.in dcl@deltoncables.com
Website :	http://www.deltoncables.com
Factory 1 :	17/4, Mathura Road, Faridabad-121002, Haryana, India
Tel No.:	91-129-2288225
Fax No.:	91-129-2223998
Email:	dclfbd@deltoncables.com
Factory 2 :	24, Shivaji Marg, New Delhi-110015, India
Tel No.:	91-11-25928280/41427377
Fax No.:	91-11-25928037
Email:	dclngr@deltoncables.com
Factory 3 :	70^th Milestone, Delhi-Jaipur Highway, Dharuhera-122106, Haryana, India
Tel No.:	91-1274-242229/242296
Fax No.:	91-1274-242294
Email:	dcldhr@deltoncables.com
Factory 4 :	C-22/23, Sector 57, Noida-201301, Uttar Pradesh, India
Tel No.:	91-120-4248987
Email:	dclnoida@deltoncables.com
Branch Offices :	Located At: · Mumbai · Kolkata · Chennai · Bangalore · Kochi

DIRECTORS

As on 31.03.2011

Name :	Mr. V.K. Gupta
Designation :	Chairman and Managing Director
Name :	Mr. Vivek Gupta
Designation :	Joint Managing Director
Name :	Mr. Vijay Kumar Goel
Designation :	Director
Name :	Mr. M. P. Mehrotra
Designation :	Director
Name :	Mr. A. Karati
Designation :	Director
Name :	Mr. B.B. Chadha
Designation :	Director
Name :	Mrs. Rakesh Verma
Designation :	Director

KEY EXECUTIVES

Name :	Mr. B.K. Jha
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.12.2011

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	610,447	21.20
Bodies Corporate	1,372,955	47.67
Any Others (Specify)	139,884	4.86
Trusts	100	-
Directors/Promoters & their Relatives & Friends	139,784	4.85
Sub Total	2,123,286	73.73
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	2,123,286	73.73
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	956	0.03
Sub Total	956	0.03
(2) Non-Institutions
Bodies Corporate	70,395	2.44
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	575,367	19.98
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	98,946	3.44
Any Others (Specify)	11,050	0.38
Clearing Members	224	0.01
Non Resident Indians	3,716	0.13
Hindu Undivided Families	7,110	0.25
Sub Total	755,758	26.24
Total Public shareholding (B)	756,714	26.27
Total (A)+(B)	2,880,000	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)	2,880,000	-

BUSINESS DETAILS

Line of Business :

Manufacturing and Marketing of Wires and Cables, PVC Compound and Jelly Filled Telecommunication Cables.

Products :

PRODUCT DESCRIPTION	ITEM CODE NO.
Wire and Cables	8544.00
Jelly Filled Telecommunication Cables	854400.19

PRODUCTION STATUS [AS ON 31.03.2011]

Particulars	Unit	Installed Capacity**	Actual Production
Wires and Cables	MCM	3003	270
Switch Gear	NO’S	3000000	151300

NOTE:

1. * Particulars regarding licence capacity have not been given since the same has been delicenced.

2. ** Installed capacity is taken as certified by the management.

GENERAL INFORMATION

No. of Employees :

1200 [Approximately]

Bankers :

· Canara Bank

· Punjab National Bank

· Barclays Bank

Facilities :

Secured Loan	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
FROM BANKS
Cash Credit (including working capital demand loan)	300.555	290.118
Bill Discounting	46.082	10.242
Long term loan	10.129	14.804
Vehicle Loans	3.437	4.248
FROM OTHERS
Vehicle Loans	3.157	4.994
Total	363.360	324.406
Unsecured Loan
Loan From
Banks	0.000	1.158
Others	0.964	1.362
Total	0.964	2.520

NOTE:

1) Loan from Bank and others are secured against personal guarantees of the Directors. Amount repayable within one year Rs. 0.432 Million (Previous Year : Rs. 1.557 Millions)

Banking Relations :	--
Auditors :
Name :	S. R. Dinodia and Company Chartered Accountants
Address :	C-37 Connaught Place, New Delhi – 110001, India
Memberships :	Confederation of Indian Industry
Associates :	· Delton International Limited · Vishranti Trading Enterprises Limited · Saneh Industrial Investments Limited · B & M Trading and Investment Company Limited · Senor Microwave Private Limited · Ram Kumar Gupta and Sons Limited · Delton Cable Company · Srimati Shanti Devi Charitable Trust · Abaskar Constructions (Private) Limited · Element Arts (Private) Limited · VIGA Trade Solutions (Private) Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
5400000	Equity Shares	Rs.10/- each	Rs.54.000 Millions
40000	10% Cumulative Convertible Preferences Shares	Rs.100/- each	Rs.4.000 Millions
20000	9.8% Redeemable Cumulative Preferences Shares	Rs.100/- each	Rs.2.000 Millions
	Total		Rs.60.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2880000	Equity Shares	Rs.10/- each	Rs.28.800 Millions

NOTE: The above includes 399,800 Equity Shares of Rs.10 each allotted as fully paid Bonus shares by capitalization of General Reserve.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		28.800	28.800	28.800
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		221.827	215.657	200.900
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		250.627	244.457	229.700
LOAN FUNDS
1] Secured Loans		363.360	324.406	362.300
2] Unsecured Loans		0.964	2.520	25.400
TOTAL BORROWING		364.324	326.926	387.700
DEFERRED TAX LIABILITIES		7.160	7.555	13.900
TOTAL		622.111	578.938	631.300
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		120.281	125.370	136.700
Capital work-in-progress		3.359	5.685	03.800
INVESTMENT		0.047	0.047	0.100
DEFERREX TAX ASSETS		0.000	0.000	6.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	359.762	307.557	294.000
	Sundry Debtors	372.117	347.295	429.200
	Cash & Bank Balances	48.481	40.104	38.400
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	110.867	68.405	72.000
Total Current Assets		891.227	763.361	833.600
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	187.406	191.231	282.759
	Other Current Liabilities	197.018	114.128	53.541
	Provisions	8.379	10.166	12.600
Total Current Liabilities		392.803	315.525	348.900
Net Current Assets		498.424	447.836	484.700
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		622.111	578.938	631.300

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1244.750	1412.034	1642.008
		Other Income	15.348	3.426	26.482
		TOTAL (A)	1260.098	1415.460	1668.490
Less	EXPENSES
		Manufacturing & Other Expenses	1207.460	1285.072	1487.093
		Purchase of Trading Goods	2.271	11.545	10.341
		Increase/(Decrease) in stock	(45.530)	7.263	40.339
		TOTAL (B)	1164.201	1303.880	1537.773
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		95.897	111.580	130.717
Less	FINANCIAL EXPENSES (D)		65.758	69.448	89.246
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		30.139	42.132	41.471
Less/ Add	DEPRECIATION/ AMORTISATION (F)		14.840	13.953	14.289
	PROFIT BEFORE TAX (E-F) (G)		15.299	28.179	27.182
Less	TAX (H)		5.555	9.808	9.682
	PROFIT AFTER TAX (G-H) (I)		9.744	18.371	17.500
Less	APPROPRIATIONS
		Proposed Dividend	2.880	2.880	2.880
		Tax on Dividend	0.467	0.489	0.489
	BALANCE CARRIED TO THE B/S		6.397	15.002	14.131
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	7.471	6.501	NA
	IMPORTS
		Raw Materials	105.720	80.301	27.478
		Capital Goods	0.000	0.000	1.505
	TOTAL IMPORTS		105.720	80.301	28.983
	Earnings Per Share (Rs.)		3.38	6.38	6.08

QUARTERLY RESULTS

PARTICULARS	30.06.2011	30.09.2011	31.12.2011
Type	1^st Quarter	2^nd Quarter	3^rd Quarter
Net Sales	296.100	329.500	352.100
Total Expenditure	274.400	305.000	326.200
PBIDT (Excl OI)	21.700	24.500	25.900
Other Income	2.200	0.000	0.500
Operating Profit	23.900	24.500	26.400
Interest	15.000	15.100	15.800
PBDT	8.900	9.400	10.600
Depreciation	3.800	3.800	3.800
Profit Before Tax	5.100	5.6000	6.800
Tax	1.500	1.700	2.300
Profit After Tax	3.600	3.900	4.500
Net Profit	3.600	3.900	4.500

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.77	1.29	1.04
Net Profit Margin (PBT/Sales)	(%)	1.23	1.99	1.65
Return on Total Assets (PBT/Total Assets}	(%)	1.51	3.17	2.80
Return on Investment (ROI) (PBT/Networth)		0.06	0.11	0.11
Debt Equity Ratio (Total Liability/Networth)		3.02	2.62	3.20
Current Ratio (Current Asset/Current Liability)		2.27	2.41	2.38

LOCAL AGENCY FURTHER INFORMATION

PERFORMANCE:

During the year, the company has achieved a turnover of Rs. 1343.576 millions as against Rs. 1509.656 millions in the previous year. The Net Profit before taxation is Rs. 15.299 millions as against Rs. 28.178 millions in the previous year. The performance for the year has been effected due to market condition for the industry.

FUTURE OUTLOOK:

The world economy is gradually coming out of the global recession. During 2010-11, the Indian economy saw acceleration in the pace of its growth due to a rebound in rural income with increase in agricultural production and a good industrial and service sector growth. The GDP growth projection for 2011-2012 is in excess of 8%.

Indian Wire and Cable industry will be on growing track in financial year 2011-12. However intense competition in market place and high volatility in the prices of key raw material will be the challenges to be met. The Company has huge experience in manufacturing of wires and cables and ready to face the challenges. The Company is making endeavour to explore new customers in infrastructure, power and communication sectors and expect batter results in ensuing year.

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED ON JUNE 30, 2011

Rs. in Millions

Particular	Quarter Ended
	30.06.2011
Gross Sales	316.600
Less : Excise Duty	21.100
Net Sales	295.500
Other Operating Income	0.600
Total Income	296.100
Expenditures
(Inc)/Dec in stock-in-trade	(12.200)
Consumption of Raw Material	233.600
Purchase of Traded goods	0.000
Power & Fuel	7.700
Employee cost	25.100
Depreciation	3.800
Other Expenditures	20.200
Total	278.200
Profit from Operations before Other Income Interest & Exceptional Items	17.900
Other Income	2.200
Profit before Interest & Exceptional Items	20.100
Interest	15.000
Profit after Interest but before Exceptional Items	5.100
Exceptional Items	0.000
Profit from ordinary activities before tax	5.100
Tax Expenses	1.500
Net Profit from Ordinary activities after tax	3.600
Prior Period Adjustment	0.000
Extraordinary Items	0.000
Net Profit for the period	3.600
Paid up Equity Share Capital (Face Value per share Rs. 10/-)	28.800
Reserve (Excluding Revaluation Reserve)	--
Earning per share for the period/year (Rs.)
Basic and diluted before extra ordinary items	1.25
Basic and diluted after extra ordinary items	1.25
Public Shareholding
Number of Shares	757677
Percentage of Shareholding	26.31
Promoters and Promoter group shareholding
Pledged/Encumbered
No. of Shares	Nil
Percentage of shares (as a % of the total share holding of Promoter & Promoter group)	Nil
Percentage of shares (as a % of the total share capital of the company)	Nil
Non Encumbered
No. of Shares	2122323
Percentage of shares (as a % of the total share holding of Promoter & Promoter group)	100.00
Percentage of shares (as a % of the total share capital of the company)	73.69

NOTES:

1. The above financial results have been approved and taken on record by the Board of Directors at their meeting held on 8th August, 2011.

2. Number of investors' complaints received and disposed off during the three months ending June 30, 2011 Beginning - Nil, Received -Two, Disposed off- Two, Pending - Nil.

3. The Auditors have conducted a Limited Review of the above financial results for the quarter ended

4. The corresponding Previous quarter(s) figures have been regrouped, wherever necessary.

5. The Company's Business activities do not qualify as a reportable segment in terms of Accounting Standard-17 "Segmental Reporting" under Companies Accounting Standard Rules, 2006.

FIXED ASSETS:

TANGIBLE ASSETS:

· Land Freehold

· Building

· Plant and Machinery

· Computer

· Furniture and Fittings

· Office Equipments

· Vehicles

INTANGIBLE ASSETS:

· Goodwill and Trade Mark

· Software

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.51.15
UK Pound	1	Rs.81.41
Euro	1	Rs.68.22

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		51

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.