MIRA INFORM REPORT

Report Date :

02.09.2014

IDENTIFICATION DETAILS

Name :	FINOLEX CABLES LIMITED
Registered Office :	26/27, Mumbai-Pune Road, Pimpri, Pune – 411 018, Maharashtra
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	05.06.1967
Com. Reg. No.:	11-016531
Capital Investment / Paid-up Capital :	Rs.305.900 millions
CIN No.: [Company Identification No.]	L31300MH1967PLC016531
TAN No.: [Tax Deduction & Collection Account No.]	PNEF00515E
Legal Form :	Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer of electrical and telecommunication cables.
No. of Employees :	1546 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (67)

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavorable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Maximum Credit Limit :	USD 1103400000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is a well-established and reputed company having a fine track record. Financial position of the company seems to be sound. Trade relations are reported as fair. Business is active. Payment terms are reported to be regular. The company can be considered good 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 – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
India	A1	A1

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

INDIAN ECONOMIC OVERVIEW

N E W S

As per the latest IMF study, the total weigh of emerging markets in the GDP of the world on a purchasing power parity basis has seen a sizeable shift. It highlights how as against 51 % in 2005, the emerging economies now account for close to 56 % of the global purchasing power GDP as per the latest survey. And with the emerging economies growing at a faster rate than their developed counterparts, there are every possibility that the their share goes up further in the coming years.  China may surpass the US over the next few years.

Politics and economics are very intricately connected. They tend to influence each other in ways that could be very complex and far-reaching. The prospects of the India’s economy have been seriously compromised due to political corruption. High inflation, poor standard of living are to a great extent a result of rampant corruption in the country. China on the other hand, seems to be facing diametrically opposite challenge. American hedge fund manager Jim Chanos has been keenly following the political and economic development in the dragon economy and has figured out something that is quite worrying. He is of the view that the Chinese economy could be heading toward trouble on account of new Chinese President Xi Jingping’s very aggressive anti-corruption drive. Chanos believes tat many things such as apartment sales, luxury products, etc. were largely bought with dirty money. And it is now beginning to impact consumption. This may indeed be bad news for an economy that is struggling to transition from an investment-driven export-oriented economy to a domestic consumption-driven economy.

A study published by Firstpost has revealed that asset classes like real estate and equities were the biggest beneficiaries of the liberalization policies.  A firm called Ciane Analytics studied returns from assets including equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate outperformed every other asset classes during the 23-year period with an annualized return of 20 % ! Equities came in second with annualized return of 15.5 % ! However, while these returns may seem mouthwatering, the fact is that the return from equities adjusted for inflation came down to just 7.1 %.

Some brief news are as under

. R-Power to buy Jaypee’s hydro assets

. Investors await justice in NSEL case

. India seeks MFN status from Pakistan ahead of meeting

. Ukrain’s clashes with rebels hinder MH17 crash investigation

. India exploring merger of state-owned hydro PSUs

..Higher costs weigh down profit growth to slowest in 9 quarters

..Wal-Mart to expand wholesale business in India

. GMR group moves to strengthen balance sheet

. Central Bank to sell 4 % stake to Life Insurance Corporation

. Tata Chemicals plans to raise up to Rs 10000 mn.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long Term Rating: AA+
Rating Explanation	High degree of safety and very low credit risk.
Date	October 16, 2013

Rating Agency Name	CRISIL
Rating	Short Term Rating: A1+
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	October 16, 2013

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2014.

INFORMATION DENIED BY

Name :	Mr. Pravin Kulkarni
Designation :	Senior Finance Officer

LOCATIONS

Registered Office/ Corporate Office/ Factory 1 (Electrical Cables) :	26/27, Mumbai-Pune Road, Pimpri, Pune – 411 018, Maharashtra, India
Tel. No.:	91-20-27475963 (15 lines)/ 27506200
Fax No.:	91-20-27472239/ 27470344/ 27472224
E-Mail :	info@finolex.com sales@finolex.com dsilva_rg@finolex.com pudlik@finolex.com sv_joshi@finolex.com pravin_kulkarni@finolex.com
Website :	http://www.finolex.com
Factory 2 :	Optic Fibre Division Urse Taluka Maval, District Pune – 410 506, Maharashtra, India
Tel. No.:	91-2114-237003/ 4/ 5/ 6/ 7
Fax No.:	91-2114-237009
E-Mail :	sunil@finolex.com
Factory 3 :	Switches Division Gat No.344, Village Urse, Taluka Maval, District Pune – 410 506, Maharashtra, India
Tel. No.:	91-2114- 237021-2-3
Fax No.:	91-2114-237006
E-Mail :	MV_Rangwani@finolex.com
Factory 4 :	Goa (Electrical and Communication Cables) 117/L118, Verna Industrial Estate, Verna Salcette, Goa – 403 722, India
Tel. No.:	91-832-278202/ 3/ 4
Fax No.:	91-832-2783909
E-Mail :	ratnakar_barve@finolex.com
Factory 5 :	Goa (CCC Rod) S263/2A, Panjim - Belgaum Road, Usgaon -Tisk, Ponda Goa – 403 406, India
Tel. No.:	91-832-2344376/ 8/ 9
Fax No.:	91-832-2344140
E-Mail :	knarayanan@finolex.com
Factory 6 :	Urse (Electrical and Communication Cables) Taluka Maval, District Pune – 410 506, Maharashtra, India
Tel. No.:	91-2114-237026/ 27
Fax No.:	91-2114-237025
E-Mail :	pm_deshpande@finolex.com
Factory 7 :	Lighting Division (CFL) / Sheets Division Plot No.399, Village - Urse, Taluka - Maval, District Pune – 410 506, Maharashtra, India
Tel. No.:	91-2114-237035/ 237024
Fax No.:	91-2114-237025
E-Mail :	br_kambale@finolex.com svdeshpande@finolex.com
Factory 8 :	HVPC Urse, Pune Gat No.343, Village Urse, Taluka Maval, District Pune – 410 506, Maharashtra, India
Tel. No.:	91-2114-237001-5
Fax No.:	91-2114-237006
E-Mail :	amit_bakhle@finolex.com
Factory 9 :	Goa (Communication Cables) Plot No. L123/9A, Verna Industrial Estate, Verna Salcette, South Goa, India
Tel. No.:	91-832-2782002/ 3/ 4
Fax No.:	91-832-2783909
E-Mail :	YKG@finolex.com
Factory 10 :	Roorkee Plot Nos. K-1 and K-2, AIS Industrial Estate, Jatherdeva Hoond, Manglaur, Roorkee, Taluka Haridwar – 247 667, Uttarakhand, India
Tel. No.:	91-1332-224069
Tele Fax No.:	91-1332-224068
E-Mail :	yyredkar@finolex.com
Factory 10 :	Roorkee Plot Nos. K-1 and K-2, AIS Industrial Estate, Jatherdeva Hoond, Manglaur, Roorkee, Taluka Haridwar – 247 667, Uttarakhand, India
Tel. No.:	91-1332-224069
Tele Fax No.:	91-1332-224068
E-Mail :	yyredkar@finolex.com
Branch Office :	Located at: · Ahmadabad · Bangalore · Bhubaneshwar · Chandigarh · Chennai · Coimbatore · Goa · Guwahati · Indore · Jaipur · Kochi · Kolkata · Mumbai · New Delhi · Raipur · Secunderabad · Lucknow · Dharwad

DIRECTORS

As on: 31.03.2013

Name :	Mr. P.P Chhabria
Designation :	Chairman
Address :	9, ICS Colony, Ganeshkhind Road, Pune – 411 007, Maharashtra, India
Name :	Dr. D.K. Chhabria
Designation :	Executive Chairman
Name :	Dr. H.S. Vachha
Designation :	Director
Name :	Mr. Atul C. Choksey
Designation :	Director
Name :	Mr. Sanjay K. Asher
Designation :	Director
Name :	Mr. P.G. Pawar
Designation :	Director
Name :	Mr. S.B Ravi (Pandit)
Designation :	Director
Name :	Mr. Pradeep R. Rathi
Designation :	Director
Name :	Mr. Adi. J. Engineer
Designation :	Director
Name :	Dr. V.G. Pai
Designation :	Director
Name :	Mr. M. Viswanathan
Designation :	Director Finance and Chief Financial Officer

KEY EXECUTIVES

Name :	Mr. R.G. D’Silva
Designation :	Company Secretary and Vice President (Legal)
Name :	Mr. Pravin Kulkarni
Designation :	Senior Finance Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.06.2014

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	7875300	5.15
Bodies Corporate	46966170	30.71
Sub Total	54841470	35.86
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	54841470	35.86
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	14917925	9.75
Financial Institutions / Banks	2925479	1.91
Foreign Institutional Investors	13226726	8.65
Sub Total	31070130	20.32
(2) Non-Institutions
Bodies Corporate	25774455	16.85
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 million	22354881	14.62
Individual shareholders holding nominal share capital in excess of Rs.0.100 million	12811984	8.38
Sub Total	60941320	39.85
Total Public shareholding (B)	92011450	60.16
Total (A)+(B)	146852920	96.02
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	6086425	3.98
Sub Total	6086425	3.98
Total (A)+(B)+(C)	152939345	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of electrical and telecommunication cables.

Products :

Item Code No. (ITC Code)	Product Description
85444919	Jelly Filled Telephone Cables
8544	Electrical Cables – Light Duty
8544	Electrical Cables – Heavy Duty
900110	Fibre Optic Cable
854420	Co-Axial Cables
854459	LAN Cables
3920	PVC Sheets
7407.10	Continuous Cast Copper Rods

PRODUCTION STATUS [AS ON 31.03.2011]

Particulars	Unit	Installed Capacity	Actual Production
Electrical Cables	TCKM	2467.97	1241.83 #
Communication Cables Optic Fibre Cables	KM	58000.00	37116.78
Other Communication Cables	TCKM	5648.00	634.61
PVC Sheets and Accessories	MT	2100.00	1331.70
Fibre	KM	150000.00	779736.33 *
Poly coated FRP Rod	KM	24000.00	19268.48
Continuous Cast Copper Rods	MT	60000.00	33419.75 @

Notes:

Installed capacities are certified by the Managing Director and relied upon by the Auditors

• # Equivalent tonnage 32,297 MT
• * Includes captive consumption of 668,730 Kms
• @ captive consumption of 21,906,538MT and Job Work done 0.00

5,000 TCKM of JFTC Capacity is interchangeable with 332 TCKM of Electrical Cable capacity

GENERAL INFORMATION

No. of Employees :

1546 (Approximately)

Bankers :

• Central Bank of India
• Bank of Baroda
• BNP Paribas
• Citibank N.A.
• Corporation Bank
• HDFC Bank Limited
• ICICI Bank Limited.
• Standard Chartered Grindlays Bank
• State Bank of India
• The Bank of Nova Scotia
• Bank of India
• Standard Chartered Bank

Facilities :

Secured Loan	As on 31.03.2014	As on 31.03.2013
	(Rs. In Millions)
LONG TERM BORROWINGS:
Bonds / Debentures 9.10% ‘M’ Series Non-Convertible Debentures (500 Debentures of Rs. 1000000 each)	500.000	500.000
Term Loan From Bank
Indian Rupee Loan	750.000	750.000
Foreign Currency Loan	0.000	180.900
Total	1250.000	1430.900

Notes:

LONG TERM BORROWINGS

Particulars	Tenor	Amount (Rs. in Million)	Repayment schedule
a) Debentures–M Series	5 years	500.000	Lumpsum on 24^th August, 2015
b) Rupee Term Loan from Bank	6 years	750.000	3 equal installments of Rs.250.000 millions each on 31^st December 2015, 31^st December 2016, 31^st December 2017
c) Foreign Currency Loan from Bank	5 years	199.700	2 equal installments of Rs.185.950 millions each on 6^th January 2014 and 6^th January 2015
d) Deferred Sales Tax Loan	--	20.600	Repayable in installments, last such installment being on 26^th April 2020

Security
a) Debentures–M Series	First pari-passu charge on Plant and Machinery and the immovable properties of plant at Verma Industrial Estate, Goa Division and premises situated at Ahmedabad and Hyderabad.
b) Rupee Term Loan from Bank	Second / Subservient charge on the block of assets of the plant at Roorkee.
c) Foreign Currency Loan from Bank	Hypothecation of movable fixed assets located at CFL, HVPC plant.

Banking Relations :	--
Auditors :
Name :	B.K. Khare and Company Chartered Accountants
Address :	706/707, Sharda Chambers, 7^th Floor, New Marine Lines, Mumbai – 400 020, Maharashtra, India
Tel. No.:	91-22-22000607/7318/6360 91-22-66315835/36
Fax No.:	91-22-22003476
E-Mail :	info@bkkhareco.com
Cost Auditor :
Name :	Joshi Apte and Associates Cost Accountants
Solicitors :	Crawford Bayley and Company
Associates/Subsidiaries :	Finolex Industries Limited Finprop Advisory Services Limited Finolex Plasson Industries Limited
Joint Venture :	· Finolex J-Power System Private Limited · Corning Finolex Optical Fibre Private Limited
Enterprises over which Key Management Personnel and their Relatives exercise significance influence :	· Orbit Electricals Private Limited · Finolex Infrastructure Limited · Magnum Machines Limited

CAPITAL STRUCTURE

As on: 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
235000000	Equity Shares	Rs.2/- each	Rs.470.000 millions
15000000	Unclassified Shares	Rs.2/- each	Rs.30.000 millions
	Total		Rs.500.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
152939345	Equity Shares	Rs.2/- each	Rs.305.900 millions

Reconciliation of the shares outstanding at the beginning and at the end of the reporting period

Equity Shares	As on 31.03.2014
	Number	Amount (Rs in Millions)
Balance at the beginning of the period	152939345	305.900
Issued during the year	--	--
Outstanding at the end of the year	152939345	305.900

Terms / rights attached to Equity Shares

The Company has only one class of Equity Shares having a par value of Rs.2 per share. Each holder of Equity Shares is entitled to one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of Interim dividend.

During the year ended 31^st March 2014, the amount of per share dividend recognised as distributions to the equity shareholders is Rs.1.60 per share.

In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity Shares held by the shareholders.

Shares held by holding/ultimate holding company and/or their subsidiaries/associates

There are no shares held by holding/ultimate holding company and/or their subsidiaries/associates.

Details of shareholders holding more than 5% shares in the Company

	As on 31.03.2014
Equity Shares	Number of shares	%
Finolex Industries Limited	22187075	14.50
Life Insurance Corporation of India	-	-
Orbit Electricals Private Limited	46956120	30.70

Aggregate number of Bonus Shares issued, Shares issued for consideration other than cash and Shares bought back during the period of five years immediately preceding the reporting date.

There are no Bonus Shares issued, Shares issued for consideration other than cash and Shares bought back during the period of five years immediately preceding the reporting date.

Terms of securities issued with conversion option into Equity / Preference Shares

There are no securities issued with conversion option into Equity/Preference Shares

FINANCIAL DATA

[All figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	305.900	305.900	305.900
(b) Reserves & Surplus	10727.800	8937.300	7698.400
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	11033.700	9243.200	8004.300
(3) Non-Current Liabilities
(a) long-term borrowings	1266.900	1451.500	1162.200
(b) Deferred tax liabilities (Net)	295.200	344.700	326.100
(c) Other long term liabilities	17.900	13.600	1.800
(d) long-term provisions	35.300	568.800	342.100
Total Non-current Liabilities (3)	1615.300	2378.600	1832.200
(4) Current Liabilities
(a) Short term borrowings	0.000	171.100	383.200
(b) Trade payables	526.800	632.900	563.800
(c) Other current liabilities	1590.400	1391.200	1189.900
(d) Short-term provisions	873.500	224.400	187.100
Total Current Liabilities (4)	2990.700	2419.600	2324.000
TOTAL	15639.700	14041.400	12160.500
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	4958.000	4120.700	4291.900
(ii) Intangible Assets	0.400	0.400	0.400
(iii) Capital work-in-progress	107.000	357.300	120.200
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	2260.800	2173.900	2188.800
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	47.700	166.500	40.200
(e) Other Non-current assets	264.900	190.800	121.000
Total Non-Current Assets	7638.800	7009.600	6762.500
(2) Current assets
(a) Current investments	1770.600	1067.000	183.300
(b) Inventories	3524.000	3296.300	2811.400
(c) Trade receivables	1451.700	1496.500	1140.900
(d) Cash and cash equivalents	648.600	398.100	490.000
(e) Short-term loans and advances	605.100	771.800	772.400
(f) Other current assets	0.900	2.100	0.000
Total Current Assets	8000.900	7031.800	5398.000
TOTAL	15639.700	14041.400	12160.500

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	23590.400	22706.800	20641.600
		Other Income	483.500	241.700	319.900
		TOTAL (A)	24073.900	22948.500	20961.500
Less	EXPENSES
		Cost of Materials Consumed	17759.300	17131.600	15769.500
		Purchases of Stock-in-Trade	112.100	58.000	24.000
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(215.300)	(296.800)	126.900
		Employees benefits expense	848.300	845.900	694.800
		Other expenses	2604.100	2671.500	2234.600
		Exceptional Items - Income / (Expenses)	103.800	(230.100)	363.600
		TOTAL (B)	21212.300	20180.100	19213.400
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		2861.600	2768.400	1748.100
Less	FINANCIAL EXPENSES (D)		144.800	133.800	260.700
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		2716.800	2634.600	1487.400
Less	DEPRECIATION/ AMORTISATION (F)		484.300	466.300	394.700
	PROFIT BEFORE TAX (E-F) (G)		2440.100	1708.100	1092.700
Less	TAX (H)		363.300	255.400	110.800
	PROFIT AFTER TAX (G-H) (I)		2076.800	1452.700	981.900
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2987.600	1534.900	795.200
Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	0.000	100.000
		Dividend	0.000	0.000	122.400
		Tax on Dividend	0.000	0.000	19.800
					0.000
	BALANCE CARRIED TO THE B/S		5064.400	2987.600	1534.900
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	494.400	486.900	483.900
	TOTAL EARNINGS		494.400	486.900	483.900
	IMPORTS
		Raw Materials	2035.800	1263.000	731.900
		Stores & Spares	20.900	21.000	19.600
		Capital Goods	280.800	93.700	215.400
	TOTAL IMPORTS		2337.500	1377.700	966.900
	Earnings Per Share (Rs.)		13.60	9.50	6.40

QUARTERLY / SUMMARISED RESULTS

Particulars (Rs.Millions)	Jun 2014
Audited / UnAudited	UnAudited
Net Sales	5720.100
Total Expenditure	5160.000
PBIDT (Excl OI)	560.100
Other Income	75.300
Operating Profit	635.400
Interest	32.600
Exceptional Items	0.000
PBDT	602.800
Depreciation	138.900
Profit Before Tax	463.900
Tax	117.100
Provisions and contingencies	0.000
Profit After Tax	346.800
Extraordinary Items	0.000
Prior Period Expenses	0.000
Other Adjustments	0.000
Net Profit	346.800

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
PAT / Total Income	(%)	8.63	6.33	4.21
Net Profit Margin (PBT/Sales)	(%)	10.34	7.52	5.26
Return on Total Assets (PBT/Total Assets}	(%)	18.39	14.84	10.88
Return on Investment (ROI) (PBT/Networth)		0.22	0.18	0.13
Debt Equity Ratio (Total Debt/Networth)		0.11	0.18	0.19
Current Ratio (Current Asset/Current Liability)		2.68	2.91	2.32

FINANCIAL ANALYSIS

[All figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	305.900	305.900	305.900
Reserves & Surplus	7698.400	8937.300	10727.800
Net worth	8004.300	9243.200	11033.700
long-term borrowings	1162.200	1451.500	1266.900
Short term borrowings	383.200	171.100	0.000
Total borrowings	1545.400	1622.600	1266.900
Debt/Equity ratio	0.193	0.176	0.115

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	20357.500	22706.800	23590.400
		11.540	3.891

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	20357.5	22706.8	23590.4
Profit	981.900	1452.700	2076.800
	4.82%	6.40%	8.80%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	No
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	Yes
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	No
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

LITIGATION DETAILS:

Case Details

Bench:-Bombay

Lodging No.:- ITXAL/20/2012

Filing Date:- 06.01.2012

Reg. No.:- ITXA/730/2012

Reg. Date:- 24.07.2012

Petitioner:- The Commissioner of Income Tax – (Central)

Respondent:- Finolex Cables Limited

Petn. Adv.:- Vipul Arun Bajpayee (I4135)

District:- PUNE

Bench:- DIVISION

Status:- Admitted (Unready)

Category:- TAX APPEALS

Last Date:- 12.02.2013

Stage:- FOR DIRECTION

Last Coram:- HON'BLE SHRI JUSTICE J.P. DEVADHAR

HON'BLE SHRI JUSTICE M.S. SANKLECHA

Act :- Income Tax Act, 1961

Under Section:- 260A

UNSECURED LOAN

Particulars	As on 31.03.2014	As on 31.03.2013
	(Rs. In Millions)
LONG TERM BORROWINGS:
Deferred sales tax loan	16.900	20.600
SHORT TERM BORROWINGS:
Buyers credit	0.000	171.100
Total	16.900	191.700

BACKGROUND

Economic growth over the past couple of years has been muted - much will depend on the new government in terms of raising optimism with their approach to various policy issues. Growth estimates have been pruned from the earlier levels of 9% to between 5-6%. Investments which drove growth until 2008/9 have slowed down sharply. Domestic savings have declined while government deficits have ballooned. Inflation has been ruling high for well over two years now leading to a period of relatively high interest rates and its negative impact on the economy; the reigning in of the current account deficit has been one of the few positives for the year. The depreciation in currency has resulted in an improvement in their competitiveness and should help improve exports in the coming months while at the same time compel industry to look for greater indigenization and import substitution. It is expected that inflation would moderate over the remaining part of 2014 and would pave way for some monetary easing. Recent clearance by the government of several projects that were held up for various reasons over the past couple of years also holds out hope for an improvement in business sentiments that could result in a turnaround to the investment cycles. However, there is a general expectation that the ongoing general elections will bring about a stable government and along with that there are renewed hopes of a strong and improved economic situation

OPERATIONS

In terms of revenue, the year saw only a marginal growth over the previous year. Overall sales grew by 4% in value terms when compared to 2012-13. In volume terms the growth was higher. Higher volumes were achieved in Communication Cable and Copper segments as well as in the Lighting Business. Star performances came in from product offerings to the following customer sectors – agriculture in the Electrical Cables segment and Coaxial and Optic Fibre Cables in the Communication Cable segment. During the year both the Auto and Infrastructure (Power) sectors were under strain. In terms of outlook for the upcoming year, sales of Optical Fiber Cables looks promising with the government firmly committed to achieving the targets set under the National Optic Fiber Network program as also the Defence Network. Similarly with the government clearing several major infrastructure projects recently, and more states opting for the Financial Restructuring Program, it is expected that the Power Sector would attract investments in cabling in the not too distant future. Income for the year was higher at Rs.24073.900 Millions (previous year Rs.22948.500 Millions) representing a growth of 5% over the previous year. The Company has recorded a Net Profit after Tax of Rs 2076.800 Millions as against a Net Profit of Rs.1452.700 Millions in the previous year. The improved profitability comes from a better product mix, growth in sales volumes across the product lines mentioned above and tight monitoring of working capital requirement.

EXPANSION, CONSOLIDATION & NEW PRODUCTS

Consolidation of the Pune manufacturing operations at Urse has been largely completed with only skeletal activity remaining at Pimpri. This has helped further improve the cost competitiveness in the Low Duty Electrical Cables offered by The Company. The planned 5MW solar power plant at Urse is now operational – the plant went live in March 2014 and the power generated will be entirely consumed within the Urse site leading to cost efficiencies.

The Roorkee facility expansion is now complete and the enhanced capacity will be available for market requirements effective 2014-15. This should greatly enhance product availability as well as ensure better reach to the markets in Northern and Eastern India. Expansion of the Optic Fiber Cable manufacturing capacity at the Goa unit was completed during the year. An additional line is currently under commissioning at the Urse unit as well. These additions would serve the Company well in being able to meet its obligations under the NOFN order as well as any additional demand from the market. As announced last year, the Company intends to enter the switchgear market. Product launch is expected during the 3rd quarter of 2014-15 – these products will be manufactured at the Roorkee site and equipment necessary has been ordered and is expected towards

End May/early June. The Company launched a series of LED based lamps during the year. Market acceptance has been very encouraging and more varieties are being considered for a launch in the upcoming year. Together with the CFL based lamps, it is envisaged that lighting products would bring substantial value to the Company.

FINANCE

The Company’s short term debt programs continue to enjoy the highest ratings from CRISIL. Since the last few years these have been accorded the A1+ rating. The Company regained the AA+/stable rating for its Rs.500.000 Millions long term non-convertible debentures program as well as on the long term loans currently outstanding. This up gradation by CRISIL reflects the strong financial risk management policies followed by the Company. Despite the increase in value of operations, financial costs have been contained to the minimum required levels. The Company continues to meet all its financial commitments in a timely manner.

MANAGEMENT DISCUSSION AND ANALYSIS

BUSINESS OF THE COMPANY:

The Company operates in two main segments - Electrical Cables and Communication Cables. To support its requirement of Copper Rods for both type of cables, the Company manufactures Continuous Cast Copper Rods (CCC rods), at its Rod Plant at Goa. A small part of this production of CCC rods is, however, sold to third party customers. The result from this operation is declared under the Copper Segment. The Company’s foray into the Lamps and Electrical Switches businesses is still in its early years and account for less than 5% of the Company’s turnover and are hence reported as “Others” in the Segment Results.

REVIEW OF OPERATIONS:

Production:

· Electrical Cables at 54,423 MT as compared to 50,445 MT in the previous year.

· Metal based communication Cables at 5,576 MT as compared to 4,678 MT in the previous year.

· Optical Fibre Cables at 31,023 KM as compared to 49,080 KM in the previous year.

Sales:

· Electrical Cables (including Excise Duty) at Rs.21132.000 Millions as compared to Rs. 20858.00 Millions in the previous year.

· Communication cables (including Excise Duty) at Rs.2264.000 Millions as compared to Rs.1991.000 Millions in the previous year.

· Copper Rods (net of interdivisional transfers and including Excise Duty) at Rs. 1178.000 Millions as compared to Rs.836.000 Millions in the previous year.

· Exports were marginally higher at Rs. 501.000 Millions as against Rs. 496.000 Millions of the earlier year.

· During the year, several new products were introduced, chief among them being Electrical Cables for the Elevator Industry,

· Special purpose cables for CCTV applications, and innovations within the Optic Fiber Cable business. New product designs

· For innovative applications will continue to remain a focus area for the Company.

· The income from operations (including excise duty) was Rs.25099.000 Millions for the year as compared to Rs.24235.000 Millions for the earlier year.

· Two major orders worth Rs.500.000 Millions were executed by the JV (Finolex J-Power Systems Ltd.) during the year. As members would be aware, the Power Sector in their country has been going through uncertain times as evidenced by difficulties in fuel sourcing as well as the tight financial position of most power utilities. Given this scenario, capital investment in the sector has been minimal during the year. Moreover the stringent pre-qualification conditions imposed by utilities have also been a dampening factor in order acquisition by the JV. It is estimated that the JV will become profitable only around 2016 and will need financial support in the form of equity infusion until then. While the long term outlook of the JV is positive, in the short term there is an erosion of net worth in the JV.

· The Joint Venture with Corning SAS, Corning Finolex Optical Fibre Private limited which commenced operations during the last quarter of 2012-13, has clocked sales of over Rs. 1000.000 Millions in the year 2013-14. The operations are expected to be profitable going forwards.

· For more details on the operations, a reference may please be made to the financial statements.

BUSINESS ENVIRONMENT:

The segment-wise discussion on the markets which are served by the Company is as follows:

Electrical Cables:

Electrical cables can be further categorized into light duty electrical cables, power and control cables.

(i) Light duty electrical cables include electrical wires used extensively for electrification of industrial establishments, Electrical panel wiring in industrial establishments and major Equipments, consumer durable goods, automobiles, Agricultural pump sets, small generator applications besides general lighting purposes.

(ii) In power cable category, the Company has the ability to manufacture such cables within the range 1.1 kV to 66 kV. These cables are high voltage cables designed in various constructions depending upon their applications; however, always meant for underground usage. Power and control cables up to 3.3 kV rating are used for connecting user point to the main supply of power. Power cables above 3.3 kV rating are meant for use in underground application for intra-city electricity distribution network. The Company manufactures insulated power cables only. These cables meet the requirements of international standards.

Performance:

For the year, this segment cables registered sales (including excise duty) of Rs.21132.000 Millions against Rs.20858.000 Millions of the previous year. It accounted for 85% of total sales for the year. Growth during the year was driven mainly by agricultural applications. Both infrastructure and automobile sectors remained very subdued (with the poor financial position of the various power utilities as well as constraints faced by them in terms of fuel availability), while in the construction sector growth was marginal. Margins, however, were strong with EBITA at 12.7% for the year as against 12.2% in the earlier year.

Outlook:

Electrical cables are the main focus area of business for the Company. In the long term the outlook is positive – construction sector appears positive with development seeming more broad based and consumption being reported from interior areas of the country rather than being limited to the larger cities; agricultural applications also appear positive and poised to continue on the growth shown in the previous years; automobile and infrastructure (power), however seem to be going through a slower growth path at this moment. In the long term, however, the outlook for the entire segment is positive, given the fact that sustained economic growth of the country depends on a robust and stable infrastructure. The Company faces two principal risks in this business – firstly competition from a large unorganized sector which produces products of inferior quality but at cheap prices and secondly a highly volatile commodity market where price movements can be very sharp. The Company has been handling the risk of the competitive forces through its organized business approach by the strength of its reach, superior quality products, and safe products and maintaining high standards of service levels with its customers. The Company enjoys the advantages of economies of scale and backward integration. As and when GST is rolled out in the country, the Company believes the threat of a competitive force that relies on cheap quality and unfair trade practices will reduce further. As regards the risk of sharp raw material price movements, though the Company endeavors to pass on the price effect to the customers, there has always been a time lag between the price movement and the passing thereof. The Company negotiates price variation contracts with bulk buyers. The Company has been fair in dealing with its customers and accordingly enjoys customer confidence in pricing decisions.

Communication Cables:

The communication cables comprise of state of art, new generation communication cables and traditional telephone cables.

(i) The state of art communication cables are either copper based or glass based. The copper based cables include LAN cables, coaxial cables, PE insulated switchboard cables and V-SAT cables. These cables are used for last mile connectivity. LAN cables are used in high speed networks, Coaxial cables are used to provide content input to TV receiving sets and in microwave communications and mobile towers, PE insulated switchboard cables are used to connect telephone instruments to an EPABX system and V-SAT cables find their application in V-SAT towers to connect the dish to the base station.

Optic Fibre cables are glass based cables and they have the maximum bandwidth and speed. Certain cable designs are used as trunk cables in long distance networks while other designs are used in distribution, whether by telecom companies, multi-service organizations or other service providers. Communication cables which carry voice, data or images is the backbone of an economic activity. The speed and bandwidth determine the capabilities of a communication network.

(ii) Traditional telephone cables include JFTCs which are laid underground and are used for connecting land line telephones to exchanges. These are copper based cables. With introduction of mobile telephones in India and due to substitution by optic fibre cables, JFTC business has lost its value. Nevertheless, JFTC continues to remain a preferred option for last mile connectivity in fixed line telephones. The demand for JFTCs will continue to remain modest. The Company would continue to manufacture JFTCs especially with broadband features for public sector and private sector telecom

Performance:

The communication cables segment (including optic fibre) recorded sales of Rs.2264.000 Millions for the year against Rs.1991.000 Millions for the earlier year. As mentioned in the previous year’s report, there has been appetite from private service providers within the telecom sector to invest in cables consequent to their commencement of 4G rollouts. EBITA levels have improved to 13.7% in this segment as compared to 13.3% in the previous year.

Outlook:

With the impetus from the Government in providing better and faster internet access to rural India, the Company believes that demand for communication products will be robust for the foreseeable future. The economic development requires inter-alia, a strong, dependable and sustainable communication network. Besides the programs being implemented by the Government, roll out of 4G services by private service providers will entail additional capital expenditure in the form of an optic fibre network. The Company’s communication cables meet with the requirement of local as well as international standards and therefore, find ready acceptance with domestic customers as well as in the exports market. The outlook here is positive, both in the near as well as long term. The risks of competition and copper price movements similar to the electrical cables business are also applicable to the business of communication cables. The varying global demand-supply equation of optic fibre and resultant price movement thereof; availability of preforms and price thereof and delay/slow-down in investment into networks by telecom companies/ service provider and other relevant entities due to global slow-down pose risk to the business of communication cables. The Company’s association with Corning Inc of USA, inventor of glass fibre, one of the world’s leading glass and fibre manufacturer and having the largest market share in the world, would be beneficial in meeting technological and market based challenges

Copper Rods:

Copper rod is the feed stock for copper based electrical and communications cables. The Company manufactures its own copper rods. The base material for producing copper rods is copper cathodes, the bulk of which are procured from local manufacturers under long term supply agreements. A smaller portion of the requirement of copper cathodes is imported as and when needed. After meeting the in-house requirement of copper rods, the balance capacity to produce copper rods is allocated for third party sale.

Performance:

The sales were Rs.7005.000 Millions (previous year Rs.7085.000 Millions) of which Rs.1178.000 Millions were sales to third parties (previous year Rs.836.000 Millions) and balance was inter-divisional transfers. The trend of high premiums on cathodes Vs comparably lower premiums on copper rods continues and negatively impacts the sales of copper rods for the Company. This put severe pressure on margins related to sale of copper rods to third party – consequently The Company restricted its sale of copper rods to already committed contracts or contracts where the margin levels were acceptable.

Outlook:

The copper rod production is mainly for in-house consumption. The Company’s steps to set up new plants for cables as well as to expand the cable capacity at the existing plants will boost up the captive consumption of copper rods. Further, since the joint venture with J-Power Systems Corp. of Japan has commenced its operations, the venture’s copper requirements would be met by The Company’s copper rod plant. Accordingly the utilization of capacity at copper rod plant is expected to improve.

Electrical Switches and CFLs:

The manufacture and sale of these electrical products act as a logical extension of the cables business of the Company. They have the backing of Finolex name, assuring the customer of quality, safety and performance standards. These electrical and lighting products are sold through the existing well-spread distribution network of cables. Other distribution avenues are also being explored to penetrate further in the market. Products have been well accepted by the market. On its part to contain the effects of global warming, the Government is promoting use of CFLs. Keeping in mind the expected growth in CFL demand the Company has built capacity in T3 and T4 type CFLs and has also launched the latest T5 tube lights and fittings in the market. Both the above products fared well during the year and grew by more than 100% in volume and value terms. With improved distribution coverage, additions to product range including LED applications for the home, business, commercial and industrial usage were launched during the year and have been well accepted.

Summary:

The Company’s main businesses are core to development of infrastructure. As the country marches ahead towards attaining the status of being a developed nation, it is natural that the demand for the products produced and marketed by the Company would grow. With the focus being on supplying products of superior quality at a price that is attractive to the customer, backed by the distribution reach that the Company has it is but a logical conclusion that the future holds vast promise. The Company is committed to expanding its business activities in an optimal manner. The Company has resources available at its disposal to implement and realize its business goals.

INDEX OF CHARGES:

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10353872	27/03/2012	750,000,000.00	AXIS TRUSTEE SERVICES LIMITED	AXIS HOUSE, 2ND FLR, BOMBAY DYEING MILLS COMPOUND,, PANDURANG BUDHKAR MARG, WORLI,, MUMBA - 400025I, MAHARASHTRA, INDIA	B39004361
2	10270460	23/02/2011 *	500,000,000.00	AXIS TRUSTEE SERVICES LIMITED	AXIS HOUSE, 2ND FLR, BOMBAY DYEING MILLS COMPOUND,, PANDURANG BUDHKAR MARG, WORLI,, MUMBAI - 400025, MAHARASHTRA, INDIA	B08437824
3	10192895	21/12/2009	470,000,000.00	STANDARD CHARTERED BANK	90 M G ROAD, MUMBAI - 400001, MAHARASHTRA, INDIA	A75573964
4	90090849	30/12/1998	500,000,000.00	BANK OF BARODA	CORPORATE BANKING BRANCH, MANTRI COURT; 1ST FLOOR; 39; DR. AMBEDKAR ROAD, PUNE - 411001, MAHARASHTRA, INDIA	-
5	90084770	11/06/2001 *	285,500,000.00	CORPORATION BANK	INDUSTRIAL FINANCE BRANCH, PUNE - 411003, MAHARASHTRA, INDIA	-
6	90090621	24/06/2005 *	1,361,500,000.00	BANK OF MAHARASHTRA	INDUSTRIAL FINANCE BRANCH, PUNE, MAHARASHTRA, INDIA	-
7	90090594	13/02/1998 *	550,000,000.00	BANQUE NATIONALE DE PARIS	C G-3 KONARK ESTATES, 9 CONNAUGHT ROAD, PUNE - 411001, MAHARASHTRA, INDIA	-
8	90088034	27/04/1998 *	500,000,000.00	THE INDUSTRIAL CREDIT AND INVESTMENT CORP. OF INDIA LTD.	163; BACKBAY RECLAMATION, MUMBAI - 400020, MAHARASHTRA, INDIA	-
9	90087982	04/07/1996 *	130,000,000.00	THE INDUSTRIAL CREDIT & INVESTMENT CORP. OF INDIA  LIMITED	163; BACKBAY RECLAMATION, BOMBAY - 400020, MAHARASHTRA, INDIA	-
10	90087939	07/10/1995 *	150,000,000.00	THE INDUSTRIAL CREDIT & INVESTMENT CORP. OF BANK L  IMITED	163; BACKBAY RECLAMATION, BOMBAY - 400020, MAHARASHTRA, INDIA	-

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30^ST JUNE, 2014

(Rs in millions)

Particulars	Quarter ended
	30.06.2014
	(UnAudited)
1. Income from Operations
a) Net Sales / Income from Operations (Net of excise duty)	5673.100
b) Other Operating Income	47.000
Total income from Operations (Net)	5720.100
2. Expenses
a) Cost of Materials Consumed	4283.500
b) Purchases of Stock in Trade	30.900
c) Change in Inventories of finished goods, WIP & Stock in trade (increase)	(25.000)
d) (Increase) / Decrease In Excise Duty On Closing Stock of Finished Goods	(1.000)
e) Employee Benefit Expenses	225.900
f) Depreciation, Amortisation & Impairment	138.900
g) Other Expenses	146.600
h) Power & Fuel	86.200
i) Sales & Distribution Expenses	412.900
Total Expenses	5298.900
3. Profit from Operations before other income, finance costs, prior period adjustments and exceptional items (1-2)	421.200
4. Other Income	75.300
5. Profit from ordinary activities before finance costs, prior period adjustments and exceptional items (3+4)	496.500
6. Finance costs	32.600
7. Profit from ordinary activities after finance costs but before prior period adjustments and exceptional items (5-6)	463.900
8. Exceptional Items – Income/ (Expenses)	--
9. Profit from ordinary activities before Tax (7+8)	463.900
10. Tax Expenses	117.100
11. Net Profit from ordinary activities after tax (9-10)	346.800
12. Extraordinary Items (net of tax expenses)	--
13. Net Profit for the period (11-12)	346.800
14. Paid up Equity Share Capital	305.900
15. Paid up Debt Capital	--
16. Reserves excluding Revaluation Reserve as per balance sheet of previous accounting year	--
17. Debenture Redemption Reserve	--
18. Earnings per share (before and after extraordinary items) (of Rs.2/- each) (not annuaiised):
(a) Basic	2.30
(b) Diluted	2.30
PART II	Quarter Ended 30.06.2014 (UnAudited)
A. PARTICULARS OF SHAREHOLDING
1. Public Shareholding*
- Number of shares	98097875
- Percentage of shareholding	64.14%
2. Promoters and Promoter Group Shareholding
(a) Pledged/ Encumbered
- Number of Shares	NIL
- Percentage of shares (as % of the total shareholding of promoter and promoter group)	NA
- Percentage of shares (as % of the total share capital of the company)	NA
(b) Non-encumbered
- Number of Shares	54841470
- Percentage of shares (as% of the total shareholding of promoter and promoter group)	100.00%
- Percentage of shares (as % of the total share capital of the company)	35.86%

* Includes 22187075 shares (14.51%) held by Associate Company - Finolex Industries Limited

Particulars		Quarter ended 30.06.2014
B	INVESTOR COMPLAINTS
	Pending at the beginning of the quarter	NIL
	Received during the quarter	NIL
	Disposed of during the quarter	NIL
	Remaining unresolved at the end of the quarter	NIL

SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED, AS PER CLAUSE 41 OF THE LISTING AGREEMENT

(Rs in millions)

Particulars	Quarter ended
	30.06.2014
	(Unaudited)
1. Segment Revenue including Other income
a. Electric Cables	5083.400
b. Communication Cables	481.300
c. Copper Rods	1481.400
d. Others	617.700
Total	7663.600
Less: Inter Segment Revenue	1943.600
Net sales/income from Operations	5720.200
2. Segment Results
Profit Before Interest and Tax
Profit (+) / Loss (-):
a. Electric Cables	602.400
b. Communication Cables	24.400
c. Copper Rods	8.900
d. Others	(8.000)
Total Profit Before Interest and Tax	627.700
Less :
interest	32.600
Other unallocated expenditure net of unallocated income	131.200
Total Profit before Tax	463.900
3. Capital Employed (Segment Assets - Segment Liabilities)
a. Electric Cables	5685.200
b. Communication Cables	2202.300
c. Copper Rods	397.300
d. Others	552.100
e. Other than Segments	6951.800
Total Capital Employed	15788.700

NOTES:

1. Exceptional items for the year ended March 31, 2014 represent gains on account of settlement of claims in respect of foreign exchange derivative transactions of the earlier years.

2. Pursuant to the provisions of the companies act, 2013. (The act), becoming effective from 1^st April, 2014. The company has reassessed the useful life of the assets and has recomputed depreciation on the assets, except plant and machinery, as per rates prescribed in the schedule II of the act. Based on the internal technical evaluation, the company has assessed that no change in useful life is required in respect of plant and machinery. As a result of the said reassessment, depreciation for the quarter is higher by Rs. 6.200 Millions.

3. Other expenses for the quarter year ended 31^st March, 2014 includes provision of Rs. 73.700 Millions towards diminution in the value of investments in a joint venture

4. The limited review of the above financial results has been completed by the statutory auditors and the same have been reviewed by the audit committee and taken on record by board of directors as its meeting held on 8^th August, 2014.

5. The figures of the last quarter of the year ended march 14 are the balancing figure between the audited figures in respect of the full financial year and the published year to date figures of the third quarter of that financial year.

6. Previous period figures have been regrouped wherever necessary to confirm to the current period classification.

FINOLEX CABLES LIMITED

PRESS RELEASE

Pune, August 8th, 2014

FINOLEX CABLES LTD RESULTS

Finolex Cables Ltd., (FCL) at the meeting of its Board of Directors held today approved results for the first quarter of the financial year 20 14- 15. Net Sales for the quarter ended June 30th 2014 were Rs 5673.100 millions as against Rs 5491.800 millions for the corresponding period in year 20 13- 14. In value terms Net Sales in the current quarter shows an increase of 3% compared to the corresponding period of the previous year. In volume terms, Electrical Cables grew 4% in the quarter ended June 20 14, while Communication Cables was flat. Profit for the quarter, before taxes, increased to Rs. 463.900 millions from Rs. 441.800 millions in the previous year.

FIXED ASSETS:

Tangible Assets

· Land

· Lease Hold Land

· Buildings

· Plant and Machinery

· Furniture, Fittings

· Office Equipments

· Computer Peripherals

· Vehicles

· Dies and Moulds

Intangible Assets

· Software and Others

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 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 judgment 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 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.60.47
UK Pound	1	Rs.100.43
Euro	1	Rs.79.39

INFORMATION DETAILS

Analysis Done by :	RAS
Report Prepared by :	JAY

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		67

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.