Finolex Cables : Annual Report

Forging Ahead Towards

A STRONGER FUTURE

21-22	Finolex Cables Limited
Annual Report

CONTENTS

Corporate	Statutory	Financial
A. Overview	B. Reports	C. Statements

2	About Us	22	Board's Report
6	Chairman's Message	29	Management Discussion &
8	Forging Ahead		Analysis
	By Expanding Capabilities	39	Corporate Governance
10	Forging Ahead	78	Business Responsibility Report
	By Strengthening Innovation &
	New Product Development

14 Forging Ahead

By Increasing Branding & Marketing Activities

16 Forging Ahead

By Seizing Opportunities

18 Driving Stronger Impact in our Communities

1. Financial Scorecard for Ten Years
2. Corporate Information

84 Independent Auditor's Report

1. Standalone Balance Sheet
2. Standalone Statement of
   Profit and Loss
3. Statement of Standalone Cash Flow

1. Standalone Statement of Changes in Equity
2. Notes to the Standalone Financial Statements

149 Independent Auditor's Report

1. Consolidated Balance Sheet
2. Consolidated Statement of
   Profit and Loss
3. Statement of Consolidated Cash Flows

1. Consolidated Statement of Changes in Equity
2. Notes to the Consolidated Financial Statements

214 Notice

Forward-looking Statements

This report contains forward-looking statements, which may be identified by their use of words like 'plans', 'expects', 'will', 'anticipates', 'believes', 'intends', 'projects', 'estimates' or other words of similar meaning. All statements that address expectations or projections about the future, including but not limited to statements about the Company's strategy for growth, product development, market position, expenditures and financial results, are forward-looking statements. Forward-looking statements are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realised. The Company's actual results, performance or achievements could thus differ materially from those projected in any such forward-looking statements. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events. The Company has sourced the industry information from the publicly available resources and has not verified those information independently.

Watching the impact of the COVID-19 pandemic unfold, we have stayed keenly focussed on what we could do to not only navigate the crisis but also emerge stronger and drive a better future. The fundamental strengths that we have built have enabled us to create a business model that is resilient and upholds our legacy and competitive edge.

As we set our sights on the future, we have identified strategic investment areas for taking our performance to the next level. Be it progressively scaling up our manufacturing facilities to launching new products to driving higher brand engagement and customer connect to widening our distribution reach and enhancing operational efficiencies, the several steps that we have undertaken will power stronger overall growth and higher value for our stakeholders.

WE ARE FORGING AHEAD TOWARDS A STRONGER FUTURE WITH OUR STEADFAST RESOLVE, STRENGTH, AND RESILIENCE.

Finolex Cables Limited	Annual Report 2021-22

ABOUT US

Finolex Cables is India's largest and leading manufacturer of electrical and telecommunication cables and holds

a prominent reputation for its high-quality products. Established in 1958, we are anchored on the pillars of manufacturing excellence, strong innovation, and technological competence. These attributes coupled with strong corporate governance helps us build enduring relationships with our customers and create a powerful brand recall. Aspiring to become a one-stop solution for all electrical products, we have recently forayed into the Fast- Moving Electrical Goods (FMEG) segment, thereby capturing new growth opportunities and gaining higher prominence in the B2C segment.

Finolex Cables is a debt-free Company and has a turnover exceeding Rs. 3,768.1 Crores, 5 manufacturing sites and 1,589 employees.

Strong Foundation for a Stronger Future

Since inception, Finolex Cables has braved many challenges and achieved extraordinary milestones through a strategy of consistent expansion and modernisation. Be it persevering through its initial years during the turbulent phase of India's partition; spearheading the concept of using stranded conductors for manufacturing of electrical wires in the 1950's; emerging as the first private sector company in India to manufacture Jelly Filled Telephone Cables (JFTC) in the late 1980's; or countering the enormous impact of mobile phones advent on our JFTC business through aggressive portfolio diversification in the 1990's; we have taken every challenge in our stride. Our past is glorious and reminds

us of our strengths and endurance, inspiring us to find opportunities in every challenge and forge ahead towards a stronger future.

1st

Industry-firsts to our credit

First in India to make multi- strand wires

First in India to manufacture auto cables

First in private sector to manufacture and supply JFTC to DoT

First in India to launch FRLS wires and cables

First in India to make co-axial cables using physical foam process

First in India to make aerial cable designs

First in India to manufacture LAN cables with UL verification

First and only company in India to manufacture power cables up to 500 kV through Joint Venture

First in the industry to be integrated backwards, capturing entire value chain

2

Corporate Overview	Statutory Reports	Financial Statements

Finolex in Numbers

5	26	5,000
Manufacturing	Depots	Channel Partners
sites

1,50,000	1,589	22%
Retailers	Employees	Market Share in the organised
		wires industry

Rs.3,768.1 Crores	Rs.566.9 Crores	Rs.404.6 Crores
Revenue	EBITDA	PAT

Revenue break-up (as on FY 2022)

85%

Electrical wires and cables

10%

Communication cables

5%

Copper rod and Other products

3