Finolex Cables : Copy of Annual Report 2020-21 to Stock Exchanges

Finolex Cables Limited

Exceptional Adversity

Outstanding Character

Annual Report

2020-21

What's Inside...

01

21

87

211

Corporate Overview

Finolex Facts and Figures	2
Chairman's Message	6
Staying Focused	8
Driving Innovation	10
Demonstrating Agility	14
Seeing Beyond the Adversity	16
True Character is in	18
Helping Others Succeed
Financial Summary for Ten Years	20
Corporate Information	21

22

86

Statutory Reports

Board's Report	22
Management Discussion &	31
Analysis
SEBI COVID-19 Disclosure	43
Corporate Governance	44

Page 2

Page 6

Page 17

Forward-looking Statements

Financial Statements

Independent Auditor's Report	87
Standalone Balance Sheet	96
Standalone Statement of	97
Profit and Loss
Standalone Statement of	98
Cash Flows
Standalone Statement of	100
Changes in Equity
Notes to the Standalone	101
Financial Statements
Independent Auditor's Report	149
Consolidated Balance Sheet	156
Consolidated Statement of	157
Profit and Loss
Consolidated Statement of	158
Cash Flows
Consolidated Statement of	160
Changes in Equity
Notes to the Consolidated	161
Financial Statements
Notice	212

Certificate of Compliance	60
Secretarial Audit Report	62
Companies (Disclosure of	71
particulars in the report of the
Board of Directors) Rules, 1988
Sec 197 Disclosure	74
Form AOC 1	75
Form AOC 2	76
CSR Report	77
Business Responsibility Report	81

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.

Download this report or read online at

www.finolex.com

On the other side of a storm is the strength that comes from having navigated through it.

Raise your sail and begin.''

- Gregory S. Williams

Challenges such as those presented by the pandemic are beyond our control. What is in our control is our response to such challenges. The beliefs we hold, the values we profess, the attributes that define us and the way we conduct ourselves became even more important in the face of the unprecedented challenges brought about by the COVID-19 pandemic. Yes, the adversity was exceptional. But our hardwired corporate character not only helped us successfully navigate a year that was like no other in recent history, but also enabled us to emerge stronger through the crisis.

We have demonstrated agility and resilience through these tough times by enhancing our focus on cost, process efficiency, and new product development. At the same time, we have stayed the course for expanding our retail footprint and for our capex plans for our electron beam facility, backward integration projects, and conduit plant. In doing so, we are ensuring that Finolex Cables emerges from the crisis not only stronger, but ready to seize the opportunities presented by the changing world.

Finolex Cables Limited	Annual Report 2020-21

Finolex Facts and Figures

Established in 1958, Finolex Cables is India's largest and prominent manufacturer of electrical and telecommunication cables. We have lately expanded into the fast-moving electrical goods (FMEG) segment with the goal of becoming a complete electrical products company. Our manufacturing excellence, innovative capabilities, and technology competence form the cornerstone of our operations. We adhere to the highest standards of integrity and corporate governance, and have forged strong relationship with institutional and retail customers over the years.

Finolex Cables is a debt-free Company and has a turnover exceeding Rs. 2,845.1 crores, 5 manufacturing sites and 1,649 employees.

Our character has always been at the core of our success

In our over five-decade long glorious journey, we have created countless milestones and redefined prospects through our persistent focus, innovation, and agility. Be it in our preliminary years when our originators had to valiant the unbridled times

of India's partition; in the 1950s

when we initiated the concept of using stranded conductors for the manufacture of electrical wires; in the late 1980s when we became the first private sector company in India to manufacture Jelly Filled Telephone Cables (JFTC), or in the 1990s when we expanded our portfolio to overwhelm

the immense impediment to our JFTC business due to the initiation of mobile phones; we have passed every storm and emerged stronger. Our past is intriguing and encouraging. Our future pledges to build on this rich legacy and drive stronger prospects amidst the challenges.

Industry-firsts

‹‹ 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