P. P.

Chhabria Chairman
Dr. H. S. Vachha
B. G. Deshmukh
Atul C. Choksey
Sanjay K. Asher
P. G. Pawar
Dr. N. A. Kalyani
S. B. (Ravi) Pandit
Pradeep R. Rathi
D. K. Chhabria Managing Director
V. K. Chhabria Dy. Managing Director
M. L. Jain Asst. Managing Director and
Chief Operating Officer
P. B. Parasnis Asst. Managing Director and
Chief Financial Officer

Company Secretary &

Asst. Vice President (Legal) R.G. D'Silva

Bankers Central Bank of India

Bank of Baroda
BNP Paribas
Citibank N. A.
Corporation Bank
HDFC Bank Ltd.
ICICI Bank Ltd.
Standard Chartered Bank
State Bank of India
The Bank of Nova Scotia

Auditors B. K. Khare & Co.

Chartered Accountants

Solicitors Crawford Bayley & Co.

Registered Office 26/27, Mumbai-Pune Road,

Pimpri, Pune 411 018.

8
 39th
Annual Report 2006-07

Directors' Report
To
The Members
Your Directors are pleased to present their 39th Annual Report and Audited Accounts for the year ended 31st March, 2007.

FINANCIAL RESULTS : (Rs. in million)

2007 2006
Income 10,526.253 7,761.664
Profit Before Interest, Depreciation and Tax 1,382.582 1,043.285
Less : Interest 147.987 113.613
Less : Depreciation 264.288 313.164
Profit Before Tax 970.307 616.508
Less : Provision for Taxation
(a) Current Tax 280.000 78.100
(b) Deferred Tax (4.623) 28.720
(c) Fringe Benefit Tax 5.000 6.000
Profit After Tax 689.930 503.688
Surplus brought forward and other adjustments 113.101 568.680
803.031 1,072.368
APPROPRIATIONS
Debenture Redemption Reserve 100.000 350.000
Proposed Dividend 214.115 183.527
Tax on Proposed Dividend 36.389 25.740
General Reserve 300.000 400.000
Surplus carried to Balance Sheet 152.527 113.101
803.031 1,072.368

DIVIDEND
Your Directors are pleased to recommend enhancement in dividend from 60% to 70% on the equity shares. Accordingly, the dividend
amount per equity share will be Rs. 1.40. The total dividend outgo (including dividend tax) will be Rs. 250.504 million. Dividend distribution
as a percentage of the net profit is 36.31%.
OPERATIONS
Income for the year under review was Rs. 10,526.253 million and net profit was Rs. 689.930 million. The income was higher by 36 % and
net profit was up by 37% over the previous year. Segmentally, electrical cables contributed 69%, communication cables contributed 15%,
copper rods contributed 13% and other products contributed 3% to the total sale of products. The sales-mix, which has emerged over the
last few years, is in synch with the overall business objectives of your Company.
The year under review will always be remembered for an important milestone achieved by the Company. Your Company crossed the
prestigious Rs. 10 billion sales benchmark. Your Company witnessed good growth in profit for the year. The conversion of JFTC (jelly filled

9
 Finolex
Cables Limited
telephone cable) capacity at Urse, mainly to manufacture light duty electrical cables, started yielding results during the year. Exports
recorded a strong growth. There was no traditional JFTC business with BSNL/MTNL due to lack of tenders from these two companies.
The positive effects of the system of Value Added Tax (VAT) (which was introduced in the year 2004), though non-measurable, were
noticed. A couple of important states were still missing on the VAT map at the close of the year. Also, there is no unanimity in VAT rates for
many of the Company's products amongst states. As and when the remaining states adopt VAT system and all the states attain uniformity
in VAT rates, business conditions will further improve for the Company.
The Company continued to pursue cost rationalization and containment measures during the year.
PROJECTS
To leverage on high brand-equity and the existing well entrenched distribution network, the Company had decided to undertake projects to
manufacture certain new products/expand production base.
Electrical Switches Project
An electrical switch is meant for controlling the flow of power. The Company manufactures electrical cables which act as a conduit for
transmitting power. The electrical cables are made of wires which are terminated at and connected to an electrical switch. Thus the flow of
power is controlled through an electrical switch. Therefore, the business of electrical switches is complementary to the electrical cable
business of the Company. The Company has developed and introduced two ranges of electrical switches; premium range for the niche
market and classic range for the mass market. Characterised by the superior quality of polycarbonate and silver coated contacts and
terminals used in the making of the most modern switches, 'Finoswitch' is safe, durable and is tested to last over 60,000 clicks. The
switches are marked with a unique fluorescent strip that glows in the dark and acts as a guide. Electrical switches were launched in June
2006. They have been well received by the market.
Compact Fluorescent Lamps (CFLs) Project
Expanding its reach to providing more products in electrical solutions, the Company launched 'Finoglow', its brand of CFLs, during August
2006. Finoglow is an energy saving lamp. It can save upto 80% energy as against an incandescent lamp. Available in retrofit and non-
retrofit range, CFLs are available in different colours, wattage and sizes. Finoglow CFLs have a high colour rendering index which gives
true colour lighting. The market response to CFLs has been positive.
The government is considering to ban use of GLS (incandescent) lamps to help in reducing global warming. CFLs will substitute for GLS
lamps. Considering the immense growth potential, the Company is planning for substantial expansion of manufacturing capacity for CFLs.
High Voltage Power Cables Project
The macro environment for power cable sector is very strong on the back of improved investment scenario in the country. Large investment
is coming in power generation, distribution, rural electrification, upgrading existing distribution networks, industrial capacity expansion,
construction and the like. These factors would drive demand growth for power cables in India. In order to cater to this market segment, the
Company will manufacture insulated, underground usage power cables upto 66 KV rating. Manufacturing facility is under erection. Trial
runs are expected to take place before September, 2007.
The manufacturing units for all of the above mentioned new products are set up at the Urse location where the Company has adequate land
and developed infrastructure.
Uttaranchal (now called Uttarakhand) Project
The main activities consuming electrical cables in bulk like building industry, automobile industry, agricultural irrigation and electricity
distribution are in growth mode. The system of VAT is in place with many states which is expected to generate accelerated business for
organised sector. The governmental thrust on development of infrastructure and power generation offer a wide scope for the business of
electrical cables. In order to capitalise on the growing business opportunities, the Company decided to a set up a green field manufacturing
facility for light duty electrical cables and electrical switches near Roorkee in the Uttarakhand State. Estimated capital expenditure is Rs. 2
billion, planned to be incurred in two stages broadly in equal proportion. The first stage of this project is under execution and the plant is
scheduled for trial runs before September, 2007. The Uttarakhand manufacturing facility will enjoy fiscal incentives by way of excise duty
exemption and income tax benefit for defined periods. Besides enhancing the competitiveness of the Company, this manufacturing facility
will help the Company to stay close and service the present and potential customers in the northern and eastern regions of the country.
NEW PRODUCTS
The Company's initiative to launch new products continued this year also. The Company's R&D team designed and developed and the
marketing team successfully launched following state-of-art cables: 1.1 KV grade XLPE insulated and heat resistant PVC jacketed flat
cable for submersible pump motor application; LAN Cat-6 cable with ring type marking for export as well as domestic market; 50 ohm
coaxial cable with conductor dia 2.75 mm for mobile telephone antenna; 100 pair switchboard cable for ADSL transmission in short range
application; and RG11 coaxial cable with copper clad aluminium conductor for cable TV network. The 1.1 KV flat cable has application in
agricultural sector which is focused by the government for development. The Company expects market expansion to happen for newer
type of communication cables due to growing broadband usage.

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 39th
Annual Report 2006-07

EXPORTS
The Company has its presence in the international market for some time now. The Company has been exporting electrical cables, LAN
cables, optic fibre cables and a variety of customised cables. During the year under review, the Company started exporting communication
cables to its customers in the developed nations. FOB value of the exports for the year was Rs. 672.532 million verses Rs. 368.402 million
for the previous year. With the best technology products in its armoury, the Company is putting a greater thrust on exports.
FINANCE
In order to meet a part of the funds requirement for the Projects, the Company contracted an external commercial borrowing (ECB) in
Japanese Yen equivalent to USD 30 million. Of this, the Company took disbursement of USD 20 million equivalent of Japanese Yen loan
before 31st March, 2007. The balance amount has been drawn in the month of April 2007. The Company has hedged its exposures to
Japanese Yen prudently and has effectively converted the Yen loan into a USD loan. The ECB was raised at competitive rates and is
expected to save good amount of interest cost for the Company, especially since the local interest rates are showing hardening trends. The
ECB was contracted for a period of five years.
Your Company has been accorded P1+ rating, the highest rating for a Rs. 2 billion short term debt program and AA+/stable rating for a Rs.
500 million for a long term non-convertible debenture program by CRISIL. The Company has already issued non-convertible debentures
and utilised the long term rating. The short term rating is being used by the Company for judicious cash flow management. For the year
under review, the Company did well on cash flow management by striking a balance between liquidity and borrowing, while timely meeting
the requirement of funds for the Projects and business expansion. Also, the Company had been able to limit the interest cost inspite of
rising interest rates.
SUPERBRAND STATUS
It is a matter of pride that the Company has been selected as the 'Superbrand' in the exclusive and elite Superbrand category. Starting with
Business Superbrand status, the Company has moved forward and has been awarded the Consumer Superbrand as well for 2006-07.
The Company is the only Indian cable company to have achieved this distinction.
SIX SIGMA
During the second half of the year, the Company launched 'Six Sigma' initiative. Six Sigma is synonymous with the processes that produce
only 3.4 defects per million opportunities. Six Sigma is a complete business system that will drive the Company through a disciplined
methodology to focus on solving greatest business challenges before it. Six Sigma strongly supports the Company's Mission, Principles
and Strategy. It is a system that will allow the Company to reduce costs, reduce defects, improve quality and reliability, lower administrative
and operational cycle times and improve overall customer satisfaction. Six Sigma involves hard work; results will be well worth the effort
and investment of resources. Six Sigma is scheduled to be implemented throughout the Company. It is intended to make Six Sigma 'A way
of Life!' within the Company.
SUBDIVISION OF EQUITY SHARES
The Company had held an extraordinary general meeting of its shareholders on 8th December, 2006 seeking approval for subdivision
(split) of equity shares to face value of Rs. 2 per share from face value of Rs. 10 per share. After completing required formalities, the split of
equity shares came into effect from 16th January, 2007. The need for the split was felt for increasing availability of the equity shares in the
market.
FIXED DEPOSITS
The Company had stopped accepting fixed deposits since 28th April, 2003. As on 31st March, 2007, the unclaimed deposits were Rs. 0.116
million. The reminders sent by the Company in the past to these deposit holders at their last known address were not helpful in liquidating
the unclaimed deposits. If the deposits continue to remain unclaimed, they will be transferred to the General Revenue Account of the
Central Government on the due dates.
EMPLOYEES
The Company is well aware that management of human capital poses challenge these days. The Company has been able to attract human
talent and retain it to a fair extent. The Company endeavors to ensure that its different functions are adequately manned. The Company
operates on a dual remuneration system; a part of the remuneration is paid on assured basis whereas the balance is linked to achievement
of predetermined performance criteria. The Company lays emphasis on training of its employees for improving human skill sets. The
training needs are identified through a defined process. The employees from different functions and positions across the organisation are
grouped together according to the training requirements and the training is given at the learning centres set up by the Company. This
process has helped the Company in building team sprit amongst the employees. Industrial relations continued to be cordial during the year.
The company had 1,038 permanent employees on its roll as on 31st March, 2007.
CORPORATE GOVERNANCE
The statement of Management Discussion and Analysis is annexed hereto and forms a part of this Report.

11
 Finolex
Cables Limited
CORPORATE SOCIAL RESPONSIBILITY
The Company functions as a responsible corporate citizen. It contributes to the exchequer handsomely and duly discharges its legal
obligations. The Company is conscious of the environmental issues, which are considered while deciding business matters. In fact all of
the Company's plants are accredited with ISO 14001 (Environment Management System) certification. The Company has adopted a Code
of Conduct. The Company values honesty and integrity and works towards building an environment of trust and confidence while
functioning.
Besides, the Company is known for financially supporting worthy social causes. The Compay has contributed for establishment and
development of Finolex Academy of Management and Technology which runs a full fledged engineering college, affiliated to Mumbai
University, at Ratnagiri. The Academy also offers Masters degree in Computer Applications. International Institute of Information
Technology or I2IT as it is known, is also assisted by the Company. I2IT offers post graduate MS and MBA courses with various
specialisations in Advanced Information Technology.
DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to Section 217(2AA) of the Companies Act, 1956, the Directors confirm that;
i) in the preparation of the annual accounts, the applicable accounting standards have been followed;
ii) appropriate accounting policies have been selected and applied consistently and have made judgements and estimates that are
reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March, 2007 and of the Profit
and Loss Account for the year ended 31st March, 2007;
iii) proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the
Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
iv) the annual accounts have been prepared on a going concern basis.
ENERGY, TECHNOLOGY AND FOREIGN EXCHANGE
Information on conservation of energy, technology absorption, foreign exchange earning and outgo required to be given pursuant to
Section 217(1) (e) of the Companies Act, 1956 read with the Companies (Disclosure of Particulars in the Report of the Board of Directors)
Rules, 1988 is annexed hereto and forms part of this Report.
PARTICULARS OF EMPLOYEES
Information as required under the provisions of Section 217(2A) of the Companies Act, 1956 (the Act) and the rules framed thereunder
forms part of this Report. However, as per the provisions of Section 219(1)(b)(iv) of the Act, the Report and Accounts are being sent to the
shareholders, excluding the statement of particulars of employees under Section 217(2A) of the Act. Any shareholder desirous of
obtaining a copy of the said statement may write to the Company Secretary & Assistant Vice President (Legal) at the Registered Office of
the Company.
LISTING OF SECURITIES
The Company's equity shares are listed on the two premier stock exchanges of the country namely Bombay Stock Exchange Limited and
National Stock Exchange of India Limited, amongst other stock exchanges. The Company has issued Global Depository Receipts which
are listed on the Luxembourg Stock Exchange. The Company's non-convertible debentures are listed on wholesale debt market segment
of the National Stock Exchange of India Limited.
DIRECTORS
The Company deeply regrets the sad demise of Late Balasaheb J Rathi, an esteemed Director of the Company for a period of 22 years.
Late Mr. Rathi's business acumen had immensely benefited the Company through his presence on the Board of Directors. The Company
will always remember his contribution as a Director. May his soul rest in peace!
Mr. B.G. Deshmukh, Dr. H.S. Vachha and Mr. Atul C. Choksey retire by rotation at the ensuing Annual General Meeting and are eligible for
re-appointment.
Mr. S.B. (Ravi) Pandit was co-opted as an Additional Director on 1st August, 2006. He is the Chairman and Group Chief Executive Officer
of M/s KPIT Cummins Infosystems Limited. Mr. Pandit is MS from MIT, USA where he specialised in Finance and Controls. He is the Ex-
President of the Mahratta Chamber of Commerce, Industries and Agriculture. A Fellow member of the Institute of Chartered Accountants of
India, he has over 25 years of experience in the fields of information technology, corporate strategy formulation and management
consulting. He is also a senior partner in M/s Kirtane & Pandit, Chartered Accountants and a Director on the Boards of several companies.
Mr. Pandit's appointment is to be confirmed by the members at the ensuing Annual General Meeting. The Board of Directors considers it
necessary to have a person of Mr. Pandit's eminence and experience as a Director, which will only benefit the Company. Accordingly, the
Board of Directors recommends his appointment as a Director of the Company.
Mr. Pradeep R. Rathi was co-opted as an Additional Director on 10th May, 2007. He is M. S. (Chemical Engineering) MIT, USA and MBA

12
 39th
Annual Report 2006-07

from Columbia University, USA. For the last 30 years, he is working with Sudarshan Chemical Industries Limited, presently holds the
position of the Managing Director of the said company. He is actively involved with Indian Chemicals Manufacturers' Association and has
represented the Association in different capacities. He was also the Chairman of Foreign Trade Sub-Committee of Mahratta Chamber of
Commerce, Industries and Agriculture. The Board of Directors feels that Mr. Pradeep R. Rathi's presence as a Director of the Company will
greatly benefit the Company. Accordingly, the Board of Directors recommends his appointment as a Director of the Company.
Mr. P.B. Parasnis, Assistant Managing Director and Chief Financial Officer's earlier appointment as a Director came to an end on 22nd April,
2007. The Board of Directors has re-appointed him as a Director of the Company for a further period of five years effective from 23rd April,
2007 subject to approval by the members. The members are requested to re-appoint Mr. P.B. Parasnis as a Director of the Company as per
the resolution proposed in the notice convening the Annual General Meeting of the Company.
AUDITORS
M/s B.K. Khare & Company, Chartered Accountants, Auditors of the Company, hold office until the conclusion of the ensuing Annual
General Meeting and being eligible, offer themselves for reappointment.
ACKNOWLEDGEMENT
Your Directors place on record their sincere gratitude towards the channel partners, dealers and customers of the Company for their
cooperation to grow on business. Your Directors are thankful to other business associates of the Company for extending their unqualified
support. Your Directors thankfully acknowledge the cooperation and support received from the central and state governments, statutory
authorities, local bodies, banks and financial institutions. The employees are a crucial and an integral part of the Company's business
activities. The Directors value their contribution towards the Company's progress and greatfully acknowledge it. An important constituent
of the business is the members of the Company to whom the Directors are thankful for the trust and confidence shown.

For and on behalf of the Board of Directors

Pune P.P. Chhabria

Dated : 10th May, 2007 Chairman

13
 Finolex
Cables Limited
Annexure to Directors' Report
COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OF BOARD OF DIRECTORS) RULES, 1988 :
A. Conservation of Energy :
a) Energy Conservation measures :
i) Replacing of aluminum fans by FRP fans on all cooling towers to reduce energy consumption.
ii) Installation of new power distribution panel to take the lighting load on MSEB to improve utilization of DG.
iii) Installation of Real Time Power Factor Correction panel to improve load factor of the system for optimum utilization of
energy.
iv) Recovery of start up / colour change PVC by use of PVC Scrap Granulator
v) Introduction of motor generator set to get conditioned and continuous quality power so as to eliminate continuous DG
running and ensure optimum utilization of fuel.
vi) Incorporating more energy efficient shop floor lights at specific places to reduce lighting power consumption.
vii) Installation of auto level controller in water pumps to reduce both wastage of power and natural resource like water.
viii) Preventive maintenance of machines to reduce energy loss.
b) Additional investments and proposals, if any, being implemented for reduction of consumption of energy :
Various proposals / measures for reducing energy consumption are under consideration.
c) Impact of the measures at (a) and (b) above for reduction of energy consumption and consequent impact on the cost of
production of goods:
Impact has not been separately measured.
d) Total energy consumption and energy consumption per unit of production as per Form A in respect of industries specified in the
schedule thereto: Not applicable.

B. Technology Absorption :
Efforts made in technology absorption as per Form B are as follows :
Form for disclosure of particulars with respect to Absorption, Research and Development (R&D)
1 Specific areas in which the Company is pursuing R & D efforts :
Following new cables have been designed, developed and successfully launched in the market :
i) Lead free LAN cables.
ii) Lead free electrical wiring cables.
iii) Lead free insulation and sheathed cables and wires meeting ROHS requirement.
2. Benefits derived as a result of the above R&D :
The aforesaid newly developed products have been introduced in the market and give significant benefits in terms of quality, better
performance of the end-user application and import substitution.
3. Future plan of action:
- To develop cross-linkable HFFR cables for high temperature working.
- To develop anti rodent and termite proof cables.
- To develop low water peak optic fibres.
- To develop cost effective FTTH Cables.
- To develop ZHFR building wires.
4. Expenditure on R & D
a) Capital } The development work is carried on
b) Recurring } by the concerned departments on
c) Total } an ongoing basis. The expenses
d) Total R & D expenditure as } and the costs of assets are grouped
a percentage of total turnover } under the respective heads.

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 39th
Annual Report 2006-07

Technology Absorption, Adaptation and Innovation :

1. Efforts in brief, made towards technology absorption, adaptation and innovation :
a) Power Modules for heating control were indigenised for substantial savings.
b) Overall temperature control of the manufacturing process was improved by using specially designed PID controllers in-house.
c) Imported equipment PLC programs were suitably modified for minimum product damage during power interruptions for reducing
in process scrap.
d) Continuous efforts are going on for further developing, improving and upgrading all types of cables.
2. Benefits derived as a result of the efforts e.g. product improvement, cost reduction, product development, import substitution etc. :
Several tangible and intangible benefits from new technology are derived such as cost reduction, productivity, development of new
products, import substitution and better customer services. Development and manufacture of new products with enhanced features
will extend the product range of the Company, enabling it to cater to different customer needs.
3. Imported technology (imported during the last 5 years reckoned from the beginning of the financial year) :
a) Technology Imported : Nil
b) Year of Import : Not applicable
c) Has technology been fully absorbed ? : Not applicable
d) If not fully absorbed, areas where this
has not taken place, reasons therefor,
and future plans of action : Not applicable

C. Foreign Exchange Earnings and Outgo :

Exports have shown good growth in the year. The geographical spread of exports has now widened to the countries in the developed
part of the world. The Company continues to remain focused on export activity and is confident of achieving an impressive export
turnover in due course of time.
i) Earnings by way of Exports : Rs. 672.532 million
ii) Outgo by way of Imports : Rs. 1,169.770 million

For and on behalf of the Board of Directors

Pune P.P. Chhabria

Dated : 10th May, 2007 Chairman

15
 Finolex
Cables Limited
Management Discussion and Analysis
1. BUSINESS OF THE COMPANY:
The Company currently operates in two main business segments, Electrical Cables and Communication Cables. The Company also
manufactures Continuous Cast Copper Rods (CCC rods), essentially for captive consumption; however a part of the production of
CCC rods is also sold. The Company manufactures PVC Sheets for various applications like roofing, signage and interiors. The
Company has recently added Electrical Switches and Compact Fluorescent Lamps (CFLs) to its range of products.

1.1 Main Segments :

The Company is the leading domestic manufacturer of electrical and communication cables with a wide product range. The Company
thus offers a ''Total Cable Solution''. The broad segmentation of the products manufactured by the Company is as follows :

Group Products Covered Application

Electrical Cables
Communication Cables
Copper Rods
Electrical Switches
Compact Fluorescent
Lamps (CFLs)
PVC Sheets
1100 V PVC insulated cables
Motor winding PVC insulated
cables and 3 core flat cables
Automotive/battery cables
UPS cables
Heavy duty, underground,
low voltage, power and control cables
Jelly filled telephone cables (JFTCs) Telephone line connections to exchanges and users.
Local area network (LAN) cables
PE insulated telephone cables
(Switchboard cables)
Coaxial cables
Optic fibre
Optic fibre cables
V-SAT cables
CCC rods of 8 mm diameter
Premium & classic switches,
sockets, regulators, etc
Retrofit & non-retrofit lamps
PVC corrugated sheets, foam
sheets and rigid sheets
Electrification of residential, commercial and industrial
establishments, electrical panel wiring and consumer
electrical goods.
Submersible pumps and electrical motors.
Wiring harness for automobile industry and battery cables for
various applications
For providing power from the UPS to the computer/appliances
in the networking environment.
Connection to the user point from main supply of power.
Indoor and outdoor networking, voice and data transmission,
broadband usage.
Telephone instrument connections to EPABX.
Cable TV network solutions.
Principal raw material for optic fibre cables.
For use in networks requiring high speed transfer of large
bandwidth due to voice, image and data transmission.
For connecting V-SAT dish to base station.
Raw material for manufacture of copper based cables.
Domestic lighting, hotels, shops, offices, corridors.
Domestic lighting, hotels, shops, offices, corridors.
Industrial roofing, wall cladding, signage boards, partition
boards, exhibition display boards and false roofing.

The Company's product application range is thus for electrical usage, transmission of voice, data and images (contents) for domestic,
commercial and industrial applications to electrical products, touching every person in his daily life.

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 39th
Annual Report 2006-07

2007 2006
Others Copper Rods Others Copper Rods
2% 13% 2% 10%
Sheets Sheets
1% 1%
Communication Cables Communication Cables
15% 23%

JFTCs 3% JFTCs 12%

Electrical Cables Electrical Cables

69% 64%

2. REVIEW OF OPERATIONS:
l Production of metal based electrical and communication cables during the year under review was at 1,565 TCKM (thousand core
kilometers) (previous year : 2,505 TCKM). Production of optic fibre cables during the year was 20,547 cable kilometers (previous
year : 21,733 cable kilometers). The sale value of electrical cables increased by 47% and the sale of communication cables was
lower by 8% (due to moderate JFTC business) over the earlier year.
l The sale of CCC rods (net of interdivisional transfers) was at Rs. 1,526.408 million.
l Exports were higher at Rs. 672.532 million as against Rs. 368.402 million of the earlier year.
l The income from operations (including excise duty) was higher at Rs. 11,859.227 million for the year under review as compared to
Rs. 8,615.224 million for the earlier year.
l Profit after tax was higher at Rs. 689.930 million against Rs. 503.688 million for the earlier year.
l To leverage on high brand equity and the existing well entrenched distribution network, the Company launched two electrical
products namely electrical switches called 'Finoswitch' and CFLs called 'Finoglow' during the year.
l The Company decided to set up a green field manufacturing facility for light duty electrical cables and electrical switches near
Roorkee in the State of Uttarakhand.
l ECB equivalent to USD 30 million was contracted to meet a part of the funds requirement for capital expenditure.
l The equity shares were subdivided into face value of Rs.2 each from the face value of Rs.10 each, effective 16th January, 2007.
l The Company received recognition as a Consumer Superbrand as well for 2006-07.
l Six sigma initiative was launched.
l A reference may please be made to the financial statements.

3. KEY STRENGTH AREAS

3.1 Leading Manufacturer
The Company is India's leading manufacturer of electrical and communication cables with a wide product range. This status not only
helps the Company in term of economies of scale, but also as a market leader, it is well positioned to reach out to new customers, both
domestic and international.
3.2 Technical Superiority of Products
The Company lays a lot of emphasis on maintaining superiority status in terms of quality and product features through in-house
research and development. The Company has defined quality assurance processes and strives for improvement in products. This
product advantage is key reason why the Company has been able to carve out a niche position for itself in the market.
3.3 Extensive Distribution Network
The Company has created a strong and dependable distribution network of channel partners and dealers, spreading across the
country. The distribution network also includes commission agents/dealers appointed in the overseas market. The intention is to
service the customer at his doorstep. Not only has the distribution network been built, but the Company also undertakes a periodical
review of it for upgradation and expansion. The domestic distribution network is well supported by branch offices and depots opened
by the Company at a number of locations throughout the Country.

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 Finolex
Cables Limited

3.4 Backward Integration

The Company manufactures CCC rods used as principal raw material for copper based electrical and communication cables. The
Company makes its own compounds using PVC resin of different grades and formulations tailored specially for high performance
cables. The Company manufactures FRP rods and draws its own fibre for fibre optic cables. These backward integration measures
help in product differentiation and facilitate maintaining desired quality of products for superior consistent performance besides
ensuring timely supply of the raw material.
3.5 Unique Practices
The Company has pioneered many unique practices followed in the cable industry. The Company runs an enrollment scheme for
electricians who qualify for performance based incentives. The Company grants personal accident insurance cover as one of the key
incentives.
The Company has arranged for bank finance under a channel finance scheme to facilitate trade cycle of the channel partners. The
bank lends money to the channel partners on soft terms and for extended duration. The credit is strictly regulated by the Company.
The channel finance scheme is in vogue for over last five years and is run without recourse to the Company.
3.6 ERP System
The Company uses the best of breed technology SAP R/3 software, the most widely used ERP software in the world, to manage its
internal processes. All the manufacturing plants, branch offices and stock-points of the Company are connected to the SAP-ERP
system through leased data circuits 24 X 7. This provides cohesiveness and efficiency in handling of business operations. To dovetail
its processes with the distributor's internal processes, the Company has extended some of the functionalities of SAP ERP to its
distributors through a CRM application by virtue of which a distributor can place an order directly, check the order execution status,
verify the credit status, etc.
3.7 Superbrand Status
The Company is the only Indian cable company to hold Superbrand status.
3.8 Six Sigma
The Company has initiated Six Sigma exercise at the manufacturing locations and support functions like purchase, sales, finance,
human resource development and administration etc. The financial benefits will accrue from time to time; however, more importantly,
Six Sigma will guide the Company through a disciplined methodology to focus on solving greatest business challenges before it.
3.9 Export potential
The Company's products meet the requirement of international standards and thus are capable of geographical penetration. The
Company has its presence in the international market for sometime now. The Company has been exporting light duty electrical
cables, LAN cables, optic fibre cables and a variety of customised cables. With the best technology products in its armoury, the
Company is putting a greater thrust on exports.
3.10 Total Cable Solution
The Company is probably the only one of its kind in the country to offer a “Total Cable Solution”. Different types of electrical cables are
produced using copper as the core conductor. Various types of communication cables are produced using copper as well as optic
fibre as the primary medium of transportation of signals. Different types of low voltage power cables are produced using aluminum or
copper as the core conductor. The Company keeps on introducing new cable varieties besides upgrading the existing cable varieties.
The Company has the ability to produce customised cables.
The Company had introduced electrical products namely electrical switches and CFLs which are germane to electrical cable business
of the Company. Due to its product portfolio, the Company has the advantage of operating in multiple market segments
simultaneously. The Company is well placed to leverage its position for a distinct competitive advantage.

4. GROWTH DRIVERS
The Company enjoys the leadership position on account of its committed efforts in the following main areas :
l Product quality
l Product improvement
l Competitive pricing and cost structure
l Timely supply and servicing
l Expansion of existing business
l Development of new products
l Undertaking of new businesses
l Market development, penetration and visibility
l Creating customer preference
l Dynamic approach to situations

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Annual Report 2006-07

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

5.1 Electrical Cables

Electrical cables can be further categorised into light duty electrical cables and power & control cables.
i) Light duty electrical cables include electrical wires used extensively for lighting. The main product of this category is 1100 volts
PVC insulated wires which find application in electrification of residential, commercial and industrial establishments, electrical
panel wiring and consumer electrical goods. The building industry is expanding. The growth in construction activity is fuelled by
demand created by rising income levels and availability of finance. Due to higher personal income, people are wanting to spend
money for betterment of living standard. Thus, the demand for white goods is also on rise. There is a favourable demographic
effect in India which is causing spending to go up. The spending within India is causing an economic upturn, which is attracting
foreign investment into the country. The legal framework is undergoing a change to support growth momentum. In form and
substance, the market place is growing deeper and wider for this variety of electrical wires.
India has emerged as a manufacturing hub for auto components. The demand for auto components is for domestic consumption
as well as exports. The domestic demand for automobiles is constantly increasing due to positive income effect. India has low
cost producer's advantage. Thus global companies have set up auto-wire harness manufacturing capacity in India. The
Company manufactures automobile wires according to international standards such as German VDE Standards, Japanese JIS
Standards, etc. Thus the Company has emerged as a reliable and preferred source of automobile wires for auto-wire harness
manufacturers.
A large population in India is still dependent for their living on agriculture. Farming continues to depend upon monsoon.
Monsoon water is harvested by trapping it underground and is drawn for irrigation during non-monsoon period. The drawing of
water happens by virtue of a submersible pump. The motor of the submersible pump is wound with the winding wire and the
pump is powered through a 3 core flat cable. Both these products are manufactured by the Company for sale within the country
as well as for exports.
UPS cables are battery backup cables used for providing power from UPS to the consumption points. In a power shortage
economy like India, UPS has become a household item.
The Company is expanding its production base of light duty electrical cables by setting up manufacturing facility near Roorkee in
the Uttarakhand State.
ii) The other category of electrical cables namely the power & control cables are also manufactured by the Company. Currently, the
Company manufactures power cables upto 3.3 KV rating. These are heavy duty, low voltage cables meant for underground
application. They are used for connecting the user point to the main supply of power. The Company has decided to expand its
product portfolio in this category and take a larger pie in the growing market. Thus the Company is setting up a manufacturing unit
for high voltage power cables upto 66 KV rating. The high voltage power cables to be manufactured by the Company will be
insulated ones and are meant for use in underground application for intra-city electricity distribution network. These cables will
meet the requirements of international standards.
Performance
For the year under review, the electrical cables registered sales of Rs. 8,132.680 million against Rs. 5,527.748 million of the
previous year showing a growth of 47%. The growth is satisfactory; however, there exists scope for doing more business.
Outlook
Since last few years, the electrical cables business has become the backbone of the Company. It accounted for 69% of total sales for
the year under review. The demand for electrical cables has been stronger than ever before. The high rate of economic growth is
reflecting into accelerated growth of basic industry like construction, agriculture, electricity manufacturing and distribution. The
economic growth is creating opportunities for jobs as well as for earning higher levels of income. Money earned is either saved or
spent. Spending is becoming a way of life especially with the younger population whose proportion in the total population is quite
sizeable. Spending will keep the rate of economic growth high for times to come. There is a favourable co-relation between economic
growth and growth in electrical cable business. The system of VAT has been embraced by many states. The Company expects that
the difference in VAT rates amongst states will be removed and a uniform rate of VAT will be adopted for the entire nation. VAT has
reportedly benefited the state government with higher tax collection. Stricter is the compliance of VAT, better it is for the organised
sector, especially branded products. Thus the business of electrical cables is expected to grow.
The Company is the leading manufacturer of electrical cables in the country. Therefore, it acts responsibly and responsively with the
customers. The Company emphasises on product quality. It brings improved products and new products to the customers, time and
again. It believes in customer servicing. To meet this objective, it is constantly upgrading and expanding its distribution network. The
Company reacts dynamically to business opportunities. It endeavours to carve out niche market for its products by creating customer
preference not only domestically but in the overseas market also. The Company understands the value of its brand 'Finolex'. It
constantly acts in furtherance of the brand value. The Company is confident of holding and furthering the lead position in business.
The Company faces two principal risks in this business. The Indian electrical cable industry is characterised by a large unorganized
sector. Besides, there are smaller, regional players creating electrical cables business to be highly competitive. The first and foremost
risk the Company faces is of competition from unorganized sector and smaller and regional players. The Company has been able to

19
 Finolex
Cables Limited
deal with the competition effectively due to its superior quality and with the help of the goodwill enjoyed by it with customers. The
Company has the advantage of economies of scale and backward integration. The Company evolves unique practices which set
benchmarks in cable business. The system of VAT is helping to curb unorganised sector. The other risk is of raw material price
movements which can occasionally be sharp. The Company has been fair in its dealing with the customers. It takes appropriate
pricing decisions for the manufactured products in line with the variations in raw material prices. However, there remains a time lag
between movement in raw material price and adjustment of sale price. The time lag could benefit or disbenefit the Company for the lag
period or otherwise.

5.2 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, 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. They are mainly used as trunk
cables in long distance networks, whether by telecom companies, multiservice organisations 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, penetration of which in India is low. The demand for JFTCs has remained flat for last few years. In fact for the
year under review, there was no traditional JFTC business with public sector telecom companies due to lack of tender from these
companies. However, the Company continues to manufacture JFTCs especially with broadband features for private sector
telecom companies and to meet the export demand. The Company has the capability to make JFTCs as per customer's needs.
Performance:
The communication cables segment (including optic fibre) recorded sales of Rs. 1,794.804 million for the year under review against
Rs. 1,952.191 million for the earlier year. The sales were lower due to moderate JFTC business.
Outlook:
India is marching towards achieving the status of a developed nation. While in crusade for development, the economic activity is
expected to improve on year-on-year basis. It would mean GDP of the country would keep on growing. The growth in GDP will bring
better living and higher income for the population. The economic development presupposes availability of a stable, sturdy and
dependable communication network. The speed and bandwidth are the essence of a communication network and determine the
effectiveness thereof. The emerging economic environment augurs well for the Company's domestic business of state of art, new
generation communication cables. On the export front, the Company's communication cables conform to international standards
and the LAN cables even are accredited with UL (Underwriters' Laboratories Inc., USA) verification status. There is good potential to
grow on export business. The Company is focusing on developed countries for export market development.
The risks of competition and copper price movements similar to the electrical cables business are also applicable to the business of
communication cables. The global demand-supply equation of optic fibre and resultant price movement thereof; availability of
preforms and price thereof and the investment by telecom companies/service providers into optic fibre network are the risk factors for
optic fibre cables business.

5.3 Copper Rods

The copper rods is the feed stock for copper based electrical and communication 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
supply agreements. A smaller portion of the requirement of copper cathodes is imported as a risk diversification measure. After
meeting the inhouse requirement of copper rods, the balance production of copper rods is allocated for third party sale.
Performance:
During the year under review, the CCC rods division recorded a production volume of 16,654 metric tonnes and sales of Rs.
6,204.034 million, of which Rs. 4,677.626 million were inter-divisional transfers and Rs. 1,526.408 million were sales to others. The
year under review noticed a great deal of volatility in copper prices. The monthly average LME copper price (CSP) varied between a
high of US dollars (USD ) 8,046 per metric tonne to a low of USD 5,670 per metric tonne.
Outlook:
It is the Company's intention to increase the copper rod production by incrementing the captive consumption. The Company has
already planned and will keep on planning for cable capacity expansion to aid producing more copper rods at the Usgaon plant. The
Company is also preparing for increasing sales of copper rods to other consumers.

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Annual Report 2006-07

5.4 Electrical Switches and CFLs

The Company launched electrical switches and CFLs in the months of June 2006 and August 2006 respectively. These electrical
products have been accepted by the market. The establishment and stabilization process for these products is continuing and the
Company expects to carve out a fair market share for these products in the near future. With the economy in general and
infrastructure & construction industry in particular booming, these electrical products enjoy good demand. There is an element of
substitution effect also. The Company will be able to make optimum utilisation of its inherent strengths like brand name, distribution
network, etc to market the new products. Since this is a related business for the cables manufactured by the Company, it expects to
penetrate the market by a focus on advertising of the products.

5.5 PVC Sheets

PVC Sheets may be classified as corrugated, flat sheets and rigid sheets. Corrugated sheets are used for roofing. Flat sheets are
used for partition, exhibition, false roofing, wall cladding, display board and signage. The Company also manufactures rigid sheets
which find application in chemical industry for manufacture of tanks and other handling system for corrosive chemicals and gasses.
PVC sheets are light in weight, anti-corrosive and clean. The Company manufactures them in various thicknesses, profiles and
colours. PVC sheets are meant for substituting asbestos sheet (which may be carcinogenic) and metal sheets (which are corrosive).
Performance:
During the year under review, the PVC Sheets division recorded production volume at 1,570 metric tonnes as against 1,377 metric
tonnes for the earlier year. The sales were Rs148.896 million, as against Rs.132.958 million, for the earlier year.
Outlook:
The sale of PVC sheets, though growing marginally, is not accelerating as expected due to cheaper albeit non-recommended
substitutes like asbestos and metal sheets being available in the domestic market. Early signs of change in market preference
nevertheless have been noticed. Overseas, PVC sheets remain a preferred option. The Company is therefore making efforts to
establish itself in the overseas markets. The establishment process is progressing at a modest pace since these markets are price
competitive and operate on extended credit terms. The Company has been able to compete globally on quality norms.

5.6 Summary
The Company's domestic business is closely related to the economic activity and infrastructure development. Better is the economic
activity and higher is the spending for infrastructure development, better are the growth prospects for cables and electrical products
businesses. Copper rod is a derivative of increase in business of copper based electrical and communication cables. Business of
PVC sheets is linked to change in preference of the customers for better quality product. The legal infrastructure like introduction and
implementation of VAT system will provide a level playing field for the Company to compete against unorganised sector. The
economies of scale and evolution of better and unique business practices complemented by expansion and deepening of distribution
network will help to compete with regional and smaller players. Expansion of product portfolio like high voltage power cables,
electrical switches and CFLs will facilitate penetrating newer markets. Conformation to global standards and international
accreditions will help to establish in overseas market. Evaluating the emerging business environment, the Company is confident of
an appreciable growth in its performance for foreseeable future.
The Company has set in motion ambitious growth plans for the current financial year. The Company is committed to devote
resources to help in realising the set business goals.

6. RISK MANAGEMENT DOCUMENT :

The Company has a Risk Management Document in place. The Document defines the risk policies, lays out the risk strategies and
methodology to decide on the risk taking ability of the organisation. The Document has been created with the intention to bring in an
awareness about various risks associated with the business of the Company.
The risk management process involves risk identification, risk measurement, risk prioritisation, risk monitoring, risk escalation and
risk mitigation. This Document sets out the infrastructure for risk management.

7. INTERNAL CONTROL SYSTEM :

The Company has established a system of internal controls commensurate with its size and nature of business operations. The
internal control system enables exercise of control over the transactions in the desired manner and at the desired level. The internal
control system comes up for review periodically and wherever required is upgraded from time to time. In addition to internal control
system, there exists a system of internal audit. The internal audit is conducted under the guidance and advice of the Audit Committee
comprising of independent directors. The internal audit thus plays an important role as it conducts audit of all key business areas as
per a predrawn and approved audit plan. The internal audit, amongst other things, looks at internal controls, reports to the Audit
Committee non-compliances and gives suggestions for strengthening the internal controls. All audit observations, reviews and
followup actions are reported to the Audit Committee. The Audit Committee met six times during the year under review.

21
 Finolex
Cables Limited
Financial summary for ten years
(Rs. in million)
1997-98 1998-99 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
PROFIT AND LOSS
ACCOUNT DATA
Gross Revenue ++ 4,609 4,656 5,761 6,279 6,750 5,189 5,689 6,701 8,899 12,055
Materials and
manufacturing cost
(including excise duty) 2,974 3,023 3,922 4,313 4,876 3,682 4,132 5,191 6,855 9,557
Employee cost 121 158 189 230 261 251 292 254 326 355
Administration & selling
expenses 325 290 372 424 502 493 461 520 660 750
Extra ordinary Items — — — — — — 37 —- — —
Depreciation 132 88 150 190 222 235 263 259 313 264
Interest and finance
charges 358 237 181 196 164 246 178 106 128 159
Profit before tax 699 860 947 926 725 282 326 371 617 970
Taxation 213 240 240 201 65 35 30 63 113 280
Profit after tax 486 620 707 725 660 247 296 308 504 690
Dividend (including tax
on dividend distribution
if applicable) 119 140 286 284 230 104 138 157 209 251

BALANCE SHEET DATA

Share capital 180 180 343 343 343 306 306 306 306 306
Reserves 5,029 5,509 5,103 5,545 5,526 4,923 5,080 4,702 5,055 5,495
Net worth 5,209 5,689 5,446 5,888 5,869 5,229 5,386 5,008 5,361 5,801
Loan Funds 1,982 1,126 1,190 1,047 1,223 2,036 1,880 1,321 2,343 2,653
Deferred Tax (Net) — — — — 213 285 295 184 213 208
Total Liabilities 7,191 6,815 6,636 6,935 7,305 7,550 7,561 6,513 7,917 8,662
Gross Block 1,458 1,605 2,733 3,102 4,211 4,596 4,777 4,126 4,753 5,807
Net Block 826 948 1,866 2,049 2,872 3,074 3,006 2,118 2,288 3,079
Investments 1,739 1,758 1,719 2,137 2,012 2,318 3,067 2,491 2,722 2,833
Net current assets 4,605 4,109 3,051 2,749 2,421 2,144 1,488 1,904 2,907 2,750
Micellaneous Expenditure
(to the extent not written
off or adjusted) 21 — — — — 14 — — — —
Total Assets 7,191 6,815 6,636 6,935 7,305 7,550 7,561 6,513 7,917 8,662

KEY RATIOS
Growth in Revenue (%) (4.1) 1.0 23.8 9.0 7.5 (23.1) 9.6 17.8 32.8 35.5
PAT to Revenue (%) 10.5 13.3 12.3 11.5 9.8 4.8 5.2 4.6 5.7 5.7
Return on Net Worth (%) 9.3 10.9 13.0 12.3 11.2 4.7 5.5 6.2 9.4 11.9
Earnings per Share (Rupees) 5.4 6.9 4.1 4.2 3.8 1.6 1.9 2.0 3.3 4.5
(for face value of Rs. 2/- each)
Asset Turns (Revenue to
Total Assets) 0.6 0.7 0.9 0.9 0.9 0.7 0.8 1.0 1.1 1.4
Return on Capital
Employed (%) 13.2 14.5 16.3 16.3 12.3 6.2 6.5 6.7 10.1 13.5
Debt to Equity Ratio 0.4 0.2 0.2 0.2 0.2 0.4 0.4 0.3 0.4 0.4
Dividend (incl. Dividend
Tax) Distribution to PAT(%) 24.5 22.6 40.5 39.1 34.8 41.9 46.7 51.0 41.5 36.3

Note :
++ Comprises Income From Operations(including excise duty) and Other Income

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 39th
Annual Report 2006-07

Auditors' Report
To the Members of Finolex Cables Limited.

We have audited the attached Balance Sheet of Finolex Cables Limited as at 31st March 2007, and also the Profit and Loss Account and the Cash
Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company's management.
Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.

We report as follows:

1. As required by the Companies (Auditor's Report) Order, 2003, issued by the Central Government of India, in terms of Section 227(4A) of the
Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in the paragraphs 4 and 5 of the said Order.

2. Further to our comments in the Annexure referred to in paragraph 1 above:

a) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes
of our audit;

b) In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of
the books and proper returns adequate for the purposes of our audit have been received from the branches not visited by us;

c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of
account;

d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956;

e) On the basis of the written representations received from the Directors as on 31st March, 2007 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on 31st March, 2007 from being appointed as Director in terms of clause
(g) of sub section (1) of Section 274 of the Companies Act, 1956;

f) In our opinion, and to the best of our information and according to the explanations given to us, the said accounts, read together with the
Company's Accounting Policies and the Notes thereto give the information required by the Companies Act, 1956 in the manner so
required and give a true and fair view in conformity with the accounting principles generally accepted in India:

i) in the case of the Balance Sheet, of the state of affairs of the Company as on 31st March, 2007

ii) in the case of the Profit and Loss Account, of the Profit of the Company for the year ended on that date; and

iii) in the case of Cash Flow Statement, of the cash flows for the year ended on that date.

For B. K. KHARE & CO.

Chartered Accountants

U. B. Joshi
Place : Pune Partner
Dated : 10th May, 2007 Membership No. 44097

23
 Finolex
Cables Limited
Annexure to the Auditors’ Report
Referred to in paragraph 1 of our Report of even date:

i. a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
b) All the assets have not been physically verified by the management during the year but there is a regular programme of verification, which in
our opinion, is reasonable having regard to the size of the Company and the nature of its assets. The Company has substantially completed
the reconciliation of Physical Inventory of Fixed Assets with book records.
c) During the year, Company has not disposed of any substantial/major part of fixed assets.

ii. a) As explained to us, the inventory has been physically verified during the year by the management. In our opinion, the frequency of
verification is reasonable.
b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of the Company and the nature of its business.
c) In our opinion and according to the information and explanations given to us and on the basis of our examination of the records of inventory,
the Company is maintaining proper records of inventory. The discrepancies noticed on physical verification of inventory as compared to the
book records were not material and have been properly dealt with in the books of account.

iii. According to the information and explanations given to us, the Company has neither granted nor taken any loans, secured or unsecured to or
from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956.

iv. In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate
with the size of the Company and nature of its business with regard to the purchase of inventory and fixed assets, and with regard to the sale of
goods. During the course of our audit, no major weakness has been noticed in the internal controls.

v. In respect of transactions entered in the register maintained in pursuance of section 301 of the Companies Act 1956,
a) Based on audit procedures applied by us, to the best of our knowledge and belief and according to the information and explanations given to
us, we are of the opinion that the particulars of contracts or arrangements have been entered in the register required to be maintained under
Section 301.
b) According to the information and explanations given to us and excluding certain transactions of purchase of goods and material of special
nature for which alternate quotations are not available, in our opinion, the contracts or arrangements have been made at prices which are
prima facie reasonable having regard to the prevailing market prices at the relevant time.

vi. In our opinion and according to the information and explanations given to us, the Company has not accepted deposits from the public and
therefore, the provisions of Section 58A and 58AA or any other relevant provisions of the Companies Act, 1956 and Rules there under are not
applicable to the Company.

vii. In our opinion, the Company has an internal audit system commensurate with the size and the nature of its business.

viii.We have broadly reviewed the books of account maintained by the Company relating to the manufacture of cables, conductors and Compact
Florescent Lamps pursuant to the rules made by the Central Government for the maintenance of cost records under Section 209(1)(d) of the
Companies Act, 1956 and are of the opinion that prima facie the prescribed accounts and records have been maintained. We have not,
however, made a detailed examination of the records with a view to determining whether they are accurate or complete.

ix. a) According to the records of the Company and information and explanations given to us, the Company has been regular in depositing
undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees’ State Insurance, Income Tax,
Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, cess and other statutory dues with the appropriate authorities during the
year.
b) According to the records of the Company and information and explanations given to us, dues of Income Tax, Sales Tax, Wealth Tax, Service
Tax, Customs Duty, Excise Duty and cess which have not been deposited on account of disputes and the forum where dispute is pending as
under:

24
 39th
Annual Report 2006-07

Name of the Nature of dues Amount Period to which Forum where dispute is
statute (Rs.in Million) amount relates pending

Sales Tax Act Sales Tax demand 0.333 F.Y. 1992 -1993 Appellate Tribunal
Sales Tax demand 0.656 F.Y. 1993 -1994 Deputy Commissioner (Appeals)
Income Tax Act, Tax 8.530 A.Y. 2003 - 2004 Commissioner Income Tax (Appeals)
1961

x. The Company does not have accumulated losses as at the end of the year and the Company has not incurred cash losses during current and
the immediately preceding financial year.

xi. Based on our audit procedures and on the basis of information and explanations given by the management, we are of the opinion that the
Company has not defaulted in the repayment of dues to financial institutions, banks and debenture holders.

xii. According to the information and explanations given to us, the Company has not granted any loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.

xiii. The provisions of any Special Statute applicable to Chit Fund, Nidhi or Mutual Benefit Fund/Societies are not applicable to the Company.

xiv. (a) Based on the records examined by us and according to the information and explanations given to us, we are of the opinion that the
Company is maintaining proper record of the transactions and contracts of dealing in shares and securities and that timely entries have
been made in these records.
(b) Based on our audit procedures and to the best of our knowledge and belief and according to the information and explanation given to us,
the shares and securities have been held by the Company in its own name.

xv. According to the information and explanations given to us, the Company has not given any guarantee for loan taken by others from banks and
financial institutions.

xvi. To the best of our knowledge and belief and according to the information and explanation given to us, term loans availed by the Company
were, prima facie, applied by the Company during the year for the purposes for which the loans were obtained.

xvii. According to the Cash Flow Statement and records examined by us and according to the information and explanations given to us, on overall
basis, funds raised on short-term basis have, prima facie, not been used during the year for long-term investment .

xviii. The Company has not made any preferential allotment to parties and companies covered under register maintained under Section 301 of the
Companies Act, 1956, during the year and the question of whether the price at which the shares have been issued is prejudicial to the interest
of the Company does not arise.

xix. According to the information and explanations given to us and the records examined by us, security or charge has been created in respect of
the debentures issued.

xx. The Company has not raised money by any public issues during the year and hence the question of disclosure and verification of end use of
such money does not arise.

xxi. To the best of our knowledge and belief and according to the information and explanation given to us, no fraud on or by the Company was
noticed or reported during the year.

For B. K. KHARE & CO.

Chartered Accountants

U. B. Joshi
Place : Pune Partner
Dated : 10th May, 2007 Membership No. 44097

25
 Finolex
Cables Limited
Balance Sheet
as at 31st March, 2007
(Rs. in million)
Schedule 2007 2006
Sources of Funds
Shareholders' Funds :
Share Capital 1 305.879 305.879
Reserves & Surplus 2 5,494.818 5,055.392
5,800.697 5,361.271
Loan Funds :
Secured Loans 3 1,976.875 1,361.035
Unsecured Loans 4 676.471 982.144
2,653.346 2,343.179
Deferred Tax Credit (Net) 208.449 213.072
Refer Note 5 - Schedule 15
8,662.492 7,917.522
Application of Funds
Fixed Assets : 5
Gross Block 5,806.540 4,753.461
Less : Depreciation 2,727.107 2,465.622
Net Block 3,079.433 2,287.839

Investments 6 2,833.152 2,722.387

Current Assets, Loans & Advances : 7
Interest Accrued on Investments 0.127 1.873
Inventories 1,923.026 2,084.345
Sundry Debtors 788.046 759.138
Cash & Bank Balances 610.720 592.426
Loans & Advances 3,271.743 2,907.526
6,593.662 6,345.308
Less: Current Liabilities and Provisions : 8
Liabilities 1,014.781 933.028
Provisions 2,828.974 2,504.984
3,843.755 3,438.012
Net Current Assets 2,749.907 2,907.296
8,662.492 7,917.522

Notes 15
As per our report of even date P. P. Chhabria D.K. Chhabria
Chairman Managing Director
For B. K. KHARE & COMPANY Dr. H.S. Vachha V. K. Chhabria
Chartered Accountants B. G. Deshmukh Dy. Managing Director
R.G.D'Silva Sanjay K. Asher M. L. Jain
U.B. Joshi Company Secretary & P. G. Pawar Asst. Managing Director and
Partner Asst. Vice President (Legal) Chief Operating Officer
Membership No. 44097 P.B. Parasnis
Asst. Managing Director and
Chief Financial Officer
Pune : 10th May, 2007 Pune : 10th May, 2007

26
 39th
Annual Report 2006-07

Profit and Loss Account

for the year ended 31st March, 2007
(Rs. in million)
Schedule 2007 2006
Income:
Income from Operations 9 11,859.227 8,615.224
Less : Excise Duty 1,529.016 1,137.381
10,330.211 7,477.843
Other Income 10 196.042 283.821
10,526.253 7,761.664
Expenditure :
Materials & Manufacturing 11 8,027.519 5,717.792
Personnel Expenses 12 355.321 326.342
Other Expenses 13 749.571 659.991
Finance Charges 14 159.247 127.867
Depreciation 264.288 313.164
9,555.946 7,145.156
Profit Before Tax 970.307 616.508
Less : Provision for Taxation
Current Tax 280.000 78.100
Deferred Tax (Net) (4.623) 28.720
Fringe Benefit Tax 5.000 6.000
Profit After Tax 689.930 503.688
Add : Surplus brought forward 113.101 120.395
Add : Debenture Redemption Reserve written back – 500.000
Less : (Profit) / Loss of erstwhile subsidiary companies (Net) – 51.715
Balance Available for Appropriation 803.031 1,072.368
Appropriations
Debenture Redemption Reserve 100.000 350.000
Proposed Dividend 214.115 183.527
Tax on Proposed Dividend 36.389 25.740
General Reserve 300.000 400.000
650.504 959.267
Surplus Carried to Balance Sheet 152.527 113.101
Earnings Per Share
Basic / Diluted (face value Rs.2 each) 4.51 3.29
Profit after Tax available for equity shareholders 689.930 503.688
No. of Shares used in computing Earnings per Share (Basic / Diluted) 152,939,345 152,939,345

Notes 15
As per our report of even date P. P. Chhabria D.K. Chhabria
Chairman Managing Director
For B. K. KHARE & COMPANY Dr. H.S. Vachha V. K. Chhabria
Chartered Accountants B. G. Deshmukh Dy. Managing Director
R.G.D'Silva Sanjay K. Asher M. L. Jain
U.B. Joshi Company Secretary & P. G. Pawar Asst. Managing Director and
Partner Asst. Vice President (Legal) Chief Operating Officer
Membership No. 44097 P.B. Parasnis
Asst. Managing Director and
Chief Financial Officer
Pune : 10th May, 2007 Pune : 10th May, 2007

27
 Finolex
Cables Limited
Cash Flow Statement for the year ended 31st March, 2007
(Rs. in million)
2007 2006
A. Cash Flow from Operating Activities
Net profit Before Tax 970.307 616.508
Adjustments for :
Depreciation (Net) 264.288 313.164
Income from Investments (148.465) (195.697)
Loss / (Profit) on Sale of Fixed Assets (1.361) 7.601
Loss / (Profit) on Sale of Investments (15.826) (74.432)
Expenses in respect of Financing Activity :
Interest on Fixed Period Loans 58.738 42.292
157.374 92.928
Operating Profit before Working Capital Changes 1,127.681 709.436
Adjustments for Working Capital Changes :
Current Assets 126.654 (1,296.849)
Current Liabilities 83.573 511.196
210.227 (785.653)
Cash generated from Operations 1,337.908 (76.217)
Tax refund / (Paid) (356.714) (135.454)
Net Cash Flow from Operating Activities 981.194 (211.671)

B. Cash Flow from Investing Activities

Income from Investments 148.465 195.697
Inflow from / (Additions to) Investments 7.450 (392.101)
Additions to Fixed Assets (1,054.522) (490.630)
Reserves & Surplus of erstwhile subsidiaries, on merger – 58.613
Extinguishment of investments in Subsidiaries, on merger – 710.092
Net Cash Flow from Investing Activities (898.607) 81.671

C. Cash Flow from Financing Activities

External Commercial Borrowings 850.000 –
Short Term Acceptances (284.523) 327.345
Fixed Deposits – (0.011)
Sales Tax Deferral Loan – 0.463
Dividend & dividend tax paid (205.553) (152.998)
Interest on Fixed Period Loans (58.738) (42.292)
Net Cash Flow from Financing Activities 301.186 132.507

28
 39th
Annual Report 2006-07

Cash Flow Statement for the year ended 31st March, 2007 (Contd.)
(Rs. in million)
2007 2006
D. Increase / (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents
Opening Balance 349.554 347.047
Closing Balance 733.327 349.554
Net Increase / (Decrease) in Cash and Cash Equivalents 383.773 2.507

Notes :
1) The above Cash Flow Statement has been prepared under the “Indirect Method” as set out in the Accounting Standard 3 on Cash
Flow Statement issued by ICAI
2) Previous year figures have been regrouped wherever necessary to conform to current year's classification.

As per our report of even date P. P. Chhabria D.K. Chhabria

Chairman Managing Director
For B. K. KHARE & COMPANY Dr. H.S. Vachha V. K. Chhabria
Chartered Accountants B. G. Deshmukh Dy. Managing Director
R.G.D'Silva Sanjay K. Asher M. L. Jain
U.B. Joshi Company Secretary & P. G. Pawar Asst. Managing Director and
Partner Asst. Vice President (Legal) Chief Operating Officer
Membership No. 44097 P.B. Parasnis
Asst. Managing Director and
Chief Financial Officer
Pune : 10th May, 2007 Pune : 10th May, 2007

29
 Finolex
Cables Limited
Schedules forming part of the Balance Sheet
(Rs. in million)

2007 2006
Schedule 1 - Share Capital
Authorised
235,000,000 Equity Shares of Rs. 2/- each 470.000 470.000
(Previous year 47,000,000 Equity
Shares of Rs. 10/- each)
3,000,000 Unclassified Shares of Rs. 10/- each 30.000 30.000
500.000 500.000
Issued & Subscribed
152,939,345 Equity Shares of Rs. 2/- each fully paid. 305.879 305.879
(Previous year 30,587,869 Equity Shares of Rs. 10/- each )
(Of the above, 146,065,520 Equity Shares are issued
as fully paid up bonus shares by capitalisation of Reserves)
(Previous year 29,213,104 Equity Shares of Rs. 10/- each) 305.879 305.879
During the year the Company has subdivided the Rs. 10/- share into 5 shares
of Rs. 2/- each. Consequently 30,587,869 shares of Rs.10/- each have become
152,939,345 shares of Rs.2/- each w.e.f 16th January, 2007.

Schedule 2 - Reserves & Surplus

Capital Reserve
as per last Balance Sheet 84.079 1.781
Add : On amalgamation with erstwhile Finolex Wire Products Ltd. and — 82.298
Finolex Finance Ltd.
84.079 84.079

Share Capital Buyback Reserve

as per last Balance Sheet 55.183 55.183
55.183 55.183
Share Premium
as per last Balance Sheet 1,090.955 1,090.955
1,090.955 1,090.955

Debenture Redemption Reserve

as per last Balance Sheet 100.000 250.000
Add : Transferred from Profit & Loss Account 100.000 350.000
200.000 600.000
Less : Transferred to Profit & Loss Account — 500.000
200.000 100.000
General Reserve
as per last Balance Sheet 3,612.074 3,184.044
Add : Balance of erstwhile Finolex Finance Ltd.as on 1st April, 2005 — 23.910
Add : Special Reserve of erstwhile Finolex Finance Ltd. no longer
required, transferred to General Reserve — 4.120
Add : Transferred from Profit & Loss Account 300.000 400.000
3,912.074 3,612.074
Surplus in Profit & Loss Account 152.527 113.101
5,494.818 5,055.392

30
 39th
Annual Report 2006-07

Schedules forming part of the Balance Sheet

(Rs. in million)
2007 2006

Schedule 3 - Secured Loans

Term Loans:
Long Term Loans:
Non-Convertible Debentures
7.60% L-Series 500.000 500.000
External Commercial Borrowings 850.000 —
1350.000 500.000
Short Term Loans from Banks:
Foreign Currency Demand Loans 212.500 682.575
Packing Credit 414.375 178.460
626.875 861.035
1,976.875 1,361.035

Notes:

Particulars Redemption Tenor Repayment

condition schedule
a) Debentures - L Series At par 5 years Lumpsum on 11th August, 2010

b) External Commercial
Borrowings At par 5 years Lumpsum on 27th March, 2012

Security:
(i) Debentures - L Series
(ii) External Commercial Borrowings
(iii) Short Term Loans from Banks
First pari-passu charge on the immovable properties of JFTC Goa Division and premises
situated at Ahmedabad.
First pari-passu charge on all the immovable / movable fixed properties of the Company,
both present and future, save and except properties to be excluded as agreed to by the
lenders. Security yet to be created.
Hypothecation of inventories and book debts.

Schedule 4 - Unsecured Loans

Acceptances (Short Term)- Banks 227.678 512.201
Deferred Sales Tax Loan 23.793 23.793
Short Term Foreign Currency Loans from Banks 425.000 446.150
676.471 982.144

31
 (Rs. in million)

Balance Deductions Gross Block Balance For the Deductions Total Depre- Balance Balance
as at as at as at Year ciation as at as at as at
1.4.2006 31.3.2007 1.4.2006 31.3.2007 31.3.2007 31.3.2006

25.455 - - # - 25.455 25.455

Finolex
Cables Limited

Leasehold Land

184.403 8 625.934

Furniture, Fittings & Office Equipment

Computers, Peripherals & ERP System 70.402 58.678 2.992 61.670 12.915

16.266 2.373 16.674 18.890 18.058

32
127.569 127.766 0.500 0.697

4,697.861 4,755.462 2,465.622 264.288 2.803 2,727.107 2,028.355

Capital Work - in - Progress

1,051.078 - 1,051.078

5,806.540 3,079.433

Previous year

Previous year
Capital Work - In - Progress

Previous year Total

# Includes Land of Rs.1.951 million held for disposal and valued at lower of net book value and net realisable value
*Prorata cost of the assets jointly owned.
 39th
Annual Report 2006-07

Schedules forming part of the Balance Sheet

(Rs. in million)
2007 2006

Schedule 6 - Investments
Non- trade Long Term (At Cost)
Quoted Investments (Listed)
91,000 Equity Shares of Rs. 2 each fully paid in Bharat Forge Limited 1.506 1.506
(Previous year 91,000)
40,192,597 Equity Shares of Rs. 10 each paid in Finolex Industries Limited 1,518.530 1,518.530
(Previous year 40,192,597)
399,500 Equity Shares of Rs. 10 each paid in IndusInd Bank Limited 3.995 3.995
(Previous year 399,500)
[Aggregate Market Value of Quoted Investments
Rs.2,806.651 million (Previous year Rs. 2,872.680 million] 1,524.031 1,524.031

Unquoted Investments
6,100,000 Equity Shares of Rs. 10 each fully paid in I2IT Pvt 61.000 61.000
Limited (Previous year 6,100,000)
1,000,000 Equity Shares of Rs. 10 each fully paid in Plastro 10.011 4.910
Plasson Industries (India) Limited (Previous year 489,950)
3,350 Equity Shares of Rs. 10 each fully paid in Promain 0.041 0.041
Limited (Previous year 3,350)
967,700 Equity Shares of Rs. 10 each fully paid in SICOM 77.803 77.803
Limited (Previous year 967,700)
4,268 6% cumulative redeemable preference shares of 0.000 0.000
Re. 1 each in Sun Pharmaceutical Industries Limited
(Bonus Shares) (Previous year 4,268)
1,000 Equity Shares of Rs. 10 each fully paid in The Saraswat 0.010 0.010
Co-op Bank Limited (Previous year 1,000)
148.865 143.764
Less : Provision for diminution in value of shares of SICOM Ltd. 34.213 38.616
114.652 105.148

Current Investments
(Valued at lower of cost and fair value)
Quoted Invesments
4,000 Equity Shares of Rs. 10 each fully paid in Bank of Rajasthan Limited 0.155 0.177
(Previous year 4,000)
198,750 Equity Shares of Rs.10 each fully paid in BF Utilities 0.994 0.994
Limited (Previous year 198,750)
5,000 Equity Shares of Rs.10 each fully paid in Bhojwani 0.000 0.000
Leasing & Finance Limited (Previous year 5,000)
100 Equity Shares of Rs.10 each fully paid in Birla Ericsson 0.001 0.001
Optical Limited (Previous year 100)
100 Equity Shares of Rs. 10 each fully paid in Delton 0.001 0.001
Cables Limited (Previous year 100)

33
 Finolex
Cables Limited
Schedules forming part of the Balance Sheet
(Rs. in million)
2007 2006

Schedule 6 - Investments (Contd.)

5,000 Equity Shares of Rs. 10 each fully paid in Global Boards Limited 0.000 0.007
(Previous year 5,000)
3,150 Equity Shares of Rs. 10 each fully paid in ICICI Bank Limited 0.460 0.460
(Previous year 3,150)
200,000 Equity Shares of Rs. 10 each fully paid in Kirloskar Ferrous Limited 6.210 —
(Previous year Nil)
100,000 Equity Warrants in Kirloskar Ferrous Limited 0.000 —
(Previous year Nil)
— Equity Shares of Rs. 10 each fully paid in M & M Financial Services Limited — 0.267
(Previous year 1,334)
100 Equity Shares of Rs. 10 each fully paid in Nicco Corporation 0.000 0.000
(Previous year 100)
2,100 Equity Shares of Rs. 10 each fully paid in RPG Cables Limited 0.030 0.030
(Previous year 2,100)
100 Equity Shares of Rs. 10 each fully paid in Sterlite Optical Tech Limited 0.003 0.003
(Previous year 100)
100 Equity Shares of Rs. 10 each fully paid in Uniflex Cables Limited 0.001 0.001
(Previous year 100)
100 Equity Shares of Rs. 10 each fully paid in Usha Martin Infotech Limited 0.000 0.000
(Previous year 100)
100 Equity Shares of Rs. 5 each fully paid in Usha Martin Limited 0.003 0.003
(Previous year 100)
100 Equity Shares of Rs. 10 each fully paid in Vindhya Telelinks Limited 0.002 0.002
(Previous year 100)
50 Equity shares of Rs. 10 each fully paid in Wire & Wire Products Limited 0.000 0.000
(Previous year Nil)
100 Equity Shares of Rs. 10 each fully paid in ZEE Entertainment Enterprises Limited 0.014 0.014
(Previous year 100)
45 Equity Shares of Rs. 10 each fully paid in ZEE News Limited 0.000 0.000
(Previous year Nil)
— Units of Rs. 10 each of ABN AMRO Fixed Term — 20.099
Plan - Series 2- Quarterly Plan A - Dividend Reinvest
(Previous year 2,009,878)
1,000,000 Units of Rs. 10 each of ABN AMRO Fixed Term Plan 10.000 10.000
Series 2 - 13 Months plan - Growth (Previous year 1,000,000)
500,000 Units of Rs. 10 each of ABN AMRO Fixed Term Plan Series-1 Growth 5.000 5.000
(Previous year 500,000)
48,900 Units of Rs. 100 each of Benchmark Split Capital Fund Class A - Growth 5.000 5.000
(Previous year 48,900)
— Units of Rs. 10 each of Birla Cash Plus Institutional Premium - Growth — 15.000
(Previous year 1,350,962)

34
 39th
Annual Report 2006-07

Schedules forming part of the Balance Sheet

(Rs. in million)

2007 2006

Schedule 6 - Investments (Contd.)

— Units of Rs. 10 each of Birla Fixed Term Plan Quarterly — 20.000
Series 2 - Growth (Previous year 2,000,000)
2,008,182 Units of Rs. 10 each of Birla Fixed Term Plan - Series 20.082 20.082
F - Growth (Previous year 2,008,182)
1,000,000 Units of Rs. 10 each of Birla Fixed Term Plan 10.000 —
Institutional - Series R - Growth (Previous year Nil)
— Units of Rs. 10 each of Birla India Gennext — 5.000
Fund - Growth (Previous year 488,998)
1,000,000 Units of Rs. 10 each of Chola Fixed Maturity Plan - 14 10.000 10.000
Months -Cumulative (Previous year 1,000,000)
— Units of Rs. 10 each of Chola Fixed Maturity Plan — 20.000
Series 2 - Quarterly Plan II - Cumulative (Previous year 2,000,000)
— Units of Rs. 10 each of Chola FMP-Series 3 (Quarterly Plan I)- — 10.000
Growth (Previous year 1,000,000)
5,000,000 Units of Rs. 10 each of DBS Chola FMP - Series 6 - (410 Days Plan) 50.000 —
- Cumulative (Previous year Nil)
— Units of Rs. 10 each of Deutsche Fixed Maturity Series 8- Growth — 20.000
(Previous year 2,000,000)
1,000,000 Units of Rs. 10 each of Deutsche Fixed Term Fund - Series 5 - 10.000 10.000
Growth (Previous year 1,000,000)
1,000,000 Units of Rs. 10 each of Deutsche Fixed Term Fund Series 9- 10.000 10.000
Growth (Previous year 1,000,000)
— Units of Rs. 1000 each of DSP Merrill Lynch Liquidity Fund — 88.994
Institutional - Growth (Previous year 87,222)
— Units of Rs. 1000 each of DSP Merrill Lynch Fixed Term Plan — 10.030
Series 1B - Growth (Previous year 10,000)
— Units of Rs. 1000 each of DSP Merrill Lynch Fixed Term Plan Series — 10.000
1C - Growth (Previous year 10,000)
178,559 Units of Rs. 10 each of DSP Merrill Lynch Opportunity Fund - 7.600 3.000
Growth (Previous year 87,683)
57,757 Units of Rs. 10 each of DSP ML Tiger Fund - 1.822 —
Growth (Previous year Nil)
2,000,000 Units of Rs. 10 each of DWS Fixed Term Fund - 20.000 —
Series 10- Growth (Previous year Nil)
2,000,000 Units of Rs. 10 each of DWS Fixed Term Fund Series 25 - 20.000 —
Institutional - Growth (Previous Year Nil)
801,481 Units of Rs. 10 each of Fidelity Equity Fund - 12.625 12.625
Dividend (Previous year 801,481)
— Units of Rs. 10 each of Fidelity Equity Fund - — 77.224
Growth (Previous year 4,326,250)

35
 Finolex
Cables Limited
Schedules forming part of the Balance Sheet
(Rs. in million)
2007 2006

Schedule 6 - Investments (Contd.)

1,955,990 Units of Rs. 10 each of Fidelity Special Situations Fund - Dividend 20.000 —
(Previous year Nil)
— Units of Rs. 10 each of Franklin India Bluechip Fund Dividend — 12.889
(Previous year 347,313)
— Units of Rs. 10 each of Franklin India Bluechip Fund Growth — 9.430
(Previous year 84,291)
51,389 Units of Rs. 100 each of Franklin India Prima Fund - Growth 8.500 5.000
(Previous year 31,661)
1,000,000 Units of Rs. 100 each of Franklin India Smaller Companies Fund - Growth 10.000 10.000
(Previous year 1,000,000)
1,000,000 Units of Rs. 10 each of Grindlays Fixed Maturity 22nd Plan - Dividend 10.000 10.000
(Previous year 1,000,000)
1,000,000 Units of Rs. 10 each of Grindlays Fixed Maturity Plus Plan I - Plan B-Growth 10.000 10.000
(Previous year 1,000,000)
— Units of Rs. 10 each of HDFC Capital Builder- Dividend — 11.716
(Previous year 484,091)
113,708 Units of Rs. 10 each of HDFC Equity Fund - Growth 13.000 5.500
(Previous year 59,694)
— Units of Rs. 10 each of HDFC Fixed Maturity Plan - 3 Months - Growth — 10.000
(Previous year 1,000,000)
1,000,000 Units of Rs. 10 each of HDFC Fixed Maturity Plan - 13 Months - Growth 10.000 10.000
(Previous year 1,000,000)
5,000,000 Units of Rs. 10 each of HDFC Fixed Maturity Plan 15 Months 50.000 —
Feb 2007 (3) - Wholesale Plan - Growth (Previous year Nil)
— Units of Rs. 10 each of HDFC Multiple Yield Fund Plan 2005- Growth — 20.000
(Previous year 2,000,000)
135,067 Units of Rs. 10 each of HSBC Equity Fund - Growth 7.600 3.000
(Previous year 64,610)
1,000,000 Units of Rs. 10 each of HSBC Fixed Term Series 13 - Growth 10.000 10.000
(Previous year 1,000,000)
1,000,000 Units of Rs. 10 each of HSBC Fixed Term Series 4 - Growth 10.000 10.000
(Previous year 1,000,000)
— Units of Rs. 10 each of HSBC Fixed Term Series 3 - Growth — 10.000
(Previous year 1,000,000)
— Units of Rs. 10 each of HSBC Fixed Term Series VII - Growth — 20.000
(Previous year 2,000,000)
— Units of Rs. 10 each of HSBC Midcap Equity Fund - Growth — 10.000
(Previous year 977,995)
2,000,000 Units of Rs. 10 each of HSBC Fixed Term Series 23 - Growth 20.000 —
(Previous year Nil)

36
 39th
Annual Report 2006-07

Schedules forming part of the Balance Sheet

(Rs. in million)
2007 2006

Schedule 6 - Investments (Contd.)

— Units of Rs. 10 each of ING Vysya Fixed Maturity Fund- Series IX- Growth — 20.000
(Previous year 2,000,000)
— Units of Rs. 10 each of ING Vysya Fixed Maturity Fund Series VIII - Growth — 10.000
(Previous year 1,000,000)
2,000,000 Units of Rs. 10 each of ING Vysya Fixed Maturity Fund Series VII - Growth 20.000 —
(Previous year Nil)
2,000,000 Units of Rs. 10 each of ING VYSYA FMP-Series XXII - Growth 20.000 —
(Previous year Nil)
— Units of Rs. 10 each of ING Vysya Midcap Equity Fund -Growth — 10.000
(Previous year 1,000,000)
— Units of Rs. 10 each of Kotak Contra Fund - Growth — 10.000
(Previous year 1,000,000)
— Units of Rs. 10 each of Kotak FMP Series 20 - Growth — 20.000
(Previous year 2,000,000)
— Units of Rs. 10 each of Kotak FMP Series XV - Dividend — 20.221
Dividend (Previous year 2,022,056)
2,000,000 Units of Rs. 10 each of Kotak Fixed Maturity Plan 13 Months- 20.000 —
Series 1 - Growth (Previous year Nil)
— Units of Rs. 10 each of Kotak Fund of Funds - Growth — 10.000
(Previous year 977,995)
— Units of Rs. 10 each of Kotak Lifestyle Fund - Growth — 10.000
(Previous year 1,000,000)
— Units of Rs. 10 each of Kotak Liquid Institutional Premium - Growth — 19.519
(Previous year 1,383,925)
278,327 Units of Rs. 10 each of Kotak 30 -Dividend (Previous year Nil) 8.806 —
5,000,000 Units of Rs. 10 each of Lotus India FMP 15 Months Series 1- Growth 50.000 —
(Previous year Nil)
— Units of Rs. 10 each of Principal PNB Fixed Maturity Plan - — 20.072
91 Days- Series II- Growth (Previous year 2,000,000)
3,425,332 Units of Rs. 10 each of Principal Cash Management Fund - 40.000 15.000
Liquid Institutional Premium - Growth (Previous year 1,377,524)
1,000,000 Units of Rs. 10 each of Principal Deposit Fund (FMP -4-20) 10.000 10.000
385 days plan - Growth (Previous year 1,000,000)
— Units of Rs. 10 each of Principal Infrastructure & Services — 10.000
Fund- Growth (Previous year 977,995)
244,499 Units of Rs. 10 each of Prudential ICICI Equity & Derivative 2.480 —
Fund- Optimiser - Dividend (Previous year Nil)
— Units of Rs. 10 each of Prudential ICICI Fixed Maturity Plan - — 50.000
Yearly Growth- Series XXIV - Growth (Previous year 4,510,478)
2,000,000 Units of Rs. 10 each of Prudential ICICI Fixed Maturity Plan Series 20.000 —
34-15 Months- Growth (Previous year Nil)

37
 Finolex
Cables Limited
Schedules forming part of the Balance Sheet
(Rs. in million)
2007 2006

Schedule 6 - Investments (Contd.)

2,000,000 Units of Rs. 10 each of Prudential ICICI Fixed Maturity 20.000 —
Plan Series 37-3M-Plan A - Growth (Previous year Nil)
1,000,000 Units of Rs. 10 each of Prudential ICICI Fusion Fund - 10.000 10.000
Growth (Previous year 1,000,000)
— Units of Rs. 10 each of Reliance Equity Fund - — 20.000
Growth (Previous year 2,000,000)
1,995,000 Units of Rs. 10 each of Reliance Equity Fund - 22.025 —
Dividend (Previous year Nil)
2,000,000 Units of Rs. 10 each of Reliance Fixed Horizon Fund II 20.000 —
Annual Plan Series V-Institutional - Growth (Previous year Nil)
5,000,000 Units of Rs. 10 each of Reliance Fixed Horizon Fund- 50.000 —
Annual Plan - Growth (Previous year Nil)
— Units of Rs. 10 each of Reliance Fixed Maturity Fund - — 50.000
Monthly Plan XI- Series II- Growth (Previous year 5,000,000)
— Units of Rs. 10 each of Reliance Growth Fund - — 23.943
Dividend (Previous year 465,633)
54,540 Units of Rs. 10 each of Reliance Growth Fund - 11.000 5.000
Growth (Previous year 28,921)
51,673 Units of Rs. 10 each of Reliance Liquidity Fund - 0.577 1.761
Growth (Previous year 170,463)
5,000,000 Units of Rs. 10 each of Reliance Monthly Interval Fund- 50.000 —
Growth (Previous year Nil)
— Units of Rs. 10 each of Reliance Vision Fund- — 13.073
Dividend (Previous year 270,616)
13,684 Units of Rs. 10 each of Reliance Vision Fund- 2.322 —
Growth (Previous year Nil)
— Units of Rs. 10 each of Sahara Infrastructure Fund - — 10.000
Dividend (Previous year 1,000,000)
— Units of Rs. 10 each of SBI Magnum Bluechip — 5.000
Fund - Growth (Previous year 500,000)
498,750 Units of Rs. 10 each of SBI Magnum Bluechip Fund - 5.436 —
Dividend (Previous year Nil)
53,249 Units of Rs. 10 each of SBI Magnum Sector Funds 1.893 —
Umbrella Contra - Growth (Previous Year Nil)
— Units of Rs. 10 each of SBI Multicap Equity Fund - — 10.000
Growth (Previous year 1,000,000)
1,138,443 Units of Rs. 10 each of SBI Multicap Equity Fund - 14.583 —
Dividend (Previous year Nil)
613,665 Units of Rs. 10 each of Standard Chartered Classic Equity - 7.500 4.000
Growth (Previous year 347,199)

38
 39th
Annual Report 2006-07

Schedules forming part of the Balance Sheet

(Rs. in million)
2007 2006

Schedule 6 - Investments (Contd.)

— Units of Rs. 10 each of Standard Chartered Classic Equity - Growth — 7.500
(Previous year 733,496)
— Units of Rs. 10 each of Standard Chartered Classic Equity - Growth — 2.500
(Previous year 244,499)
1,000,000 Units of Rs. 10 each of Standard Chartered Enterprise Equity - Dividend 10.000 —
(Previous year Nil)
2,000,000 Units of Rs. 10 each of Standard Chartered Fixed Maturity 20.000 —
Plan yearly Series 2- Growth (Previous year Nil)
5,000,000 Units of Rs. 10 each of Standard Chartered Fixed Maturity 50.000 —
Plan- Quarterly Series 7- Growth (Previous year Nil)
93,155 Units of Rs. 10 each of Standard Chartered Liquidity Manager Plus - Growth 100.000 —
(Previous year Nil)
— Units of Rs. 10 each of Sundaram Capex Opportunities - Growth — 10.000
(Previous year 1,000,000)
959,507 Units of Rs. 10 each of Sundaram BNP Paribas Equity 9.389 —
Multiplier Fund - Growth (Previous year Nil)
— Units of Rs. 10 each of Sundaram Fixed Term Plan - — 20.000
Series 1 Feb '06 (100 days)- Growth (Previous year 2,000,000)
1,000,000 Units of Rs. 10 each of Sundaram BNP Paribas Fixed Term 10.000 —
Plan Series XIX-14M - Growth (Previous year Nil)
3,000,000 Units of Rs. 10 each of Sundaram BNP Paribas Fixed 30.000 —
Term Plan Series XVI-90 Days-Growth (Previous year Nil)
— Units of Rs. 10 each of Sundaram India Leadership Fund - Dividend — 14.458
(Previous year 829,891)
2,000,000 Units of Rs. 10 each of Sundaram Rural India Fund - Dividend 19.450 —
(Previous year Nil)
99,848 Units of Rs. 10 each of Sundaram Select Midcap Fund - Growth 7.400 2.000
(Previous year 39,308)
— Units of Rs. 10 each of TATA Fixed Horizon Fund Series 3- — 20.091
Scheme B - Dividend (Previous year 2,009,069)
1,000,000 Units of Rs. 10 each of TATA Fixed Horizon Fund Series 3- 10.000 10.000
Scheme D (13 Months) Growth (Previous year 1,000,000)
— Units of Rs. 10 each of Tata Fixed Horizon Fund Series 5- — 10.000
Scheme B ( 6 Months) - Growth (Previous year 1,000,000)
130,118 Units of Rs. 10 each of Tata Growth Fund - Growth 3.200 2.000
(Previous year 83,940)
3,000,000 Units of Rs. 10 each of TATA Fixed Horizon Fund Series 30.000 —
6 - Scheme C - Growth (Previous year Nil)
5,000,000 Units of Rs. 10 each of Templeton Fixed Horizon Series 1 50.000 —
-13M Plan - Growth (Previous year Nil)

39
 Finolex
Cables Limited
Schedules forming part of the Balance Sheet
(Rs. in million)

2007 2006

Schedule 6 - Investments (Contd.)

— Units of Rs. 10 each of UTI Fixed Maturity Plan QFMP — 20.088
(02/06/ II) - Growth (Previous year 2,000,000)
4,500,000 Units of Rs. 10 each of UTI Fixed Term Income Fund Series 2 - 45.000 —
Growth (Previous year NIL)
— Units of Rs. 10 each of UTI Leadership Fund - — 10.000
Growth (Previous year 977,995)
[Aggregate Market Value of Current Quoted Investments
Rs.1,685.928 million (Previous Year Rs.1,347.161 million)] 1,180.164 1,077.774
Unquoted Investments
100 Equity Shares of Rs. 10 each fully paid in East West 0.000 0.000
Travel & Trade Links Limited (Previous year 100)
1 Pass through Certificate of Rs. 10,000,000/- each of Old Palasia 6.842 7.971
RMBS Trust Series - I : Trustee - IDBI Bank Limited (Previous year 1 )
6.842 7.971
Investment in Property
Immovable Property * 7.463 7.463
2,833.152 2,722.387
* The company has entered into agreements for sale of some
flats against which it has received an advance of Rs. 2.300 million
(Previous year - Rs. 2.300 million)
Aggregate Value of - Quoted Investments
Book Value 2,704.195 2,601.805
Market Value 4,492.579 4,219.841
- Unquoted Investments
Book Value 121.494 113.119

40
 39th
Annual Report 2006-07

Schedules forming part of the Balance Sheet

Details of Purchase and Sale of Details of Purchase and Sale of

Shares/ Units during the year No. of Shares/Units Shares/ Units during the year No. of Shares/ Units

ABN AMRO Cash Fund Institutional Plan- Growth 2,233,161 Reliance Liquidity Fund- Growth 55,010,935
ABN AMRO Cash Fund Institutional Plus Plan - Growth 15,879,464 Sahara Infrastructure Fund - Dividend 1,000,000
ABN AMRO FTP Series 2- Quarterly Plan- Dividend 1,000,000 SBI Debt Fund Series 90 Days- Growth 2,000,000
ABN FTP Series 2 - Quarterly Plan- Growth 4,031,621 SBI Debt Fund Series 60 days- Growth 1,000,000
Birla Bond Plus Institutional Plan- Growth 1,507,966 Standard Chartered Fixed Maturity 5th
Birla Cash Plus Institutional Premium Plan-Growth 117,913,839 Plan- Growth 2,000,000

Birla Sunlife Cash Manager Institutional Plan - Growth 17,473,005 Standard Chartered Liquidity Manager
Plus Fund- Growth 159,901
Chola FMP Series 3 Quarterly Plan III- Growth 4,038,880
Sundaram BNP Paribas FTP- Growth 1,000,000
Chola Liquid Institutional Plus Fund-Growth 46,851,499
Sundaram Money Fund Super Institutional
DBS Chola Short Term Floating Rate Plan- Growth 22,882,457 Plan - Growth 5,282,734
DSP ML Liquidity Institutional Plan-Growth 190,406 Tata Liquid Super High Investment
DSP ML Liquidity Plus Plan- Growth 50,000 Fund- Growth 119,515
DWS Insta Cash Plus Fund - Growth 9,813,722 Tata Liquidity Manager Fund- Growth 278,433
DWS Money Plus Institutional Plan - Growth 4,971,181 UTI Liquid Cash Plan Institutional-Growth 208,369
Fidelity Short Term Income Fund Institutional UTI QFMP 05/06 - Growth 6,038,960
Plan-Growth 5,000,000
HDFC FMP 3 Months June '06 (1) - Growth 1,000,000
HDFC FMP 3 Months May '06 (1) - Growth 2,000,000
HDFC FMP 6 Months June '06 IP-Growth 1,000,000
HDFC Liquid Fund Premium Plan - Growth 6,728,660
HSBC Cash Plus Institutional Plan- Growth 48,261,956
ICICI Liquid Super Institutional Plan- Growth 87,587,219
ING Vysya Liquid Institutinal Plan-Growth 876,739
J M High Liquidity Super Institutional Plan- Growth 2,776,930
Kotak FMP 3 Months Series 1- Growth 1,000,000
Kotak FMP 6 Months Series 1 - Growth 1,000,000
Kotak FMP Series 27- Growth 2,000,000
Kotak Fund of Funds - Growth 977,995
Kotak Liquid Institutional Premium Plan- Growth 85,647,166
Lotus India Liquid Fund Institutional Plan - Growth 6,133,429
Principal Cash Management Liquid Institutional
Premium Plan-Growth 80,782,729
Reliance FHF June 2006- Growth 1,000,000
Reliance FHF May 2006- Growth 2,000,000
Reliance FHF Monthly Plan A Series 3- Growth 2,000,000
Reliance Floater Plan- Growth 892,953
Reliance Liquidity Fund - Growth 82,475,279

41
 Finolex
Cables Limited
Schedules forming part of the Balance Sheet
(Rs. in million)

2007 2006

Schedule 7 - Current Assets, Loans and Advances

(A)Current Assets
Interest Accrued on Investments 0.127 1.873

Inventories
Stores and Spares 82.164 70.172
Raw Materials 341.708 377.272
Semi finished Goods 631.299 539.245
Finished Goods 833.160 1,072.511
Packing Materials 15.291 10.696
Scrap 8.719 4.879
Goods for Trading 10.685 9.570
1,923.026 2,084.345
Sundry Debtors
Unsecured, considered good, unless stated otherwise
Outstanding for a period exceeding six months 135.600 37.704
Considered Doubtful 8.573 8.573
Less : Provision 8.573 8.573
135.600 37.704
Other Debts 652.446 721.434
788.046 759.138
Cash & Bank Balances
Cash on hand 1.822 1.514
Balances with Scheduled Banks in :
- Current Accounts 183.873 140.687
- Fixed Deposit Accounts 0.025 450.225
183.898 590.912
Balance with Barclays Bank Plc. in :
- Fixed Deposit Account 425.000 -–
(maximum amount outstanding during
the year Rs. 425.000 million)
610.720 592.426

3,321.919 3,437.782
(B)Loans & Advances
Unsecured, considered good, unless stated otherwise
Balances with Customs, Excise etc. 49.778 69.865
Advances recoverable in cash or in kind or for
value to be received 452.724 425.134
Advance Income Tax 2,769.241 2,412.527

3,271.743 2,907.526

6,593.662 6,345.308

42
 39th
Annual Report 2006-07

Schedules forming part of the Balance Sheet

(Rs. in million)
2007 2006

Schedule 8 - Current Liabilities and Provisions

(A) Current Liabilities

Sundry Creditors 543.761 349.028
[Includes due to SSI Units Rs. 4.960 million (Previous year Rs. 4.360 million)]
Other Liabilities 414.664 544.683
Deposits from Distributors 7.127 3.537
Deposits from Customers / Others 29.473 12.979
Interest accrued but not due 5.683 12.442
Unclaimed Fixed Deposits 0.116 0.116
Unclaimed Dividend * 13.957 10.243

1,014.781 933.028

(B) Provisions
Proposed Dividend 214.115 183.527
Tax on Proposed Dividend 36.388 25.740
Provision for Taxation 2,559.171 2,274.171
Provision for Leave Encashment 18.000 14.800
Provision for Gratuity 1.300 6.746

2,828.974 2,504.984
3,843.755 3,438.012

*The figure does not include any amount due and outstanding to be
credited to Investor Education & Protection Fund.

43
 Finolex
Cables Limited
Schedules forming part of the Profit and Loss Account
(Rs. in million)
2007 2006

Schedule 9 - Income from Operations

Sale of Products 11,659.130 8,439.900
Sale Others 30.989 46.251
Sale of Scrap 169.108 129.073
11,859.227 8,615.224

Schedule 10 - Other Income

Interest earned on
- Investments 9.463 2.433
- Deposits 0.459 0.373
- Others 11.959 6.743
Dividend Received
From Long Term Investments 126.157 121.525
From Current Investments 0.427 64.622
Profit on Sale of Assets 1.547 1.592
Profit on Sale of Investments (Net)
From Current Investments 15.826 74.432
Miscellaneous Income 30.204 12.101
[Tax deducted at source Rs.3.757 million
(Previous year Rs. 0.556 million)]
196.042 283.821

Schedule 11 - Materials and Manufacturing Expenses

Materials Consumed
Raw Materials * # 7,503.200 5,805.221
Packing Materials 123.330 131.139
Stores & Spares 83.280 128.938
Add/(Less):Decrease/(Increase) in stock of 146.770 (578.586)
Finished, Semi-finished Goods & Scrap
Add/(Less): Incremental /(Decremental) Excise Duty on (26.318) 45.284
Closing Stock of Finished Goods
7,830.262 5,531.996
Manufacturing Expenses (Direct)
Processing Charges 2.212 1.779
Power & Fuel 203.078 185.837
205.290 187.616
Less: Captive Consumption for Capitalisation 8.033 1.820
8,027.519 5,717.792

* Includes write down of raw material inventory of Optic Fibre Division of Rs. Nil (Previous year Rs. 6.370 million)
# Includes cost of goods traded in Rs.14.338 million (Previous year Rs. 10.781 million )

44
 39th
Annual Report 2006-07

Schedules forming part of the Profit and Loss Account

(Rs. in million)
2007 2006

Schedule 12 - Personnel Expenses

Salaries, Wages, Bonus and Commission etc. 347.872 300.196
Contribution to Provident and other Funds 3.489 22.830
Workmen and Staff Welfare Expenses 2.219 1.952
Recruitment & Training Expenses 1.741 1.364
355.321 326.342
Schedule 13 - Other Expenses
Rent, Rates and Taxes 13.363 14.927
Insurance 17.323 15.841
Repairs & Maintenance :
Building 5.153 4.303
Machinery 16.533 9.016
Other Assets 16.075 8.193
Directors' Sitting Fees 0.488 0.525
Auditors' Remuneration
Audit Fees 2.050 2.050
Tax Audit Fees 0.500 0.500
Other Services 0.758 0.206
Out of Pocket Expenses 0.048 0.040
Travelling and Conveyance 32.409 28.314
Communication Expenses 11.643 12.320
Selling & Distribution Expenses
Sales Incentives 359.451 265.101
Freight Outward (Net) 95.787 88.191
Advertisement, Publicity etc. 45.553 19.634
Miscellaneous Expenses # 128.413 104.581
Provision for Doubtful Advances 2.710 23.031
Amounts Written off 0.008 6.597
Loss on Exchange Fluctuations (Net) 1.120 47.522
Loss on Sale of Assets 0.186 9.099

749.571 659.991

# Includes settlement amount of Rs.Nil (Previous year Rs. 7.465 million) paid/payable to the raw material supplier of Optic Fibre
Division pursuant to reduction in purchase obligation.

Schedule 14 - Finance Charges

Interest :
Fixed Period Loans 58.738 42.292
Others 89.249 71.321
Bank Charges 11.260 14.254

159.247 127.867

45
 Finolex
Cables Limited
Notes forming part of the Accounts
Schedule - 15

1. Significant Accounting Policies

i) Accounting Convention:
The financial statements are prepared under the historical cost convention, having due regard to fundamental accounting
assumptions of going concern, consistency and accrual, in compliance with the accounting standards referred to in Section
211(3C) of the Companies Act, 1956.
ii) Fixed Assets:
a) Fixed Assets are stated at cost of acquisition or construction less accumulated depreciation. Attributable finance costs and
expenses of bringing the respective assets to working condition for their intended use are capitalised.
b) Intangible Assets: Expenses incurred by the Company on acquisition, development or enhancement of intangible resources,
are recognised as intangible assets if these are identifiable, controlled by the Company and it is probable that future
economic benefit attributable to the asset would flow to the enterprise. Intangible assets are amortised from the date when
they are available for use over the best estimate of their useful life.
c) Impairment: The carrying amount of cash generating units / assets are reviewed at balance sheet date to determine whether
there is any indication of impairment. If any such indication exists, the recoverable amount is estimated as the higher of net
selling price and value in use. Impairment loss is recognised whenever carrying amount exceeds the recoverable amount.
d) Borrowing costs that are directly attributable to the acquisition or production of a qualifying asset are capitalised as part of the
cost of those assets. Other borrowing costs are recognised as expense in the period in which they are incurred.
iii) Depreciation:
Depreciation is provided on straight-line method as per the rates and in the manner prescribed in Schedule XIV to the
Companies Act, 1956.
iv) Valuation of Investments:
Investments classified as long-term investments are stated at cost. Provision for diminution, if any, in the value of long-term
investments is made to recognise a decline other than temporary in the fair value of investments. The fair value of a long-term
investment is ascertained with reference to its market value, investee's assets and results and the expected cash flows from the
investment as well as the strategic importance to the company.
v) Valuation of Inventories:
All the inventories are valued at lower of cost or net realisable value. Cost of Raw Materials, Packing Materials, Stores and
Spares is determined at weighted average cost. Finished goods and Semi Finished goods are valued at material cost, cost of
conversion and production cess wherever applicable. Scrap generated out of manufacturing process is valued at net realisable
value except in case of sheets and optic fibre divisions where it is accounted for on sale.
vi) Foreign Currency Transactions: (Other than acquisition of Fixed Assets)
a) Transactions in foreign currencies are recorded at the exchange rates prevailing on the date of transaction. Current assets
and current liabilities are translated at the year-end rate. The difference between the rate prevailing on the date of transaction
and on the date of settlement as also on translation of current assets and current liabilities at the end of the year is recognised
as income or expense as the case may be.
b) In respect of forward exchange contracts, the difference between the forward rate and the exchange rate at the inception of
the forward contract is recognised as income or expense over the period of the contract.
c) Gains or losses on cancellation / settlement of forward exchange contract are recognised as income or expense.
d) Exchange difference, premium on forward exchange contract or gain or loss on cancellation / settlement of forward exchange
contract relating to fixed assets acquired from outside India is adjusted in the carrying amount of the respective fixed asset.
vii) Revenue Recognition:
a) Sale of goods is recognised on despatches to customers and includes excise duty.
b) Dividend income is accounted for when right to receive is established.
c) Credits on account of Custom Duty and other benefits, which are due to be received with reasonable certainty, are accrued
upon completion of exports.
d) Gains or losses on derivative instruments used for hedging purposes is accounted for on the date of settlement of the
derivative contract.
viii) Retirement Benefits:
Contributions are made to approved Superannuation and Provident Funds. Based on actuarial valuation, a provision is made for
liability for accumulated Leave encashment. In respect of gratuity, the Company has adopted Cash Accumulation Scheme with

46
 39th
Annual Report 2006-07

Notes forming part of the Accounts

Life Insurance Corporation of India and subject to the fund balance a provision is made based on actuarial valuation.
ix) Taxation:
Income Tax expense comprises current tax and deferred tax charge or credit. Deferred tax for timing difference between the
book and tax profit for the year is accounted using tax rates and tax laws that have been enacted or substantively enacted at the
Balance Sheet date. Deferred Tax assets arising from the timing difference are recognised to the extent that there is virtual
certainty that sufficient future taxable income will be available.
x) Provisions and Contingent Liabilities:
a) Provisions in respect of present obligations arising out of past events are made in the accounts when reliable estimates can
be made of the amount of the obligation.
b) Contingent liabilities are disclosed by way of note to the financial statements, after careful evaluation by the management of
the facts and legal aspects of the matter involved.
2. Contingent Liabilities:
a) Liability on account of Sales Bills discounted with Bank Rs.308.277 million (Previous year Rs.300.000 million).
b) i) Disputed demands in appeal towards excise Rs. 384.640 million (Previous year Rs. 461.057 million) customs Rs. 13.427
million (Previous year Rs. Nil) and sales tax Rs.49.753 million (Previous year Rs.32.162 million).
ii) Appeal preferred by Customs Department against Appellate decision in favour of the Company, wherein should the decision
be unfavourable to the Company, the liability is estimated to be Rs. Nil (Previous year Rs. 21.030 million)
iii) In respect of Octroi duty a demand of Rs. 8.623 million (Previous year Rs.8.623 million) has been raised against the
Company. However, in this regard, the industry is collectively contesting similar demands and the matter is sub judice.
c) i) Disputed Income Tax demands and matters in appellate proceedings Rs. 274.800 million (excluding consequential interest
/ penalty) (Previous year Rs. 209.155 million).
ii) Appeals preferred by Income Tax Department against Appellate decisions in favour of the Company, wherein, should the
ultimate decision be unfavourable to the Company, the liability is estimated to be Rs. 487.225 million (Previous year Rs.
455.952 million).
3. Estimated amount of contracts remaining to be executed on capital account (net of advances paid), not provided for Rs. 534.823
million (Previous year Rs. 55.228 million).
4. Capital Advances grouped with capital work-in-progress include an amount of Rs. 2.291 million (Previous year Rs.2.291 million) for
Leased Land, possession of which has been taken, subject to fulfilment of certain conditions, as per agreement with Maharashtra
Industrial Development Corporation.
5. Taxation:
Deferred Tax:
The break-up of deferred tax assets and liabilities into major components at the year end is as below.
(Rs. in million)
Particulars of timing difference Liabilities Assets
Depreciation 274.866 NIL
(289.824) (NIL)
Impairment Loss - 66.418
(-) (76.752)
Total 274.866 66.418
(289.824) (76.752)
Net Deferred Tax Liability 208.449
(213.072)
Current Tax:
Provided in accordance with the provisions of the Income Tax Act, 1961.
6. The small scale and ancillary undertakings to whom amounts outstanding for more than 30 days :
a) Cotmac Electronics Pvt. Ltd. b) Navbharat Industries
7. Suppliers/Service providers covered under the Micro, Small and Medium Enterprises Development Act- 2006 in majority cases,
have not furnished the information regarding filling of necessary memorandum with appointed authority. In view of the above, the
information under Sec.22 of Micro, Small and Medium Enterprises Development Act, 2006 is not given.
8. Based on the review as on 1st April , 2004 the Company has accounted for the impairment loss on the assets of “Optic Fibre” cash
generating unit forming part of Communication Cable segment. Sharp decline in the prices of optic fibre for unforeseen reasons after
the project was undertaken and delay in commissioning of key assets due to techno-commercial issues arising between the

47
 Finolex
Cables Limited
Notes forming part of the Accounts
Company and supplier of the equipment, although issues were settled eventually, have resulted in impairment in value of the said
assets. Accordingly the impairment loss of Rs.650.595 million and related deferred tax effect of Rs.121.877 million has been
adjusted against the General Reserve in accordance with transitional provision of Accounting Standard 28. On review there is no
indication of further increase or reversal in the impairment loss as on 31st March, 2007.
9. Related Party Transactions: Disclosures as required by Accounting Standard 18 “Related Party Disclosures” are given below:
a) List of Related Parties:
Associate Companies Finolex Industries Limited.
Finolex Proprietary Limited.
Corrugated Box Industries (India) Private Limited.
Plastro Plasson Industries (India) Limited.
b) Key management Personnel and Relatives
Key Management Personnel
1. Mr. P. P. Chhabria - Chairman
2. Mr. D. K. Chhabria - Managing Director
3. Mr. V. K. Chhabria - Deputy Managing Director
4. Mr. M. L. Jain - Asst. Managing Director and Chief Operating Officer
5. Mr. P. B. Parasnis - Asst. Managing Director and Chief Financial Officer
Relatives
Mr. K. P. Chhabria - Brother of Mr. P.P. Chhabria, and father of
Mr. D. K. Chhabria and Mr. V. K. Chhabria

c) Transactions with Related Parties - Major Parties (Rs in million)

Nature of Transactions Associate Key Management
Companies Personnel & Relatives
Sales, Services and Other Income
1 Sale of goods
Finolex Industries Limited 8.998 —
(35.631) (—)
Others 1.406 —
(0.470) (—)
2 Sale of other material
Finolex Industries Limited 1.305 —
(0.860) (—)
3 Recoveries
Finolex Industries Limited 0.360 —
(1.596) (—)
Others — —
(0.002) (—)
4 Dividend Received
Finolex Industries Limited 120.578 —
(120.578) (—)
5 Reimbursement of Expenses Received
Finolex Industries Limited 0.656 —
(1.629) (—)

Purchase of Material / Assets

1 Purchase of Raw Material
and Components
Finolex Industries Limited 50.152 —
(8.317) (—)
Others — —
(0.084) (—)

48
 39th
Annual Report 2006-07

Notes forming part of the Accounts

Nature of Transactions Associate Key Management
Companies Personnel & Relatives
2 Purchase of Fixed Assets
Finolex Industries Limited 1.397 —
(0.505) (—)
Expenses
1 Managerial Remuneration — 60.960
(—) (50.207)
2 Services
Finolex Proprietory Limited 5.604 —
(5.097) (—)
3 Rent
Corrugated Box Industries (India) Pvt. Limited 2.100 —
(1.950) (—)
Mr. K.P. Chhabria — 0.528
(—) (0.528)
4 Reimbursement of Expenses Paid
Finolex Industries Limited 10.579 —
(6.904) (—)
Amount Outstanding
1 Creditors
Finolex Industries Limited 5.839 —
(3.828) (—)
Others 0.088 —
(0.238) (—)
2 Debtors
Finolex Industries Limited 4.126 —
(5.432) (—)
Others 2.155 —
(0.752) (—)
3 Loans and Advances and Deposits
Corrugated Box Industries (India) Pvt. Limited 2.275 —
(3.325) (—)
Mr. K.P. Chhabria — 5.000
(—) (5.000)
Others
Refund of Deposit
Corrugated Box Industries (India) Pvt Limited 1.050 —
(0.975) (—)

10. A . Quantitative information of derivative instruments outstanding as at the Balance Sheet date:
Category (Rs. in million)
2007 2006
Foreign Exchange Forwards/ Options — 921.325
Interest Rate Swaps 2,461.400 3,184.120
Currency Swaps 1,376.025 767.958
B. The Company has entered into derivative transactions with an objective to hedge the financial risks
associated with its business viz. foreign exchange, interest rate and commodity price risks.
C. The Company has not hedged the following foreign currency exposures :
(i) Borrowings grouped under secured loans equivalent to Rs. 626.875 million (Previous year
Rs. 861.035 million) and under unsecured loans equivalent to Rs. 652.678 million
(Previous year Rs. 24.980 million).
(ii) Creditors for imports equivalent to Rs. 45.691 million (Previous year Rs. 17.658 million)
(iii) Receivables equivalent to Rs.195.630 million (Previous year Rs. 104.514 million)

49
 Finolex
Cables Limited
Notes forming part of the Accounts
(Rs. in million)

2007 2006

11. Managerial Remuneration

(a) Computation of Net Profit in accordance with Sec. 198
of the Companies Act, 1956.
Profit as per Profit & Loss Account (Before Tax ) 970.307 616.508
Add : Directors' Remuneration 21.180 19.607
Directors' Commission 40.580 30.950
Directors' Sitting Fees 0.488 0.525
Depreciation 264.288 313.164
326.536 364.246
1,296.843 980.754
Less: Depreciation u/s 350
of the Companies Act, 1956 264.288 313.164
Profit/(Loss)on Sale of Assets (Net) 1.361 (7.507)
Profit/(Loss) on Sale of Investments (Net) 15.826 74.432

281.475 380.089
Profits available for Distribution 1,015.368 600.665

Commission as decided by the Board :

Chairman, Managing Director & Deputy 39.780 30.600
Managing Director
Non-Whole-time Directors 0.800 0.350
40.580 30.950
(b) Details of payments and provisions on account of
remuneration to the Chairman, Managing
Director, Deputy Managing Director, Asst. Managing
Directors and Non whole-time Directors included in
the Profit and Loss Account :
(i) Salary 8.558 8.202
(ii) Commission to :
Chairman, Managing Director 39.780 30.600
and Deputy Managing Director
Non Whole-time Directors 0.800 0.350
40.580 30.950
(iii) Contribution to Funds 2.333 2.323
(iv) Other Perquisites 10.289 9.082

Note : Contribution to Gratuity Fund is made on global valuation and hence is not precisely ascertained.

50
 39th
Annual Report 2006-07

Notes forming part of the Accounts

12.Capacities and Production :
Class of Goods Unit Installed Production(Net) Installed Production (Net)
Capacity 2006-07 Capacity 2005-06
31.3.2007 31.3.2006
1 Electrical Cables TCKM 1,030.00 702.96# 1,030.00 758.48#
2 Communication Cables
Optic Fibre Cables KM 48,000.00 20,547.44 48,000.00 21,733.00
Other Communication Cables TCKM 10,612.00 862.53 10,612.00 1,746.03
3 PVC Sheets and Accessories MT 2,100.00 1,570.05 2,100.00 1,376.65
4 Fibre KM 600,000.00 414,028.00* 600,000.00 213,813.62*
5 Cross Linked Polyethylene and other
Compounds ( Used for Captive Consumption) MT 2,500.00 – 2,500.00 –
6 Polycoated FRP Rod KM 1,500.00 – 1,500.00 –
7 Continuous Cast Copper Rods MT 60,000.00 16,653.79@ 60,000.00 18,276.79@

Installed capacities are certified by the Managing Director and relied upon by the Auditors.
# Equivalent tonnage 23,211 MT (Previous year 24,636 MT)
* Includes captive consumption of 170,762 Kms. (Previous year 145,072 Kms)
@ Includes captive consumption of 13,207 MT (Previous year 16,090 MT)
5000 TCKM of Other Communication Cables Capacity is interchangeable with 332 TCKM of Electrical Cables Capacity.

13. Stock & Turnover : (Rs. in million)

Class of Goods Unit Opening Stock Closing Stock Turnover
Quantity Value Quantity Value Quantity # Value
1. Electrical Cables TCKM 84.01 617.837 49.63 514.482 737.34 8,132.680
(63.91) (425.166) (84.01) (617.837) (738.40) (5,527.748)
2. Communication Cables
Optic Fibre Cables KM 6,262.00 79.664 1684.92 29.889 25,124.52 552.020
(1,684.67) (36.011) (6,262.00) (79.664) (17,155.67) (469.099)
3. Other Communication cables TCKM 227.46 149.636 188.08 114.283 901.91 1,216.052
(223.29) (113.714) (227.46) (149.636) (1,741.86) (1,481.237)
4. PVC Sheets and Accessories MT 257.53 16.266 273.72 14.196 1,553.86 148.896
(139.08) (13.641) (257.53) (16.266) (1,258.20) (132.958)
5. Fibre KM 74,534.23 37.932 251,375.04 110.091 237,187.19** 26.732
(9,806.07) (4.528) (74,534.23) (37.932) (149,085.46) (1.855)
6. Continuous Cast Copper Rod MT 614.91 209.107 202.28 73.933 17,066.42$ 1526.408
(782.00) (157.913) (614.91) (209.107) (18,443.88) (826.117)
7. Others *** — 86.377 256.439
(—) (—) (176.210)
8. Less - Excise Duty 1,529.016
(1,137.381)
1110.442 943.251 10,330.211
(750.973) (1,110.442) (7,477.843)
# Includes captive consumption
** Includes captive consumption of 170,762 Kms (Previous year 145,072 Kms.)
$ Includes captive consumption of 13,207 MT (Previous year 16,090 MT)
*** Includes goods traded in Rs 30.514 million (Previous year Rs. 25.189 million)

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Notes forming part of the Accounts
14. Raw Materials Consumed:
2007 2006
Quantity Value Quantity Value
(MT)
(Rs. in million) (MT) (Rs. in million)
Copper 17,506 5,937.937 18,938 4,176.795
PVC 11,348 659.224 11,713 593.266
Polythene 2,296 152.885 3,492 200.335
Preform 10 79.061 10 109.015
Others 674.093 725.810
7503.200# 5,805.221#
# Includes cost of goods traded Rs.14.338 million (Previous year Rs.10.781 million) (Rs. in million)
15. CIF Value of Imports: 2007 2006
Raw Materials 886.120 1,061.840
Spares & Components 14.517 22.560
Capital Goods 269.133 28.810
1,169.770 1,113.210
16. Consumption of Raw Materials:
Imported 13.13% 984.806 14.61% 848.297
Indigenous 86.87% 6,518.394 85.39% 4,956.924
7,503.200 5,805.221
17 . Consumption of Stores and Spares:
Imported 8.38% 6.976 34.88% 44.980
Indigenous 91.62% 76.304 65.12% 83.958
83.280 128.938
18. Expenditure in Foreign Currency:
(i) Travelling 2.764 6.339
(ii) Interest 3.414 6.141
(iii) Settlement amount to Raw Material Supplier — 4.962
(iv) Professional fees 11.977 0.405
(v) Export Sales Commission 11.815 4.293
(vi) Others 4.991 1.322
34.961 23.462
19. Earnings in Foreign Currency :
FOB Value of Exports 672.532 368.402
Interest 0.127 —
20. Dividends Remitted in Foreign Currency :
Number of Shareholders 1 1
Number of Shares held 1,232,385 1,284,035
Year to which Dividend relates Year ended 31/3/06 Year ended 31/3/05
Amount remitted (Net of Tax
deducted at source) Rs. in million 7.394 5.778
21. Segment Reporting:
The Business segment has been considered as the primary segment for disclosure. The categories included in each of the
reported business segment are as follows:
i) Electrical Cables(including related products) ii) Communication Cables
iii) Copper Rods iv) Others
The above business segments have been identified considering:
i) The nature of the product/services ii) The related risks and returns
iii) The internal financial reporting systems.
Revenue and expenses have been accounted for based on the basis of their relationship to the operating activities of the segment.
Revenues and expenses which relate to the enterprise as a whole and are not allocable to segments on a reasonable basis have been
included under “Unallocable Expenses”. Assets and Liabilities which relate to the enterprise as a whole and are not allocable to segments on
a reasonable basis have been included under “Unallocable Assets/Liabilities”.

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Notes forming part of the Accounts

21. A ) Primary Segment Information for the year ended 31st March, 2007
(Rs in million)
Period Electrical Communication Copper Others Other than Elimination Total
Cables Cables Rod Segments
REVENUE
External Current Year 8,268.172 1,820.579 1,529.669 240.807 - - 11,859.227
Previous Year 5,751.354 1,900.691 827.438 135.741 - - 8,615.224
Inter - segment Current Year - - 4,677.626 - - (4,677.626) -
(Net of Excise) Previous Year - - 2,798.800 - - (2,798.800) -
Less : Excise Duty Current Year 1,090.337 198.698 214.295 25.686 - - 1,529.016
Previous Year 756.254 258.491 105.238 17.398 - - 1,137.381
Total Revenue Current Year 7,177.835 1,621.881 5,993.000 215.121 - (4,677.626) 10,330.211
Previous Year 4,995.100 1,642.200 3,521.000 118.343 - (2,798.800) 7,477.843
RESULT
Segment Result Current Year 1,081.357 29.624 79.767 23.413 - - 1,214.161
Previous Year 703.200 (120.650) 46.300 (11.837) - - 617.013
Other Unallocable income Current Year - - - - 95.867 - 95.867
net of expenditure Previous Year - - - - (113.108) - (113.108)
Less
Interest Expenses Current Year - - - - - - 147.987
Previous Year - - - - - - 113.613
Profit before Taxation Current Year - - - - - - 970.307
Previous Year - - - - - - 616.508
Less
Provision for Taxation Current Year - - - - - - 280.377
Previous Year - - - - - - 112.820
Profit after Tax Current Year - - - - - - 689.930
Previous Year - - - - - - 503.688
OTHER INFORMATION
Segment Assets Current Year 2,513.391 2,555.959 421.249 553.693 6,461.955 - 12,506.247
Previous Year 1,770.621 2,746.684 601.064 312.361 5,924.802 - 11,355.532
Segment Liabilities Current Year 350.225 131.305 300.278 101.403 2,960.544 - 3,843.755
Previous Year 412.065 242.177 274.113 47.430 2,462.225 - 3,438.010
Capital Expnditure Current Year 710.773 23.545 0.649 134.456 13.892 - 883.315
Previous Year 54.561 33.269 4.400 14.252 0.974 0.203 107.659
Depreciation Current Year 77.449 145.222 19.150 17.299 5.168 - 264.288
Previous Year 39.753 218.015 21.103 14.584 19.709 - 313.164
21.B) Secondary Segment Information (by Geographical Segment)
(Rs in million)
Particulars Year ended Year ended
31.03.2007 31.03.2006
REVENUE (Net of Excise)
Exports 682.149 375.649
Domestic 9,648.062 7,102.194
Total 10,330.211 7,477.843
Debtors
Exports 195.630 104.514
Domestic 592.416 654.624
Total 788.046 759.138

Note :
Assets of the Company except sundry debtors are not identified with the geographical segment as these are used interchangeably and are located in India.

22. Figures in respect of the previous year have been regrouped or rearranged wherever necessary to conform to current year's classification.

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Notes forming part of the Accounts
23. BALANCE SHEET ABSTRACT AND COMPANY'S GENERAL BUSINESS PROFILE
(Information pursuant to Part IV of Schedule VI to the Companies Act, 1956)

I. Registration Details
Registration No. 1 6 5 3 1
Date Month Year State Code
Balance Sheet Date 3 1 0 3 2 0 0 7 1 1
II. Capital raised during the year (Amount in Rs.thousands)
Public Issue Rights Issue
N I L N I L
Bonus Issue Private Placement
N I L N I L

III. Position of Mobilisation and Deployment of Funds (Amount in Rs.thousands

Total Liabilities Total Assets
8 6 6 2 4 9 2 8 6 6 2 4 9 2
Sources of Funds

Paid-up Capital Reserves and Surplus

3 0 5 8 7 9 5 4 9 4 8 1 8

Deferred Tax Credit (Net)

2 0 8 4 4 9

Secured Loans Unsecured Loans

1 9 7 6 8 7 5 6 7 6 4 7 1

Application of Funds

Net Fixed Assets Investments

3 0 7 9 4 3 3 2 8 3 3 1 5 2

Net Current Assets Miscellaneous Expenditure

2 7 4 9 9 0 7 N I L

Accumulated Losses
N I L

IV. Performance of the Company (Amount in Rs. thousands)

Turnover Total Expenditure

1 0 5 2 6 2 5 3 9 5 5 5 9 4 6

Profit /Loss Before Tax Profit /Loss After Tax

+/ - +/ -
+ 9 7 0 3 0 7 + 6 8 9 9 3 0

Earnings Per Share Dividend Rate %

(for face value of Rs. 2/- each)
Rs. 4 . 5 1 7 0

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Notes forming part of the Accounts

V. Generic Names of Three Principal Products / Services of the Company

(As per Monetary Terms)

Item Code No. (ITC Code) Product Description

8 5 4 4 4 9 1 9 JELLY FILLED TELEPHONE CABLES

Item Code No. (ITC Code) Product Description

8 5 4 4 ELECTRICAL CABLES - LIGHT DUTY

Item Code No. (ITC Code) Product Description

8 5 4 4 ELECTRICAL CABLES - HEAVY DUTY

Item Code No. (ITC Code) Product Description

9 0 0 1 1 0 OPTIC FIBRE CABLE

Item Code No. (ITC Code) Product Description

8 5 4 4 2 0 CO- AXIAL CABLES

Item Code No. (ITC Code) Product Description

8 5 4 4 5 9 LAN CABLES

Item Code No. (ITC Code) Product Description

3 9 2 0 PVC SHEETS

Item Code No. (ITC Code) Product Description

7 4 0 7 . 1 0 CONTINUOUS CAST COPPER RODS

As per our report of even date P. P. Chhabria D.K. Chhabria

Chairman Managing Director
For B. K. KHARE & COMPANY Dr. H.S. Vachha V. K. Chhabria
Chartered Accountants B. G. Deshmukh Dy. Managing Director
R.G.D'Silva Sanjay K. Asher M. L. Jain
U.B. Joshi Company Secretary & P. G. Pawar Asst. Managing Director and
Partner Asst. Vice President (Legal) Chief Operating Officer
Membership No. 44097 P.B. Parasnis
Asst. Managing Director and
Chief Financial Officer
Pune : 10th May, 2007 Pune : 10th May, 2007

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CORPORATE GOVERNANCE
1. COMPANY'S PHILOSOPHY ON CORPORATE GOVERNANCE:
The Company's philosophy on Corporate Governance envisages attainment of transparency, accountability and propriety in the total
functioning of the Company and in the conduct of its business internally and externally, including its interactions with employees,
shareholders, deposit holders, creditors, consumers and institutional and other lenders.
The Company believes that its systems and actions must be dovetailed for enhancing the performance and shareholder value in the long term.
The Company has adopted certain practices to achieve good corporate governance; the salient ones being fairness and transparency in
dealings, accountability for performance, effective management control by the Board, constitution of Board Committees as a part of internal
control system, fair representation of professional, qualified, non-executive and independent Directors on Board, adequate and timely
disclosure of financial and other information and prompt discharge of statutory obligations and duties.

2. BOARD OF DIRECTORS:
2.1 Constitution of the Board:
l The composition of the Board of Directors with reference to number of Executive and Non-Executive Directors, meets the
requirement of Code of Corporate Governance.
l Out of Thirteen Directors, there are three promoter Executive Directors namely Mr. P.P. Chhabria, Chairman, Mr. D.K. Chhabria,
Managing Director and Mr. V.K. Chhabria, Deputy Managing Director and two non-promoter Executive Directors Mr. M.L. Jain, Assistant
Managing Director and Chief Operating Officer and Mr. P.B. Parasnis, Assistant Managing Director and Chief Financial Officer.
l There are eight independent Non-Executive Directors, namely Dr. H.S. Vachha, Mr. B.G. Deshmukh, Mr. Atul C. Choksey, Mr. Sanjay K.
Asher, Mr. P.G. Pawar, Dr. N.A. Kalyani, Mr. S.B. (Ravi) Pandit (appointed w.e.f. 1st August 2006) and Mr. P.R. Rathi (appointed on 10th
May 2007). Mr. B.J. Rathi an independent Non-Executive Director expired during the year on 7th March 2007.
2.2 Meetings:
Board meetings are held at least four times during the year coinciding with the presentation of each quarterly result. During the last
Financial Year four Board meetings were held i.e. on 2nd May 2006, 28th July 2006, 18th October 2006 and 24th January 2007.
The meetings were attended as follows:
l Mr. P. P. Chhabria, Mr. D.K. Chhabria, Mr. M. L. Jain, Mr. P.B. Parasnis, Mr. B.J. Rathi (expired on 7th March 2007) and Mr P G Pawar
attended all the four meetings.
l Mr. V. K. Chhabria, Dr. H.S. Vachha, Mr. B.G. Deshmukh and Mr. S.K. Asher attended three meetings.
l Mr. Atul C. Choksey and Mr. S.B. (Ravi) Pandit (appointed w.e.f. 1st August 2006) attended two meetings and Dr. N.A. Kalyani did not attend
any of the meetings.
All Directors attended the last Annual General Meeting held on 27th June 2006 except for Mr. B. G. Deshmukh, Mr. Atul C. Choksey, Mr. S. K.
Asher and Dr. N. A. Kalyani.

2.3 Remuneration to Executive Directors:

Particulars Chairman Managing Deputy Managing Assistant Managing Assistant Managing
Director Director Director and Chief Director and Chief
Operating Officer Financial Officer
P.P.Chhabria D.K.Chhabria V.K.Chhabria M.L. Jain P.B. Parasnis
Salary and Allowances 2,400,000 2,400,000 1,320,000 1,327,000 1,111,000

Contribution to Provident 648,000 648,000 356,400 366,540 313,800

& Superannuation Fund

Other perquisites 2,399,388 2,399,330 1,319,530 1,057,903 1,112,971

Commission / Incentive 15,600,000 15,600,000 8,580,000 1,000,000 1,000,000

Total 21,047,388 21,047,330 11,575,930 3,751,443 3,537,771

Notes:
1) There is no scheme of 'Employee Stock Options' during the year.
2) The above does not include contributions to group superannuation and gratuity funds as the contributions/benefits are on a group basis.
3) In all the cases, the service contract is for a period of five years from the date of appointment. Notice period / severance fees applicable are 180

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Annual Report 2006-07

days for Mr. P.P. Chhabria, Mr. D.K. Chhabria and Mr. V.K. Chhabria and 90 days and 60 days in case of Mr. M.L. Jain and Mr. P.B. Parasnis
respectively.
4) Performance criteria is a value judgement made by the Remuneration Committee which considers and recommends payment of commission /
incentive based on the performance of the Company and contemporary practices in Industry. The recommendations of the Committee are
further considered by the Board and a collective decision taken without participation of interested Directors.

2.4 Remuneration to Non-Executive Directors:

Name of Non-Executive Sitting Fees Commis-sion Total Shareholdings of Non-Executive
Director Directors in the Company

Mr. B.J. Rathi 135,000 100,000 235,000 18,400

Dr. H.S. Vachha 60,000 100,000 160,000 --
Mr. B.G. Deshmukh 37,500 100,000 137,500 --
Mr. Atul C. Choksey 15,000 100,000 115,000 17,750
Mr. Sanjay K. Asher 127,500 100,000 227,500 12,395
Mr. P.G. Pawar 97,500 100,000 197,500 --
Dr. N.A. Kalyani -- 100,000 100,000 --
Mr. S B (Ravi) Pandit 15,000 100,000 115,000 –
Total 487,500 800,000 1,287,500 48,545

a) Sitting fees are uniform for meetings of the Board / Committee thereof and are paid to each Non-Executive Director for attending Board /
Committee meetings.
b) Commission not exceeding one percent of the net profits of the Company or Rupees fifteen lacs, which ever is less and as may be
determined by the Board each financial year is paid to non-executive Directors. Such commission has been shared equally amongst such
Directors. The sitting fees is approved by the shareholders and payment of commission to non-executive Directors upto maximum of
Rs.15 lacs from the existing limit of Rs.5 lacs has been proposed for approval by the shareholders at ensuing Annual General Meeting.

2.5 The details of other Directorship and Committee membership:

No. of company Directorships Committee Positions held
Other Companies
Public Companies
Mr. P.P. Chhabria 03 18 02 (Chairman of two)
Dr. H.S. Vachha 04 01 05 (Chairman of three)
Mr. B.G. Deshmukh 02 02 01 (Chairman of one)
Mr. Atul C. Choksey 11 03 --
Mr. Sanjay K. Asher 12 18 05 (Chairman of three)
Mr. P.G. Pawar 06 07 02
Dr. N.A. Kalyani 05 38 01
Mr. D.K. Chhabria 01 07 --
Mr. V.K. Chhabria -- -- --
Mr. M.L. Jain -- -- --
Mr. P.B. Parasnis 02 01 02
Mr. S.B. (Ravi) Pandit 03 01 01
Mr. P. R. Rathi 11 05 03

2.6 Information placed before the Board of Directors:

The information placed before the Board of Directors is as follows:
a) Annual operating plans and budgets, revisions and updates, if any.
b) Capital budgets with revisions and updates, if any.
c) Quarterly (including periodic) results of the Company and its operating divisions / business segments.

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d) Minutes of meetings of Audit and other Committees of the Board.
e) The information on recruitment and remuneration of senior officers below the Board level, including appointment or cessation of
office by Chief Financial Officer and Company Secretary.
f) Show cause, demand and prosecution notices, which are materially important.
g) Fatal or serious accidents, dangerous occurrences, any material effluent or pollution problems
h) Details of any joint venture or collaboration agreement.
i) Transactions that involve substantial payment towards goodwill, brand equity, or intellectual property.
j) Industrial relationship issues of material nature and proposed remedial actions. All significant developments in Human Resources /
Industrial Relations.
k) Transactions of material nature of buying and selling of investments, or undertaking / assets, which are not in normal course of
business.
l) Quarterly reports on foreign exchange exposure and the steps taken by the Management to manage the risks of adverse exchange
rate movement, if material.
m) Status on compliance with all regulatory, statutory and material contractual requirements.
n) Details of delegation of authorities to executives and Powers of Attorney issued.

3. AUDIT COMMITTEE:
The Audit Committee which was formed in February 1997, presently comprises of four independent non-executive Directors, namely Dr. H.S.
Vachha (Chairman of the Committee), Mr. Sanjay K. Asher, Dr. N.A. Kalyani and Mr. P. R. Rathi (appointed w.e.f. 10th May, 2007) (Mr. B.J.
Rathi, member and Alternate Chairman expired during the year, on 7th March 2007.)
The brief terms of reference of the Audit Committee include -
1) Review of the Company's financial reporting process and financial Statements,
2) Review of accounting and financial policies and practices,
3) Review of internal control and internal audit systems,
4) Discussion with Internal Auditors and Statutory Auditors on any significant findings and follow-up thereon,
5) Reviewing the Company's financial and risk management policies,
6) To investigate any activity within its terms of reference,
7) To seek information from any employee,
8) To obtain outside legal or other professional advice,
9) To secure attendance of outsiders with relevant expertise, if it considers necessary,
10) Oversight of the Company's financial reporting process and the disclosure of its financial information to ensure that the financial statement
is correct, sufficient and credible,
11) Recommending to the Board, the appointment, reappointment and, if required, the replacement or removal of the statutory auditor and the
fixation of audit fees,
12) Approval of payment to statutory auditors for any other services rendered by the statutory auditors,
13) Reviewing, with the management, the annual financial statements before submission to the Board for approval, with particular reference to
a) Matters required to be included in the Director's Responsibility Statement to be included in the Board's report in terms of clause (2AA) of
section 217 of the Companies Act, 1956,
b) Changes, if any, in accounting polices and practices and reasons for the same,
c) Major accounting entries involving estimates based on the exercise of judgment by management,
d) Significant adjustments made in the financial statements arising out of audit findings,
e) Compliance with listing and other legal requirements relating to financial statements,
f) Disclosure of any related party transactions,
g) Qualifications, if any, in the draft audit report,
14) Reviewing, with the management, the quarterly financial statements before submission to the Board for approval,
15) Reviewing, with the management, performance of statutory and internal auditors, adequacy of the internal control systems,
16) Reviewing the adequacy of internal audit function, if any, including the structure of the internal audit department, staffing and seniority of the
official heading the department, reporting structure coverage and frequency of internal audit,
17) Discussion with internal auditors any significant findings and follow up there on,

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Annual Report 2006-07

18) Reviewing the findings of any internal investigations by the internal auditors into matters where there is suspected fraud or irregularity or a
failure of internal control systems of a material nature and reporting the matter to the Board,
19) Discussion with statutory auditors before the audit commences, about the nature and scope of audit as well as post-audit discussion to
ascertain any area of concern,
20) To look into the reasons for substantial defaults, if any, in the payment to the depositors, debenture holders, shareholders (in case of non
payment of declared dividends) and creditors,
21) The Audit Committee shall mandatorily review the following information:
a) Management discussion and analysis of financial condition and results of operations.
b) Statement of significant related party transactions (as defined by the audit committee),
c) Management letters / letters of internal control weaknesses issued by the statutory auditors,
d) Internal audit reports relating to internal control weaknesses, and
e) The appointment, removal and terms of remuneration of the Chief internal auditor.
The Committee has met six times during the financial year ended 31st March 2007, as against the minimum requirement of four meetings i.e. on 2nd
May 2006, 2nd June 2006, 28th July 2006, 25th September 2006, 18th October 2006 and 23rd January 2007. Dr. H.S. Vachha attended five
Meetings, Mr. Sanjay K. Asher attended all the meetings and Dr. N.A. Kalyani did not attended any of the meetings. (Mr. B.J. Rathi, member and
Alternate Chairman who expired during the year on 7th March 2007, had attended five meetings.) The date of the meeting of the Committee held for
considering finalisation of accounts for the year ended 31st March 2007 was 10th May 2007.

4. REMUNERATION COMMITTEE:
In view of the importance given by the Company to good corporate governance and though it is a non-mandatory requirement, a Remuneration
Committee was constituted by the Board of Directors at its meeting held on 21st October 2000.
The Remuneration Committee has been set up to determine on behalf of the Board and on behalf of the shareholders with agreed terms of
reference, the Company's policy on specific remuneration packages for Executive Directors including pension rights and any compensation
payment.
The Committee comprises four independent and non-executive Directors namely Mr. B.G. Deshmukh (Chairman of the Committee), Mr.
Sanjay K. Asher, Mr. P.G. Pawar. and Mr. P.R. Rathi (appointed w.e.f. 10th May 2007). (Mr. B.J. Rathi who was member and Alternate Chairman
of the Committee expired during the year on 7th March 2007).
The Committee has met on 2nd May 2006 and 24th January 2007 during the financial year ended 31st March 2007. Mr. B.G. Deshmukh, Mr. B.J.
Rathi and Mr. P.G. Pawar attended all the meetings and Mr. Sanjay K. Asher attended the meeting held on 2nd May 2006.

5. SHAREHOLDERS' COMMITTEE:
The Share Transfer Cum Investors' Grievances Committee presently comprises of three Executive Directors and three independent, non-
executive Directors. Mr. P.G. Pawar an independent and non-executive Director is the Chairman of the Committee. The Board has designated
Mr. R.G.D'Silva, Company Secretary as the Compliance Officer.
The Committee in addition to considering share transfer matters, oversees redressal of shareholder and investors complaints / grievances and
recommends measures to improve the level of investor services.
The Committee normally meets once in a month, as required, and there were seven meetings during the year.
The total number of complaints received and replied to the satisfaction of shareholders during the year were 8 and no complaint was
outstanding as on 31st March 2007.
There was no share transfer request pending as on 31st March 2007.

6. GENERAL BODY MEETINGS:

Location and time for last three Annual General Meetings:
Year Location Date Time Whether any special resolution passed therein
2003-04 Acharya Atre Rangmandir 18th June, 2004 11.30 a.m. Yes
Sant Tukaramnagar
Pimpri, Pune – 411 018
2004-05 Acharya Atre Rangmandir 5th July, 2005 11.30 a.m. No
Sant Tukaramnagar
Pimpri, Pune – 411 018
2005-06 Acharya Atre Rangmandir 27th June, 2006 11.30 a.m. Yes
Sant Tukaramnagar
Pimpri, Pune – 411 018

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(a) No special resolution was passed through postal ballot last year and no such resolution is proposed to be passed by postal ballot this year.
7. DISCLOSURES:
(a) Disclosure regarding materially significant related party transactions:
For details please refer Schedule 15 (Note No. 12) of Notes forming part of the Accounts.
(b) There were no instances of non-compliance or penalty, strictures imposed on the Company by Stock Exchanges or SEBI or any
Statutory Authority on any matter related to capital markets, during the last three years.
(c) The Company has complied with the mandatory requirements of corporate governance Clause 49 of the Listing Agreements with the
Stock Exchanges.
(d) The non-mandatory requirements have not been adopted as a formal policy except for Remuneration Committee as set out in item 4
above.

8. MEANS OF COMMUNICATIONS:
The quarterly results of the Company are published in leading national newspapers viz., normally Economic Times (Mumbai and Pune
editions), Business Standard (all editions) and Sakal (Pune edition) and also displayed on the corporate website (http://www.finolex.com)
along with official news releases. The corporate presentation prepared by the Company was uploaded on its website and was also informed to
the Stock Exchanges for taking the same on record.
Management provides detailed analysis of Company's operations, which forms a part of the Annual Report.

9. SHAREHOLDER INFORMATION:
The Annual report includes Financial Statements, key financial data and detailed information in the Shareholders information section.

10. CODE OF CONDUCT:

The Board has laid down a code of conduct for all Board members and senior management of the Company. The Code of Conduct has been
hosted on the website (http://www.finolex.com) of the Company.
Declaration:
All Board members and senior management personnel have affirmed compliance with the Code of Conduct of the Company in the year under report

Sd/-
Place : Pune D. K. Chhabria
Date : 10th May 2007 Managing Director

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Annual Report 2006-07

Auditors' Certificate on Corporate Governance

To the Members of
FINOLEX CABLES LIMITED

st
We have examined the compliance of conditions of corporate governance by Finolex Cables Limited (the Company) for the year ended on 31
March 2007 as stipulated in clause 49 of the Listing Agreement of the Company with the stock exchanges.
The compliance of conditions of corporate governance is the responsibility of the management. Our examination was limited to procedures and
implementation thereof, adopted by the Company for ensuring the compliance of the conditions of the Corporate Governance. It is neither an audit
nor an expression of opinion on the financial statements of the Company.
In our opinion and to the best of our information and according to the explanations given to us we certify that the Company has complied with the
conditions of Corporate Governance as stipulated in the above mentioned Listing Agreements.
We state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness with which the
management has conducted the affairs of the Company.

For and on behalf of

B. K. KHARE & CO.
Chartered Accountants
Place : Pune Sd/
Date : 10th May 2007 U. B. Joshi
Partner
Membership No. 44097

Shareholder Information
Registered Office
Finolex Cables Limited, 26/27 Mumbai - Pune Road, Pimpri, Pune 411018.
Annual General Meeting
th
The Thirty Ninth Annual General Meeting (AGM) of the Company will be held on Friday, 29 June, 2007 at 11.30 a.m. at Acharya Atre Rangmandir,
Sant Tukaramnagar, Pimpri, Pune 411 018.
Financial Calendar (Tentative) :
th
(a) Annual General Meeting : 29 June 2007
(b) Results for quarter ending 30th June, 2007 : Last week of July 2007
(c) Results for quarter ending 30th September, 2007 : Last week of October 2007
(d) Results for quarter ending 31st December, 2007 : Last week of January 2008
(e) Results for quarter ending 31st March, 2008 : Last week of April 2008
Dates of Book Closure
th th
The Company's Transfer Books will be closed from Saturday, 16 June 2007 to Friday, 29 June 2007 (both days inclusive) for purpose of Annual
st
General Meeting and for payment of Dividend for the year ended 31 March 2007.
Dividend Payment
th
The Board of Directors of the Company at its meeting held on 10 May 2007 have recommended payment of Dividend @ 70 % (i.e. Rs.1.40/- per
share of Rs. 2/-) for the year ended 31st March, 2007. The payment of dividend is to be approved by the shareholders at the AGM and as on date is
th
exempt from income - tax in the hands of the shareholders. The aforesaid Dividend, if declared at the AGM, will be paid on or before 28 July 2007 to
those members whose names appear in the Register of Members as on the date of the AGM. In respect of shares held in electronic form, the
dividend will be paid on the basis of beneficial ownership as per details to be received from the Depositories i.e. National Securities Depository
Limited (NSDL) and Central Depository Services (India) Limited (CDSL) for this purpose, the same being as of close of their respective hours of
business on the date immediately preceding the aforesaid Book Closure period (ie as of 15th June, 2007).
Stock Exchange Listing
The Company's shares are presently listed on the Stock Exchanges at Ahmedabad, Bangalore, Chennai, Cochin, Delhi, Kolkata, Mumbai and

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 Finolex
Cables Limited
Pune and also on the National Stock Exchange and OTC Stock Exchange. The Company's Global Depository Receipts (GDRs) are listed on the
Luxembourg Stock Exchange.
Stock Code
Physical Demat Segment

Trading Symbol Bombay Stock Exchange FINOLEX CABL 144

Trading Symbol National Stock Exchange FINCABLES EQ FINCABLES AE
Stock Market Data
The monthly high and low quotations and volume of shares traded at Mumbai (BSE) and National Stock Exchanges (NSE) are as follows :

BSE NSE
Period High (Rs) Low (Rs) Volume Shares High Low Volume Shares
traded (Nos.) (Rs) (Rs) traded (Nos.)

April 06 370.00 340.00 292,853 374.00 335.00 302,587

May 06 422.60 305.25 407,376 429.50 301.00 644,060
June 06 345.00 222.15 258,518 350.00 222.00 247,935
July 06 304.00 241.60 92,952 304.95 245.00 164,811
August 06 375.00 283.40 173,919 374.80 284.00 289,473
September 06 372.00 331.00 203,456 374.00 324.40 314,484
October 06 474.90 367.00 510,501 470.00 365.50 662,478
November 06 519.00 433.00 301,862 523.00 436.05 408,723
December 06 510.00 450.00 170,356 515.00 452.00 246,806
January 07* 549.90 95.00 3,339,227 522.25 94.70 4,110,732
February 07* 109.00 90.00 1,097,611 108.05 80.20 1,254,448
March 07* 100.00 83.00 526,765 96.00 77.50 713,777

*During the year, the Company has sub divided its fully paid up Equity shares of Rs. 10/- each into five Equity shares of Rs. 2/- each, w.e.f. 16th
January, 2007.
Registrar and Transfer Agents
The Company has taken requisite steps and centralised at a single point its share registry works for shares held in physical as well as electronic
form with Finolex Industries Limited, D-1/10, MIDC Chinchwad, Pune 411019 holding Share Transfer Agent Category II Registration No.
INR0000001765 issued by SEBI.

Share Transfer System

Share Transfer requests received in physical form are registered within 30 days from date of receipt and Demat requests are normally confirmed
within an average of 15 days from the date of receipt.

Shareholder Statistics and Distribution of Shareholdings as on 31st March 2007

Statistics of shareholders- 2005- 2007
31st March No. of shareholders
2005 20,253
2006 17,433
2007 21,210

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 39th
Annual Report 2006-07

Distribution of Shareholding as on 31st March 2007

Category No. of shares Held Percentage of Shareholding

A Promoter’s holding
1 Promoters
- Indian Promoters 49,298,575 32.23
- Foreign Promoter NIL NIL
2 Persons acting in Concert
Sub total 49,298,575 32.23
B Non-Promoters holding
3 Institutional Investors
a Mutual Funds and UTI 11,968,789 7.83
b Banks, Financial Institutions, Insurance 16,725,250 10.94
Companies (Central / State Govt. Institutions
/ Non-Government Institutions)
c FIIs 15,239,064 9.96
Sub total 43,933,103 28.73
4 OTHERS
a Private Corporate bodies* 25,357,316 16.58
b Indian Public 33,519,380 21.92
c NRIs / OCBs 830,971 0.54
d Any others (Please specify) NIL NIL
Sub total 59,707,667 39.04
Grand Total 152,939,345 100.00
* Includes 22,187,075 shares (14.51%) held by Associate Company - Finolex Industries Limited.

Dematerialisation of shares
The Company's equity shares are included in the list of companies whose scrips have been mandated by SEBI for settlement only in dematerialised
form by all institutions and all investors. The Company had signed agreements with National Securities Depository Limited (NSDL) and Central
Depository Services (India) Ltd (CDSL) to offer depository services to its shareholders. As on 31st March 2007 64.47 % of the equity share capital of
the Company has been dematerialised.

Outstanding GDRs / DRs / Warrants, etc

There are no outstanding GDRs / ADRs / Warrants or any convertible instruments as on 31st March 2007.

Plant Locations
Pimpri (ElectricalCables) Urse (Electrical&CommunicationCables) Goa (Communication Cables)
26/27, Mumbai-Pune Road Taluka Maval Plot No., L123/9A, Verna Industrial Estate,
Pimpri, Pune 411 018 Dist. Pune 410 506 Verna Salcette, South Goa,
Telephone : 27475963 (10 lines) Telephone (02114) 237026/27 Telephone : (0832) 2782002/3/4
Facsimile : (020) 27472239 / 27472224 Facsimile (02114) 237025 Facsimile (0832) 2783909
Email : pundlik@finolex.com Email : PM_Deshpande@finolex.com Email : kd_shenoy@finolex.com

63
 Finolex
Cables Limited
Goa (Electrical & Communication Cables) Goa (CCC Rods) Sheets Division
Plot No 117/L118 Plot No. S263/2, Gat No 399
Verna Industrial Estate Panjim -Belgaum Road, Village Urse
Verna Salcette Usgaon-Tisk, Ponda, Taluka Maval
South Goa, GOA Goa - 403406 Dist. Pune 410 506
Telephone : (0832) 2782002/3/4 Telephone : (0832) 2344378/9 Telephone : (02114) 237035/36
Facsimile : (0832) 2783909 Facsimile : (0832) 2344140 Facsimile : (02114) 237042
Email : kd_shenoy@finolex.com Email : knarayanan@finolex.com Email : sales@finolex.com

Optic Fibre Division Lighting Division (CFL) Switches Division

Urse Plot No.399, Village Urse, Gat No.344, village Urse,
Taluka Maval Tal-Maval, Taluka Maval
Dist Pune 410 506 Dist. Pune-410 506 District Pune 410 506
Telephone : (02114) 237003/4/5/6/7 Telephone : (02114) 237035, 237036 Telephone : (02114) 237021/2/3
Facsimile : (02114) 237009 Fascimile : (02114) 237041 Facsimile : (02114) 237006
Email : sridharan@finolex.com Email : SVDeshpande@finolex.com MV_Rangwani@finolex.com

Investor Correspondence
The Company's Share Department provides assistance to shareholders under the supervision of Mr. R.G D'Silva, Company Secretary & Vice
President (Legal)
Any query relating to shares and requests for transactions such as transfers, transmissions and nomination facilities, duplicate share certificates,
change of address, non-receipt of dividends / Annual Report, as also regarding dematerialisation of shares may please be taken up with :
Mr R G D'Silva
Company Secretary & Asst. Vice President (Legal)
Finolex Cables Limited
26/27 Mumbai - Pune Road,
Pimpri, Pune 411 018
Telephone : (020) 27475963 Extn.279 / 230
Facsimile : (020) 27472239 / 27470260
Email : Dsilva_RG@finolex.com

Shareholder information On-line

The Balance Sheet information is a part of the Company's World Wide Web home page http://www.finolex.com. Users can obtain information on
Company products and services, Company background, Management and financial information and other major developments.

Nomination Facility
Individual shareholders can now avail of the facility of nomination. The nominee shall be the person in whom all rights of transfer and/or amount
payable in respect of the shares shall vest in the event of the death of shareholder(s). A minor can also be a nominee provided the name of the
guardian is given in the Nomination Form. The facility of nomination is not available to non-individual shareholders such as bodies corporate,
financial institutions, Kartas of Hindu Undivided Families and holders of Power of Attorney. In case of any assistance, please contact Mr. R.G
D'Silva, Company Secretary & Asst. Vice President (Legal) at the Registered Office of the Company.

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