Cable Corporation of India Ltd Management Discussions

The Company has always focused and strived to deliver quality product and end-to-end cable service for over 6 decades. Over these years, your Company has built Goodwill and we are pleased to state that during tough phase of the Company, this Goodwill has encouraged us to regain its position in the competitive market. During the year, the Company has successfully completed many challenging projects in all the regions and successful laying and commissioning of underwater project and cold tenacious mountainous region projects of national importance added feathers in its cap. Though the financial health of the State Electricity Boards is potential threat to the growth of the Company, Governments continuous efforts to stimulate power sector has enabled the industry grow, which is clear from the number of states joining UDAY scheme.

The Company caters to the demands of transmission & distribution sectors of the Power Industry, Power Generation Projects and industrial sectors in India and abroad, which reflects the goal of the Company in its true sense of "Bringing power to the people".

Segment-wise performance

The Cable business segment of the Company achieved turnover of Rs.89.95 crores as compared to last year of Rs. 149.34 crores.

During the year under review, there was no income from Real Estate operations as compared Rs. 75.28 crores last year.

Outlook

The outlook for the current year is encouraging, since Company is in the verge of completing its ongoing projects. The UDAY scheme launched by Government helped reducing the losses by state run power DISCOMs, which in turn was beneficial for the growth of power industry.

Due to the policy of 100% household electrification, the Governments demand for cables has shot up. Due to this the Companys order position has improved.

During the year, your Company has adopted strategic approach towards the projects by re-establishing customer contracts and initiating completion of orders on hand including projects which are of national importance. With the Governments positive efforts towards developing power & infrastructure and with the help of management strategic outlook, the Company is hopeful for growth of the Company in 2019-20.

The reality estate market was also on a downward trend due to red tape in seeking clearances and approvals from concerned departments Risks and Concerns

The acute financial crunch coupled with Increasing competition in domestic market, and fluctuation in prices of raw material, delays in debtor collections due to working capital crunch at customers end and availability of cost effective capital are of great concern.

Adequacy of Internal Controls

The Company has an adequate internal control system with the purpose to avoid any errors in the system and to promote operational efficiency. The control parameters are reviewed with regular intervals by Audit Committee and changes required, if any, are effectively implemented. The Company has well defined delegation of authority limits for approving revenue as well as expenditures. Processes for formulating and reviewing annual and long term business plans have been laid down. The Company uses an established system to record day to day transactions for accounting and financial reporting.

Quality

The Company has and always will enhance the reputation for its product quality at competitive prices in national and international markets and to meet customers expectations.

The Company has always maintained its brand image and is perceived to be a competitor in the Power Cable Industry.

Financial Review

During the year under review, the Cable business segment of the Company achieved turnover of Rs 89.95 Crores compared to the turnover of Rs. 149.34 crores in the previous year. Total revenue of the Company for the year is Rs 89.95 Crores as compared to Rs.. 225.23 crores for last year. Your Company has adopted strategic approach towards the projects by re-establishing customer contracts.

Development in Human Resources/ Industrial Relations

The Company promotes an open and transparent working environment to enhance teamwork and build business focus. The Company equally gives importance to the development of human resource. The Company takes adequate steps for in-house training of employees and maintaining a safe and healthy environment.

Cautionary Statement

Statements in the Management Discussion and Analysis describing the Companys objectives, expectations or forecast may be forward looking within the meaning of applicable laws and regulations. Actual results may differ materially from those expressed in the statement. The actual performance of the Company is dependent on several external factors, many of which are beyond the control of the management like growth of Indian economy, domestic & international industry scenario, supply and demand conditions affecting selling prices of finished goods, exchange market fluctuation, input availability and prices, changes in Government regulations, tax laws and other factors such as litigation and industrial relations.