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TO THE SHAREHOLDERS
Your Directors have the pleasure in presenting the Thirty Fourth (34th)
Annual Report together with the Audited Financial Statements of your Company for the
Financial Year ended March 31, 2026.
SUMMARY OF FINANCIAL RESULTS
(Rs in Lakhs)
| Description |
Standalone |
Consolidated |
|
2025-26 |
2024-25 |
2025-26 |
2024-25 |
| Revenue from Operations |
77111.40 |
66165.23 |
77111.40 |
66165.23 |
| Other Income |
378.28 |
310.20 |
378.68 |
310.28 |
| Earnings before Finance Costs, Depreciation and Tax |
5071.30 |
3594.18 |
5075.16 |
3578.97 |
| Finance Costs |
1233.51 |
1334.85 |
1233.57 |
1334.91 |
| Profit before Depreciation and Tax |
3837.79 |
2259.33 |
3841.59 |
2244.06 |
| Depreciation and Amortization |
1578.55 |
1575.77 |
1578.55 |
1575.77 |
| Profit before Tax |
2259.24 |
683.56 |
2263.04 |
668.29 |
| Tax Expenses |
572.46 |
180.45 |
572.75 |
179.15 |
| Net Profit for the year |
1686.78 |
503.11 |
1690.29 |
489.14 |
The financial statements have been prepared in accordance with Ind AS
in terms of the provisions of Section 133 of the Companies Act, 2013 read with the
Companies (Indian Accounting Standards) Rules, 2015, as amended from time to time.
STATE OF COMPANY'S AFFAIRS
The Company is predominantly engaged in the business of manufacturing
and sales of all types of Optical Fibre Cables, Copper Telecommunication Cables,
Structured Copper LAN Cables, Specialty cables and allied accessories. There has been no
material change in the nature of business of the Company during the financial year ended
March 31, 2026.
GENERAL & CORPORATE MATTERS
During the year under review, the Company recorded standalone Revenue
from Operations of Rs 77111.40 Lakhs, as against
Rs 66165.23 Lakhs in the previous year, reflecting a growth of 16.54%.
This increase was primarily driven by a significant rise in Structured LAN Cable sales.
The order flow for Optical Fibre Cables remained broadly in line with the previous year.
Standalone Profit Before Tax (PBT) stood at Rs 2259.24 Lakhs, compared
to Rs 683.56 Lakhs in the prior year. Despite the prolonged weakness in the Optical Fibre
Cable market, both domestically and globally, this notable improvement was achieved on the
back of historically highest sales in the Structured Copper LAN Cable segment. The strong
performance in this segment enabled the Company to sustain operations at a reasonable
level and successfully navigate a challenging market environment.
The current financial year (FY 202627) has begun to show early
signs of recovery in the Optical Fibre Cable market. According to recent market
intelligence, global demand in Q1 2026 is projected to rise by 6.8% year-on-year, reaching
136.70 million FKM, while global production is expected to grow by 7.2% year-on-year,
surpassing 134.2 million FKM. Notably, North America is leading this resurgence with
double-digit demand growth, underscoring the potential for robust expansion in the global
optical cable industry.
The global optical fibre and cable industry is entering 2026 under
tightening supply conditions, rising prices, and evolving demand dynamics increasingly
shaped by hyperscale data centres, AI infrastructure, defence applications, and broadband
expansion projects. While traditional telecom demand has matured in several regions,
emerging applicationsincluding AI clusters, fibre-enabled drones, and Data Centre
Interconnect (DCI) networksare exerting significant pressure on fibre supply chains
and manufacturing capacity.
North America is leading the resurgence, with Q1 2026 optical cable
demand projected to rise 22.5% year-on-year, driven by hyperscale data centre build-outs
and expansion of regional and long-haul networks. Demand for G.657.A1/A2 fibre types has
accelerated, supported by data centres, broadband connectivity, BEAD-related deployments,
and defence requirements. In Europe, demand is forecast to grow 2.4% year-on-year in Q1
2026, supported by continued FTTH roll-outs aimed at closing remaining coverage gaps.
Hyperscale investment is also gaining momentum, exemplified by Amazon's announced
33.7 billion investment in cloud and AI data centre infrastructure in Spain through
2035, which is expected to drive backhaul and DCI demand across regional networks. In the
UK, regulation is shaping the next phase of fibre deployment. Ofcom's Telecoms Access
Review 2026 introduces measures to maintain competition while supporting the nationwide
roll-out of gigabit broadband infrastructure.
Across Asia-Pacific, demand trends remain diverse:
Southeast Asia: Q1 2026 demand expected to grow 4.5%
year-on-year to 1.2M F-km, driven by data centre investments, telecom expansion, and
government-funded broadband projects.
Northeast Asia: Demand projected at 3.1M F-km, up 1.1%
year-on-year, supported by backhaul deployments in Taiwan (China) and data centre activity
in Japan.
Australasia: Growth of 1.8% year-on-year to 1.2M Fkm, supported
by sustained telecom investments and Australia's National Broadband Network (NBN)
project.
India: The largest APAC market outside China, demand is
projected to reach 4.7M F-km in Q1 2026, a 9.9% year-on-year increase, driven by BharatNet
Phase 3 rural broadband projects, private operator investments (e.g., Bharti Airtel), and
requirements from Railways, Utilities, and Defence.
Globally, demand for G.657.A2 fibre remains exceptionally strong,
particularly for drone connectivity, AI infrastructure, and advanced broadband
applications. Several producers report fully booked order books for 2026, with buyers
already seeking supply commitments for the next fiscal year.
Emerging fibre technologies such as Hollow Core Fibre (HCF) and
Multicore Fibre (MCF) are progressing from experimental stages toward commercial
deployment, positioned as next-generation solutions for AI-driven network demands.
However, geopolitical tensions in the Middle East pose risks of higher
energy and freight costs, alongside supply chain disruptions. Shortages in glass preforms,
helium, and polymer feedstocks are further constraining production capacity, creating
uncertainty around long-term contracts and tenders in the global fibre and cable market.
SCHEME OF AMALGAMATION
The Board of Directors of the Company at its meeting held on March 21,
2026, approved the Scheme of Amalgamation between the Company ("Transferor
Company" or "Company") and Vindhya Telelinks Limited ("Transferee
Company") and their respective shareholders and creditors (Scheme) pursuant to
Sections 230 to 232 and other applicable provisions of the Companies Act, 2013 read with
the rules framed thereunder for the amalgamation of the Company into the Transferee
Company w.e.f. the appointed date of April 1, 2026.
Upon the Scheme becoming effective, the Transferor Company shall stand
dissolved and the Transferee Company will issue and allot to the equity shareholders of
the Transferor Company (other than Transferee Company), 10 equity shares of the face value
of
Rs 10/- each fully paid of the Transferee Company for every 115 equity
shares of the face value of Rs 10/- each fully paid held by them in the Transferor
Company. Equity Shares held by the Transferor Company in the Transferor Company and vice
versa shall stand cancelled and extinguished.
The proposed amalgamation would be in the best interest of the
Companies and their respective shareholders, employees, creditors and other stakeholders
as the amalgamation is expected to inter-alia result in the following benefits: (i) Since
the Companies are well established in the line of business that they primarily operate in
(i.e. manufacture and sale of telecommunication cables and accessories) and have
complementary product portfolios, consolidating the manufacturing capabilities of both
Companies through the amalgamation will create a larger unified entity with consolidation
of capacities, enhanced market presence and improved competitive positioning. The combined
entity will have an aggregated track record of manufacturing and multi-state project
execution thereby being better positioned to leverage cross-selling opportunities and to
bid for larger infrastructure projects, based on the combined technical credentials,
financial strength and execution track record of the Companies. Further, the combined
entity will offer a single window solution offering a wide range of services and products
ranging from LAN cables to high-end specialty cables.
(ii) The unified and stronger balance sheet will enhance the Transferee
Company's pre-qualification credentials and financial net worth required to bid for
and execute increasingly capital-intensive, multi-state infrastructure projects which
require significant bank guarantees and liquidity.
(iii) By leveraging operational synergies and economies of scale, the
amalgamation will create a stronger platform for future growth, improve cost efficiencies,
and enable optimized allocation of financial, technical and managerial resources.
(iv) The amalgamation is expected to result in synergy benefits in
back-end operations, including procurement, logistics, information technology systems and
shared services and will also eliminate duplication of administrative and support
functions and reduce multiplicity of legal, regulatory and compliance requirements.
(v) The amalgamation will rationalize and simplify the Group's
corporate structure by reducing the number of entities in the Group which operate in
similar lines of business. This consolidation is expected to facilitate faster
decision-making, smoother operations and improved coordination across various functions,
which is expected to enhance transparency, corporate governance and investor perception.
(vi) A unified and stronger balance sheet will provide greater
financial flexibility and improved access to capital, which is critical for undertaking
larger and more capital-intensive businesses and supporting long-term growth strategies
and thus, the amalgamation is expected to unlock growth opportunities and contribute to
sustainable value creation for the shareholders of the Companies with improved financial
performance.
(vii) The amalgamation will enable pooling of human resources, research
& development capabilities and technical expertise across design, manufacturing,
sourcing and project management functions, thereby eliminating redundancies in
administration, research & development and operations for enhancing overall
organizational capability, innovation, execution efficiency and product offering for more
efficient operations and competitive positioning.
The Company has filed necessary applications for seeking
no-objection/observation letters from BSE Limited (BSE) and National Stock Exchange of
India Limited (NSE) for the Scheme. The proposed Scheme is also subject to necessary
statutory and regulatory approvals under applicable laws, including the approval of the
jurisdictional Hon'ble National Company Law Tribunal ("NCLT").
MANAGEMENT DISCUSSION AND ANALYSIS
The Management Discussion and Analysis of financial condition and
results of operations of the Company for the year under review, as per SEBI (Listing
Obligations and Disclosure Requirements), 2015, as amended from time to time
("Listing Regulations"), is presented in a separate section, which forms a part
of the Annual Report.
CAPITAL EXPENDITURE
During the year under review, the Company continued its focus on
judicious capital allocation and incurred capital expenditure aggregating to Rs 191.05
lakhs, consisting of addition to (a) Plant & Equipment of Rs 167.37 lakhs; and (b)
Other Fixed Assets of
Rs 23.68 lakhs for further capacity expansion/augmentation.
DIVIDEND
After considering the Company's profitability, the Board of
Directors of your Company is pleased to recommend a Dividend of
Rs 1.25/- (previous year Rs NIL) per equity share of face value Rs 10/-
each (i.e. 12.50%) for the financial year ended on March 31, 2026. The payment of Dividend
shall be subject to deduction of applicable Tax at source as per the prescribed rate under
Income Tax Act, 2025 and relevant rules framed thereunder. The said Dividend, if approved
by the Members at the ensuing Annual General Meeting, would involve a cash outflow of Rs
375.00 Lakhs resulting in a payout of 22.23% of the standalone net profit of the Company
for the financial year 2025-26 and would be paid to those members whose name appear in the
register of members / register of beneficial owners as per the data made available by the
depositories as on the Record Date mentioned in the Notice convening the ensuing Annual
General Meeting of the Company.
TRANSFER TO RESERVES
During the year under review, the Company has not transferred any
amounts to the General Reserve. For complete details on movement in Reserves and Surplus
during the financial year ended March 31, 2026, please refer to the Statement of
Changes in Equity' included in the standalone and consolidated financial statements
of the Annual report.
UNPAID DIVIDEND
The disclosure relating to year wise amount of unpaid/unclaimed
dividend lying in the Unpaid Dividend account and the corresponding equity shares which
are liable to be transferred to the Investor Education and Protection Fund (IEPF) and the
due date of such transfer is provided in the Corporate Governance Report which forms part
of the Annual Report.
SHARE CAPITAL
The paid-up Equity Share Capital of the Company as at March 31, 2026
stood at Rs 3000.00 lakhs. During the year under review, the Company has neither issued
shares with differential rights as to dividend, voting or otherwise nor has granted stock
options or sweat equity under any scheme. Further, none of the Directors of the Company
holds investments convertible into equity shares of the Company as on March 31, 2026.
DEPOSITS/FINANCE
During the year under review, your Company has not accepted any public
deposits within the meaning of Section(s) 73 to 76 of the Companies Act, 2013 and the
Companies (Acceptance of Deposits) Rules, 2014 and as such no amount on account of
principal or interest on public deposits was outstanding as on the date of the Balance
Sheet.
Your Company continued to optimise its borrowings through effective
cash flow and working capital management. It reduced borrowing costs by lowering charges
on non-fund-based facilities and availing competitively priced
buyers'/suppliers' credit. The Company's financial discipline and prudent
approach are reflected in the reasonable credit ratings ascribed by the rating agency.
PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS
The particulars of Loans, Guarantees and Investments in pursuance to
Section 186 of the Companies Act, 2013 have been disclosed in the standalone financial
statements read together with Notes annexed to and forming an integral part of the
standalone financial statements.
CORPORATE GOVERNANCE
Pursuant to Regulation 34(3) read with Para C of Schedule V of the
Listing Regulations, the Report on Corporate Governance and a Certificate by the Company
Secretary confirming compliance by all the Board Members and Senior Management Personnel
with Company's Code of Conduct and Auditors' Certificate regarding compliance of
conditions of Corporate Governance form part of the Annual Report.
CORPORATE SOCIAL RESPONSIBILITY
As a part of its initiative under Corporate Social Responsibility
(CSR), your Company has undertaken CSR activities, projects and programmes broadly in
accordance with Schedule VII of the Companies Act, 2013, applicable provisions of the
Companies (Corporate Social Responsibility Policy) Rules, 2014 and CSR Annual Action Plan
2025-26 read with the Company's CSR Policy. The CSR activities as detailed in Note
No. 43 of the financial statements have been carried out primarily in and around the local
areas where the Company operates and nearby localities. The Company has complied with the
provisions of Section 135 of the Companies Act, 2013 and all its subsequent amendments and
applicable rules.
The Annual Report on CSR activities giving brief outline of the
Company's CSR Policy and CSR initiatives undertaken during the year under review in
the prescribed format as per the Companies (Corporate Social Responsibility Policy)
Amendment Rules, 2021 is set-out in Annexure-I which is attached hereto and forms a part
of the Directors' Report. The Corporate Social Responsibility Policy of the Company
can be accessed on Company's website at weblink:
https://www.birlacable.com/Policies/CSR.pdf.
DIRECTORS' RESPONSIBILITY STATEMENT
To the best of their knowledge and belief and according to the
information and explanations obtained by them, your Directors make the following
statements in terms of Section 134(3)(c) of the Companies Act, 2013:
(a) that in the preparation of the annual financial statements for the
year ended March 31, 2026, the applicable accounting standards ("Ind AS") read
with requirements set out under Schedule III to the Companies Act, 2013, have been
followed and there are no material departures from the same;
(b) that such accounting policies as mentioned in Notes to the
Financial Statements have been selected and applied consistently and judgement and
estimates have been made that are reasonable and prudent so as to give a true and fair
view of the state of affairs of the Company as at March 31, 2026 and of the profit of the
Company for the year ended on that date;
(c) that proper and sufficient care has been taken for the maintenance
of adequate accounting records in accordance with the provisions of Companies Act, 2013
for safeguarding the assets of the Company and for preventing and detecting fraud and
other irregularities;
(d) that the annual financial statements have been prepared on a going
concern basis;
(e) that proper internal financial controls were in place and that the
financial controls were adequate and were operating effectively; and (f) that proper
systems to ensure compliance with the provisions of all applicable laws were in place and
that such systems were adequate and operating effectively.
RISK MANAGEMENT AND ADEQUACY OF INTERNAL CONTROL SYSTEMS
Your Company's system of financial and compliance controls with
reference to the financial statements and risk management is embedded in the business
process by which the Company pursues its objectives. Additionally, the Audit Committee and
the Board of Directors assess and monitor regularly the framework for identification,
evaluation and prioritization of risks, mechanism to mitigate risks, process that
methodically track governance objectives, risk ownership/accountability, compliance with
policies and decisions that are set through the governance process, risks to those
objectives and services and effectiveness of risk mitigation and controls besides inherent
risks associated with the products/goods and services dealt with by the Company.
The Company has established procedure to periodically place before the
Audit Committee, the risk assessment and minimization initiatives and steps taken by the
Company to mitigate the risks. The important elements of risks are provided in the
Management Discussion and Analysis Report forming part of the Annual Report. Your
Company's approach to address business risks and compliance functions is
comprehensive across the business and includes periodic review of such risks and a
framework for mitigating and reporting mechanism of such risks. In the opinion of the
Board of Directors, there are no material risks, which may threaten the existence of the
Company.
The Company has laid down the policies and procedures for internal
financial controls for ensuring the orderly and efficient conduct of its business, in
order to achieve the strategic, operational and other objectives over a long period and
that its exposure to risks are within acceptable limits. In addition, the policies and
procedures have been designed with an intent to ensure safeguarding of Company's
assets, prevention and detection of frauds and errors, accuracy in completeness of the
accounting records and timely preparation of reliable financial information.
The management is committed to ensure effective internal financial
controls environment, which provides assurance on the efficiency of Company's
business operations coupled with adherence to its established policies, safety/security of
its assets besides orderly and legitimate conduct of business in the circumstances, which
may reasonably be foreseen. The Company has defined organisation structure, authority
levels, delegated powers, internal procedures, rules and guidelines for conducting
business transactions. The Company's system and process relating to internal controls
and procedures for financial reporting have been designed to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with the Companies Act, 2013, Companies
(Indian Accounting Standards) Rules, 2015 and all other applicable regulatory/statutory
guidelines, etc. for disclosures with reference to financial statements. The controls have
been assessed during the year under review, basis guidance note issued by the Institute of
Chartered Accountants of India on Audit of Internal Financial Controls over Financial
Reporting. Based on the results of such assessment carried out by the management, no
reportable or significant deficiencies, no material weakness in the design or operation of
any control was observed. Nevertheless, the Company recognises that any internal financial
control framework, no matter how well designed, has inherent limitations and in a dynamic
environment needs continuous review and upgrade from time to time.
Your Company's internal control systems are supplemented by an
extensive program of internal audit by an independent firm of Chartered Accountants.
Internal audits are conducted at regular intervals and a summary of the observations and
recommendations of such audits are placed before the Audit Committee. The Internal
Auditors as well as the Audit Committee conduct an evaluation of the adequacy and
effectiveness of the system of internal financial controls system on an ongoing basis.
The Board has also implemented systems to ensure compliance of all
applicable laws to the Company which were effective and operative. At quarterly intervals,
the Company Secretary & Compliance Officer places before the Board as well as Audit
Committee a certificate alongwith a detailed statement certifying compliance of various
laws and regulations as applicable to the business and operations of the Company after
obtaining confirmation from all functional heads responsible for compliance of such
applicable laws and regulations. The Company Secretary is responsible for compliance of
corporate laws including the Companies Act, 2013, SEBI Act 1992, Listing Regulations and
relevant rules/guidelines as well as other corporate laws/rules and regulations including
any statutory amendment(s), modification(s) or enactment(s) thereto to the extent apply
and extend to the Company.
INDUSTRIAL RELATIONS, SAFETY AND SUSTAINABILITY
Industrial relations remained cordial throughout the year. Your
Directors recognize and appreciate the sincere and hard work, loyalty, dedicated efforts
and contribution of all the employees in the uninterrupted journey of satisfactory
financial performance of the Company. The Board would also like to place on record its
appreciation for dedicated and exemplary services rendered by employees at all levels in
the prevailing challenging times in ensuring safe and reliable operations throughout the
year. In the dynamic landscape of work, ongoing changes necessitate a re-evaluation of the
value proposition. Your Directors, therefore, believe that implementing creative
structures for employees across all levels is essential, fostering innovation, growth, and
ultimately enhancing the Company's competitive edge. Further, the Company is
proactively reskilling and upskilling its employees at all levels to remain competitive,
adapt to changes in market and to respond to new business opportunities resulting from
rapid pace of technological changes. The Company has also created an environment where
employees are encouraged to anticipate industry shifts, adapt quickly and lead the teams
through change with confidence supported by continuous development, open dialogue and
shared commitment to drive success. The remuneration framework continues to remain
relevant, proportionate and aligned with cognitive and time demand of governance standard
needed in the era of real time disruption requiring deep preparation, continuous learning
and sustained availability. The Company is also strategizing ways to retain high
performing and high potential employees with more alacrity then before.
Your Company continues to accord a very high priority to both
industrial safety and environmental protection and these are ongoing process at the
Company's plant and facilities to maintain high awareness levels. Your Company is
conscious of the importance of environmentally clean and safe operations so as to ensure
safety of all concerned and compliance of applicable environmental regulations and to this
end working continuously towards reduction in waste for disposal. The Company as a policy
re-evaluates safety standards and practices from time to time in order to raise the bar of
safety standards for its people as well as users and customers.
The good and green philosophy is a cornerstone of the Company's
business strategy for protecting people, preserving the planet and generating value for
the shareholders. As the world faces significant environmental challenges, the Company has
prioritised sustainability to ensure long term resource availability, reduce environmental
impact and enhance operational efficiency. As sustainable practices are becoming part of
the industrial development, the Company is committed to innovating its products in order
to better meet the demand of its customers, with a consistent focus on the environment and
society. This, interalia, includes emissions and improving energy efficiency in its plant
and production processes. Alongside using ecofriendly materials, reducing CO2
transitioning to renewable energy, water conservation is another primary focus area of the
Company wherein it has rainwater harvesting, recycling systems and other efficient water
usage practices in place.
Our ambition is to be a global player playing a leading role in the
decarbonization agenda and our commitment to promoting growth that is sustainable for
people and the planet. The pillars of our sustainability strategy are articulated in four
main areas: environment, innovation, people and communities, and governance. Regarding the
environment, our primary goal is to proactively and pioneeringly engage in decarbonization
processes.
Community development through effective CSR projects is a core value of
M.P. Birla Group driven by the belief that the long-term viability and ability to produce
value are tied to measured contribution in the life of communities in which the
Group's facilities operate. Long before the CSR regulations came into existence, the
Group made it a priority and commitment to serve the society and improve the quality of
life for communities at large. In line with the Group's philosophy, the Company has
set unwavering commitment to enhance the lives of marginalised communities near its plant
and working locations through need based CSR projects in the key areas of education,
healthcare, environmental sustainability, animal welfare, skill development, livelihood
intervention, water and sanitation and rural development.
RECOGNITION
The Company's manufacturing facilities continue to remain
certified by independent and reputed external agency as being compliant as well as aligned
with the external standards for Quality Management System as per ISO 9001:2015 &
TL9000 R6.3/R.5.7(H), Environmental Management System as per ISO 14001:2015, Occupational
Health and Safety Management System as per ISO 45001:2018, Business Continuity Management
System as per ISO 22301:2019 and Information Security Management System as per ISO/IEC
27001:2022 Standards for Design, development and manufacture of optical fibre cables,
ribbon type optical fibre cables, polyethylene insulated jelly filled telecommunication
cables, copper communication cables, insulated wire & cables, electric conductors,
copper cable assemblies and supply of accessories for optical fibre cables & copper
cables. During the year, the audits for these Certifications established continuous
improvement in performance against these standards.
Your directors are pleased to report that, as part of the
Company's unwavering commitment to quality assurance, the Testing Laboratory of the
Company's OFC Unit continues to hold Certificate of Accreditation in accordance with
ISO/IEC 17025:2017 from the National Accreditation Board for Testing and Calibration
Laboratories (NABL) for its facilities at Rewa (M.P.) in the field of testing of optical
fibre and optical fibre cables. During the year under review, the scope of accreditation
has been expanded to include cable elements. The said accreditation remains valid up to
January 8, 2030. Further, the OFC Testing Laboratory, Rewa continues to be assessed and
designated as a Conformity Assessment Body (CAB) by the Government of India, Ministry of
Communications, Department of Telecommunications, Telecommunication Engineering Centre,
New Delhi.
DIRECTORS
In accordance with the provisions of Section 152 of the Companies Act,
2013 read with rules framed thereunder and the Company's Articles of Association,
Shri Dhan Raj Bansal (DIN: 00050612), Director is liable to retire by rotation at the
ensuing Annual General Meeting and being eligible has offered himself for re-appointment
as a Director of the Company. The Nomination and Remuneration Committee as well as Board
of Directors of the Company has recommended his re-appointment for the consideration of
the members at the ensuing Annual General Meeting of the Company. As required under the
Regulation 36(3) of the Listing Regulations and relevant provisions of the Secretarial
Standard on the General Meeting (SS-2), the brief resume and other details of Shri Dhan
Raj Bansal is given in Annexure A' to the Notice of the ensuing Annual General
Meeting.
KEY MANAGERIAL PERSONNEL
As on the date of this Report, Shri Somesh Laddha, Manager & Chief
Financial Officer (CFO) and Ms. Suman, Company Secretary are the Key Managerial Personnel
of the Company as per Section(s) 2(51) and 203 of the Companies Act, 2013 read with the
Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014. During the
year under review, Shri R. Sridharan has resigned from the post of Manager and Chief
Executive Officer (CEO) of the Company with effect from the close of business hours on
January 19, 2026.
Based upon the recommendations of the Nomination and Remuneration
Committee, the Board of Directors in its meeting held on May 22, 2026, appointed Shri
Somesh Laddha as the Manager designated as the Manager & CFO of the Company for a term
of three (3) consecutive years with effect from May 22, 2026 to May 21, 2029, subject to
approval of the Members of the Company at the ensuing Annual General Meeting.
DECLARATION BY INDEPENDENT DIRECTORS
In accordance with Section 149(7) of the Companies Act, 2013 and
Regulation 25(8) of the Listing Regulations, all Independent Directors have submitted
declarations confirming that they meet the criteria of independence as mentioned in
Regulation 16(1)(b) of the Listing Regulations and Section 149(6) of the Companies Act,
2013. The Independent Directors have also individually and severally confirmed that they
are not aware of any circumstance or situation which exist or may be reasonably
anticipated, that could impair or impact their ability to discharge their duties with an
objective independent judgement and without any external influence. Further, the Board
after taking these declarations/disclosures on record and acknowledging the veracity of
the same, opined that the Independent Directors of the Company, are persons of integrity
and possess the relevant expertise and experience (including the proficiency), fulfils the
conditions specified in the Listing Regulations and the Companies Act, 2013 for
appointment of Independent Directors and are independent of the Management.
MEETINGS OF BOARD OF DIRECTORS
During the year under review, the Board met five (5) times viz. on May
21, 2025, August 7, 2025, October 30, 2025, January 29, 2026 and March 21, 2026. The
intervening gap between two meetings did not exceed 120 days as prescribed under the
Companies Act, 2013 and Listing Regulations. The details meeting of the Board of Directors
and its committees and the attendance of the Directors are provided in the Report on
Corporate Governance, which forms a part of the Annual Report. The Independent Directors
of the Company also held a separate meeting on March 21, 2026 without attendance of the
Chairman and other Non-Independent Directors and members of the management, in compliance
with the applicable provisions of the Listing Regulations.
AUDIT AND OTHER COMMITTEES OF BOARD
As required under Section 177(8) read with Section 134(3) of the
Companies Act, 2013 and the rules framed thereunder, the composition and meetings of the
Audit Committee were in line with the provisions of the Companies Act, 2013 and the
Listing Regulations. During the year under review, all the recommendations made by the
Audit Committee were duly accepted by the Board of Directors.
As required under the Companies Act, 2013 and Listing Regulations, the
Company has also constituted various other statutory committees of the Board viz.
Nomination and Remuneration Committee, Stakeholders Relationship Committee and Corporate
Social Responsibility Committee.
The requisite details of all the committees including their terms of
reference, composition, number of meetings held during the year under review and
attendance at the meetings, etc. are provided in the Report on Corporate Governance
forming a part of the Annual Report.
PERFORMANCE EVALUATION OF BOARD, COMMITTEES AND DIRECTORS
Pursuant to the Provisions of the Companies Act, 2013 and Listing
Regulations and the Guidance Note on Board Evaluation issued by SEBI, the Board of
Directors of the Company carried out the annual evaluation of its own performance and that
of its Committees and individual Directors as per mechanism for such evaluation evolved by
the Board, interalia, to assess the skill set and contribution that are desired
recognising that competencies and experiences evolves over time. The manner in which
annual evaluation has been carried out by the Board of Directors is provided in the Report
on Corporate Governance which forms a part of the Annual Report.
As part of the evaluation process, the Board of Directors also
considered the criteria for performance evaluation of Independent Directors and the Board
of Directors as formulated by the Nomination and Remuneration Committee.
The Independent Directors, after taking into account the views of the
Non-Executive Directors and Non-Independent Directors, carried out the annual evaluation
of the Chairman. They have also undertaken the evaluation of the Board as a whole, its
Committees, and individual Directors. The outcome of this evaluation was reviewed and
deliberated by the Board of Directors.
The performance evaluation of Independent Directors was carried out by
the entire Board of Directors, excluding the Directors being evaluated. The results of the
evaluations reflected a high level of commitment, engagement, and effective functioning of
the Board and its various Committees. In conclusion, the Board of Directors expressed
satisfaction with the overall performance of the Board, its Committees, and individual
members.
SELECTION AND APPOINTMENT OF DIRECTORS AND THEIR REMUNERATION
The Board of Directors, in consonance with the recommendations of the
Nomination and Remuneration Committee ("NRC"), has adopted the Terms of
Reference, which, inter alia, sets out with the criteria for identification of members of
the Board of Directors and the selection/appointment of Key Managerial Personnel (KMP) and
Senior Management Personnel of the Company. The NRC recommends the appointment of
Directors and the appointment or re-appointment of the Manager based on his/her
qualifications, expertise, positive attributes, independence and professional expertise,
in accordance with the applicable provisions of the Companies Act, 2013, governing rules
framed thereunder, and the Listing Regulations.
In addition to ensuring diversity of race and gender, the NRC also
considers the impact the appointee would have on the Board's overall balance of
professional experience, background, viewpoints, skills, and areas of expertise.
The Board of Directors in consonance with the recommendations of the
NRC, has also adopted the Remuneration Policy for the members of the Board and the
Executive Management. The Remuneration Policy is aligned with prevailing industry
practices. The guiding principles of the Remuneration Policy are detailed in the Report on
Corporate Governance, which forms a part of the Annual Report. The Remuneration Policy is
uploaded on the website of the Company and can be accessed at weblink:
https://www.birlacable.com/Policies/Remuneration.pdf.
MAINTENANCE OF COST RECORDS
The requirement of maintenance of cost records as specified by the
Central Government under sub-section (1) of section 148 of the Companies Act, 2013, and
the audit of such cost records by a Cost Accountant, is applicable in respect of certain
specified products of the Company. Accordingly, such accounts and records are made and
maintained by the Company.
AUDITORS
In terms of the provisions of Section 139 of the Companies Act, 2013
read with the Companies (Audit and Auditors) Rules, 2014 as amended vide the Companies
(Amendment) Act, 2017 and the Companies (Audit and Auditors) Amendment Rules, 2018
respectively, Messrs V. Sankar Aiyar & Co., Chartered Accountants (Firm Registration
No.109208W) were appointed as Statutory Auditors of the Company to hold office for a term
of five (5) years until the conclusion of the 35th Annual General Meeting (AGM)
of the Company to be held in the year 2027. The Auditors have confirmed to the Company
that they continue to remain eligible to hold office as the Auditors and are not
disqualified for being so appointed as Statutory Auditors under the Companies Act, 2013,
the Chartered Accountants Act, 1949 and the rules and regulations framed thereunder.
The Board of Directors, on the recommendation of the Audit Committee,
has re-appointed Messrs D. Sabyasachi & Co., Cost Accountants (Firm Registration No.
000369), as the Cost Auditors for the financial year 2026-27 for conducting the audit of
the cost records maintained in respect of certain specified products covered under the
Companies (Cost Records and Audit) Rules, 2014 and fixed their remuneration. In terms of
the provisions of Section 148 of the Companies Act, 2013 read with Companies (Audit and
Auditors) Rules, 2014, the remuneration payable to the Cost Auditors, together with
reimbursement of applicable Goods and Services Tax thereon and actual out of pocket and
travelling expenses incurred in connection with the audit of cost accounting records of
the Company, is subject to ratification by the members at the ensuing Annual General
Meeting of the Company. The Cost Audit Report for the financial year ended March 31, 2025,
in respect of the specified products, was filed with the Ministry of Corporate Affairs on
August 26, 2025.
AUDITORS' REPORT
The Auditors' Report on the financial statements of the Company
for the year ended March 31, 2026 forms a part of the Annual Report. There is no
qualification, reservation, adverse remark, disclaimer or modified opinion in the
Auditors' Report that calls for any further comments or explanations.
SECRETARIAL AUDITOR
Messrs R.K. Mishra & Associates, Practicing Company Secretaries
(Unique Identification No. P1991MP039900 and Peer Review Certificate No. 4333/2023) were
appointed as the Secretarial Auditor of the Company pursuant to Regulation 24A of the
Listing Regulations to undertake the Secretarial Audit of your Company for the first term
of Five (5) consecutive years from financial year 2025-26 till financial year 2029-30.
Messrs R.K. Mishra & Associates has confirmed that they are not disqualified from
continuing as Secretarial Auditor of the Company in terms of provisions of the Companies
Act, 2013 & Rules framed thereunder and Listing Regulations.
Pursuant to the provisions of Section 204 of the Companies Act, 2013
and rules thereunder, the Secretarial Audit Report for the financial year ended March 31,
2026 issued by Secretarial Auditors, Messrs R.K. Mishra & Associates, Practicing
Company Secretaries is given in the prescribed form in Annexure-II which is attached
hereto and forms a part of the Directors' Report. The Secretarial Audit Report does
not contain any qualification, reservation, adverse remark or disclaimer. The observation
of Secretarial Auditor is self-explanatory in nature and does not require any comment or
explanation from the Board of Directors.
COMPLIANCE WITH APPLICABLE SECRETARIAL STANDARDS
The Company has proper system in place to ensure compliance with the
provisions of applicable Secretarial Standards. During the year under review, your Company
has complied with applicable Secretarial Standards i.e. SS-1 and SS-2 relating to
"Meetings of Board of Directors" and "General Meetings" respectively
issued by the Institute of Company Secretaries of India. For more details, the members are
advised to refer to the Secretarial Audit Report which is attached hereto and forms a part
of the Annual Report.
RELATED PARTY TRANSACTIONS
All related party transactions that were entered into by the Company
during the financial year under review were generally on arms' length basis and in
the ordinary course of business and in accordance with the applicable provisions of the
Companies Act, 2013 read with rules framed thereunder, the applicable provisions of
Listing Regulations and your Company's Policy on Related Party Transactions. During
the year under review, your Company has not entered into any transactions with related
parties which could be considered material in terms of Section 188 of the Companies Act,
2013. Accordingly, the disclosure of related party transactions as required under Section
134(3)(h) of the Companies Act, 2013 in Form AOC-2 is not applicable. There are no
material significant related party transactions entered into by the Company with its
Promoters, Directors, Key Managerial Personnel or other designated persons which may have
a potential conflict with the interest of the Company at large or which could be
prejudicial to the interest of minority shareholders. Details of the related party
transactions entered into by the Company are provided in Note No. 40 of the Notes to
standalone financial statements for the financial year 2025-26.
Prior omnibus approval of the Audit Committee is obtained on an annual
basis for a financial year for the related party transactions which are of a foreseen and
repetitive in nature. The statement giving details of all related party transactions
entered into pursuant to the omnibus approval together with relevant
documents/information, as required, are placed before the Audit Committee for review and
updation on quarterly basis. Pursuant to the provisions of Regulation 23 of the Listing
Regulations, your Company has submitted to the stock exchanges, disclosures of related
party transactions in the prescribed format every six months on the date of publication of
its standalone and consolidated financial results. The Company's Policy on
materiality and dealing with Related Party Transactions (RPT Policy') as
approved by the Board of Directors is uploaded on the Company's website and can be
accessed at weblink: https://www.birlacable.com/Policies/RPT.pdf.
SUBSIDIARIES, ASSOCIATES AND JOINT VENTURE
Your Company has a Wholly Owned Subsidiary in the name of Birla Cable
Infrasolutions DMCC incorporated at UAE. The Company has formulated a policy on
identification of material subsidiaries in accordance with Regulation 16(1)(c) of the
Listing Regulations and the same is placed on Company's website at
https://www.birlacable.com/Policies/Material-Subsidiaries.pdf. The Subsidiary is not a
material unlisted subsidiary company as defined under the Listing Regulations.
A Statement containing the salient features of the financial
statements, to the extent available, of subsidiary, as prescribed under the first proviso
to sub-section (3) of section 129 of the Companies Act, 2013 read with rule 5 of The
Companies (Accounts) Rules, 2014 is provided as an Annexure to the consolidated financial
statements and therefore not repeated for the sake of brevity. In accordance with the
provisions of Section 136 of the Companies Act, 2013 read with Listing Regulations, the
Company's audited financial statements including the consolidated financial
statements and all other documents required to be attached thereto are placed on the
Company's website https://www.birlacable.com. A report on the performance of
financial position of the wholly owned subsidiary as per the provisions of the Companies
Act, 2013 is provided as part of the consolidated financial statements and hence not
repeated herein for the sake of brevity.
The Company is not having any Associate or Joint Venture Company.
CONSOLIDATED FINANCIAL STATEMENTS
The consolidated financial statements of the Company for the financial
year 2025-26 have been prepared in the same form and manner as that of standalone
financial statements of the Company and are in compliance with the applicable provisions
of the Companies Act, 2013 and as stipulated under Regulation 33 of Listing Regulations as
well as in accordance with the Indian Accounting Standards notified under the Companies
(Indian Accounting Standards) Rule, 2015. The audited consolidated financial statements
together with the Independent Auditor's Report thereon form part of the Annual
Report.
DISCLOSURE OF RATIO OF REMUNERATION OF DIRECTORS AND KEY MANAGERIAL
PERSONNEL, ETC.
As required under Section 197(12) of the Companies Act, 2013 read with
Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules,
2014, the Statement of Disclosure of Remuneration and such other details as prescribed
therein are given in Annexure-III, which is attached hereto and forms a part of the
Directors' Report.
ANNUAL RETURN
A copy of the Annual Return of the Company prepared in accordance with
Section 92(1) of the Companies Act, 2013 read with Rule 11 of the Companies (Management
and Administration) Rules, 2014 is placed on website of the Company in pursuance to
Section 92(3) of the Companies Act, 2013 and the same can be accessed at the weblink
https://www.birlacable.com/Annual-Return.pdf.
PARTICULARS OF EMPLOYEES
The disclosure required pursuant to Section 197(12) of the Companies
Act, 2013 read with Rule 5(2) and 5(3) of The Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014, as amended, in respect of employees of the Company are
given in Annexure-IV, which is attached hereto and forms a part of the Directors'
Report.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNING AND OUTGO
As required under Section 134(3)(m) of the Companies Act, 2013 read
with Rule 8 of the Companies (Accounts) Rules 2014, the information pertaining to
Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo are
given in Annexure-V, which is attached hereto and forms a part of the Directors'
Report.
VIGIL MECHANISM/WHISTLE BLOWER POLICY
In terms of the provisions of Section 177(9) of the Companies Act, 2013
and Regulation 22 of the Listing Regulations, the Company has implemented a Vigil
Mechanism/ Whistle Blower Policy to deal with instances of fraud and mis-management, if
any, and conducting business with integrity including in accordance with all applicable
laws and regulations. No employee has been denied access to the Vigilance Officer as well
as direct access to the Chairperson of the Audit Committee in appropriate or exceptional
cases. The details of the Vigil Mechanism and Whistle-Blower Policy are explained in the
Report on Corporate Governance. The said Policy is uploaded on the website of the Company
and can be accessed at weblink: https://www.birlacable.com/Policies/Whistle-Blower.pdf.
PREVENTION OF SEXUAL HARASSMENT AT WORKPLACE
The Company has complied with the provisions relating to the
constitution of Internal Complaints Committee(s) under the Sexual Harassment of Women at
Workplace (Prevention, Prohibition and Redressal) Act, 2013 ("POSH Act") and
rules framed thereunder. The Company has zero tolerance towards sexual harassment at
workplace and has adopted a Policy on prevention, prohibition and redressal of sexual
harassment at workplace. All employee (permanent, contractual, temporary, trainees) as
well as consultants are covered under the Policy. The framework ensures complete anonymity
and confidentiality. The annual return for the calendar year 2025, has been duly filed
with the concerned authority in compliance with POSH Act.
The details as required under Rule 8(5)(x) of the Companies (Accounts)
Rules, 2014 during the Financial Year 2025-26 are as under: (a) Number of complaints of
sexual harassment received in the year NIL
(b) number of complaints disposed off during the year N.A. (c)
number of cases pending for more than ninety days NIL
GENERAL
Your Directors state that no disclosure or reporting is required in
respect of the following matters as there were no transactions or events concerning the
same during the year under review: (a) No significant or material orders were passed by
the Regulators or Courts or Tribunals which impact the going concern status of the Company
and its operations in future.
(b) There have been no material changes and commitments which affect
the financial position of the Company that have occurred between the end of the financial
year of the Company to which the financial statements relate and the date of this Report.
There has been no material change in the nature of business of the
Company.
(c) The Statutory Auditors, Internal Auditors, Cost Auditors and the
Secretarial Auditors have not reported any instance of fraud committed in the Company by
its officers and employees in terms of Section 143(12) of the Companies Act, 2013.
Accordingly, no detail is required to be disclosed in pursuance to Section 134(3)(ca) of
the Companies Act, 2013.
(d) The Company has neither filed any application under the Insolvency
and Bankruptcy Code, 2016 (31 of 2016), as amended from time to time, nor has availed one
time settlement with respect to any loans from banks or financial institutions.
(e) There were no revisions made in the financial statements and
Directors' Report of the Company. (f) All the material events have been duly
disclosed to the stock exchanges during the year under review. (g) The company is in
compliance with respect to the provisions relating to the Maternity Benefit Act, 1961.
CAUTIONARY STATEMENT
Statements in the Annual Report, including those which relate to
Management Discussion and Analysis describing the Company's objectives, projections,
estimates and expectations, may constitute forward looking statements' within
the meaning of applicable laws and regulations. Although the expectations are based on
reasonable assumptions, the actual results might differ.
ACKNOWLEDGEMENT
The Board of Directors desires to place on record its grateful
appreciation for the excellent assistance and constant support/cooperation received from
the State Government, bankers, investors, vendors etc. and expresses sincere gratitude to
valued customers and other business associates for their persistent faith in the
Company's capabilities. Your Directors also wish to place on record their sincere
thanks and infinite appreciations to all the employees of the Company for their timeless
efforts, passion and perseverance and valuable contribution for sustainable growth and
satisfactory financial performance of the Company and look forward to their support in
future as well.
|
For and on behalf of the Board
of Directors |
|
Harsh V. Lodha |
Bachh Raj Nahar |
| Place : New Delhi |
Chairman |
Director |
| Date : May 22, 2026 |
(DIN: 00394094) |
(DIN: 00049895) |
|