Ref.: BWRL/2021-22/SE/Misc./06 Date: July 28, 2021 539799 .

Bharat Wire Ropes Limited6. Segment-wise or Product-wise performance:The Company believes that its ability to cater a widercustomer base on account of its diversified productoffering has enabled the Company to providecustomization options to its valued customers. Tofurther strengthen the Company's product mix, effortshave been made to focus on productivity & right mixof orders to load and occupy the maximum number ofmachines with large order quantity niche sectors forproviding wire ropes such as special ropes,suspension bridge ropes. The Company believes thatits ability to provide a mix of products along withbeing active in the volume segments has helped inbalancing the Company's revenues7. Business Strategy:A. Expansion of Company's presence in thedomestic markets:The Company is undertaking various marketingactivities to expand and enhance its presence inthe existing business segments by identifyingmarkets where it can provide cost effective,technically advanced products to its clients. TheCompany envisages to have close contacts withmajor buyers and stockists, end-users to providegreater client-interfacing. Further, the Companyhas successfully been awarded and it has certifiedproduct approvals/registrations from BIS forsteel wire ropes and strands etc., and with majorengineering consultants and equipment suppliersB. Focus on development of international marketsfor the Company's Products:The Company's products are being supplied toapprox 50 countries globally in European andScandinavian Countries, Newzealand, Africanand the Middle Eastern markets, South East Asia,West Asia, Latin America and North America.With continued thrust to expand the company isdeveloping Latin American marketC. Strengthening of product portfolio anddeveloping capabilities to manufacture a widerrange of products:The company has strengthen the productportfolio by developing capabilities tomanufacture a wider range of products. Toprovide quality product at reasonable prices hasalways been the ultimate aim of the Company.The Company manufacture all wires at its newplant in Chalisgaon, thereby eliminating thedependency on the limited types of wiresavailable in the market and enabling theCompany to manufacture and offer an increasedrange of wire rope products, including but notlimited to marketing high performance craneropes for ports, large diameter spiral strands forstructures and bridges, elevator ropes, highperformance mining ropes, long-life-cycle4 ANNUAL REPORT 2020 - 21fishing ropes, onshore and offshore ropes,swaged ropes and special ropes for constructionsector.D. Meeting Quality Standards and developingcustomer focus:Providing quality products at reasonable pricehas always been the ultimate aim of theCompany. The Company has in place thestrategy which supports Total QualityManagement. Company's technically qualifiedpersons are determined to achieve the objectiveof zero defects and minimal rejection. TheCompany has testing facilities to ensure that allour products are thoroughly tested prior todispatch from our factory so that grievances canbe minimized.Chalisgaon Plant:Company has been accredited with ISO 9001, ISO14001 and ISO 45000 certifications by TUV SUDSouth Asia Private Limited.Company has achieved a major milestone by gettingthe approval of LLOYDS Register for the plant atChalisgaon and approvals from Bureau of IndianStandards to put ISI mark on the products confirmingto IS: 2266, IS:2365, IS: 4521, IS: 1835, IS: 1855,IS: 1856, IS: 10891 Part 1. It has also receivedapproval from Powergrid Corporation of IndiaLimited for manufacturing 7 strand G S Earth-wire."Company also has CE Certification for ChalisgaonPlant. Various approvals for Elevator industries are inplace for supplies both in domestic and internationalmarketsAtgaon Plant:Company has been accredited with ISO9001certification by TUV SUD South Asia PrivateLimited for our Atgaon plant. Plant is approved byCentral Organization Railway Electrification(CORE) for Stranded Galvanized Steel Anti-creepwire (19/2.50 mm) and also approved by ResearchDesigns &Standards Organization (RDSO) forStainless Steel Wire Rope for different RegulatingEquipment's and Galvanized Stranded Wire forTraction Bond.Plant has received approvals form Bureau of IndianStandards to put ISI mark on the products confirmingto IS: 2266 & IS: 12776. It has also received Approvalfrom Powergrid for manufacturing 7 strands & 19Strands G S Earth-wire.”Atgaon Plant has received Works ApprovalCertificate from Indian Register of Shipping forManufacturer of Steel Wire Ropes for Life Boat Fallused on ships.8. Opportunities and ThreatsGovernment's initiative of expanding infrastructureunder various schemes, will increase the demand forwire ropes in future. Increasing urbanization in Indiaand growth of nuclear families has led to increase in

Bharat Wire Ropes Limitedresidential development. This has further increasedhousing requirements, which will drive the demandfor wire ropes. Rise in mining and quarrying sectorwill also augment the steel wire ropes in market inIndia.The market for steel wire rope is at a matured stage,with a limited number of players dominating themarket. Steel Wire ropes are used dynamically forlifting and hosting in applications, and fortransmission of mechanical power. It has beenanticipated that steel wire ropes production will meetthe domestic market demand owing to year-on-yearincrease in production capacities of the companies.The resurgence in the Oil and Gas industry is expectedto increase the number of oil rigs which will furtheradd impetus to the growth of steel wire rope industry.International customers have shown inclination todivert focus from China to India for procurement ofwire ropes in view of recent political differences.Risk is the vital factor of every business. TheCompany has in place a Risk managementCommittee which outlines the amount of riskinvolved in the business and various techniques forrisk mitigation & Risk minimization. The Companybelieves that managing risks helps in maximizingreturns. The Company's approach for addressingbusiness risks is comprehensive and includesidentification of Risks, periodic review of such risksand measures to for mitigating such risks.The outbreak of Corona virus (COVID-19) pandemicglobally and in India is causing a significantdisruption and slowdown of economic activity.Measures taken to contain the spread of the virus,including travel bans, quarantines, social distancingand closures of non-essential services and theuncertainty associated with the lifting or reimposition of these restrictions, have furtheraggravated the business environment.However, high debt levels of manufacturers andactual implementation of infrastructure projectsremain a concern for the industry.FY 2020-21 has begun with the COVID - 19pandemic and gradually spreading across most partsof the world. The nationwide lockdowns to break thechain of transmission brought economic activities to anear halt, affecting the demand. Due to ongoingvaccination support and various steps taken bygovernment the situation has started improving fromMay onwards.9. Risks and ConcernsThe Board of Directors regularly overview externaland internal risks associated with the operations of theCompany and carries out its impact assessment &effective implementation of the mitigation plans andrisk reporting is conducted.Growth of the sector is depended on the enlargementof allied sectors. Forecasted plans and projections aresubject to risk. Various kinds of risk associated withthe development are Liquidity Risk, Market Risk andOperational Risk. Other dominant threats faced by theCompany are in the form of competition it faces in theindustry. In particular, the Company competes withother wire rope manufacturing companies, both inIndia and abroad, on the basis of a number of factors,including but not limited to quality, time of deliveryand price. Fluctuations in the price, availability andquality of raw materials used in our manufacturingprocess could have a material adverse effect on cost ofsales or the Company's ability to meet customerdemands. There can be no assurance that theCompany will always be successful in its efforts toprotect the business from the volatility of the marketprice of raw materials, and the business can beaffected by dramatic movements in prices of rawmaterials.ANNUAL REPORT 2020 - 21 5

Bharat Wire Ropes LimitedKey RisksImpact on the CompanyMitigationA Slowdown in EconomicGrowthEconomic factors like increase in rate of inflation,scarcity of credit, increases in commodity and energyprices other factors such as political or regulatory action,including adverse changes in liberalization policies,business corruption, social disturbances, terrorist attacksand other acts of violence or war, natural calamities mayimpede Company’s growth and expansion plans.Company’s operations and financial condition may beadversely affected by, conditions in financial marketsin the global economy.To constantly review the changes ineconomic conditions and plan to mitigatethe same.Changes in TechnologyInability to keep pace with the rapidly changingTechnological Environment adversely affect theCompany’s ability to compete efficiently, reducecompetitiveness, ability to develop new products and theconsequential quality of Company’s products, and couldalso adversely affect sales and profitability. To anticipate and respond on a timelybasis and economical basis totechnological advances in the sectorwhich Company operates. Preventive maintenance activities willonly be productive. Company needs to establish a process formonitoring life cycle stages ofequipment.Supply of Raw MaterialDisruption of supply of raw materials from our supplierswill adversely affect Company’s operations and ability todeliver products on a timely basis.To enter into an understanding with thesuppliers in respect of long term supply ofraw material. Monitor price movementregularly and keep inventories of2-3 monthsFluctuation in Cost of rawMaterialThe prices of Raw Material are subject to price fluctuationwhich may affect the Profitability and reduce supplyleading to increase in supply costs due to which financialperformance may be materially and adversely affected. Timely anticipation of fluctuation insupply cost. Adapt to changing supply cost andadjusting purchasing practicesaccordingly to be able to negotiatefavorable pricing terms with suppliersfor such raw material.Industrial ActionsThe Company is exposed to strikes, work stoppages orincreased wage demands by the employees or any otherkind of disputes with employees of the Company couldadversely affect its business and results of operations. Be Proactive in addressing disputes &grievances. Address the issue as soon as theemployee raise them.Maintenance of adequatehealth and safety standardsCompany is subject to the risk of industrial accidents whichcould have significant adverse consequences for Company‘sworkers and facilities, as well as the environment. Suchincidents could lead to production stoppages, the loss of keyassets, or put at risk employees (including those of subcontractors and suppliers) or persons living near the affectedsite. In addition, such incidents could damage Company‘sreputation, leading to the rejection of products by customers,These events could have a material adverse effect on theCompany’s revenues, results of operations, profitability andcash flows and diversion of management time into rebuildingand restoring its reputation. Prevent worker contact with all rotatingor moving machinery by using guards,enclosures, or guarding devices betweenthe worker and the machine.10. Internal Control System and their adequacy:Company has in place robust Internal Control system tomaximize the effectiveness and efficiency by includingactivities that are tailored to the nature, size andcomplexity of the entity. The Company follows properhierarchy for reporting of routine activities. Directaccess to the senior Management is available in extreme6 ANNUAL REPORT 2020 - 21 Implement a lockout procedure. This willensure that power to equipment iscompletely disconnected and cannot bereconnected while someone is workingon the equipment.cases. The Company has framed whistle blower policyto report concerned areas to the Management.Management is responsible for establishing andmaintaining internal financial controls. TheCompany has adequate Internal Control system withreference to financial statements and to ensure that allassets are safeguarded and protected against loss

Bharat Wire Ropes Limitedfrom unauthorized use or disposition. During the year,such controls were tested and no reportable materialweaknesses in the design or operation were observed.11. Financial Performance:The Financial statements of the Company areprepared in Compliance with the Companies Act,2013 and significant accounting policies used for thepreparation of financial statements are disclosed in thenotes to financial statement.(Amount in Lakhs)Particulars2020 - 212019 - 20Total Revenue25,068.5625,803.54Profit beforeDepreciation,Financial Cost,Exceptional Items Finance Cost3,407.128,946.95Exceptional ItemsNet Revenue from Operations:Net revenue for the year is decreased by 2.85% onaccount of loss of productivity during lockdown.Profit before Depreciation, Financial Cost,Exceptional Items and Tax (PBIDT): P B I D T h a simproved on account of effective cost control.Finance Cost: Finance cost has decreased in view ofRestructuring of loans.Ratios:Sr.FYNo. Ratio20-21Turnover 6.261 DebtorsRatio2InventoryTurnover Ratio2.463Interest CoverageRatio0.970.33Improved on account ofrestructuring of debts4Current Ratio1.730.35Improved on account ofrestructuring of debts5Debt Equity Ratio 0.6317.26Improved on account ofrestructuring of debtsOperating ProfitMargin (%)--(601.52)(2,104.40)(1,678.72)(6,095.77)6Total ComprehensiveIncome for the Year20.560.967Earnings per share(Rs.)(3.73)(13.56)Taxation (Net)Net Profit After TaxFY19-20 RemarksReduced due delays in8.32 collection on account ofcovid pandemicImproved on account of2.1 better InventoryManagement8on account of4.74% 2.93% Improvedcost controlson account ofNet Profit Margin -6.71% -23.65% Improvedrestructuring and cost(%)controlsImproved on account ofReturn on Net-3.87% -156.08% conversion of debts intoworthCCPS.12. Human Resource:Human resource has always been one of the most valued stakeholders and a key differentiator for our Company. Itcould be invested through education and training which leads to an improvement in the quality and level of production.The Company has always given importance for developing individuals as well as teams. The system followed istransparent and performance based and it endeavors to retain, develop and provide better working environment to theemployees by providing an atmosphere of trusteeship, competition and challenge, thereby providing opportunities forpersonal and professional growth through training and ample career enhancement opportunities. As on March 31st,2021, the number of permanent employed is 486 and there were 415 employees in contract basis.Bharat Wire Ropes Limited has shown full commitment towards employees, investors, contractors, consultants and allrelated personnel by providing safe-working conditions along with other welfare measures.13. Cautionary statement :Statements in this report on Management discussion and analysis relating to the Company's objectives, projections,estimates, expectations or predictions may be forward looking statements within the meaning of applicable securitylaws or regulations. These statements are based upon certain assumptions and expectations of future events. Actualresults could however differ materially from those expressed or implied. Important factors that could make a differenceto the Company's operations include global and domestic demand-supply conditions, selling prices, raw material costsand availability, changes in government regulations and tax structure, general economic developments in India andabroad, factors such as litigation, industrial relations and other unforeseen events. The Company assumes noresponsibility in respect of forward looking statements made herein which may undergo changes in future on the basisof subsequent developments, information or eventsFor Bharat Wire Ropes LimitedFor Bharat Wire Ropes LimitedMurarilal MittalManaging DirectorDIN: 00010689Mayank MittalJoint Managing DirectorDIN: 00127248Date: June 25, 2021Place: MumbaiANNUAL REPORT 2020 - 21 7

Bharat Wire Ropes LimitedDIRECTORS' REPORTTo,The Members ofBharat Wire Ropes LimitedDear Members,The Directors of your Company are pleased to present the35th Annual Report on the business and operations of theCompany and the Audited Financial Statements for theFinancial Year (“F.Y.”) ended March 31, 2021.1. FINANCIAL PERFORMANCE:The performance of the Company is summarized below:(Amount in Rs. in 1.0930.3825,068.5625,803.54Profit before InterestDepreciation and Taxes3,295.582,927.24Less: Interest3,407.128,946.95Less: come from BusinessOperationsOther incomeTotal RevenueProfit / (Loss) before TaxLess: Extra-ordinary Item(Goodwill Written Off)--Less: Current Income Tax--Less: Minimum AlternateTax Credit Entitlement--Less: Deferred Tax(601.52)(2,104.40)Profit / (Loss) after Tax(1,678.72)(6,095.77)Other ComprehensiveIncome / (Expenses) for theYear, Net of TaxTotal ComprehensiveIncome for the Year,Net of Tax20.560.96(1,699.28)(6094.80)Note: Previous year's figures have been regrouped/reclassified wherever necessary to correspond withthe current year's classification / disclosure.2. HIGHLIGHTS OFTHE FINANCIALSUMMARY:The total revenue of the Company for F.Y. 2020-2021stood at Rs. 25,068.56 Lakhs. The Loss has reduced toRs. 1,678.72 Lakhs during F.Y. 2020-2021 ascompared to Loss of Rs. 6,095.77 Lakhs in theprevious year.3. COVID-19:Operation of the company were marginally affectedduring the year due to outbreak of Covid -19. Plantoperations were generally smooth except in the monthof April 2020 when full lockdown was announced.Majority of Head office employees have worked from8 ANNUAL REPORT 2020 - 21Home and attended office partially as per guidelinesand directions issued by the government from time totime. The overall operations of the company havebeen managed in such manner that clientcommitments were not materially compromised. Thecompany has maintained full precaution in ensuringthe health and well-being of all its work force as peradvisory and guidelines issued by Governmentbodies from time to time.4. SHARE CAPITAL: The Authorized Capital of the Company as onMarch 31, 2021, was Rs. 65,50,00,000 (RupeesSixty-Five Crores Fifty Lakhs Only) divided intoRs. 65,46,00,000 (Sixty-Five Crore Forty-SixLakhs) divided into 6,54,60,000 (Six Crore FiftyFour Lakhs Sixty Thousand) Equity Shares of Rs.10/- (Rupees Ten Only) each and Rs. 4,00,000(Rupees Four Lakhs Only) divided into 40,000(Forty Thousand) 0.01% CompulsorilyConvertible Preference Shares of Rs. 10/- (RupeesTen Only) each. The Paid-up Share Capital ofthe Company as on March 31,2021, wasRs.62,61,14,690/- (Rupees Sixty Two Crores SixtyOne Lakhs Fourteen Thousand Six Hundred andNinety Only) consisting of 6,25,73,203 EquityShares of Rs. 10 each and 38,266 (Thirty EightThousand Two Hundred and Sixty Six) NonCumulative, Non-Voting 0.01% CompulsoryConvertible Preference Shares of the face value ofRs. 10/- each. ChangesinShareCapitalduringtheyear underreview:Ø Increase in Authorized Share Capital vide SpecialthResolution passed at 34 Annual General Meeting(“AGM”) held on September 15, 2020 fromRs. 52,00,00,000/- (Rupees Fifty-Two CroresOnly) divided into 5,20,00,000/- (Five CroresTwenty Lakhs) Equity shares of Rs 10/- (RupeesTen Only) to Rs. 65,50,00,000 (Rupees S

manufactured, the usage of these steel wire ropes has significantly increased in various diverse applications. Wire rope consists of several strands of metal wire laid (twisted) into a helix. The term "cable" is often used interchangeably with "wire rope". Bharat Wire Ropes Limited (“the Company”) is a l