MIRA INFORM REPORT

Report Date :

29.12.2012

IDENTIFICATION DETAILS

Name :	YOU BROADBAND AND CABLE INDIA LIMITED (w.e.f. 12.01.2010)
Formerly Known As :	YOU BROADBAND AND CABLE INDIA PRIVATE LIMITED (w.e.f. 17.11.2009) YOU TELECOM INDIA PRIVATE LIMITED (w.e.f. 23.11.2007) YOU BROADBANK NETWORKS INDIA PRIVATE LIMITED (w.e.f. 21.12.2006) BG BROADBAND NETWORKS INDIA PRIVATE LIMITED (w.e.f. 29.06.2001) NETSHASTR FACILITIES INDIA PRIVATE LIMITED
Registered Office :	Plot No. 54, Marol Co-operative Industrial Estate,, Makwana, Andheri (East), Mumbai-400059, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	13.11.2000
Com. Reg. No.:	11-139321
Capital Investment / Paid-up Capital :	Rs. 2415.499 millions
CIN No.: [Company Identification No.]	U51909MH2000PLC139321
TAN No.: [Tax Deduction & Collection Account No.]	MUMY01909F
PAN No.: [Permanent Account No.]	AABCB6062F
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Providing infrastructure support to licensed telecommunications service providers, Cable Operators, Internet Service providers by providing Dark Fibre, Fixed Links, Duct Space, Towers, Poles And Pits.
No. of Employees :	Information denied by management

RATING & COMMENTS

MIRA’s Rating :

B (35)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 8540000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a subsidiary of ‘YOU Telecom [Mauritius] Limited’. It is an established company having a moderate track record. The latest financials of the company are not made available with the government department. As per previous year’s record, it has incurred loss from its operations. There appear some accumulated losses recorded by the company. Reserves appear to be low. However, trade relations are reported as fair. Business is active. Payment terms are reported as slow but correct. The company can be considered for business dealings with some caution.

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	BBB- (Long term bank facilities)
Rating Explanation	Moderate degree of safety and moderate credit risk
Date	March, 2012

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION DECLINED

Management Non Co-operative (Date: 27.12.2012)

LOCATIONS

Registered Office :	Plot No. 54, Marol Co-operative Industrial Estate,, Makwana, Andheri (East), Mumbai-400059, Maharashtra, India
Tel. No.:	91-22-40190000
Fax No.:	91-22-40190155
E-Mail :	compliance@youbroadband.co.in rakesh.mundra@youtelecom.com hitesh.gandhi@youtelecom.com corp.comm@youbroadband.co.in

DIRECTORS

As on 28.09.2012

Name :	Eyyuni Venkat Srinivas Rangaswamy Chakravarthy
Designation :	Managing director
Address :	602, F Block, Great Estate Gardens, LBS Marg, Kanjurmarg (West), Mumbai-400078, Maharashtra, India
Date of Appointment :	24.05.2007
DIN No.:	00603085
Name :	Mr. Michael David Gerald Joseph Kazma
Designation :	Director
Address :	340 SW, 16^th ST, Boca Raton, Florida, 334327205, United States of America
Date of Appointment :	29.10.2007
DIN No.:	02114978
Name :	Sean George Cronin John Vernon Sutcliffe
Designation :	Director
Address :	Thatched House, 1 High Stree, Reading, Rg108JA, United Kingdom
Date of Appointment :	28.09.2010
DIN No.:	03014252
Name :	Mr. Satish Chavva Ramamohana Rao
Designation :	Director
Address :	80, City Harbour, 8 Selsdon Way, London, E149GR, United Kingdom
Date of Appointment :	26.09.2011
DIN No.:	03615175

KEY EXECUTIVES

Name :	Shivani Jai Kant Chaturvedi
Designation :	Secretary
Address :	25/101 Fam Society, Koperkhairane, Navi Mumbai, Maharashtra, India
Date of Appointment :	07.09.2012
PAN No.:	AMHPC6517B

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 28.09.2012

Names of Shareholders	No. of Shares	Percentage of Holding
YOU Telecom (Mauritius) Limited	199144375	82.44
P R Srinivasan Growth Partnership Co-Investment Trust	2	0.00
You Employees Welfare Trust	19978343	8.27
Bennett Coleman and company Limited	10661848	4.41
Rambhaben Vkabhai Tanti	2137763	0.89
Gita Tanti	2137763	0.89
Sangeeta Tanti	2137763	0.89
Lina Tanti	2137764	0.89
Radha Tanti	2137764	0.89
Edelweiss Capital Limited	1076555	0.45
Eyyuni Venkat Srinivas Chakravarthy	1	0.00
Partha Choudhary	1	0.00
Neeraj Bhatia	1	0.00
Kishore Velankar	1	0.00
Khush Kabraji	1	0.00
G.R. Sridhar	1	0.00
Nalamvelil Koshy Rouse	1	0.00
Hetal Shah	1	0.00
Total	241549948	100.00

Equity Share Break up (Percentage of Total Equity)

As on 28.09.2012

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	82.44
Bodies corporate	13.13
Other top fifty shareholders	4.43
Total	100.00

BUSINESS DETAILS

Line of Business :

Providing infrastructure support to licensed telecommunications service providers, Cable Operators, Internet Service providers by providing Dark Fibre, Fixed Links, Duct Space, Towers, Poles And Pits.

GENERAL INFORMATION

No. of Employees :

Information denied by management

Bankers :

v Axis Bank Limited

Credit Management Centre, Unit-6, Corporate Park, Sion Trombay Road, Chembur, Mumbai - 400071, Maharashtra, India

Facilities :

Secured Loan	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Rupee term loans banks secured	168.657	0.000
Rupee term loans others secured	5.671	8.029
Working capital loans banks secured	43.646	37.721
Loans taken for other fixed assets secured	19.217	40.370
Total	237.191	86.120
Unsecured Loan	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Other debt unsecured	224.761	227.550
Total	224.761	227.550

Banking Relations :	--
Auditors :
Name :	B S R and Associates Chartered Accountants
Address :	Excelus, 1^st Floor, Apollo Mills Compound, N M Joshi Marg, Mahalakshmi, Mumbai- 400011, Maharashtra, India
PAN No.:	AADFB6889R
Joint Venture :	You Snapper Wireless India Private Limited
Holding Company :	YOU Telecom (Mauritius) Limited
Fellow Subsidiary :	YOU HITS Conditional Access Services Private Limited
Associate :	Digital Outsourcing Private Limited
Enterprise over where employees exercise significant Influence :	Digital Infotainment Private Limited SCOD 18 Networking Private Limited Digital BCN Entertainment Private Limited Digital Neptune Teletainment Private Limited Digital Dharwad One Private Limited Digital Earth Entertainment Private Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
750000000	Equity Shares	Rs.10/- each	Rs. 7500.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
241549948	Equity Shares	Rs.10/- each	Rs. 2415.499 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		2415.499	2415.499	3913.220
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		52.811	43.173	231.547
4] (Accumulated Losses)		(333.259)	(164.006)	(1836.155)
NETWORTH		2135.051	2294.666	2308.612
LOAN FUNDS
1] Secured Loans		237.191	86.120	99.148
2] Unsecured Loans		224.761	227.550	0.000
TOTAL BORROWING		461.952	313.670	99.148
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		2597.003	2608.336	2407.760
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1226.434	1344.630	1498.006
Capital work-in-progress		117.552	123.453	159.808
INVESTMENT		294.628	294.677	187.790
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2.506	2.420	3.278
	Sundry Debtors	73.953	81.650	72.641
	Cash & Bank Balances	235.436	270.882	91.927
	Other Current Assets	8.972	8.356	0.000
	Loans & Advances	1113.673	896.034	776.067
Total Current Assets		1434.540	1259.342	943.913
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	186.202	203.348	184.954
	Other Current Liabilities	265.578	190.666	177.706
	Provisions	24.371	19.752	19.097
Total Current Liabilities		476.151	413.766	381.757
Net Current Assets		958.389	845.576	562.156
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2597.003	2608.336	2407.760

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	736.934	743.916	738.690
		Other Income	71.654	59.909	63.457
		TOTAL (A)	808.588	803.825	802.147
Less	EXPENSES
		Consumption materials changes inventories	70.576	65.599	703.108
		Manufacturing service costs	161.298	149.835
		Employee related expenses	212.078	169.312
		Administrative selling other expenses	231.745	247.119
		Exceptional income expense,	18.387	35.311
		Prior period items	6.414	10.906
		TOTAL (B)	700.498	678.082	703.108
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		108.090	125.743	99.039
Less	FINANCIAL EXPENSES (D)		25.831	23.247	13.015
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		82.259	102.496	86.024
Less/ Add	DEPRECIATION/ AMORTISATION (F)		251.512	266.502	269.760
	PROFIT BEFORE TAX (E-F) (G)		(169.253)	(164.006)	(183.736)
Less	TAX (H)		0.000	0.000	2.370
	PROFIT AFTER TAX (G-H) (I)		(169.253)	(164.006)	(186.106)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(164.006)	(1836.155)	(1650.049)
Less	Adjustment on account of capital reduction during the year		--	(1836.155)	--
	BALANCE CARRIED TO THE B/S		(333.259)	(164.006)	(1836.155)
	Earnings Per Share (Rs.)		(0.70)	(0.53)	(0.53)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	(20.93)	(20.40)	(23.20)
Net Profit Margin (PBT/Sales)	(%)	(22.97)	(22.05)	(24.87)
Return on Total Assets (PBT/Total Assets}	(%)	(6.36)	(6.30)	(7.52)
Return on Investment (ROI) (PBT/Networth)		(0.08)	(0.07)	(0.08)
Debt Equity Ratio (Total Liability/Networth)		0.44	0.32	0.21
Current Ratio (Current Asset/Current Liability)		3.01	3.04	2.47

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2011	31.03.2010	31.03.2009
	(Rs. In Millions)
Creditors due others	186.202	203.348	184.954
Total	186.202	203.348	184.954

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	-----
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	-----
22]	Litigations that the firm / promoter involved in	-----
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	-----
26]	Buyer visit details	-----
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	No
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	No
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

BACKGROUND

Subject was incorporated on 13 November 2000 as NetShastr Facilities India Private Limited for carrying on the business of providing infrastructure support to licensed telecommunications service providers, cable operators, internet service providers by providing dark fibre, fixed links, duct space, towers, poles and pits.

The Company changed its name to BG Broadband Networks India Private Limited vide fresh certificate of incorporation dated 29 June 2001. Thereafter, the name of the Company was changed from BG Broadband Networks India Private Limited to YOU Broadband Networks India Private Limited vide a fresh certificate of

incorporation dated 21 December 2006.

The Honorable High Court of Mumbai had approved the scheme of amalgamation of erstwhile YOU Telecom India Private Limited (Merged Company) with YOU Broadband Networks India Private Limited on 11 April 2007 pursuant to Sections 391 to 394 and other applicable provisions of the Companies Act, 1956 with effect from the appointed date of 1 April 2006. Pursuant to the amalgamation, the name of YOU Broadband Networks India Private Limited has been changed to YOU Telecom India Private Limited w.e.f. 23 November 2007.

The Company has changed its name to You Broadband and Cable India Private Limited vide fresh certificate of incorporation dated 17 November 2009. Thereafter, name of the Company changed from You Broadband and

Cable India Private Limited to Subject vide a fresh certificate of incorporation dated 12 January 2010.

FINANCIAL HIGHLIGHTS

During the year the company has taken some strong steps to create a platform for sustained growth and future profitability. This was necessary on the face of continuing difficult times in the economy as indicated by the rising interest rates, erratic investor sentiments as exhibited by the plunging stock exchange indices and dull market outlooks. This resulted in the company not being able to launch its proposed IPO for which it had received the SEBI approval in December 2010. However, the company went ahead with its expansion plans in a limited way in the existing cities of operations and received a sanction of a term loan of INR 250 million from Axis Bank Limited in December 2010. This set the pace of partial recovery both in terms of revenues and profitability during the last quarter of the year under review and for continuing growth.

In the core business the company was able to largely maintain its revenues after it was successful in significantly increasing its subscriber installations in the last quarter of the year. As a result, in spite of no expansions in the first three quarters the Broadband revenues could be maintained almost at the same levels as last year. Further, during the year the company put in dedicated focus on its infrastructure leasing business which showed an increase of about 9% over last year. This however, was offset to an extent by the decline in the internet telephony revenues during the year. Overall in the operational revenues there was a decline of about 1% during the year.

During the period the EBITDA declined compared to the last year by around 22%. This was due to two largely strategic reasons and actions by the company during the year which involved a build up of certain expenses to act as an investment for future growth in subscribers and revenues.

Firstly, the company decided to create its bench strength of field executives in the areas of sales, installations and retention with the intention of ramping up its subscriber installations as a part of the expansion plans. It gradually increased the field personnel strength by 384 during the year. This was the principal reason for an increase of about 25% in the personnel expenses. Secondly, the company took a decision to increase its advertisement campaigns and promotions of its service plans in a way such that it imparted the company and its brand a lot more visibility in the key cities of operations. Consequently the company utilized a part of the advertisement bank under the treaties agreement with BCCL. The resultant of this was that the advertisement expenditure increased by about 31.5% during this year.

The company, however, persisted with its cost saving initiatives during the year under review in the areas of bandwidth costs and the other general and administrative expenses and achieved significant savings of around 17%. In addition, the Company continued to invest in its associate company for Video business.

BROADBAND SERVICES

During the year, the company focused largely on cost optimization, capex rationalisation and customer churn control. It also focused on additional value added services to its enterprise customers by way of security, storage and threat management solutions. This was imperative to maintain the revenues from the enterprise segment business in the face of stiff competition.

The company continued its focus on retention of existing customers by way of improved service levels, more efficient retention processes and also focused on increasing its customer base by launching new and attractive plans and value added services. A lifetime plan called the Infinity was launched in the last quarter which was the first of its kind in the Broadband industry. Further it also launched some plans which gave very high speeds and exceptional customer experience. In addition the subscribers were given limited mobility within wireless hotspots utilizing Wi Fi routers, access points and other associated equipments in selected areas within the company's network. WiFi technology was also used to reach out to subscribers in areas where wireline connectivity would not be feasible.

These were instrumental in adding new subscribers in the last quarter of the year as well as in churn control. In an important step towards expanding the operations of the company in the existing cities and to keep pace with the evident demand for the services of the Company, a term loan facility has been sanctioned by Axis Bank Limited for an amount of INR 250 million. The Company had in the year under review commenced deployment of the funds in developing and building networks by way of purchase of cables, equipments and services in the four selected cities of Surat, Vadodara, Ahmedabad and Pune. The Company, in these cities aims to expand the number of nodes, backbone and access networks and pass increased number of buildings and the same would be well supported by the already existing technical manpower in these cities.

Till the end of the period under review the company has drawn down INR 168.656 millions out of the total sanction of the term loan and was in the process of utilizing the same.

FUTURE OUTLOOK

BROADBAND SERVICES

The company plans to grow the Broadband Internet Access and internet telephony businesses in existing as well as new geographies. This will help its penetration of the homes passed by being a provider multiple services viz., data, voice and other value added services as well as increase the scale of business and therefore increase the market share.

The Company is also taking initiatives to introduce more Value Added Services and implementing very innovative schemes and tariff plans to make its service more attractive to the subscribers. It intends to bring in revolutionary steps to provide the subscriber complete freedom of choice and wide a variety of plans and tariffs which are unheard of. There is a continuous focus on optimizing the quality and performance of the network to ensure utmost customer satisfaction, by improving the network uptime and other critical parameters. The company has also commenced the extensions of fibre optic network nearer to the homes for better connectivity solutions and enhanced performance.

The Board is of the opinion that the steps initiated by the Company for development of the Broadband Internet Access and the Internet Telephony business will not only bring in growth but will also rationalize the capital expenditure of the Company, while ramping up.

CAPACITY UTILISATION AND NEW SERVICES

During the year under review efforts have been made to improve utilization of installed Cable Modem Termination System (CMTS) capacity by increasing the installed subscriber base on existing CMTS. At present the Company is not fully utilising its installed capacity of CMTS located in the various cities of operations in terms of number of modems as compared to the theoretical technical capacity. However, it has done a realignment of the CMTS within the cities wherever necessary to ensure even distribution of load on each of them. The Company has converted almost all active CMTS to DOCSIS 2.0 mode which has helped increase the upload capacity for its customers. In addition, some DOCSIS 3.0 CMTS have also been deployed to support very high speed delivery to subscribers. The Company has also initiated new services like Bandwidth on Demand and Very High speed Broadband plans to wean away subscribers from competition.

PRESS RELEASE

Reliance Metro Airport Express Goes WiFi with YOU Broadband
Soon passengers will be able to access Internet from inside the metro rail

Mumbai, Maharashtra, India, Monday, January 23, 2012 -- (Business Wire India)

In a first of its kind service in India, stations along Reliance Metro Airport Express Route are fully WiFi-enabled. In a move that is bound to benefit huge number of passengers, broadband major YOU Broadband and Cable India Limited in association with Reliance Metro Airport Express introduced WIFI services at all stations along the Express Route.

As an inaugural offer, the WiFi service operational since January 13, 2012, is free of charge. All 6 stations along the Express Route - New Delhi Railway Station, Shivaji Stadium, Dhaula Kuan, Delhi Aero City, Indira Gandhi International Airport and Dwarka Sector 21 stations - are WIFI enabled. Going forward WiFi service will be available inside the metro rail coaches providing a never before connectivity experience for travellers.

With this easy to register service, frequent air travelers get access to Internet that adds fun and excitement to their wait time.

Commenting on the latest development, EVS Chakravarthy, CEO YOU Broadband said, “We have always believed that innovation is the key to keep customer engaged and interested in our services. It helps us pioneer and tread new paths that create endless possibilities and value to our customers. Reliance Metro Airport Express Route WiFi project is one such endeavour that we are proud to be associated with. From a strategic point of view it helps us get ready for future challenges and opportunities. YOU Broadband is confident that this project would be a success, similar on the lines of Mumbai Airport WiFi project.”

“YOU Broadband is focused on enhancing customer experience in terms of flexibility in connectivity across access mediums. As the world is getting smarter, service providers need to think a step ahead”, added Mr. Chakravarthy.

Speaking on the newly introduced service, Reliance Infrastructure spokesperson said, “We are immensely happy to introduce WiFi connectivity at the Reliance Metro Airport Express stations. This is for the first time in our country metro commuters will experience wireless internet connectivity at metro station itself, while traveling. We are hopeful that this free WiFi access, in association with YOU Broadband will encourage business travelers as well as other passengers to take this absolutely hassle-free Airport Express Metro route."

About YOU Broadband:

YOU Broadband & Cable India Limited is one of India’s leading cable broadband service providers offering high speed broadband internet services across 11 cities. Owns and operates over 990 kilometres of Optic Fibre cable and over 4100 kilometres trunk coaxial cable network spread across the 11 operational cities.

An ISO 9001:2008 certified company, YOU Broadband’s network is present in Mumbai, Navi Mumbai, Surat, Vadodara, Ahmedabad, Bangalore, Chennai, Gurgaon, Pune, Hyderabad and Vishakhapatnam. YOU offers Wireless broadband services in Mumbai, Navi Mumbai, Pune, Ahmedabad and Gurgaon.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U51909MH2000PLC139321
Name of the company	YOU BROADBAND AND CABLE INDIA LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No. 54, Marol Co-operative Industrial Estate,, Makwana, Andheri (East), Mumbai-400059, Maharashtra, India Email: compliance@youtelecom.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10264316
Type of charge	v Book debts v Movable property (not being pledge) v Others (Stocks, Plant, Machinery etc purchased/imported.)
Particular of charge holder	Axis Bank Limited Credit Management Centre, Unit-6, Corporate Park, Sion Trombay Road, Chembur, Mumbai - 400071, Maharashtra, India Email: aslam.merchant@axisbank.com
Nature of instrument creating charge	Link Document cum Amendment Agreement for Realignment of Facilities dated February 22, 2011. Hypothecation by way of second charge on the current assets of the company, both present and future being movable properties, referred as stock and outstanding monies receivable, claim and bills. Hypothecation by way of first pari passu charge on the entire moveable fixed assets excluding specified assets charged with CISCO system Capital (I) Pvt. Ltd, referred as moveable properties.
Date of instrument Creating the charge	22.02.2011
Amount secured by the charge	Rs. 250.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Term Loan :Base Rate + 3.25% = 11.25% p a, payable at a monthly rest (as per the Sanction Letter) The present base rate is 8% p. a. Letter of Credit: Commission and charges as per Bank's standard rates Terms of Repayment A) Term Loan of Rs 250.000 millions 1 12 Monthly installments - Rs. 4.500 millions commencing from 7 months from the date of the 1st drawdown. 2 Next 29 installments - Rs. 6.500 millions. 3 Last installment - Rs. 7.500 millions Interest to be serviced separately on a monthly basis B) Letter of Credit 1 As per Sanction Letter or as stipulated by Bank from time to time. 2 Devolvement of bills or non payment of any charges-interest rate at BPLR per annum for the period of default/delay 3 Import bill-crystalised RBI guidelines Margin 25.53% Extent and Operation of the charge Within the overall Term Loan of Rs.250.000 millions, the Bank granted Letter of Credit limit (as sub limit of Term Loan) of Rs.50.000 millions. The security of stocks, Book Debts, Current Assets, movable plant, machinery etc., given earlier shall continue as security for the realigned limit of Rs.250.000 millions. Others Maximum usance upto 120 days
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Capital good purchased or imported under the Letter of Credit First pari passu charge on Movable Properties like plants, machinery, spares, tools, accessories lying at Cos premises or elsewhere or in transit;More particularly described in Sch II to CHD Second Charge on stock of RM, WIP, FG, Packing material and other current assets lying at Cos premises or elsewhere or in transit. Second Charge on Book debts, outstanding monies, receivables, claims bills, etc due and owing to the company in the course of its business.
Particulars of the present modification	Now vide this Modification,Within the overall Term Loan of Rs.250.000 millions, the Bank granted Letter of Credit limit (as sub limit of Term Loan) of Rs.50.000 millions. The security of stocks, Book Debts, Current Assets, movable plant, machinery etc., given earlier shall continue as security for the realigned limit of Rs.250.000 millions

FIXED ASSETS

v Tangible Assets

• Leasehold Improvement
• Plant and Machinery
• Computers
• Office Equipments
• Furniture, Fixture and Fittings
• Vehicles

v Intangible Assets

• Goodwill
• Trade Mark
• Indefeasible right to use

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.85
UK Pound	1	Rs.88.40
Euro	1	Rs.72.63

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	--
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	3
--CREDIT LINES	1~10	4
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		35

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NB		NEW BUSINESS

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.