MIRA INFORM REPORT

1. Summary Information

		Country	India
Company Name	Universal Cables Limited	Principal Name 1	Mr. Harsh V. Lodha
Status	Satisfactory	Principal Name 2	Mr. S. N. Prasad
		Registration #	10-01114
Street Address	P. O. Birla Vikas, Satna – 485005, Madhya Pradesh, India
Established Date	06.03.1945	SIC Code	--
Telephone#	91-7672-257121 to 27/ 414000	Business Style 1	Manufacturer
Fax #	91-7672-225344/ 257129/ 257131	Business Style 2	Exporter
Homepage	http://www.universalcablesltd.com http://www.unistar.co.in	Product Name 1	Electrical Cable Wires
# of employees	1180 (Approximately)	Product Name 2	--
Paid up capital	Rs.231,332,000/-	Product Name 3	--
Shareholders	Shareholding of Promoter and Promoter Group- 52.92%, Public Shareholding- 47.08%	Banking	State Bank of India
Public Limited Corp.	Yes	Business Period	67 years
IPO	Yes	International Ins.	--
Public Enterprise	Yes	Rating	Ba (49)
Related Company
Relation	Country	Company Name	CEO
Joint Venture:	--	Birla Ericsson Optical Limited (BEOL)	--
Note	--

2. Summary Financial Statement

Balance Sheet as of	31.03.2012		(Unit: Indian Rs.)
Assets		Liabilities
Current Assets	1,720,450,000	Current Liabilities	875,147,000
Inventories	1,024,521,000	Long-term Liabilities	1,582,679,000
Fixed Assets	1,351,029,000	Other Liabilities	221,692,000
Deferred Assets	0,000	Total Liabilities	2,679,518,000
Invest& other Assets	508,346,000	Retained Earnings	1,693,496,000
		Net Worth	1,924,828,000
Total Assets	4,604,346,000	Total Liab. & Equity	4,604,346,000
Total Assets (Previous Year)	4,595,887,000
P/L Statement as of	31.03.2012		(Unit: Indian Rs.)
Sales	6,199,236,000	Net Profit	(139,301,000)
Sales(Previous yr)	5,304,819,000	Net Profit(Prev.yr)	177,991,000

MIRA INFORM REPORT

Report Date :

25.07.2012

IDENTIFICATION DETAILS

Name :	UNIVERSAL CABLES LIMITED

Registered Office :	P. O. Birla Vikas, Satna – 485005, Madhya Pradesh

Country :	India

Financials (as on) :	31.03.2012

Date of Incorporation/	06.03.1945

Com. Reg. No.:	10-01114

Capital Investment / Paid-up Capital :	Rs.231.332 millions

CIN No.: [Company Identification No.]	L31300MP1945PLC001114

TAN No.: [Tax Deduction & Collection Account No.]	JBPU00023C/ MUMU03691C/ MUMU04091D

PAN No.: [Permanent Account No.]	AAACU3547P/ AAACU3457P

Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

Line of Business :	Manufacturing, Laying and Selling of Power Cables, Capacitors and Optical Fibre.

No. of Employees :	1180 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

Maximum Credit Limit :	USD 7700000

Status :	Satisfactory

Payment Behaviour :	Usually correct

Litigation :	Clear

Comments :	Subject is an established company having satisfactory track record. There appears loss in the current year. But networth of the company appears to be strong. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealing at usual trade terms and conditions.

NOTES:

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

ECGC Country Risk Classification List – June 30, 2012

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

India

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

Rating Agency Name	Care
Rating	A
Date	30.10.2009

RBI DEFAILTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAILTERS’ 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.

LOCATIONS

Registered Office/ Factory 1 : :	P. O. Birla Vikas, Satna – 485005, Madhya Pradesh, India
Tel. No.:	91-7672-257121 to 27/ 414000
Fax No.:	91-7672-225344/ 257129/ 257131
E-Mail :	headoffice@universalcablesltd.com headoffice@unistar.co.in unistar@bom5.vsnl.net.in unistar@vsnl.com secretarial@unistar.co.in
Website :	http://www.universalcablesltd.com http://www.unistar.co.in

Corporate Office :	House 159, Churchgate, Reclamation, Mumbai – 400020, Maharashtra, India
Tel No.:	91-22-22023170

Factory 2 :	Plot Nos. L – 62 to L-64 A, Verna Industrial Estate, Verna, Salcette – 403722, Goa, India

Branches/ Marketing Office :	Located At: · Allahabad · Bangalore · Baroda · Bhopal · Chennai · Goa · Hyderabad · Kolkata · Mumbai · New Delhi · Raipur

DIRECTORS

(AS ON 31.03.2012)

Name :	Mr. Harsh V. Lodha
Designation :	Chairman
Date of Birth/Age :	13.02.1967
Date of Appointment :	24.04.1998
List of outside Directorships held*	· Alfred Herbert (India) Limited · Birla Corporation Limited · Birla Ericsson Optical Limited · Birla Furukawa Fibre Optics Limited · Fenner (India) Limited · Hindustan Gum and Chemicals Limited. · Punjab Produce Holdings Limited · Sicpa India Limited · Vindhya Telelinks Limited

Name :	Mr. S. N. Prasad
Designation :	Alternate Directors
Date of Birth/Age :	12.07.1917
Date of Appointment :	05.05.2004
List of outside Directorships held*	· Birla Buildings Limited · Mazbat Tea Estate Limited · Punjab Produce Holdings Limited · Mazbat Trading Company Limited · Birla Financial Corporation Limited · Express Dairy Company Limited

Name :	Mr. S. C. Jain
Designation :	Director
Date of Birth/Age :	01.08.1940
Date of Appointment :	27.10.2004
List of outside Directorships held*	· Utkal Asbestos Limited

Name :	Mr. S. S. Kothari
Designation :	Director
Date of Birth/Age :	25.03.1931
Date of Appointment :	26.10.2005

Name :	Dr. S. R. Jain
Designation :	Director
Date of Birth/Age :	29.10.1934
Date of Appointment :	05.09.2006
List of outside Directorships held*	· Neelachal Ispat Nigam Limited · OCL India Limited

Name :	Mr. J. C. Sharma
Designation :	Director
Date of Birth/Age :	03.07.1944
Date of Appointment :	27.10.2006
List of outside Directorships held*	· LT Foods Limited

Name :	Mr. Dinesh Chanda
Designation :	Alternate Director
Date of Birth/Age :	26.10.1936
Date of Appointment :	23.05.2007

KEY EXECUTIVES

Name :	Mr. D.R. Bansal
Designation :	Chief Executive Officer
Qualification :	M. Sc.

Name :	Mr. Pankaj Kalani
Designation :	President (Commercial) and Company Secretary

AUDIT COMMITTEE :

Name :	Dr. S. R. Jain
Designation :	Chairman

Name :	Mr. S. S. Kothari
Designation :	Director

Name :	Mr. J. C. Sharma
Designation :	Director

Name :	Mr. Dinesh Chanda
Designation :	Director

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 31.03.2012)

Category of Shareholders		No. of Shares

(A) Shareholding of Promoter and Promoter Group
(1) Indian
Bodies Corporate	12,239,923	52.92
Sub Total	12,239,923	52.92

(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	12,239,923	52.92

(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	1,200	0.01
Financial Institutions / Banks	197,354	0.85
Central Government / State Government(s)	740	-
Insurance Companies	811,752	3.51
Foreign Institutional Investors	500	-
Sub Total	1,011,546	4.37

(2) Non-Institutions
Bodies Corporate	2,463,111	10.65

Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	3,411,725	14.75
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	2,012,817	8.70
Any Others (Specify)	1,991,132	8.61
Trusts	1,760,619	7.61
Foreign Nationals	74,173	0.32
Clearing Members	156,340	0.68
Sub Total	9,878,785	42.71

Total Public shareholding (B)	10,890,331	47.08

Total (A)+(B)	23,130,254	100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	-	-
Sub Total	-	-

Total (A)+(B)+(C)	23,130,254	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing, Laying and Selling of Power Cables, Capacitors and Optical Fibre.

Products :

Item Code No. (ITC Code)	85.44
Product Description	Cables

Item Code No. (ITC Code)	85.32
Product Description	Capacitors

Item Code No. (ITC Code)	76.04
Product Description	Aluminium Rods

Item Code No. (ITC Code)	9001.1000
Product Description	Optical Fibre

Brand Names :

'UNISTAR'

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production

Electrical Cables Wires, Conductors, Strips of all types (excluding Tele-communication Cables, Wires, Conductors, Strips of all types connected with telecommunication and items reserved for small scale)	KM MCM MT	15750 200 6000	14000 150 3000	5002 9 430
Cable End Seals of Plastics	Nos.	500000	--	--
PVC Insulated Single/ multicore unsheathed cables with Cu./Al. Conductor for 650/1100 V.	CKM	200000	150000	--
Flexible Cables [for House Wiring]	KM	500000	--	--
Optical Fibre Cable	KM	50000	50000$	--
Optical Fibre Cable Accessories	Nos.	200000	--	--
Jelly Filled Telephone cables and other telecommunication cables	CKM	2500000	--	--
Pigtail and Patchcords	Nos.	450000	--	--
Fibre Re-inforced Plastic Rod	KM	200000	--	--
Optical Fibre	FKM	6000000	1500000$	321820
Aluminum Rods	MT	4800	8000	1040*
Capacitors - MFD	Pcs	5000000	1000	12
Capacitors - LT and HT	KVAr	1500000	3000000	2672870
Electrical Panels	Pcs	500	500	87
Cross Linked Polyethylene compound including insulating, semiconducting and other special grades	MT	1000	--	--

GENERAL INFORMATION

Customers :

CABLES

Electricity Boards and Other Power Company’s
Transmisson Corporation of A.P. Limited
A.E.Company Limited, Ahmedabad Electric Company Limited
BSES Limited, BEST Mumbai.
CESC Limited
Delhi Vidyul Board
Gujarat Electricity Board.
Gujarat Industries Power Company Limited
Haryana State Electricity Board.
Karnataka Power Transmission Corporation.
Kerla State Electric Board.
Maharashtra State Electricity Board.

MINING

Bharat Coking Coal Limited
Central Coalfields Limited
Eastern Coalfields Limited
Northern Coalfields Limited

STEEL PLANTS

Steel Authority of India Limited
Tata Iron and Steel Company Limited
Malvika Steels Limited

REFINERIES and PETROCHEMICALS

Andhra Petrochemicals Limited
Bharat Petroleum Corporation Limited
Cochin Refineries Limited, Cochin
Hindustan Petroleum Corporation. Limited
Haldia Petro-chemicals Limited
Indian Petrochemicals Corporation Limited
Indian Oil Corporation Limited
Manglore Refinery and Petrolchemicals Limited
Reliance Petroleum Limited, Jamnagar
Southern Petrochemicals Industries Corporation Limited

RAILWAYS

Chittaranjan Locomative Works
Diesel Locomative Works
Diesel Component Works
Integral Coach Factory
Rail Coach Factory
All Zonal Railways
Calcutta Metro and Delhi Metro

ATOMIC ENERGY

Bhabha Atomic Research Centre
Nuclear Power Corporation

FERTILIZERS

Chambal Fertilizers and Chemicals Limited
Fertilizers Corporation Of India
Gujarat Narmada Valley Fertilizer Company Limited
Indian Farmers and Fertilizer Company Limited

PORT TRUST and SHIP BUILDING INDUSTRY

Calcutta Port Trust
(Haldia Dock Complex)
Mangalore Port Trust
Cochin Naval Dockyard
Cochin Port Trust
Garden Reach Ship builders and Engineers Limited
Kandla Port Trust

HEAVY INDUSTRIES

Bharat Earth Movers Limited
Bharat Heavy Electricals Limited
Bharat Electronics Limited

SPECIAL AIRCRAFT INDUSTRY

Hindustan Aeronautics Limited
Indian Space Research Organisation

OTHER INDUSTRIES

ABB Limited
Birla Copper Limited
Larsen and Toubro Limited
National Aluminum Company Limited

No. of Employees :

1180 (Approximately)

Bankers :

· State Bank of India, Satna Branch, India

Facilities :

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)

Foreign Currency Loan - Buyer's Credit (Foreign Currency Loan - Buyer's Credit from Bank (s) are secured by hypothecation of all present and future current assets. Further these facilities are secured by way of first charge on the immovable properties of the Company. It is repayable within 2 years from the Balance sheet date and carries rate of Interest ranging from 2.50% - 3.00%. Long Term Foreign Currency Loan - Buyer's Credit are repayable in 4 to 6 Installments of Rs.0.550 Million to Rs.1.010 Million).	2.463	61.003

Working Capital Loans from Banks -
Cash Credit Account	1181.674	295.540
Foreign Currency Loan - Buyer's Credit	198.542	1096.258

TOTAL	1382.679	1452.801
NOTE: Cash Credit and Foreign Currency Loan - Buyer's Credit from Bank(s) are secured by hypothecation of all present and future current assets. Further these facilities are secured by way of first charge on the immovable properties of the Company. Cash Credit amount is repayable on demand and carries interest @ 13.00% to 14.75%. Foreign Currency Loan is repayable within 3 months to 12 months and carries rate of Interest ranging from 2.00% to 3.50%.
Unsecured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)

Loan From a Body Corporate	200.000	0.000

Total	200.000	0.000
NOTE Loan from a Body Corporate is repayable on demand and carries interest @ 12.00%.


Banking Relations :	--

Auditors :
Name :	S. R. Batliboi and Company Chartered Accountants
Address :	Madhya Pradesh, India

Joint Venture:	· Birla Ericsson Optical Limited (BEOL) · Birla Furukawa Fibre Optics Limited (BFL)

Other Parties which significantly Influence/are influenced by the Company (Either individually or with others) :	· Vindhya Telelinks Limited · Shakun Polymers Limited

CAPITAL STRUCTURE

(AS ON 31.03.2012)

Authorised Capital :

No. of Shares	Type	Value	Amount

50000	Preference Shares	Rs.100/- each	Rs.5.000 Millions
24500000	Equity Shares	Rs.10/- each	Rs.245.000 Millions

	Total		Rs.250.000 Millions

Issued Capital :

No. of Shares	Type	Value	Amount

23136074	Equity Shares	Rs.10/- each	Rs.231.361 Millions

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

23130254	Equity Shares	Rs.10/- each	Rs.231.303 millions
Add:	Add: Forfeited Shares		Rs.0.029 million

	Total		Rs.231.332 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		231.332	231.332	231.332
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1693.496	1833.407	1710.417
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1924.828	2064.739	1941.749
LOAN FUNDS
1] Secured Loans		1382.679	1452.801	1223.255
2] Unsecured Loans		200.000	0.000	119.254
TOTAL BORROWING		1582.679	1452.801	1342.509
DEFERRED TAX LIABILITIES		63.964	138.394	129.190

TOTAL		3571.471	3655.934	3413.448

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		1351.029	1448.243	1369.561
Capital work-in-progress		0.904	0.000	70.840

INVESTMENT		507.442	507.442	507.442
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1024.521	1093.822	1107.441
	Sundry Debtors	1284.951	1024.641	986.868
	Cash & Bank Balances	29.986	26.901	68.489
	Other Current Assets	148.314	183.308	120.098
	Loans & Advances	257.199	311.530	187.437
Total Current Assets		2744.971	2640.202	2470.333
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	326.046	267.182	342.390
	Other Current Liabilities	549.101	461.141	465.182
	Provisions	157.728	211.630	197.156
Total Current Liabilities		1032.875	939.953	1004.728
Net Current Assets		1712.096	1700.249	1465.605

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		3571.471	3655.934	3413.448

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	6199.236	5304.819	4957.332
		Other Income	84.352	151.453.	206.543
		TOTAL (A)	6283.588	5456.272	5163.875

Less	EXPENSES
		Cost of Raw Materials Consumed	4530.762	3387.747
		Purchases of Stock-in-trade	335.463	283.526
		Decrease/increase) in Inventories of Materials under Process, Finished Goods, scrap and Traded Goods	(81.320)	65.243	4477.929
		Employee Benefits Expenses	367.654	359.131
		Other Expenses	953.517	817.163
		TOTAL (B)	6106.076	4912.810	4477.929

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		177.512	543.462	685.946

Less	FINANCIAL EXPENSES (D)		239.726	109.585	103.998

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(62.214)	433.877	581.948

Less/ Add	DEPRECIATION/ AMORTISATION (F)		148.101	165.683	168.743

	PROFIT BEFORE TAX (E-F) (G)		(210.315)	268.194	413.205

Less	TAX (H)		(71.014)	90.203	141.786

	PROFIT AFTER TAX (G-H) (I)		(139.301)	177.991	271.419

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		630.019	530.571	356.805

Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	25.000	30.000
		Proposed Dividend	0.000	46.261	57.826
		Corporate Dividend Tax	0.000	7.282	9.827
	BALANCE CARRIED TO THE B/S		490.718	630.019	530.571

	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	258.359	145.317	420.988
		Claims from Vendors	0.225	0.367	12.533
		Other Earnings	0.000	0.849	5.008
	TOTAL EARNINGS		258.584	146.533	438.529

	IMPORTS
		Raw Materials	2502.101	1733.716	1346.803
		Stores & Spares	11.051	10.308	17.921
		Capital Goods	22.857	165.627	55.234
		Others	4.786	72.040	298.467
	TOTAL IMPORTS		2540.795	1981.691	1718.425

	Earnings Per Share (Rs.)		(6.02)	7.70	11.73

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	(2.22)	3.26	5.26

Net Profit Margin (PBT/Sales)	(%)	(3.39)	5.06	8.34

Return on Total Assets (PBT/Total Assets}	(%)	(5.13)	6.56	10.76

Return on Investment (ROI) (PBT/Networth)		(0.11)	0.13	0.21

Debt Equity Ratio (Total Liability/Networth)		1.36	1.16	1.21

Current Ratio (Current Asset/Current Liability)		2.66	2.81	2.46

LOCAL AGENCY FURTHER INFORMATION

Check list by info Agents	Available in Report (Yes/ No)

Year of Establishment	Yes
Locality of the Firm	Yes
Constitution of the Firm	Yes
Premises details	No
Type of Business	Yes
Line of Business	Yes
Promoter’s Background	Yes
No. of Employees	Yes
Name of Person Contacted	No
Designation of Contact person	No
Turnover of Firm for last three years	Yes
Profitability for last three years	Yes
Reasons for variation <> 20%	-----
Estimation for coming financial year	No
Capital in the business	Yes
Details of sister concerns	Yes
Major Suppliers	No
Major Customers	Yes
Payments Terms	No
Export/ Imports Details (If applicable)	No
Market Information	-----
Litigations that the firm/ Promoters Involved in	-----
Banking details	Yes
Banking Facility Details	Yes
Conduct of the Banking Account	-----
Buyer visit details	-----
Financials, if provided	Yes
Incorporation details is applicable	Yes
Last Accounts filed at ROC	Yes
Major Shareholders, if available	No
PAN of Proprietor/Partner/Director, if available	No
Passport No of Proprietor/Partner/Director, if available	No
Voter ID No of Proprietor/Partner/Director, if available	No

GENERAL AND CORPORATE MATTERS

Despite there being higher gross revenue at Rs.6816.300 Millions as compared to Rs.5913.300 Millions for the previous fiscal, the Company has suffered a Net Loss of Rs.139.300 Millions during the year.

The profitability of the Company has been adversely impacted mainly due to unprecedented sharp weakening of Indian rupee vis-à-vis US$ and other foreign currencies, volatile and elevated input prices and soaring interest rates.

The Company has in a bid to de-risk revenues and profitability, planned a shift in the business model from supply contracts to total turnkey solutions which along with the measures taken to re-in force the EPC wing have helped the Company to contain the deficit for the year to some extent.

Historically, the cable industry has been exposed to repeated cyclical downturns. The Company has in the past came out of these cycles stronger which testify its resilience. The Company hopes that the environment in the power sector improves so that it can benefit from it.

Power is the key to economic growth. Unquestionably, the growth plan of the power sector is irreversible. The Government is pursuing formidable strategic development plans and dynamic policy reforms on fast track, which is imperative to achieve its obligation for "Power For All" which is an integral part of the Nation's aspiration for "India Vision 2020" to transform India to a developed Nation. This instills confidence in the entire cross-section of engineering industries to expect a robust and sustained growth in demand for the next couple of decades. The electrical industry including cables and capacitors will be one of the greatest benefactors of the proposed power sector investments. The private infrastructure companies are also expected to play a major role in the growth and development of the economy and therefore growth of the cable industry will also be linked to their performance in future.

The Company’s Capacitor Division is also progressing well and growing by developing new products for better value addition.

As a long-term strategy, the Company has been pursuing technological advancement at par with the major international players. The Company is proud of its excellent technology and quality of its power cables up to 400 kV. The Company is the only cable manufacturer in India having an in-house Testing Laboratory which has earned the prestigious NABL accreditation.

Apart from the above, by continuously upgrading and modernizing the production facilities with a special focus on reduction in the cost of production by initiating and implementing various measures in all the areas, the Company will be in an advantageous position to become a competitive player in a market driven by high cost of production and cutthroat competition.

JOINT VENTURE

Birla Furukawa Fibre Optics Limited (BFL), a joint venture between the Company and Furukawa Electric Company Limited, Japan, is rapidly gaining momentum to capitalize on the emerging business opportunities in the optical fibre market with the underlying objective of providing world class products to the customers through state-of-the-art manufacturing processes and facility.

The telecom market in India is opening up exciting possibilities with the imminent launch of 4G networks, bringing India at the same level as some of the first countries in the world to embark commercially on this ground breaking technology. Pricing pressures however, continue to pose challenges to the Optical Fibre Industry.

The financial performance of BFL is satisfactory considering the fact that it is just a two year old Company. In view of depressed market conditions, Birla Ericsson Optical Limited, a venture promoted by the Company in association with Vindhya Telelinks Limited and Ericsson Cables AB, Sweden has shown a down turn in financial performance during the year.

MANAGEMENT DISCUSSION AND ANALYSIS

INDUSTRY STRUCTURE AND DEVELOPMENTS

The Company prides itself with its long and impeccable track record as a manufacturer of power cables and capacitors. With its impressive product portfolio backed by world class technology, the Company is recognized as the "trailblazer" in the industry. The Company's iconic brand "Unistar" retains its distinctive and leadership profile as the most trusted name in the industry.

During the financial year, the Industry has been exposed to unprecedented headwinds of economic volatility, as a fall-out of the instability in the global financial system, which has withered away the buoyancy in the market. The key features of the financial year which has decapitated the expected performance of the Company have been the sharp devaluation of the Rupee, severe liquidity crunch in the market, flaring prices of raw materials, upsurge in the fuel prices, lagging performance of the power sector and an overall slump in the core sector investments. Adding more pain to the industry's wound, the power sector, the key demand driver, has not lived up to its true expectation of accelerated growth. The overall demand from other core sectors had a dampened investment sentiment. Majority of the infrastructure companies have deferred their expansion and diversification plans. In consequence to such market depression resulting to an anaemic year of growth, the Company with savoir faire realigned its strategy to reduce its exposure to these adversities while focusing on value added products.

Delayed payments are a major concern to the industry. The Company is carefully weighing its option to accept contracts which are not conducive to its business operation and can hamper its cash flows.

The company has introduced the "5S" concept; the popular mnemonic derived from the Japanese words Seiri, Seiton, Seiso, Seiketsu and Shitsuke for improving workstation discipline and foster a culture for improvement in efficiency and effectiveness. As a long-term strategy, the Company has been pursuing technological advancement at par with the major international players. The Company is proud of its excellent technology and quality of its power cables up to 400 kV. The Company is the only cable manufacturer in India having an in-house Testing Laboratory which has earned the prestigious NABL accreditation.

PRODUCT-WISE PERFORMANCE, OPPORTUNITIES, THREATS AND BUSINESS OUTLOOK

POWER CABLES AND CAPACITORS

Gross revenue from this segment during the year was Rs.6595.700 Millions as compared to Rs.5639.600 Millions during the previous year.

EHV POWER CABLES

Balancing the demand-supply equation is one of the main challenges of the power sector in order to deliver power to the consumer's door-step. With a view to bridge this imbalance between power generation and distribution, large EHV power transmission corridors are being constructed across the length and breadth of the country to link the generation and distribution nodes. This is implicitly encouraging for the Company as these large transmission lines are generating the demand for EHV underground sub-transmission networks within and around the metro-cities and satellite towns. Notably, the infrastructure in the underground transmission segment is in its nascent stage. Considering the ecological embargo and space constraints for constructing overhead transmission lines within metropolis and its proximity, underground EHV transmission has earned priority, as this is the only means to infuse power into the urban area. This phenomenon is driving the rapid growth for EHV cables.

The Company having envisioned this scenario had installed two state-of-the-art Vertical Continuous Vulcanizing (VCV) lines, the only of its kind in India, to cater to this market segment. With technology from Furukawa Electric Company Limited, the Company has rapidly made in-roads in the 220 kV market segment and is now advancing towards the 400 kV segment, the highest voltage in underground transmission system. The Company also having institutionalized an engineering and construction wing, is expanding its activity in undertaking turnkey solutions in underground EHV cable transmission projects in line with the market trend in this segment.

In the present recessionary scenario, the Company, geared with manufacturing and engineering capabilities, focuses on the high-end-high-value-added EHV market segment.

RUBBER CABLES FOR SPECIAL APPLICATIONS:

The Company has a wide range of speciality cables and is well established as the technology leader. It has been serving the Original Equipment Manufacturer's (OEMs) and a wide spectrum of industries. The important segments are railways, steel plants, petrochemical plants, cement plants, oil rig manufacturers, ship building and mining industry. In the power sector, the renewable energy is one of the key demand drivers of rubber cables where the Company holds a significant market share. In the conventional energy sector, the Company has a strong dominance on niche products for special applications. This market segment is a thrust area for the Company where it intends to expand its market share. In terms of manufacturing technology, here again, the Company with its Pressurized Liquid Salt Bath Curing (PLCV) technology, the only of its kind in India, leads the rest.

MV POWER CABLES:

The demand has more or less been constant. The pressure on the market prices are constantly heaping up. In the present scenario, as a result of constant capacity augmentation by industry players and foray into the market by new entrants, the installed manufacturing capacity of the industry outstrips the demand. Nevertheless, this is a potential segment poised for accelerated growth once the power sector investments are on full stream. Moreover, the investments in the other core industry segments would add vibrance to the demand.

LV POWER CABLES:

The market remains inundated with a plethora of regional players. The market space continues to be over crowded with a deluge of inferior quality products. Though the demand is expected to grow in consonance with the investments in the power generation and distribution sector, improvements in the price levels are not foreseen. Notwithstanding, the Company maintains its focus on project requirements where the regional players with inadequate quality standard are screened out.

EXPORT:

The Company maintains its status as a "Star Export House". It has won the EEPCINDIA coveted star performer Silver Shield Award for two successive years. The Company is the member of the Federation of Indian Export Organization (FIEO) which gives the Company a formidable recognition as a manufacturer and exporter.

FINANCIAL REVIEW:

The financial performance of the Company during the year 2011-12 can be ascertained from the following key indicators:

There has been a Net Loss in the current fiscal of Rs.139.300 Millions as compared to a Net Profit of Rs.178.000 Millions in the previous year which is mainly due to unprecedented sharp devaluation of the rupee, severe liquidity crunch and flaring prices of inputs.

Despite continued endeavour to contain, financial cost at Rs.239.700 Millions have increased by Rs.130.100 Millions from the previous year on account of soaring interest rates and increased borrowings for working capital requirements due to enhanced business volume and delayed payment from customers, hampering cash flow.

Total Borrowings increased by Rs.171.800 Millions mainly due to increase in working capital requirement consequent upon increase in the Turnover.

The market value of quoted investment decreased to R.599.000 Millions from Rs.891.500 Millions in the previous year.

The level of inventories decreased from Rs.1093.800 Millions to Rs.1024.500 Millions because of strict inventory management.

Sundry Debtors increased to Rs.1284.900 Millions as on 31st March, 2012 as compared to Rs.1024.600 Millions as at the end of the previous year mainly due to retention of money by customers in Turnkey Contracts and delayed payments from some Power Utilities.

The Company is now in the process of realizing Industrial Investment Promotion Assistance from the State Government. The first two year's benefits have since been realized. The total amount of assistance realizable as on 31st March, 2012 is Rs.96.300 Millions.

The level of Current Liabilities have increased marginally due to shift from Buyers' Credit to Suppliers' Credit.

The Company has in the recent past continued the exercise of renovation/up-gradation of Machineries and Equipments.

As a result redundant Plant and Machinery having gross value of Rs.6.300 Millions and WDV of Rs.1.200 Millions have been discarded during the year under review.

FIXED ASSETS

§ Freehold Land

§ Leasehold Land

§ Buildings

§ Plant and Machinery

§ Furniture and Fixture

§ Office Equipments

§ Vehicles

§ Intangible Assets

WEBSITE DETAILS:

OVERVIEW

Subject was established in 1962 by late Mr. M.P. Birla, the then Chairman, with modern plant for manufacture of Paper Insulated Cables. Since then, the Company has made rapid progress achieving a world class reputation.

In the year 1977, collaborating with M/s. Asea Kabels AB, Sweden (now called ABB Cables), company brought XLPE technology to India. The Company’s other collaborations are with internationally acclaimed leaders in their respective fields.

Company is a leader in the Indian Cable Industry with the widest product range. The cable division has a very wide range of product. It includes Low Voltage, Medium Voltage and Extra High Voltage XLPE Power Cables upto 500 kV grade, PVC and Rubber Insulated Power Cables upto 11 kV grade, Control and Instrumentation Cables upto 1.1 kV for any number of Cores/Pairs and speciality Rubber Cables for Trailing/Flexible standards to suit to customer requirements. Its Cables and Capacitors are known by the Brand Name “UNISTAR”.

To meet the growing demand of Extra High Voltage Cables (220 kV and above), company has already ventured into this market segment. Company has adopted VCV process at its Satna Plant in technical collaboration with the World Leader in Cable technology, Furukawa Electric Company Limited, Japan. The technical collaboration covers Cable designing, Manufacturing, Laying, Jointing, Testing and Installation.

Company has also tied-up with Viscas Corporation, Japan (Power Cable Alliance of Furukawa & Fujikura) for sourcing new generation cable jointing accessories for 220 kV and above.

Apart from manufacturing Electrical Cables for multifarious applications, Company is having full fledged EPC Division to execute Turnkey Contracts for various Utilities/Projects.

Company has now positioned itself as a complete solution provider for EHV Underground Power Cables Transmission System upto 500 kV, involving designing, manufacturing, laying, jointing and installation.

The 220 kV Cables prototype sample manufactured by company has been successfully Type Tested as a complete cable system at CPRI, Bangalore creating a land mark in itself as this is the first successful 220 kV cables system Type Test in India. Company has successfully executed orders for 220 kV Cables.

The Capacitor Division of the Company, which commenced operation in the year 1967, manufactures world class All Poly Propylene (APP) Capacitors for AC applications. This Division was set up in collaboration with Toshiba, Japan for manufacture of Paper and Power Capacitors. In 1977, this Division entered into another technical collaboration with General Electric Company of USA for manufacture of Mixed Dielectric Capacitors and in 1985 for manufacture of All PP Dielectric Capacitors.

The product range includes Low and High Voltage Capacitors (415 VAC to 220 KVAC), APFC Panels, Medium Frequency Water Cooled Capacitors for Induction Furnace Application, Surge Protective Capacitors, Tuned and Detuned Filter Capacitors, DC Capacitors. This Division also provides services like Automatic PF Correction Systems, Harmonic Analysis and PF Studies.

The Capacitor Division is rated to be the foremost manufacturer of All PP Power Capacitors in LT and HT Range in the country.

MANAGEMENT:

Mr. H.V. Lodha,

Mr. H.V. Lodha, He is an eminent and young Chartered Accountant and has served as partner of M/s Lodha and Co., Chartered Accountants. He has been actively involved in significant assignments in the areas of takeovers and mergers/ reconstructions and rehabilitations, international and domestic financing, project structuring capital mobilisation, joint-ventures and collaborations. He is serving on the Managing Committee of ASSOCHAM. He has served on the Executive Committee of FICCI and as Chairman of its Corporation Laws and Governance Committee and Co-Chairman of its Young Leaders Forum. He has served as a Member of Working Group on Corporate Governance set by the Department of Company Affairs, Government of India and Working Group to frame guidelines for the registration and operations of the securitisation Companies and Asset Reconstruction Companies constituted by the Reserve Bank of India. He has served as Member of the Accounting Standards Board of The Institute of Chartered Accountants of India and alternate member of the National Advisory Committee on Accounting Standards set up by Government of India. He has served as Vice President of the Indian Chamber of Commerce, Calcutta and as Chairman of its Economic Affairs Committee, Banking and Finance and Direct Tax Committees. He has served as Honorary Consul of the Government of Romania for West Bengal, Orissa and Bihar. Also served as the Vice Consul of the Republic of Philippines for Eastern India.

Mr. S. N. Prasad,

Mr. S. N. Prasad, He did his graduation in Commerce from Allahabad University in 1940. He also passed the professional course of Company Secretaries and he is now a Fellow of Institute of Company Secretaries of India (FCS). For one year i.e. 1940-41 he worked with a Tata Concern in Patna and thereafter he joined Birla Jute Mfg. Company limited in 1941 (Former name of Birla Corporation Limited), a M.P.Birla Group Company. He commenced his career under the supervision and overall control of late Syt. M.P.Birla. He was President of Birla Corporation Limited. At present he is a wholetime Director of The Punjab Produce and Trading Company Private Limited an Investment Company of M.P. Birla Group and he is still continuing in service of this Group. In addition to the said The Punjab Produce and Trading Company Private Limited he is Director of many Companies under M.P. Birla Group of Companies and also Trustees of many Trusts and Societies under the same Group.

Dr. S.R. Jain

Dr.S.R. Jain, He is an expert in the Management of Steel and Heavy Industries and has over 40 years of experience in this field. He has also been the Chairman of Steel Authority of India Limited and Heavy Engineering Corporation Limited. He has also served as the President of Indian Institute of Metals and is currently the Chairman of Consteel India (Private0 Limited, a Consultancy Company based in Delhi.

Mr. S. S. Kothari,

Mr. S. S. Kothari, He is a consulting Engineer by profession. He has great experience in operation of Cement Plants. He has served for 5 years in design and manufacture of Cement Plants and heavy machinery at Indian Sugar and General Engineering Corporation, Haryana and 30 years as Managing Director of Delhi based Consultancy Company involved in design and engineering of new Cement Plants.

Mr. S. C. Jain

Mr. S.C. Jain, He did his graduation from Lucknow Christian College in 1958 and he is also a Law Graduate of Calcutta University. He obtained the Master‘s degree in Social work with specilisation in Labour Relations and Personnel Management from J.K. Institute, University of Lucknow. He is life member of National Institute of Personnel Management and was Examiner and Paper Setter for the DPM Course of the Institute. He was also Chairman of the Labour Sub-Committee of the Chamber of Commerce and a nominee of the Chamber on the Minimum Wages Advisory Board constituted by the Government of West Bengal. He has over 40 years experience in Management of Industrial Relations. He has also written a book on “Calcutta High Court 50 years Digest of Important Labour Cases” which is a unique digest of such cases and a very useful guideline to employers, employees, trade unions and to practising managers.

Mr. J. C. Sharma

Mr. J.C.Sharma, He began his professional career as a Commissioned Officer in the Indian Army (1967-72) and was awarded with the “Sena Medal” for Gallantry in 1971 Indo-Pak War. He joined the elite India Foreign Service in 1972 and has served as First Secretary (Consular and Political) and First Secretary (Commercial) in the Indian Embassies in Tokyo and Jakarta respectively. A brilliant Organizer, he was Director (Protocol) for the 7th Non-Aligned Summit and the Commonwealth Heads of Government Meeting in Delhi in the year 1983. He was the First Foreign Service Officer to be deputed as Joint Secretary Defence Exports. He prepared the blue print for Defence Exports from India and for first Aero India in Bangalore. He also served on the Board of Bharat Earth Movers Limited (BEML), a large public sector undertaking manufacturing defence and earth moving equipment and railway coaches. He has served as Secretary, External Affairs and Member Secretary of the High Level Committee on Indian Diaspora. He was the brain behind the idea of celebrating ‘Pravasi Bhartiya Divas’ and organized first two Pravasi Divas in Delhi. He was advisor in the PHD Chamber of Commerce during its centenary year January 2005 to January 2006.

Mr. Dinesh Chanda,

Mr. Dinesh Chanda, After doing B.Sc from BHU in 1955, he did B.E (Electrical) from University of Roorkee in 1958. He is a Life Member of Institution of Engineers (I) and also of Indian Institute of Welding. He is a Chartered Engineer (I) since July 1995. In his professional career spanning over 46 years upto Feb 2006, he contributed in Govt/PSU and Private Sector Industries. He started with Tata Power Company Limited, Bombay and moved to U.P. State Electricity Board in a Hydel power project. Later on he held various positions in Bharat Heavy Electrical Limited and participated in technology transfer and absorption from Siemens, Germany for manufacture of 200 MW/500 MW thermal sets. He has been exposed to Production, Planning and Control of Electrical Machines for 1½ years at USSR and Germany. He moved to Heavy Engineering Corporation Limited, Ranchi and was Director on the Board for 6½ years. During his tenure, technology transfer in latest steel making techniques with SMS, Germany and heavy coal mining machinery from USA and U.K. and other equipment were absorbed. After this, he had a long stint in cement production-optimising energy consumption, introducing systems and debottlenecking for enhanced capacity was his key contribution. Throughout his career he has been an enabling, empowering and charismatic personality.

Mr. D. R. Bansal

Company executive having rich and varied experience of over 46 years in various facets of cable and other industries including in the field of administration, production and marketing. His strength also includes strong relationship management, international alliances/tie ups and business development. He is actively associated with various cable industry forums in India and abroad and also served at the helm of all renowned power and telecommunication cables industry association(s) in India for several years.

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 records 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.56.02
UK Pound	1	Rs.86.89
Euro	1	Rs.67.84

INFORMATION DETAILS

Report Prepared by :

NIT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		49

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.

MIRA INFORM REPORT

1024.521

1093.822

1107.441

1284.951

1024.641

986.868

29.986

26.901

68.489

148.314

183.308

120.098

257.199

311.530

187.437

2744.971

2640.202

326.046

267.182

342.390

549.101

461.141

465.182

157.728

211.630

197.156

1032.875

939.953

1004.728

1712.096

1700.249

1465.605

(2.22)

3.26

5.26

(3.39)

5.06

8.34

(5.13)

6.56

10.76

(0.11)

0.13

0.21

1.36

1.16

1.21

2.66

2.81

2.46

Unit