MIRA INFORM REPORT

Report Date :

10.11.2012

IDENTIFICATION DETAILS

Name :	BIRLA FURUKAWA FIBRE OPTICS LIMITED
Registered Office :	Plot No.L-62 to L-64, Verna Industrial Estate, Verna – 403 722, Goa
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	23.07.2009
Com. Reg. No.:	24-006140
Capital Investment / Paid-up Capital :	Rs.100.000 millions
CIN No.: [Company Identification No.]	U33200GA2009PLC006140
TAN No.: [Tax Deduction & Collection Account No.]	BLRB08156B
PAN No.: [Permanent Account No.]	AADCB8087A
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Optical Fibre and Allied Products.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 1999000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a joint venture between Universal Cables Limited and Furukawa Electric Co. Limited. It is an established company having satisfactory track. Even though the profitability appears to be low, it has comfortable liquidity position of the group. Trade relations are reported as decent. Business is active. Payment terms are usually correct and as per commitments. The company can be considered for business dealings 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	A1	A1

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

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	A- (Long Term Bank Facilities)
Rating Explanation	Adequate degree of safety and low credit risk.
Date	September 10, 2012

Rating Agency Name	CARE
Rating	A1 (Short Term Bank Facilities)
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	September 10, 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.

LOCATIONS

Registered Office/ Factory :	Plot No.L-62 to L-64, Verna Industrial Estate, Verna – 403 722, Goa, India
Tel. No.:	91-832-6696400
Fax No.:	91-832-6696414
E-Mail :	sales@birlafurukawa.com info@birlafurukawa.com
Website :	http://www.birlafurukawa.com
Network :	Located at: · Bangalore · Chennai · Hyderabad · Kolkata · Mumbai · New Delhi

DIRECTORS

As on 04.08.2012

Name :

Mr. Harsh Vardhan Lodha

Designation :

Director

Address :

8, National Tower, 13, Loudon Street, Kolkata – 700 017, West Bengal, India

Date of Birth/Age :

13.02.1967

Qualification :

Chartered Accountant

Date of Appointment :

23.07.2009

DIN No.:

00394094

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	L74999WB1919PLC003516	ALFRED HERBERT (INDIA) LIMITED	Director	20/09/1990	20/09/1990	-	Active	NO
2	U21012DL1990PTC102759	SICPA INDIA PRIVATE LIMITED	Director	11/03/1994	11/03/1994	-	Active	NO
3	L26942OR1949PLC000185	OCL INDIA LIMITED	Director	26/02/1996	26/02/1996	12/05/2008	Active	NO
4	U25199TN1955PLC000740	FENNER (INDIA) LIMITED	Director	18/03/1996	18/03/1996	-	Amalgamated	NO
5	U65999WB1995PTC068123	SWISS INDIA FINANCIAL SERVICES COMPANY PRIVATE LIMITED	Director	21/03/1996	21/03/1996	-	Active	NO
6	L01132WB1919PLC003334	BIRLA CORPORATION LIMITED	Director	23/04/1996	23/04/1996	-	Active	NO
7	U68192WB1983PLC036273	MANORAJ INVESTMENT LIMITED	Alternate director	20/05/1996	20/05/1996	28/02/2012	Active	NO
8	L31300MP1945PLC001114	UNIVERSAL CABLES LIMITED	Director	24/04/1998	24/04/1998	-	Active	NO
9	U74140WB1981PLC033942	ELCO CONSULTANTS LIMITED	Alternate director	09/01/2001	09/01/2001	-	Active	NO
10	U29261WB1982PLC034537	CITY CONSULTANTS LIMITED	Alternate director	09/02/2001	09/02/2001	-	Active	NO
11	U74140WB1983PLC036275	ADVANCE BUSINESS SERVICES LIMITED	Alternate director	16/02/2001	16/02/2001	-	Active	NO
12	U24114WB1982PLC034581	HARSH CHEMICALS LIMITED	Alternate director	16/02/2001	16/02/2001	-	Active	NO
13	U74140WB1983PLC036276	CENTRAL BUSINESS SERVICES LIMITED	Alternate director	16/02/2001	16/02/2001	-	Active	NO
14	U70109WB1995PLC074449	PUNJAB PRODUCE HOLDINGS LIMITED	Director	08/04/2004	08/04/2004	-	Active	NO
15	U24299HR1962PLC007739	HINDUSTAN GUM AND CHEMICALS LIMITED	Director	05/05/2004	05/05/2004	-	Active	NO
16	L31300MP1983PLC002134	VINDHYA TELELINKS LIMITED	Director	05/05/2004	05/05/2004	-	Active	NO
17	U70200WB1995PTC074504	MAZBAT PROPERTIES PRIVATE LIMITED	Director	14/06/2004	14/06/2004	-	Active	NO
18	U67120WB1995PTC074450	MAZBAT INVESTMENTS PRIVATE LIMITED	Director	14/06/2004	14/06/2004	-	Active	NO
19	U51109WB1942PTC075039	BARODA AGENTS AND TRADING COMPANY PRIVATE LIMITED	Director	15/06/2004	15/06/2004	-	Active	NO
20	U74999WB1937PTC025402	THE PUNJAB PRODUCE AND TRADING COMPANY PRIVATE LIMITED	Director	15/06/2004	15/06/2004	-	Active	NO
21	U28939WB1942PTC025403	GWALIOR WEBBING COMPANY PRIVATE LIMITED	Director	15/06/2004	15/06/2004	-	Active	NO
22	U65993WB1951PTC019688	EAST INDIA INVESTMENT CO PRIVATE LIMITED	Director	15/06/2004	15/06/2004	-	Active	NO
23	U24134DL2007PTC159596	HITEK DERIVATIVES AND POLYMERS PRIVATE LIMITED	Director	22/02/2007	22/02/2007	03/03/2008	Active	NO
24	U31300UP1987PTC008657	UNIVERSAL TELELINKS PRIVATE LIMITED	Director	31/07/2007	16/06/2007	-	Active	NO
25	U24231TN1992PLC062306	FENNER (INDIA) LIMITED	Director	27/12/2007	18/10/2007	-	Active	NO
26	L31300MP1992PLC007190	BIRLA ERICSSON OPTICAL LIMITED	Director	29/10/2007	29/10/2007	-	Active	NO
27	U85300WB1926GAP005585	INDIAN CHAMBER OF COMMERCE CALCUTTA	Director	30/06/2011	30/06/2008	-	Active	NO
28	U74140WB2001PTC093908	ONEWORLD RESOURCES PRIVATE LIMITED	Director	29/09/2009	17/10/2008	-	Active	NO
29	U33200GA2009PLC006140	BIRLA FURUKAWA FIBRE OPTICS LIMITED	Director	23/07/2009	23/07/2009	-	Active	NO

Name :

Mr. Dhan Raj Bansal

Designation :

Director

Address :

Universal Cables Limited, PO Birla Vikas, Satna – 485 005, Madhya Pradesh, India

Date of Birth/Age :

01.08.1939

Qualification :

M.Sc

Date of Appointment :

23.07.2009

DIN No.:

00050612

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	L31300MP1983PLC002134	VINDHYA TELELINKS LIMITED	Director	06/11/1987	06/11/1987	-	Active	NO
2	L31300MP1992PLC007190	BIRLA ERICSSON OPTICAL LIMITED	Director	29/06/2012	24/10/1992	-	Active	NO
3	U24299HR1962PLC007739	HINDUSTAN GUM AND CHEMICALS LIMITED	Director	21/11/2008	30/09/2006	-	Active	NO
4	U24134DL2007PTC159596	HITEK DERIVATIVES AND POLYMERS PRIVATE LIMITED	Director	22/02/2007	22/02/2007	03/03/2008	Active	NO
5	U31300UP1987PTC008657	UNIVERSAL TELELINKS PRIVATE LIMITED	Director	31/07/2007	16/06/2007	-	Active	NO
6	U33200GA2009PLC006140	BIRLA FURUKAWA FIBRE OPTICS LIMITED	Director	23/07/2009	23/07/2009	-	Active	NO
7	L31300MP1945PLC001114	UNIVERSAL CABLES LIMITED	Director	28/06/2012	05/05/2012	-	Active	NO

Name :

Hisaharu Yanagawa

Designation :

Director appointed in casual vacancy

Address :

1-5-7, Chitose, Sumida Ku, Tokyo, Japan 1300025

Date of Birth/Age :

13.12.1953

Date of Appointment :

23.09.2011

DIN No.:

03532663

Name :

Mr. Tsuremi Hino

Designation :

Alternate director

Address :

2-26-2, Sanno Sakura Chiba, Japan 2850807

Date of Birth/Age :

05.04.1954

Qualification :

Associated Degree in Mechanical Engineering

Date of Appointment :

30.06.2012

DIN No.:

02751905

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U33200GA2009PLC006140	BIRLA FURUKAWA FIBRE OPTICS LIMITED	Alternate director	30/06/2012	23/12/2009	-	Active	NO

Name :

Mr. Yashwant Singh Lodha

Designation :

Director

Address :

VTL Staff Colony, Udyog Vihar, PO Chorhata, Rewa – 486 006, Madhya Pradesh, India

Date of Birth/Age :

03.04.1964

Qualification :

Chartered Accountant and Company Secretary

Date of Appointment :

23.07.2009

DIN No.:

00052861

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U51909WB1995PLC075959	LANESEDA AGENTS LIMITED	Director	23/09/1999	23/09/1999	-	Active	NO
2	U31300MP1989PTC005550	UNIVERSAL ELECTRICALS PRIVATE LIMITED	Director	27/02/2004	27/02/2004	-	Active	NO
3	L31300MP1983PLC002134	VINDHYA TELELINKS LIMITED	Managing director	04/11/2009	27/10/2006	-	Active	NO
4	U31300UP1987PTC008657	UNIVERSAL TELELINKS PRIVATE LIMITED	Director	31/07/2007	16/06/2007	-	Active	NO
5	U33200GA2009PLC006140	BIRLA FURUKAWA FIBRE OPTICS LIMITED	Director	23/07/2009	23/07/2009	-	Active	NO

Name :

Mr. Yoshiaki Mizota

Designation :

Director

Address :

6-5-6, Chiharadai-Nishi, Ichihara Chiba, Japan 2900143

Date of Birth/Age :

01.04.1959

Date of Appointment :

04.08.2012

DIN No.:

02635223

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U33200GA2009PLC006140	BIRLA FURUKAWA FIBRE OPTICS LIMITED	Director	04/08/2012	23/07/2009	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Kapil Mehta
Designation :	Manager
Address :	114, Kamat Royale, Caranzalem, North Goa – 403 002, Goa, India
Date of Birth/Age :	25.01.1970
Date of Appointment :	09.03.2010
PAN No.:	AIAPM7521L
Name :	Mr. Rupesh Kamlakar Khokle
Designation :	Secretary
Address :	House No.491G, Jyoti Durga Co-Operative Society, Goraxwadi, Aquem Baixo, Madgaon – 403 707, Goa, India
Date of Birth/Age :	18.04.1982
Date of Appointment :	01.07.2012
PAN No.:	AYKPK5362K

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 04.08.2012

Names of Shareholders	No. of Shares
Universal Cables Limited, India	4500000
The Punjab Produce and Trading Company Private Limited, India	600000
Baroda Agents and Trading Company Private Limited, India	200000
Gwalior Webbing Company Private Limited, India	200000
Furukawa Electric Co. Limited, Japan	4499998
Katsuhiko Murota, Japan	1
Yoshiaki Mizota, Japan	1
Total	10000000

As on 04.08.2012

Equity Share Break up (Percentage of Total Equity)

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	44.99998
Bodies corporate	55.00000
Directors or relatives of Directors	0.00002
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Optical Fibre and Allied Products.

Products :

ITC Code	Product Descriptions
90011000	Optical Fibre
90011000	Fibre Ribbon

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Licensed / Registered Capacity*	Installed Capacity	Actual Production
Optical Fibre	FKM #	6000000	2800000	938927
Fibre Ribbon	FKM	100000	--	--

*Capacity for which Memorandums filed pursuant to the Scheme of delicensing vide Notification No. 477(E) dated 25^th July, 1991, as amended.

# FKM - Fibre Kilometer

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· The Bank of Tokyo-Mitsubishi UFJ Limited, Mumbai Branch, Hoechst House, 15^th Floor, 193, Vinay K. Shah Marg, Nariman Point, Mumbai – 400 021, Maharashtra, India

· State Bank of India, Corporate Accounts Group Branch, Neville House, J.N. Heredia Marg, Ballard Estate, Mumbai - 400 001, Maharashtra, India

· Mizuho Corporate Bank Limited, Mumbai Branch, Maker Chamber III, 1^st Floor, Jamnalal Bajaj Road, Nariman Point, Mumbai - 400021, Maharashtra, India

Facilities :

Secured Loan	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Foreign currency loans banks secured	270.080	24.015
Total	270.080	24.015

Notes:

(A) This includes Buyer Credit in Foreign Exchange raised for Capital Goods and Operatinal Use Notes: (i) Term Loan and Trade Credit from banks are secured by way of hypothecation of whole of Current Assets of the Company, viz. stocks of raw materials, semi-finished and finished goods, consumable stores, as well as bills receivables and book debts, both present and future, ranking pari passu interse. Term Loan from a bank is further secured by a first charge on the entire plant and machinery of the Company, both present and future.

(ii) Term Loan and Trade Credit are also secured by way of collateral security in the form of Corporate Guarantees from Universal Cables Limited, India and Furukawa Electric Co. Limited, Japan respectively. (iii) Previous period's Buyers Credit is secured by pledge of term deposit against extension of letter(s) of credit issued by a bank in India.

Unsecured Loan	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Foreign currency loans banks unsecured	0.000	146.971
Total	0.000	146.971

Note:

(A) Buyer's Credit in foreign currency from a bank (for capital goods)

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	“Heritage” 3^rd Floor, Near Gujrath Vidyapith, Off Ashram Road, Ahmedabad – 380 014, Gujarat, India
PAN No.:	AABFD7919A
Other Parties which significantly influence the Company (either individually or with others) :	· Universal Cables Limited (UCL), India (CIN No.: L31300MP1945PLC001114) · Furukawa Electric Co. Limited, Japan (FEC), Japan
Associate Companies :	· Vindhya Telelinks Limited · Birla Ericsson Optical Limited

CAPITAL STRUCTURE

As on 04.08.2012

Authorized Capital:

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs.10/- each	Rs.200.000 millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		100.000	100.000
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		399.860	398.000
4] (Accumulated Losses)		0.000	(1.018)
NETWORTH		499.860	496.982
LOAN FUNDS
1] Secured Loans		270.080	24.015
2] Unsecured Loans		0.000	146.971
TOTAL BORROWING		270.080	170.986
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		769.940	667.968
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		548.057	3.457
Capital work-in-progress		16.287	378.811
INVESTMENT		0.000	0.000
DEFERRED TAX ASSETS		1.129	0.533
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	79.439	57.615
	Sundry Debtors	116.140	0.000
	Cash & Bank Balances	180.938	281.256
	Other Current Assets	1.450	1.954
	Loans & Advances	57.635	21.640
Total Current Assets		435.602	362.465
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	224.985	76.004
	Other Current Liabilities	3.715	1.101
	Provisions	2.435	0.193
Total Current Liabilities		231.135	77.298
Net Current Assets		204.467	285.167
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		769.940	667.968

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010
	SALES
		Operating revenue, net	308.682	0.000
		Other Income	15.676	1.141
		TOTAL (A)	324.358	1.141
Less	EXPENSES
		Consumption materials changes inventories	214.138	0.000
		Manufacturing service costs	43.828	0.000
		Employee related expenses	16.941	0.000
		Administrative selling other expenses	11.419	2.683
		TOTAL (B)	286.326	2.683
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		38.032	(1.542)
Less	INTEREST & FINANCIAL EXPENSES (D)		6.158	0.009
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		31.874	(1.551)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		29.592	0.000
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		2.282	(1.551)
Less	TAX (H)		(0.596)	(0.533)
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		2.878	(1.018)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(1.018)	0.000
	BALANCE CARRIED TO THE B/S		1.860	(1.018)
	EARNINGS IN FOREIGN CURRENCY
		FOB value of exports (excluding through merchant exporters)	38.716	0.000
		Commission income	0.175	0.000
		Recovery of expenses	0.650	0.000
	TOTAL EARNINGS		39.541	0.000
	IMPORTS
		Raw Materials	270.374	54.218
		Capital Goods	18.840	229.719
		Stores, Spares and consumables	2.564	0.000
	TOTAL IMPORTS		291.778	283.937
	Earnings/ (Loss) Per Share (Rs.)		0.29	(1.07)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010
PAT / Total Income	(%)	0.89	(89.22)
Net Profit Margin (PBT/Sales)	(%)	0.74	0.00
Return on Total Assets (PBT/Total Assets}	(%)	0.23	(0.42)
Return on Investment (ROI) (PBT/Networth)		0.00	0.00
Debt Equity Ratio (Total Liability/Networth)		1.00	0.50
Current Ratio (Current Asset/Current Liability)		1.88	4.69

LOCAL AGENCY FURTHER INFORMATION

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 two years	Yes
12]	Profitability for last two 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	Yes
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

OPERATIONS REVIEW AND OUTLOOK

The Company commenced commercial production with effect from 1^st September, 2010 and accordingly figures for the current year are not comparable with those of the previous period. During the year, the Company has put in concerted efforts towards stabilizing the production, gradual increase in efficiency, product development, product quality and product branding to achieve expanded market reach. In the first year of commercial production, the Company has shown creditable performance by recording a gross turnover of Rs.336.806 millions and has earned a net profit after tax of Rs.2.878 millions. In volume terms the Company has drawn 938,927 fibre kms of Optical Fibre during the year. The Company is optimistic in achieving much better performance in the current year.

Many of the world economies continued to strengthen and stabilize throughout 2010 since global financial crisis of 2008, but growth in some markets remains lackluster and posed several challenges for growth in telecommunication businesses. The Indian economy, during 2010, although saw acceleration in pace of its growth, also faced number of challenges such as high levels of inflation, a widening trade deficit, deceleration in corporate spending and hardening of global fuel prices. Despite these challenges, in long term outlook, India has many positive factors in its favour to strengthen its economy.

The telecom sector in India continued to witness robust and sustained business growth coupled with intense competition during the year. With the large-scale development of FTTH and recently concluded 3G auctions, telecom markets offer positive signs for stronger fibre and optical cable demand as the year progresses. FTTH has been touted for many years by telecom companies for its ability to maximize content delivery and customer satisfaction while reducing maintenance and customer service problems and as such FTTH has emerged the key demand driver for the optical fiber industry, with a high revenue potential. With major initiatives taken by the Indian government in enforcing some effective telecom policies and regulations with special focus on network expansion, rural telephony to bridge socio-economic divide, broadband coverage and R&D, an impressive forward momentum is foreseen in the telecom market.

The Company is building on the momentum it has already achieved during the year to ramp up production and logistics and other crucial enablers so as to capitalize on these 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 facility and manufacturing processes. Alongside strong presence in domestic market, the Directors also strongly believe that the Company will be able to increase its foothold in the overseas markets on the strength of marketing assistance arrangement with one of the promoters by leveraging on their strong strategic partnerships and wider presence which will enable the Company to broaden its customers base in global market with increasing relevance and sustainable business base in order to offset to a significant extent the temporary depressed market conditions in the domestic market.

Despite the promising future, there may not be any significant improvement in the prices, which remain under competitive pressure. In addition, tough competition in the international and domestic market places continues to be a challenge but the Directors are confident of sustaining profitable growth in the future and foresee better sales turnover and increased demand of the Company’s quality products. The Company is on the threshold of the next phase after successful commissioning of the Company’s project wherein the focus is to consolidate as well as to ensure a steady and stable growth.

CONTINGENT LIABILITIES NOT PROVIDED FOR: (AS ON 31.03.2011)

(a) The Company imported certain capital goods under Zero Duty Export Promotion Capital Goods Scheme during the period 2009-10 resulting in duty saving of Rs.45.717 millions with committed export obligation of USD 5742122/- within six years from the date of issue of respective licenses. Outstanding amount of export obligation against the aforesaid licences as at 31^st March 2011 was USD 2872802/-.

(b) Outstanding amount of export obligation against Advance Authorisation as at 31^st March 2011 was USD 12161/-.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U33200GA2009PLC006140
Name of the company	BIRLA FURUKAWA FIBRE OPTICS LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No.L-62 to L-64, Verna Industrial Estate, Verna – 403 722, Goa, India E-Mail: info@birlafurukawa.com
This form is for	Creation of charge
Type of charge	Movable Property (not being pledge)
Particular of charge holder	The Bank of Tokyo-Mitsubishi UFJ Limited, Mumbai Branch, Hoechst House, 15^th Floor, 193, Vinay K. Shah Marg, Nariman Point, Mumbai – 400 021, Maharashtra, India E-Mail: gurunath_awasare@in.mufg.jp
Nature of description of the instrument creating or modifying the charge	Agreement of Hypothecation covering plant and machinery dated 12^th September, 2012
Date of instrument Creating the charge	12.09.2012
Amount secured by the charge	Rs.22.500 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: 11.75%, provided that the Bank shall be entitled to change the rate/s from time to time in accordance with directives/guidelines of RBI and/or the practice of the bankers prevailing from time to time Terms of Repayment: Bullet on maturity Margin: Nil Extent and Operation of the charge: First and exclusive Charge on all the tangible movable machineries and plant and fixed assets funded under the said facilities both present and future whether installed or not and whether lying loose or in cases at site or in transit for the due payment of all monies including the principal sums, interest/commission, cost, charges and expenses and all other moneys, whatsoever due owning and payable by the Borrower to the Bank relating to the said facilities.
Short particulars of the property charged	All tangible movable machineries and plant and fixed assets funded under the said facilities both present and future whether installed or not and whether lying loose or in cases at site or in transit.

FIXED ASSETS:

· Plant and Machinery

· Furniture and Fixtures

· Office Appliances

· Motor Vehicles

· Leasehold Properties

WEBSITE DETAILS:

PROFILE:

Subject is a Joint Venture Company formed between Universal Cables Limited, Satna, India and Furukawa Electric Co. Limited, Japan, having its registered office and manufacturing facilities situated at Verna, Goa, India. Birla Furukawa is a professionally managed company and possesses excellence required to make high performance optical fibres for current and next generation of Tele-communication and Data-communication.

Universal Cables Limited belongs to the M.P. Birla Group and is a market leader in India in the business of manufacturing of Telecommunication Cables with its state-of-the-art manufacturing facilities at Satna, Madhya Pradesh and widely known for its quality product and excellent network of Marketing and managerial capabilities.

Furukawa Electric Co. Limited, Japan is a Global Corporation engaged in diverse business including, inter alia, in the manufacturing of Optical Fibre Preform, Optical Fibre and Optical Fibre Cable with proprietary Technology, Know how, Manufacturing processes, experience, Knowledge and skill relating, amongst others, in the Telecommunication industry.

With its most sophisticated infrastructure along with dynamic team and advance Technology, Birla Furukawa ensures high credibility for its applications in the Telecom infrastructure.

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.54.34
UK Pound	1	Rs.86.97
Euro	1	Rs.69.43

INFORMATION DETAILS

Report Prepared by :

SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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		48

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.