MIRA INFORM REPORT

Report Date :

09.05.2013

IDENTIFICATION DETAILS

Name :	MICROQUAL TECHNO LIMITED (w.e.f. 24.09.2010)
Formerly Known As :	MICROQUAL TECHNO PRIVATE LIMITED
Registered Office :	306, Laxmi Plaza, Laxmi Industrial Estate, New Link Road, Andheri (West), Mumbai – 400053, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	05.08.1999
Com. Reg. No.:	11-121164
Capital Investment / Paid-up Capital :	Rs. 425.187 Millions
CIN No.: [Company Identification No.]	U32200MH1999PTC121164
TAN No.: [Tax Deduction & Collection Account No.]	MUMM13047G
Legal Form :	A Closely Held Public Limited Liability Company.
Line of Business :	Manufacturer, Trader, Importer and Exporter and Service related to Telecommunication Components, Products and Providing Integration Services.
No. of Employees :	1000 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (33)

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

Maximum Credit Limit :	USD 5000000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. The management of the company has failed to file its financials with the government department for the year 2012. Mr. Suresh, Finance manager has provided general information but denied to disclose any financial detail to us. As per previous year’s record, the company is found normal for business dealings. However, trade relations are reported as fair. Business is active. Payment terms are unknown. 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.

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 PARTED BY (GENERAL DETAILS)

Name :	Mr. Suresh
Designation :	Finance Manager
Contact No.:	91-22-40741515
Date :	08.05.2013

LOCATIONS

Registered Office :	306, Laxmi Plaza, Laxmi Industrial Estate, New Link Road, Andheri (West), Mumbai - 400 053, Maharashtra, India
Tel. No.:	91-22-66989381 / 23443570
Fax No.:	91-22-26360909 / 23444025/ 26366699
E-Mail :	sureshkokare@microqual.com microqual@vsnl.net premdye@vsnl.com bkcmumbai@gmail.com mahesh@microqual.com
Website :	http://www.microqual.com
Location :	Owned
Head Office :	3^rd Floor, Techweb Center, Ohsiwara Behrambaug, Off New Link Road, Jogeshwari (West), Mumbai-400102, Maharashtra, India
Tel. No.:	91-22-4041515
Fax No.:	9-22-40741590
Factory 1:	Plot No.3-4, Sector 6 IIF Pant Nagar, Rudrapur – 263153, District U S Nagar, Uttaranchal, India
Locations :	Leased
Factory 2:	No.100, Village Farola, Paithon Road, Aurangabad, Behind ‘Videocon’ factory
Locations :	Rented
Factory 3:	Located at Bangalore
Branch Office 1:	Plot No. 845, 846, Udyog Vihar, Phase V, Gurgaon, Haryana, India
Branch Office 2:	B 52, Neo Shine House, Ground Floor, Opposite Monginis Factory, Andheri (West), Mumbai – 400102, Maharashtra, India
Tel No.:	91-22-40741515
Fax No.:	91-22-40741590
Sales/ Branches Office :	Located at : Bangalore Chennai Hyderabad Kolkata New Delhi Cochin Coimbatore West Bengal Mohali

DIRECTORS

As on: 30.09.2010

Name :	Mr. Mahesh Balkishan Choudhary
Designation :	Director
Address :	301, Jeevan Anand, SAB TV Lane, New Link Road, Andheri (West), Mumbai, Maharashtra, India
Date of Birth/Age :	11.03.1979
Date of Appointment :	05.08.1999
DIN No.:	01644880
Name :	Mr. Sushilkumar Choudhary
Designation :	Director
Address :	302, Jeevan Anand, SAB TV Lane, New Link Road, Andheri (West), Mumbai, Maharashtra, India
Date of Birth/Age :	26.09.1968
Date of Appointment :	13.06.2007
DIN No.:	01436325
Name :	Mr. Varunkumar Punamchand Choudhary
Designation :	Director
Address :	9, Abhishek Apartments, Four Bunglows Andheri (West), Mumbai-400053, Maharashtra, India
Date of Birth/Age :	12.02.1984
Date of Appointment :	25.03.2004
DIN No.:	01634123
Name :	Mr. Koppisetty Srinivas
Designation :	Director
Address :	Flat No.304, Building No.15, Mahda Residential Complex, Oshiwara Andheri (West), Mumbai, Maharashtra, India
Date of Birth/Age :	17.05.1963
Date of Appointment :	28.06.2007
Date of Cession :	28.10.2010
DIN No.:	00514607
Name :	Mr. Kumar Shiralagi
Designation :	Nominee Director
Address :	No. 384, 1st Cross Judges Colony, R.T. Nagar, Bangalore-560032, Karnataka, India
Date of Birth/Age :	15.05.1962
Date of Appointment :	29.10.2007
DIN No.:	01873430
Name :	Mr. Rangarajan Sridhar
Designation :	Nominee Director
Address :	68 WLKIE Road, 04-02, LE Wilkie, Singapore – 228070
Date of Birth/ Age :	23.01.1976
Date of Appointment :	26.11.2008
Nominee Company :	JAFCO Asia Technology Investments III (Mauritius) Limited
Date of Cession :	30.03.2011
DIN No.:	02399857
Name :	Mr. Bhagwan Dass Khurana
Designation :	Additional Director
Address :	D-167, Whispering Meadwos, Sushant Lok-I, Gurgaon-122002, Haryana, India
Date of Birth/Age :	12.05.1944
Date of Appointment :	30.12.2009
DIN No.:	00005581
Name :	Mr. Mithilesh Kumar Sinha
Designation :	Additional Director
Address :	1604, Orchid Vasant Valley Complex, Film City Road, Goregaon (East), Mumbai-400097, Maharashtra, India
Date of Birth/Age :	02.09.1935
Date of Appointment :	30.09.2010
DIN No.:	00011506

KEY EXECUTIVES

Name :	Mr. Suresh
Designation :	Finance Manager

MAJOR SHAREHOLDERS

As on: 30.09.2010

Names of Equity Shareholders	No. of Shares
Mahesh Balkishan Choudhary	503000
Premchand Radhakishan Choudhary	500
Punamchand Radhakishan Choudhary	500
Balkishan Radhakishan Choudhary	500
Varun Premchand Choudhary	503500
Bimaldevi Choudhary	500
Sushil Choudhary	502500
Sushiladevi Choudhary	500
Meeradevi Choudhary	500
Sneh Choudhary	500
Prem Dyechem Industries Private Limited, India	500
Payal Choudhary	500
Anshu S Choudhary	500
Total	1514000

Names of Preference Shareholders	No. of Shares
Nea- Indo US Venture Capital LLC, Mauritius	456024
Jafco Asia Technology Investments III (Mauritius) Limited, Mauritius	273614
BTS India Private Equity Funds Limited, Mauritius	182410
Total	912048

As on: 30.09.2010

Equity Shares Break Up	Percentage
Bodies corporate	0.03
Directors or relatives of Directors	99.97
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Trader, Importer and Exporter and Service related to Telecommunication Components, Products and Providing Integration Services.
Exports :
Products :	Finished Goods
Countries :	Nigeria Nepal Bangladesh
Imports :
Products :	Raw Materials
Countries :	China Germany
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Cables	Mtrs.	10000000	10000000

Notes:

The licensed capacity is not given as licensing has been abolished vide Press Note No. 9 dated August 2, 1991 and Notification No. S.O. 477 (3E) dated July 25, 1991 issued by the Government of India, Ministry of Industry, Department of Industrial Development.

* As the Company’s operation is assembly in nature, the installed capacity of the plant is not relevant.

GENERAL INFORMATION

Customers :

Wholesalers and Retailers

No. of Employees :

1000 (Approximately)

Bankers :

• Axis Bank Limited, Ground Floor, Axis House, Bombay Dyeing Mills Compund, Pandurang Budhkar Marg, Worli, Mumbai-400025, Maharashtra, India
• Central Bank of India, Plot No.C-6, B Block, Bandra Kurla Complex, Bandra (East), Mumbai-400051, Maharashtra, India

Tel No.; 91-22-26590966

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Rupee term loans secured
Rupee term loans banks secured	120.716	142.079
Working capital loans secured
Working capital loans banks secured	606.853	433.290
Finance lease obligation long-term secured	2.331	1.571
Other debt secured	202.155	168.868
Total	932.055	745.808
Notes (A) This represents Long term loans from banks for the year 2010-2011 (B) This represents Long term loans from banks for the year 2009-10 (C) This represents Short term loans from banks- working capital loan for the year 2010-2011. (D) This represents Short term loans from banks- working capital loan for the year 2009-2010 (E) This is Secured by vehicles taken on lease (F) This is Secured by vehicles taken on lease (G) This includes bill discounting- Rs. 97.068 Millions and buyer's credit-Rs.105.087 Millions For the year 2010-2011 (H) This includes bill discounting- Rs. 91.762 Millions and buyer's credit-Rs. 77.105 Millions For the year 2009-2010

Banking Relations :	--
Auditors :
Name :	S R Batliboi and Company Chartered Accountant
Address :	Jalan Mill Compound, 95, Ganpatrao Kadam Marg, Lower Parel, Mumbai-400013, Maharashtra, India
Tel. No.:	91-22-40356300
Fax No.:	91-22-40356400
PAN No.:	AALFS0506L
Subsidiaries :	Microqual Coverage Solutions Private Limited CIN No.:- U72200MH2008PTC187078 Microqual Global Services Private Limited CIN No.:- U32106MH2010PTC198416 Microqual (Mauritius) Limited
Enterprises under significant influence of the Company :	Microqual Bangladesh Limited Microqual Singapore Pte Limited

CAPITAL STRUCTURE

AFTER 30.09.2011

Authorised Capital : Rs. 584.500 Millions

Issued, Subscribed & Paid-up Capital : Rs. 534.526 Millions

As on 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
3060000	Equity Shares	Rs.10/- each	Rs. 30.600 Millions
920000	Preference Shares	Rs.445/- each	Rs. 409.400 Millions
	Total		Rs. 440.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1514000	Equity Shares	Rs.10/- each	Rs. 15.140 Millions
912048	Fully Compulsorily Convertible Cumulative Preference Share	Rs.445/- each	Rs. 405.861 Millions
	Total		Rs. 421.001 Millions

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
3060000	Equity Shares	Rs.10/- each	Rs. 30.600 Millions
920000	4.025% Fully Compulsorily Convertible Cumulative Preference Shares	Rs.445/- each	Rs. 409.400 Millions
450000	0.10% Fully Compulsorily Convertible Cumulative Preference Shares	Rs.10/- each	Rs. 4.500 Millions
	Total		Rs. 444.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1514000	Equity Shares	Rs.10/- each	Rs. 15.140 Millions
912021	4.025% Fully Compulsorily Convertible Cumulative Preference Shares	Rs.445/- each	Rs. 405.850 Millions
419717	0.10% Fully Compulsorily Convertible Cumulative Preference Shares	Rs.10/- each	Rs. 4.197 Millions
	Total		Rs. 425.187 Millions

Note

1. This represents 3,060,000 Equity shares of Rs.10 each

2. This includes 920,000 - 4.025% Fully Compulsorily Convertible Cumulative Preference shares ('FCCCPs') of Rs 445 each"-Rs.409.400 Millions and 450,000 - 0.10% FCCCPs of Rs 10 each-Rs.4.500 Millions

3. This represents 1,514,031 Equity shares of Rs.10 each fully paid up

4. This includes 912,021 - 4.025% FCCCPs of Rs 445 each fully paid up and 419,717-0.10% FCCCPs of Rs 10 each fully paid up

5. This represents 1,514,031 Equity shares of Rs.10 each fully paid up

6. This includes 912,021 - 4.025% FCCCPs of Rs 445 each fully paid up and 419,717-0.10% FCCCPs of Rs 10 each fully paid up

7. This represents 1,514,031 Equity shares of Rs.10 each fully paid up

8. This includes 912,021 - 4.025% FCCCPs of Rs 445 each fully paid up and 419,717-0.10% FCCCPs of Rs 10 each fully paid up

OTHER DETAILS REGARDING SHARE CAPITAL

(1) 1,514,031 equity shares includes, 1,498,860 equity shares (March 31, 2010: 1,498,860) that have been issued as bonus shares by way of capitalization of reserves.

(2) 27 preference shares under 4.025% Fully Compulsorily Convertible Cumulative Preference shares ('FCCCPs') were converted into 30 equity shares of Rs 10 each during the year.

(3) During the year, the Company has issued 419,717 0.10% FCCCPs of Rs 10 each at a premium of Rs 895.37 per share, fully paid up

(4) Each FCCCPs shall be compulsorily converted into such number of fully paid and non-assessable equity shares as is determined pursuant to terms of the Share Holding Agreement as agreed by the parties i.e. earlier of

(a) The closing of Initial Public Offer

(b) June 26, 2027 in case of 4.025% FCCCP and November 30, 2030 in case of 0.1% FCCCP, as defined under the Share Subscription Agreement.

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		425.187	421.001	421.001
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		832.913	249.272	170.966
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1258.100	670.273	591.967
LOAN FUNDS
1] Secured Loans		932.055	745.808	385.343
2] Unsecured Loans		8.061	0.000	0.000
TOTAL BORROWING		940.116	745.808	385.343
DEFERRED TAX LIABILITIES		46.446	27.008	10.579
TOTAL		2244.662	1443.089	987.889
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		573.213	537.946	539.392
Capital work-in-progress		43.177	41.979	12.893
INVESTMENT		0.245	0.205	0.104
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	229.635	325.066	178.329
	Sundry Debtors	1962.860	807.685	453.929
	Cash & Bank Balances	63.608	52.119	90.622
	Other Current Assets	61.037	80.748	0.327
	Loans & Advances	293.285	153.487	90.544
Total Current Assets		2610.425	1419.105	813.751
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	790.135	486.027	350.238
	Other Current Liabilities	172.505	64.975	25.574
	Provisions	19.758	5.144	2.439
Total Current Liabilities		982.398	556.146	378.251
Net Current Assets		1628.027	862.959	435.500
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2244.662	1443.089	987.889

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	3591.929	2312.852	1255.588
		Other Income	14.184	41.021	8.061
		TOTAL (A)	3606.113	2353.873	1263.649
Less	EXPENSES
		Increase/ Decrease in Stock	0.000	0.000	[62.149]
		Material Consumed	2079.801	1607.482	1027.195
		Manufacturing Service Cost	38.374	36.419	0.000
		Contract Cost	728.557	339.170	0.000
		Employee Cost	117.103	78.940	36.588
		Administrative and other expenses	240.867	99.615	162.609
		Prior Period Item	0.000	(0.774)	5.598
		TOTAL (B)	3204.702	2160.852	1169.841
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		401.411	193.021	93.808
Less	FINANCIAL EXPENSES (D)		88.122	46.549	48.965
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		313.289	146.472	44.843
Less/ Add	DEPRECIATION/ AMORTISATION (F)		36.866	29.937	9.738
	PROFIT BEFORE TAX (E-F) (G)		276.423	116.535	35.105
Less	TAX (H)		74.485	38.229	11.220
	PROFIT AFTER TAX (G-H) (I)		201.938	78.306	23.885
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		246.736	168.430	NA
	BALANCE CARRIED TO THE B/S		448.674	246.736	NA
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	67.030	0.164	0.537
	TOTAL EARNINGS		67.030	0.164	0.537
	IMPORTS
		Raw Materials	227.263	331.616	156.317
		Trading Goods	191.341	81.948	634.703
		Stores & Spares	0.000	0.000	11.048
		Capital Goods	10.585	1.889	290.105
	TOTAL IMPORTS		429.189	415.453	1092.173
	Earnings Per Share (Rs.)
	Basic		120.75	39.10	3.15
	Diluted		74.75	30.78	3.15

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	5.60	3.33	1.89
Net Profit Margin (PBT/Sales)	(%)	7.70	5.04	2.80
Return on Total Assets (PBT/Total Assets}	(%)	8.68	5.95	2.59
Return on Investment (ROI) (PBT/Networth)		0.22	0.17	0.06
Debt Equity Ratio (Total Debt/Networth)		0.75	1.11	0.65
Current Ratio (Current Asset/Current Liability)		2.66	2.55	2.15

LOCAL AGENCY FURTHER INFORMATION

DETAILS SUNDRY CREDITORS:

PARTICULARS	31.03.2011	31.03.2010	31.03.2009
Creditors due small micro enterprises	0.000	2.686	350.238
Creditors due others	790.135	483.341
Total	790.135	486.027	350.238

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	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
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	Yes
20]	Export / Import details (if applicable)	Yes
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	Yes
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	No

BACKGROUND

Subject was incorporated on August 5 1999 as a private limited company. The name of the company was changed to Subject on its conversion to public limited entity during the year ended March 31, 2011 The Company is primarily engaged in manufacturing, trading and services related to telecommunication components and products and providing integration services.

PERFORMANCE

The Company achieved a turnover of Rs.3591.929 Millions (previous year Rs.2312.852 Millions) which represents 55% growth which is outstanding. The Profit after tax Rs.201.937 Millions (previous year Rs.78.306 Millions).

The year saw major events in the Telecom Industry. The US and European markets were stagnant and the emerging markets in Asia such as India and China experienced tough competition. The Industry was in the news in India, most of the times for wrong reasons which diverted the attention of the players and resulted in slower growth. The industry saw the award of 3G licenses during the year fetching the highest ever revenues to the Government of India thereby proving the faith of the investors in the growth of the Indian telecom industry. They expect the same to result in substantial investments in the telecom infrastructure that will offer well-positioned companies like Microqual a great opportunity for growth.

They commenced their RF Cable factory at Aurangabad in January 2009.The quality of their product is excellent and matching all the international standards. They have by now received approvals from almost all the major customers for their product as well as their infrastructure which is rare in the industry. The copper prices were volatile during the year and they were not able to pass on the impact of the same fully to the customer and so had to scale the production accordingly. They have developed a effective hedging mechanism to address the issue of the volatility in the copper prices. With a healthy order book position, they expect to achieve the at least 80% capacity utilization in current year.

In order to cater to the global markets they have decided to acquire (through their subsidiary in Singapore) a 100% equity shareholding in a French Company having a manufacturing facility in China to manufacture RF cables. This will give the company access to the emerging markets like Russia, EMEA countries. The acquisition process is expected to be completed soon.

The TSP division of the Company did exceedingly well. They extended their TSP operations during the year to new states and now the company has presence in 15 states across the country. Looking at the current roll out plans of various Telcos as well as the fact that the 3G rollouts expected later this year, they feel there is an immense opportunity for them and they are well positioned to cater to the entire need of customers (operators and OEMs). They decided to follow their customers to different geographies and have commence TSP business in Nepal, Bangladesh, UAE, Nigeria, Kenya. As they understand the need of local partners in difficult yet lucrative terrains, they have identified suitable local partners in such countries and have formed a joint 49:51 JV in Nigeria directly as well as a 70:30 JV in Bangladesh through their subsidiary in Singapore.

UNSECURED LOAN:

(Rs. In Millions)

Particulars	As on 31.03.2011	As on 31.03.2010
Other debt unsecured	8.061	0.000
Total	8.061	0.000
Note: Details of the same are not provided in the Audited Financial Statement

NEW BUSINESSES:

As they continuously strive to address the changing needs of their customers better, they anticipated that in the years to come, telcos would focus on the reduction of opex and capex. They started studying the power towers and their potential use in telecom infrastructure.

They have won a contract from a national power carrier as well as from a couple of State Electricity Boards where they won exclusive rights to use their transmission towers for the purpose of installing the telecom infrastructure. This will not only reduce the cost of putting up a telecom tower but also significantly reduce the time taken to complete the same. They are confident that this project will take the Company to a new platform where it will start owning the telecom assets. The initial response from the customer is overwhelming and has encouraged them to come up with more innovative solutions to help operators reduce their capex and opex. They extended the concept and benefit of cost reducing solution for operators to In building solutions (IBS) business in which they provide a solution to enhance the telecom signals and improve the connectivity under BOOL (Build, Own, Operate Lease) model. They expect this to bring in substantial revenues in the furture.

Company has also expanded in providing services and solutions in Enterprise Solutions in association with the OEMs.

FORMATION OF SUBSIDIARIES:

In line with the Business Plan of the Company and also as per its decision to spread the business to the different geographies and thereby having the global footprint the Company formed a subsidiary in Mauritius namely Microqual Mauritius Limited which has a step down subsidiary in Singapore namely Microqual Singapore Pte. Limited.

Microqual Mauritius Limited formed a 100% subsidiary viz. Microqual Kenya Limited and Microqual Singapore Pte. Limited formed 100%subsidiaries viz. Microqual Middle East Limited FZE, Microqual Uganda Limited and Microqual Tanzania Limited.

During the year, Company through its Subsidiary Microqual Singapore Pte. Limited acquired 70% shareholding of Safe and Advance Engineering Private Limited (later renamed as Microqual Bangladesh Limited)

JOINT VENTURES

During the year the Company formed a 50:50 joint venture (namely ROCS Global Private Limtied) with M/s. Aerolex Cable Net, Bangalore mainly to carry out its BTS Hotelling Project which involves use of optical fiber and cable TV network to carry RF signals there by significantly reducing CAPEX and OPEX of the telecom operators.

In order to explore the excellent business opportunities in Nigeria and to reap the advantages of growth there, Company formed a 49:51 JV with Servetek Engineering (Nigeria) Limited. The name of the JV is Servequal Limited.

FUTURE PLAN OF ACTION

The Company proposes to have a very well equipped world class R and D facility and New Product development team, which will be manned by experienced and dedicated engineers. The Company considers R and D to be the key for its growth. R and D, therefore, is an integral part of the Company’s future growth plans. The Company shall continue to launch new products and do work on import substitution and optimization.

Aurangabad Plant

a) Development of 7/8 SF Aluminum RF cables.

b) Development of 1/2 F Aluminum RF cables.

c) Development of 1/2 SF Aluminum RF cables.

d) Development of 1-5/8 F Aluminum RF cables.

e) To develop Facility for Repeater Assembly and test Lab.

f) To manufacture ACFCU, DC DG and get site approvals.

g) To develop Hybrid cable for RRU

Rudrapur Plant

a) Resource optimization

b) Maximize Safety and Minimize Environmental Hazards

c) Enhance productivity through improved working methods, regular communication information and training.

d) Import substitution for IBS products

e) Plan of action has been taken to develop products in the current FY. List is as follows.

I) Yagi Antenna

2) Sectorial Antenna

3) Combiner (2:1, 2:2, 3:1)

4) Splitters

5) Couplers

4) Diplexer 1800/2100

4) Triplexer

5) POI (12:4)

Banglore Plant

a) Bangalore Plant to be made dedicated R and D facility passive network components like connectors, splitters, couplers etc

b) Develop all type of connectors for Cables manufactured in Aurangabad plant.

c) Non RF Connectors like Multi pole connectors.

CONTINGENT LIABILITIES

(Rs. In Millions)

Particulars	31.03.2011	31.03.2010
Bank Guarantees	93.712	140.668
Bills Accepted under Letters of Credit	181.292	9.745
Open Letters of Credit	180.635	116.382
Claims against the Company not acknowledged as debts - Income Tax	0.226	0.226
- Custom Duty	1.265	1.265
Cumulative Dividend on FCCCPs	61.854	45.035
EPCG License (Export obligation against concessional custom duty)	73.583	73.583

FORM 8

Corporate identity number of the company	U32200MH1999PTC121164
Name of the company	MICROQUAL TECHNO LIMITED
Address of the registered office or of the principal place of business in India of the company	306, Laxmi Plaza, Laxmi Industrial Estate, New Link Road, Andheri (West), Mumbai - 400 053, Maharashtra
This form is for	Creation of charge
Type of charge	Movable property (not being pledge)
Particular of charge holder	Central Bank of India, Plot No.C-6, B Block, Bandra Kurla Complex, Bandra (East), Mumbai-400051, Maharashtra, India
Nature of instrument creating charge	1. Agreement of Hypothecation to secure demand cash credit against goods, dated 21st January 2012, 2. Agreement of Hypothecation of Book Debts (for sub limit of cash credit facilities) dated 21st January, 2012 All the agreements constitute a single charge.
Date of instrument Creating the charge	21.01.2012
Amount secured by the charge	Rs. 60.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest Compound Interest Rate is 4.0% over Bank's BPRL / Base Rate as stipulated by Bank. Terms of repayment As may be specified from time to time. Margin 25% as stipulated by Bank Extent and operation of the charge 1st Pari Passu charge created by way of hypothecation on stock and book debts for the repayment of financial facilities granted by the bank to the borrower Fund based cash credit Rs. 60.000 Millions (sub limit of CC-ODBD Rs. 15.000 Millions)
Short particulars of the property charged (Including location of the property)	All tangible movable property such as products, stock in trade and goods of the borrowers. All the borrower's present and future book debts.

FIXED ASSETS:

· Freehold Land

· Leasehold Land

· Building

· Plant and Machinery

· Computers

· Office Equipments

· Furniture and Fixtures

· Vehicle

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.54.16
UK Pound	1	Rs.83.88
Euro	1	Rs.71.00

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	RAJ

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
--DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		33

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.