MIRA INFORM REPORT

Report Date :

21.11.2014

IDENTIFICATION DETAILS

Name :	AKSH OPTIFIBRE LIMITED
Registered Office :	F-1080, Phase III, RIICO Industrial Area, Bhiwadi - 301019, Rajasthan
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	19.03.1986
Com. Reg. No.:	17-016132
Capital Investment / Paid-up Capital :	Rs.742.825 Millions
CIN No.: [Company Identification No.]	L24305RJ1986PLC016132
TAN No.: [Tax Deduction & Collection Account No.]	JPRA01280G
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	The Company is engaged in the manufacturing and selling of Optical Fibre, Optical Fibre Cable, Fibre Reinforced Plastic Rods and Impregnated Glass Roving Reinforcement.
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Exist
Comments :	Subject is an established company having satisfactory track record. The company possesses an acceptable financial profile marked by adequate networth base along with buildup of receivable levels, which raises concerns on recovery of the same and has also led to an increase in the working capital intensity of operations. Moreover, the rating are constrained as a result of adverse impact on the capital structure of the company following the debt funded repayment of the FCCB’s premium and corresponding adjustment from networth. Management has witnessed a slight dip in its sales volume may be as a result of closure of its IPTV services business whereas has reported adequate net profit from its available business i.e. optical fibre cables, comprising sufficient order book position from reputed clients, which has translated into adequate debt coverage metrics. The ratings also take into consideration, the infusion of sizeable amount of funds which remained to be blocked as investments in a broadband project in India, which may earn prospective returns in the future. Trade relations are fair. Business is active. Payment terms are reported as slow but correct. In view of the company’s long track record in the optic fibre cable industry and its diversified portfolio, it can be considered for business dealings at usual trade terms and conditions, while monitoring overall further developments.

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 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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

N E W S

Verdict Implications : Apex court order may alter coal import dynamics. Traders go slow on talks over coal supply contracts, uncertainty over cancellation of blocks weigh on stocks.

Recent arrest of the Chennai head of the Registrar of Companies, the ministry of corporate affairs arm that ensures that companies file all the information required by the Companies Act is the latest manifestation of a messy fight between a father and his adopted son for the control of Rs 40000 mn business empire. The Central Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10 lakhs as bribe from M A M Ramaswamy, a CBI official said.

Central Bureau of Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.

Infosys maintains revenue guidance. COO Rao says attrition still an area of concern and it would take a few more quarters to bring down levels to 13-15 %.

DHL  to invest Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its e-commerce business model for the Asia-Pacific region.

Blackstone may buy stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.

Kingfisher Airlines Ltd grounded in October 2012 under the weight of heavy debt and accumulated losses, recently approached the Delhi high court for relief in two separate cases. The airline challenged a notice by Punjab & National Bank alleging that It had wilfully defaulted on Rs 7700 mn of loans and sought more time to comply with the requirements under the listing agreements with the Stock Exchanges.

OnMobile likely to sack another 300 employees. The lay-offs follow a spate of senior-level exits over the past two years, starting with of its founder. The overall lay-offs could number around 600 and are driven by the need to cut costs, says a former employee.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Fund Based Limited = BB+
Rating Explanation	Inadequate credit quality and high credit risk
Date	August, 2013

Rating Agency Name	ICRA
Rating	Non-Fund Based Limited = A4+
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	August, 2013

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 31-03-2014.

INFORMATION DECLINED

Management Non Cooperative (91-11-26991508)

LOCATIONS

Registered Office/ Factory 1 :	F-1080, Phase III, RIICO Industrial Area, Bhiwadi - 301019, Rajasthan, India
Tel. No.:	91-1493-221954 / 221955 / 221636 / 223536 / 221333 / 220763 / 220388 / 220718
Fax No.:	91-1493-221636 / 221329
E-Mail :	aksh@akshoptifibre.com csl@akshoptifibre.com
Website :	http://www.akshoptifibre.com
Corporate Office :	J-1/1, B-1 Extension, Mohan Co-operative Industrial Estate, Mathura Road, New Delhi -110 044, India
Tel. No.:	91-11-26991508 / 09
Fax No.:	91-11-26991510
Factory 2 :	F-1075-81, RIICO Industrial Area (Phase III), Bhiwadi-301019, Rajasthan, India
Tel No:	91-1493-221333 / 220763 / 220388 / 220718
Fax No:	91-1493-221955 / 223536
Factory 3 :	A-315 (B), RIICO Industrial Area (Phase I), Bhiwadi-301019, Rajasthan, India
Tel./Fax No.:	91-1493-221955 / 223536
Factory 4 :	SP-47, Shri Khatu Shyam Ji Industrial Complex, Ringus, District Sikar-352404, Rajasthan, India
Tel No:	91-1575-224151 / 224154
Fax No:	91-1575-224150
Network Operation Centers :	Located at: Delhi Chandigarh Jaipur Mumbai

DIRECTORS

As on 31.03.2014

Name :	Dr. Kailash S. Choudhari
Designation :	Chairman
Name :	Mr. Chetan Choudhari
Designation :	Managing Director
Name :	Mr. P.F. Sundesha
Designation :	Director
Name :	Mr. B.R. Rakhecha
Designation :	Director
Name :	Mr. Narendra Kumbhat
Designation :	Director
Name :	Mr. Amrit Nath
Designation :	Director
Name :	Mr. D. K. Mathur
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Gaurav Mehta
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2014

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of Total No. of Shares
		As a % of (A+B)
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	26345238	19.79
Sub Total	26345238	19.79
(2) Foreign
Individuals (Non-Residents Individuals / Foreign Individuals)	19592700	14.72
Sub Total	19592700	14.72
Total shareholding of Promoter and Promoter Group (A)	45937938	34.51
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	20000	0.02
Foreign Institutional Investors	1082708	0.81
Any Others (Specify)	0	0.00
Sub Total	1102708	0.83
(2) Non-Institutions
Bodies Corporate	60321743	45.32
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	11344895	8.52
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	10436458	7.84
Any Others (Specify)	3972255	2.98
NRIs/OCBs	1926519	1.45
Trusts	533120	0.40
Foreign Company / Collaborator	1512616	1.14
Sub Total	86075351	64.66
Total Public shareholding (B)	87178059	65.49
Total (A)+(B)	133115997	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	6250000	0.00
(2) Public	12173692	0.00
Sub Total	18423692	0.00
Total (A)+(B)+(C)	151539689	0.00

BUSINESS DETAILS

Line of Business :	The Company is engaged in the manufacturing and selling of Optical Fibre, Optical Fibre Cable, Fibre Reinforced Plastic Rods and Impregnated Glass Roving Reinforcement.
Products :	Not Divulged
Brand Names :	--
Agencies Held :	--
Exports :	Not Divulged
Imports :	Not Divulged
Terms :
Selling :	Not Divulged
Purchasing :	Not Divulged

GENERAL INFORMATION

Suppliers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

Customers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

No. of Employees :

Information declined by the management

Bankers :

• Union Bank of India
• Punjab National Bank

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2014	As on 31.03.2013
Long-term borrowings
Term Loans
External Commercial Borrowings 10.472 Mn USD (31st March, 2013 : Nil)	513.395	0.000
Term Loan from Bank	33.333	0.000
Term Loan from Others	5.196	0.000
Short-term borrowings
Working Capital Facilities	151.103	14.738
Buyers Credit from Banks	48.858	29.016
Total	751.885	43.754

Banking Relations :	--
Auditors :
Name :	P.C. Bindal and Company Chartered Accountants
Subsidiaries Companies :	Apaksh Broadband Limited AOL(FZE)
Fellow Subsidiaries :	AOl Projects JLT
Enterprises over which personal referred in aforementioned exercise significant influences :	Fulchand Finance Private Limited

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
170100000	Equity Shares	Rs.5/- each	Rs.850.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
148564989	Equity Shares	Rs.5/- each	Rs.742.825 Millions

Reconciliation of the shares outstanding at the beginning and at the end of the reporting year Equity shares

	No.	Rs. In Millions
At the beginning of the year	148,564,989	742.825
Add:
- Issued pursuant to conversion of FCCBs	--	--
Outstanding at the end of the year	148,564,989	742.825

Terms / rights attached to equity shares

The Company has only one class of equity shares having par value of Rs. 5/- per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Details of shareholders holding more than 5% shares in the Company

Name of the shareholder	No.	% holding
Dr. Kailash S. Choudhari	25,842,700	17.39%
Religare Finvest Limited	20,851,807	14.04%
Sunidhi Capital Private Limited	9,005,250	6.06%
Davinder Kumar Jain
The Bank of New York, Mellon	9,065,850	6.10%
Seema Choudhari	7,809,341	5.26%

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	742.825	742.825	714.624
(b) Reserves & Surplus	2822.161	2847.933	2503.620
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	3564.986	3590.758	3218.244
(3) Non-Current Liabilities
(a) long-term borrowings	779.141	0.000	0.000
(b) Trade payables	0.000	0.000	3.175
(c) Deferred tax liabilities (Net)	0.000	0.000	0.000
(d) Other long term liabilities	0.000	0.000	0.000
(e) long-term provisions	19.749	18.344	12.458
Total Non-current Liabilities (3)	798.890	18.344	15.633
(4) Current Liabilities
(a) Short term borrowings	259.180	117.491	269.722
(b) Trade payables	374.053	381.104	328.415
(c) Other current liabilities	279.664	919.283	1046.733
(d) Short-term provisions	84.253	3.741	0.388
Total Current Liabilities (4)	997.150	1421.619	1645.258
TOTAL	5361.026	5030.721	4879.135
ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	866.886	974.497	1159.373
(ii) Intangible Assets	76.539	94.825	110.854
(iii) Capital work-in-progress	154.977	33.143	41.223
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	1867.233	1131.752	1131.752
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	8.018	9.019	19.037
(e) Trade receivables	0.000	4.741	7.760
(f) Other Non-current assets	145.573	120.632	125.132
Total Non-Current Assets	3119.226	2368.609	2595.131
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	245.626	150.787	119.933
(c) Trade receivables	678.554	615.315	591.844
(d) Cash and cash equivalents	5.418	19.306	7.547
(e) Short-term loans and advances	1304.606	1868.237	1552.487
(f) Other current assets	7.596	8.467	12.193
Total Current Assets	2241.800	2662.112	2284.004
TOTAL	5361.026	5030.721	4879.135

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	2200.640	2330.049	1852.436
		Other Income	74.206	72.034	58.173
		TOTAL (A)	2274.846	2402.083	1910.609
Less	EXPENSES
		Cost of Materials Consumed	1326.121	1374.411	1061.329
		Purchases of Stock-in-Trade	21.360	39.582	71.732
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(65.273)	(0.234)	33.882
		Employees benefits expense	151.947	138.603	125.212
		Other expenses	430.668	448.591	392.537
		Exceptional Items	(70.660)	(61.902)	(78.461)
		TOTAL (B)	1794.163	1939.051	1606.231
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		480.683	463.032	304.378
Less	FINANCIAL EXPENSES (D)		70.590	37.338	53.481
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		410.093	425.694	250.897
Less/ Add	DEPRECIATION/ AMORTISATION (F)		149.938	166.321	133.010
	PROFIT BEFORE TAX (E-F) (G)		260.155	259.373	117.887
Less	TAX (H)		0.000	0.000	10.991
	PROFIT AFTER TAX (G-H) (I)		260.155	259.373	106.896
	EARNINGS IN FOREIGN CURRENCY
		Exports of Goods and Services	1276.497	1596.283	1379.639
		Interest	52.163	49.110	47.208
	TOTAL EARNINGS		1328.660	1645.393	1426.847
	IMPORTS
		Raw Materials	667.633	754.230	620.478
		Consumable	13.969	14.177	7.426
		Accessories	0.000	11.186	13.829
		Capital Goods	94.884	8.702	0.000
		Others	7.238	10.740	58.448
	TOTAL IMPORTS		783.724	799.035	700.181
	Earnings Per Share (Rs.)		1.75	1.77	0.75

QUARTERLY RESULTS

PARTICULARS	30.06.2014
Type	1^st Quarter
Net Sales	736.100
Total Expenditure	632.600
PBIDT (Excl OI)	103.500
Other Income	13.400
Operating Profit	116.900
Interest	19.200
Exceptional Items	0.000
PBDT	97.700
Depreciation	37.500
Profit Before Tax	60.200
Tax	0.000
Provisions and contingencies	0.000
Profit After Tax	60.200
Extraordinary Items	0.000
Prior Period Expenses	0.000
Other Adjustments	0.000
Net Profit	60.200

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	11.82	11.13	5.77
Operating Profit Margin (PBIDT/Sales)	(%)	21.84	19.87	16.43
Return on Total Assets (PBT/Total Assets}	(%)	7.79	6.72	3.19
Return on Investment (ROI) (PBT/Networth)		0.07	0.07	0.04
Debt Equity Ratio (Total Debt /Networth)		0.29	0.03	0.08
Current Ratio (Current Asset/Current Liability)		2.25	1.87	1.39

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	714.624	742.825	742.825
Reserves & Surplus	2503.620	2847.933	2822.161
Net worth	3218.244	3590.758	3564.986
long-term borrowings	0.000	0.000	779.141
Short term borrowings	269.722	117.491	259.180
Total borrowings	269.722	117.491	1038.321
Debt/Equity ratio	0.084	0.033	0.291

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	1852.436	2330.049	2200.640
		25.783	(5.554)

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	1852.436	2330.049	2200.640
Profit	106.896	259.373	260.155
	5.77%	11.13%	11.82%

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	No
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	----------------------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	----------------------
22]	Litigations that the firm / promoter involved in	Yes
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	No
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

LITIGATIONS DETAILS

RAJASTHAN HIGH COURT

Date of query : 20/11/2014	Time : 3:43:38 PM
COAP'1054’ of 2014-R	2282/2014
Petitioner :	S L S C
Respondent:	M/S AKSH OPTIFIBRE LIMITED
Petitioner Advocate:	R ZB Mathur
Respondent Advocate:
Class Code :	Registered on : 28/04/2014
Bench : SB	Stage :
Listed in court No. on //

Cases Detail in which this is Main Case
Filling Number	Reg. No.	Filing Date
STR-6246/2008	494/2008	09/09/2008

UNSECURED LOAN

Rs. In Millions

Particular	As on 31.03.2014	As on 31.03.2013
Long-term borrowings
Foreign Currency Convertible Bonds (FCCBs) 3.792 Mn USD (31st March, 2013: Nil) 0% FCCBs due on Feb-2019 of $ 1,000 each	227.217	0.000
Short-term borrowings
Deposits
0% loan from Chairman repayable on demand	0.000	4.775
15% Inter Corporate Deposit from related parties repayable on demand	0.000	3.400
15% Inter Corporate Deposit from others repayable on demand	20.000	23.000
9% Security Deposits	0.000	0.992
0% Security Deposits	39.219	41.570
Total	286.436	73.737

CORPORATE INFORMATION

Subject is a public Company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed at The Bombay Stock Exchange Limited, The National Stock Exchange Limited in India and GDRs are listed at Luxembourg Stock Exchange. The Company is engaged in the manufacturing and selling of Optical Fibre, Optical Fibre Cable, Fibre Reinforced Plastic Rods and Impregnated Glass Roving Reinforcement, The Company caters to both domestic and international markets. The Company also provides the Internet Protocol Television (IPTV) services in association with BSNL in 20 cities of North India. The Company is the pioneer in the FTTH (Fibre to the Home) space and has further consolidated its place by starting FTTH services in Delhi, Jaipur, Ajmer and Faridabad.

OPERATIONAL REVIEW

Financial year 2013- 14 closed with revenue of Rs 2274.846 Millions, with EBITDA of Rs 410.023 Millions and PAT of Rs 2601.55 Millions. The manufacturing business earned revenues of Rs. 2089.987 Millions at an EBIT margin of 18.68 %.

During the year, the Company introduced certain new products and adding new markets in the manufacturing business. The Company continues to be recognized globally for high quality FRP (Fibre Reinforced Plastic) Rods, and Optical Fibre Cables.

The detailed analysis of Company’s operations and segment wise performance is covered under Management Discussion and Analysis Report.

FUTURE OUTLOOK

While in 2012-13 there was a surge in demand of OFC, largely fuelled by introduction of next generation technologies and up gradation of existing 2G networks to make them 3G and 4 G compatible was witnessed, a trend which is set to increase further in the coming year, with several Greenfield sites are being rolled out and more in the pipeline with operators preparing to launch 4G services, OFC network deployment is likely to gain momentum over the next few years making India one of the fastest growing markets in this segment.

The year 2013-14 continued to witness the increased concern for women’s safety, which prompted the wireless operators to increase the penetration of OFC networks for providing broadband services for surveillance.

With the change in the government, the roll out of the much awaited NOFN project is to be expedited, fuelling in the demand of the OFC. Further, with the states initiating the egovernance models, there is likely to be huge demand of OFC for running the state e-governance models.

Globally FRP demand is expected to increase by about 20% in FY 2014-15. Currently Aksh has approximately 16-18% share in global demand of FRP which is set to surge ahead. The domestic FRP demand is expected to grow by 50% in FY 2014-15.

With the increased demand of residential dwellings and more high rise towers coming up to cater the increased demand of homes, there is significant potential in the FTTH segment as users want high speed broadband, high definition video and unlimited telephony and more importantly real time surveillance, there is a lot of space for OFC business to expand and flourish.

MANAGEMENT DISCUSSION AND ANALYSIS

Industry Structure and Developments

Global Industry Scenario

Optical Fiber

As an innovation that transformed the landscape of global communications, optical fiber will become the ultimate carrier to connect the globe at the most affordable cost. Due to its compatibility with other technologies, growing cost effectiveness, and nearly unlimited bandwidth, optical fiber has the capacity to grow and adapt to future consumer demands for voice, data, and video capability. In other words, optical fiber is here to stay.

In last few years, the use of broadband and perpetually increased use of internet driven application has exploded the demand for optical fiber. This demand for a faster, more affordable delivery system of communications with universal access is a principal driver of the need for increased bandwidth across the Globe.

Today’s customers would want to have triple-play services, with voice, video, and data all provided to us by a single connection instead of multiple connections. Applications such as file-sharing, on-line gaming, video on demand and HDTV all require bandwidth capacity that is pushing the limits of traditional access transmission technologies such as digital subscriber lines (DSL), cable, and wireless. Only optical fiber has the capacity to reliably and simultaneously deliver all of the services flowing through the information highways.

The world’s fiber shipments for the Q1 of 2014 experienced an increase of 13% over the Q1 shipments of 2013. With China’s telcos starting 4G network constructions, the demand of optical fibre in china is set to increase. OF exports to Middle East and Saudi Arabia continue to increase and was up by 47%. New Optical Fibre manufacturing facilities are being set up in South America and Spain to cater the increasing demand of Optical fibre across the globe. China is also setting up new manufacturing facilities of Optical fibre, to meet its own demand.

Optical Fibre Cable

Global prospects for fiber optics appear optimistic. The growth is expected in the global market for fiber optics through 2017. It is noteworthy that data traffic through optical fiber cables offer advantages in terms of high reliability, security, capacity and cost-effectiveness. Thus, it does not come as a surprise that enterprise markets have rushed to secure fiber optics for their network needs.

The growing usage of data services is triggering a radical transformation in the World’s telecom sector. Wireless services, which have long been the dominant platform and were responsible for World’s unprecedented telecom growth, have become less effective as a channel for delivering high bandwidth applications. Spectrum available with telecom operators is proving to be highly inadequate as they are recording a massive uptake of data services on their networks. The situation will deteriorate with 3G services gaining further momentum and the launch of 4G services by all operators.

In such a scenario, optical fiber cables (OFCs), with its unlimited bandwidth capacity, are emerging as the key technology for catering to the surging data demand in the Globe.

With the world now looking towards the African continent to explore new opportunities, it is imperative that the African nations catch up with the new global information technology involving Optical fibre cables. With this in mind, there is a growing surge towards the African continent for future developments. Optical fibre cables is to play a vital role in the same due to their high bandwidth, high reliability, high signal quality, long lifetime, better security and low service cost, fiber optic networks are suited for inter and intra continental backbone network infrastructure.

With a global population that’s both growing and living longer, the world’s healthcare providers are increasingly looking to advanced biomedical instrumentation to enable more efficient patient diagnosis, monitoring, and treatment. In this context, biomedical sensing applications of optical fiber are of growing importance, since optical fibers are immune to electromagnetic interference (EMI), chemically inert, nontoxic, and intrinsically safe.

With the rise of the Internet, education has been completely transformed. Distance learning, for example, used to be largely a lonely experience. In today’s information age, students do not only overcome difficulties interacting with the tutor, but can now easily overcome the nightmare of waiting for tutorials in the mail for long periods of time. In addition, the Internet constitutes a virtual classroom in which interaction can take place between students anywhere in the world. The information age has seen the acceleration of research at educational and other institutions because of the abundance of scientific data on the Internet and the advent of electronic journals. The cost of electronic technical Information is negligible compared to traditional research journals. In this area lies an ample opportunity for the growth of optical fibre networks, giving an upward thrust to the increase in demand of Optical Fibre cable.

Indian Industry Scenario

India finally gets on track in deploying nationwide broadband network. With the government announcing its ambitious national optical fibre network to provide connectivity to all the 2,50,000 Gram Panchayats (GPs) to ensure broadband connectivity with adequate bandwidth.

Furthermore, the Indian railways and Indian defence is also deploying their own optical fibre cable network, deployment of 4G network and increase in FTTH deployments has given a boost to the increased demand of the optical fibre cable in India. In the budget of 2014-15, it is proposed to give boost to infrastructure projects, and to make e-filings and having the ecompliances done. For this purpose, it is incremental that the broadband network should grow at a rapid pace.

High speed high bandwidth backhaul is required for increasing data usage on the 3G platform and introduction of 4G services. The demand for Telecom Cables will gain a fillip as service providers upgrade this backhaul in their networks to accommodate and cater increasing smartphone and tablet penetration and thereby increase in demand of bandwidth to handle the increase in data traffic.

Domestic Market

The Indian domestic Optical fibre market, during the past fiscal has grown tremendously and it is expected to be a $ 290.8 Mn by 2018, registering a growth at a CAGR of 12.5 %. The demand for optical fibre cables is poised to ride an upward growth curve with the emergence of next generation technologies, and government initiatives under the National Telecom Policy 2012. High speed high bandwidth backhaul is required for increasing data usage on the 3G platform and introduction of 4G services. The demand for Telecom Cables will gain a filip as service providers upgrade this backhaul in their networks to accommodate and cater increasing smartphone and tablet penetration and thereby increase in demand of bandwidth to handle the increase in data traffic.

Data growth in the Indian telecom market has reduced the prominence of traditional wireline broadband technologies such as digital subscriber line and cable modem. These technologies are not efficient enough to meet the customers’ demand for high-bandwidth applications such as high speed internet access, video-on-demand, high definition TV, IPTV and online gaming. In this scenario, fibre-to-the-home (FTTH) technology, which offers advantages like high bandwidth capacity and the delivery of high speed, high quality and multiplay services (data, voice and video) through a single channel, presents a strong business opportunity for telecom operators.

The demand for OFC consumption in India primarily comes from telecom operators and multiple-system operators (MSOs), followed by data centers and other PSUs. During 2012-13, telecom operators accounted for 60 per cent of the overall OFC demand in India, requiring fiber across core, middle mile and access networks. The roll-out of the 4G long term evolution (LTE) mobile network is also driving the demand for high fiber-count OFC, as operators use fiber in tower verticals instead of co-axial cable that runs between the ratio heads and ground level base stations.

MSOs are also driving the current demand for fiber, with most of them upgrading their middle and last mile networks to provide high-speed broadband services to consumers and enterprises. Going forward, cable broadband players (especially those offering Ethernet-based cable broadband) will lay out last-mile aerial fiber to provide high-speed broadband.

FTTH networks’ ability to deliver high bandwidth has made investments in this infrastructure very important for operators. They are increasingly deploying FTTH technology to complement their wireless networks. Spectrum crunch is another major factor that has led operators to look for viable alternative mediums. Also, to achieve the broadband targets set by the government under the National Telecom Policy, it will be important to drive FTTH growth along with other technologies.

IPTV Services Scenario

Internet Protocol Television (IPTV) is widely adopted and accepted as a viable solution to deliver HDTV, Video on Demand (VoD) and time-shifted TV, making the entire experience more interactive and personalized. IPTV services can be delivered by telecom service providers or Internet service providers.

FTTH has now emerged as a mainstream business preposition with tremendous growth potential as users are increasingly looking for high-speed broadband, high-definition videos, unlimited anywhere telephony and real-time surveillance.

Future Outlook

The OFC market is set to grow with the implementation of National Optical Fibre Network (NOFN), which aims to increase internet usage and improve connectivity in suburban and rural areas. Continuing expansion of existing networks by Railways and Defence will also help fuel the demand, apart from private players who want to build project with OFC as key component. Also the cable digitalization policy plans to have a complete analog sunset by the end of 2014 in India, this will further boost the optical fibre cable growth in the country.

The market is expected to reach Rs 15 billion by 2017-18, registering a compound annual growth rate of 15 per cent. The Indian market constituted about 7 per cent of global fiber shipments worth 278.5 million fiber km during 2013-14, translating into a fiber shipment of about 19.50 million fiber km, recording a year-on-year growth of about 30 per cent.

As the data demand in India hits new record levels, the OFC market is set to witness a period of strong growth. While the increasing usage of smartphones calls for the deployment of OFC across all components of telecom networks (backbone, metro, and access), the growth of OFC, at least in the short to medium term, would be driven by increasing deployments in the backbone network. Wireless, on the other hand, would continue to be the last-mile technology for service delivery. The booming OFC market may also result in the entry of global cable manufacturers into the Indian domain, further intensifying the competition in the market.

The Indian FTTH market will be more successful than its global counterparts due to large population density of the country. The rapid pace with which the landscape of the country is changing, with increased demand of houses, the builders while building new housing complexes, a making a conscious effort to lay fibre instead of copper for providing television and telephone services connectivity to each apartment. They are providing optical network terminals and optical line termination devices within the complex.

Aksh is today a global name and to broaden, it is planned to increase the exports and domestic sales, to establish manufacturing facilities outside India and to execute large numbers of turnkey projects both domestic and internationally.

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10476739	25/01/2014	2,448,000.00	HEWLETT PACKARD FINANCIAL SERVICES (INDIA) PRIVATE  LIMITED	3RD FLOOR, CALCOT HOUSE, 8/10, M.P. SHETTY MARG,  TAMARIND STREET, FORT, MUMBAI, MAHARASHTRA - 400023, INDIA	B96004395
2	10472053	28/02/2014 *	50,000,000.00	PUNJAB NATIONAL BANK	SHALIMAR BAGH BRANCH, AM-60, SHALIMAR BAGH, NEW D  ELHI, DELHI - 110088, INDIA	C00576819
3	10423784	12/06/2014 *	2,079,086,000.00	UNION BANK OF INDIA	M-11, MIDDLE CIRCLE, CONNAUGHT PALCE, NEW DELHI, DELHI - 110001, INDIA	C09736315

* Date of charge modification

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED SEPTEMBER 30, 2014

Rs. in Millions

Particulars		Quarter ended		Period ended
		30.09.2014	30.06.2014	30.09.2014
		Unaudited	Unaudited	Unaudited
1	Income from Operations
	(a) Net sates/income from operations (Net of excise duty)	843.008	782.731	1625.739
	(b) Other Operating Income	51.122	46.596	97.719
	Total income from operations (net)	791.886	736.135	1528.020
2	Expenses
	(a) Cost of materials consumed	482.881	448.537	931.418
	(b) Purchases of stock-in trade	16.433	10.547	36.980
	(c) Changes in inventories of finished goods. work-in-progress and stock in trade	(7.409)	11.078	3.670
	(d) Employee benefits expense	44.280	43.503	87.784
	(e) Depreciation and Anmortisation Expenses	37.211	37.494	74.705
	(f) Other Expenses	134.887	118.939	253.826
	Total expenses	708.283	670.098	1378.383
3	Profit/ (Loss) from operations before other Income, finance costs and exceptional Items (1-2)	83.603	66.037	149.637
4	Other Income	12.031	13.345	25.376
5	Profit/ (Loss) from operations before other income, finance costs and exceptional items (3+4)	95.634	79.382	175.013
6	Finance Costs	24.526	19.224	43.750
7	Profit/ (Loss) from ordinary activities after finance cost but before exceptional items (5-6)	71.108	60.158	131.263
8	Exceptional items	-	--	--
9	Profit/ (Loss) from ordinary activities before tax (7+8)	71.108	60.158	131.263
10	Tax expenses	--	--	--
11	Net Profit / (Loss) from ordinary activities after tax (9-10)	71.108	60.158	131.263
12	Extraordinary item (net of tax expense)	--	--	-
13	Net Profit / (Loss) for the period (11-12)	71.108	60.158	131.263
14	Share of profit' (loss) of associates	--	--	--
15	Minority Interest	--	--	--
16	Net Profit/ (Loss) after taxes, minority interest and share of profit/(loss) of associates (13+14+15)	71.108	60.158	131.263
17	Paid up equity share capital (Face Value of Rs10/- each)	757.698	748.403	742.825
18	Reserve excluding Revaluation Reserve as per Balance Sheet of previous accounting year	--	--	--
19.i	Earnings per share (before extraordinary items) of Rs.10/- each (not annualised):
	(a) Basic	0.48	0.40	0.88
	(b) Diluted	0.44	0.37	0.82
19.ii	Earnings per share (after extraordinary items) of Rs.10/- each (not annualised)
	(a) Basic	0.48	0.40	0.88
	(b) Diluted	0.44	0.37	0.82
A	PARTICULARS OF SHAREHOLDING
1	Public Shareholding
	- Number of shares	99,351,751	97,492,563	99,351,751
	- Percentage of shareholding	65.56%	65.13%	65.56%
2	Promoters and Promoter group shareholding
	a) Pledged / Encumbered
	- Number of shares	--	--	--
	- Percentage of shares (as a % of the total shareholding of Promoter & Promoter group)	--	--	--
	- Percentage of shares (as a % of the total Share Capital of the Company)	--	--	--
	b) Non Encumbered
	- Number of shares	52,187,938	52,187,938	52,187,938
	- Percentage of shares (as a % of the total shareholding of Promoter & Promoter group)	100.00%	100.00%	100.00%
	- Percentage of shares (as a % of the total Share Capital of the Company)	34.44%	35.87%	34.44%
B	INVESTOR COMPLAINTS
	Pending at the beginning of the quarter	--
	Received during the quarter	--
	Disposed off during the quarter	--
	Remaining unresolved at the end of the quarter	-

Segment wise Revenue Results and Capital Employed under clause 41 of the Listing Agreement

Rs. In Millions

Particulars		Quarter ended		Period ended
		30.09.2014	30.06.2014	30.09.2014
		Unaudited	Unaudited	Unaudited
1	Segment Revenue
	a Manufacturer	746.829	711.004	1457.832
	b Trading	22.201	11.888	34.089
	c Services	24.118	13.243	37.361
	Total	793.148	736.135	1529.282
	Less: Inter-Segment revenue	1.262	--	1.262
	Net Sales I Income from Operations	791.886	736.135	1528.020
2	Segment Results Profit I (Loss) (before tax, finance cost and exceptional items) from Segment
	a Manufacturer	127.205	120.138	247.344
	b Trading	6.476	1.341	7.816
	c Services	(24.188)	(27.235)	(51.423)
	Total	109.493	94.244	203.737
	Less:
	i) Finance costs	24.526	19.224	43.750
	ii) Other un-allocable expenditure net off un-allocable income l expenditure	13.859	14.862	28.724
	Total Profit(Loss) before Tax	71.108	60.158	131.263
3	Segment Capital employed
	a Manufacturer	787.968	752.885	787.968
	b Trading	--	--	--
	c Services	914.333	923.577	914.333
	d Unallocated	2737.088	2723.825	2737.088
	Total Segment Capital Employed	4439.389	4400.287	4439.389

STANDALONE / CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES

Rs. In Millions

Particulars		As at 30.09.2014
	Particulars
A	EQUITY AND LIABILITIES
1	Shareholder’s Funds
	a) Share Capital	757.698
	b) Reserves & Surplus	2987.536
	Sub Total- Shareholders funds	3745.234
2	Share application money pending allotment	--
3	Minority Interest	--
4	Non-current liabilities
	(a) Long term borrowings	694.152
	(b) Long term provisions	21.790
	Sub Total- Non Current Liabilities	715.942
5	Current liabilities
	(a) Short term borrowings	395.346
	(b) Trade Payables	504.517
	(c) Other current liabilities	336.612
	(d) Short term provisions	64.648
	Sub Total- Current Liabilities	1301.123
	TOTAL-EQUITY AND LIABILITIES	5762.299
B	ASSETS
1	Non-current assets
	(a) Fixed assets	1052.466
	(b) Non-current Investment	1867.213
	(c) Long term loans and advances	8.585
	(d) Other Non-current Assets	162.985
	Sub-Total- Non current assets	3091.249
2	Current assets
	(a) Inventories	249.348
	(b) Trade Receivables	1005.121
	(c) Cash and cash equivalents	18.465
	(d) Short term loans and advances	1387.041
	(e) Other current assets	11.075
	Sub-Total- current assets	2671.050
	TOTAL ASSETS	5762.299

Note:

1. The above financial results were approved by the Audit Committee and taken on record by the Board of Directors in their respective meetings held on November 1^st, 2014

2. During the quarter, Company has allotted 18,59,188 Equity Shares of Rs. 5 each fully paid up upon conversion of USD 0.50 Mn

3. Exchange gain / (loss) on foreign currency assets/liabilities (other than operation) has not been provided for the quarter ended Sep 30, 2014. The effect of such gain /(loss) will be provided for at the year end. Had such gain / (loss) been provided, the profit for the quarter would have been higher by Rs.6.275 Millions and 6.345 Millions respectively. .

4. Previous periods figures have been regrouped and rearranged wherever necessary.

FIXED ASSETS

Tangible Assets

• Freehold Land
• Leasehold Land
• Factory Building
• Plant and Machinery
• Telecom Networking
• Testing Instrument
• Air Conditioner
• Furniture and Fixtures
• Office Equipments
• Data Processing Systems
• Electric Fittings
• Vehicles
• Fork Lift

Intangible Assets

• Computer Software

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.62.10
UK Pound	1	Rs.97.32
Euro	1	Rs.77.91

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	SUB
Report Prepared by :	NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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	NO
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	NO
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		46

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.