MIRA INFORM REPORT

Report Date :

21.06.2007

IDENTIFICATION DETAILS

Name :	GOLDEN IRON AND STEEL WORKS

Registered Office :	7 / 19, Industrial Area, Kirti Nagar, New Delhi - 110015

Country :	India

Financials (as on) :	31.03.2007

Date of Incorporation :	1959

TAN No.: [Tax Deduction & Collection Account No.]	DELG00066D

Legal Form :	Partnership Concern with an Unlimited Liability of the partners.

Line of Business :	Manufacturer and Exporter of premium quality Forged Flanges, Rings, tube Sheets, Discs, Crank Shafts, Blanks, Nozzles and other Alloys and Stainless Steel Forgings.

RATING & COMMENTS

MIRA’s Rating :

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

Maximum Credit Limit :	USD 40000

Status :	Satisfactory

Payment Behaviour :	Regular

Litigation :	Clear

Comments :	Subject is a well established and reputed concern having satisfactory track. Partners are reported as experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are usually correct and as per commitments. The concern can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	7 / 19, Industrial Area, Kirti Nagar, New Delhi - 110015
Tel. No.:	91-11-25932156 / 25935159 / 25414336
Mobile No.:	91-9811060007 / 9810405521
Fax No.:	91-11-25195342
E-Mail :	gidwgold@.vsnl.net.in
Website :	www.gisw.in
Area :	2500sq.mtrs
Location :	Owned

Factory 1 :	9 / 48, Industrial Area, Kirti Nagar, New Delhi – 110015
Location :	Owned

PARTNERS

Name :	Mr. Pranav Manchanda
Designation :	Chairman
Qualification :	Graduate

Name :	Mr. Nakul Manchanda
Designation :	Chief Executive
Date of Birth/Age :	38 Years
Qualification :	MBA

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of premium quality Forged Flanges, Rings, tube Sheets, Discs, Crank Shafts, Blanks, Nozzles and other Alloys and Stainless Steel Forgings

Products :	Forged Flanges, Rings, Tube Sheets, Discs, Crank Shafts, Blanks, Nozzles and Other Alloys and Stainless Steel Forgings

Brand Names :	Golden

Terms :
Selling :	Cash or Credit

Purchasing :	Cash or Credit

PRODUCTION STATUS

Capacity to increase production by: 30%

GENERAL INFORMATION

Suppliers :	Steel Authority of India

Customers :	© Refineries © Chemical Plants © Fertilizer Pants © Sugar Plants © Power Plants © Bharat Heavy Plate & Vessels Limited. © Bharat Heavy Electricals Limited. © Bharat Petroleum Corporation Limited. © Bharat Pumps & Compressors Limited. © Bongaigaon Refinery & Petro Chemicals Limited. © Cochin Refineries Limited. © Department Of Atomic Energy Indira Gandhi Centre For Atomic Research. © Gas Authority Of India Limited. © Godrej And Boyce Co. Private Limited. © Hindustan Petroleum Corporation Limited. © Indian Farmers Fertiliser Cooperative Limited. © Indian Oil Corporation Limited. © Indian Petrochemicals Corporation Limited © Kirloskar Pneumatic Co Limited © Larsen & Toubro Limited © National Fertilisers Limited © Oil & Natural Gas Commission © Udhe India Limited. © Vikram Sarabhai Space Centre. © Zuari Agro Chemicals Limited.

No. of Employees :	170

Bankers :	Bank of India Kirti Nagar, New Delhi

Facilities :	Yes


Banking Relations :	Satisfactory

CAPITAL STRUCTURE

Capital Investment :
Owned :	Rs.10.000 millions
Borrowed :	-
Total :	Rs.10.000 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

Particulars	31.03.2007	31.03.2006
Sales Turnover	70.000	66.000

Profit/Loss for the year	12%	12%

Expected Sales (2007-08) : Rs.90.000 millions

LOCAL AGENCY FURTHER INFORMATION

Company Details:

Subject is steel flanges manufacturers of northern India, engaged in the production and supply of carbon, alloy and stainless steel flanges and other forged products, for the last 47 years

Ever since Subject entered forging business, a commitment to excellence has been the corner stone of subject corporate philosophy and it takes concerted and comprehensive efforts from GISW to spearhead the ocean of quality, technology & delivery.

As an ISO9001 certified manufacturer, Subject specializes in stainless steel, low alloy steel and carbon steel flanges catered to industries such as; Refineries, Petrochemical & Fertilizer plants, Pressure Vessel manufacturers, Heavy Engineering Industry, Power plants, Defence, Nuclear plants, Cement and Sugar industries.

They may add for your information that they have successfully executed supply of various forgings against a bulk order received from M/s Samsung Engineering Co. Ltd., Korea for their IOCL projects.

It is their priority to satisfy their customers with quality products and considerate service. It is their desire to establish long-term business relations with domestic and overseas clients of forgings.

Subject incorporates power with the help of both strength & strategy. In terms of strategy Subject believes in updating the technology, product development, stringent quality controls and matching international standards. In terms of strength, Subject draws upon its decades of rich experience in forging.

Subject is an organization which strongly believes in quality, dependability and customer service and it provides best solution to the industry's need for cost effective and quality assured as per customer specification. They have earned an enviable reputation for consistently producing high quality work and also for their continuous process of improvement in their service.

Products:

. Weld neck

used for high-pressure application.

2. Slip-On i

deal for low pressure applications.

3. Socket Weld

Often used with high-pressure systems that use smal- ler diameter pipes.

4. Threaded

used in low pressure services at ambient temperature and in highly explosive areas where welding creates
a hazard.

5. Lap Joint

Not suitable for areas with high external or dynamic loads.

6. Blind

used to close off the ends of a piping systems and/or apressure vessel opening.

7. Long Weld Neck

Used primarily as outlets on pressure vessels and tanks

8. Spectacle blinds

used to prevent accidental flow through a pipeline or into a vessel.

Products manufactured are under inspection of

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 records 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.40.75
UK Pound	1	Rs.81.17
Euro	1	Rs.54.59

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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

MIRA INFORM REPORT

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