MIRA INFORM REPORT

Report Date :

08.08.2014

IDENTIFICATION DETAILS

Name :	GOOD LUCK STEEL TUBES LIMITED GOOD LUCK ENGINEERING COMPANY A UNIT OF GOOD LUCK STEEL TUBES LIMITED
Registered Office :	5/102, Sikka Complex, 1^st Floor, Community Centre, Preet Vihar, Vikas Marg, Delhi – 110092
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	06.11.1986
Com. Reg. No.:	55-050910
Capital Investment / Paid-up Capital :	Rs.39.843 millions
CIN No.: [Company Identification No.]	L74899DL1986PLC050910
TAN No.: [Tax Deduction & Collection Account No.]	MRTG00350A
PAN No.: [Permanent Account No.]	AAACG3204D
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Subject is engaged in the Manufacturing of Black and G.I. Pipe, C.R. Sheet / Coil, G.P.G.C. Sheet / Coil, C.R.C.A. Sheet / Coil, Structures, Poles, Stainless / Mild / Alloy steel forgings and flanges, Bright Bars, ERW Tube and CDW Tubes, etc.
No. of Employees :	Information denied by the management.

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. Performance capacity of the company seems to be good. Trade relation reported to be fair. Business is active. Payment terms are reported to be regular and as per commitments. The company can be considered for business dealing at usual trade terms and conditions.

NOTES:

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

ECGC Country Risk Classification List – June 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

As per the latest IMF study, the total weigh of emerging markets in the GDP of the world on a purchasing power parity basis has seen a sizeable shift. It highlights how as against 51 % in 2005, the emerging economies now account for close to 56 % of the global purchasing power GDP as per the latest survey. And with the emerging economies growing at a faster rate than their developed counterparts, there are every possibility that the their share goes up further in the coming years.  China may surpass the US over the next few years.

Politics and economics are very intricately connected. They tend to influence each other in ways that could be very complex and far-reaching. The prospects of the India’s economy have been seriously compromised due to political corruption. High inflation, poor standard of living are to a great extent a result of rampant corruption in the country. China on the other hand, seems to be facing diametrically opposite challenge. American hedge fund manager Jim Chanos has been keenly following the political and economic development in the dragon economy and has figured out something that is quite worrying. He is of the view that the Chinese economy could be heading toward trouble on account of new Chinese President Xi Jingping’s very aggressive anti-corruption drive. Chanos believes tat many things such as apartment sales, luxury products, etc. were largely bought with dirty money. And it is now beginning to impact consumption. This may indeed be bad news for an economy that is struggling to transition from an investment-driven export-oriented economy to a domestic consumption-driven economy.

A study published by Firstpost has revealed that asset classes like real estate and equities were the biggest beneficiaries of the liberalization policies.  A firm called Ciane Analytics studied returns from assets including equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate outperformed every other asset classes during the 23-year period with an annualized return of 20 % ! Equities came in second with annualized return of 15.5 % ! However, while these returns may seem mouthwatering, the fact is that the return from equities adjusted for inflation came down to just 7.1 %.

Some brief news are as under

. R-Power to buy Jaypee’s hydro assets

. Investors await justice in NSEL case

. India seeks MFN status from Pakistan ahead of meeting

. Ukrain’s clashes with rebels hinder MH17 crash investigation

. India exploring merger of state-owned hydro PSUs

..Higher costs weigh down profit growth to slowest in 9 quarters

..Wal-Mart to expand wholesale business in India

. GMR group moves to strengthen balance sheet

. Central Bank to sell 4 % stake to Life Insurance Corporation

. Tata Chemicals plans to raise up to Rs 10000 mn.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	BBB [Term Loan]
Rating Explanation	Moderate credit quality and average credit risk.
Date	January 2014

Rating Agency Name	ICRA
Rating	A3+ [Non Fund Based Limits]
Rating Explanation	Moderate degree of safety and higher credit risk.
Date	January 2014

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 BY

Name :	Mr. S. K. Garg
Designation :	Director
Name :	Ms. Sonam Singh
Designation :	HR Department
Contact No.:	91-120-4196600
Date :	07.08.2014

LOCATIONS

Registered Office :	5/102, Sikka Complex, 1^st Floor, Community Centre, Preet Vihar, Vikas Marg, Delhi – 110092, India
Tel. No.:	91-11-22465439
Fax No.:	91-11-22214254
E-Mail :	cs@goodlucksteel.com
Website :	http://www.goodlucksteel.com
Corporate Office :	II F 166-167, Good Luck House, Nehru Nagar, Ambedakar Road, Ghaziabad, Uttar Pradesh, India
Tel. No.:	91-120-4196600 / 4196700
Fax No.:	91-120-4196666 / 4196777
Email:	investor@goodlucksteel.com
Factory 1 :	A-42 and 45, Industrial Area, Sikandrabad, District Bulandshahr - 203205 Uttar Pradesh, India
Tel. No.:	91-5735-221969 / 221970
Fax No.:	91-5735-222863
Factory 2 :	A-51, Industrial Area, Sikandrabad, District Bulandhahar-203205, Uttar Pradesh, India
Tel. No.:	91-5735-221017
Factory 3 :	Khsra No. 2839, Dhoom Manik Pur, G.T. Road, Gautam Budh Nagar, Dadri, Uttar Pradesh, India
Tel. No.:	91-120-2666896

DIRECTORS

AS ON 31.03.2013

Name :

Mr. Mahesh Chandra Garg

Designation :

Director

Address :

R-4/52, Raj Nagar, Ghaziabad, Uttar Pradesh, India

Date of Birth/Age :

28.06.1946

Date of Appointment :

06.11.1986

DIN :

00292437

Other Directorship:

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	L74899DL1986PLC050910	GOOD LUCK STEEL TUBES LIMITED	Whole-time director	01/10/2012	06/11/1986	-	Active	NO
2	U28112DL2009PTC192792	GOODLUCK INFRAPOWER PRIVATE LIMITED	Director	01/01/2010	01/01/2010	14/06/2012	Active	NO
3	U27109DL2004PTC128383	MASTERJI METALLOYS PRIAVATE LIMITED	Additional director	01/02/2012	01/02/2012	06/09/2012	Active	NO
4	U15141DL1999PTC102941	PVGMB PETROCHEM PRIVATE LIMITED	Additional director	10/12/2012	10/12/2012	-	Active	NO

Name :

Mr. Ramesh Chandra Garg

Designation :

Director

Address :

10/159, Raj Nagar, Sector - 10, Ghaziabad, 201001, Uttar Pradesh, India

Date of Birth/Age :

15.07.1946

Date of Appointment :

12.09.1988

DIN :

00298129

Other Directorship:

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	L74899DL1986PLC050910	GOOD LUCK STEEL TUBES LIMITED	Whole-time director	01/10/2012	12/09/1988	-	Active	NO
2	U51909DL2003PTC123138	VIDISHA EXPORTS PRIVATE LIMITED	Director	29/04/2005	29/04/2005	-	Converted to LLP and dissolved	NO
3	U28112DL2009PTC192792	GOODLUCK INFRAPOWER PRIVATE LIMITED	Director	01/01/2010	01/01/2010	14/06/2012	Active	NO
4	U27109DL2004PTC128383	MASTERJI METALLOYS PRIAVATE LIMITED	Additional director	01/02/2012	01/02/2012	-	Active	NO
5	AAB-7978	VIDISHA EXPORTS LLP	Designated Partner	04/10/2013	04/10/2013	-	Active	NO

Name :

Mr. Vijender Kumar Tyagi

Designation :

Director

Address :

K 36 Hig, Niti Nagar, Sector - 23, Ghaziabad, Uttar Pradesh, India

Date of Birth/Age :

05.10.1957

Date of Appointment :

19.12.2006

DIN :

01584278

Name :

Mr. Rahul Goel

Designation :

Director

Address :

Ke 93, Kavi Nagar, Ghaziabad, Uttar Pradesh, India

Date of Birth/Age :

14.09.1972

Date of Appointment :

19.12.2006

DIN :

02067212

Name :

Mr. Anurag Agarwal

Designation :

Director

Address :

Om Kunj, Chiranji Colony, Dadri,Gautam Budha Nagar, Uttar Pradesh, India

Date of Birth/Age :

12.02.1982

Date of Appointment :

19.12.2006

DIN :

01584222

Name :

Mr. Nitin Garg

Designation :

Director

Date of Birth/Age :

31.05.1980

Date of Appointment :

21.09.2012

KEY EXECUTIVES

Name :	Mr. Abhishek Agrawal
Designation :	Company Secretary
Name :	Mr. Deepak Sharma
Designation :	Deputy General Manager in Finance

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.06.2014

Category of Shareholder	Total No. of Shares	% of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	13428615	63.93
Sub Total	13428615	63.93
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	13428615	63.93
(B) Public Shareholding
(1) Institutions
Insurance Companies	835680	3.98
Sub Total	835680	3.98
(2) Non-Institutions
Bodies Corporate	3367319	16.03
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	2644241	12.59
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	231721	1.10
Any Others (Specify)	498674	2.37
Clearing Members	286723	1.36
NRIs/OCBs	211951	1.01
Sub Total	6741955	32.09
Total Public shareholding (B)	7577635	36.07
Total (A)+(B)	21006250	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	21006250	0.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in the Manufacturing of Black and G.I. Pipe, C.R. Sheet / Coil, G.P.G.C. Sheet / Coil, C.R.C.A. Sheet / Coil, Structures, Poles, Stainless / Mild / Alloy steel forgings and flanges, Bright Bars, ERW Tube and CDW Tubes, etc.

GENERAL INFORMATION

No. of Employees :

Information denied by the management.

Bankers :

· Axis Bank Limited, 4/10, Opg House, Asaf Ali Road, New Delhi – 110002, Delhi, India

· ING Vysya Bank Limited, 30-31, Navyug Market, Ghaziabad – 201001, Uttar Pradesh, India

· Bank of Baroda

· Union Bank of India

· State Bank of India

· Standard Chartered Bank

Facilities :

Secured Loan	As on 31.03.2013 [Rs. in Millions]
Long Term Borrowings
From State Bank of India	99.500
From Axis Bank Limited	223.859
Short Term Borrowings
Working Capital Loan From Banks	2190.818
TOTAL	2514.177

Banking Relations :	--
Auditors :
Name :	Sanjeev Anand and Associates Chartered Accountants
Address :	77, Navyug Market, Ghaziabad - 201001, Uttar Pradesh, India
PAN No:	AAPFS7604B
Associates :	Masterji Metalloys Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2014

Authorised Capital : Not Available

Issued, Subscribed & Paid-up Capital : Rs.39.843 Millions

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
50000000	Equity Shares	Rs.2/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
18721250	Equity Shares	Rs.2/- each	Rs.37.443 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	39.843	37.443	37.443
(b) Reserves & Surplus	1401.684	1150.532	940.698
(c) Money received against share warrants	18.988	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	1460.515	1187.975	978.141
(3) Non-Current Liabilities
(a) long-term borrowings	389.219	433.572	418.412
(b) Deferred tax liabilities (Net)	144.612	118.586	82.806
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	9.808	6.046	3.887
Total Non-current Liabilities (3)	543.639	558.204	505.105
(4) Current Liabilities
(a) Short term borrowings	2264.530	2190.818	1856.840
(b) Trade payables	630.885	413.356	187.268
(c) Other current liabilities	272.411	259.941	174.590
(d) Short-term provisions	84.013	83.084	95.856
Total Current Liabilities (4)	3251.839	2947.199	2314.554
TOTAL	5255.993	4693.378	3797.800
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1243.317	1165.897	799.016
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	123.678	2.272	167.962
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	21.461	21.461	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	77.370	69.660	87.431
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	1465.826	1259.290	1054.409
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	1373.969	1155.044	1024.516
(c) Trade receivables	1879.449	1831.768	1315.757
(d) Cash and cash equivalents	78.784	65.435	56.904
(e) Short-term loans and advances	457.965	381.841	346.214
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	3790.167	3434.088	2743.391
TOTAL	5255.993	4693.378	3797.800

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	10009.798	9532.435	6790.480
		Other Income	10.726	241.202	144.361
		TOTAL (A)	10020.524	9773.637	6934.841
Less	EXPENSES
		Cost of Raw Materials Consumed	7659.319	7256.804	5398.826
		Purchase of Stock-in-Trade	12.861	295.580	3.201
		Changes in Inventories of Finished Goods Stock-in-Process and Stock-in-Trade	(129.639)	(138.162)	(129.897)
		Employee Benefit Expenses	343.455	295.911	232.994
		Other Expenses	1424.683	1320.889	898.625
		Prior Period Items	0.227	(1.551)	5.949
		TOTAL (B)	9310.906	9029.471	6409.698
	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		709.618	744.166	525.143
Less	FINANCIAL EXPENSES (D)		353.815	344.088	192.125
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		355.803	400.078	333.018
Less	DEPRECIATION/ AMORTISATION (F)		75.613	70.552	52.143
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		280.190	329.526	280.875
Less	TAX (H)		103.047	110.102	79.751
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		177.143	219.424	201.124
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		904.756	734.094	581.673
Less	APPROPRIATIONS
		Transfer to General Reserve		40.000	40.000
		Proposed Dividend		7.489	7.489
		Dividend Tax		1.273	1.215
	BALANCE CARRIED TO THE B/S		NA	904.756	734.093
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Exports	NA	3525.019	1834.265
	IMPORTS
		Raw Materials		0.000	4.147
		Stores & Spares		0.387	0.083
		Capital Goods		16.129	1.754
	TOTAL IMPORTS		NA	16.516	5.984
	Earnings / (Loss) Per Share (Rs.)		9.46	11.72	10.74

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
PAT / Total Income	(%)	1.77	2.25	2.90
Net Profit Margin (PBT/Sales)	(%)	2.80	3.46	4.14
Return on Total Assets (PBT/Total Assets}	(%)	5.48	7.06	7.74
Return on Investment (ROI) (PBT/Networth)		0.19	0.28	0.29
Debt Equity Ratio (Total Debt/Networth)		1.82	2.21	2.33
Current Ratio (Current Asset/Current Liability)		1.17	1.17	1.19

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	37.443	37.443	39.843
Reserves & Surplus	940.698	1150.532	1401.684
Money received against share warrants	0.000	0.000	18.988
Net worth	978.141	1187.975	1460.515
long-term borrowings	418.412	433.572	389.219
Short term borrowings	1856.840	2190.818	2264.530
Total borrowings	2275.252	2624.390	2653.749
Debt/Equity ratio	2.326	2.209	1.817

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	6,790.480	9,532.435	10,009.798
		40.379	5.008

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	6,790.480	9,532.435	10,009.798
Profit	201.124	219.424	177.143
	2.96%	2.30%	1.77%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	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	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	No
31]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

INDEX OF CHARGES:

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10034338	18/12/2006	232,400,000.00	UNION BANK OF INDIA	OVERSEAS BRANCH, CONNAUGHT PLACE, NEW DELHI - 110001, INDIA	A09634932

Unsecured Loan	As on 31.03.2013 [Rs. in Millions]
Long Term Borrowings
From Related Parties	92.313
From Body Corporate	17.900
TOTAL	110.213

FIXED ASSETS:

· Land

· Factory Building

· Office Building

· Furniture and Fixture

· Plant and Machinery

· Office Equipments

· Electrical Installation

· Vehicles

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.61.41
UK Pound	1	Rs.103.42
Euro	1	Rs.82.17

INFORMATION DETAILS

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

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	6
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		48

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.