MIRA INFORM REPORT

Report Date :

02.05.2014

IDENTIFICATION DETAILS

Name :	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) :	31.03.2013
Date of Incorporation :	06.11.1986
Com. Reg. No.:	55-050910
Capital Investment / Paid-up Capital :	Rs. 37.443 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 (49)

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

Maximum Credit Limit :	USD 4751000
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 – March 31, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
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

US investment bank Goldman Sachs  has upgraded its outlook on Indian markets as it expects positive impact of the election cycle.

India’s economy may grow 4.7 % in the current financial year, lower than the official estimate of 4.9 %, Fitch Rating said. The global rating agency expects the economy to pick up in the next two financial years.

Global ratings agency Standard & Poor said increasing focus by India Inc on lowering debt is likely to improve their credit profiles.

Singapore (1.1 million Indian tourists in 2012), Thailand (one million), the United Arab Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred holidays hotspots for Indians. The total figure is expected to increase to 1.93 million by 2017, according to the latest Eurmonitor international report.

There is a $29.34 bn outward foreign direct investment by domestic companies between April and January of 2013/14 which has seen some signs of recovery according to a Care Ratings report.

There are 264 number of new companies being set up every day on average during 2014. Most of them are registered in Mumbai. India had 1.38 million registered companies at the end of January, 2014.

Twitter like messaging service Weibo Corporation has filed to raise $ 500 million via a US initial public offering. Alibaba, which owns a stake in Weibo is expected to raise about $ 15 billion New York this year in the highest profile Internet IPO since Facebook’s in 2012.

Bharti Airtel has raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at a coupon rate of three per cent and maturing in 2020. This is the largest ever bond offering by an Indian company in Swiss Francs. Bharat Petroleum Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98 % coupon rate in February.

Indian Oil Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex at its almost complete Paradip refinery in Odhisha in three to four years. The company board is set to consider the setting up of a 700000 tonne per annum polypropylene plant at an estimated cost at Rs.3150 crore.

Global chief information officers at gathering in Bangalore in April to meet Indian startups at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in the making.

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 31-03-2012.

INFORMATION DECLINED BY

Name :	Mr. Deepak Sharma
Designation :	Deputy General Manager in Finance
Contact No.:	91-120-4196600
Date :	29.04.2014

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 31.12.2013

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of Total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	13428615	71.73
Sub Total	13428615	71.73
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	13428615	71.73
(B) Public Shareholding
(1) Institutions
Insurance Companies	835680	4.46
Sub Total	835680	4.46
(2) Non-Institutions
Bodies Corporate	796945	4.26
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	2961644	15.82
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	445232	2.38
Any Others (Specify)	253134	1.35
Clearing Members	33828	0.18
NRIs/OCBs	219306	1.17
Sub Total	4456955	23.81
Total Public shareholding (B)	5292635	28.27
Total (A)+(B)	18721250	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)	18721250	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]	As on 31.03.2012 [Rs. in Millions]
Long Term Borrowings
From State Bank of India	99.500	0.000
From Axis Bank Limited	223.859	268.604
Short Term Borrowings
Working Capital Loan From Banks	2190.818	1856.840
TOTAL	2514.177	2125.444

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 31.03.2013

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	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	37.443	37.443	37.443
(b) Reserves & Surplus	1150.532	940.698	749.104
(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)	1187.975	978.141	786.547
(3) Non-Current Liabilities
(a) long-term borrowings	433.572	418.412	125.845
(b) Deferred tax liabilities (Net)	118.586	82.806	66.326
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	6.046	3.887	2.981
Total Non-current Liabilities (3)	558.204	505.105	195.152
(4) Current Liabilities
(a) Short term borrowings	2190.818	1856.840	1384.084
(b) Trade payables	413.356	187.268	46.805
(c) Other current liabilities	259.941	174.590	184.663
(d) Short-term provisions	83.084	95.856	76.391
Total Current Liabilities (4)	2947.199	2314.554	1691.943
TOTAL	4693.378	3797.800	2673.642
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1165.897	799.016	632.660
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	2.272	167.962	5.083
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	21.461	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	69.660	87.431	34.750
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	1259.290	1054.409	672.493
(2) Current assets
(a) Current investments	0.000	0.000	0.515
(b) Inventories	1155.044	1024.516	670.276
(c) Trade receivables	1831.768	1315.757	951.644
(d) Cash and cash equivalents	65.435	56.904	88.696
(e) Short-term loans and advances	381.841	346.214	290.018
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	3434.088	2743.391	2001.149
TOTAL	4693.378	3797.800	2673.642

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	9532.435	6790.480	5608.190
		Other Income	241.202	144.361	121.984
		TOTAL (A)	9773.637	6934.841	5730.174
Less	EXPENSES
		Cost of Raw Materials Consumed	7256.804	5398.826	4416.454
		Purchase of Stock-in-Trade	295.580	3.201	5.940
		Employee Benefit Expenses	295.911	232.994	180.582
		Other Expenses	1320.889	898.625	738.854
		Prior Period Items	(1.551)	5.949	17.492
		Changes in Inventories of Finished Goods Stock-in-Process and Stock-in-Trade	(138.162)	(129.897)	(19.872)
		TOTAL (B)	9029.471	6409.698	5339.450
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		744.166	525.143	390.724
Less	FINANCIAL EXPENSES (D)		344.088	192.125	126.676
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		400.078	333.018	264.048
Less/ Add	DEPRECIATION/ AMORTISATION (F)		70.552	52.143	40.733
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		329.526	280.875	223.315
Less	TAX (H)		110.102	79.751	75.808
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		219.424	201.124	147.507
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		734.094	581.673	470.693
Less	APPROPRIATIONS
		Transfer to General Reserve	40.000	40.000	30.000
		Proposed Dividend	7.489	7.489	5.616
		Dividend Tax	1.273	1.215	0.911
	BALANCE CARRIED TO THE B/S		904.756	734.093	581.673
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Exports	3525.019	1834.265	1590.775
	IMPORTS
		Raw Materials	0.000	4.147	81.409
		Stores & Spares	0.387	0.083	0.355
		Capital Goods	16.129	1.754	1.002
	TOTAL IMPORTS		16.516	5.984	82.766
	Earnings / (Loss) Per Share (Rs.)		11.72	10.74	7.88

QUARTERLY RESULTS

PARTICULARS	30.06.2013	30.09.2013
Type	1^st Quarter	2^nd Quarter
Net Sales	2637.800	2476.000
Total Expenditure	2439.000	2278.700
PBIDT (Excl OI)	198.800	197.300
Other Income	01.900	01.600
Operating Profit	200.800	198.800
Interest	87.100	88.000
Exceptional Items	0.000	0.000
PBDT	113.700	110.900
Depreciation	17.700	18.300
Profit Before Tax	96.000	92.500
Tax	31.000	32.000
Provisions and contingencies	0.000	0.000
Profit After Tax	65.000	60.500
Extraordinary Items	0.000	0.000
Prior Period Expenses	(0.200)	0.000
Other Adjustments	0.000	0.000
Net Profit	64.800	60.500

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	2.25	2.90	2.57
Net Profit Margin (PBT/Sales)	(%)	3.45	4.14	3.98
Return on Total Assets (PBT/Total Assets}	(%)	7.05	7.74	8.37
Return on Investment (ROI) (PBT/Networth)		0.27	0.29	0.28
Debt Equity Ratio (Total Debt/Networth)		2.21	2.33	1.92
Current Ratio (Current Asset/Current Liability)		1.17	1.19	1.18

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	37.443	37.443	37.443
Reserves & Surplus	749.104	940.698	1150.532
Net worth	786.547	978.141	1187.975
long-term borrowings	125.845	418.412	433.572
Short term borrowings	1384.084	1856.840	2190.818
Total borrowings	1509.929	2275.252	2624.390
Debt/Equity ratio	1.920	2.326	2.209

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	5608.190	6790.480	9532.435
		21.081	40.379

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	5608.190	6790.480	9532.435
Profit	147.507	201.124	219.424
	2.63%	2.96%	2.30%

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]	As on 31.03.2012 [Rs. in Millions]
Long Term Borrowings
From Related Parties	92.313	117.308
From Body Corporate	17.900	32.500
TOTAL	110.213	149.808

COMPANY OVERVIEW:

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.

COMPANY'S PERFORMANCE:

In spite of sluggish demand and pricing pressure, with the crossing of Rs.10000.000 Millions as its gross turnover the company has achieved a mile stone. The total turnover of the company has increased by 41.35% over the last year figure of Rs.7420.000 Millions The Company is continued to perform outstanding in its international business also and has posted export turnover of Rs.3673.000 Millions which constitute around 37% of the total turnover for the FY 2012-13. The company has made a whopping jump in it's overall performance. Its profit before interest and taxes has reached to Rs. 672.000 Millions, in comparison of Rs.473.000 Millions for the year 2011-12. The book value of equity share at the end of the financial year 2012-13 has reached to Rs. 63.42 per share.

It is continuous endeavor of the management that keeps the Company growing at an enormous pace and in this direction, the management is planning to enter into some more value added products and to modernize and augment its existing manufacturing facility. Further, this year the Company has succeeded in entering into the agreement with the GAIL (India) limited for continuous supply of RLNG gas through pipe line for its two plants for the purpose of replacing its existing fuel arrangement for manufacturing process. This new arrangement will definitely helps the Company in counter the rising fuel bill and providing a clean environment to the society. Though, the current agreement is a short term agreement but the Company is hopeful that it will secure the uninterrupted supply of gas in future also.

MANAGEMENT DISCUSSION AND ANALYSIS:

INDUSTRY OVERVIEW:

Steel products are classified into four broad categories: flat steel products, long steel products, scrap and semi-finished products. Flat products include plates, hot-rolled strip and sheets, and cold-rolled strip and sheets. The long steel products are tubes, pipes, structure, wire rods, beams, forging products etc. The steel industry is an economic indicator, as it plays a critical role in infrastructure and overall economic development. However, despite its size, the steel industry remains relatively fragmented is highly cyclical and intensely competitive. After witnessing the sturdy growth for most of the initial phase in the last decade, the steel industry suffered a setback due to the recession in 2008 as consumers utilized existing inventories rather than buying new stocks. The industry witnessed a slight turnaround in late 2009 and continued to grow slowly thereafter. Demand for steel benefited from growth in the developing economies that helped counter the sluggishness in developed countries. Asia, particularly China, continued to be the principal growth driver. But, the demand for steel products, nonetheless, remained below pre-recession levels.

The automotive, construction and natural oil and gas markets have been the largest consumers of steel, consuming more than half of the total steel produced. In 2012-13, the continuing Euro-zone sovereign debt crisis, economic stagnation or slow growth in developed economies and a cooling of emerging market economies took a toll on these industries. Growth in the Chinese economy, which in recent years has been one of the main demand drivers for steel, slowed. These challenging economic conditions continued to hinder the steel industry in the year

2013. So far as the domestic steel industry is concerned, the year 2013 was not a good year for it. The Indian steel industry could not be escaped from the global slowdown impact and saw a subdued growth from the key consuming sectors. The limited availability of iron ore also affected the industry adversely. The growth in the steel industry remained muted in FY13, and somewhat lower than the 5.5% growth recorded in FY 12.

The domestic steel demand is likely to grow at a faster pace in comparison of world steel market and is expected to grow at a rate of 6.7% annually till 2016-17. While the demand for flat products in the domestic market is likely to be supported by the automobiles, at a timid pace, demand for long products will continue to increase on the back of modest growth in demand from the construction sector.

OUTLOOK:

In 2014, the steel industry will continue to face headwinds in the form of overcapacity and surge of imports. Global steel demand is expected to improve gradually in 2014 compared with 2013 levels. Growth in the United States will be supported by strong momentum in the auto sector and recovery in construction markets. Concerns surrounding China's growth and the European debt crisis remain overhangs on the sector's outlook.

Efforts of the Chinese government to rebalance its economy will contribute to the domestic and global steel demand. Although China is the dominant market in the steel sector, India is also increasing its presence, due to rise in its domestic steel demand. The rising middle class population along with increased urbanization will fuel steel demand in the future. But, overcapacity has been a perennial problem. Stiff competition from cheaper imports and from domestic producers with new or expanded facilities continues to result in a significant oversupply of steel compared to demand. However, selling prices will improve hand-in-hand with improved demand across most regions, due to higher raw material prices and an end to the destocking that was observed during last years. In addition to raw material prices, the sustainability of higher steel prices will continue to depend on an increase in sustainable real demand, and no further worsening of the Euro-zone debt crisis.

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.60.34
UK Pound	1	Rs.101.45
Euro	1	Rs.83.31

INFORMATION DETAILS

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

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	6
--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		49

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.