MIRA INFORM REPORT

Report Date :

22.09.2014

IDENTIFICATION DETAILS

Name :	GOOD LUCK STEEL TUBES LIMITED GOODLUCK ENGINEERING COMPANY A UNIT OF GOOD LUCK STEEL TUBES LIMITED
Registered Office :	5/102, Sikka Complex, Community Center,  Preet Vihar, Vikas Marg, New 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. 42.013 Millions
CIN No.: [Company Identification No.]	L74899DL1986PLC050910
TIN No.:	09589103236 - UP
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 :	The company is engaged in 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 :	600 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are fair. Business is active. Payment terms are reported as usually correct. The company can be considered for business dealings 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

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	Long term fund based = BBB
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	January, 2014

Rating Agency Name	ICRA
Rating	Short term loans = A3+
Rating Explanation	Moderate degree of safety and very high 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 PARTED BY

Name :	Mr. Sumit
Designation :	Accountant
Contact No.:	91-120-4196701
Date :	18.09.2014

LOCATIONS

Registered Office :	5/102, Sikka Complex, Community Center,  Preet Vihar, Vikas Marg, New Delhi - 110092, India
Tel. No.:	91-11-22214254
Fax No.:	91-11-22214254
E-Mail :	goodluck@goodlucksteel.com cs@goodlucksteel.com
Website :	http://www.goodlucksteel.com
Administrative Office:	IInd Floor, 166-167, Goodluck House, Nehru Nagar, Ambedkar Road, Ghaziabad - 201001, Uttar Pradesh, India
Tel. No.:	91-120- 4196600, 4196700 (200 Lines)
Fax No.:	91-120- 4196666, 4196777
Factory 1:	Khasra No. 2839, Gram Dhoom Manikpur,  G.T. Road , Gautam Budh Nagar, Dadri, G B Nagar - 203207, Uttar Pradesh, India
Tel. No.:	91-0120-2666896
Factory 2 :	Located At : Goodluck Steel Tubes Limited, Bulandshahr, Uttar Pradesh, India Goodluck Industries, Bulandshahr, Uttar Pradesh, India
Branches :	Located At : · 3-13/105/2/F Surya Nagar Colony Mallapur Hyderabad · Shop No-408 Ashiana Tower Exhibition Road Patna (Bihar) · Plot No-3/356 Irc Vill-Nayapalli Bhubneshwar (Orissa) · Plot No-17 Phirni Road Mundka Delhi · F-207a Phase-Vii Focal Point Ludhiana · Plot No-69b Hsidc Sec-31 Indl Area Faridabad · Plot No 7a Sector 2 Parwanoo Tehsil Kasuli Distt Solan Himachal Pradesh · Village Gagreat Bharwain Road Distt Una Himachal Pradesh

DIRECTORS

AS ON 30.09.2013

Name :

Mr. Mahesh Chandra Garg

Designation :

Whole-time director

Address :

R-4/52, Rajnagar, Ghaziabad, 201001, Uttar Pradesh, India

Date of Appointment :

01.10.2012

PAN No.:

ACKPG4173A

DIN No. :

00292437

Other Directorship :

S.No.	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
1	GOOD LUCK STEEL TUBES LIMITED	Whole-time director	01/10/2012	06/11/1986	-
2	GOODLUCK INFRAPOWER PRIVATE LIMITED	Director	01/01/2010	01/01/2010	14/06/2012
3	MASTERJI METALLOYS PRIAVATE LIMITED	Additional director	01/02/2012	01/02/2012	06/09/2012
4	PVGMB PETROCHEM PRIVATE LIMITED	Director	30/09/2013	10/12/2012	-

Name :

Mr. Ramesh Chandra Garg

Designation :

Whole-time director

Address :

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

PAN No.:

ACCPG9485D

Date of Appointment :

01.10.2012

DIN No. :

00298129

Other Directorship :

S.No.	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
1	GOOD LUCK STEEL TUBES LIMITED	Whole-time director	01/10/2012	12/09/1988	-	Active
2	VIDISHA EXPORTS PRIVATE LIMITED	Director	29/04/2005	29/04/2005	-	Converted to LLP and dissolved
3	GOODLUCK INFRAPOWER PRIVATE LIMITED	Director	01/01/2010	01/01/2010	14/06/2012	Active
4	MASTERJI METALLOYS PRIAVATE LIMITED	Additional director	01/02/2012	01/02/2012	-	Active
5	VIDISHA EXPORTS LLP	Designated Partner	04/10/2013	04/10/2013	-	Active

Name :

Mr. Anurag Agarwal

Designation :

Director

Address :

Om Kunj, Chiranji Colony, Dadri, 203207, Uttar Pradesh, India

Date of Appointment :

01584222

Date of Appointment :

19.12.2006

Name :

Mr. Vijender Kumar Tyagi

Designation :

Director

Address :

K-36, Hig, Niti Nagar, Sector-23, Ghaziabad, 201001, Uttar Pradesh, India

Date of Appointment :

19.12.2006

DIN No. :

01584278

Name :

Mr. Rahul goel

Designation :

Director

Address :

KE 93, Kavi Nagar, Ghaziabad, 201001, Uttar Pradesh, India

Date of Appointment :

19.12.2006

DIN No. :

02067212

Name :

Mr. Nitin Garg

Designation :

Whole-time director

Address :

KF-7, Kavi Nagar, Ghaziabad, 201001, Uttar Pradesh, India

DIN No. :

02693146

Date of Appointment :

21.09.2012

Other Directorship :

S.No.	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
1	GOODLUCK ISPAT AND ALLOYS PRIVATE LIMITED	Additional director	01/05/2012	01/05/2012	-	Active
2	SHRI JEE HOUSING (PVT) LTD	Additional director	01/05/2012	01/05/2012	-	Active
3	GOODLUCK INFRAPOWER PRIVATE LIMITED	Director appointed in casual vacancy	01/05/2012	01/05/2012	-	Active
4	GOOD LUCK STEEL TUBES LIMITED	Whole-time director	21/09/2012	01/05/2012	-	Active

KEY EXECUTIVES

Name :	Mr. Sanjay Bansal
Designation :	CFO
Address :	Raison Armor Homes, Ahinsa Khand II, Indrapuram, Ghaziabad, 201014, Uttar Pradesh, India
Name :	Mr. Abhishek Agrawal
Designation :	Secretary
Address :	66B, Dayanand Block, Shakarpur, Delhi, 110092, India
PAN No.:	AIQPA6773J

Name :	Mr. Sumit
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2013

Shareholders files are not available

AS ON 30.05.2014

Names of Allottee	No. of Shares
Venus Insec Private Limited, India	1085000
Total	1085000

BUSINESS DETAILS

Line of Business :	The company is engaged in 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.
Products :	· Forged Flanges · Gear Rings · Blind and Tube Sheets · Gear Shanks · Forged Shafts
Exports :
Products :	Coils , towers, hollow sections, coils, pipes
Imports :
Products :	Coils , towers, hollow sections, coils, pipes
Terms :
Selling :	L/C, Cash and Credit (30 days)
Purchasing :	L/C, Cash and Credit (30 days)

GENERAL INFORMATION

Customers :

Retailers and others

No. of Employees :

600 (Approximately)

Bankers :

· Axis Bank Limited, 2nd Floor, Statesman House, 148, Barakhamba Road, New Delhi - 110001, India

· State Bank of India, Commercial Branch, M-47, Connaught Circus, New Delhi - 110001, India

· Ing Vysya Bank Limited, Narian Manzil, Ground Floor, Shop No. G1 To G5, 1^st Floor, Shop No.1001 To 1007,Barakhamba Road,, New Delhi - 110001, India

Facilities :

SECURED LOANS	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG TERM BORROWINGS
Rupee term loans from banks	323.359	208.604
Foreign currency term loans from banks	0.000	60.000
SHORT TERM BORROWINGS
Working capital loans from banks	2190.818	1856.840
Total	2514.177	2125.444

NOTE :

LONG TERM BORROWINGS

Term loan are secured by way of first charge on fixed assets of the Company located at A45, A42 and A51 Industrial Area, Sikandrabad, District Bulandshahr and Plot No. 2839 Dhoom Manikpur, Dadri. Term loan are further secured by way of second charge on entire current assets of the Company , both present and future and personal guarantee of the directors of the Company and their relatives.

SHORT TERM BORROWINGS

Working capital limits comprising of cash credit limits/exports credit limits/bills discounted are secured by first charge on entire current assets of the Company including stocks of raw-materials, work-in-progress, stock lying in godown and ports, finished goods and book debts both present and future. Working capital limits are further secured by way of second charge on entire fixed assets of the Company , equitable mortgage of two immovable properties belonging to the directors of the Company and their relatives , situated at Plot No. II F 166 and II F 167 , Nehru Nagar , Ambedkar Road , Ghaziabad and personal guarantee of the directors of the Company and their relatives.

Banking Relations :
Auditors :
Name :	Sanjeev Anand and Associates Chartered Accountants
Address :	77, Navyug Market, Ghaziabad, Uttar Pradesh, India
PAN No.:	AAPFS7604B
Associate :	Masterji Metalloys Priavate Limited
Relatives of Key Management personnel :	· Goodluck Infrapower Private Limited · Hindon Carring Corporation Private Limited · R A Garments LLP · Shri Jee Housing (Private) Limited

CAPITAL STRUCTURE

AS ON 30.09.2013

Authorised Capital : Rs. 100.000 Millions

Issued, Subscribed & Paid-up Capital : Rs. 42.013 Millions

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
5,00,00,000	Equity Shares	Rs.2/- each	Rs. 100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1,87,21,250	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	NA
(b) Reserves & Surplus	1150.532	940.698	NA
(c) Money received against share warrants	0.000	0.000	NA
(2) Share Application money pending allotment	0.000	0.000	NA
Total Shareholders’ Funds (1) + (2)	1187.975	978.141	NA
(3) Non-Current Liabilities
(a) long-term borrowings	433.572	418.412	NA
(b) Deferred tax liabilities (Net)	118.586	82.806	NA
(c) Other long term liabilities	0.000	0.000	NA
(d) long-term provisions	6.046	3.887	NA
Total Non-current Liabilities (3)	558.204	505.105	NA
(4) Current Liabilities
(a) Short term borrowings	2190.818	1856.840	NA
(b) Trade payables	413.356	187.269	NA
(c) Other current liabilities	259.941	174.589	NA
(d) Short-term provisions	83.084	95.856	NA
Total Current Liabilities (4)	2947.199	2314.554	NA
TOTAL	4693.378	3797.800	NA
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1165.897	799.015	NA
(ii) Intangible Assets	0.000	0.000	NA
(iii) Capital work-in-progress	2.272	167.963	NA
(iv) Intangible assets under development	0.000	0.000	NA
(b) Non-current Investments	21.461	0.000	NA
(c) Deferred tax assets (net)	0.000	0.000	NA
(d) Long-term Loan and Advances	69.660	87.431	NA
(e) Other Non-current assets	0.000	0.000	NA
Total Non-Current Assets	1259.290	1054.409	NA
(2) Current assets
(a) Current investments	0.000	0.000	NA
(b) Inventories	1155.044	1024.516	NA
(c) Trade receivables	1831.768	1315.757	NA
(d) Cash and cash equivalents	65.435	56.904	NA
(e) Short-term loans and advances	381.841	346.214	NA
(f) Other current assets	0.000	0.000	NA
Total Current Assets	3434.088	2743.391	NA
TOTAL	4693.378	3797.800	NA

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2013	31.03.2012	31.03.2011
	SALES
	Revenue from operations	9532.435	6790.480	742.560 [Approximately]
	Other Income	241.202	144.361	NA
	TOTAL (A)	9773.637	6934.841	NA
Less	EXPENSES
	Cost of Materials Consumed	7256.804	5398.826
	Purchases of Stock-in-Trade	295.580	3.201
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(138.162)	(129.897)
	Employees benefits expense	288.111	226.154
	Other expenditure	1328.689	905.465
	Exceptional items	(1.551)	5.949
	TOTAL (B)	9029.471	6409.698
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	744.166	525.143
				NA
Less	FINANCIAL EXPENSES (D)	344.088	192.125
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	400.078	333.018
Less/ Add	DEPRECIATION/ AMORTISATION (F)	70.552	52.143
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	329.526	280.875
Less	TAX (H)	110.102	79.751
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)	219.424	201.124
Less	APPROPRIATIONS
	Transfer to General Reserve	40.000	40.000	NA
	Dividend	7.500	7.500	NA
	Tax on Dividend	1.200	1.200	NA
	Total	48.700	48.700	NA
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	3525.019	1834.265	NA
	TOTAL EARNINGS	3525.019	1834.265	NA
	IMPORTS
	Raw Materials	0.000	4.147	NA
	Components and Stores parts	0.387	0.083	NA
	Capital Goods	16.129	1.754	NA
	TOTAL IMPORTS	16.516	5.984	NA
	Earnings / (Loss) Per Share (Rs.)	11.72	10.74	NA

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	2.25	2.90	NA
Net Profit Margin (PBT/Sales)	(%)	3.46	4.14	NA
Return on Total Assets (PBT/Total Assets}	(%)	7.06	7.74	NA
Return on Investment (ROI) (PBT/Networth)		0.28	0.29	NA
Debt Equity Ratio (Total Debt /Networth)		2.21	2.33	NA
Current Ratio (Current Asset/Current Liability)		1.17	1.19	NA

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)
Share Capital	37.443	37.443
Reserves & Surplus	940.698	1150.532
Net worth	978.141	1187.975
long-term borrowings	418.412	433.572
Short term borrowings	1856.840	2190.818
Total borrowings	2275.252	2624.390
Debt/Equity ratio	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)
Revenue from operations	742.560 [Approximately]	6790.480	9532.435
		814.469	40.379

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)
Revenue from operations	6790.480	9532.435
Profit/(Loss) After Tax	201.124	219.424
	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	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last two years	Yes
13]	Reasons for variation <> 20%	----
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	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	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN 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

VIEW INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10450129	03/03/2014 *	650,000,000.00	AXIS BANK LIMITED	2ND FLOOR, STATESMAN HOUSE, 148, BARAKHAMBA ROAD,  NEW DELHI, DELHI - 110001, INDIA	C00624668
2	10337940	06/08/2012 *	1,275,400,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, M-47, CONNAUGHT CIRCUS, NEW DE  LHI, DELHI - 110001, INDIA	B56656705
3	10332640	24/08/2012 *	665,000,000.00	ING VYSYA BANK LIMITED	NARIAN MANZIL,GROUND FLOOR,SHOP NO. G1 TO G5,, I  FLOOR,SHOP NO.1001 TO 1007,BARAKHAMBA ROAD,, NEW D  ELHI, DELHI - 110001, INDIA	B58175225
4	10305178	04/09/2014 *	220,000,000.00	AXIS BANK LTD.	2ND FLOOR, STATESMAN HOUSE, 148, BARAKHAMBA ROAD,  NEW DELHI, DELHI - 110001, INDIA	C20376075
5	10305180	04/09/2014 *	272,800,000.00	AXIS BANK LTD.	2ND FLOOR, STATESMAN HOUSE, 148, BARAKHAMBA ROAD,  NEW DELHI, DELHI - 110001, INDIA	C20378691
6	10282842	04/09/2014 *	207,800,000.00	AXIS BANK LTD.	2ND FLOOR, STATESMAN HOUSE, 148, BARAKHAMBA ROAD,  NEW DELHI, DELHI - 110001, INDIA	C20383220
7	10234980	28/04/2014 *	2,943,000,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH M-47 CONNAUGHT CIRCUS, NEW DELH  I, NEW DELHI, DELHI - 110001, INDIA	C04438016
8	80001366	26/02/2013 *	2,776,500,000.00	ING VYSYA BANK LIMITED	30 & 31NAVYUG MARKET,, P.B.NO.75,, GHAZIABAD, UTT  AR PRADESH - 201001, INDIA	B72569684

* Date of charge modification

UNSECURED LOANS

PARTICULAR	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG TERM BORROWINGS
Intercorporate borrowings	17.900	32.500
Loans and advances from others	92.313	117.308
Total	110.213	149.808

COMPANY OVERVIEW

Good Luck Steel Tubes Limited 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,S tainless / Mild / Alloy steel forgings and flanges, Bright Bars, ERW Tube and CDW Tubes, etc.

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 that 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.

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 a growth of around 95.90 % over the last FY's performance, which constitute around 37% of the total turnover for the FY 2012-13. The company has made a whopping jump in it's over all performance and its profit before interest and taxes has reached to Rs. 742.600 Millions, in comparison of Rs. 531.000 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 countering the raising 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.

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

· Buildings

· Plant and equipment

· Furniture and fixtures

· Vehicles

· Office equipment

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 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.60.81
UK Pound	1	Rs.100.06
Euro	1	Rs.78.47

INFORMATION DETAILS

Analysis Done by :	SUB
Report Prepared by :	SNT

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	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		47

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.