MIRA
INFORM REPORT

Report Date :

24.12.2012

IDENTIFICATION DETAILS

Name :

JAGDAMBA STEELS PVT LTD

Registered Office :

7th Floor, Gagdamba Tower, Tinkune, Kathmandu

Country :

Nepal

Financials (as on) :

March 2011

Date of Incorporation :

25.06.1965

Legal Form :

Nepal Private
Limited Company

Line of Business :

Manufacture of Billets,
Wire Rods, Sponge Iron

No. of Employees :

200

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal
commitments.

Satisfactory

Status :

Satisfactory

Payment Behaviour :

No Complaints

Litigation :

Clear

NOTES :

Any query related to this report can be made
on e-mail: [email-masked]
while quoting report number, name and date.

ECGC Country Risk Classification List – June 30th, 2012

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

Nepal

B1

B1

Risk Category

ECGC Classification

Insignificant

A1

Low

A2

Moderate

B1

High

B2

Very High

C1

Restricted

C2

Off-credit

D

NEPAL - ECONOMIC OVERVIEW

Nepal is among the poorest
and least developed countries in the world, with with about one-third of its
population living below the poverty line. Agriculture is the mainstay of the
economy, providing a livelihood for three-fourths of the population and
accounting for about one-third of GDP. Industrial activity mainly involves the
processing of agricultural products, including pulses, jute, sugarcane,
tobacco, and grain. Nepal has considerable scope for exploiting its potential
in hydropower, with an estimated 42,000 MW of feasible capacity, but political
instability hampers foreign investment. Additional challenges to Nepal's growth
include its landlocked geographic location, civil strife and labor unrest, and
its susceptibility to natural disaster.

Source
: CIA

Company Identification Details

Enquired Name

:

JAGDAMBA STEELS PVT LTD

Correct Name of
Company

:

JAGDAMBA STEELS PVT LTD

Registered
Office

:

7th
Floor, Gagdamba Tower, Tinkune, Kathmandu, Nepal

Telephone No.

:

+977-1-4227013

Fax No.

:

+977-1-4227004

Email Id

:

[email-masked].

Factory

:

Simara (Bara) Nepal

Industry

:

Steel Manufacturer

Nature of
Activity

:

Billets, Wire Rods, Sponge Iron

Official Company Data

Legal Form

:

Nepal Private Limited Company

Corporate Identity Number (CIN)

:

99044

ROC Code

:

Kathmandu

Registration Date

:

25.06.1965

Issuing Authority

:

Registrar of Companies (ROC)

Permanent Account No.
(PAN)

:

300020108

Authorised Capital

:

Rs. 80 Millons

Paid-up Capital

:

Rs. 42.40 Millons

Employee

:

200

Business Activity /
Product

Description

:

Manufacture of Billets, Wire
Rods, Sponge Iron

Auditor

:

AUDITORS

R. Shrestha
& Co., Kathmandu

Bankers

:

Nepal Grindlays Bank, Kathmandu

Himalayan Bank, Kathmandu

Directors :         1.         Mr.
Shanker Lal Agrawal

2.         Ms.
Lalita Agrawal

3.         Ms.
Sulochana Agrawal

4.         Mr.
Sulav Agrawal

Capitalization Structure

Authorized
Share Capital

:

Rs. 80 Millions Equity Shares of Rs. 10/- each.

Issued,
Subscribed & Paid Up Capital

:

Rs. 42.40 Millions Shares of Rs. 10/- each.

Face
Value

:

Rs. 10/- each.

Last
AGM

:

July15, 2011

Balance Sheet
(Rs. in millions) 2011

Share Capital

42.40

42.40

42.40

Reserves & Surplus

176.26

176.26

176.26

Net Worth (1)

218.66

218.66

218.66

Secured Loans (2)

1.12

1.84

3.31

Unsecured Loans (3)

0.00

0.00

1.06

Total Liabilities(1+2+3)

219.78

220.50

223.04

Fixed Assets

Gross Block

28.93

28.34

25.43

(-) Acc. Depreciation

9.96

9.23

8.09

Net Block (A)

18.97

19.10

17.35

Capital Work in Prgs. (B)

2.82

1.54

0.46

Investments (C)

14.04

20.10

22.20

Current Assets, Loans & Advs.

Inventories

1.11

2.14

3.52

Sundry Debtors

45.87

8.64

8.45

Cash And Bank

18.70

14.31

8.09

Loans And Advances

28.14

19.87

192.82

(i)

93.82

44.95

212.88

Current Liab. & Provs.

Current Liabilities

28.14

16.17

17.69

Provisions

32.19

19.36

12.16

(ii)

60.34

35.54

29.85

Net Curr. Assets (i - ii) (D)

33.48

9.42

183.03

Misc. Expenses (E)

150.48

170.35

0.00

Total Assets (A+B+C+D+E)

219.78

220.50

223.04

Profit &
Loss Accounts (Rs. in millions)

March - 2011

(12 months)

%

March - 2010

(12 months)

%

March - 2009

(12 months)

%

Sales

124.08

+0.96

96.11

+0.98

61.18

+0.99

Other Income

5.01

+0.04

2.15

+0.02

0.51

+0.01

Total Income

129.09

-

98.26

-

61.69

-

Raw Material Cost

45.13

+0.35

30.87

+0.31

17.57

+0.28

Excise

0.00

0.00

0.00

Other Expenses

46.41

+0.36

45.23

+0.46

26.64

+0.43

Operating Profit

32.54

+0.25

20.01

+0.20

16.97

+0.28

Interest Name

0.60

+0.00

0.51

+0.01

0.56

+0.01

Gross Profit

31.94

+0.25

19.50

+0.20

16.41

+0.27

Depreciation

1.62

+0.01

1.54

+0.02

1.42

+0.02

Profit Bef. Tax

35.33

+0.27

20.11

+0.20

15.50

+0.25

Tax

12.48

+0.10

7.20

+0.07

5.90

+0.10

Net Profit

22.85

+0.18

12.91

+0.13

9.60

+0.16

Other Non- Recurring Income

0.00

0.00

1.34

+.02

Reported Profit

22.85

+0.18

12.91

+0.13

10.94

+0.18

Equity Dividend

2.54

+0.02

2.54

+0.03

2.54

+0.04

FOREIGN EXCHANGE RATES

Currency

Unit

Indian Rupees

US Dollar

1

Rs.55.08

UK Pound

1

Rs.89.53

Euro

1

Rs.72.77

INFORMATION DETAILS

Report
Prepared by :

PRL

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

--

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%)