MIRA INFORM REPORT

 

 

Report Date :

29.12.2012

 

IDENTIFICATION DETAILS

 

Name :

LAXMI STEELS PVT. LTD.

 

 

Registered Office :

3rd Floor, Neupane Tower, Tinkune (Near Kantipur Hospital), Kathmandu

 

 

Country :

Nepal

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

2009

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Manufactory of TMT Steel Rod

 

 

No. of Employees :

30

 

 

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: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

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 name

 

LAXMI  STEELS  Pvt. Ltd.

 

 

Company address

 

3rd Floor, Neupane Tower, Tinkune (Near Kantipur Hospital)
Kathmandu, Nepal
Tel.: 01-4111567, 4111571, 4111611
Email: laxmisteels@wlink.com.np

Factory Office:
Laxmi Road, Khaireni, Sunwal VDC-7, Nawalparasi
Tel.: 071-620433/620436/620445/620446

 

 

History

 

It is a private limited company incorporated at Kathmandu under Govt.

Act No.55484 of 05-05-2005

 

PAN No.           :           303308397

 

 

Directors

 

Mr. Bishnu Pd. Neupane

Mr. S. M. Jatia


R.K. Neupane

S. K. Jatia



Bankers     

 

1.       Nepal Standard Chattered Bank., Kathmandu (Nepal)

2.       Nepal Grindlays Bank, Kathmandu (Nepal)

3.       Nepal Investment Bank, Kathmandu (Nepal)

 

 

 

Shareholding Pattern

 

Sourabh Group hold all shares.

 

Auditors    

 

N.Amartya & Co

Pulchuwk

Lalitpur,Nepal.

 

Business:        

 

Thousands of years of hard work, innovation, intelligence and precision has gone into the making of STEELS, the super strong carbonized and alloyed form of iron without which modern life is unimaginable. From skyscrapers and planes to syringes and forks, steel is today an essential part of our everyday life.

Steel bars can be made from scrap billets or pure prime billets. While steel made from pure prime billets is purer, stronger, more flexible and more durable, that made from scrap lacks in strength and is easily damaged, leading to poor quality construction. Most normal steel bars being produced in Nepal use scrap billets. However, Laxmi Steels carries a vision of total purity for total quality and strength. We have vowed to never use scrap steel in our products.

We import PURE PRIME BILLETS from the prestigious SAIL & TATA companies of India to manufacture “Laxmi Steels Thermex TMT Bars” guaranteed to be the No. 1 quality steel in Nepal.

 

Capitalization Structure:

 

Authorized Share Capital

:

Rs. 5,000,000 divided into 500,000 Equity Shares of Rs. 10/- each.

Issued, Subscribed & Paid Up Capital

:

Rs. 2,616,680 divided into 261,668 Equity Shares of Rs. 10/- each.

Face Value

:

Rs. 10/- each.

Last AGM

:

July 15, 2010

 

Financial:          Balance Sheet

(Amount in Rupees Mln.)

Particular

March 31, 2011

March 31, 2010

Sources of Funds

Share Capital

2.62

0.59

Reserves & Surplus

13.56

3.40

Unsecured Loans

2.67

4.30

Deferred Tax Liability (Net)

0.01

0.01

Total Liabilities

18.86

8.30

Application Of Funds

Gross Block

1.28

0.88

Less:  Depreciation

0.43

0.24

Net Block

0.85

0.64

Current Assets, Loan and Advances

Inventories

30.24

22.01

Sundry Debtors

10.84

9.63

Cash And Bank Balances

0.14

0.82

Loans and Advances

2.49

1.31

 

43.71

33.77

Less : Current Liabilities & Provisions

Current Liabilities

23.56

25.09

Provisions

2.18

1.06

 

25.74

26.15

Net Current Assets

17.97

7.62

Miscellaneous Expenditure

0.04

0.04

Total Assets

18.86

8.30

 

Remarks :        

 

Payments are reported to be correct and regular as per commitments.  Trade relations are fair. Consider good for normal business Engagement as usual trade terms & condition.

 

 

Information parting from (General details)

 

Name

 

Mr. Manoj Sharma

Designation

 

Account Dept

Tel No.:

 

00977-1-4111571

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.84

UK Pound

1

Rs.88.39

Euro

1

Rs.72.62

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

Calling

PJA

 

 

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%)

 

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.