MIRA INFORM REPORT

 

 

Report Date :

05.06.2014

 

IDENTIFICATION DETAILS

 

Name :

HAMA IRON AND STEEL INDUSTRIES PVT. LTD.

 

 

Registered Office :

P.O Box 4667,Tripureshwor, Kathmandu

 

 

Country :

Nepal 

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

13.12.1988

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Manufacturer of HAMA SG Re-Bar, Nails, Annealed Binding Wires, HB Wires & Wire Rods

 

 

No of Employees :

500 (Approximately)

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

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 – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Nepal

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 

 

NepaL ECONOMIC OVERVIEW

 

Nepal is among the poorest and least developed countries in the world, with about one-quarter of its population living below the poverty line. Nepal is heavily dependent on remittances, which amount to as much as 22-25% of GDP. Agriculture is the mainstay of the economy, providing a livelihood for more than 70% of the population and accounting for a little over 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 commercially feasible capacity, but political uncertainty and a difficult business climate have hampered foreign investment. Additional challenges to Nepal's growth include its landlocked geographic location, persistent power shortages, underdeveloped transportation infrastructure, civil strife and labor unrest, and its susceptibility to natural disaster. The lack of political consensus in the past several years has delayed national budgets and prevented much-needed economic reform, although the government passed a full budget in 2013.

 

Source : CIA

 

 

Company Identification Details

 

Enquired Name

:

HAMA IRON AND STEEL INDUSTRIES PVT. LTD.

Registered Office of Company

:

HAMA IRON AND STEEL INDUSTRIES PVT. LTD.

Registered Office

:

P.O Box: 4667
Tripureshwor, Kathmandu, Nepal


Tel: 977 1 4261716, 4261686, 4253316
Fax: 977 1 4261686

 

E-Mail : hamasteel@info.com.np

Web:   www.hamasteel.com

 

 

 

Factory

:

Pipara, Bara, Narayani, Nepal

 

Phone: 520088, 520119

Fax: 977-53-520099

 

 

 

Industry

 

Manufacturer of HAMA SG Re-Bar, Nails, Annealed Binding Wires, HB Wires & Wire Rods

 

 

 

Nature of Activity

:

Hama Steel was established in the year BS 2046/1988 to meet the growing need for construction-grade steel and iron products in Nepal. Making its mark as one of the best in the industry by maintaining excellent standards, Hama steel received the hallmark of Nepal Standard (NS) mark in BS 2052/1995.

To cater to the growing market, Hama Steel upgraded production capacity in the year BS 2054/1997. Hama Group soon entered into a new venture of producing wires by establishing Hama Wires in the year BS 2055/1998.

 

They are a winning team driven by the desire to be the most efficient rolling mill and contribute to the nation’s infrastructure development.

 

Hama Iron and Steel has a strict policy of not using Low Quality Billets (Raw Material). We use only the highest quality Prime Quality Billets. Our products meet the highest quality standards and have been used by corporate houses, embassies, government agencies and the common man.
 
We continue to improve our processes and ways of doing things.  This has resulted in us improving our final quality of re-bars.

Last year we introduced HAMA SG.

 

This improved the bonding strength making it 10x better than before. The ribs are cut by CNC machines and have uniform Rib height and distance. The rib design follows the ASTM and Din 488 standards

 

This has also resulted in more uniform variance in mass/meter of the re-bar.

 

This year, they have decided to address the issue of Weight tags.

Hama Guarantee Tags are state-of-the-art, and are tamper-proof. The tags carry details like weight, number of rods in the bundle, date of manufacture and date of dispatch. These details cannot be erased, modified or tampered with in any other way. Their guarantee tag therefore aims to insure that the customer has the exact weight of the steel they buy.

 

 

Official Company Data

 

Legal Form

:

Pvt. Limited Company
Corporate Identity Number (CIN)

:

3465
ROC Code 

:

Kathmandu

Registration Date

:

13.12.1988
Issuing Authority

:

Registrar of Companies (ROC)
Permanent Account No. (PAN)

:

300020021
Authorised Capital

:

50,000,000/- (5,000,000 Equity Shares of Rs.10/- each)
Paid-up Capital

:
45,550,000/- (4555000 of Rs.10/- each)
Employee

:
500 (Approximately)

Auditor

:

Subhash & Company

Bankers

:

·         Bank of Kathmandu, Nepal

·         Standard Chartered Bank

·         Nepal Bank Ltd., Kathmandu, Nepal
 

 

 
Trading Terms

:

Purchasing Terms: Cash, Credit

Sales Terms : Cash, Credit

 

Board of Directors

 

·         Bal Krishna Shrestha, Chairman

·         Rajan Krishna Shrestha

 

Financial data

 

Authorised Capital :50,000,000/- (5,000,000 Equity Shares of Rs.10/- each)

Paidup : 45,550,000/- (4555000 of Rs.10/- each)

BALANCE SHEET AS AT 31.03.2013

Liabilities

Amount (Rs.)

 

Assets

Amount (Rs.)

 

 

 

 

 

Paid up Capital

45,550,000

 

Fixed Assets

12,112,008

Reserve & Surplus

29,279,253

 

Investments

41,260,000

Loan Funds

32,423,433

 

Inventories

92,148,571

Deffered Tax

974,516

 

Sundry Debtors

34,354,352

Current Liabilities & Provs.

93,949,463

 

Cash & Bank

12,786,597

 

 

 

Loans & Advances

9,525,137

 

 

 

 

 

Total

2,02,186,665

 

 

2,02,186,665

 

 

 

 

 

 

Rs.

 

Sales

441,510,359

 

Profit Before Tax

5,861,892

 

Profit After Tax

3,811,892

 

 

 

 

 

BALANCE SHEET AS AT 31.03.2012

Liabilities

Amount (Rs.)

 

Assets

Amount (Rs.)

 

 

 

 

 

Paid up Capital

45,550,000

 

Fixed Assets

9,457,117

Reserve & Surplus

26,081,290

 

Investments

41,403,500

Loan Funds

27,010,347

 

Inventories

73,754,839

Deffered Tax

850,895

 

Sundry Debtors

24,044,290

Current Liabilities & Prov.

58,242,537

 

Cash & Bank

9,047,823

 

 

 

Miscellaneous Exps.

27,500

 

 

 

Loans & Advances

 

 

 

 

 

 

Total

157,735,069

 

Total

157,735,069

 

 

 

 

 

Sales

403,950,274

 

Profit Before Tax

4,480,250

 

Profit After Tax

3,380,250

 

 

 

 

 

 

 

 

Information parted by

 

Name :                         Mr. Robin Shrestha

Designation :                Marketing Manager

Contact No.:                 000 977 – 1- 4261716

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.59.34

UK Pound

1

Rs.99.18

Euro

1

Rs.80.76

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

MNL

 

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.