MIRA INFORM REPORT

Report Date :

05.06.2014

IDENTIFICATION DETAILS

Name :	PREMIER WIRES PVT.LTD.

Registered Office :	GPO # 133 Janakipath, Biratnagar-6,

Country :	Nepal

Financials (as on) :	15.07.2013

Date of Incorporation :	03.11.1999

Legal Form :	Private Limited Company

Line of Business :	Manufacturer of wires and cables

No. of Employees	300

RATING & COMMENTS

MIRA’s Rating :

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

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 name and address

Correct Name of Company	:	PREMIER WIRES PVT.LTD.
Registered Office	:	GPO # 133 Janakipath, Biratnagar-6, Nepal. Phone: +977-21-524075/523127, 532810/812 Fax: +977-21-526903/533643 Email premier@shardagroup.com / rumpumbrt@wlink.com.np
Factory Office		Nimwa, Biratnagar, Nepal
PAN No.	:	300212789
Industry	:	wires and cables
Nature of Activity	:	Manufacturer of wires and cables

Official Company Data

Legal Form	:	Private Limited Company
Corporate Identity Number (CIN)	:	12167
ROC Code	:	Kathmandu
Registration Date	:	03.11.1999
Issuing Authority	:	Registrar of Companies (ROC)
Authorised Capital	:	Rs. 80 Millons
Paid-up Capital	:	Rs. 42.40 Millons
Employee	:	300
Business Activity / Product Description	:	Premier Wires Pvt.Ltd. (PWP) has been manufacturing the largest and the most versatile range of wires and cables in the country. The unit, situated at Duhabi,Sunsari, started with the manufacturing of G.I. wires in the year 2000 and now has a production capacity of 21000 MT per annum. Wire drawing is the largest section of this unit. There are different sub-sections of wire drawing for producing H.B. wires, Annealed wires, Aluminum wires, Copper wires, Stay wires, barbed wires, etc. Recently, PWP has expanded its production to include other products such as: ACSR and AAC conductors, house wiring cable, flexible cables, Telecom cables, Control cables, Auto cables, Power cables, Coaxial cables, ABC cables, M. S. Nails, Rivets and M S Nut-Bolts. The company has acquired the N. S. Standard and was the first ISO 9001 (2000 Edition) Company in Nepal. With its focus of supplying to large projects, the company caters primarily to the needs of government projects and international aid projects in Nepal. The company is also working towards further increasing its exports.
Auditor	:	AUDITORS B. R. Karki & Co., Kathmandu, Nepal
Bankers	:	Bank of Kathmandu, Nepal Standard Chartered Bank., Kathmandu, Nepal. Nepal Banijya Bank, Kathmandu, Nepal. Nepal Bank Ltd., Kathmandu, Nepal.
Exporter of		Wires and Cables, India
Importer of		Raw Materials in Malaysia, Korea, China and India

Board of Directors

S.R. Sharda (Chairman)	S.N. Sharda (Vice Chairman)	R.S. Sharda (Finance Director)	Pawan K. Sharda (Executive Director)

Sandeep K. Sharda (Director)	Pradeep K. Sharda (Director)	Amit Sharda (Director)	Samit Sharda (Director)	Gaurav Sharda (Director)	Sourav Sharda (Director)

Capitalization Structure

Authorized Share Capital	:	30,000,000/- (3,000,000./ Equity Shares of Rs.10/- each)
Issued, Subscribed & Paid Up Capital	:	Paidup : 15,672,000/- (14,672,00/- of Rs.10/- each)

Shareholding Pattern

All share hold by Sarada Group

Financial :
BALANCE SHEET AS AT 15.07.2013

Liabilities	Amount (Rs.)	Assets	Amount (Rs.)
Paid Up Capital	15,672,000	Fixed Assest	5,848,248
Secured Loan	28,822,789	Investments	7,731,472
Unsecured Loan	7,759,784	Inventories	31,123,761
		Cash & Bank	7,163,892
		Sundry Debtors	387,200



Total	52,254,573		52,254,573

	Rs.
Sales	32,257,249
Expenditure	4,600,725
Profit Before Tax	24,982
Profit After Tax	20,235

NOTE

INFORMATION IS PARTED BY

Name: Mr. Jagdish Narayan Rai

Dept : (Purchase department)

Tel. No.: +977-21-524075

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 :	NIS

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%)

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