MIRA INFORM REPORT

 

 

Report Date :

05.06.2014

 

IDENTIFICATION DETAILS

 

Name :

SAAKHA STEEL INDUSTRIES PVT. LTD.

 

 

Registered Office :

Saakha House, Post Box: 15, 159/15, Aditi Marg, Tinkune, Kathmandu

 

 

Country :

Nepal

 

 

Financials (as on) :

15.07.2013

 

 

Date of Incorporation :

15.10.1995

 

 

Com. Reg. No.:

6249

 

 

Legal Form :

Pvt. Ltd. Limited Company

 

 

Line of Business :

Manufacturer and Importer of Tor Steel and TMT, Steel Rebars, Torkary, Binding Wires

 

 

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 : 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

:

SAAKHA STEEL INDUSTRIES PVT. LTD.

Correct Name of Company

:

SAAKHA STEEL INDUSTRIES PVT. LTD.

Registered Office

:

Address
Saakha House

Post Box: 15

159/15, Aditi Marg, Tinkune, Kathmandu, Nepal

Email Id

:

E-mail: info@saakhagroup.com 

Email: steel@saakhagroup.com

Factory

:

Simara, Bara
Phone no: 053-520322, 620502
fax no: 053-520509 

Telephone No.

:

4111598, 4111797, 4111983

Fax No.

:

977-1-4111904

Industry

:

Steel

Nature of Activity

:

Manufacturer and Importer of Tor Steel and TMT, Steel Rebars, Torkary, Binding Wires

PAN No.

:

300021323

 

Official Company Data

 

Legal Form

:

Nepal Pvt. Ltd. Limited Company
Corporate Identity Number (CIN)

:

6249

ROC Code 

:

Kathmandu

Registration Date

:

15.10.1995
Issuing Authority

:

Registrar of Companies (Nepal)
Authorised Capital

:

Rs. 5,000,000.00
Paid-up Capital

:
Rs. 2,616,680.00
Business Activity / Product

Description

:

SAAKHA STEEL Company was formed in 1995 and on the same year Commercial production commenced with the company becoming wholly owned of SAAKHA GROUP.

 

Today, SAAKHA STEEL is widely recognized as one of the leader in the steel industry in Nepal, extending its pioneering commitment from factory site located in the heart of Simara Industrial Belt, Birjung Nepal.

Inspired to meet the growing demand for steel in Nepal as well as the region in general, SAAKHA STEEL has embarked upon a series of initiatives aimed at increasing its production capacity. The ongoing modernization and technically advanced expansion projects are designed to produce world class TMT products, which will further enhance the company presence in the steel production along with our current TOR STEEL production.


Today the plant with its offices occupies an area of 1400,000 sq. feet, adjacent to which is a further 72,000 sq. feet plot reserved for future developments. The total employee-base of over 500 and the mill runs on a 2-shift system.

Auditor

:

Girimire & Co., Kathmandu

Bankers

:

Bank of Kathmandu, Nepal

 

Nepal Grindlays Bank Ltd., Kathmandu, Nepal.

 

 

Board of Directors

 

Director                        :           Mr. Kiran Prakash Saakha

Managing Director         :           Mr. Tej Prakash Saakha

Director                        :           Mr. Jyoti Prakash Saaka

Director :                      :           Mr. Prabhat Prakash Saakha

 

 

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, 2014

 

 

Performance of Company

                                                                                                  (Amount in Nu Mln.)
Particulars
July15, 2013
July15, 2012
Total Income
95.40
73.52
Total Expenditure
92.22
69.62

Profit before Taxation
187.62
143.140

Less : Provision for Tax
1.11
1.04

Profit after Taxation
376.35
287.32

 

 

Balance Sheet

                                                                                    (Amount in Nu Mln.)

Particular
July15, 2013
July15, 2012

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

1.71

1.12

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

51.48

52.3

Miscellaneous Expenditure

0.04

0.04

Total Assets

103

104.640

 

 

Key Financial Ratio

 

Particulars
July15, 2013
July15, 2012

PAT / Total Income (%)

                       2.17

                     3.89

Net Profit Margin

(PBT/ Total Income) (%)

3.33

5.30

Return on Total Assets

(PBT/Total Assets} (%)

7.13

11.32

Return on Investment (ROI)

(PBT/Net worth)

0.20

0.98

Debt Equity Ratio

(Total Liability/Net worth)

1.76

7.63

Current Ratio

(Current Asset/Current Liability)

                       1.70

                     1.29

 

 

Imports

 

 

Products :

Raw Materials

Countries :
  • India

 

 

 

 

Terms

 

 

Selling :

Cash, Credit

 

 

Purchasing :

Cash, Credit

 

Information parted by

 

Name :                         Mr. Mithilesh Jha 

Designation :                Accountant

Contact No.:                 000 977 – 1- 4111598

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs. 59.33

UK Pound

1

Rs. 99.18

Euro

1

Rs. 80.76

 

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

DPT

 

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.