MIRA INFORM REPORT

Report Date :

17.05.2014

IDENTIFICATION DETAILS

Name :	JAGDAMBA STEELS PVT LTD
Registered Office :	7^th Floor, Gagdamba Tower, Tinkune, Kathmandu
Country :	Nepal
Financials (as on) :	March 2013
Date of Incorporation :	15.06.1993
Legal Form :	Nepal Private Limited Company
Line of Business :	Manufacture of Billets, Wire Rods, Sponge Iron
No. of Employees	225

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

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately 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	:	JAGDAMBA STEELS PVT LTD
Correct Name of Company	:	JAGDAMBA STEELS PVT LTD
Registered Office	:	7^th Floor, Gagdamba Tower, Tinkune, Kathmandu, Nepal
Email Id	:	jsteel@wlink.com.np.
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)	:	92943
ROC Code	:	Kathmandu
Registration Date	:	15.06.1993
Issuing Authority	:	Registrar of Companies (ROC)
Permanent Account No. (PAN)	:	300020108
Authorised Capital	:	Rs. 80 Millons
Paid-up Capital	:	Rs. 42.40 Millons
Employee	:	225
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

Balance Sheet (Rs. in millions) 2011-13
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

Profit & Loss Accounts (Rs. in millions)
	March - 2013 (12 months)	%	March - 2012 (12 months)	%	March - 2011 (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.58.86
UK Pound	1	Rs.98.82
Euro	1	Rs.80.71

INFORMATION DETAILS

Analysis Done by :	SUB
Report Prepared by :	PDT

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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