MIRA INFORM REPORT

 

 

Report Date :

05.09.2014

 

IDENTIFICATION DETAILS

 

Name :

JAGDAMBA STEELS PVT LTD 

 

 

Registered Office :

7th 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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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 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

:

7th 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

 

 

 

http://hindi.economictimes.indiatimes.com/photo.cms?photoid=834678Net Worth (1)

218.66

218.66

218.66

 

 

 

http://hindi.economictimes.indiatimes.com/photo.cms?photoid=834679Secured Loans (2)

1.12

1.84

3.31

 

 

 

http://hindi.economictimes.indiatimes.com/photo.cms?photoid=834679Unsecured Loans (3)

0.00

0.00

1.06

 

 

 

Total Liabilities(1+2+3) http://hindi.economictimes.indiatimes.com/photo.cms?photoid=834679

219.78

220.50

223.04

 

 

 

 

 

Fixed Assets

 

 

Gross Block

28.93

28.34

25.43

 

 

 

(-) Acc. Depreciation

9.96

9.23

8.09

 

 

 

http://hindi.economictimes.indiatimes.com/photo.cms?photoid=834679Net Block (A)

18.97

19.10

17.35

 

 

 

http://hindi.economictimes.indiatimes.com/photo.cms?photoid=834678Capital Work in Prgs. (B)

2.82

1.54

0.46

 

 

 

http://hindi.economictimes.indiatimes.com/photo.cms?photoid=834678Investments (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

 

 

 

http://hindi.economictimes.indiatimes.com/photo.cms?photoid=834678Net Curr. Assets (i - ii) (D)

33.48

9.42

183.03

 

 

 

http://hindi.economictimes.indiatimes.com/photo.cms?photoid=834678Misc. Expenses (E)

150.48

170.35

0.00

 

 

 

Total Assets (A+B+C+D+E) http://hindi.economictimes.indiatimes.com/photo.cms?photoid=834678

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.60.45

UK Pound

1

Rs.99.46

Euro

1

Rs.79.46

 

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%)

 

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.