3decades

MIRA INFORM REPORT

Report No. :	483685
Report Date :	17.01.2018

IDENTIFICATION DETAILS

Name :	LAXMI STEELS (P) LTD.

Registered Office :	Neupane Tower, 5th floor, Tinkune, Subidhanagar Kathmandu

Country :	Nepal

Financials (as on) :	15.07.2017

Date of Incorporation :	2009

Legal Form :	Private limited company

Line of Business :	Manufacturer of steel TMT bars

No. of Employees :	Not available

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

Credit Rating	Explanation	Rating Comments
A	Acceptable Risk	Business dealings permissible with moderate risk of default

Status :	Satisfactory

Payment Behaviour :	Slow but Correct

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

Country Name

Previous Rating

(30.06.2017)

Current Rating

(30.09.2017)

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 30% of GDP. Agriculture is the mainstay of the economy, providing a livelihood for almost two-thirds of the population but accounting for only 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. Nepal and India signed trade and investment agreements in 2014 that increase Nepal’s hydropower potential, but political uncertainty and a difficult business climate have hampered foreign investment.

Nepal was hit by massive earthquakes in early 2015, which damaged or destroyed infrastructure and homes and set back economic development. Political gridlock in the past several years and recent public protests, predominantly in the southern Tarai region, have hindered post-earthquake recovery and prevented much-needed economic reform. Additional challenges to Nepal's growth include its landlocked geographic location, persistent power shortages, and underdeveloped transportation infrastructure.

Source : CIA

Company name and address

Laxmi Steels (P) Ltd.

Regd. Office :

            Neupane Tower, 5th floor,
Tinkune, Subidhanagar Kathmandu, Nepal
Tel no:    +977-1-4111500, +977-1-4111550, +977-1-4111630/31/32
Fax no:    +977-1-411634
G.P.O. Box no. 2513
Email:     cement@mos.com.np

jcement@wlink.com.np

bpneupane@wlink.com.np

Factory : Laxmi Road, Khaireni, Sunwal VDC-7, Nawalparasi

Nepal

Company summary

History : It is a pvt limited company incorporated at Kathmandu under His Majesty Govt.

Act No.55484 of 05.05.2010

Directors : : 1. Mr. Bishnu Pd. Neupane

2. Jatin Neupane

Bankers : 1. Nepal Indo-Swiss Bank Limited, Kathmandu (Nepal)

2. Nepal Bank Ltd., Kathmandu (Nepal)

3. Nepal Grindlays Bank, Kathmandu (Nepal)

4. Nepal Banijya Bank, Kathmandu (Nepal)

Auditors: M/B K Agarwal & Co., Putli Sadak, Kathmandu (Nepal)

Business

Thousands of years of hard work, innovation, intelligence and precision has gone into the making of STEELS, the super strong carbonized and alloyed form of iron without which modern life is unimaginable. From skyscrapers and planes to syringes and forks, steel is today an essential part of our everyday life.

Steel bars can be made from scrap billets or pure prime billets. While steel made from pure prime billets is purer, stronger, more flexible and more durable, that made from scrap lacks in strength and is easily damaged, leading to poor quality construction. Most normal steel bars being produced in Nepal use scrap billets. However, Laxmi Steels carries a vision of total purity for total quality and strength. We have vowed to never use scrap steel in our products.

We import PURE PRIME BILLETS from the prestigious SAIL & TATA companies of India to manufacture “Laxmi Steels Thermex TMT Bars” guaranteed to be the No 1 quality steel in Nepal.

Financials

BALANCE SHEET AS AT 15^th JULY, 2017

LIABILITIES	NP. RUPEES	ASSETS	NP. RUPEES
Authorised Capital	60,000,000	Fixed Assets	63,913,740
Paid up Capital	49,787,500	Cap. Work in Progress	2,080,852
Reserve & Surplus	12,331,261	Current Assets	49,674,391
Secured Loans	50,337,942	Deferred Tax Net	99,000
Unsecured Loans	3,348,332	Miscns. Expenses	37,052
Total Nep. Rs.	115,805,035	Total Nep. Rs.	115,805,035

Sales : Nep Rs. 88,014,028/-

Profit of this year : Nep Rs. 9,075,182/-

Deferred Tax Adjust : Nep Rs. 2,270,344/-

Net Profit : Nep Rs. 880,261/-

Remarks : Well established, respectable and reputed concern. Payments are reported to be correct and regular as per commitments. Trade relations are fair. Consider good for normal business engagements.

INFORMATION DENIED

+977-1-4111500

Management non co-operative

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 63.76
UK Pound	1	INR 87.91
Euro	1	INR 78.20
NPR	1	INR 0.63

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Information Gathered by :	SAV

Analysis Done by :	VAR

Report Prepared by :	SYL

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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