MIRA INFORM REPORT

 

 

Report No. :

494045

Report Date :

01.03.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

NEPAL EKARAT ENGINEERING CO. (P) LTD.

 

 

Registered Office :

Jaycess Marg, Thapathali Kathmandu, Nepal, PO Box 1939

 

 

Country :

Nepal

 

 

Financials (as on) :

15.07.2017

 

 

Date of Incorporation :

10.10.1991

 

 

Legal Form :

Private limited company

 

 

Line of Business :

Subject is manufacturing & Supply of Distribution Transformers

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

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

 

MIRA’s Rating :

A

 

Credit Rating

Explanation

Rating Comments

A

Acceptable Risk

Business dealings permissible with moderate risk of default

 

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

 

Country Name

Previous Rating

(30.09.2017)

Current Rating

(31.12.2017)

Nepal

B1

B1

 

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 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

 

Nepal Ekarat Engineering Co. (P) Ltd.

 

Office :
Jaycess Marg,Thapathali
Kathmandu, Nepal, PO Box 1939,
Phone: 4243436, 4244857
Fax: +977-1-4253612
Email: info@neek-transformer.com

 

Factory :

Thana Bharyang
Nawalpur, Hetauda
Tel: +977-57-520994, 520935
Fax: +977-57-520689
email: works@neek-transformer.com

 

 

Company summery

 

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

                        Act No.4324 of 10.10.1991.

 

Directors :         1.         Mr. Kiet Phong  (Chairman)

                        2.         Mr. Kush Kumar Joshi (MD)

                        3.         Ashok Shrestha (Director)

4.         Ajay Kumar Mudbhary (Director)

 

 

Bankers :                      Nepal Bank Ltd., Kathmandu (Nepal)

Nepal Grindlays Bank, Kathmandu (Nepal)

Nepal Banijya Bank, Kathmandu (Nepal)

 

Shareholders :               "Ekarat Engineering Public Co. Ltd."of Thailand.                         40%

                                    Mr. Kush Kumar Joshi (MD)                                           20%

                                    Ashok Shrestha (Director)                                              20%

Ajay Kumar Mudbhary (Director)                                     20%

 

 

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

 

Business :        

NEEK was established in a joint venture between young Nepalese Enterpreneur and "Ekarat Engineering Public Co. Ltd."of Thailand in the year 1990. With continued suppport from our valued customers over the years, we have been able to serve for the last Twenty years in the manufacturing & Supply of Distribution Transformers.

NEEK has a capacity to manufacture up to 5MVA and up to 33kv class Distribution Transformers.Its plant at Hetauda is equipped with the latest manufacturing equipment and a highly skilled technical work force. From 1992,we have manufactured various ratings of distribution transformers and supplied to the electricity utilities ,hydropower projects, small hydro powers, hospitals , shopping complex and industries. We have also completed the sucessful repair and maintenance work of power Transformer s up to 10MVA 3-Phase, 33/11KV and Power Transformers up to 5 MVA 3- Phase, 132/11 kv. This gives us the extra insight while manufacturing our product , for our customers.


The first Product of NEEK was launched in August 1992 and NEEK has been consistent in quality and continues to make the most sought after transformers in the country .Out of the installed Distribution Transformers in the Nepal, most of the quantities have been supplied by NEEK. The Total production capacity and its product range makes NEEK the largest and the most efficient manufacturer of Distribution Transformers in the country.

To keep pace with the changing technology and upgrades,regular training is provided to NEEK employees at all levels.Our refreshner programs allow workers to benefit from local or foreign experts and our Engineers are sent abroad for training in related field to be upgratedwith the technological upgrades.


Nepal Ekarat Engineering has been exclusive in being able to offer products manufactured according to customer requirements in a clean ,healthy and safe Environment. Each incoming raw material is carefully chosen ,inspected and tested before it is used for these long -life products.From core laying,coil winding ,tank fabrication and assembly each step is carefully monitered by experts and tested by the latest equipment for the quality and in accordance with the international standards.


NEEK is certified with ISO 9001;2008,as ah adherence in the manufacturing of quality products in a clean, healthy and safe environment and follow the principle & procedures of QMS in every aspect of our manufacturing process for the continual improvements of quality in our products. We have recently achieved the NS Standards quality 166 for our transformers.

 

 

Financial

                                   

BALANCE SHEET AS AT 15th 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

1,080,852

Reserve & Surplus

11,331,261

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.

114,805,035

Total Nep. Rs.

114,805,035

 

Sales                            :           Nep Rs.77,014,028/-

Profit of this year          :           Nep Rs.  7,075,182/-

Deferred Tax Adjust      :           Nep Rs.   1,270,344/-

Net Profit                      :           Nep Rs.      331,261/-

 

Remarks :         Payments are reported as no complaints.  Trade relations are fair. Consider good for normal business engagement.

 

 

INFORMATION DENIED

 

Management non-co-operative 0977-57-520994

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

INR 65.10

UK Pound

1

INR 94.44

Euro

1

INR 79.59

NPR

1

INR 0.62

 

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

 

 

INFORMATION DETAILS

 

Information Gathered by :

SHA

 

 

Analysis Done by :

VAR

 

 

Report Prepared by :

TRU

                                                


 

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.