MIRA INFORM REPORT

 

 

Report No. :

494813

Report Date :

07.03.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

HIMAL IRON AND STEEL PVT. LTD. 

 

 

Registered Office :

Block No., 1919, Jyoti Bhawan Kanthipath, Kathmandu P.O.Box 133 

 

 

Country :

Nepal

 

 

Financials (as on) :

15.07.2017

 

 

Date of Incorporation :

1961

 

 

Legal Form :

Public limited company

 

 

Line of Business :

Produces cold twisted Torsteel bars (licensed from Tor-Isteg Steel Corporation Luxembourg) and high strength TMT Tempcore bars (licensed from Centre de Rechaerche Metallurgiques (CRM) Belgium. Himal Iron and Steel (P) Ltd is renowned among its consumers for its high quality products, innovative features and customer friendly marketing

 

 

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 :

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

(30.09.2017)

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

 

HIMAL IRON AND STEEL PVT. LTD. 

 

Regd. Office     :           BLOCK NO., 1919, JYOTI BHAWAN KANTHIPATH,

KATHMANDU P.O.BOX 133 

Telephone         :           (977-1) 4253637, 4226530


Fax No             :           (977-1) 4212932

 

 

Company summery

 

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

                                    Act No.5263 of 23.05.1962.

 

Directors :         1.         Diwakar Bista

 

                        2.         Mrs. Sunila Tuladhar

 

                       

 

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 :         Himal Iron and Steel (P) Ltd was established in 1961. It has since emerged as a pioneering force in Nepal’s iron and steel industry. The company began with the production of plain bars and subsequently led the nation into self sufficiency in the reinforced steel industry. Today it proudly celebrates its 50 years Golden Jubilee, a rare example for Nepalese companies.

Himal Iron and Steel (P) Ltd produces cold twisted Torsteel bars (licensed from Tor-Isteg Steel Corporation Luxembourg) and high strength TMT Tempcore bars (licensed from Centre de Rechaerche Metallurgiques (CRM) Belgium. Himal Iron and Steel (P) Ltd is renowned among its consumers for its high quality products, innovative features and customer friendly marketing.

 

 

Financial              

BALANCE SHEET AS AT 15th JULY, 17

 

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/-

 

 

INFORMATION DENIED BY

 

Name :

Ms. Nirmala

Designation :

Accountant

Contact No.:

(977-1) 4225490

Date :

07.03.2018

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

INR 64.99

UK Pound

1

INR 89.91

Euro

1

INR 80.21

NPR 

1

INR 0.63

 

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

 

 

INFORMATION DETAILS

 

Information Gathered by :

SUP

 

 

Analysis Done by :

VAR

 

 

Report Prepared by :

KET

                                                


 

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.