MIRA INFORM REPORT

 

 

Report No. :

494811

Report Date :

09.03.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

HIMAL WIRES (P) LTD.

 

 

Registered Office :

Jyoti Bhawan, 1919 Kantipath, PO Box 133, Kathmandu

 

 

Country :

Nepal

 

 

Financials (as on) :

15.07.2017

 

 

Date of Incorporation :

1982

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Subject is manufacturing a wide range of wire products such as galvanized wires, barbed wires, binding wires, deformed wires, and annealed wires, all essential for the country’s infrastructure building industries.

 

 

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

 

Himal Wires (P) Ltd.

 

Jyoti Bhawan,
1919 Kantipath, PO Box 133,
Kathmandu, Nepal
Phone No:  (977-1) 4253637, 4226530
Fax No:  (977-1) 4212932

 

 

History      

 

It is a private limited company incorporated at Kathmandu under His Majesty Govt. Act No.7152 of 23.03.1993.

 

 

Directors

 

Dr. Roop Jyoti

Padma  Jyoti

Raj Jyoti

S. Shrestha

 

 

Bankers

 

Nepal Standard Chattered Bank., Kathmandu (Nepal)

Nepal Grindlays Bank, Kathmandu (Nepal)

 

 

Auditors    

 

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

 

 

Business

 

Himal Wires (P) Ltd was established in 1982 in Parwanipur, Parsa. It was setup to complement Himal Steel products. From its onset, it has been a pioneer in the industry. Himal Wires (P) Ltd is capable of manufacturing a wide range of wire products such as galvanized wires, barbed wires, binding wires, deformed wires, and annealed wires, all essential for the country’s infrastructure building industries.

Today, it produces high strength deformed cold worked Torkari bars (based on Baustahlgewebe Technology from Germany) in popular sizes of 4.75mm and 7mm, and annealed wires in 20 swg and 22 swg coils.

Currently, Himal Wires (P) Ltd’s products are marketed by Himal Iron and Steel (P) Ltd.

 

 

Financials

           

Particular

July 15, 2017

July 15, 2016

Sources of Funds

NP Rs. In Lacs

NP Rs. In Lacs

Share Capital

2.62

0.59

Reserves & Surplus

13.56

3.40

Unsecured Loans

2.67

4.30

Deferred Tax Liability (Net)

0.01

0.01

Total Liabilities

18.86

8.30

Application Of Funds

Gross Block

1.28

0.88

Less:  Depreciation

0.43

0.24

Net Block

0.85

0.64

Current Assets, Loan and Advances

Inventories

30.24

22.01

Sundry Debtors

10.84

9.63

Cash And Bank Balances

0.14

0.82

Loans and Advances

2.49

1.31

 

43.71

33.77

Less : Current Liabilities & Provisions

Current Liabilities

23.56

25.09

Provisions

2.18

1.06

 

25.74

26.15

Net Current Assets

17.97

7.62

Miscellaneous Expenditure

0.04

0.04

Total Assets

18.86

8.30

 

Particulars

July 15, 2017

July 15, 2016

PAT / Total Income (%)

                       2.17

                     3.89

Net Profit Margin

(PBT/ Total Income) (%)

3.33

5.30

Return on Total Assets

(PBT/Total Assets} (%)

7.13

11.32

Return on Investment (ROI)

(PBT/Net worth)

0.20

0.98

Debt Equity Ratio

(Total Liability/Net worth)

1.76

7.63

Current Ratio

(Current Asset/Current Liability)

                       1.70

                     1.29

 

 

INFORMATION DENIED

 

Management non co-operative

[(000977-1) 4253637, 4226530]

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

INR 64.92

UK Pound

1

INR 90.23

Euro

1

INR 80.54

NPR

1

INR 0.62

 

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

 

 

INFORMATION DETAILS

 

Information gathered by :

GAY

 

 

Analysis Done by :

NIY

 

 

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)

 

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