MIRA INFORM REPORT

 

 

Report Date :

23.10.2007

 

IDENTIFICATION DETAILS

 

Name :

H.R. Textile Mills Limited

 

 

Registered Office :

B-4, Kanpara (Near Bank Town), Savar, Dhaka

 

 

Country :

Bangladesh

 

 

Financials (as on) :

30.09.2006

 

 

Date of Incorporation :

3rd December, 1984

 

 

Com. Reg. No.:

C-13328

 

 

Legal Form :

Public Limited Company

 

 

Line of Business :

Engaged in manufacturing of knit fabrics for hundred percent export oriented ready-made garment industries.

 

 

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 :

Regular

 

 

Litigation :

Clear

 

 

Report on

 

H.R. Textile Mills Limited

 

 

Address

 

B-4, Kanpara (Near Bank Town),

Savar,

Dhaka,

Bangladesh

Telephones        : 880-2-7712952-5

Fax                   : 880-2-7710819

E-mail               : pride@pride-grp.com

 

 

Corporate Office

 

Green Deluxe (2nd Floor),

House No.67/D,

Road No.11,

Block-E,

Banani,

Dhaka-1213,

Tel. 880-2-8828911, 9893747

Fax. 880-2-8811574

           

                       

SUMMARY

 

Established                                           : December, 1984

Incorporation No.                                    : C-13328

Incorporation Dated                                : 3rd December, 1984

Managing Director & CEO                       : Mr. Mohammad Abdul Moyeed

 

 

Employees       

 

1510

                                                                                                           

 

BANK

 

Arab Bangladesh Bank Limited

Main Branch,

Motijheel Commercial Area,

Dhaka

 

Trust Bank Limited

Main Branch,

Motijheel Commercial Area,

Dhaka

 

 

FACTORY

 

B-4, Kanpara (Near Bank Town),

Savar,

Dhaka,

 

 

WAREHOUSE AREA

 

B-4, Kanpara (Near Bank Town),

Savar,

Dhaka,

 

 

BRANCH

 

NIL

 

 

OFFICE AREA

 

4,500  sq. ft. (own)

 

                                   

FACTORY AREA

 

85,000  sq. ft (own)

 

 

WAREHOUSE AREA

 

5,100 sq. ft. (own)

 

 

DIRECTORS & SHAREHOLDERS

 

Mr. Mohammad Abdul Moyeed  -Chairman & Managing Director

Dr. Muhammad Abdul Moyeen

Mr. Abdul Momen

Ms. Ruhey Rawa

Ms. Sumbal Azwad Momen

Ms. Sana Kainat Moyeen

 

 

HISTORY

 

Subject was incorporated on 3rd December, 1984 at Karnapara, Savar, Dhaka for producing knit fabrics. The major portion of its products is sold to local hundred percent export oriented garment industries, which are treated as export and against US Dollar. The company was converted into a Public Limited Company in 1995 and was Dhaka and Chittagong Stock Exchange in 1997.

 

 

BUSINESS

 

The company is engaged in manufacturing of knit fabrics for hundred percent export oriented ready-made garment industries.

                                   

                                   

MEMBER

 

Bangladesh Garments Manufacturer & Exporters Association, Dhaka.

Dhaka Chamber of Commerce & Industries, Dhaka.

 

 

LEGAL FORM

 

Subject is a public limited company incorporated with the Registrar of Joint Stock of Companies Dhaka.

 

 

ENLISTED WITH

 

Dhaka Stock Exchange Limited

Chittagong Stock Exchange Limited

 

 

STOCK CODE

 

hrtex

 

 

BALANCE SHEET

 

As on 30 September, 2006

 

Capital Employed in long Term Assets

Taka

Fixed Assets

402,290,163

Deferred Lease Interest

49,433,275

Total Long Term Assets

451,723,438

CURRENT ASSETS :

 

Stock and Stores

127,248,443

Trade Debtors

148,456,303

Export Incentives Receivable

18,447,017

Advance, Deposits and Prepayments

8,662,265

Cash and Bank Balances

14,249,793

 

317,063,821

LESS CURRENT LIABILITIES :

 

Bank Overdraft-Secured

28,450,287

Liability against Trust Receipt

57,724,713

Creditors

190,734,636

Accrued Expenses

8,048,201

Provision for Taxation

1,529,439

Workers’ Participation/ Welfare Funds

4,723,252

Dues to Associated Companies

17,085,446

Proposed Dividend

15,000,000

 

323,295,974

WORKING CAPITAL

(6,232,153)

NET ASSETS

445,491,285

FINANCED BY:

 

SHAREHOLDERS’ EQUITY:

 

Share Capital

200,000,000

General Reserve

6,956,752

Tax Holiday Reserve

22,378,987

Capital Reserve

14,511,886

Unapproprited Profit

2,165,861

TOTAL SHAREHOLDERS’ EQUITY

246,013,486

LONG- TERM LIABILITIES

 

Long-Term Loans-Secured

194,988,429

Provision for Gratuity

4,489,370

 

199,477,799

 

445,491,285

Net Assets Value per Share of Tk.100

123.01

 

PROFIT & LOSS ACCOUNT

 

For the year ended 30 September, 2006

 

Item

Taka

Sales

692,014,367

Export Incentives

3,765,884

Turnover

695,780,251

Less Cost of Goods Sold

597,269,244

Gross Profit

98,511,007

Less Administrative and General Expenses

78,690,404

Operating Profit

19,820,603

Add: Other Income

365,400

Profit before Contribution to Workers’ Participation/Welfare-Funds

20,186,003

Less Contribution to Workers’ Participation/Welfare  Funds

1,009,300

Net Profit before tax

19,176,703

Less Provision for Income -Tax

2,876,505

Net Profit

16,300,198

Unappropriated Profit brought forward

3,719,860

Prior Years Adjustment

(2,854,197)

 

865,663

Profit available for appropriations

17,165,861

Less Appropriations:

 

Proposed Dividend

(15,000,000)

Unapproprited Profit carried forward

2,165,861

Earning Per Share (EPS) of Tk.100

8.15

 

 

Auditors

 

Mowla Mohamad & Co.

Chartered Accountants

186/1,Inner Circular Road (2nd Floor),

Arambagh,

Dhaka-1000

 

 

CAPITAL STRUCTURE

 

Authorized Capital          Tk.500 million

 

Paid up Capital              Tk.200 million

 

Each share value           Tk.100.00 each

 

 

EXCHANGE RATE

 

GB Pound                     1.00=Tk.140.1706

US Dollar                      1.00=Tk. 69.4850

Europe Euro                  1.00=Tk. 94.9041

Japanese Yen                1.00=Tk.  0.5712

Australian Dollar            1.00=Tk. 59.7270

 

 

COMMENTS

 

The subject is a family owned private limited company engaged in manufacturing of knit fabrics. The subject sells the major part of its products to the local ready made garment industries. The qualities of their products are good and they are well known in the garments sector as a reliable supplier.

 

The directors are experienced businessman of good reputation. They are financially and good their business commitments, it reported.

 

The company is good for normal business engagements.

 

 

 

 

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

Unfavourable & favourable factors carry similar weight in credit consideration. 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

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

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