MIRA INFORM REPORT

 

 

 

Report Date :

01.09.2008

 

IDENTIFICATION DETAILS

 

Name :

Duncan Brothers (Bangladesh) Limited

 

 

Registered Office :

Camellia House, 22, Kazi Nazrul Islam Avenue,Dhaka - 1000

 

 

Country :

Bangladesh

 

 

Date of Incorporation :

10.01.1971

 

 

Com. Reg. No.:

C-257

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Manufactures of Tea, Bottling of Water & Packets of Tea

 

 

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 :

No Complaints 

 

 

Litigation :

Clear

 

 

 

 

 

COMPANY DETAILS

 

Name:                                                  Duncan Brothers (Bangladesh) Limited

 

Address:                                   Camellia House

                                                22, Kazi Nazrul Islam Avenue,

                                                Dhaka - 1000

 

Country:                                   Bangladesh      

 

Telephone:                              880-2-8619336-8, 9661397-8

 

Fax:                                         880-2-8613576

 

E-Mail:                                     info@duncanbd.com

 

Established:                             January 1971

 

Incorporation No:                     C-257

 

Incorporation Date:     10th January 1971

 

Legal Structure:                       The subject is a Private Limited Company that was 

            Incorporated in the Registrar of Joint Stock of 

            Companies, Dhaka.

 

Business Type:                         Manufactures of Tea, Bottling of Water & Packing of Tea

 

Status:                                     Satisfactory

 

Payments:                                No complaints have been heard regarding payments 

                                                from local suppliers or banks.

 

Litigation:                                NIL

 

 

LOCATIONS

 

Head Office:                             Camellia House

                                                22, Kazi Nazrul Islam Avenue,

                                                Dhaka - 1000

           

Branch:                                   1 Srimangal

                                                1 Rangpur

 

Factory:                                   Sreemangal

                                                District: Moulvi Bazar

 

                                                Nasirabad Industrial Area,

                                                Chittagong

                                               

Warehouse:                             Sreemangal

                                                District: Moulvi Bazar

 

 

DIRECTORS & SHAREHOLDERS

 

Name:                                      Mr.A.S..M.O.Sobhan

Designation:                           (Representing of Duncan Brothers)

 

Name:                                      Mr.Aziz Ahmed

Designation:                           (Representing Octivious Steel & Co)

 

Name :                                     Mr.M.A.Zaman

Designation :                           (Representing of Amo Tea Company)

 

 

BUSINESS DETAILS

 

Line of Business:                     Manufactures of Tea, Bottling of Water & Packets of Tea

 

Name Of Brands:                     DUNCAN

 

Terms of Sale:                         1 Cash

                                                1 Credit

 

 

BANKERS

 

Name:                                      Standard Chartered Bank

Branch:                                    Principal Office Branch

 

Address:                                   Dilkusha Commercial Area,

Dhaka

                                                                                      

The company performs most of the business transactions with the above-mentioned bank. No more details were provided.

 

 

FINANCIAL INFORMATION

 

 

 

2007

2006

 

2005

 

Capital Investment

Tk.6 billion

Tk.6 billion

Tk.6 billion

Turnover

Tk 2.5 billion

Tk.2.4 billion

Tk.2.2 billion

Liability

Tk.20 million

Tk.23 million

Tk.26 million

Fixed Assets

Tk.8 billion

Tk.8 billion

Tk.8 billion

 

* Collected unofficially as the subject refused to reveal any financial information. Whatever given here could not be verified

 

 

CAPITAL STRUCTURE

 

Authorized Capital

:

Tk.10 million

Paid Up Capital

:

Tk.5 million

Each Share Value

:

Tk.100.00

 

 

EXCHANGE RATE

 

CURRENCY

UNIT

BANGLADESHI TAKA

   Great Britain Pound

1

137.1626

                     U.S Dollar

1

 69.4000

         European Euro

1

108.8231

          Japanese Yen

1

   0.6729

      Australian Dollar

1

 66.7102

 

 

 

 

 

 

 

 

 

 

GENERAL INFORMATION

 

No. of Employees:        250

Executives----------------6 

Junior Executives---------8                                                           

Engineers-----------------4

Tea Tester----------------8        

                                                Tea Blender-------------10

                                                Quality Control----------20

                                                Supervisory Staffs------25  

                                                  Support Staffs------------9       

                                                General Staffs-----------10    

                                                Technicians---------------5  

                                                Workers----------------145

 

Office Area:                             3,600 sq.ft (rented)

 

Factory Area:                           6 acres of lands (leased)

 

Warehouse Area:                     10,900  sq.ft.(leased)

 

Range of Products:                  1 Tea

                                                1 Mineral  Water

                                                1 Packet Tea                                      

 

Name of the Group:                 Lawri Plantation Group (UK)

 

Subsidiaries:                            1 Octivities Steel & Company (BD) Ltd

1 Langla Sylhet Tea Company Limited

1 Amo Tea Company Limited,

1 North Sylhet Tea Company Limited

1 United Insurance Co Limited

1 United Leasing Company Limited

1 Eastland Camellia Limited

1 Chittagong Warehouse Limited

                                               

Member                                   1 DhakaChamber of Commerce & Industries, Dhaka

                                                1 Foreign Chamber of Commerce & Industries, Dhaka

                                               

 

COMMENTS

 

The history of Duncan Brothers dates back to 1858 when Mr Walter Duncan established Playfair Duncan & Co in Calcutta (now Kolkata), the capital of the undivided British-ruled Indian subcontinent. Later his brother Mr William Duncan joined him and the two brothers set up a company named Duncan Brothers and Company on 1 January 1875 to deal in cotton. Though the Company's involvement in tea came in 1865, its actual stride in tea business began onwards from 1880. By 1923 the Company had a firm grip on tea cultivation by taking in its possession 60 tea estates in Dooars, Assam and Sylhet encompassing nearly 20,000 hectares of cultivable land and producing a crop of about 14.50 million kilograms a year.

 

The partition of the Indian subcontinent in 1947 led to the setting up of Duncan Brothers (Pakistan) Limited on 20 January 1948 with its office in Chittagong. The newly established company in the then Pakistan assumed its Calcutta-based parent company's interests involving its tea estates in the Sylhet region. An assured market in the then West Pakistan helped a steady growth of the tea industry in the eastern part of the country and the Company soon became one of the country's leading producers. After the emergence of independent Bangladesh, the name of the company was changed to Duncan Brothers (Bangladesh) Limited.

 

The Bangladesh War of Liberation in 1971 left a trail of devastation in the tea industry. The market in West Pakistan was lost and the Company incurred heavy losses from 1971 to 1974. At this juncture, Lawrie Group Plc became involved and assumed a controlling interest in Longbourne Holdings, the holding company for the 5 Duncan-managed UK-registered tea companies operating in Bangladesh.

 

Tea is still the mainstay of Duncan Brothers. The Group now owns fifteen tea gardens located mainly in the greater Sylhet region and enjoys the distinction of being the largest producer of black tea in the country, producing over 13 million kilograms per annum, which is about one quarter of the country's production. Every season, the Group exports on its own about a million kilograms of tea with Pakistan being the major destination

Besides tea, the Group has also extended its interests in insurance, leasing, rubber, bottled water and warehousing, employing about 24,000 people and generating a gross annual turnover of about Tk 2.5 billion. With a splendid objective of doing business with a human face, the Group spends approximately Tk 85 million yearly towards corporate social responsibility, which includes flagship projects like a well-equipped 50-bed hospital for tea workers and their families and a residential school for workers' children, both located in the tea belt. 

All the gardens of the Group in Bangladesh, including the corporate office in Dhaka, are ISO-9002 certified for their quality management system.

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.43.79

UK Pound

1

Rs.80.05

Euro

1

Rs.64.56

 

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