MIRA INFORM REPORT

 

 

Report Date :           

01.10.2011

 

IDENTIFICATION DETAILS

 

Name :

MAHABUB BROTHERS (PVT.) LIMITED

 

 

Registered Office :

51, Upper Jessore Road, Daulatpur, Khulna

 

 

Country :

Bangladesh

 

 

Date of Incorporation :

22.07.2002

 

 

Com. Reg. No.:

Kh-6977

 

 

Legal Form :

Private Limited  Company

 

 

Line of Business :

Importer of  Wheat, Rice, Sugar, Fertilizer, Magnesium Sulphate, Marble etc

 

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

 

Maximum Credit Limit :

US$ 25,000.00

 

 

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 – March 31st, 2011

 

Country Name

Previous Rating

                   (31.12.2010)                  

Current Rating

(31.03.2011)

Bangladesh

b1

b1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

COMPANY DETAILS

 

Name

Mahabub Brothers (Pvt.) Limited

Address

Khan A Sabur Road, Daugatpur, Khulna

Country

Bangladesh

Telephone No

880-41-71746

Fax No

880-41-71777

E-Mail

mahabubbrothers.bd@gmail.com

Website

NIL

Established

1985

Company Registration No

Kh-6977

Registration date

22nd July 2002

Legal Status

Private Limited

Issuing Authority

The Register of Joint Stock Companies & Firms, Khulna

Business Type

Importer, Trader & Builder

Status

Satisfactory

Payment Behavior

No complaints have been heard regarding payments

from local suppliers or banks.

 

 

LOCATIONS

 

Head Office

51, Upper Jessore Road, Daulatpur, Khulna

Telephone No

880-41-71746

Fax No

880-41-71777

E-Mail

mahabubbrothers.bd@gmail.com

Website

NIL

Branch

Dhaka, Bangladesh

Factory

N/A

Factory Telephone No

N/A

Factory Fax No

N/A

Warehouse

4 Noapara, Jessore

4 Khan A Sabur Road, Daugatpur Khulna

 

DIRECTORS

 

Name

Mr. Mahabubur Rahman

Designation

Chairman & Managing Director

Nationality

Bangladeshi

 

 

Name

Mr. Mustafizur Rahman

Designation

Director

Nationality

Bangladeshi

 

 

Name

Mr. Reshad Rahman

Designation

Director

Nationality

Bangladeshi

 

 

SHAREHOLDERS

 

Name

Mr. Mahabubur Rahman

Share Percent

40%

Nationality

Bangladeshi

 

 

Name

Mr. Mustafizur Rahman

Share Percent

30%

Nationality

Bangladeshi

 

 

Name

Mr. Reshad Rahman

Share Percent

30%

Nationality

Bangladeshi

 

 

BUSINESS DETAILS

 

Line of Business

Importer, Trader & Builder

Items Dealing In

Food Grains, Fertilizer etc

Terms of Purchase

Import: Against L/C 

Terms of Sale

Local: Cash or Credit

 

BANKERS

 

Name

United Commercial Bank Ltd

Branch

Daulatpur Branch

Address

Daulatpur, Khulna

SWIFT

N/A

 

 

Name

Prime Bank Ltd

Branch

Daulatpur Branch

Address

Daulatpur, Khulna

SWIFT

N/A

 

 

FINANCIAL INFORMATION

 

 

2010

2009

2008

Investment

Tk.35 million

Tk.34 million

Tk.34.8 million

Turnover

Tk.174 million

Tk.173 million

Tk.174.4 million

Assets

Tk.28 million

Tk.28 million

Tk.27.3 million

Liabilities

Tk.4 million

Tk.4.9 million

Tk.5.4 million

 

 

CAPITAL STRUCTURE

 

Authorized Capital

Tk.10 million

Paid Up Capital

Tk.100,000.00

Each Share Value

Tk.100.00

 

 

EXCHANGE RATE

 

Currency

Unit

Bangladeshi Taka (BDT)

 

Great Britain Pound

1

117.3669

U.S Dollar

1

75.2400

European Euro

1

102.0254

 

ADVERSE DATA MONITORING

 

Dishonored Checks

No Found

Debt

No Records Found

Litigation

No Records Found

Performance Defaults

No Records Found

Adverse Press Coverage

No Records Found

Money Laundering

No Records Found

 

 

MAXIMUM RECOMMENDED CREDIT

 

Amount

Based On

US$ 25,000.00

90 Days

 

 

GENERAL INFORMATION

 

Employees

38

Range of Products

4 Wheat

4  Rice

4  Sugar

4  Fertilizer

4  Mag.Sulphate

4  Marble

Clients

CONSTRUCTION

4 Local Government & Engineering Department (LGED)

4 Public Works Department (PWD)

4 Khulna City Corporation

4 Road Division

4 Ministry of Education

4 Khulna Development Authority (KDA)

4 Inland port authority

 

FOOD GRAINS & OTHERS

4 Local Consumers

Brand Name

NIL

Certifications

NIL

Group Name

NIL

Subsidiaries / Affiliates

NIL

Member

4 Khulna Chamber of Commerce & Industries, Khulna

 

 

COMMENTS

 

The subject commenced its business in 1985 as a proprietorship business and transformed to private limited company in 2002. The firm has diversified business engagement with govt. order supply, construction, transport business and operating rice mill. The Company also has some housing properties from where it earns rent. Trading and construction business generated average 97% of its total revenue.

 

The company is a bulk trader in Khulna importing wheat, rice, sugar, fertilizer, Magnesium Sulphate, marble etc. It has no listed dealers, rather dealers and wholesalers from different areas of the country purchase the goods from the Company’s showroom and warehouse. The Company has 20 own and 04 rented warehouse located at Noapara and Daulatpur. Although the Company’s major imported item was rice from India, which is presently closed due to export restrictions in India. From FY09, it started to import wheat from abroad and at present, this item is the major trading item of the Company.

 

The owners of the Company are engaged in civil construction business for more than 25 years. The Company is one of the “A class Construction Company in Bangladesh enlisted in LGED, PWD, City

Corporation, Road Division, Ministry of Education, KDA, Inland port authority, etc. From FY04 to FY10, the Company completed construction work of BDT 672.78 million. Among them, major clients were Education Ministry (almost 80%), PWD, and KDA. As per management information the Company has total 21 projects in hand (up to April 2010), where main client of the Company is Education Ministry, PWD and Civil Aviation. Total values of these projects are BDT 725.33 million. On an average, most of the projects were half done.

 

The Company started its rice mill business in 2006 by establishing a semi automatic rice mill in Khulna BISIC Industrial Area, near Shiromoni with the capacity of 9,000 Kg paddy per day of boiled rice or 37,500 Kg paddy per day of non boiled rice. Dealers and wholesalers from different areas of the country purchase the goods from the Company’s showroom, mill gate and warehouse.

 

The subject is also engaged in transport business and earns rental from the warehouse by letting to others while unutilized. The Company has 10 trucks and 20 go-downs, which are used for internal purpose. When unutilized, the Company lets them to various parties under rent basis.

 

At present, the Company is banking with Prime Bank Limited and United Commercial Bank Limited. As per Bankers reports, the Company enjoys long term and short term credit facility limit with BDT 1,881.24 million, and as per last quarter of 2010, Company’s outstanding amount was BDT 1,345.6 million. The subject has been banking with PBL and UCBL for last eleven years and fifteen years respectively. Overall transaction behavior was reported to be satisfactory.

 

It is also found that, there was no instance of reschedule or default in last three years. There was no instance of dishonoring of cheques due to insufficient fund during the last one year

 

It is a family oriented business. The entrepreneurs have good track record and are well known in Khulna.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.48.93

UK Pound

1

Rs.76.52

Euro

1

Rs.66.65

 

 

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

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

----

NB

New Business

----

 

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

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