MIRA INFORM REPORT

Report Date :           

07.09.2012

 

IDENTIFICATION DETAILS

 

Name :

R.N. SPINNING MILLS LIMITED

 

 

Registered Office :

ML Tower (5th Floor), 1 East Rampura, DIT Road, Dhaka-1219

 

 

Country :

Bangladesh

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

04.11.2004

 

 

Com. Reg. No.:

C-54808

 

 

Legal Form :

Public Limited Company

 

 

Line of Business :

Manufacturer & Seller of Yarn

 

 

No. of Employees :

1,600

 

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

 

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, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

Bangladesh

b1

b1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

Bangladesh - ECONOMIC OVERVIEW

 

The economy has grown 5-6% per year since 1996 despite political instability, poor infrastructure, corruption, insufficient power supplies, and slow implementation of economic reforms. Bangladesh remains a poor, overpopulated, and inefficiently-governed nation. Although more than half of GDP is generated through the service sector, 45% of Bangladeshis are employed in the agriculture sector with rice as the single-most-important product. Bangladesh's growth was resilient during the 2008-09 global financial crisis and recession. Garment exports, totaling $12.3 billion in FY09 and remittances from overseas Bangladeshis, totaling $11 billion in FY10, accounted for almost 12% of GDP.

 

Source : CIA

 

COMPANY DETAILS

 

Name

R.N. Spinning Mills Limited 

Address

M. L. Tower (5th Floor), 1 East Rampura, D.I.T Road, Dhaka-1219

Country

Bangladesh

Telephone No

880-2-9337472, 9338232 , 8361237, 8355993, 8355286

Fax No

880-2-9337862

E-Mail

fargroup123yahoo@gmail.com, rnspinning@gmail.com, rnspinning@yahoo.com

Website

www.rnspinningmills.com

Established

2004 (As Private Limited Company)

Company Registration No

C-54808

Registration date

4th November 2004

Legal Status

Public Limited (February 2007)

Business Type

Manufacturer & Seller

Status

Satisfactory

Payment Behavior

No complaints have been heard regarding payments 

from local suppliers or banks.

 

 

LOCATIONS

 

Head Office

ML Tower (5th Floor), 1 East Rampura, DIT Road, Dhaka-1219, Bangladesh

Telephone No

880-2-9337472, 9338232 , 8361237, 8355993, 8355286

Fax No

880-2-9337862

E-Mail

fargroup123yahoo@gmail.com, rnspinning@gmail.com, rnspinning@yahoo.com

Website

www.rnspinningmills.com

Branch

NIL

Factory

Plot no. 100-107&127-134, CEPZ, Comilla, Bangladesh

Factory Telephone No

N/A

Factory Fax No

N/A

Warehouse

Plot no. 100-107&127-134, CEPZ, Comilla, Bangladesh

 

DIRECTORS

 

Name

Al-Haj Mustafizur Rahman

Designation

Chairman

Nationality

Bangladeshi

 

 

Name

Mr. Md. Abdul Kader Faruk

Designation

Managing Director

Nationality

Bangladeshi

 

 

Name

Mr. Abdul Quayum Mamun

Designation

Director

Nationality

Bangladeshi

 

 

Name

Mrs. Shirin Faruk

Designation

Director

Nationality

Bangladeshi

 

 

Name

Mr. Kim Jong Suk

Designation

Korean

Nationality

Bangladeshi

 

 

Name

Mr. Abid Mostafizur Rahman)

Designation

Director

Nationality

Bangladeshi

 

 

SHAREHOLDERS

 

Name

Al-Haj Mustafizur Rahman

Share Amount

600

Nationality

Bangladeshi

 

 

Name

Al-Haj Md. Abdul Kader Faruk

Share Amount

19,000

Nationality

Bangladeshi

 

 

Name

Mr. Abdul Quayum Mamun

Share Amount

400

Nationality

Bangladeshi

 

 

Name

Mrs. Shirin Faruk

Share Amount

2,000,000

Nationality

Bangladeshi

 

 

Name

Mr. Kim Jong Suk

Share Amount

2,667,156

Nationality

Bangladeshi

 

 

Name

M. L. Dyeing Ltd.

Represented by

Mrs. Jaheda Khondoker

Share Amount

2,042,000

Country

Bangladesh

 

 

Name

Mr. Abid Mostafizur Rahman

Share Amount

1,000

Nationality

Bangladesh

 

 

BUSINESS DETAILS

 

Line of Business

Manufacturer & Seller

Items Dealing In

Yarn

Terms of Purchase

Local: Cash or Credit

Import: Against L/C

Terms of Sale

Local: Against L/C

 

 

BANKERS

 

Name

National Bank Limited

Branch

Dilkusha Branch

Address

Dilkusha C/A, Dhaka

SWIFT

N/A

 

 

Name

AB Bank Limited

Branch

Dilkusha Branch

Address

Dilkusha C/A, Dhaka

SWIFT

N/A

 

 

Name

Bank Asia Limited

Branch

Motijheel Branch

Address

Motijheel C/A, Dhaka

SWIFT

N/A

 

 

Name

The City Bank Limited 

Branch

Motijheel Branch

Address

Motijheel C/A, Dhaka

SWIFT

N/A

 

 

FINANCIAL INFORMATION

 

Balance Sheet

For the period ended 31st March 2011

 

 

 

Application of fund:

 

Fixed Assets:

1,298,950,139

Property, Plant & Equipment

 1,294,577,864

Security Deposits

4,372,275

 

 

Current Assets:

 1,505,494,838

Inventory

461,617,089

Advances, Deposits and Prepayments

 195,278,563

Bills Receivable

  768,583,756

Cash and Cash Equivalents

77,510,430

STD Account (IPO) Undistributed Portion

 2,505,000

Share money deposit (IPO)

2,505,000

 

 

Current Liabilities:

380,486,897

Creditors and Accrues

7,835,289

Bills Payable

167,548,354

Short term loan from Bank

202,598,254

 

 

Net Current Assets

1,125,007,941

Total Assets

 2,423,958,080

 

 

Sources of fund:

 

Share Capital

2,423,958,080

Ordinary Shares

1,391,412,300

Preference Shares

436,527,000

Retaining Earning Balance

596,018,780

 

 

Long term loan from bank

-----

Total Liabilities

2,423,958,080

Net Asset Value  Per Share

14.28

 

 

 

Income Statement

For the period ended 31st March 2011

 

 

 

Export

   774,818,750

Less Cost of goods sold

495,884,000

Gross Profit

278,934,750

 

 

Less operating expenses

6,818,405

Operation income

   272,116,345

Less: Other operating expenses:

135,287

Trading and consulting Fees

----

Welfare Expenses

     135,287

Net operating Income

271,981,058

Financial expenses

3,425,789

Net operating profit

268,555,269

Add: Other non-operation income

       5,247,852

Net profit before tax

   273,803,121

Provision for taxation

---

Profit after tax

   273,803,121

Dividend on Preference Share

9,821,858

 

 

Profit for Ordinary Shareholder

263,981,263

Earning Per Share

1.90

 

 

(Considering after stock dividend 30%)

 

Face Value of share

Tk 10/=

 

 

Auditor:                                               (A. WAHAB & CO.)

CHARTERED ACCOUNTANTS

 

CAPITAL STRUCTURE

 

Authorized Capital

Tk.1500,000,000.00

Paid Up Capital

Tk.1,109,542,600.00

Each Share Value

Tk.100

 

EXCHANGE RATE

 

Currency

Unit

Bangladeshi Taka (BDT)

 

Great Britain Pound

1

128.1970

U.S Dollar

1

81.8000

European Euro

1

106.5772

 

 

 

 

 

 

ADVERSE DATA MONITORING

 

Dishonored Checks

No Records 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

 

 

GENERAL INFORMATION

 

Employees

1,600

Office Area (Sq. Ft)

2000 sq.ft (leased)

Factory Area (Sq. Ft)

31,500 sq.ft (leased)

Warehouse Area (Sq. Ft)

8,700 sq.ft (leased)

Range of Products

4 Cotton Yarn

Major Clients 

4 M.L. Dying Ltd., Mymensingh, Bangladesh

4 Shepherd Yarn Ltd., Mymensingh, Bangladesh

4 Labib Yarn Dying Mills Ltd., Gazipur, Bangladesh

4 K. ALI Dying & finishing Industries, Dhaka, Bangladesh

Raw Materials From

4 M/s. Oxley Trading Limited, New Zealand

4 M/s. Darlon GmbhH Ltd., Germany

Certifications

NIL

Group Name

4 Far Group

Subsidiaries / Affiliates

4 M.L. Dying Limited

4 Far Apparels Limited

4 Far Homes Limited

4 Hotel Royal

Enlisted With

4 Dhaka Stock Exchange Ltd

4 Chittagong Stock Exchange Ltd

Member

4 Bangladesh Textiles Mills Association, Dhaka

4 Dhaka Chamber of Commerce & Industries, Dhaka

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.55.89

UK Pound

1

Rs.88.63

Euro

1

Rs.70.03

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.