MIRA INFORM REPORT

 

 

Report Date :

03.06.2013

 

IDENTIFICATION DETAILS

 

Name :

RAK CERAMICS (BANGLADESH) LIMITED

 

 

Registered Office :

Dhanua, Sreepur, Gazipur

 

 

Country :

Bangladesh

 

 

Date of Incorporation :

26.11.1998

 

 

Com. Reg. No.:

C-36813

 

 

Legal Form :

Public Limited

 

 

Line of Business :

Manufacturer, Exporter and Seller of Porcelain and Sanitary Tiles

 

 

No. of Employees :

780

 

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, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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

 

In real terms Bangladesh's economy has grown 5.8% 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

RAK CERAMICS (BANGLADESH) LIMITED

Address

Dhanua, Sreepur, Gazipur

Country

Bangladesh

Telephone No

880-2-8917393, 8912303, 8915831, 8916548, 8922285, 8911642, 8922078

Fax No

880-2-8917096

E-Mail

acs@rakcerambd.com

Website

www.rakcerambd.com

Established

November 1998

Company Registration No

C-36813

Registration date

26th November 1998

Legal Status

Public Limited (In 11th February 2009)

Issuing Authority

The Registrar of Joint Stock Companies & Firms, Dhaka

Business Type

Manufacturer, Exporter and Seller

Status

Satisfactory

Payment Behavior

No complaints have been heard regarding payments 

from local suppliers or banks.

 

 

LOCATIONS

 

Head Office

RAK Tower (7th, 8th, 9th floor), Plot No. 1/A, Sector- 3 Jasimuddin Avenue, Uttara Model Town, Dhaka – 1230,

Telephone No

880-2-8917393, 8912303, 8915831, 8916548, 8922285, 8911642, 8922078

Fax No

880-2-8917096

E-Mail

acs@rakcerambd.com

Website

www.rakcerambd.com

Branch

Domestic:

Dhaka Hatrilpool:

318, Free School Street,

Hatrilpool, Dhaka.

Phone : 9664295, Fax : 9613826 Email mktg@rakcerambd.com

 

Chittagong Office:

Delwar Bhaban (5th Floor)

104 Agrabad C/A,

Chittagong.

Email mktg@rakcerambd.com

 

Overseas:

4 Germany

4 Switzerland

4 France

4 UAE

4 Australia

4 India

4 China

4 Iran

4 Saudi Arabia

4 Sudan

4 Belgium

4 Georgia

4 UK

4 Italy

Factory

Dhanua, Sreepur, Gazipur, Bangladesh

Factory Telephone No

N/A

Factory Fax No

N/A

Warehouse

Dhanua, Sreepur, Gazipur, Bangladesh

 

 

DIRECTORS

 

Name

DR. Khater Massaad

Designation

Chairman

Nationality

Arabian

 

 

Name

Mr. S.A.K. Ekramuzzaman

Designation

Managing Director

Nationality

Bangladeshi

 

 

Name

Mr. Hamad Abdullah al Muttawa

Designation

Director

Nationality

Arabian

 

 

Name

Mr. Abdallah Massaad

Designation

Director

Nationality

Arabian

 

 

Name

Mr. Manoj Aheeray

Designation

Director

Nationality

Indian

 

 

Name

Mr. Rafique-ul Huq, Barrister-at-Law

Designation

Independent Director

Nationality

Indian

 

 

SHAREHOLDERS

 

Name

Sponsor Directors

Share Percent

79.92%

Nationality

N/A

 

 

Name

Corporate Bodies

Share Percent

6.97%

Nationality

N/A

 

 

Name

General Investors

Share Percent

13.11%

Nationality

N/A

 

 

BUSINESS DETAILS

 

Line of Business

Manufacturer, Exporter and Seller

Items Dealing In

Porcelain and Sanitary Tiles

Terms of Purchase

Local: Cash or Credit

Import: Against L/C

Terms of Sale

Local: Cash or Credit

Export: Against L/C

 

 

BANKERS

 

Name

Standard Chartered Bank

Branch

Main Branch

Address

Dilkusha Commercial Area, Dhaka

SWIFT

N/A

 

 

Name

HSBC

Branch

Main Branch

Address

Motijheel Commercial Area, Dhaka

SWIFT

N/A

 

 

FINANCIAL INFORMATION

 

Balance Sheet

AS AT 31 March 2012

Currency: Taka

 

ASSETS:

2012

Non-Current Assets

 

Property, Plant and Equipment

3,189,151,277

Intangible Assets 

113,328,770

Capital Works-in-progress

35,51 1,479

Investment in associate company

13 1,608,5s0

Investment in shares

2,840.245

Non-current Receivables

41,9 10,160

Total non-current Assets

3,5 14,3s0,481

Current Assets:

 

Inventories

1.71 1.750,818

Trade & other receivables

622,519,816

Advance corporate income tax

1,054, l 49,581

Cash & Bank Balances

1,156,626,910

Total Current Assets

4,545,047,125

Total Assets

8,059,397,606

EQUITY & LIABILITIES

 

Capital & Reserve 

 

Share Capital 

2,530,808,500

Share Premium 

1 ,473,647 ,979

Retained Earnings

1,476,423,624

Total shareholders' funds

5.480.880, 1 03

Non-Controlling Interests

146,930,462

Non-current Liabilities

 

Borrowings

29,678,498

Total Non-current Liabilities

29,678,498

 

 

Current Liabilities

 

Provision for employee benefits

7,0 1 0,535

Trade & other payable 

611,631,687

Borrowings-current portion

138,375.885

Provision for expenses

200,255,421

Provision for corporate income tax

1,175,289,885

Provision for royalty & technical know-how fee

134,703,332

Deferred tax liabilities

134.641.798

Total Current Liabilities

2,401,908,543

Total Equity and Liabilities

8,059,397,606

 

Profit And Loss Account

For the Period Ended 31 March 2012

Currency: TAKA

 

Sales

1.206,415,959

Less: Cost & Goods Sold

726,430,743

GROSS PROFIT

479.9855216

Less: Operating Expenses

 

Administrative Expenses

85,413,487

Selling and Marketing Expenses

167.528.124

 

252,741,611

Operating Profit

227,243,605

Financial Expenses

12,650,191

 

214,593,414

Other Income

4,168,696

Net Profit Before Tax

218.762.110

Less: lncome tax expenses

89,823,465

NET PROFIT AFTER TAX

128,938,645

Non-Controlling Interest

29,306,371

Net Profit after Tax and Non-Controlling Interest

158,245,016

Earnings Per Share (EPS)

0.63

 

Auditor:

S.F. Ahmed & Co.

Chartered Accountants

(A technical assistant firm of Ernst & Young

International Inc of New York, USA, in Bangladesh)

House-25, Road-13A, Block-D

Banani, Dhaka-1213

 

Note: No latest financial information is available.

 

 

CAPITAL STRUCTURE

 

Authorized Capital

Tk.3,000 million 

Paid Up Capital

Tk.2,784 million

Each Share Value

Tk.10.00

 

 

CURRENCY EXCHANGE RATE

 

Currency

Unit

Bangladeshi Taka (BDT)

 

Great Britain Pound

1

117.6664

U.S Dollar

1

77.7600

European Euro

1

100.6214

 

 

ADVERSE DATA MONITORING

 

Dishonored Checks

No Found

Debt

No Found

Litigation

No Records Found

Performance Defaults

No Records Found

Adverse Press Coverage

No Records Found

Money Laundering

No Records Found

 

 

GENERAL INFORMATION

 

Employees

780

Office Area (Sq. Ft)

1,900 sq.ft (own)

Factory Area (Sq. Ft)

35,000 sq.ft (own)

Warehouse Area (Sq. Ft)

4,800 sq.ft. (own)

Range of Products

4 Wall-Tiles

4 Floor Tiles

4 Boarder Tiles

4 Homogenous Tiles

4 Polished/Unpolished Tiles

4 Decor Tiles

4 Porcelains

4 Sanitary Wears

Export Market

4 UAE

4 Germany

4 France

4 Switzerland

Certifications

4 ISO 9001:2008

Group Name

4 RAK Group    

Subsidiaries / Affiliates

4 Rakeen Development Company (BD) Ltd

4 RAK Ceramics (Bangladesh) Ltd

4 RAK Power Pvt. Ltd

4 RAK Security and Services Pvt. Ltd

4 RAK Security and Services Pvt. Ltd

4 RAK Paints Pvt. Ltd

4 RAK Capital Limited

4 RAK Piling Bangladesh Pvt. Ltd

4 RAK Food & Beverage Private Limited

4 RAK Holdings Limited

4 RAK Moshfly (BD) Pvt. Limited

4 RAK Power Pvt. Limited

4 RAK Pharmaceuticals Limited

Enlisted With

4 Dhaka Stock Exchange Limited

4 Chittagong Stock Exchange Limited

Member

4 Bangladesh Ceramic & Sanitary Wears Mfg. Association

4 Dhaka Chamber of Commerce & Industries, Dhaka

4 Foreign Chamber of Commerce & Industries, Dhaka

 

 

BUSINESS TREND & PROSPECT

 

Business Scale           

Large

Business Trend

Growing

Management Capability

Good

Reputation

Good

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.56.49

UK Pound

1

Rs.86.81

Euro

1

Rs.73.68

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

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.