MIRA INFORM REPORT

 

 

Report Date :

29.12.2014

 

IDENTIFICATION DETAILS

                       

Name :

SQUARE TEXTILE LIMITED

 

 

Registered Office :

Mascot Plaza (11-12th Floor) Plot-107/A, Sector# 7, Uttara, Dhaka-1230

 

 

Country :

Bangladesh

 

 

Financials (as on) :

31.12.2013

 

 

Year of Establishments :

1994

 

 

Com. Reg. No.:

C-26860

 

 

Legal Form :

Public Listed Company       

 

 

Line of Business :

Engaged as Manufacturer, Distributor, Exporter, & importer of Cotton Ring Spun Yarn for hosiery

 

 

No of Employees :

1907 (50 in Office & 1857 in Factory)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

Payment Behaviour :

Regular

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

Bangladesh

a2

a2

 

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

 

IDENTIFICATION DETAILS

 

Correct company Name

:

Square Textile Limited

Head Office

:

Mascot Plaza (11-12th Floor) Plot-107/A, Sector# 7, Uttara, Dhaka-1230, Bangladesh.

Tel No

:

88-02-8963227, 8963547, 8951101-7

Fax No

:

88-02-8952652

E-mail

:

info@squaregroup.com  , hasan.belal@squaregroup.com

textiles@squaregroup.com

Website

:

www.textile.squaregroup.com

Year of Incorporation

:

1994

Incorporation No.

:

C-26860

Legal Form (General)

:

 Public Listed Co        Public (but not listed)   Private Co   State-owned Co

 Sole Proprietorship  Partnership                     Not Registered

 others (please specify) ________________

 

Legal form (Specific)

:

LTD   CORP    INC  CO    

 others (please specify) ________________

 

Issuing Authority

:

Registrar of Joint Stock Companies & Firms   City Corporation

 Municipal Administration                                   Union Council

 Cantonment Board                                              Chief Controller of  Import & Export (CCIE)

 

 

FINANCIALS- SUMMARY

 

      Year

Turnover/ Sales

 Assets

     Income

31st December 2012

BDT  5,431,437,667

BDT 4,389,591,043

BDT 588,715,169

31st December 2013

BDT 5,238,437,265

BDT 4,095,602,705

BDT 587,782,036

Exchange Rate

USD1-Tk. 77.8200

EUR 1- Tk. 100.2711

GBP 1- Tk.118.5354

AUD 1 - Tk.82.8563

JPY 1 - Tk.0.9286

CAD 1 - Tk.80.1887

SEK 1 - Tk.12.2870

SGD 1 - Tk.65.3045

CNH 1 - Tk.12.8399

 

Information Parted By

 

 

 

Name

:

Mr. Khandaker Habibuzzaman.

Designation

:

Company Secretary.

 

Locations Details

 

Operating Address

:

Mascot Plaza (11-12th Floor) Plot-107/A, Sector# 7, Uttara, Dhaka-1230, Bangladesh.

Tel No

:

88-02-8963227, 8963547, 8951101-7

Fax No

:

88-02-8952652

E-mail

:

info@squaregroup.com , hasan.belal@squaregroup.com

textiles@squaregroup.com

Website

:

www.textile.squaregroup.com

 

Location :

: Owned

Ö

 

Rented

 

 

Leased

 

Area

4800

Sq. ft.

 

 

Type of Office :

  :       Commercial Office Bldg.

Ö

 

Semi-commercial office Bldg.

 

     

 

Retail shop

 

 

Industrial Park

 

     

 

Business Center

 

 

Home Office

 

     

 

Residential Bldg.

 

 

 

 

 

 

 

Factory:

 

 

Address

:

Saradaganj, Kashimpur, Gazipur, Bangladesh.                                                    

Tel No

:

88-02-7701232, 7788257-8

Fax No

:

880 2 7701231, 7789231

 

Location :

   Owned

Ö

 

Rented

 

 

Leased

 

Area

1.5

Acres

 

 

Corporate Headquarter Address:

 

 

 

Address

:

Square Center, 48 Mohakhali C/A, Dhaka-1212, Bangladesh.

Tel No

:

880-2-8833047-56, 8859007, 9861531-40

Fax No

:

88-02-8828768, 8835021, 8828609

 

Employee:

 

 

 

No. of Employees 

 

In Office

:

50

In Factory

:

1857

In Branch:

:

-

Total

:

1907

 

OWNERSHIP/SHAREHOLDERS

 

         Names of Shareholders

                      No. of Share     

Mr. Samuel S Chowdhury

4,212,774

Mrs. Ratna Patra

3,049,210

Mr. Tapan Chowdhury

4,489,604

Mrs. Anita Chowdhury

3,981,856

Mr. Anjan Chowdhury

3,681,212

Mr. Khandaker Habibuzzaman

1,473

Mr. Mostaque Ahmed Siddiqui

4,288

Square Pharmaceuticals Limited

61,607,069

General Public

53392785

 

 

DIRECTORS

 

Name

Designation

Mr. Samuel S Chowdhury

Chairman

Mrs. Ratna Patra

Vice Chairman

Mr. Tapan Chowdhury

Managing Director

Mrs. Anita Chowdhury

Director

Mr. Anjan Chowdhury

Director

Mr. M. Sekander Ali

Independent Director

Syed Afzal Hasan Uddin

Independent Director

 

 

MANAGEMENT

 

Name

:

Mr. Khandaker Habibuzzaman.

Job Description

:

Company Secretary.

Nationality

:

Bangladeshi

Email address

:

N/A

Other details

:

N/A

 

 

 

Name

:

Mr. Mostaque Ahmed Siddiqui

Job Description

:

Chief Operating Officer

Nationality

:

Bangladeshi

Email address

:

N/A

Other details

:

N/A

 

Name

:

Mr. Alamgir Hossain

Job Description

:

Chief Financial Officer.

Nationality

:

Bangladeshi

Email address

:

N/A

Other details

:

N/A

 

BUSINESS OPERATIONS

 

Nature of Activity       :

Manufacturer

Ö

Trader

 

Dealer

 

Distributor

Ö

 

 

 

Exporter

Ö

Importer

Ö

Services

 

Others

 

 

Range of Products:

 

Products

:

Cotton Ring Spun Yarn for hosiery

Production Capacity

:

Unit 1 : Daily production capacity of 20,000 kgs.

Unit 2 : Daily production capacity of 20,000 kgs

Unit 3 : Daily production capacity of 20,000kgs

Last Year Production

:

Do.

 

 

Trading Terms:

 

Purchasing Terms:

L/C

Ö

Cash

 

Others

 

 

 

Credit :

 

30 days

 

60 days

Ö

90 days

 

 

days

 

Selling Terms      :

L/C

 

Cash

Ö

Others

 

 

 

Credit :

Ö

30 days

 

60 days

 

90 days

 

 

days

 

 

DETAILED DATA

 

Trade Reference & Related Parties

:

 

Overseas Clients

:

Target, Kappa, Levis, Mascot, Zara, H&M, C&A, Wal-Mart, K-Mart, Okaidi, Kohl, Etc.

Local Clients

:

N/A

 

Overseas Suppliers

:

N/A

Local Suppliers

:

N/A

 

Trade Markets

 

:

 

Exports

:

Europe, USA

 

Imports

:

China, India, Thailand, Singapore.

 

 

 

Brand Name

:

N/A

Certified

:

N/A

Auditors

:

M/s. Das Chowdhury Dutta & Co.

Chartered Accountants

Das Chowdhury Dutta & Co.

Chartered Accountants

Operation Status

:

Active.

Member

:

 Bangladesh Garments Manufacturer & Exporters Association

 

CAPITAL STRUCTURE

 

 

Authorized Capital

:

BDT 3,000 million

 

Paid-up Capital

:

BDT 1,344,202,710

 No. of Shares

:

1,344,202,71

Share Value

:

BDT10.0Each

Main Assets

:

BDT 4,095,602,705

 

 

 

FINANCIAL STATEMENT- DETAILED

 

 

Currency

: Tk

 

       Denomination

: 1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

         Financial Year Ending

: December 31

 

 

Income Statement :

 

  Currency

: Tk

 

       Denomination

: 1

 

         Financial Year Ending

: December 31

    

 

 

 

ASSOCIARES/SUBSIDIARIES/ RELATED PARTIES

 

Sister Concerns

:

Square Pharmaceuticals Ltd.

Square InformatiX Ltd.

Square Textiles Ltd.

Square Spinning Ltd.

Square Consumer Products Ltd.

Square Knit Fabrics Ltd.

Square Fashion Ltd.

Square Agro Development and Processing Ltd.

Square Hospitals Ltd.

Square Herbal and Nutraceuticals Ltd.

Mediacom Limited.

Unitrend Limited.

Mediacom Limited.

Unitrend Limited.

Square Air Limited.

Subsidiary

:

Square Yarns Ltd.

Square Texcom Ltd.

Name of  The Group

:

Square Group.

 

 

BANKING

 

Bank Name  

:

Standard Chartered Bank

Bank Al Falah Limited.  

HSBC

Prime Bank Ltd.

     

 

ADVERSE DATA MONITORING

           

Dishonored Checks           

 

:     

No Record Found         

Debt

 

:

No Record Found

Litigation  

                   

:

Clear         

Performance Defaults

 

:

No Record Found         

Adverse Local Media Coverage/ Adverse Filling History

:

No Record Found

 

 

SITE VISIT COMMENTARY

 

Our representative visited the subject company Head Office which is situated at Mascot Plaza (11-12th Floor) Plot-107/A, Sector# 7, Uttara, Dhaka-1230, Bangladesh. The subject company Mr. Khandaker

Habibuzzaman.-Company Secretary welcome us & given us all information. Its office is decorated by western furniture.

 

 

GENERAL COMMENTS

 

Subject is mainly engaged in Manufacturer & Exporter of Yarn. The subject company maintains acceptable business volume.

Based on the financial statements, SC’s financial performance appears to be Above Average. Having been in operation for several years, Subject enjoys some recognition and impact in the line.

 

Adopted Abbreviations:

NA- Not Available

 TK- Bangladeshi Taka

 

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.64

UK Pound

1

Rs.98.98

Euro

1

Rs.77.74

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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.