MIRA INFORM REPORT

Report Date :

30.06.2014

IDENTIFICATION DETAILS

Name :	ARGON DENIMS LIMITED
Registered Office :	Lotus Kamal Tower One ( Level 7), 57, Joar Sahara C/A, Nikunja-2, New Airport Road, Dhaka-1229
Country :	Bangladesh
Financials (as on) :	31.12.2013
Date of Incorporation :	13.07.2006
Com. Reg. No.:	C-62713
Legal Form :	Public Listed Co
Line of Business :	Manufacturer and Exporter of Fabrics in 100% cotton, Cotton Stretch, Cotton Polyester and Cotton Polyester Stretch are made in optics like Slub, Crosshatch, Mixed counts and Regular with various weaves like Plain, Twill, Broken twill and Herringbone offered in different finishes like preshrunk, flat, over dyed and coated. Our dyeing line is equipped for Light and Dark Indigo, Sulphur Black, SBIT, IBST with casts and colors.
No. of Employees	500

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 – March 31, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
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

Bangladesh's economy has grown roughly 6% per year since 1996 despite political instability, poor infrastructure, corruption, insufficient power supplies, slow implementation of economic reforms, and the 2008-09 global financial crisis and recession. Although more than half of GDP is generated through the service sector, almost half of Bangladeshis are employed in the agriculture sector with rice as the single-most-important product. Garment exports, the backbone of Bangladesh’s industrial sector and 80% of total exports, surpassed $21 billion last year, 18% of GDP. The sector has remained resilient in recent years amidst a series of factory accidents that have killed over 1,000 workers and crippling strikes that shut down virtually all economic activity. Steady garment export growth combined with remittances from overseas Bangladeshis, which totaled almost $15 billion and 13% of GDP IN 2013, are the largest contributors to Bangladesh’s current account surplus and record foreign exchange holdings.

Source : CIA

EXECUTIVE SUMMARY

IDENTIFICATION DETAILS
Correct company Name	:	ARGON DENIMS LIMITED
Head Office	:	Lotus Kamal Tower One ( Level 7), 57, Joar Sahara C/A, Nikunja-2, New Airport Road, Dhaka-1229, Bangladesh.
Tel No	:	880-2-896 1552, 1553
Fax No	:	880-2-8961941
E-mail	:	info@argondenims.com
Website	:	www.argondenims.com
Date/ Year of Incorporation	:	13.07.2006
Converted into Public Limited	:	May 31, 2011
Incorporation No.	:	C-62713
Trading Name	:	ARGONDENIM
Legal Form (General)	:	Public Listed Co Public (but not listed) Private Co State-owned Co Sole Proprietorships 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
31^st Dec’2013	Tk. 2, 171,292,501	Tk. 383,28,99,539	Tk. 30,47,07,471
31^st Dec’2012	Tk. 1,58,84,41,173	Tk. 500,09,36,073	Tk. 1,84,617,270
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

FULLCHECK REPORT DETAILS

Information Parted By
Name	:	Mr. Abu Kawser Majumder.
Designation	:	Director.
Contract No	:	-

Locations Details
Operating Address	:	Lotus Kamal Tower One ( Level 7), 57, Joar Sahara C/A, Nikunja-2, New Airport Road, Dhaka-1229, Bangladesh.
Tel No	:	880-2-896 1552, 1553
Fax No	:	880-2-8961941
E-mail	:	info@argondenims.com
Website	:	www.argondenims.com

Location :

: Owned

Ö

Rented

Leased

Area

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	:	Beraider Chala, P.O.:Gilaberaid, P.S: Sreepur, Gazipur, Bangladesh.
Tel No	:	Nil
Fax No	:	Nil

Location :

Owned

Ö

Rented

Leased

Area

Sq. ft.

Registered Address:
Address	:	Plot-33, section 7, Mirpur, Dhaka-1216, Bangladesh.
Tel No	:	88-02-9020491-5, 9004405
Fax No	:	88-02-9020490.

Employee:
No. of Employees	In Office	:	33	In Factory	:	467
	In Branch:	:	-	Total	:	500
Details:

OWNERSHIP/SHAREHOLDERS

Names of Shareholders	No. of Share
Mr. Shabnam Shehnaz Chowdhury	4,500,000
Mr. Anwar -ul Alam Chowdhury	5,390,000
Mr. Shah Adeeb Chowdhury	3,600,000
Mr. Shah Rayeed Chowdhury	2,400,000
Mrs. Sanjana Shehnaz Chowdhury	132,000
Mr. Md. Akhter Shahid	5179200
Mrs. Suraya Akhter	93600
Mrs. Adiba Akhter	93600
Mr. Samir Akhter	93600
Mr. A.K.Gouhor Rabbani	7190000
Mrs. Farhana Haque	226800
Mrs. Elma Zuairia Rabbani	133200
Mrs. Elham Farhan Rabbani	133200
Mr. Ibram Farhan Rabbani	133200
Mr. Abu Kawser Majumder	7190400
Mr. Areefa Akhter	223200
Mr. Farhan Majumder	133200
Mr. Farhaz Kawser	133200
Institution & General Public	35021600

DIRECTORS

Name	Designation
Mrs. Shabnam Shehnaz Chowdhury	Chairperson
Mr. Anwar-ul Alam Chowdhury	Managing Director
Mr. Abu Kawser Majumder	Director
Mr. A.K. Gouhor Rabbani	Director
Mr. Md. Akhter Shahid	Director
Mr. Shah Adeeb Chowdhury	Director
Mr. Shah Rayeed Chowdhury	Director
Mr. Faizul hakim Khan	Independent Director
Prof. Dr. Shahid Uddin Ahmed	Independent Director

MANAGEMENT

Name	:	Itrat Husain, FCMA, FCS
Job Description	:	Company Secretary & CFO.
Nationality	:	Bangladeshi
Email address	:	itrat@argondenims.com
Other details	:	Tel: 88-02-8961552-4, Fax: 88-02-8961941
Name	:	M. Shakil Islam Bhuiyan
Job Description	:	Chief Executive Officer
Nationality	:	Bangladeshi
Email address	:	shakil.bhuiyan@lankabanglainvestments.com
Other details	:	Tel: 88-02-7113585, Fax: 88-02-7115756

BUSINESS OPERATIONS

Nature of Activity :	Manufacturer	Ö	Trader	Dealer	Distributor
	Exporter	Ö	Importer	Services	Others

Range of Products:
Products	:	Fabrics in 100% cotton, Cotton Stretch, Cotton Polyester and Cotton Polyester Stretch are made in optics like Slub, Crosshatch, Mixed counts and Regular with various weaves like Plain, Twill, Broken twill and Herringbone offered in different finishes like preshrunk, flat, over dyed and coated. Our dyeing line is equipped for Light and Dark Indigo, Sulphur Black, SBIT, IBST with casts and colors.
Production Capacity	:	N/A
Last Year Production	:	N/A

Trading Terms:

Purchasing Terms:	L/C	Ö	Cash	Others
	Credit :		30 days	60 days	Ö	90 days	days

Selling Terms :	L/C	Ö	Cash	Others
	Credit :		30 days	60 days	Ö	90 days	days

DETAILED DATA

Trade Reference & Related Parties	:	Overseas Clients			:	N/A	Local Clients	:	N/A
		Overseas Suppliers			:	N/A	Local Suppliers	:	N/A
Trade Markets	:	Exports			:	N/A
		Imports			:	N/A
Brand Name			:	N/A
Certified			:	N/A
Auditors			:	PINAKI & CO. Chartered Accountants 2/4, Nawab Habibullah Road (1st Floor), Shahbag, Dhaka-1000 Phone: +88 02 966 09 44, 966 50 95; Fax: +88 02 967 27 26; e-mail: pinaki_co@yahoo.com
Operation Status			:	Active.
Member			:	Bangladesh Garments Manufacturer & Exporters Association.

CAPITAL STRUCTURE

Authorized Capital	:	Tk. 1,000,000,000
Paid-up Capital	:	Tk. 72,00,00,000	No. of Shares	:	720,00,000	Share Value	:	Tk.10.0Each
Main Assets	:	Tk. 500,09,36,073

FINANCIAL STATEMENT- DETAILED

Currency	: Tk.
Denomination	: 1
Financial Year Ending	: 31^st December’2013

Income Statement :
	Currency	: Tk.
	Denomination	: 1
	Financial Year Ending	: 31^st December 2013

ASSOCIARES/SUBSIDIARIES/ RELATED PARTIES

Sister Concerns	:	Nil
Subsidiary	:	N/A
Name of The Group	:	Nil

BANKING

Bank Name	:	One Bank Ltd.
Bank Address	:	Corporate Head Office Branch. HRC Bhaban, 46, Kawran Bazar C/A, Dhaka-1215
Bank Name	:	Mercantile Bank Ltd.
Bank Address	:	Mirpur Branch. Rokeya Sarani, Razia Plaza (1st Floor) 184, Shenpara Parbota, Mirpur - 10, Dhaka- 1216 Phone : 9008852, 9015661, 8034577, 8034588 Mobile : 01711-535955 Fax : 88-02-8034577

Bank Name

:

Prime Bank Ltd. Standard Chartered Bank Brac 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 Lotus Kamal Tower One (Level 7), 57, Joar Sahara C/A, Nikunja-2, New Airport Road, Dhaka-1229, Bangladesh. The subject company Chief Executive Officer M. Shakil Islam Bhuiyan welcome us & given us all information. Its office is situated at Semi-commercial area which is well decorated.

GENERAL COMMENTS

Subject is mainly engaged in Manufacturer & Exporter of Denim Fabrics. 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.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.10
UK Pound	1	Rs.102.40
Euro	1	Rs.81.88

INFORMATION DETAILS

Analysis Done by :	KAR
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.