MIRA INFORM REPORT

Report No. :	325736
Report Date :	09.06.2015

IDENTIFICATION DETAILS

Name :	SINOBANGLA INDUSTRIES LTD.
Registered Office :	Navana DH Tower (9th Floor, Suit, 901 & 902), 6, Panthapath, Dhaka-1215
Country :	Bangladesh
Financials (as on) :	31.01.2015
Date of Incorporation :	13.11.1996
Com. Reg. No.:	C-31752
Legal Form :	Public Listed Co
Line of Business :	Manufacturer, Distributor and Exporter of FIBC (Jumbo Bags), Multiply Kraft Paper- laminated cement Sacks and Woven PP Bags.
No. of Employees :	1472

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 – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
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

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, accounted for more than 80% of total exports and surpassed $18 billion in 2014. 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 $14 billion and 8% of GDP in 2014 - are the largest contributors to Bangladesh’s current account surplus and rising foreign exchange holdings.

Source : CIA

IDENTIFICATION DETAILS

Correct company Name	:	Sinobangla Industries Ltd.
Head Office	:	Navana DH Tower (9th Floor, Suit, 901 & 902), 6, Panthapath, Dhaka-1215, Bangladesh
Tel No	:	88-02-55013456-8
Fax No	:	88-02-8624495
E-mail	:	sbil@sinobangla.com
Website	:	www.sinobangla.com
Date/ Year of Incorporation	:	13/11/1996
Incorporation No.	:	C-31752
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 / (Loss)
31/01/2014	BDT 300,914,000	BDT 1,528,720000	BDT 4,602,000
31/01/2015	BDT 321,649,000	BDT 1,499,689,000	BDT 4,032,000
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. Mohammad Saif Uddin
Designation	:	Company Secretory
Contract No	:	N/A

Locations Details

Operating Address	:	Navana DH Tower (9th Floor, Suit, 901 & 902), 6, Panthapath, Dhaka-1215, Bangladesh
Tel No	:	88-02-55013456-8
Fax No	:	88-02-8624495
E-mail	:	sbil@sinobangla.com
Website	:	www.sinobangla.com

Location :

: Owned

Rented

Ö

Leased

Area

3400

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	:	Boro Bakujandhi, Gazaria, Munshigonj, Bangladesh
Tel No	:	Nil
Fax No	:	Nil

Location :

Owned

Ö

Rented

Leased

Area

1,32,000

Sq. ft.

Corporate Office:
Address	:	Noor Tower (4th Floor), 110 Bir Uttam, C.R. Dutta Road,Dhaka-1205, Bangladesh
Tel No	:	88-02-9676963, 8628561
Fax No	:	Nil
Branches:
Address	:	Hotel Purbani Annex-2, (4th Floor), 1 Dilkusha C/A, Dhaka-1000, Bangladesh
Tel No	:	Nil
Fax No	:	Nil

Employee

No. of Employees	In Office	:	85	In Factory	:	1387
	In Branch:	:		Total	:	1472
Details:

OWNERSHIP/SHAREHOLDERS

Names of Shareholders	No. of Share
Mr. Abdur Rashid	1000000
Mr. Abdul Ahad	1000500
Mr. Majiang	1509400
Mr. Tsui Ki Lam	405200
Mr. Abul Hasnat Khan	1002500
Mrs. Momtaj Begum	200000
Mr. Enamul Hoq	1003000
General Public	13876000

DIRECTORS

Name	Designation
Mr. Majiang	Chairman
Mr. Abdur Rashid	Managing Director
Mr. Abdul Ahad	Director
Mr. Tsui Ki Lam	Director
Mr. Abul Hasnat Khan	Director
Mr. Enamul Hoq	Director
Mr. Md. Rafiqul Islam	Independent Director

MANAGEMENT

Name	:	Mr. Mohammad Saif Uddin
Job Description	:	Company Secretory
Nationality	:	Bangladeshi.
Email address	:	N/A
Other details	:	N/A

Name	:	Mr. Md. Shariful Mowla
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	Services	Others

Range of Products:
Products	:	FIBC (Jumbo Bags), Multiply Kraft Paper- laminated cement Sacks and Woven PP Bags.
Production Capacity	:	15 Tons per day
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	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			:	Europe
		Imports			:	India, China
Brand Name			:	N/A
Certified			:	N/A
Auditors			:	Mr. Haque Shahalam Mansur & Co. Mr. Kazi Zahir khan & Co
Operation Status			:	Active
Member			:	Dhaka Chamber of Commerce and Industry

CAPITAL STRUCTURE

Authorized Capital	:	BDT 1000 Million
Paid-up Capital	:	BDT 199966000	No. of Shares	: 19996600	Share Value	:	BDT10.00Each
Main Assets	:	BDT 1,499,689,000

FINANCIAL STATEMENT- DETAILED

Balance Sheet :
	Currency	BDT
	Denomination	: 1
	Financial Year Ending	:July,31~June,30
Financial Highlights	31/01/2015	31/01/2014
Assets;
Non-Current Assets
Fixed Assets less accumulated depreciation	525423,000	532273,000
Capital Work -n- Progress	17294,000	17433,000
Investment in unit-1	245304,000	245304,000
Investment to Dutch Bangla Bank Ltd	34318,000	34318,000
Investment on FDR	12183,000	12057,000
Total Non-Current Assets	834522,000	841385,000
Current Assets, Loans & Advances
Inventories	178,633,000	163,365,000
Trade Debtors	160,956,000	177,282,000
Bills Receivable	44,191,000	43,662,000
Advance, Deposits & prepayments	199,327,000	199,190,000
Inter Transfer to Unit-II	67,126,000	93,864,000
Cash & Bank Balances	14,934,000	9,978,000
	665,167,000	687,335,000
Total ASSETS
Equity &. Liabilities	1,499,689,000	1,528,720,000
Shareholder’s Equity
Share Capital	199,966,000	199,966,000
Share Premium	99,983,000	99,983,000
General Reserve	43,196,000	49,196,000
Reserve for revaluation of Fixed Assets	5,367,000	5,505,000
Retained Earnings	142,820,000	138,080,000
	491,332,000	486,730,000
Non-Current Liabilities
Investment From Unit-I	245,304,000	245,304,000
Deferred Tax Liability (assets)	3,749,000	2,486,000
Secured Loan	109,457,000	110,229,000
	358,510,000	358,019,000
Current Liabilities and Provisions
Long Term Loan- Current Portion	29,473,000	32,120,000
Short Term Loan - Secured	287,854,000	307,289,000
Sunray Credited & Liabilities For Expenses	188731,000	175,507,000
Inter Transfer From Unit-I	67,126,000	93,864,000
Provision for WPPF	2,284,000	1,936,000
Provision For Income Tex	34,781,000	33,677,000
Advance Against Sales	26,502,000	26,311,000
Unclaimed Dividend	13,105,000	13,267,000
	649,847,000	683,971,000
Total Equity & Liabilities	1,499,689,000	1,528,720,000
Net Assets Value(NAV)Per Share	24.57,000	24,34,000

Income Statement :
	Currency	:BDT
	Denomination	: 1
	Financial Year Ending	:July,31~June,30
Financial Highlights	31/01/2015	31/01/2014
Turnover	321,649,000	300,914,000
Cost of Goods Sold	(278,483,000)	(263,242,000)
Gross Profit	43,166,000	37,672,000
Operating Expenses
Administrative Selling Expenses	(22,015,000)	(18.091,000)
	(22,015,000)	(18.091,000)
Operation Profit	21,151,000	19,581,000
Other Income	317,000	205,000
Financial Expenses	(14,151,000)	(17,298,000)
Profit before WPPF	7,317,000	2,488,000
Contribution to WPPF	(348,000)	(118,000)
Profit Before Tax	6,969,000	2,370,000
Income Tax Expenses
Current Tax	(1,104,000)	(329,000)
Deferred Tax	(1,263,000)	1,991,000
	(2,367,000)	1,662,000
Profit/(loss) After Tex	4,602,000	4,032,000
Earnings Per Share (EPS)	0.23,000	0.20,000

ASSOCIARES/SUBSIDIARIES/ RELATED PARTIES

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

BANKING

Bank Name	:	Bank Asi Ltd Eastern Bank Limited Eastern Bank Limited Dutch Bangla Bank Ltd Shahjalal Islami Bank Ltd Standard Chartered Bank Ltd Hong Kong Shanghai Banking Corporation
Bank Address	:	N/A

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 Navana DH Tower (9th Floor, Suit, 901 & 902), 6, Panthapath, Dhaka-1215, Bangladesh. It is situated at Semi -commercial area.

GENERAL COMMENTS

The subject company is engaged in manufacturer, Exporter & Distributors. It is reputed company in this line of business.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.64.11
UK Pound	1	Rs.97.84
Euro	1	Rs.71.12

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	VNT

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%)

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