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3decades

 

MIRA INFORM REPORT

 

 

Report No. :

490199

Report Date :

12.02.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

SALEK TEXTILE LTD.

 

 

Registered Office :

Mehnaj Mansoor Tower, House # 11/A, Road # 130, Gulshan-1, Dhaka-1206

 

 

Country :

Bangladesh

 

 

Financials (as on) :

June 2017

 

 

Date of Incorporation :

09.09.2007

 

 

Com. Reg. No.:

C-68304  

 

 

Legal Form :

Public Listed Co

 

 

Line of Business :

Manufacturer, Distributor, Exporter and Importer of Denim Fabrics

 

 

No. of Employees :

2944

 

 

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23rd January 2017)

 

MIRA’s Rating :

A

 

Credit Rating

Explanation

Rating Comments

A

Acceptable Risk

Business dealings permissible with moderate risk of default

 

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

 

Country Name

Previous Rating

(30.06.2017)

Current Rating

(30.09.2017)

Bangladesh

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 

 

BANGLADESH - ECONOMIC OVERVIEW

 

Bangladesh's economy has grown roughly 6% per year since 1996 despite prolonged periods of political instability, poor infrastructure, endemic corruption, insufficient power supplies, and slow implementation of economic reforms. Although more than half of GDP is generated through the services 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 were on track to again surpass $25 billion in 2017. The sector continues to grow, despite the need for improvements in factory working conditions to avert further high-profile accidents that have killed more than 1,000 workers in recent years. Steady export growth in the garment sector combined with remittances from overseas Bangladeshis - which totaled about $13 billion and 6% of GDP in 2016 - are key contributors to Bangladesh's sustained economic growth and rising foreign exchange reserves.

The recent influx of hundreds of millions of additional refugees from Burma will place pressure on the Bangladeshi government’s budget and the country’s rice supplies, which declined in 2017 in part because of adverse weather.

 

Source : CIA

EXECUTIVE SUMMARY

 

                                                IDENTIFICATION DETAILS

Correct company Name

:

Salek Textile Ltd.

Head Office

:

Mehnaj Mansoor Tower, House # 11/A, Road # 130, Gulshan-1,

Dhaka-1206, Bangladesh.

Tel No

:

88-02-8832771-82, 9888917

Fax No

:

88-02-8828953

E-mail

:

allabj@dhaka.net

Website

:

www.malekspinning.com

Date/ Year of Incorporation

:

09.09.2007

Incorporation No.

:

C-68304  

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)

 

 

Other Registry & Certification Details

 

Organization Name

:

Bangladesh Textile Mills Association

Membership No

:

N/A

 

 

FINANCIALS- SUMMARY

      Year

Turnover/ Sales

 Assets

     Income

30th June, 2016

BDT 4123014573

BDT 6429028293

BDT 87742152

30th June, 2017

BDT 3975248739

BDT 6195665769

BDT 78458486

 

 

 

 

FULLCHECK REPORT DETAILS

 

                                                             Information Parted By

Name

:

Mr. Mohiuddin

Designation

:

Manager

Contract No

:

N/A

 

                                                               Locations Details

Operating Address

:

Mehnaj Mansoor Tower, House # 11/A, Road # 130, Gulshan-1,

Dhaka-1206, Bangladesh.

Tel No

:

88-02-8832771-82, 9888917

Fax No

:

88-02-8828953

E-mail

:

allabj@dhaka.net

Website

:

www.malekspinning.com

 

Location :

: Owned

 

Rented

Ö

 

Leased

 

Area

2400

Sq. ft.

 

 

Type of Office

  :       Commercial Office Bldg.

 

 

Semi-commercial office Bldg.

 

     

Retail shop

 

 

Industrial Park

 

     

Business Center

 

 

Home Office

 

     

Residential Bldg.

Ö

 

 

 

 

 

Factory:

 

 

 

 

 

Address

:

Mahna, Bhabanipur, Gazipur, Bangladesh.

Tel No

:

Nil

Fax No

:

Nil

 

Branch:

Address

:

5, Mohakhali C/A, Gulshan, Dhaka-1212 Bangladesh. 

Tel No

:

88-02-9882107, 9887242

Fax No

:

88-02-8821394 

 

Registered Address:

Address

:

117/A, Tejgaon I/R, Dhaka-1215, Bangladesh

Tel No

:

Nil

Fax No

:

Nil 

 

Employee:

 

 

 

No. of Employees 

 

In Office

:

120

In Factory

:

2824

In Branch:

:

N/A

Total

:

2944

Details:

 

                    

 

 

 

 

 

OWNERSHIP/SHAREHOLDERS

 

Names of Shareholders

No. of Share

Country

Malek Spinning Mills limited

47259700

Bangladesh.

Mr. A. Matin Chowdhury

489780

Bangladesh.

Mr. Dr. Shamim Matin Chowdhury

339340

Bangladesh.

Ms. Saima Matin Chowdhury

410

Bangladesh.

Mr. Azizur R Chowdhury

510

Bangladesh.

Mr. A. F. M. Zubair

169830

Bangladesh.

Mr. Moshiur Rahman

650

Bangladesh.

Mr. Shyan Zubair

650

Bangladesh.

 

 

DIRECTORS

 

Name

:

Mr. A. F. M. Zubair

Designation

:

Chairman

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

Name

:

Mr. A. Matin Chowdhury

Designation

:

Managing Director

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

Name

:

Mr. Dr. Shamim Matin Chowdhury

Designation

:

Director

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

Name

:

Ms. Saima Matin Chowdhury

Designation

:

Director

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

Name

:

Mr. Azizur R Chowdhury

Designation

:

Director

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

Name

:

Mr. Moshiur Rahman

Designation

:

Director

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

Name

:

Mr. Shyan Zubair

Designation

:

Director

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

Name

:

Mr. M. Sekander Ali

Designation

:

Independent Director

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

 

MANAGEMENT

 

Name

:

Mr. A. Matin Chowdhury

Job Description

:

Managing Director

Nationality

:

Bangladeshi

Email address

:

N/A

Other details

:

Nil

 

Name

:

Mr. Mohiuddin

Job Description

:

Manager

Nationality

:

Bangladeshi

Email address

:

N/A

Other details

:

N/A

 

Name

:

Mr. Syed Saiful Haque

Job Description

:

Company Secretary

Nationality

:

Bangladeshi

Email address

:

N/A

Other details

:

N/A

 

Name

:

Mr. Mamunur Rashid

Job Description

:

Manager (Commercial)

Nationality

:

Bangladeshi

Email address

:

N/A

Other details

:

88-01675918315

 

Name

:

Mr. B.K. Chaki

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

:

Denim Fabrics

Production Capacity

:

Yarns: 14,621,000 Kgs. Per Year

Fabrics: 9,600,000 Yards Per Year

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

:

Zara

Avon

H&M

Hanes

Bershka

Decathlon

 

Local Clients

:

N/A

 

Overseas Suppliers

:

N/A

 

Local Suppliers

:

N/A

 

Trade Markets

:

 

Exports(Country)

:

Europe

 

Imports(Country)

:

India, China, Italy

 

Brand Name

:

N/A

Certified

:

N/A

Name of Auditors

:

Mr. Malek Siddiqui Wali

Chartered Accountants

9-G, Motijheel, C/A, Dhaka-1000, Bangladesh

Operation Status

:

Active

 

CAPITAL STRUCTURE

 

Authorized Capital

:

BDT 3000 Million

 

Paid-up Capital

:

BDT 482608700

 

No. of Shares

:

48260870

 

Share Value

:

BDT10.00Each

 

Main Assets

:

BDT 6195665769 Million

 

 

FINANCIAL STATEMENT- DETAILED

 

Balance Sheet :

 

  Currency

BDT

 

       Denomination

: 1

 

         Financial Year Ending

: 30th June, 2017

     Financial Highlights

 June’ 2017

       June’ 2016

Particulars

 

 

Assets :

 

 

Non-Current Assets:

 

 

Property, Plant and Equipment

2,608,619,324

2,615,351,359

Capital Work-in-Progress

203,228,808

59,157,000

Goodwill

168,600,020

168,600,020

 

2,980,448,152

2,843,108,379

Current Assets :

 

 

Inventories

1,446,953,961

1,698,893,133

Advance, Deposit and Pre-Payments

418,042,454

220,693,388

Accounts Rceivable

1,192,302,053

1,570,423,304

Cash and Cash Equivalents

157,919,149

95,910,089

 

3,215,217,617

3,585,919,914

Total Asssets :

6,195,665,769

6,429,028,293

SHAREHOLDER'S EQUITY

AND LIABILITIES:

 

 

Shareholder's Equity :

 

 

Share Capital

482,608,700

482,608,700

Share Premium

601,754,814

601,754,814

Re-valuation Surplus

372,728,706

410,239,959

Tax Holiday Reserve

215,491,736

215,491,736

Retained Earnings

1,044,271,597

928,301,857

 

2,716,855,553

2,638,397,067

Non-Current Liabilities:

 

 

Long Term Loan

854,119,050

958,622,517

Deferred Tax Liabilities

135,846,712

141,473,400

 

989,965,762

1,100,095,917

Current Liabilities :

 

 

Short Term Loan

211,906,983

177,151,515

Current Portion of Long Term Loan

339,127,943

336,358,966

Bank Acceptance Liabilities

1,217,603,747

1,485,796,857

Creditors and Accruals

720,205,781

691,227,971

 

2,488,844,454

2,690,535,309

Total Shareholders’ Equity &

Liabilities:

6,195,665,769

6,429,028,293

Net Assets Value Per Share (NAV)

56.30

54.67

 

 

Income Statement :

 

  Currency

:BDT

 

       Denomination

: 1

 

         Financial Year Ending

:30th June, 2017

     Financial Highlights

June’ 2017

       June’ 2016

Particulars

 

 

Sales

3,975,248,739

4,123,014,573

Cost of Goods Sold

(3,550,102,716)

(3,672,598,151)

Gross Profit/(Loss) :

425,146,023

450,416,422

Operating Expenses

(121,286,485)

(113,271,045)

Financial Expenses

(235,541,375)

(228,064,024)

Operating Profit/(Loss) :

68,318,163

109,081,354

Other Income/(Loss)

23,943,493

2,710,107

Net Operating Profit/(Loss) :

92,261,657

111,791,461

Provision for Contribution to WPPF

(3,595,499)

(5,323,403)

Profit/(Loss) before Tax :

88,666,158

106,468,058

Provision for Income Tax :

(10,207,672)

(18,725,906)

Current Tax

(15,834,360)

(24,957,176)

Deferred Tax

5,626,688

6,231,270

Net Profit/(Loss) after tax

78,458,486

87,742,152

Other Comprehensive Income

-

-

Total comprehensive income

78,458,486

87,742,152

Earnings Per Share (EPS)

1.63

1.82

Number of Shares used to

compute EPS

48,260,870

48,260,870

 

 

ASSOCIARES/SUBSIDIARIES/ RELATED PARTIES

 

Sister Concerns

:

Knit Asia Ltd

JM Fabrics Ltd.

Design Asia Ltd.

New Asia Limited

Rahim Textile Mills Ltd.

Mother Company

:

Malek Spinning Mills Limited

Name of  The Group

:

New Asia Group

BANKING

 

Bank Name  

:

Islami Bank Bangladesh Ltd.

Bank Address

:

Kawran Bazar branch.

T. K. Bhaban (1st Floor), 13, Kazi Nazrul Islam Avenue, Dhaka-1215,

Bangladesh

Tel: 88-02-9137571, 8155211

Fax: 88-02-8117587

 

Bank Name  

:

Hong Kong Shanghai Banking Corporation.

Bank Address

:

Dhaka Main Branch.     

Anchor Tower, 108, Bir Uttam C R Dutta Road, Dhaka-1205, Bangladesh

Tel: 88-02-9660536-43

Fax: 88-02-9660554

 

Bank Name  

:

Eastern Bank Ltd.

Bank Address

:

Agrabad Branch           

Jiban Bima Bhaban, 10 Dilkusha C/A, Dhaka-1000, Bangladesh

Tel: 88-02-9558392, 9565696, 9571262

Fax: 88-02-7160747

 

 

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 address at Mehnaj Monsur Tower, House# 11A, Road# 130, Gulshan-1, Dhaka-1212, Bangladesh. It is Situated at Residential Area.

 

 

GENERAL COMMENTS

 

The subject company is a well-known reputed company in Bangladesh.  It is reputed company in this line of business.

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

INR 64.37

UK Pound

1

INR 89.71

Euro

1

INR 78.89

BDT

1

INR 0.78

 

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

NIS

 

 

Report Prepared by :

TRU

 

 

RATING EXPLANATIONS

 

Credit Rating

Explanation

Rating Comments

A++

Minimum Risk

Business dealings permissible with minimum risk of default

A+

Low Risk

Business dealings permissible with low risk of default

A

Acceptable Risk

Business dealings permissible with moderate risk of default

B

Medium Risk

Business dealings permissible on a regular monitoring basis

C

Medium High Risk

Business dealings permissible preferably on secured basis

D

High Risk

Business dealing not recommended or on secured terms only

NB

New Business

No recommendation can be done due to business in infancy stage

NT

No Trace

No recommendation can be done as the business is not traceable

 

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

 

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 are as follows:

 

·         Financial condition covering various ratios

·         Company background and operations size

·         Promoters / Management background

·         Payment record

·         Litigation against the subject

·         Industry scenario / competitor analysis

·         Supplier / Customer / Banker review (wherever available)

 

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.