3decades

MIRA INFORM REPORT

Report No. :	484501
Report Date :	10.01.2018

IDENTIFICATION DETAILS

Name :	RAK CERAMICS (BANGLADESH) LTD.

Formerly Known As :	RAK CERAMICS (BANGLADESH) PVT. LIMITED

Registered Office :	RAK Tower (7th, 8th & 9th Floor), 1/A, Jasimuddin Avenue, Sector# 3, Uttara Model Town, Dhaka-1230

Country :	Bangladesh

Financials (as on) :	30.09.2017

Date of Incorporation :	26.11.1998

Com. Reg. No.:	C-36813

Legal Form :	Public Listed Company

Line of Business :	Manufacturer, Distributor, Marketing, Exporter and Importer Marble & Mosaic Tiles/Stone, Ceramics Tiles, Bathroom Sets, & all Types of Sanitary Ware.

No. of Employees :	1689

RATING & COMMENTS

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

MIRA’s Rating :

A+

Credit Rating

Explanation

Rating Comments

A+

Low Risk

Business dealings permissible with low risk of default

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

Country Name

Previous Rating

(30.06.2017)

Current Rating

(30.09.2017)

Bangladesh

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 surpassed $25 billion in 2016. The sector continues to grow, despite a series of high-profile factory accidents that have killed more than 1,000 workers and crippling strikes, including a nationwide transportation blockade orchestrated by the political opposition during the first several months of 2015. Steady export growth in the garment sector combined with remittances from overseas Bangladeshis - which totaled about $15 billion and 8% of GDP in 2015 - are key contributors to Bangladesh's sustained economic growth and rising foreign exchange reserves.

Source : CIA

Company name

RAK CERAMICS (BANGLADESH) LTD

EXECUTIVE SUMMARY

*IDENTIFICATION DETAILS*
Correct company Name	:	RAK Ceramics (Bangladesh) Ltd.
Previous Name	:	RAK Ceramics (Bangladesh) Pvt. Limited
Head Office	:	RAK Tower (7th, 8th & 9th Floor), 1/A, Jasimuddin Avenue, Sector# 3, Uttara Model Town, Dhaka-1230, Bangladesh
Tel No	:	88-02-58957393, 58952303
Fax No	:	88-02-58957096
E-mail	:	mktg@rakcerambd.com
Website	:	www.rakcerambd.com
Date/ Year of Incorporation	:	26.11.1998
Incorporation No.	:	C-36813
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

Other Registry & Certification Details

Organization Name	:	Dhaka Chamber of Commerce & Industry
Membership No	:	N/A

FINANCIALS- SUMMARY

Year

Turnover/ Sales

Assets

Income/ (Loss)

31^st Dec’2016

BDT 3965452912

(Jan~ Sep’2016)

BDT 11157590261

BDT 601875459

(Jan~ Sep’2016)

30^th Sep’2017

BDT 5041536285

(Jan~Sep’2017)

BDT 11597611345

BDT 757011854

(Jan~Sep’2017)

FULLCHECK REPORT DETAILS

*Information Parted By*
Name	:	Mr. Kaushik Das
Designation	:	Chief Financial Officer
Contract No	:	Nil

*Locations Details*
Operating Address	:	RAK Tower (7th, 8th & 9th Floor), 1/A, Jasimuddin Avenue, Sector # 3, Uttara Model Town, Dhaka-1230, Bangladesh
Tel No	:	88-02-58957393, 58952303
Fax No	:	88-02-58957096
E-mail	:	mktg@rakcerambd.com
Website	:	www.rakcerambd.com

Location :

: Owned

Rented

Leased

Area

12000

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	:	Dhanua, Sreepur, Gazipur, Bangladesh.
Tel No	:	Nil
Fax No	:	Nil

Location :

Owned

Rented

Leased

Area

6.5

Acres

Branch Office:
Address	:	House# 5 (2^nd & 3^rd Floor), Road# 1/A, Sector# 4, Uttara, Dhaka-1230, Bangladesh.
Tel No	:	Nil
Fax No	:	Nil

Showroom-1:
Address	:	RAK Tower (7^th Floor), Plot# 1/A, Jasimuddin Avenue, Sector# 3, Uttara Dhaka-1230, Bangladesh.
Tel No	:	Nil
Fax No	:	Nil

Showroom-2:
Address	:	318, Free School Street, Hatrilpool, Dhaka-1205, Bangladesh.
Tel No	:	88-02-9664295
Fax No	:	88-02-9613826

Showroom-3:
Address	:	Soto Pool, Agrabad Access Road, Agrabad, Chittagong, Bangladesh.
Tel No	:	Nil
Fax No	:	Nil

Showroom-4:
Address	:	Gazi Burhan Uddin Road, Mendibag, Sylhet, Bangladesh.
Tel No	:	Nil
Fax No	:	Nil

Employee:

No. of Employees	In Office	:	80	In Factory	:	1599
	In Branch	:	10	Total	:	1689
Details:

OWNERSHIP/SHAREHOLDERS

Names of Shareholders	No. of Share	Country
Sponsors & Directors	254853248	Bangladesh.
Corporate Bodies	52459050	Bangladesh.
General Investors	46380843	Bangladesh.

DIRECTORS

1.
Name	:	Mr. Abdallah Massaad
Designation	:	Chairman
Nationality	:	Bangladeshi.
Email address	:	N/A
Other details	:	N/A

2.
Name	:	Mr. S.A.K. Ekramuzzaman
Designation	:	Managing Director
Nationality	:	Bangladeshi.
Email address	:	N/A
Other details	:	N/A

3.
Name	:	Mr. Pramod Kumar Chand
Designation	:	Director
Nationality	:	Bangladeshi.
Email address	:	N/A
Other details	:	N/A

4.
Name	:	Mr. Faheemul Huq, Barrister-at-Law
Designation	:	Independent Director
Nationality	:	Bangladeshi.
Email address	:	N/A
Other details	:	N/A

5.
Name	:	Mr. Wassim Moukahhal
Designation	:	Independent Director
Nationality	:	Bangladeshi.
Email address	:	N/A
Other details	:	N/A

6.
Name	:	Mr. Khaled Abdulla Yousef Abdulla Aal Abdulla
Designation	:	Independent Director
Nationality	:	Bangladeshi.
Email address	:	N/A
Other details	:	N/A

7.
Name	:	Mr. Rafique-ul Huq
Designation	:	Independent Director
Nationality	:	Bangladeshi.
Email address	:	N/A
Other details	:	N/A

MANAGEMENT

Name	:	Mr. S.A.K. Ekramuzzaman
Job Description	:	Managing Director
Nationality	:	Bangladeshi.
Email address	:	N/A
Other details	:	N/A

Name	:	Mr. Md. Jahirull Reza
Job Description	:	General Manager (Purchase)
Nationality	:	Bangladeshi.
Email address	:	N/A
Other details	:	N/A

Name	:	Mr. Md. Mahbubur Rahman
Job Description	:	General Manager (HR & Admin)
Nationality	:	Bangladeshi.
Email address	:	N/A
Other details	:	N/A

Name	:	Mr. Henry Fernandez
Job Description	:	Manager (Production & Tiles)
Nationality	:	Bangladeshi.
Email address	:	N/A
Other details	:	N/A

Name	:	Mr. Samba Siva Rao Kodali
Job Description	:	Manager (Factory)
Nationality	:	Bangladeshi.
Email address	:	N/A
Other details	:	N/A

Name	:	Mr. Velayutham Chelladurai
Job Description	:	Manager (Production)
Nationality	:	Bangladeshi.
Email address	:	N/A
Other details	:	N/A

Name	:	Mr. Mohammed Shamsuddin
Job Description	:	Manager (Taxation)
Nationality	:	Bangladeshi.
Email address	:	N/A
Other details	:	N/A

Name	:	Mr. Imtiaz Hussain
Job Description	:	Chief Executive Officer
Nationality	:	Bangladeshi.
Email address	:	N/A
Other details	:	N/A

Name	:	Mr. Kaushik Das
Job Description	:	Chief Financial Officer
Nationality	:	Bangladeshi.
Email address	:	N/A
Other details	:	N/A

Name	:	Mr. Muhammad Shahidul Islam FCS
Job Description	:	Company Secretary
Nationality	:	Bangladeshi.
Email address	:	N/A
Other details	:	N/A

BUSINESS OPERATIONS

Nature of Activity :	Manufacturer	Ö	Trader		Marketing	Ö	Distributor	Ö

	Exporter	Ö	Importer	Ö	Services		Others

Range of Products:

Products	:	Marble & Mosaic Tiles/Stone, Ceramics Tiles, Bathroom Sets, & All Types Of Sanitary Ware.
Production Capacity	:	225000 Square Meters Per Day Of Ceramics & 8500 Pieces Of Sanitary Wares Per Day.
Last Year Production	:	N/A
Import Products	:	N/A
Export Products	:	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	Ö	Others
	Credit :		30 days		60 days		90 days			days

DETAILED DATA

Trade Reference & Related Parties	:	Overseas Clients			:	Nil
		Local Clients			:	Local whole sellers
		Overseas Suppliers			:	Nil
		Local Suppliers			:	Nil
Trade Markets	:	Exports(Country)			:	USA, Eurozone
		Imports(Country)			:	China, India, Thailand & Malaysia
Brand Name			:	RAK
Certified			:	ISO 9001:2008
Name of Auditors			:	A. Qasem & Co. Chartered Accountants (a member firm of Ernst & Young Global Limited, UK) Gulshan Pink City Suites: 01-03, Level: 07, Plot: 15, Road: 103, Gulshan Avenue, Dhaka-1212, Bangladesh
Operation Status			:	Active

CAPITAL STRUCTURE

Authorized Capital	:	BDT 6000 Million

Paid-up Capital	:	BDT 353693141

No. of Shares	:	353693141

Share Value	:	BDT10.00Each

Main Assets	:	BDT 11597611345

FINANCIAL STATEMENT- DETAILED

Balance Sheet :
Currency		:	BDT
Denomination		:	1
Financial Year Ending		:	30^th Sep’2017

Financial Highlights	30^th Sep’2017			31^st Dec’2016
Assets
Property, Plant And Equipment	3,410,800,080			3,500,775,257
Investment Property	704,336,544			504,343,755
Intangible Assets	4,525,581			6,740,159
Capital Work-In-Progress	43,166,726			28,726,285
Trade And Other Receivables	-			74.025,000
Total Non-Current Assets	4,162,828,931			4,114,610,457
Inventories	2,742,878,673			2527,507,042
Trade and Other Receivables	622,343,417			618,841,556
Loan To Disposed Subsidiary	-			201,898,000
Advances, Deposits And Prepayments	471,169,959			406,247,968
Advance Income Tax	2,746,360,203			2,485,841,759
Cash and Cash Equivalents	852,030,162			802,643.479
Total Current Assets	7,434,782,414			7,042,979,804
Total Assets	11,597,611,345			11,157,590,261
Equity
Share Capital	3,536,931,410			3,368,506,1l0
Share Premium	1,473,647,979			1,473,647,979
Retained beaming’s	1,184,455,800			1.269,570.793
Equity Attributable To Equity Holders Of The Company	6,195,035,189			6,111,724,882
Non-Controlling Interests	1,426			1,501
Total Equity	6,195,036,615			6,111,725,83
Liabilities
Borrowings	421,974,581			601,200,132
Deferred Tax Liability	165,487,068			128,416,223
Total Non-Current Liabilities	587.461,649			729,616,355
Employees Benefits Payable	35,139,076			3,458,783
Borrowings	652,375,079			566,254,999
Trade And Other Payables	591,118,224			590,472,114
Accrued Expenses	386,272,478			269,520,037
Provision For Income Tax	3.150,208,224			2,886,541,590
Total Current Liabilities	4.815,113.081			4.316.247,523
Total Liabilities	5,402.574.730			5,045,863,878
Total Equity And Liabilities	11,597,611,345			11.157,590,261

Income Statement :
Currency		:	BDT
Denomination		:	1
Financial Year Ending		:	30^th Sep’2017

Financial Highlights	Jan To Sep’2017		Jan To Sep’2016
Sales	5,041,536,285		3,965,452,912
Cost Of Sales	(2,949.534,721)		(2,321.896,834)
Gross Profit	2,092,001,564		1,643,556,078
Other Income	10,267,079		1,815,567
Administrative Expenses	(278,929,53l)		(240,817,725)
Marketing And Selling Expenses	(639,281,855)		(496,279,901)
	(907,935,307)		(741,282,059)
Profit From Operating Activities	1,184,066,257		902,274,019
Finance Income	8,635,228		16,523,355
Finance Expenses	(78,082,550)		(29,772,434)
Net Finance Income	(69,447,322)		(13,249,079)
Profit Before Contribution Worker's
Profit Participation And Welfare Fund	1,114,618,935		889,024,940
Contribution To Worker’s Profit Participation And Welfare Fund	(51.942,912)		(41,605,460)
Profit Before Income Tax	1.002.076,023		847,419,480
Income Tax Expense
Current Tax	(268,593,324)		(205,892,055)
Deferred Tax	(37,070,845)		(39,651,966)
	(305,664,169)		(215,544,021)
Profit For The Period	757,011,854		601,875,459
Other Comprehensive Income	-		-
Total Comprehensive Income For The Period	757,011,854		601,875,159
Profit Attributable To:	-		-
Equity Holders Of The Company	757,011,529		601,875,092
Non-Controlling Interests	325		367
Profit After Tax For The Period	757,011,854		601,875,459
Basic Earnings Per Share (Par Value TK 10)	2.14		1.70

ASSOCIARES/SUBSIDIARIES/ RELATED PARTIES

Name of The Group	:	RAK Group
Name of Mother Company	:	Nil
Subsidiary	:	Nil
Sister Concerns	:	RAK Power Pvt. Ltd. RAK Paints Pvt. Ltd. RAK Pharmaceuticals Pvt. Ltd. RAK Security & Services Pvt. Ltd. RAK-Mosfly (Bangladesh) Pvt. Ltd.

BANKING

Bank Name

HSBC

Citibank, N.A.

Dutch-Bangla Bank Ltd.

Standard Chartered Bank

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 RAK Tower (7th, 8th & 9th Floor), 1/A, Jasimuddin Avenue, Sector# 3, Uttara Model Town, Dhaka-1230, Bangladesh. It Is Residential Area.

GENERAL COMMENTS

SC’s financial performance appears to be Strong. As well as its financial condition, we recommend that Credit can proceed with favorable terms in Large amount

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 63.47
UK Pound	1	INR 86.15
Euro	1	INR 75.92
BDT	1	INR 0.77

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

INFORMATION DETAILS

Analysis Done by :	VIV

Report Prepared by :	NIT

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.