MIPL-Logo

3decades

 

MIRA INFORM REPORT

 

 

Report No. :

487453

Report Date :

29.01.2018

 

IDENTIFICATION DETAILS

 

Name :

BSRM STEELS LIMITED

 

 

Registered Office :

Ali Mansion, 1207/1099, Sadarghat Road, Chittagong, Bangladesh

 

 

Country :

Bangladesh

 

 

Financials (as on) :

30.06.2017

 

 

Date of Incorporation :

20.07.2002

 

 

Com. Reg. No.:

CH- 4392

 

 

Legal Form :

Public Listed Co      

 

 

Line of Business :

Manufacturer, Importer and Distributor of Deformed bars of Reinforced Steel. 

 

 

No. of Employees :

300

 

 

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+

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

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 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

 

EXECUTIVE SUMMARY

 

                                                IDENTIFICATION DETAILS

Correct company Name

:

BSRM Steels Limited

Head Office

:

Ali Mansion, 1207/1099, Sadarghat Road, Chittagong, Bangladesh.

Tel No

:

88-031-2854901-10, 635382, 613282, 616402

Fax No

:

88-031-610101

E-mail

:

mail@bsrm.com, bsrmsteels@bsrm.com

Website

:

www.bsrm.com

Date/ Year of Incorporation

:

20.07.2002

Incorporation No.

:

CH- 4392

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

30th June’2016

BDT 17265182648

(Jan’16-June’16)

BDT 28809123760

BDT 1313318100

(Jan’16-June’16)

30th June’2017

BDT 32683571946

(July’16-June’17)

BDT 32624960953

BDT 1648035691

(July’16-June’17)

 

 

 

 

 

 

 

 

 

 

 

 

FULLCHECK REPORT DETAILS

 

                                                             Information Parted By

Name

:

Mr. Jamil Ahmed

Designation

:

Head of HR

Contract No

:

N/A

 

                                                               Locations Details

Operating Address

:

Ali Mansion, 1207/1099, Sadarghat Road, Chittagong, Bangladesh.

Tel No

:

88-031-2854901-10, 635382, 613282

E-mail

:

88-031-610101

Fax No

:

mail@bsrm.com,  bsrmsteels@bsrm.com

Website

:

www.bsrm.com

 

Location :

: Owned

Ö

 

Rented

 

 

Leased

 

Area

6800

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

:

Plot # 4(P), Fouzderhat lndustrial Estate, Chittagong, Bangladesh.

Tel No

:

88-031-2770192, 2770193

Fax No

:

88-031-751452

 

Location :

   Owned

Ö

 

Rented

 

 

Leased

 

Area

10

Acores

 

 

Branch 01:

 

 

 

 

 

Address

:

Mahbub Castle (2nd & 4th Floor), 35, Purana Paltan Line, Inner Circular Road

(VIP Road), Dhaka-1000, Bangladesh. 

Tel

:

88-02-8311994, 8313135

Fax

:

88-02-8312905

 

Branch 02:

 

 

 

 

 

Address

:

Atlanta Trade Center Plot# 1 (Level-6), Road# 1/A, Sector# 4, Uttara Model

Town, Dhaka-1212, Bangladesh

Tel

:

88-02-8957027, 8958029

Fax

:

88-02-8956496

 

Employee:

 

 

 

No. of Employees 

 

In Office

:

20

In Factory

:

280

In Branch:

:

-

Total

:

300

Details:

 

                    

 

 

OWNERSHIP/SHAREHOLDERS

 

 

Names of Shareholders

No. of Share

Country

Mr. Alihussain Akberali FCA

34987995

Bangladesh.

Mr. Aameir Alihussain

6835500

Bangladesh.

Mr. Zohair Taherali

8932980

Bangladesh.

Mrs. Tehseen Zohair Taherali

6835500

Bangladesh.

Mrs. Sabeen Aameir

7245

Bangladesh.

Mrs. Bilkis Alihussain

1168272

Bangladesh.

Mr. Shekhar Ranjan Kar

27279

Bangladesh.

General public

282980229

Bangladesh.

 

 

DIRECTORS

 

1.      

 

 

 

Name

:

Mr. Alihussain Akberali

Designation

:

Chairman

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

2.      

 

 

 

Name

:

Mr. Aameir Alihussain

Designation

:

Managing Director

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

3.      

 

 

 

Name

:

Mr. Zohair Taherali

Designation

:

Director

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

4.      

 

 

 

Name

:

Mrs. Tehseen Zohair Taherali

Designation

:

Director

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

5.      

 

 

 

Name

:

Mr. Mono Ranjan Dey

Designation

:

Independent Director

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

 

MANAGEMENT

 

Name

:

Mr. Aameir Alihussain

Job Description

:

Managing Director

Nationality

:

Bangladeshi

Email address

:

N/A

Other details

:

N/A

 

Name

:

Mr. Tapan Sengupta

Job Description

:

Executive Director

Nationality

:

Bangladeshi

Email address

:

N/A

Other details

:

N/A

 

Name

:

Mr. Kazi Anwar Ahmed

Job Description

:

Head of Corporate Affairs

Nationality

:

Bangladeshi

Email address

:

N/A

Other details

:

N/A

 

Name

:

Mr. M. Firoze

Job Description

:

Head of Marketing (Product Development)

Nationality

:

Bangladeshi

Email address

:

N/A

Other details

:

N/A

 

Name

:

Mr. Jamil Ahmed

Job Description

:

Head of HR

Nationality

:

Bangladeshi

Email address

:

N/A

Other details

:

N/A

 

Name

:

Mr. Shekhar Ranjan Kar FCA

Job Description

:

Group CFO & Company Secretary

Nationality

:

Bangladeshi

Email address

:

N/A

Other details

:

N/A

 

BUSINESS OPERATIONS

 

Nature of Activity       :

Manufacturer

Ö

Trader

 

Dealer

 

Distributor

Ö

 

 

 

Exporter

 

Importer

Ö

Services

 

Others

 

 

Range of Products:

 

Products

:

Deformed Bars Of Reinforced Steel. 

Production Capacity

:

600000 Metric Ton Per Year.

Last Year Production

:

5,80,148 MT

 

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

:

N/A

 

Local Clients

:

N/A

 

Overseas Suppliers

:

N/A

 

Local Suppliers

:

N/A

 

Trade Markets

:

 

Exports(Country)

:

N/A

 

Imports(Country)

:

India, China

 

Brand Name

:

N/A

Certified

:

N/A

Name of Auditors

:

Rahman Rahman Huq

Chartered Accountants

MM Trade Center (13th Floor), 78, Agrabad C/A, Chittagong-4217, Bangladesh

Operation Status

:

Active

 

 

CAPITAL STRUCTURE

 

Authorized Capital

:

BDT 5000 Million

 

Paid-up Capital

:

BDT 3417750000

 

No. of Shares

:

341775000

 

Share Value

:

BDT 10.00 Each

 

Main Assets

:

BDT 32624960953 Million

 

 

FINANCIAL STATEMENT- DETAILED

 

Balance Sheet :

 

  Currency

BDT

 

       Denomination

: 1

 

         Financial Year Ending

: 30th June’2017

     Financial Highlights

30th June’2017

30th June’2016

Assets

 

 

Property, Plant & Equipment

7845717260

6564587003

Intangible Assets

24855031

28199151

Investment in Subsidiary

1045000000

1045000000

Investment in Associate

1325036459

1550911049

 Non-current Assets

10240608750

9608697203

Short Term investment

245502751

259905876

Inventories

7015414276

5540833647

Trade & Other  Receivables

3448601088

2568997717

Current Account with Related

Companies

10037584376

7145824837

Advance, Deposit & Prepayments

1563349721

3504385573

Cash and cash Equivalents

73899991

180478907

Current Assets

22384352203

19200426557

Total Assets

32624960953

28809123760

Equity

 

 

Share Capital

3417750000

3417750000

Retained Earnings 

4820530247

3829682555

Revaluation Reserve

2104010606

2123842107

Total Equity

10342290853

9371194562

Liabilities

 

 

Long term Borrowings- non current

portion

1095324237

1547131995

Defined Benefit Obligations -

Gratuity

72632738

57366281

Deferred Tax Liability

801274097

840590872

Non-current Liabilities

1969231072

2445089148

Trade Payables

79194710

46514219

Short Term Borrowings

17914392772

14156306174

Current portion of Long Term

 Borrowings

496382366

457704192

Current Account With Related Companies

15547452

-

Liabilities for Expenses

288191965

344884653

Current Tax Liabilities

897748213

1350541113

Provision for WPPF and Welfare

Fund

130308597

198906493

Other Liabilities

491672953

             437963106

Current Liabilities

20313439028

             16992839950

Total Liabilities

22282670100

19437929098

Total Equity and Liabilities

32624960953

28809123760

 

Income Statement :

 

  Currency

:BDT

 

       Denomination

: 1

 

         Financial Year Ending

: 30th June’2017

     Financial Highlights

July’16-June’17

Jan’16-June’16

Revenue

32683571946

17265182648

Cost of Sales

(28444663016)

(14150488526)

Gross Profit

4238908930

3114694122

Selling and Distribution costs

(938883694)

(591086940)

Administrative costs

(330207378)

(146594026)

Other operating income

3051576

2847002

Operating Profit

2972869434

2379860158

Finance costs

(380285683)

(161287564)

Finance income

13588198

27196599

Net finance costs

(366697485)

(134090965)

Profit before WPPF and Welfare Fund

2606171950

2245769193

Contribution to WPPF and Welfare Fund

(130308597)

(112288460)

Share of (loss)/ profit of equity

accounted

(225874590)

(18555854)

investee, net of tax

 

 

Profit before Tax

2249988762

2114924879

Income Tax expense:

 

 

Current Tax

(634659347)

(790193931)

Deferred Tax

32706275

(11412848)

Total Income Tax expense

(601953072)

(801606779)

Profit After Tax

1648035691

1313318100

Other comprehensive income

-

-

Total comprehensive income

1648035691

1313318100

Earnings per share:

 

 

Basic earnings per share (Taka)

4.82

3.84

 

 

ASSOCIARES/SUBSIDIARIES/ RELATED PARTIES

 

Name of  The Group

:

BSRM Group of Companies

Subsidiary

:

BSRM Iron & Steel Co. Ltd

Sister Concerns

:

KEW Ltd.

BSRM Wires Ltd.

Burhani Estates Ltd

BSRM Ispat Limited

BSRM Wear Limited

BSRM Recycling Ltd.

H.Akbar Ali & Co. Ltd.

BSRM Metals Limited

BSRM Logistics Limited

BSRM Steel Mills Limited

BSRM Real Estate Limited

South Asia Securities Limited

Megna Engineering Works Ltd

Meghna Engineering Works Ltd.

Chittagong Power Company Ltd.

Karnafully Engineering Works Ltd.

BSRM Recycling Industries Limited

Bangladesh Steel Re-Rolling Mills Ltd.

East Bengal Trading & Industrial Corporation Limited

 

 

BANKING

 

 

Bank Name  

:

AB Bank Ltd.

One Bank Ltd.

Bank Asia Ltd.

IFIC Bank Ltd.

NCC Bank Ltd.  

Basic Bank Ltd

Prime Bank Ltd.

Uttara Bank Ltd.

Sonali Bank Ltd.

Dhaka Bank Ltd. 

BRAC Bank Ltd.

Agrani Bank Ltd. 

Jamuna Bank Ltd

Eastern Bank Ltd.  

Premier Bank Ltd.

Bank Al Falah Ltd.

National Bank Ltd.  

State Bank of India    

The Trust Bank Ltd.

Southeast Bank Ltd.

Mercantile Bank Ltd.  

Social Islami Bank Ltd.

Dutch Bangla Bank Ltd  

Standard Chartered Bank  

Al Arafa Islami Bank Ltd.

Shahjalal Islami Bank Ltd.

Islami Bank Bangladesh Ltd.

Commercial Bank of Ceylon

United Commercial Bank Ltd.

Hong Kong Shanghai Banking Corporation

 

 

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 Ali Mansion, 1207/1099, Sadarghat Road, Chittagong, Bangladesh. It is situated at a commercial area.

 

 

GENERAL COMMENTS

The subject company is engaged in Manufacturer, Importer & Distributors. It is reputed company in this line of business. We recommended that Credit can proceed promptly in Fairly large amount.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

INR 63.50

UK Pound

1

INR 90.92

Euro

1

INR 79.07

BDT

1

INR 0.76

 

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

 

 

INFORMATION DETAILS

 

Analysis Done by :

PRA

 

 

Report Prepared by :

KET

 

 

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.