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3decades

 

MIRA INFORM REPORT

 

 

Report No. :

506388

Report Date :

30.04.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

SQUARE TEXTILES LTD.

 

 

Registered Office :

Square Centre, 48, Mohakhali C/A, Dhaka-1212

 

 

Country :

Bangladesh

 

 

Financials (as on) :

31.12.2017

 

 

Date of Incorporation :

1994

 

 

Com. Reg. No.:

C-26860

 

 

Legal Form :

Public Listed Co      

 

 

Line of Business :

Manufacturer, Exporter and Importer of Cotton Ring Spun Yarn

 

 

No. of Employees :

2427

 

 

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 :

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

(30.09.2017)

Current Rating

(31.12.2017)

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

:

Square Textiles Ltd.

Head Office

:

Mascot Plaza (11-12th Floor) Plot# 107/A, Sector# 7, Uttara,

Dhaka-1230, Bangladesh.

Tel No

:

88-02-8963227, 8951101

Fax No

:

88-02-8952652

E-mail

:

textiles@squaregroup.com, cs@squaregroup.com

Website

:

www.textile.squaregroup.com

Date/ Year of Incorporation

:

1994

Incorporation No.

:

C-26860

Legal Form (General)

:

 Public Listed Co        Public (but not listed)   Private Co   State-owned Co

 Sole Proprietorship    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 Garments Manufacturer & Exporters Association

Membership No

:

Nil

 

 

 

FINANCIALS- SUMMARY

      Year

Turnover/ Sales

 Assets

     Income

30th June’2017

BDT 2360031102

(July To Dec 2016-17)

BDT 7511324947

BDT 163663629

(July To Dec 2016-17)

31st Dec’2017

BDT 2741435442

(July To Dec 2017-18)

BDT 7722076436

BDT 125668489

(July To Dec 2017-18)

 

 

 

 

 

 

 

FULLCHECK REPORT DETAILS

 

                                                             Information Parted By

Name

:

Mr. Khandaker Habibuzzaman.

Designation

:

Company Secretary.

Contract No

:

N/A

 

 

                                                               Locations Details

Operating Address

:

Mascot Plaza (11-12th Floor), Plot# 107/A, Sector# 7, Uttara,

Dhaka-1230, Bangladesh.

Tel No

:

88-02-8963227, 8951101

Fax No

:

88-02-8952652

E-mail

:

textiles@squaregroup.com, cs@squaregroup.com

Website

:

www.textile.squaregroup.com

 

Location :

: Owned

Ö

 

Rented

 

 

Leased

 

Area

4800

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

:

Saradaganj, Kashimpur, Gazipur, Bangladesh.                                                   

Tel No

:

88-02-7701232, 7788257-8

Fax No

:

88-02-7701231

 

Location :

   Owned

Ö

 

Rented

 

 

Leased

 

Area

1.5

Acres

 

Registered Office Address:

 

 

 

Address

:

Square Centre, 48, Mohakhali C/A, Dhaka-1212, Bangladesh.

Tel No

:

88-02-8833047-56, 9859007

Fax No

:

88-02-8834941, 8828768

 

Employee:

 

 

 

No. of Employees 

 

In Office

:

100

In Factory

:

2327

In Branch:

:

N/A

Total

:

2427

Details:

 

                    

 

 

OWNERSHIP/SHAREHOLDERS

 

Names of Shareholders

No. of Share

Country

Square Pharmaceuticals Ltd.     

87082552

Bangladesh.

Tapan M. A. Chowdhury

6274445

Bangladesh.

Samuel S. Chowdhury, MBA

5887561

Bangladesh.

Anita Chowdhury

5564841

Bangladesh.

Anjan Chowdhury

5144677

Bangladesh.

Ratna Patra

4261423

Bangladesh.

Financial & Other Institution

22900

 

Foreign Investors

1100

 

General Public

73619549

Bangladesh.

 

 

DIRECTORS

 

Name

:

Mr. Samuel S Chowdhury

Designation

:

Chairman

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

Name

:

Mrs. Ratna Patra

Designation

:

Vice Chairman

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

Name

:

Mr. Tapan Chowdhury

Designation

:

Managing Director

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

Name

:

Mrs. Anita Chowdhury

Designation

:

Director

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

Name

:

Mr. Anjan Chowdhury

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

 

 

Name

:

Mr. Syed Afzal Hasan Uddin

Designation

:

Independent Director

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

 

MANAGEMENT

 

Name

:

Mr. Tapan Chowdhury

Job Description

:

Managing Director

Nationality

:

Bangladeshi

Email address

:

N/A

Other details

:

N/A

 

Name

:

Mr. Alamgir Hossain

Job Description

:

Executive Director (Operation)

Nationality

:

Bangladeshi

Email address

:

N/A

Other details

:

N/A

 

Name

:

Mr. Md. Kabir Reza

Job Description

:

Chief  Financial Officer

Nationality

:

Bangladeshi

Email address

:

N/A

Other details

:

N/A

 

Name

:

Mr. Mostaque Ahmed Siddiqui

Job Description

:

Chief Operating Officer

Nationality

:

Bangladeshi

Email address

:

N/A

Other details

:

N/A

 

Name

:

Mr. Nazibur Rahman

Job Description

:

Head of Sales & Marketing

Nationality

:

Bangladeshi

Email address

:

N/A

Other details

:

N/A

 

 

Name

:

Mr. Suresh Chandra Bala

Job Description

:

Plant In-Charge

Nationality

:

Bangladeshi

Email address

:

N/A

Other details

:

N/A

 

Name

:

Mr. Md. Idris Ali

Job Description

:

Head of Engineering

Nationality

:

Bangladeshi

Email address

:

N/A

Other details

:

N/A

 

Name

:

Mr. Md. Adam Ali Khondoker

Job Description

:

Head of HR & Admin

Nationality

:

Bangladeshi

Email address

:

N/A

Other details

:

N/A

 

Name

:

Mr. Khandaker Habibuzzaman.

Job Description

:

Company Secretary.

Nationality

:

Bangladeshi

Email address

:

N/A

Other details

:

N/A

 

 

BUSINESS OPERATIONS

 

Nature of Activity       :

Manufacturer

Ö

Trader

 

Dealer

 

Distributor

 

 

 

 

Exporter

Ö

Importer

Ö

Services

 

Others

 

 

Range of Products:

 

Products

:

Cotton Ring Spun Yarn

Production Capacity

:

Unit 1: Daily production capacity of 20,000 kg.

Unit 2: Daily production capacity of 20,000 kg.

Unit 3: Daily production capacity of 20,000 kg.

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

C&A

Levis

H&M

Target

Kappa

Mascot

K-Mart

Wal-Mart

 

Local Clients

:

N/A

 

Overseas Suppliers

:

N/A

 

Local Suppliers

:

N/A

 

Trade Markets

:

 

Exports(Country)

:

Europe, USA

 

Imports(Country)

:

India, China

 

Brand Name

:

N/A

Certified

:

N/A

Name of Auditors

:

M/s. Ahmed Zaker & Co.,

Chartered Accountants

Saiham Tower (2nd floor), 45, Shaheed Syed Nazrul Islam Sarani,

Bijoynagar, Dhaka-1000, Bangladesh

Operation Status

:

Active.

 

 

CAPITAL STRUCTURE

 

Authorized Capital

:

BDT 3000 Million

 

Paid-up Capital

:

BDT 1878590480

 

No. of Shares

:

187859048

 

Share Value

:

BDT 10.00 Each

 

Main Assets

:

BDT 7722076436

 

 

FINANCIAL STATEMENT- DETAILED

 

 

Balance Sheet :

 

  Currency

: BDT

 

       Denomination

: 1

 

         Financial Year Ending

: 31st Dec’2017

 

 

 

     Financial Highlights

31st Dec’2017

   30th June’2017

Assets

 

 

Non-Current Assets

4,346,255,777

3,893,030,120

Property, Plant & Equipment-

Carrying Value

2,938,690,402

3,058,480,897

Capital Work In Progress

823,231,496

250,215,344

Investment-Long Term (At cost)

160,783,760

160,783,760

Share Money Deposits

423,550,119

423,550,119

Current Assets:

3,375,820,659

3,618,294,827

Inventories

1,118,828,024

1,326,693,264

Accounts Receivables

1,424,906,924

1,344,598,778

Advance, Deposit & Prepayments

444,651,776

465,257,211

Short Term Loan

36,790,045

108,662,119

Cash and cash Equivalents

350,643,890

373,083,455

Total Assets

7,722,076,436

7,511,324,947

Share Holders” Equity & Liabilities

 

 

Share Holders” Equity

5,220,788,093

5,452,946,362

Share Capital

1,878,590,480

1,789,133,790

Retained Earnings

3,342,197,613

3,663,812,572

Non-Current Liabilities 

 

 

Deferred Tax Liability

117,702,217

109,649,529

Current Liabilities  & Provisions

2,383,586,126

1,948,729,056

Short Term Bank Loan  (Secured)

1,418,250,279

1,530,686,959

Creditors & Others Payable

161,520,017

65,384,511

Liabilities for Other Finance

258,361,747

148,441,867

Short Term Loan

348,174,261

21,386,290

Provision For Income Tax

197,279,822

182,829,429

Total Shareholders’ Equity & Liabilities

7,722,076,436

7,511,324,947

Net Assets Value per share (Restated)

27.79

29.03

 

Income Statement :

 

  Currency

: BDT

 

       Denomination

: 1

 

         Financial Year Ending

: 31st Dec’2017

 

 

 

     Financial Highlights

July To Dec 2017-18

    July To Dec 2016-17

Sales Revenue

2,741,435,442

2,360,031,102

Cost of Goods Sold

2,457,617,808

2,056,747,481

Gross Profit

283,817,634

303,283,621

Administrative Overhead

98,807,625

90,015,239

Selling and Distribution Overhead

2,120,909

2,438,449

Profit from Operations

182,889,100

210,829,933

Finance Cost

30,082,401

9,998,957

Other Income

2,773,450

1,530,846

Profit Before W.P.P.F & W.F

155,580,149

202,361,822

Allocation for W.P.P.F & W.F

7,408,579

9,636,277

Profit Before Tax

148,171,570

192,725,545

Provision for Tax (Current)

14,450,393

28,469,704

Provision for Tax (Deferred)

8,052,688

592,212

Profit After Tax for The Period

125,668,489

163,663,629

Earnings Per Share (EPS)- Restated

0.67

0.87

 

 

ASSOCIARES/SUBSIDIARIES/ RELATED PARTIES

 

Name of  The Group

:

Square Group.

Subsidiary

:

Square Yarns Ltd.

Square Texcom Ltd.

Sister Concerns

:

Unitrend Limited.

Mediacom Limited.

Square Fashion Ltd.

Square Air Limited.

Square Spinning Ltd.

Square Hospitals Ltd.

Square InformatiX Ltd.

Square Knit Fabrics Ltd.

Square Pharmaceuticals Ltd.

Square Consumer Products Ltd.

Square Herbal and Nutraceuticals Ltd.

Square Agro Development and Processing Ltd.

 

 

BANKING

 

Bank Name   

:

HSBC Ltd.

Prime Bank Ltd.

The City Bank Ltd.

Bank Al Falah Limited.

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 their Head office which is situated at Mascot Plaza (11-12th Floor) Plot # 107/A, Sector #7, Uttara, Dhaka-1230, Bangladesh. It is situated at Residential 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 66.78

UK Pound

1

INR 92.89

Euro

1

INR 80.74

BDT

1

INR 0.79

                                                                  

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

 

 

INFORMATION DETAILS

 

Analysis Done by :

VIV

 

 

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.