MIRA INFORM REPORT

Report No. :	507340
Report Date :	08.05.2018

IDENTIFICATION DETAILS

Name :	RATANPUR STEEL RE- ROLLING MILLS LTD.
Registered Office :	Nahar Mansion, 116, CDA Avenue, Muradpur, Chittagong
Country :	Bangladesh
Financials (as on) :	31.03.2018
Date of Incorporation :	22.04.1986
Com. Reg. No.:	CH-15492
Legal Form :	Public Listed Co
Line of Business :	Manufacturer, Distributor, Exporter and Importer of 75-Grade MS (Mild Steel) Rod
No. of Employees :	2200

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 (30.09.2017)	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

IDENTIFICATION DETAILS
Correct company Name	:	RATANPUR STEEL RE- ROLLING MILLS LTD.
Head Office	:	Nahar Mansion, 116, CDA Avenue, Muradpur, Chittagong, Bangladesh.
Tel No	:	88-031-652255-7, 862580, 683196, 2580380-4
Fax No	:	88-031-650001, 681474
E-mail	:	info@rsrmbd.com
Website	:	www.rsrmbd.com
Date/ Year of Incorporation	:	22.04.1986
Incorporation No.	:	CH-15492
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

FINANCIALS- SUMMARY
Year	Turnover/ Sales	Assets	Income/ (Loss)
30^th June’2017	BDT 5804184067 (July2016~March’2017)	BDT 5862322040	BDT 520915656 (July2016~March’2017)
31^st March’2018	BDT 5889043525 (July’2017~March’2018)	BDT 6414166163	BDT 564255588 (July’2017~March’2018)

FULLCHECK REPORT DETAILS
Information Parted By
Name	:	Mr. Md. Jafar Imam
Designation	:	Company Secretary
Contract No	:	N/A

Locations Details
Operating Address	:	Nahar Mansion, 116, CDA Avenue, Muradpur, Chittagong, Bangladesh.
Tel No	:	88-031-652255-7, 862580, 683196, 2580380-4
Fax No	:	88-031-650001, 681474.
E-mail	:	info@rsrmbd.com
Website	:	www.rsrmbd.com

Location :

: Owned

Rented

Ö

Leased

Area

3200

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		:	175-176, Baizid Bostami I/A Chittagong, Bangladesh.
Tel No		:	88-031-2580380-4, 682580, 683196
Fax No		:	88-031-681474

Location :

Owned

Ö

Rented

Leased

Area

38000

Sq. ft.

Branch-1:
Address	:	Al Mansur Bhaban (2^nd floor), 50/D, Inner Circular (VIP) Road, Naya Paltan, Dhaka, Bangladesh.
Tel No	:	Nil
Fax No	:	Nil

Branch-2:
Address	:	Rupayan Golden Age (7^th Floor), 99, Gulshan Avenue, Dhaka-1212, Bangladesh.
Tel No	:	88-02-9892936, 9890457, 8812521
Fax No	:	88-02-8828292

Employee:
No. of Employees	In Office	:	70	In Factory	:	2120
	In Branch:	:	10	Total	:	2200

OWNERSHIP/SHAREHOLDERS
Names of Shareholders	No. of Share	Country
Mrs. Shamsun Nahar Rahman	5882400	Bangladesh.
Mr. Maksudur Rahman	14921800	Bangladesh.
Mr. Md. Younus Bhuiyan	4516760	Bangladesh.
Mr. Md. Mizanur Rahman	1776000	Bangladesh.
Mr. Marzanur Rahman	1776000	Bangladesh.
General Public	72316128	Bangladesh.

DIRECTORS
Name	:	Mrs. Shamsun Nahar Rahman
Designation	:	Chairman
Nationality	:	Bangladeshi.
Email address	:	N/A
Other details	:	N/A
Name	:	Mr. Maksudur Rahman
Designation	:	Managing Director
Nationality	:	Bangladeshi.
Email address	:	N/A
Other details	:	N/A
Name	:	Mr. Md. Younus Bhuiyan
Designation	:	Director
Nationality	:	Bangladeshi.
Email address	:	N/A
Other details	:	N/A
Name	:	Mr. Md. Mizanur Rahman
Designation	:	Director
Nationality	:	Bangladeshi.
Email address	:	N/A
Other details	:	N/A
Name	:	Mr. Marzanur Rahman
Designation	:	Director
Nationality	:	Bangladeshi.
Email address	:	N/A
Other details	:	N/A

Name	:	Dr. Jamaluddin Ahmed FCA
Designation	:	Independent Director
Nationality	:	Bangladeshi.
Email address	:	N/A
Other details	:	N/A

MANAGEMENT
Name	:	Mr. Maksudur Rahman
Job Description	:	Managing Director
Nationality	:	Bangladeshi.
Email address	:	N/A
Other details	:	N/A

Name	:	Mr. Zulfiker Ali Azad
Job Description	:	Executive Director (Marketing & Sales)
Nationality	:	Bangladeshi.
Email address	:	N/A
Other details	:	N/A

Name	:	Mr. Mrinal Kanti Mondal
Job Description	:	Chief Financial Officer
Nationality	:	Bangladeshi.
Email address	:	N/A
Other details	:	N/A

Name	:	Mr. Mohammad Ali
Job Description	:	Chief Engineer Electrical
Nationality	:	Bangladeshi.
Email address	:	N/A
Other details	:	N/A

Name	:	Mr. Mohammad Rashed Iqbal
Job Description	:	GM HR & Admin
Nationality	:	Bangladeshi.
Email address	:	N/A
Other details	:	N/A

Name	:	Mr. Md. Mostafa Kamal
Job Description	:	AGM, HR & Admin
Nationality	:	Bangladeshi.
Email address	:	N/A
Other details	:	N/A

Name	:	Mr. Md. Dewan Mabood Ahmed
Job Description	:	Manager (Commercial)
Nationality	:	Bangladeshi.
Email address	:	N/A
Other details	:	N/A

Name	:	Mr. Md. Jafar Imam
Job Description	:	Company Secretary
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	:	75-grade MS (mild steel) Rod
Production Capacity	:	N/A
Last Year Production	:	N/A

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			:	China, India, Europe, Australia, South-Africa
		Imports			:	China, India, Japan, Singapore
Brand Name			:	N/A
Certified			:	N/A
Auditors			:	Ahmed Zaker & Co. Chartered Accountants 522, Sk Mujib Road, Agrabad C/A, Chittagong-4217, Bangladesh.
Operation Status			:	Active
Member			:	N/A

CAPITAL STRUCTURE
Authorized Capital	:	BDT 1000 Million
Paid-up Capital	:	BDT 1011890880
No. of Shares	:	101189088
Share Value	:	BDT 10.00 Each
Main Assets	:	BDT 6414166163

FINANCIAL STATEMENT- DETAILED

Balance Sheet :
	Currency	: BDT
	Denomination	: 1
	Financial Year Ending	: 31^st March’2018
Financial Highlights	31.03.2018	30.06.2017
Assets
Non-Current Assets:	2,053,266,080	2,102,641,069
Property, Plant & Equipment	2,039,969,080	2,089,343,539
Capital Work-in- Progress	13,297,530	13,297,530
Current Assets:	4,360,899,553	3,759,680,971
Advance, Deposits & prepayments	547,148,146	72,012,576
Inventories	1,984,167,076	1,886,507,482
Accounts Receivable	1,806,731,711	1,783,284,673
Cash & Cash Equivalents	22,852,620	17,876,240
Total Assets	6,414,166,163	5,862,322,040
Equity & Liabilities
Shareholder’s Equity:	4,378,273,941	3,857,261,553
Share Capital	1,011,890,880	864,864,000
Share Premium	750,000,000	750,000,000
Revaluation Surplus of Land	943,950,000	943,950,000
Retained Earnings	1,672,433,061	1,298,447,553
Non-Current Liabilities:	144,055,075	140,875,994
Deferred Tax Liability	144,055,075	140,875994
Current Liabilities:	1,891,837,147	1,874,184,493
Current Portion of Lease Liabilities	5,321,412	17,191,573
Short Term Liabilities	1,449,895,991	1,453,574,424
Creditors and Accruals	76,710,990	123,912,313
Income Tax Liability	312,229,933	222,518,512
Liability for WPPF and Welfare Fund	47,678,822	46,987,672
Total Liabilities	2,035,892,222	2,005,060,487
Total Liabilities & Shareholders’ Equity	6,414,166,163	5,862,322,040
Net Assets Value(NAV)Per Share	43.27	44.60

Income Statement :
Currency		:	BDT
Denomination		:	1
Financial Year Ending		:	31^st March 2018
Financial Highlights	July-March 2018			July-March 2017
Revenue (Net off VAT)	5,889,043,525			5,804,184,067
Cost of Goods Sold	(4,887,616,271)			(4,887,851,090)
Gross Profit	1,001,427,253			961,332,977
Operating Expenses	(69,082,565)			(43,333,160)
Administrative and Other Expenses	(28,716,653)			(17,793,077)
Selling and Distribution Expense	(40365,912)			(25,540,083)
Operating Profit	932,344,688			872,999,817
Finance Cost	(128,771,706)			(144,161,860)
Finance and Other Income	334,050			254,209
Profit before WPPF and Income Tax	803,907,032			729,092,166
Contribution to WPPF and Welfare Fund @ 5%	(38,281,287)			(34,718,675)
Net Profit Before Income Tax	765,625,745			694,373,491
Tax Expenses
Current Tax	(198,191,076)			(178,463,018)
Deferred	(3,179,081)			5,005,183
Net Profit After Tax	564,255,588			520,915,656
Earning Per Share (EPS)	5.58			5.15

ASSOCIARES/SUBSIDIARIES/ RELATED PARTIES

Sister Concerns

:

Ratanpur Real Estate Ltd

R.rahman Steel Mills Ltd

Sapphire Corporation Ltd

Ratanpur Jute Spinners Ltd

RSRM Developers Limited

Modern Steel Mills Limited

Ratanpur Steel Mills Limited

Ratanpur Shipping Lines Ltd

Ratanpur Shipping Services Ltd

Ratanpur Poultry & Argo Products Ltd

Ratanpur Ship Re- Cycling Industries Ltd

Subsidiary

:

Nil

Name of The Group

:

RSRM Group

BANKING
Bank Name	:	Janata Bank Ltd
Bank Address	:	Foreign Exchange Branch CDA Annex Building, Kotuali, Chittagong-4000, Bangladesh. Tel: 88-031-630829.
Bank Name	:	City Bank Ltd.
Bank Address	:	Agrabad Branch 11, Rnlay House Agrabad Commercial Area, Chittagong-4100, Bangladesh Tel: 88-031-716210, 502638 Fax: 88-031-720962

Bank Name	:	Islami Bank Bangladesh Ltd
Bank Address	:	Head Office Islami Bank Tower, 40, Dilkusha C/A, Dhaka-1000, Bangladesh Tel: 88-02-9563182 Fax: 88-02-9564532
Bank Name	:	Bank Asia Ltd.
Bank Address	:	Principal Branch 111-113, Motijheel C/A, Dhaka-1000, Bangladesh Tel: 88-02-9571450, 9571451 Fax: 88-02-9566223

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 Nahar Mansion, 116, CDA Avenue, Muradpur, Chittagong, Bangladesh. It is situated at Commercial Area.

GENERAL COMMENTS

SC has been in its line of business for about 32 years. Considering its financial condition.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 67.11
UK Pound	1	INR 90.85
Euro	1	INR 80.12
BDT	1	INR 0.79

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

INFORMATION DETAILS

Analysis Done by :	PRA
Report Prepared by :	TPT

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.