BDRAL

Credit Rating
ReportAgency Limited Final Rating Report
3.8
TheSME
Bangladesh
Rating
M/S Ariko International
BDRAL - SME Credit Rating Report

M/S Ariko International

Scope
of the
Report
Analysis
Operations
Employee
of
Details
the
Individual
Company
Accounts
Capital
Employed
and
Tangible Net Worth
Salient
Features
Key
Sales
Financials
Territory
of
the
Company
Sole
Proprietor's/Partner'(s)/Executives'
Information
Company
Bankers
Financial
Statements
Profile
of
M/S
Ariko
International
Individual Profit
& Loss Account
Snapshot
Equity

1.00

2.00

Figures in BDT Actual

56, Jibon Bima

Bhaban,
Agrabad C/A, Double Muring, Chittagong - 4000,
History & Legal background
Local
:
20%
in BDT
Actual
STRENGTHS
The
business
is
occupied
with
exporting
of
zinc
oxide,and
mill
scale, petProfit
flakes and Figures
iron dust.
All
of
its
Bangladesh
Paid
up
Capital\Investment
15,000,000
15,000,000
15,000,000
BD 2015 Operating
Annualized
Profit
Operating
Existing
operations
ENTITY
NAME
M/S
Ariko
International
Name
:
Mr.
S
M
Morshed
Alam
Shahriar
Introduction
International
:
80%
merchandise
are
procured
from
local
market.
Both
purchases
and
sales
are
made
through
cash
and
credit
basis.
Key
Financial
Indicators
T
Management
background
Growth
Margin
Cumulative
Profit
Retained
12,884,647
15,474,531
16,270,375
Figures in BDT
Actual
Good
relationship
with
suppliers
and
customers.
Bank
Name
: Bangladesh
Commerce
Bank
Limited Bhaban,
Individual
Balance
Sheet
BDRAL
Rating:
315
Ratingzinc
Outlook:
Stable
Current
Title
Act
: SE
Proprietor
HO
ADDRESS
Total
Employees
56,
Jibon
C/A,
Double
Bankers
M/S
Ariko
International is a sole
Proprietorship
entity.
It isBima
an exporter ofAgrabad
oxide,
mill
scale, pet flakes and
Major
Current
Products
Year
Profit
7,332,884
9,485,844
8,387,198
31/12/2013
31/12/2014
31/12/2015
BD
ual
For
the
Period
Ended
31
Dec
20132ofthe
31Bangladesh
Decand
2014
31
Dec
2015
Branch
Address
1 smooth
Address
Telephone
FaxFigures
Account
Number
Financial
Analysis
Muring,
Chittagong
- 15,000,000
4000,
iron
dust.
ItName
was
established
in
with
an
initial
investment
BDT
only.
Strong
customer
base 03
which
ensures
sale
throughout
year.
: 2010
01/01/2010
in
BDT
Actual
Appointed
toIssue
Present
Date:
November,
2016
Valid
Till:
02
November,
2017
Permanent
5
T
Current
Assets
25,784,375.00
32,008,654.00
33,718,989.00
Total
Equity
35,217,53112
39,960,375
39,657,573
TELEPHONE
8801713042261
Months
Covered
by P/L Act
12
12
Position
Selling
Assets
Terms
Mill
Scale
31
Dec 2013
31 Dec 2014
31 Dec 2015
Agrabad
Branch
Jibon
Bima
Bhaban,
56
Legal
Form:
Proprietorship
Information
Sources
Working
Capital
24,664,930.00
31,076,321.00
32,337,069.00
Location
or
Establishment
Details
10
Contractual
Education
:
University
Sales
52,198,775
62,081,346
62,783,938
Liabilities
Zinc
Oxide
BDRAL
RATING
SE
3
Local
Selling
Terms
Total
andAgrabad
Equityual
C/A, ChittagongWEAKNESSES
36,336,976
40,892,708
41,039,493
Current
Assets
Total
Tangible
Assets
36,336,976.00
40,892,708.00
41,039,493.00
business
PET
Flakes
Degree
Information
given
this
report
compiled
onBima
the
basis
of information
from Muring,
the following
sources:
The
unit in
was
56, Jibon
Bhaban,
Agrabad
C/A,
Double
Chittagong
-4000. It
Total
Sales
52,198,775
62,081,346
62,783,938
Risk
Weight
(%) obtained
REGISTRATION
NUMBER
193919
Acceptance
credits
23
tolocated
37
daysisatMasters
Tangible
Net
worth
35,217,531.00
39,960,375.00
39,657,573.00
Cash
Hand
108,227
101,731
132,460
Loan
&inIron
Credit
Facilities
Lack
of
skilled
labor
and
low
level
of
innovation
and
research.

Dust
Bankers
Database
operates
on
rented
premise.
It: has
a valid trade as
license
(No. # 193919)BDRAL
issued
by
Chittagong
CityQuality
Corporation.
BB
Scale
Score
Scale
Credit
Related
Experience
Since
2010
per
RBCA
Less
:
Total
Cost
of
Goods
Sold
(42,109,875)
(49,888,167)
(51,731,290)
&
130,475.00
4,827,712.00
372,959.00
Cash
Field
PERMANENT
Visit
report
BANK
A/C
NUMBER
Cash
atBank
Bank
(Closing
Balance)
22,248Commerce Bank
4,725,981
240,499
Limited
The
shop
was
clearly
marked
by a signboard. Bangladesh
guideline
of
Fluctuating
prices
of
merchandises
can
hamper
profitability.
Active
in
Daily
Operations
:
Yes
Accounts
Industry
Analysis
Receivable
4,756,900.00
3,952,700.00
5,231,500.00
Major
Suppliers
(15,986,800)
(18,576,500)
(18,576,500)
Opening
Stock
Accounts
Receivable
4,756,900
3,952,700
5,231,500
Agrabad
Branch
Export
Terms
BASEL
II
Name
:
Bangladesh
Commerce
Bank
Limited
Fixed
Assets
10,552,601.00
8,884,054.00
7,320,504.00
Business
Operation
Holds
: 100% Share
SMEof1 Finished 90+
20
SE
1C/A, Chittagong
Highest 25,794,030
Jibon
Bima Bhaban, 56 Agrabad
18,576,500
20,907,742
Inventory:
Stock
Methodology
ofBSRM
OPPORTUNITIES
Letter
Credit
Goods
Purchased
[Trading]
(40,885,575)
(47,239,172)
(54,131,008)
Accounts
Payable
1,076,400.00
876,950.00
1,320,400.00
Credit
Type
:
OD
(Overdraft)
Limit
(Proposed)
Stated
to
be
fluent
in
:
Bengali
Goods
DATE
KSRM
OF INCORPORATION
01/01/2010
It
comprises
as
an
exporter
of
zinc
oxide,
mill
scale,
pet
flakes
and
iron
dust.
The
goods
are
procured
from
local
Inventory
18,576,500.00
20,907,742.00
25,794,030.00
Less:
Closing
Stock
18,576,500
20,907,742
25,794,030
SME
2power
81-90
40the
SE
2 allrating
High consider
Loan
Amount
: Bangladesh
Taka
20,000,000.00
The
Bangladesh
Rating
Agency
Limited
(herein
after
referred
to 25/10/2016
as BDRAL)
frameworks
Low
bargaining
of :buyers
Personal
Net
worth
Bangladesh
Taka
41,245,879
as on

RSRM
2,320,500
2,320,500
2,320,500
Advances,
deposits
and
suppliers
and
sold
to
local
customers.
Since
inception,
Proprietor
maintains
operating
activities
with
thea
NUMBER
OF EMPLOYEES
5 52,198,775.00
Fulltime
Purchase
Territory
Sales
62,081,346.00
62,783,938.00
number
of financial
and
non-financial
of the
enterprise
and regulations
and
industryand
specific
Warehouse
(476,900)
(530,500)
(546,800)
prepayments
Security
SARM
coordination
ofRent
five (05)
fulltime
employees
and ten (10)
contractual
employee.
It has good
marketing
sales
Other
: Legal
Mortgage
ofparameters
Property
Competitive
price
offering
and
quality
product
delivery
can
increase
sales.
No
IMPORTS
Net
Operating
Profit
\
[Loss]
After
Taxes
7,332,884.00
9,260,844.00
8,162,198.00
dynamics.
BDRAL
believes
that
the
industry
in
which
a
SME
operates
has
a
direct
bearing
on
the
overall
Local
:
100%
3
71-80
60
SE
3
Above Average
network.
Total
Current
Assets
25,784,375
32,008,654
33,718,989
Loading
& SME
Unloading
(1,142,300)
(1,289,317)
(1,782,310)
Personal
guarantee rates
from the
proprietor/owner
performance
of the SME
and therefore
SMEs
based on industry benchmarks. BDRAL Rating is a
Major
Customers
Local
SALES
TERRITORY
Investments
(56,450)
(776,920)
(31,772)
Other
Expenditure
comprehensive
assessment of the enterprise
taking into considerations the overall
financial and non-financial
Guaranteed
Amount
Management
SME: 4 Bangladesh
61-70Taka 20,000,000.00
80
SE
4
Average
THREATS
Purchase
Terms
SALES
BDT
62,783,938.00
for the
FY 2015
Note:
Since,
we
prepared
report vis--vis
based onthe
Management
Financial
so of
webusiness
could not
performance
the
subject the
company
other
peers
in theActual
industry
inStatements,
the
same
line
and 0
Investments
Chino of
Steel,
China
Total
0 Account
0
Logistics
(2,138,350)
(2,383,500)
(2,456,930)
reflect
the
current
sanctioned
amount
of
the
loans
BDT
85,800,000
as
on
25/10/2016
in
Management
Account
size
criteria.
business
NiohoNET
Trading,
Hong Kong
The
was
established
by Mr.
Sreduce
M Morshed
Shahriar. Actual
He hadfor
completed
Post Graduation Degree
Local
Purchase
Terms
BDTAlam
39,657,573.00
the FY 2015
TANGIBLE
WORTH
Fixed
Assets
Increased
market
competition
can
the profit
margin.
SME
5Japan
51-60
120
SE
5of on
Below
Average
Financial
Statements.
However,
we
calculate
Debt
Burden
Ratio
(0.31)
times
based
current
sanctioned
amount

Rose
World,
and
initiated
entrepreneurial
efforts
in
2010.
He
manages
all
operating
activities
the
business.
Gross \ Operation
Profit
[Loss]
10,088,900
12,193,179
11,052,648
Acceptance
credits
7
to
10
days
and
the
collateral
forced
sale
value
against
the
loan
is
BDT
61,848,600.
10,276,597
8,692,800
7,244,000
Vehicles
[Less]
Accumulated
Based
on
itscosts
assessment
and
understanding
BDRAL
developed
rating methodology framework which
Indirect
Hongo
TSS,
China
have
increasing
day by day
due
to has
incremental
inflation.
(2,756,016)
(2,932,335)
(2,890,450)
Less:
Total
General
&been
Cash
Depreciation
SE
6*
mainly
addresses
the
following
areas
Supplier
and
Customer
Base
China Best Firer Company
Administrative
Expenses
A) Industry Risk
Current Assets and
Current Liabilities (1,668,547)
Depreciation
(1,668,550)
(1,563,550)
B) Fixed
Business
Risk
All
merchandise
are
to fulfill the demandSE
of7*
local customers.
It has
a 76,504
wide
276,004
191,254
Other
Assets
SME
6*procured from
<50 local suppliers
150
Lowest
C) Management
Risk
customer
base. The Proprietor
has a good relationship(342,000)
with suppliers and customers.
(354,000)
BD
D) Financial Risk
Total Fixed Assets
10,552,601
7,320,504
T
SE8,884,054
8*
Security Risk
BankE)Facility
Act
Non Current
Assets
*SE or ME 6/7/8 indicates
the BDRAL default rating
ual
Please
visit
www.bdral.com
the detailed
SME Rating
Methodology.
The
proposed
tofor
avails
OD (Overdraft)
Limit
facility
from Bangladesh Commerce
Limited, 0
TotalProprietor
NonThis
Current
Assets
0 automatic
0 rating isBank
rating is a one-time exercise and does not envisage
surveillance. This
valid for a
Agrabad Branch, Chittagong.
period of one year; subject to however, no significant changes/events occur during the period which could
Limitation
Total Assets
36,336,976
40,892,708
41,039,493
materially affect the business and financial parameters of the organization/project. BDRAL recommends
that
the user
of the
may seek
a review
of theStatements
rating, if the
rated entity
experiences
significant
The
report
is based
on rating
Management
Account
Financial
as provided
by the
management
and
changes/events
in on
the31
business.
It is 2013,
recommended
for review in the next
year.
Liabilities
and Equity
31 Dec
2013
31financial
Dec 2014
31 Dec 2015
respective
bank as
December
2014
& 2015.

Current Liabilities
Contact on
Analysts:
Rating Based
Financial Statements- considered on year on year increase & cumulative and other
Payable
to
suppliers
Adnan
Hossain
Shajon (Adnan.Shajon@bdral.com)
Md.ofSahadat
Hossain 876,950
qualitative
as well
as quantitative
information up to1,076,400
the date
rating declaration.
Inputs were provided 1,320,400
by Mr. S
(Mohammad.Hossain@bdral.com)
MAudit
Morshed
15,000
15,000
feesAlam Shahriar, Proprietor on 25/10/2016 15,000
MIS Ref: 16/1690
Better Insight- Better Business
Outstanding Salary
18,500
29,500
32,600
Utilities
Total Current Liabilities

9,545

10,883

13,920

1,119,445

932,333

1,381,920

Long Term Liabilities

Total Long Term Liabilities
BDRAL SME Credit Rating Report - M/S Ariko International

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