Proposal received on : 14.01.06 Position of SEBL/JUB as on: 27.02.

06
Query met on : 24.01.06
Processed on : 25.01.06
SOUTHEAST BANK LIMITED TD : Tk 94.28 Crore
HEAD OFFICE, DHAKA LDOs : Tk 111.39 Crore
Resubmitted on : 14.02.06 (LDO/TD) 100% : 118.15%

MEMORANDUM
March 08, 2006
TO : THE EXECUTIVE COMMITTEE OF THE BOARD OF DIRECTORS ( MEETING)

SUB : PROPOSAL FOR APPROVAL OF:

A. OPENING OF LETTER OF CREDIT AT SIGHT FOR USD.4,01,440.00 EQVT. TK.2.77 CRORE AT 30%
CASH MARGIN TO IMPORT CAPITAL MACHINERY & SUBSEQUENT
B. 03-YEAR TERM LOAN INCLUDING 06 (SIX) MONTHS MORATORIUM FOR TK.1.94 CRORE TO
RETIRE IMPORT DOCUMENTS UNDER SL-A ABOVE
C. LETTER OF CREDIT LIMIT FOR TK.1.70 CRORE IN EQUIVALENT FOREIGN CURRENCY AT 10% CASH
MARGIN TO IMPORT OF RAW MATERIALS
D. LTR LIMIT OF TK.1.50 CRORE TO RETIRE IMPORT DOCUMENTS UNDER LINE-C ABOVE
E. OVERDRAFT LIMIT FOR TK.50.00 LAC TO MEET WORKING CAPITAL REQUIREMENT OF THE
COMPANY
F. BANK GUARANTEE LIMIT FOR TK.20.00 LAC AT 10% CASH MARGIN FAVORING COMMISSONER
OF CUSTOMS, CUSTOM HOUSE, CHITTAGONG FOR RELASING IMPORTED GOODS
G. IDBP LIMIT FOR TK.2.50 CRORE TO NEGOTIATE LOCAL EXPORT DOCUMENTARY BILLS AGAINST
ACCEPATNCE OF L/C ISSUING BANK
A/C HOLY GARMENTS AND ACCESSORIES LTD (HGAL) REPRESENTED BY MR. MD. ABU TAHER -
CHAIRMAN, A CLIENT OF JUBILEE ROAD BRANCH, CHITTAGONG.
Total exposure =Tk.5.84 Crore exclusive of IDBP (Funded Tk.3.94 Crore & Non funded Tk.1.90 Crore)
Background of the proposal: Holy Garments and Accessories Ltd. is a newly established Backward Linkage Industry for 100%
export-oriented RMG units. The project land, building and other utilities are financed from own sources of the clients. Later they
imported the machinery through our Bank at the initial phase, which are duly installed as stated by the Branch. For import of that
machinery, the Bank approved a Time Loan facility of Tk.77.00 Lac which was dully adjusted on 07.03.2006. To set up additional
machinery the branch has approached as requested by the client to open above machinery L/C & subsequent Term Loan & other
facilities for uninterrupted production of the factory. By this time, the client registered our Bank’s name as LIEN BANK of the unit &
opened two L/Cs through the Bank for procurement of raw materials against which Export executed for USD.15,000.00 & the rest
are expected to be executed shortly. This is to mention here that the export proceeds of the unit shall be realized mostly in F.C.
Branch officials visited the factory on 27.12.2005 & submitted a Visit Report (copy enclosed). In the light of the above, the proposal is
submitted here for kind consideration of the EC.
(All amounts are in Lac Taka unless otherwise specified)
PART A: (EXECUTIVE SUMMARY)
01. The client :
Name Address TIN No. Telephone & Fax No. E-mail & Web address
Holy Garments & A-85, BSCIC Industrial 376-200-4521 670122 N/A
Accessories Ltd. Estate, Kalurghat,
Chittagong.
02. Nature of business : Importer, Manufacturer, Supplier and exporter of garments accessories like Zipper, Elastic
etc.
03. Location of business : A-85, BSCIC Industrial Estate, Kalurghat, Chittagong.
04. Constitution :
Type Year of Name of the proprietor / partners / Designation % of shares Whether director of any
establishment Board members / Shareholders Banking Company
Private 1997 Mr. Md. Abu Taher Chairman 35% N/A
Limited S/O Late Abdus Sobhan
Co. Mr. Md. Abul Hasem Managing 25% N/A
S/O Late Md.Abdul Khaleque Director
Mr. Md. Iskander Mirja Director 12% N/A
S/O Late Al-Haj Shamsul Haque
Mr. Ismail Mohd. Maksud Sobhan Director 08% N/A
Late Abdus Sobhan
Mrs. Fahim Sultana Director 15% N/A
W/O Wahidur Rahman
Mr. Md. Mozaher Alam Director 05% N/A
S/O Late Abdul Monafr
Total 100%

05. Chief Executive Officer:

Name Position Telephone Nos.
Office Mobile
Mr. Md. Abul Hasem Managing Director 670122 0173106308

Page 1 of 11
 06. The Guarantor(s) :
Name Address Relationship of Personal net Whether director of any
guarantor with the client worth Banking Company
Mr. Md. Abu Taher 28, Hemsen Lane, P.S. Chairman of the company Tk.267.75 Lac N/A
Kotowali, Chittagong.
Mr. Md. Abul Hasem H.K. Mansion, House No.5, Managing Director of the Tk.304.86 Lac N/A
Road No-G, Halishahar company
H/E, Chittagong
Mr. Md. Iskander Mirja Mirja Mansion, Alisha Director of the company Tk.79.01 Lac N/A
Nagar, Bandertilla, South
Halishahar, Bandar,
Chittagong.
Mr. Ismail Mohd. Vill. Amki, P.O. Amki Director of the company Tk.25.58 Lac N/A
Maksud Sobhan Bazar, P.S. Sonaimuri,
Noakhali.
Ms. Fahim Sultana Vill. Salukia, P.O. Director of the company Tk.182.51 Lac N/A
Gholpasha, P.S.
Chauddagram, Comilla
Mr. Md. Mozaher Alam 152, Rangi Para, North Director of the company Tk.50.83 Lac N/A
Agrabad, Doublemooring,
Chittagong.
Total Tk.910.54 Lac
07. Accounts SEBL under one obligor :
A/C Title CEO with contact Branch Approved net Proposed net exposure
telephone number & Name exposure
personal net worth
Holy Garments & Mr. Md. Abul Hasem Jubilee Road
Accessories Ltd.
08. Summary of existing and proposed facilities under one obligor:
Account Title Facility Limit Outstan Interest ( % p.a.) / Margin Expiry Securit
& Branch ding y
22.01.06
Existing Proposed Existing Proposed Existing Proposed

Holy L/C/BLC Nil Tk.277.00 Nil N/A 30% margin & Nil 31.01.2007 Details
Garments & (Machinery) 0.50% p.q. & as
Accessories 0.30% each s.q. mentio
Ltd. ned
below
Term Loan Nil Tk.194.00 Nil N/A 14.50% p.a. Nil 31.01.2007

OD Nil Tk.75.00 Nil N/A 14.50% Nil 31.01.2007

L/C/BLC 59.66 Tk.170.00 49.76 SDB 10% margin & SDB 31.01.2007
(Raw 9.90 0.50% p.q. &
materials) (BLC) 0.30% each s.q.
TR 56.86 Tk.150.00 Nil 14.00 14.50% p.a. 90 days 31.01.2007
%
BG Nil Tk.20.00 Nil N/A 10% margin & Nil 31.01.2007
0.50% p.q. &
0.30% each s.q.
IDBP Nil Tk.250.00 Nil NA 14.50% Nil 31.01.2007

Securities against above facilities:

1. Registered mortgage with RIGPA of following properties valuing Tk.2.29 Crore (Distressed Value):
A. 10.41 decimal land with 02 storied 1 st class structure Factory building located within Chittagong City
Corporation at Plot #A-85 BSCIC I/E, Kalughat, Moza- Char Rangamatia, P S: Chandgoan, District:
Chittagong valuing Tk.93.42 Lac (Distressed Value) & Tk.126.42 Lac as assessed by the G. K. Adjusters
Ltd. The property stands in the name of the company.
B. 10.00 decimal land located at Bangla Bazar, Debarpar under Jalalabad ward # 02 of Chittagong City
Corporation Plot # 03 in the lay out plan of Block-C of the proposed Baizid Housing Society under R.S.
Plot # 2410, R. S. Khatian # 669 corresponding to P.S. Plot # 913, P.S. Khatian # 225/230 and B.S. Plot
# 843, B.S. Khatian # 254 and B.S. Mutation Khatian # 96/8 under, Mouza- Jalalabad, P S: Panchlaish,
District: Chittagong valuing Tk.15.00 Lac (Distressed Value) & Tk.20.00 Lac (Market Value) as assessed
by the G. K. Adjusters Ltd. The property stands in the name of Mrs. Shaheda Begum wife of Mr. Abu
Taher (Chairman of the company).
C. 10.00 decimal land located at Bangla Bazar, Debarpar under Jalalabad ward # 02 of Chittagong City
Corporation Plot # 05 in the lay out plan of Block-E of the proposed Baizid Housing Society under R.S.
Plot # 2405, R. S. Khatian # 812 corresponding to P.S. Plot # 907, P.S. Khatian # 225/260 and B.S. Plot
Page 2 of 11
 # 834, B.S. Mutation Khatian # 96/8 under Mouza- Jalalabad, P S: Panchlaish, District: Chittagong
valuing Tk.15.00 Lac (Distressed Value) & Tk.20.00 Lac (Market Value) as assessed by the G. K.
Adjusters Ltd. The property stands in the name of Mrs. Shaheda Begum wife of Mr. Abu Taher (Chairman
of the company).
D. 11.67 decimal land located at Mohalla West Khulshi Abashik Area under Pahartali ward # 13 of
Chittagong City Corporation RS Plot # 101, R. S. Khatian # 42 corresponding to P.S. Plot # 168 and P.S.
Khatian # 108/94 comprising with B.S. Plot # 107 under B.S. Khatian # 1092 and 102/4 under, Mouza-
East Pahartali, P.S: Khulshi, District: Chittagong valuing Tk.58.35 Lac (Distressed Value) & Tk.81.69 Lac
(Market Value) as assessed by the G. K. Adjusters Ltd. The property stands in the name of Mst. Ambia
Khatun wife of Mr. Afzalar Rahman mother of Mrs. Fahima Sultana (Director of the company).
E. 15.00 decimal land located at Chittagong Steel Mills, Khejurtala under South Halishahar Ward # 39 of
Chittagong City Corporation RS Plot # 1093, R. S. Khatian # 2022 and P.S. Plot # 6676 comprising with
B. S. Plot # 4431 and 4432 under B.S. Mutation Khatian # 1901/1 under, Mouza- South Halishahar, P.S:
Bandar, District: Chittagong valuing Tk.22.50 Lac (Distressed Value) & Tk.30.00 Lac (Market Value) as
assessed by the G. K. Adjusters Ltd. The property stands in the name of Mr. Abul Hashem (Managing
Director of the company).
F. 4.48 (3.58+0.90) decimal land located at Municipal Holding # 152, Rangipara, North Agrabad under ward
# 24 of Chittagong City Corporation RS Plot # 1150, 1151 and 1148, R. S. Khatian # 1482 corresponding
to P.S. Plot # 1799, 1800, 1801, 1821 of P.S. Khatian # 601 comprising with B.S. Plot # 5201, 5202, 5200
of B.S. Khatian # 1422 and B.S. Mutation Khatian # 3014 and 3029 under Mouza- Agrabad, P.S: Double
Mooring, District: Chittagong valuing Tk.25.16 Lac (Distressed Value) & Tk.33.88 Lac (Market Value) as
assessed by the G. K. Adjusters Ltd. The property stands in the name of Mr. Md. Mozaher Alam (Director
of the company).
2. Creation of 1st charge with RJSC on moveable & immoveable (Present & Future) assets of the company.
3. Hypothecation of plant & machinery, stock of Raw materials, Work in process, finished goods, book debts & receivables etc
with adequate Insurance coverage as per Bank’s policy. Value of existing machinery is Tk.2.50 Crore (M.V.) & Tk.1.85 Crore
(D.V.)
4. Irrevocable Power of Attorney (Notarized) to be executed by the client empowering Southeast Bank Limited, Jubilee Road
Branch, Chittagong to sell the hypothecated stock.
5. Personal guarantee of all the Directors of the company to be provided in Bank’s prescribed form.
6. Personal guarantee of the mortgagor (s).
7. Usual charge documents of the bank.
09. Brief history of credit facilities availed from SEBL under one obligor:
A/C Tile Branch 1st sanction Last sanction Remarks
Holy Garments & Jubilee Road HO/CR/2005/3675 HO/CR/2005/5616 Regular
Accessories Ltd. Dt.29.05.2005 Dt.09.08.2005
10. CIB report / confidential opinion: The CIB report vide Bangladesh Bank response form reference no. CIB-3(43)/2005-
7561 dated 10.05.05 shows Nil liability in the name of the client.

11. Credit information (credit facilities with other banks) : NIL as reported by the client
12. Last year earnings from the client:
Year Interest Commission Others Total Income Remarks
2005 TK.3.50 LAC TK.1.10 LAC TK.0.20 LAC TK.4.80 LAC

16. Total projected earnings from proposed facilities:

Year Interest Commission Others Total Income Remarks
2006 Tk.60.00 Tk.2.00 Tk.0.50 Tk.62.50 N/A
2007 Tk.62.50 Tk.2.50 Tk.0.50 Tk.65.50 N/A
2008 Tk.70.00 Tk.3.00 Tk.1.00 Tk.74.00 N/A

13. Documentation status as per last sanction:

Head Office sanction letter reference with date Documentation status Remarks
Documents completed Documents incomplete
HO/CR/2005/5616 Yes N/A N/A
Dt.09.08.2005

PART B : (FINANCIAL INDICATORS AND PERFORMANCE)

01. Account turnover of last year:
i. Title of account: Holy Garments & Accessories Ltd. A/c no. 11100019834, opened on 25.04.2005

Year Highest Lowest debit Debit Credit No. of Debit No. of Credit No. of
debit balance summation summation entries entries adjustment(s)
balance
2005 N/A N/A Tk.143.26 Tk.143.79 76 35 N/A

02. Import performance of last year:

Page 3 of 11
 i. Title of account: Holy Garments & Accessories Ltd.

Year L/C opened Docs. Retired Amount of Amount of BLC Remarks

No. Amount No. Amount L/C O/S O/S
2005-2006 09 Tk.240.72 06 Tk.179.98 Tk.60.75 Lac TK.18.28 LAC

03. Bank guarantee (BG) performance of last 3 years: Nil

i. Title of account: Holy Garments & Accessories Ltd.

04. Export performance of last 3 years: Nil

i. Title of account: Holy Garments & Accessories Ltd.
05. Analysis of last years’ and next year’s (projected) Financial Statements (FS):
a. Financial Statement of Holy Garments & Accessories Ltd.  Audited  Un-audited

Taka in Lac
Sl. # Items Projected Remarks on financial
2006 indicators
1. Sales 1050
2. Cost of goods sold 950
3. Gross profit (1-2) 100
4. General and administrative expenses 12
5. Selling expenses 6
6. Operating profit (3-4-5) 82
7. Other income 3
8. Other expenses 5
9. Interest expenses 45
10. Pre Tax Net profit / loss (6+7-8-9) 47
11. Tax -
12. Profit after tax (10-11) 47
13. Cash 10
14. A/C receivable 250
15. Inventory 120
16. Other current assets 2
17. Total Current Asset (13+14+15+16) 382
18. Land & building 145
19. Plant & machinery 475
20. Depreciation for the year on plant & machinery 25
21. Cumulative depreciation on plant & machinery 25
22. Net plant & machinery (19-21) 450
23. Furniture / fixture 5
24. Others 3
25. Total fixed asset (18+22+23+24) 603
26. Total Assets (17+25) 985
27. Accounts payable 125
28. Loan payable within 1 year 55
29. Portion of Term Loan due in 1 year 45
30. Other current liabilities 5
31. Total current liability (27+28+29+30) 230
32. Portion of Term Loan not due in 1 year --
33. Other non – current liability 400
34. Total non-current liability (32 +33) 400
35. Total liabilities (31+34) 530
36. Paid up capital 302
37. Retained earnings and reserve 53
38. Quasi equity --
39. Others
40. Total equity (36+37+38+39) 355
41. Total liabilities & Equity (35+40) 985
Financial indicators
42. Working capital (17-31) 152
43. Current Ratio (17/31) 1.66
44. Quick Ratio (17-15) / 31 1.14
45. Debt service coverage (9+12 + 20) / (9+ 28+29) 0.81
46. Gross Profit Margin (%) (3 / 1) X 100 10
47. Net Profit Margin (%) (10 / 1) X 100 5
48. Return on Equity (%) (10 / 40) X 100 13.24
Page 4 of 11
 49. Return on Assets (%) (10 / 26) X 100 5
50. Inventory turnover in day (15 / 2) X 365 70
51. Average collection period in days (14 / 1) X 365 65
52. Dividend declared / Paid --
06. Particulars of outstanding liabilities under one obligor: ( OD, L/C, BLC, TR, LIM, Term Loan / Time Loan/ IBP /
Export Finance / FDBP / others):
a. Details of outstanding overdrafts as on : 12.02.06: Nil
b. Details of outstanding L/Cs as on: 12.02.06:
A/C Title & Branch L/C number Amount Date of expiry Cash margin Remarks
Holy Garments & 1341/05/01/0513 TK.18.64 Lac 15.03.2006 10% Date of Shipment as
Accessories Ltd. on 28.02.2006
DO 1341/05/01/0512 TK.31.12 Lac 15.03.2006 10% DO
TOTAL TK.49.76 Lac

c. Details of outstanding BLCs as on : 12.02.06 : Nil

A/C Title & Branch BLC number Amount Lodgment Expiry Remarks
Created Outstanding date
Holy Garments & 71400044105 11.09 Lac 9.99 Lac 19.01.06 18.02.06 Regular
Accessories Ltd.
Jubilee Road Branch

d. Details of outstanding TR liabilities as on: Nil

e. Details of outstanding IBP liabilities as on : 12.02.06 :

IBP Loan A/C. No. Bill value Purchase Purchase date Maturity Bank Remarks
amount
78400004622 USD.8,379.00 Tk.5.00 Lac 07.02.06 08.05.06 NCCBL
78400004340 USD.7,830.00 Tk.4.60 Lac 16.01.06 07.04.06 SIBL

f. Details of outstanding Bank guarantees (BG) as on: 12.02.06: Nil

g. Details of outstanding Time Loan / Term Loan liabilities as on: 08.03.06: Nil
h. Details of Acceptance liabilities as on : 12.02.06 : Nil
i. Details of outstanding FDBPs / Export Bills for collection as on : 12.02.06 : Nil
j. Details of outstanding Bill of Entries as on : 12.02.06 : Nil
07. Details of net exposures:
Type of Existing Proposed
A/C Title Facility Limit Cash & Cash Net exposure Limit Cash & Cash Net exposure
collateral collateral
Holy Garments TL Nil N/A Nil Tk.194.00 N/A Tk.194.00
& Accessories OD Nil N/A Nil Tk.75.00 N/A Tk.75.00
Ltd. L/C Nil N/A Nil Tk.170.00 Tk.17.00 Tk.153.00
TR Nil N/A Nil Tk.150.00 N/A Tk.150.00
BG Nil N/A Nil Tk.20.00 Tk.2.00 Tk.18.00
Total Tk.609.00 Tk.19.00 Tk.590.00*
*IDBP is excluded
08. Personal net-worth:
Name Date of net-worth Amount Remarks
Mr. Md. Abu Taher 31.12.2005 Tk.267.75 Lac Break up sheet enclosed
Mr. Md. Abul Hasem 31.12.2005 Tk.304.86 Lac DO
Mr. Md. Iskander Mirja 31.12.2005 Tk.79.01 Lac DO
Mr. Ismail Mohd. Maksud Sobhan 31.12.2005 Tk.25.58 Lac DO
Ms. Fahima Sultana 31.12.2005 Tk.182.51 Lac DO
Mr. Md. Mozaher Alam 31.12.2005 Tk.50.83 Lac DO
PART C: (ANALYSIS AND RECOMMENDATIONS)
1. Details of line(s) of operations:
Holy Garments & Accessories Ltd. has been incorporated as private limited company on 9 th December, 1997 with
authorized share capital of Tk.5.00 Crore divided into 5,00,000 ordinary shares of Taka 100/- each. Paid up capital of the
company is Tk.3.01 Lac only. The firm is involved in manufacturing of garments accessories for 100% export oriented
readymade garments. They will produce line of accessories for Readymade Garments under bonded warehouse
arrangement. Their product line will be of Nylon Zipper, Plastic Zipper, Metal Zipper, Elastic, Drawstring, Draw Cord. Twill
Tape for RMG.

2. Details of management:
Holy Garments & Accessories Ltd. is fully owned and managed by the following directors:
Page 5 of 11
 (a) Mr. Md. Abu Taher, Chairman
(b) Mr. Md. Abul Hasem, Managing Director
(c) Mr. Md. Iskander Mirja, Director
(d) Mr. Ismail Mohd. Maksud Sobhan, Director
(e) Ms. Fahima Sultana, Director
(f) Mr. Md. Mozaher Alam, Director

Administration Department Production Related Required Manpower.

General Manager 1 person Production Manager 1 person
Accountant 1 person Elec. & Electronic Engr. 1 person
Cashier 1 person Assistance (Maintenance) 2 Person
Store Keeper 1 Person Electrician 1 person
Assistant 2 person Supervisor 5 person
Typist 1 person Operator 29 person
Other 10 person Helper 91 person
Dying Master 1 person
Others 22 person
The above mentioned manpower will required to operate the factory upon installation of proposed machineries for production of
plastic zipper, Metal Zipper, Drawstring, Draw cords etc in addition to the existing capacity.

Details of proprietor / partners / directors:

Mr. Md. Abul Hashem, Managing Director of the company was the chief executive of Fabion Group, a reputed manufacturer and
exporter of garments accessories and lead the company for 15 Years. He is well experienced in the line of backward linkage
industry. He has became a professional expert in the line garments accessories like all kinds of Zipper, Snap button, sewing
thread, Label, Drawstring, , elastic, interling & many other garments accessories. Moreover Mr.Abul Hashem He is the owner of
Tri Star Mineral water Project situated at Basic Industrial Area, Kalurghat, Chittagong. Mr.Hashem traveled various eastern
countries like Taiwan, China, Hong kong and earned knowledge related to garments accessories an created a very good
relationship with the suppliers. Mr.Hashem is also one of the sponsor director of a 60 bed ophthalmology hospital established in
Feni district head quarter.
Mr. Md. Abu Taher cahairman of the company is science graduate and retired from Govt. service as Principal Appraiser of
Customs under Board of Revenue, Govt. OF BANGLADESH from which he has acquired a vast knowledge of rules and
regulations related to the customs and others govt. agency which will help him to handle the regulatory matters of the company.
On the other hand Mr.Taher is a social worker and established a Mosque in his community where he had donated about 7 katha
land market value of which is Tk.70 Lac.
Mr. Md. Iskander Mirja, Mr. Ismail Md. Maksud Sobhan And Mr. Md. Mozaher Alam all are successful businessman in the line of
construction, C & F and acquired huge knowledge related to Export. Import, Vat & Bond related matters.
Mrs.Fahima Sultana is also a innovative woman entrepreneur having sufficient knowledge of relating the this field.
03. Details of the guarantor(s) : All the directors of the company will stand as guarantor of the proposed credit facility.
04. SWOT analysis: N/A
05. Other information if any :
Holy Garments & Accessories Limited is established to manufacture and export garments accessories in different renowned
Garments Industries like AZIM GROUP, BANOLATA GROUP, FASHION PRODUCT GROUP, YOUNUSCO GROUP, FASHION
NEXT, EURO MODE ETC for which sale of products of poly point is ensured to the above group of RMG exporters.
They have already acquired Bond License from concerned authority and we are going to be nominated as their lien bank by
their full import and export business will be ensured from our branch and we shall be able to earn a handsome earning from
them.
Assessment of Working Capital:
Targeted export for next one year: Tk.10.50 Crore
Tied-up period: 120 Days
Turnover in a year: 360/12 = 3 Times
L/C requirement in a year: Tk.10.50 CroreX70% = Tk.7.35 Crore
L/C limit required Tk.7.35 Crore/3 = 2.45 Crore
However initially we may recommend a Limit of Tk.1.70 Crore
Recommended debt structure: Considering above facts & as recommended by the branch, we propose approval of the facilities
under following debt structure terms & conditions as enumerated below:
Line-A:
Name of Account :
Holy Garments & Accessories Ltd.
Nature of Facility :
Letter of Credit
Amount :
USD.4,01,440.00 eqvt. Tk.2.77 Crore (Taka Two Crore Seventy Seven Lac) only
Margin :
30% Cash at the time of opening of L/C
Tenor :
At sight
Expiry :
SDB
Commission :
0.50% for the 1st quarter and 0.30% for the subsequent quarters or as may be advised by H.O. from time to
time
Rate of interest of : 15.00 % p.a. with quarterly rest subject to the change(s) that may be made by H.O. from time to time.
Page 6 of 11
BLC
Purpose : For import of additional capital machinery for expansion of the production capacity of the plant.
Mode of retirement : By creation of Term Loan under Line – B below
Security : i. 01(one) un dated cheque to cover the L/C amount
ii. Usual charge documents of the Bank
ii. Others as mentioned below
Conditions :  Letter of credit facility also include BLC liability
 Fluctuation rate & interest if any in Foreign Currency (not exceeding LIBOR) to be borne by the
customer.
 The satisfactory credit report of the supplier will be obtained prior to opening of L/C
 The L/C to be opened under above debt structure shall comply with all exchange control regulations
& UCPDC-500
 All related rules and regulations of the Bank, Bangladesh Bank, CCI&E and NBR shall be
meticulously followed.
Line-B:
Name of Account : Holy Garments & Accessories Ltd.
Nature of Facility : Term Loan
Amount : Tk.1.94 Crore (Taka One Crore Ninety Four Lac) only
Expiry : 03-Year including 06 (Six) months moratorium from the date of first disbursement
Moratorium : 06 (Six) months for principal only
Rate of interest : 15.00 % p.a. with quarterly rest subject to the change(s) that may be made by H.O. from time to time.
Interest servicing : Interest will be serviced separately on quarterly basis.
arrangement
Front end fee : 1.00% to be obtained before disbursement
Purpose : For retirement of import documents under Line-A above
Security / Collateral : i. 10 (Ten) post dated cheques forTk.19.40 Lac each to cover the individual installment amount
ii. Hypothecation of Machinery to be imported
iii. Usual charge documents of the bank
iv. Others as mentioned below
Mode of : By ten quarterly installments of Tk.19.40 Lac each starting from 9 th month & ending at the end of 36 th month
Repayment from the date of first creation of Term Loan, which will be deducted from the export proceeds of the
client/cash from own sources. Balance if any shall be adjusted with last installment.
Conditions : i. First installment shall be due on the 9th month from the date of first disbursement
ii. For any overdue situation, an overdue service charge @ 1.00% per quarter is to be realized
ii. All other related rules and regulations of the Bank, Bangladesh Bank, CCI&E and NBR shall be
meticulously followed.
Line-C:
Name of Account :
Holy Garments & Accessories Ltd.
Nature of Facility :
Letter of Credit
Limit :
Tk.1.70 Crore (Taka One Crore Seventy Lac) only
Margin :
10% Cash at the time of opening of L/C
Tenor :
At sight
Expiry :
31.01.2007 but individual L/C at its expiry
Commission :
0.50% for the 1st quarter and 0.30% for the subsequent quarters or as may be advised by H.O. from time to
time
Rate of interest of : 15.00 % p.a. with quarterly rest subject to the change(s) that may be made by H.O. from time to time.
BLC
Purpose : To import of raw materials for execution of export orders
Mode of retirement : By creation of LTR under Line – D below
Security : i. 01(one) Post dated cheque for Tk.1.70 Crore
ii. Usual charge documents of the Bank
ii. Others as mentioned below
Conditions :  Letter of credit facility also include BLC liability
 Fluctuation rate & interest if any in Foreign Currency (not exceeding LIBOR) to be borne by the
customer.
 The satisfactory credit report of the supplier will be obtained prior to opening of L/C
 The L/C to be opened under above debt structure shall comply with all exchange control regulations
& UCPDC-500
 All related rules and regulations of the Bank, Bangladesh Bank, CCI&E and NBR shall be
meticulously followed.
Special condition  Outstanding of L/C/BLC of Raw materials if any shall be absorbed within this limit upon approval
Line-D:
Name of Account : Holy Garments & Accessories Ltd.
Nature of Facility : Letter of Trust Receipt (LTR)
Limit : Tk.1.50 Crore (Taka One Crore Fifty Lac) only
Expiry : 31.01.2007 but individual LTR A/C shall be 120 days from the date of creation
Rate of interest : 15.00 % p.a. with quarterly rest subject to the change(s) that may be made by H.O. from time to time.
Interest servicing : Interest will be serviced inclusively with the quarterly Installment.
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arrangement
Purpose : For retirement of import documents under Line-C above
Security / Collateral : i. 01(one) Post dated cheque for Tk.1.50 Crore
ii. Hypothecation of imported raw materials & Letter of TR for individual TR
iii. Usual charge documents of the Bank
iv. Others as mentioned below
Mode of : From the Export Proceeds /own sources of the client
Repayment
Conditions : i. For any overdue situation, an overdue service charge @ 1.00% per quarter is to be realized
ii. All other related rules and regulations of the Bank, Bangladesh Bank, CCI&E and NBR shall be
meticulously followed.
Special condition  Outstanding of LTR of Raw materials if any shall be absorbed within this limit upon approval
Line-E:
Name of Account : Holy Garments & Accessories Ltd.
Nature of Facility : Overdraft
Limit : Tk.50.00 Lac (Taka Fifty Lac) only
Rate of Interest : 15.00 % p.a. with quarterly rest subject to the change(s) that may be made by H.O. from time to time.
Purpose : To meet working capital requirement of the client
Expiry : 31-01-2007
Mode of : From their export proceeds and/or cash generated from customers own source.
Repayment
Security / Collateral : i. 01(one) post dated cheque for Tk.50.00 Lac
ii. Hypothecation of goods
iii. Usual charge documents of the bank
iv. Others as mentioned below
Conditions : i. Hypothecated goods must be insured taking adequate risk coverage for Fire and RSD risk only from an
insurance company acceptable to Head Office.
ii. Statement of stock under hypothecation must be collected on monthly basis and inspection thereof to be
conducted by the Branch official at least once in a 03 (three) month & to be retained in file.
iii. All other related rules and norms of the Bank, Bangladesh Bank, CCI&E, EPB, BGMEA, Customs
Authority, other government and Autonomous Body shall be meticulously followed
Line-F:
Name of Account : Holy Garments & Accessories Ltd.
Nature of Facility : Bank Guarantee Limit
Limit : Tk.20.00 Lac (Taka Twenty Lac) only
Margin : 10% Cash at the time of issuance of B/G
Expiry : 31.01.2007 but individual Bank Guarantee at its expiry not exceeding 31.01.2007.
Commission : 0.50% for the 1st quarter and 0.30% for the subsequent quarters or as may be advised by H.O. from time to
time
Purpose : For releasing imported goods from customs
Beneficiary : Commissioner of Customs, Custom House, Chittagong
Invocation : The guarantee is to be released by the beneficiary on being convinced that the imported commodity has been
utilized for the export purpose as the same is released free of charges.
Security / Collateral : i. 01(one) un dated cheque for Tk.20.00 Lac
ii. Usual charge documents of the Bank
ii. Others as mentioned below
Conditions : i. Each guarantee shall have definite validity from the date of issuance but not exceeding 31.01.2007.
ii. In case of invocation of the guarantee, the client’s account shall be debited to effect payment of the claim.
Upon receipt of notice of invocation, the client will immediately arrange for sufficient fund to settle the claim. If the
account becomes overdrawn interest @ 14.00% p.a. shall be charged on the outstanding amount and to be paid
by the client covering such period. An undertaking to this effect is to be obtained from the client.
iii. A “Guarantee format” duly signed by the client to be obtained.
iv. All related rules and regulations of the Bank, Bangladesh Bank, CCI&E and NBR shall be meticulously
followed.
Line – G:
Name of Account : Holy Garments & Accessories Ltd.
Nature of facility : Inland Documentary Bill Purchase (IDBP)
Limit : Tk.2.50 Crore (Taka Two Crore Fifty Lac) only
Rate of interest : 15.00 % p.a. with quarterly rest subject to the change(s) that may be made by H.O. from time to time.
Margin : 10%
Validity/ Expiry : 31.01.2007, But individual IBP A/C shall have validity upto its maturity
Purpose : To negotiate/Purchase Inland Export Bills against acceptance of L/C issuing Bank
Mode of : From Export Proceeds or cash from own sources of the customer.
Repayment
Security : i. Lien on Export L/C & acceptance.
ii. Post dated cheque for Tk.2.50 Crore
iii. Usual charge documents of the Bank

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 iv. Other as detailed below.
Conditions 1. For any overdue situation, an overdue service charge @ 1.00% per quarter is to be realized
2. The IDBP facility shall be allowed for negotiation/Purchase of export bills in order strictly as per
terms and conditions of Documentary Export Letter of Credit kept as lien with us
3. Sales/Export proceeds against IBP shall be realized through Foreign Currency. In this regard, the
client shall insert the condition in the Proforma Invoice that payment shall be made through US
Dollar/Foreign Currency, which shall be the integral part of the Letter of Credit.
4. IBP shall be allowed against unconditional acceptance of the L/C issuing Bank.
5. The genuineness of the acceptance shall be independently verified by the Branch
6. The outstanding against IBP shall be adjusted out of realization of concerned export proceeds and /
or from own source.
7. The export documents to be scrutinized strictly as per terms and conditions of the Export L/C
8. All other related rules and regulations of the Bank, Bangladesh Bank, CCIE and NBR shall be
meticulously followed
Special condition At least 50% of the disbursed amount against each IDBP shall be retained by the Branch to adjust TR liability
& to build up further margin of the L/C.
Securities against all facilities:
1. Registered mortgage with RIGPA of following properties valuing Tk.2.29 Crore (Distressed Value):
A. 10.41 decimal land with 02 storied 1st class structure Factory building located within Chittagong City Corporation at Plot
#A-85 BSCIC I/E, Kalughat, Moza- Char Rangamatia, P S: Chandgoan, District: Chittagong valuing Tk.93.42 Lac
(Distressed Value) & Tk.126.42 Lac as assessed by the G. K. Adjusters Ltd. The property stands in the name of the
company.
B. 10.00 decimal land located at Bangla Bazar, Debarpar under Jalalabad ward # 02 of Chittagong City Corporation Plot #
03 in the lay out plan of Block-C of the proposed Baizid Housing Society under R.S. Plot # 2410, R. S. Khatian # 669
corresponding to P.S. Plot # 913, P.S. Khatian # 225/230 and B.S. Plot # 843, B.S. Khatian # 254 and B.S. Mutation
Khatian # 96/8 under, Mouza- Jalalabad, P S: Panchlaish, District: Chittagong valuing Tk.15.00 Lac (Distressed Value)
& Tk.20.00 Lac (Market Value) as assessed by the G. K. Adjusters Ltd. The property stands in the name of Mrs.
Shaheda Begum wife of Mr. Abu Taher (Chairman of the company).
C. 10.00 decimal land located at Bangla Bazar, Debarpar under Jalalabad ward # 02 of Chittagong City Corporation Plot #
05 in the lay out plan of Block-E of the proposed Baizid Housing Society under R.S. Plot # 2405, R. S. Khatian # 812
corresponding to P.S. Plot # 907, P.S. Khatian # 225/260 and B.S. Plot # 834, B.S. Mutation Khatian # 96/8 under
Mouza- Jalalabad, P S: Panchlaish, District: Chittagong valuing Tk.15.00 Lac (Distressed Value) & Tk.20.00 Lac
(Market Value) as assessed by the G. K. Adjusters Ltd. The property stands in the name of Mrs. Shaheda Begum wife
of Mr. Abu Taher (Chairman of the company).
D. 11.67 decimal land located at Mohalla West Khulshi Abashik Area under Pahartali ward # 13 of Chittagong City
Corporation RS Plot # 101, R. S. Khatian # 42 corresponding to P.S. Plot # 168 and P.S. Khatian # 108/94 comprising
with B.S. Plot # 107 under B.S. Khatian # 1092 and 102/4 under, Mouza- East Pahartali, P.S: Khulshi, District:
Chittagong valuing Tk.58.35 Lac (Distressed Value) & Tk.81.69 Lac (Market Value) as assessed by the G. K. Adjusters
Ltd. The property stands in the name of Mst. Ambia Khatun wife of Mr. Afzalar Rahman mother of Mrs. Fahima Sultana
(Director of the company).
E. 15.00 decimal land located at Chittagong Steel Mills, Khejurtala under South Halishahar Ward # 39 of Chittagong City
Corporation RS Plot # 1093, R. S. Khatian # 2022 and P.S. Plot # 6676 comprising with B. S. Plot # 4431 and 4432
under B.S. Mutation Khatian # 1901/1 under, Mouza- South Halishahar, P.S: Bandar, District: Chittagong valuing
Tk.22.50 Lac (Distressed Value) & Tk.30.00 Lac (Market Value) as assessed by the G. K. Adjusters Ltd. The property
stands in the name of Mr. Abul Hashem (Managing Director of the company).
F. 4.48 (3.58+0.90) decimal land located at Municipal Holding # 152, Rangipara, North Agrabad under ward # 24 of
Chittagong City Corporation RS Plot # 1150, 1151 and 1148, R. S. Khatian # 1482 corresponding to P.S. Plot # 1799,
1800, 1801, 1821 of P.S. Khatian # 601 comprising with B.S. Plot # 5201, 5202, 5200 of B.S. Khatian # 1422 and B.S.
Mutation Khatian # 3014 and 3029 under Mouza- Agrabad, P.S: Double Mooring, District: Chittagong valuing Tk.25.16
Lac (Distressed Value) & Tk.33.88 Lac (Market Value) as assessed by the G. K. Adjusters Ltd. The property stands in
the name of Mr. Md. Mozaher Alam (Director of the company).
2. Creation of 1st charge with RJSC on moveable & immoveable (Present & Future) assets of the company.
3. Hypothecation of plant & machinery, stock of Raw materials, Work in process, finished goods, book debts & receivables etc
with adequate Insurance coverage as per Bank’s policy. Value of existing machinery is Tk.2.50 Crore (M.V.) & Tk.1.85 Crore
(D.V.)
4. Irrevocable Power of Attorney (Notarized) to be executed by the client empowering Southeast Bank Limited, Jubilee Road
Branch, Chittagong to sell the hypothecated stock.
5. Personal guarantee of all the Directors of the company to be provided in Bank’s prescribed form.
6. Personal guarantee of the mortgagor (s).
7. Usual charge documents of the bank.
Other Terms & conditions:
1. Board resolution of the company to borrow from Southeast Bank Limited, Jubilee Road Branch, Chittagong in conformity with
the Memorandum & Articles of Association of the companies shall be obtained.
2. A declaration to be obtained from the Customer to the effect that no Director/Sponsor of The Southeast Bank Ltd. or any of
their family Member/Dependent as per Bank Company Act 1991 has got any direct or indirect interest in their Business
3. Our bank’s name shall be incorporated as the Sole Lien Bank of Holy Garments & Accessories Ltd. in all records including in
the books of Customs Bond Commissionerate before opening of the L/Cs
4. Our Bank’s name shall be prominently displayed on a board in front of the project site as the lending bank
5. Registered Irrevocable General Power of Attorney (IGPA) in favor of the Bank shall be executed by the customer to sell the
Page 9 of 11
 property/hypothecated goods without reference to the court in case of default
6. Branch shall exercise necessary caution about mortgage of properties as per Credit Circular # 03/2005 dated 05.02.05.
7. Hypothecated stocks, stores and spares and machinery are to be insured minimum 10% above the credit facilities covering
Fire, RSD, Earthquake, Theft and Burglary, Flood and Cyclone with Bank mortgage clause at client’s cost. However, if the client
is unwilling to insure the hypothecated goods covering Earthquake, Theft and Burglary, Flood and Cyclone, an undertaking to be
obtained to the effect that they will bear all the losses by them selves in this regard.
8. Insurance Policy to be obtained on the machinery covering full value of machinery and on stocks on declaration basis under
Bank’s mortgage clause covering adequate risks.
9. The customer shall undertake to the effect that they will not avail any credit facility from any other Banks/Financial institutions
without obtaining NOC from our Bank.
10. The Bank reserves the right to cancel or call back the sanctioned limit or alter, amend the terms & conditions wholly or partly
at its discretion without assigning any reason whatsoever. In case of call, the client have to settle all outstanding with the
bank with up-to-date interest.
11. The property documents including the original Title Deed will be vetted by our legal adviser and the mortgage documentation
formalities will be completed as per the legal vetting and the client will bear all the cost/expenses. The land
revenue/Municipal Tax and legal expenses will be paid out by the client/mortgagor. The mortgagor(s) will execute personal
guarantee in the Bank’s prescribed form.
12. Policy for Financing to RMG sector must be followed.
13. The constitution & corporate/ownership structure/Board of Directors shall not be changed without approval of the bank.
14. The pre-shipment inspection certificate to be incorporated in the L/C in conformity with the International Division circular #
ID/01/ 2000, date 14.02.2000.
15. In case of opening of L/C to India with shipment through Land Ports Branch strictly comply the International Division circular
# ID/Circular No 2005/126 dated 12.12.2005
16. The quality, quantity, specification of the goods must be strictly as per the terms, conditions and specification as per the
indent / contract and as provided in the L/Cs
17. The client will pay duty /sales tax, VAT if any, and other charges from the own sources and will provide undertaking to that
effect
18. The clients will provide Undertaking executed by all the Directors to the effect that they shall remain jointly and severally liable for
the credit facilities extended by the Bank.
19. The client will submit copies of Audited/ Un-audited Financial Statements (Balance Sheet/ Income Statement/ Cash Flow
Statement) as prepared at the end of each financial year to the Bank and any other relevant financials/ information as may be
required by the Bank and will provide Undertaking to that effect.
20. The clients shall undertake that no loan or advances, by whatever name called may be extended by the concerned company to
any of the Directors or to a firm or company in which such directors or shareholders may have any interest.
21. The clients will explicitly undertake that all information supplied to the Bank in connection with the approved credit lines is correct.
22. The client shall furnish any information that SEBL may request from time to time and allow officials of SEBL to visit the
project site and provide access to and inspect the borrowers books, records, accounts and assets as and when required.
23. Any material or adverse change in business condition will cause the amount due to the Bank from the client immediately
repayable.
24. The credit facilities are to be considered as supervisory credit. The branch should have complete supervision on the project,
the credit facilities / ensure it’s proper end use, and ultimate recovery of the facilities. In this regard the branch should sent
on a detailed report on the clients present state of affairs, its production activities, export / import / business / cash
generation, stock position, liability position etc. on quarterly basis on the basis of factory inspection.
25. All expenses including legal, monitoring, supervision etc., to be incurred by the bank in connection to credit facilities/ client/
plant up to the final adjustment of the facility shall be borne by the client.
26. Bank retains the right to set off between the accounts.
27. If any of the above terms and conditions are violated, the facilities will go into default and the entire loan including up-to-date
interest shall be payable by the client immediately.
28. For pre-payment 03 (three) months prior notice to be served & client shall pay @ 2.00% on the pre-paid amount.
29. Letter of disclaimer to free access of Bank Personnel into the factory is to be obtained from the owner of the premises.
30. The Branch shall issue a sanction advice incorporating debt structure and all terms & conditions of the facility advising the
client to provide acceptance, if agreeable, thereof within 15 (Fifteen) days from the date of issuance of sanction advice by
the Branch, failing which the facility shall stand as cancelled.
In case of facilities having guarantor(s), a copy of sanction advice shall be endorsed to such guarantor(s) and acceptance
thereof shall also be obtained.
The acceptance of the sanction advice by the client and the guarantor(s) shall be treated as integral part of the documentation
formalities.
Copy of each accepted sanction advice, under cover of a branch-forwarding letter, shall be sent to Head Office, Credit
Division within 02 (Two) working days from the date of receipt of respective acceptance.
Before disbursement, branch shall complete documentation formalities and shall send a documentation status certificate to
reach Head Office, Credit Division within 07 (Seven) days from the date of disbursement.
31. Branch shall obtain acceptance from the client & such acceptance of this sanction shall constitute client’s required
acceptance authorization / declaration / undertaking to different requirements under the sanction which includes but not
limited to:
i) To comply with all the terms and conditions imposed / to be imposed from time to time by Southeast Bank
Limited.
ii) Southeast Bank Limited to act and take necessary steps to ensure the course of the sanction.
iii) Southeast Bank Limited is authorized to debit the account as may be warranted from time to time.
32. All other related rules and norms of the Bank, Bangladesh Bank, CCI&E, EPB, BGMEA/BKMEA/BTMA/BTTLMEA/related
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 association, Customs Authority, other government and Autonomous Body shall be meticulously followed
Placed for kind approval of the EC:

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