ISLAMI BANK BANGLADESH LIMITED

PROJECT INVESTMENT DIVISION

HEAD OFFICE, DHAKA
Board Memo No.2008/ Date: 02.11.2008
Sub: Proposal for renewal of the existing Composite Working Capital Investment Limit of Tk. 700.00
million [LC/Bills/MPI/Bai-Murabaha Tk. 150.00 million with 100% TR + BBLC/Bills Tk. 340.00
million + Bai-Salam Tk. 40.00 million + BG Tk. 20.00 million + Bai-As-Serf/MDB Tk. 150.00
million] in addition to special BG for Tk. 84.00 million, Baim BBBills of Tk. 77.88 million and HPSM
(Project) outstanding liability of Tk. 280.51 million-A/c. M/s. The Delta Composite Knitting Industries
Limited a client of Mouchak Branch, Dhaka.
A. Background of the client/Group:
M/s. The Delta Group is one of the large business concerns in the country producing 100% export oriented
knitting fabrics and other garments items. Janab Engr. A.K.M. Faruque Ahmed, Chairman of Delta Group is a
B.Sc. Engineer in Electrical and Electronics from BUET having long experience in the line of business. At
present, they are exporting their produced knit garments in Germany, Norway, Sweden, Switzerland, France,
UK etc.
B. Particulars of the Project:
1. Name of the client M/s. The Delta Composite Knitting Ind. Ltd.
2. Office Address House No.389, Road No.06, Baridhara DOHS, Dhaka.
3. Factory Address Zarun (south), Kashimpur, Gazipur.
4. Constitution of the firm Private Limited Company
5. Capital Structure
Authorized Capital 250.00 million
Paid-up Capital 2.50 million
06. Particulars of the Directors:
Name of the Directors Education Age Status in the Relation Extent of
Company with M.D shares
Jb. Eng. A.K.M. Faruque Ahmed B.Sc. in 47 Chairman/ Self 19%
S/O Md. Abul Kashem Talukder Engineering Managing
Director
Mrs. Ferdous Ara Begum B.A (Hons) in 38 Director Wife 81%
W/O. Eng. A.K.M. Faruque Ahmed Economics.
Total: 100%
07. Liability position of the client:
(Taka in million)
Name of the Mode of Investment Limit Present Liability Overdue
concern Net Gross
M/s. The Delta HPSM (Project) 525.00 280.51 349.70 45.52
Composite Knitting Working Capital: -
Ind. Ltd. LC/Bills/MPI/Bai-Mura- 150.00 149.29 171.04 6.45
(100% TR)
BBLC/Bills 340.00 369.06 369.06 ---
Baim-Wes - 70.19 77.88 12.81
Bai-Salam 40.00 37.96 37.96 4.40
BG 20.00 11.82 12.35
FBP/FBN 150.00 115.83 115.83
Sub-total 700.00 754.38 784.12 23.66
Total 1225.00 1034.66 1133.82 69.18
In addition to above the client has BG liability of Tk. 84.00 million in favor of Janata Bank.
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08. Securities:
(Tk. in Million)
Particulars Forced sale value/WDV
196.045 decimal project land along with 250090 sft. factory building 274.40
under Mouza: Gobinda Bari, Gazipur Sadar owned by the company.
53 decimal land along with 5000 sft residential building under Mouza: Das 11.42
para, P.S: Baufal, Dist: Patuakhali.
Civil Construction for ETP. 30.45
Ownership of the machinery 811.58 (WDV)
Total 1127.85
C. Recommending Authority:

The subject proposal was placed before the EC in its 1339th meeting held on 26.10.2008 (copy of the EC
memo No.2008/1962 dated 18.10.2008 enclosed). After detailed discussion the E.C. recommended the
proposal to the Board with observation that the client must adjust overdues by 31 st December 2008 and also
advised to keep informed the EC about adjustment of overdue liability.
The proposal is now placed before the Board for kind consideration and if agreed, the following resolution
may be adopted:

Resolution:
“Resolved that the proposal for renewal of the existing Composite Working Capital Investment Limit of Tk.
700.00 million [LC/Bills/MPI/Bai-Murabaha Tk. 150.00 million with 100% TR + BBLC/Bills Tk. 340.00
million + Bai-Salam Tk. 40.00 million + BG Tk. 20.00 million + Bai-As-Serf/MDB Tk. 150.00] in addition
to special BG for Tk. 84.00 million, Baim BBBills of Tk. 77.88 million and HPSM (Project) outstanding
liability of Tk. 280.51 million-A/c. M/s. The Delta Composite Knitting Industries Limited, a client of
Mouchak Branch, Dhaka under the terms & conditions as envisaged in the EC Memo No.2008/1962 dated
18.10.2008 and as per usual terms and conditions of the Bank be and is hereby approved”

(M. FARIDUDDIN AHMAD)

MANAGING DIRECTOR

Enclosed:
i. Copy of EC Memo No. 2008/1962 dated 18.10.2008
ii. Group liability
iii. Abbreviation

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Group liability of Delta Group, client of Mouchak Branch, Dhaka as on 01.11.2008

(Taka in million)
Name of the Mode of Investment Limit Present Liability Overdue
concern Net Gross
M/s. The Delta HPSM (Project) 525.00 278.67 347.05 46.93
Composite Knitting Working Capital: -
Ind. Ltd. LC/Bills/MPI/Bai-Mura- 150.00 148.44 172.33 ---
(100% TR)
BBLC/Bills 340.00 310.45 310.45 ---
Baim-Wes --- 64.08 71.08 12.50
Bai-Salam 40.00 36.47 36.47 ---
BG 20.00 11.82 12.35
FBP/FBN 150.00 165.99 165.99
Sub-total 700.00 737.25 768.67 12.50
Total 1225.00 1034.66 1115.72 59.43
M/s. The Delta HPSM (L/C) 1420.00 596.05 666.94 ---
Spinning mills Ltd. HPSM (Project) 1034.89 1231.88 3.11
Sub-total 1420.00 1630.94 1898.82 3.11
Working Capital:
LC/Bills/MPI/Bai- 800.00 799.44 909.54 ---
Murabaha
IBP/MDB 525.00 358.37 358.37
BG 50.00 21.86 23.16
Sub-total 1375.00 1179.67 1291.07
Total 2795.00 2810.61 3189.89 3.11
Group Total 4020.00 3845.27 4305.61 62.54

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 Elaborations of the Abbreviations used in the Memo

BBLC : Back to Back LC

BG : Bank Guarantee
MD : Managing Director
A/c : Account
CFR : Cost and Freight
CIB : Credit Information Bureau
EC : Executive Committee
FBN : Foreign Bills for Negotiation
FBP : Foreign Bills for Purchase
FSV : Forced Sale Value
HPSM : Hire Purchase Under Shirkatul Melk
IBBL : Islami Bank Bangladesh Limited
IBC : Inland Bills for Collection
MDB : Murabaha Documentary Bills
LC : Letter of Credit
M/s. : Messer’s
MPI : Murabaha Post Import
NOC : No Objection Certificate
PIS : Pieces
Sft. : Square Feet
STD : Standard
Tk. : Taka
TR : Trust Receipt
WDV : Written Down Value
& : And