ISLAMI BANK BANGLADESH LIMITED

PROJECT INVESTMENT DIVISION

HEAD OFFICE, DHAKA

Board Memo No.2008/ Date: 30.10.2008

Sub: Proposal for renewal of the existing Composite Facilities/Investment limit of Tk.1380.00 million
(LC/Bills/MPI/Bai-Murabaha/MDB-Tk.1360.00 million with TR of Tk.1060.00 million including
trading limit-Tk.300.00 million with TR of Tk.210.00 million + BG-Tk.20.00 million) in addition to
the existing HPSM (Project) Investment outstanding liability of Tk.999.92 million- A/c. M/s.
Younus Plastic Industries Ltd. and its 13-sister concerns of Chawk Mougultuly Branch,
Dhaka.________________________________________________________________________________

A. Background of the Client:

The client has been banking with IBBL since 1987 with satisfactory performance with no record of
overdue. Janab Mohammed Younus, Managing Director/proprietor of various concerns is a
successful businessman. He is a Director of Shahajalal Islami Bank Ltd., Chairman of Express
Insurance Co. Ltd., Director of NTV & Daily Naya Diganta. They have been availing investment
from the Branch since 1988.
The following proposals were placed before the EC in its 1329 th meeting held on 18.08.2008 vide EC
Memo No.2008/1559 dated 09.08.2008 (copy enclosed):
Proposals for:
i) sanction of HPSM(Project) Investment of Tk.5.50 million (being 75% of machinery cost) for
purchase of one unit Heat Recovery Boiler Machine at a total cost of Tk.7.35 million
favoring M/s. Younus Paper Mills Ltd.; and
ii) renewal of the existing Composite Facilities/Investment limit of Tk.1380.00 million
(LC/Bills/MPI/Bai-Murabaha/MDB-Tk.1360.00 million with TR of Tk.1060.00 million
including trading limit-Tk.300.00 million with TR of Tk.210.00 million + BG-Tk.20.00
million) in addition to the existing HPSM (Project) Investment outstanding liability of
Tk.731.18 million- A/c. M/s. Younus Plastic Industries Ltd. and its 13-sister concerns of
Chawk Mougultuly Branch, Dhaka.

Serial No. i) was declined by the EC and Serial No. ii) was recommended to the Board for approval.
B. Particulars of the client

1. Name and address of the client : M/s. Younus Plastic Industries Ltd. and its 13 sister
concerns.
2.Name of the Managing Director of the : Janab Mohammed Younus
Company
3. Engagement /affiliation of the client : Director of Shahjalal Islami Bank Limited.
with other Bank(s) & Insurance Company Chairman of Express Insurance Co. Limited.
as Director/Share Holder
C. Liability position of the client and its sister concerns with IBBL as on 30.10.2008
(Taka in Million)
Mode Limit Outstanding Overdue Remarks

Gross Net

HPSM (Project) -- 999.92 797.25 - Regular

Sub-Total: -- 999.92 797.25 - -do-

1
 Mode Limit Outstanding Overdue Remarks

Gross Net

LC 105.06 99.79 - -do-

Bai-Murabaha/MPI 1360.00 731.22 638.24 - -do-

IBP (TR-1060.00) 0.00 0.00 - -do-

-

Bank-Guarantee 20.00 51.49 51.49 - -do-

Sub-Total: 1380.00 887.77 789.52 -

(TR-1060.00)

Grand Total: -- 1887.69 1586.77 -

D. Liability position of the Group as per CIB Report printed on 16.09.2008:

(Amount Tk. in million)

Status
Name of the Concerns Mode Limit Outstanding Overdue
STD SMA SS
Hypo 471.40 372.20 - ’’
LIM 1.40 0.80 - ’’
M/s. Younus Paper Mills Ltd. Term - ’’
198.30 129.70
Loan
LC 12.40 12.40 -
M/s. Younus Filament Industries Hypo 16.50 18.80 - ’’
Ltd. LIM 3.60 4.10 - ,,
M/s. Ananta paper Mills Hypo 42.60 5.30 - ’’
Other Dir 221.50 193.50 - “
LIM 110.00 125.80 - “
Hypo 25.00 29.10 29.10 “
Diganta Media Corporation
Hypo 14.80 17.10 - “
LTR 55.40 54.10 - “
LC 122.60 27.40 -
Pledge 30.20 6.00 - ’’
LIM 33.90 34.30 - “
M/s. Younus Fine Paper Mills Ltd. Term -- “
398.10 392.70
Loan
LC 10.20 10.20 --
LIM 36.90 35.00 - ,,
Hypo 4.70 3.10
M/s. Younus Spinning Mills Ltd. Term - ’’
132.00 135.00
Loan
LC 16.10 16.10 -
Pledge 110.10 116.00 - “
Hypo 34.00 38.80 - “
Sonali Paper & Board Mills Ltd.
LIM 15.90 16.60 - “
LC 49.80 49.880 -
M/s. Younus Offset Paper Mills Ltd. LC 84.30 84.30 -
M/s. Younus Plastic Industries Ltd. Hypo 78.10 89.10 - ’’
International Television Channel - “
Hypo 9.50 75.90
Ltd.
TOTAL 2339.30 2093.28 29.10

E. Total value of security

2
 Land & Building : Tk.547.39 million
Machinery : Tk.989.11 million
Total: Tk.1536.50 million

F. Recommending Authority
The subject proposal was placed before the EC in its 1329 th meeting held on 18.08.2008 vide EC Memo
No.2008/1559 dated 09.08.2008 (copy enclosed) and the Executive Committee has recommended the
proposal to the Board.

As recommended by the Executive Committee, the proposal is hereby 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 Facilities/Investment limit of
Tk.1380.00 million (LC/Bills/MPI/Bai-Murabaha/MDB-Tk.1360.00 million with TR of Tk.1060.00 million
including trading limit-Tk.300.00 million with TR of Tk.210.00 million + BG-Tk.20.00 million) in
addition to the existing HPSM (Project) Investment outstanding liability of Tk.999.92 million- A/c. M/s.
Younus Plastic Industries Ltd. and its 13-sister concerns of Chawk Mougultuly Branch, Dhaka as per
terms and conditions envisaged in the E.C. Memo No.2008/1559 dated 09.08.2008, be and is hereby
approved .”

(M. FARIDUDDIN AHMAD)

MANAGING DIRECTOR

Elaborations of the Abbreviations

3
 A/c. : Account
BG : Bank Guarantee
BE : Bill of Exchange
CIB : Credit Information Bureau
Co. : Company
EC : Executive Committee
FSV : Forced Sale Value
HO : Head Office
HPSM : Hire Purchase Under Shirkatul Melk
IBP : Inland Bill Purchase
IBBL : Islami Bank Bangladesh Limited
IRR : Internal Rate of Return
ISCR : Interest Service Coverage Ratio
LC : Letter of Credit
LIM : Loan against Imported Merchandise
Ltd. : Limited
LTR : Loan against Trust Receipt
MDB : Musharaka Documentary Bills
MPI : Murabaha Post Import
M.T. : Metric Ton
M/s. : Messer’s
NEC : Non Encumbrance Certificate
NPV : Net Present Value
PAD : Payment against Document
RJSC : Register of Joint Stock Company
TDR : Term Deposit Receipt
TR : Trust Receipt
Tk. : Taka
WDV : Written Down Value

4
 Islami Bank Bangladesh Limited
Project Investment Division
Head Office: 40, Dilkusha Commercial Area. Dhaka, Bangladesh.

Approval No. Concurrence of Chairman, Board dated.05.04.2008/FECB/INV/WC-10/2008

REF: IBBL/HO/PID/2008/ Date : 07.04.2008
The Executive Vice President
Islami Bank Bangladesh Ltd.
Foreign Exchange Corporate Branch
Dhaka
Sub: Sanction advice for enhancement of the existing Composite Working Capital
Facilities/Investment Limit from Tk.500.00 million with TR of Tk.250.00 million to
Tk.1250.00 million with TR of Tk.450.00 million for a period of 1-year on revolving
basis under LC/Bills/MPI/Bai-Murabaha/IBP/MDB/BG mode (LC/Bills Tk.390.00
million + MPI/Bai-Murabaha Tk.450.00 million with 100% TR + IBP/MDB Tk.400.00
million + BG Tk.10.00 million) in addition to the existing HPSM (Project) outstanding
liability of Tk.790.72 million favoring M/s. Badsha Textiles Ltd., a client of your Branch.
Muhtaram
Assalamu Alaikum.
Please refer to your letter no.IBBL/FECB/INV/2008/323 dated 02.03.2008 and
IBBL/FECB/INV/2008/392 dated 16.03.2008 on the captioned subject.
In this connection, we would like to inform you that considering your recommendation the
competent authority of the Bank has been pleased to enhance the existing Composite Working
Capital Facilities/Investment Limit from Tk.500.00 million with TR of Tk.250.00 million to
Tk.1250.00 million with TR of Tk.450.00 million under
LC/Bills/MPI/Bai-Murabaha/IBP/MDB/BG mode (LC/Bills Tk.390.00 million + MPI/Bai-
Murabaha Tk.450.00 million with 100% TR + IBP/MDB Tk.400.00 million + BG Tk.10.00
million) in addition to the existing HPSM (Project) outstanding liability of Tk.790.72 million
favoring the subject client under the following terms & conditions:
01 Name of the Project : M/s. Badsha Textiles Ltd.
02 Office Address : 28, Dilkhusa C/A, Dhaka
03 Location of Project : Zamirdia, Valuka, Mymensing
04 Nature of the Project : Manufacturer of cotton yarn (ring spinning unit)
05 Constitution of the Firm : Private Limited Company
06 Capacity of the project
No of spindles 59,500
Present Production 34.50 MT/day
Average Count NE 34 and NE 30
07 Capital Structure : Authorized Capital : Tk.500.00 million
Paid-up Capital : Tk.500.00 million
08. Particulars of the Directors/Share Holders
Names Age Address Status in the Co. Extent of Interest
Jb. Md. Badsha Mia 47 34, Chashara C/A, M.D 84%
S/O. Haji Abdul Aziz Mia Narayangonj
Mrs. Asma Begum 39 -do- Director 8%
W/O. Md. Badsha Mia
Jb. Kamal Uddin Ahmed 20 -do- Director 4%
S/O. Md. Badsha Mia
(Contd…….P/2)

5
 -2-
Names Age Address Status in the Co. Extent of Interest
Mina Rani Goash 40 55/B, S.M.Mejah Road, Share holder 2%
W/o.Govinda Kumar Ghosh Narayangonj
Mrs. Kohinoor Begum 42 Do Share holder 2%
W/o. Nurul Islam
Total 100%
09. Mode & amount of Investment
(Amount in million Taka)
Mode Existing Limit Additional Limit Total
HPSM (Project) 920.00 00 920.00
LC/Bills (Sight/DP) 180.00 210.00 390.00
Working MPI/Bai-Murabaha 310.00 (TR-250.00) 140.00 (TR-200.00) 450.00 (100% TR)
Capital IBP/MDB - 400.00 400.00
Bank Guarantee 10.00 00 10.00
Sub-Total 500.00 (TR-250.00) 750.00 (TR-200.00) 1250.00 (TR-450.00)
Grand Total 1420.00 (TR-250.00) 750.00 (TR-200.00) 2170.00 (TR-450.00)
10. Purpose of Investment : To import/procure raw cotton for the project.
11. Period of Investment : For a period of 1-year on revolving basis.
12. Rate of Return : @ 14.00% per annum or the rate to be determined by the
Bank from time to time.
13. Charges/Commission : Charges/Commission will be realized as per existing
Circular/Schedule of the Bank.
14. Mode of disbursement : Deal-to-Deal basis as per Bank’s standard norms.
15. Mode of recovery : Deal-to-Deal basis as per Bank’s standard norms.
16. Security
a. Primary
i. LC/Bills : Related Documents.
ii. TR against : Lien on purchased goods to be released against TR till disposal and deposit
MPI /Bai- of sales proceeds towards the adjustment of related Investment account(s)
Murabaha with the Branch on condition that every deal under TR shall have to be
adjusted within six months from the date of disbursement and no
disbursement be made under TR if any deal under TR remain overdue.
iii. BG : Counter guarantee of the client.
b. Cash/goods
LC for WC : 5% cash security on CFR value.
BG : 15% cash security
c. Collateral
Registered mortgage/creation of further charge on the following (Amount in million Taka)
Particulars FSV/WDV
55.91-bigha project land at Valuka, Mouza-Jamirdia, Mymensingh. 70.00
30.70 Bigha additional project land at Valuka, Mouza-Jamirdia, Mymensingh. 37.70
Factory building/structure on the project land (323,351 sft) 256.00
Hypothecation of the existing machinery of the project (WDV on 30.06.2007) 793.74
Total 1157.44
Total value of security
Land & Building : Tk.363.70 million (FSV)
Machinery, existing : Tk.793.74 million (WDV as on 30.06.2007)
Machinery, proposed : Tk.154.61 million (at cost)
Total : Tk.1312.05 million
(Contd…….P/3)
-3-

6
 d) Others
i) Personal Guarantee of all the Directors of the Project Company in his/her/their individual capacity.
ii) Creation of 1st charge on the present and future assets (fixed and floating) including Book-debts of
the Company in favor of the Bank with the Registrar of Joint Stock Companies & Firms,
Bangladesh against the present and future liabilities of the Company with the Bank (if applicable).
iii) Post dated cheques drawn on the Clients Current Accounts with the Branch covering the sale
price of MPI/Murabaha goods and the installments of HPSM Investment must be obtained from
the Client. The concerned investment Client shall deposit the cheque(s) with you through a
forwarding letter in their official letter head pad duly sealed & signed with assurance to maintain
sufficient credit balance in the relevant current A/C so that the cheque(s) are honored on due dates
on presentation if required.
iv) Deposit of 100% Share Certificate with the Branch issued in favour of the shareholders of the
Company with share transferred form (Form 117) dully signed by the concern shareholders.
v) All charge documents shall have to be executed as per related Investment Operation Manual(s).
vi) Entire export proceeds must be executed through IBBL.
17. Other Terms & Conditions
i) Islami Bank Bangladesh Limited reserves the right, at its option, to nominate at least one person as
Director of the Company and to replace such person from time to time. The Director so nominated
shall neither be required to hold any qualifying shares nor be liable to retire by rotation. The
Director nominated by the Bank will be entitled to reimbursement of traveling and daily
allowances at the rates prescribed by the IBBL from the Company for attending meetings of the
Board of Directors of the Company (if applicable).
ii) Islami Bank Bangladesh Limited reserves the right, at its option, to depute Bank Official(s) at the
Factory/Site/Office of the Client to ensure proper supervision of end-use of the Facilities/
Investment, to be extended to the Client from time to time, and monitoring of the recovery thereof
in time.
iii) Bank may impose any new condition and/or modify any existing condition of the Limit, refuse at
any stage allowing/ sanction of any Facility/ Investment under the Limit or cancel the limit at any
time without assigning any reason whatsoever and call back/ask for adjustment of the Facilities/
Investments, if any, provided and outstanding under the Limit irrespective of the maturity/expiry
date of the Facilities/Investments.
iv) No change in the Management of the Company will be made without prior permission from IBBL.
v) The Client shall permit the Bank and its representatives at all reasonable times to inspect the
premises, facilities, activities, books of account and records of the Client, and the Client shall
cause its representatives, employees and accountants to give their full co-operation and assistance
in connection with any such inspection. At the inspections, the Bank and its representatives shall
be permitted to make photocopies of the books of account and records of the Client, at the
expenses of the Client. The Client hereby irrevocably and unconditionally authorizes the Bank to
contact and deal with their respective auditors directly for any purpose whatsoever in connection
herewith or with any document delivered hereunder.
vi.) No disbursement to be made if any deal/ investment become overdue.
vii.) If any account/ deal become classified, you will circulate the Client as defaulter on the following
day of the date of classification among local branches of other banks as well as our other local
branches with a request not to extend any Facilities/ Investment/ Advance/ Loan to the said
defaulter Client, any firm/ company where the defaulter Client has interest and against personal
guarantee of the said Client as per section 27 KA KA of Bank company (Amendment) Act 1997
with a copy endorsed to Head Office for circulation centrally.
viii.)The Branch must take effective steps to safeguard the interest of the Bank. Bank Official(s), be
deemed to the Branch as appropriate, shall be posted at the Factory/ Office of the Client to ensure
proper supervision of end-use of the Facilities/ Investment, to be extended to the Client from time
to time, and monitoring of the recovery thereof in time.
ix.) The Client shall maintain insurance on all the property and assets of the project covering the risk of
Fire, RSD, etc at their own cost with an insurance company acceptable to the Bank minimum to
the extent of its cost / purchase price plus 10%.
x.) Compensation at the rate of prescribed R.R will be charged on the principal outstanding if any
MPI/Murabaha/PSI deal becomes overdue till full adjustment of the deal.

(Contd…….P/4)
-4-

7
 xi.) All transaction under this limit must be done under compliance of Shariah principles.
xii.) Other terms & conditions of the captioned sanction have been detailed at Annexure: A
(enclosed) which shall form integral part of this sanction.
xiii.) All other usual terms & conditions as detailed in the related Investment Operation
Manual(s) shall also be applicable for the proposed investment.
xiv.) This sanction is subject to availability of investable fund of the Bank.
xv.) The documentation/mortgage formalities are to be completed as per Instruction Circular
Letter No. IBBL/IW/IPPD/947 dated 19.04.2006 and IW/IPPD/999 dated 15.04.2007.
xvi) You have to confirm this Division within 21 days from the date of hereof that all the
terms and conditions including all documentation formalities as laid down in this advice
have properly been complied with/observed.
You are, therefore requested to issue a formal sanction advice/letter to the Client in the light of
the above stipulating other necessary terms and conditions contained in the related Investment
Operation Manual(s) as well as Instruction Circulars/Letters time to time issued from Head
Office safeguarding the Bank's interests in all respects with intimation to the PID, Investment
Wing, Head Office, Dhaka.
Ma-assalam.
Yours faithfully,
S/d S/d
SENIOR VICE PRESIDENT VICE PRESIDENT
Copy to:
i The Executive Vice President, Internal Control & Compliance Wing, IBBL, HO, Dhaka.
ii. The Assistant Vice President, Monitoring & Supervision team, PID, IBBL, HO, Dhaka.

VICE PRESIDENT

8
9
Sub: Proposal for enhancement of the existing Composite Working Capital
Facilities/Investment Limit from Tk.500.00 million with TR of Tk.250.00 million to
Tk.1250.00 million with TR of Tk.450.00 million for a period of 1-year on revolving
basis under LC/Bills/MPI/Bai-Murabaha/IBP/MDB/BG mode (LC/Bills Tk.390.00
million + MPI/Bai-Murabaha Tk.450.00 million with 100% TR + IBP/MDB Tk.400.00
million + BG Tk.10.00 million) in addition to the existing HPSM (Project) outstanding
liability of Tk.790.72 million favoring M/s. Badsha Textiles Ltd., a client of Foreign
Exchange Corporate Branch, Dhaka.

Continued from pre-page

The subject proposal was placed before the E.C vide EC Memo No.2008/538 dated 23.03.2008
and the EC in its 1309 th (Adjourned) Meeting held on 27.03.2008 recommended to the Board for
approval.

Due urgency of the client we may, if agreed, issue a formal sanction advice favoring the client
upon kind concurrence of Honorable Chairman, Board of Directors, IBBL subject to approval of
the same by the Board.

Placed for kind consideration and decision;

Mehdi Hasan Khan Md. Yahia

Senior Principal Officer Officer

VP (PID) Please;

10
 ISLAMI BANK BANGLADESH LIMITED
PROJECT INVESTMENT DIVISION
HEAD OFFICE, DHAKA
EC Memo No.2008/ Date : 23.03.2008
Sub:Proposal for enhancement of the existing Composite Working Capital Facilities/Investment
Limit from Tk.500.00 million with TR of Tk.250.00 million to Tk.1250.00 million with TR
of Tk.450.00 million for a period of 1-year on revolving basis under LC/Bills/MPI/Bai-
Murabaha/IBP/MDB/BG mode (LC/Bills Tk.390.00 million + MPI/Bai-Murabaha
Tk.450.00 million with 100% TR + IBP/MDB Tk.400.00 million + BG Tk.10.00 million) in
addition to the existing HPSM (Project) outstanding liability of Tk.790.72 million favoring
M/s. Badsha Textiles Ltd., a client of Foreign Exchange Corporate Branch, Dhaka.
A. Date of Receiving the Proposals & Related Documents
Date of receiving the proposals by the Branch : 23.10.2007
Date of sending proposals from the Branch : 16.03.2008
Date of receiving proposals at Head Office : 16.03.2008
B. Background of the Client/Investment
i. Since when the client has been
a. banking with the Branch : 2004
b. availing investment : 2004
ii. Date of last renewal of Working Capital limit : 06.09.2007
iii. Expiry of the existing limit : 05.09.2008.
The client has been allowed the following Facilities/Limits from IBBL from time to time:
(Amount in million Taka)
Authority Mode Amount Purpose
Board in its HPSM 800.00 (Being 72% of the machinery cost) for setting up of an open
127th meeting (Project) end rotor spinning mill of 16,380 M. Ton capacity per year.
held on Working 260.00 To import/purchase raw materials for the project.
22.04.2004 Capital
(Client did not
avail this limit)
Board in its HPSM 800.00 Allowed the client to avail earlier sanctioned limit for
133rd Meeting (Project) setting up of a 46,440 spindles Ring Spinning Mills instead
held on of setting up of a 4,500 Head open end Rotor Spinning
29.03.2005 Mills
Working 260.00 Allowed the client to avail earlier sanctioned limit to
Capital import/purchase raw materials for the project.
Board in its Working From (LC/Bills Tk.180.00 million + MPI/Bai-Murabaha
143rd Meeting Capital 260.00 to Tk.310.00 million with TR of Tk.250.00 million & BG of
held on 500.00 Tk.10.00 million)
08.07.2006
Board in its HPSM 120.00 To import/purchase capital machinery for the project under
153rd Meeting (Project) BMRE program.
held on Working 500.00 Renewal of the existing Composite Working Capital
30.08.2007 Capital Facilities/Investment Limit of Tk.500.00 million with TR of
Tk.250.00 million.
Now the client has approached the Branch for enhancement of Composite Working Capital
Facilities/Investment Limit upto Tk.910.00 million and unlimited IBP facilities.
C. Particulars of the Client
01 Name of the Project : M/s. Badsha Textiles Ltd.
02 Office Address : 28, Dilkhusa C/A, Dhaka
03 Location of Project : Zamirdia, Valuka, Mymensing
04 Nature of the Project : Manufacturer of cotton yarn (ring spinning unit)
05 Constitution of the Firm : Private Limited Company
(Contd………P/2)

11
 -2-
06 Capacity of the project
No of spindles 59,500
Present Production 34.50 MT/day
Average Count NE 34 and NE 30
07 Capital Structure : Authorized Capital : Tk.500.00 million
Paid-up Capital : Tk.500.00 million
08. Particulars of the Directors/Share Holders
Names Age Address Status in the Co. Extent of Interest
Jb. Md. Badsha Mia 47 34, Chashara C/A, M.D 84%
S/O. Haji Abdul Aziz Mia Narayangonj
Mrs. Asma Begum 39 -do- Director 8%
W/O. Md. Badsha Mia
Jb. Kamal Uddin Ahmed 20 -do- Director 4%
S/O. Md. Badsha Mia
Mina Rani Goash 40 55/B, S.M.Mejah Road, Share holder 2%
W/o.Govinda Kumar Ghosh Narayangonj
Mrs. Kohinoor Begum 42 Do Share holder 2%
W/o. Nurul Islam
Total 100%

09. Performance of the client for last 2-years as per audited report
(Amount in million Taka)
Particulars 2005-06 2006-07
Sales 1106.54 1941.42
Cost of Goods Sold 995.66 1647.4
Gross Profit 110.88 294.02
Less: Administrative Selling Overhead 15.97 18.44
Operating Profit 94.91 275.58
Add: Other Income 0 0
Less: Financial Expenses 16.38 192.3
Net profit 78.53 83.28

10. Asset liability position of the client as on 30.06.2007 as per audited report
(Amount in million Taka)
Liabilities and Stockholder's Equity Amount Assets and Properties Amount
Current Liabilities Current Assets
Sundry Creditors 587.39 Cash in Hand & at Bank 8.96
Liabilities against Expenses 13.01 Sundry Debtors 493.06
Liabilities against Bills Receivables 434.69 Closing Inventory 538.05
Liabilities & LC Overhead 7.96 Loans & Advances 109.92
Total Current Liabilities 1043.05 Stores & Spares 5.40
Security Deposit 22.24
Bank Loan 645.22 Total Current Assets 1177.63

(Contd………P/3)

12
 -3-
Liabilities and Stockholder's Equity Amount Assets and Properties Amount
Long Term Assets
Land & Land Development 34.45
Stockholder's Equity Building & Civil Constructions 303.14
Paid up Capital 500.00 Plant & Machinery 793.74
Net Profit for the year (Net of tax
holiday reserve) 49.97 Vehicles 6.41
Profit as per Previous Balance 47.20 Furniture & Fixtures 4.20
Tax Holiday Reserve 64.72 Office Equipments & Others 28.68
Total Stockholder's Equity 661.89 Total Long Term Assets 1170.62
Fictitious Assets
Preliminary Expenses 0.10
Total Value of Liabilities and Capital 2350.16 Pre-Production Expenses 1.81
Total Fictitious Assets 1.91
Net Worth 659.98 Total Assets and Properties 2350.16
11. Liability position of the client on 02.03.2008 with IBBL
(Amount in million Taka)
Outstanding
Mode Limit Overdue Remarks
Gross Net
HPSM (Project) 800.00 718.47 580.60 00
HPSM (Project) 120.00 72.25 72.25 00
Sub-Total 920.00 790.72 652.85 00
MPI 426.17 394.03 00
490.00
Bai-Murabaha 53.81 47.20 00
(TR-250.00)
Cash LC 154.60 134.60 00
Bank Guarantee 10.00 8.10 7.45 00
Sub-Total 500.00 642.68 583.28 00
Total 1420.00 1433.40 1236.13 00
IBP - 289.65 289.65 00 Out of Limit
Grand Total 1420.00 1723.05 1525.78 00
12. Past performance of the client with IBBL
i. In HPSM (Project) Investment
(Amount in million Taka)
Date of Amount Date of Amount Date of Due for Amount Amount Outstanding
Sanction Sanctioned Disburs. Disbursed Expiry Recovery recovered Overdue Gross Net
17.04.05 800.00 26.04.05 800.00 25.04.13 350.00 381.70 0 718.47 580.60
06.09.07 120.00 18.12.07 72.25 17.06.13 N/A N/A 0 72.25 72.25
Total 920.00 872.25 350.00 381.70 0 790.72 652.85
ii. In Working Capital facilities/Investment
(Amount in million Taka)
Year Import Export Income earned by the Branch
2005 478.95 134.29 2.26
2006 582.41 426.81 83.97
2007 774.25 807.03 169.01
2008 (Up to Jan.) 00 61.99 17.27
Note: The export volume of the project in 2005-06 and 2006-07 are Tk.1064.11 million and Tk.1912.95 million
respectively as per audited Balance Sheet but the export volume with IBBL for 2005, 2006 and 2007 were
only Tk.134.29 million, Tk.426.81 million and Tk.807.03 million respectively which indicates that we are
not receiving all export proceeds of the client.
13. Stock Position of the client as certified by the Branch : Tk.417.83 million
(Contd………P/4)
-4-

13
14. Liability position of the client as per CIB report printed on 10.02.2008
(Amount in million Taka)
Name of the Concerns Mode Outstanding Overdue CL Status Remarks
PAD/BLC/BE 248.90 8.50 STD Since adjusted
LTR 252.80 71.20 STD Since adjusted
LIM 258.20 00 STD
M/s. Badsha Textiles Term Loan 765.60 00 STD
Ltd. Demand Loan 421.00 00 STD
Pledge 53.80 00 STD
LC 511.20 00
Sub-Total 2511.50 79.70
Demand Loan 61.50 00 STD
Hypothecation 40.20 00 STD
M/s. Kamal Yarn Ltd.
Other Indi. 28.00 00 STD
Sub-Total 129.70 00
LIM 84.30 30.80 STD Since adjusted
LTR 75.30 22.20 STD Since adjusted
M/s. Kamal Trade
Pledge 58.30 00 STD
International
LC 58.10 00 STD
Sub-Total 276.00 53.00
PAD/BLC/BE 3.20 00 STD
Overdraft 19.90 00 STD
M/s. Pioneer Sweaters Term Loan 60.40 00 STD
Ltd. Guarantee 1.50 00
LC 46.90 00
Sub-Total 131.90 00
M/s. Sharmin Traders Hypo. 51.50 00 STD
Grand Total 3100.60 132.70 STD
15. Results of IRG
Risks Score Score Obtained Score Short
Financial Risk 50 33 Fully cash secured Superior
Business Risk 18 16 85+ Good
Management Risk 12 12 75-84 Acceptable
Security Risk 10 9 65-74 Marginal
Relationship Risk 10 9 55-64 Special Mention
Total 100 79 45-54 Substandard
35-44 Doubtful
Risk Grading : Acceptable <35 Bad/Loss
16. Working Capital assessment of the project
(Amount in million Taka)
Particulars Tide-up Capacity Utilization
Period 100% 95% 90% 85% 80%
Imported raw material (LC/Bills) 90 416.52 395.69 374.87 354.04 333.22
Imported raw material (MPI) 90 479.00 455.05 431.10 407.15 383.20
Work in process 7 39.37 37.40 35.44 33.47 31.50
Finished goods 15 84.37 80.15 75.93 71.71 67.50
Receivables (IBP) 90 512.43 486.81 461.19 435.57 409.95
Stores & Spares 90 13.61 12.93 12.25 11.57 10.89
Total: 1,545.30 1,468.04 1,390.77 1,313.51 1,236.24
Client’s equity (10%) 292 154.53 146.80 139.08 131.35 123.62
Bank’s Investment (90%) 1,390.77 1,321.23 1,251.70 1,182.16 1,112.62
(Contd………P/5)
-5-

14
Main Assumptions
i) Capacity of the project : 35.50 M. Ton/Day
ii) Sales Price per unit : Tk.US$.3.25 Per Kg.
iii) Wastage : 13%
iv) Price of Basic Raw Material : 0.80 Cents Per/Lb or Tk.140.115/Kg
(assuming 15% value addition on raw
material prices, assuming Tk.69.35/US$ )
v) Direct Labor Cost : Tk.4,500,000.00 Per month
vi) Other manufacturing Overhead : Tk.4,700,000.00 Per month
vii) Store & Spares : 2% of total sales
viii) Administrative Overhead : Tk.1,100,000.00 per month
ix) Selling overhead : Tk.1,000,000.00 Per month
x) Working Hour : 24 hours/Day
xi) Production period : 345 days (assuming 365 days in a year)

D. Particulars of the Proposal

01. Mode & amount of Investment
(Amount in million Taka)
Mode Existing Limit Additional Limit Total
HPSM (Project) 920.00 - 920.00
LC/Bills (Sight/DP) 180.00 210.00 390.00
Working MPI/Bai-Murabaha 310.00 (TR-250.00) 140.00 (TR-200.00) 450.00 (100% TR)
Capital IBP/MDB - 400.00 400.00
Bank Guarantee 10.00 00 10.00
Sub-Total 500.00 (TR-250.00) - 1250.00
Grand Total 1420.00 (TR-250.00) 2170.00 (TR-450.00)
02. Purpose of Investment : To import/procure raw cotton for the project.
03. Period of Investment : For a period of 1-year on revolving basis.
04. Rate of Return : @ 14.00% per annum or the rate to be determined by the
Bank from time to time.
05. Charges/Commission : Charges/Commission will be realized as per existing
Circular/Schedule of the Bank.
06. Mode of disbursement : Deal-to-Deal basis as per Bank’s standard norms.
07. Mode of recovery : Deal-to-Deal basis as per Bank’s standard norms.
08. Security
b. Primary
i. LC/Bills : Related Documents.
ii. MPI/Murabaha : Pledge of Bai-Murabaha goods with prescribed goods security to be sold
under deferred payment shall be held under effective control of the Bank to
be delivered to the Client on payment of Bank’s dues within due date.
iii. TR against : Lien on purchased goods to be released against TR till disposal and deposit
MPI/Murabaha of sales proceeds towards the adjustment of related Investment account(s)
with the Branch on condition that every deal under TR shall have to be
adjusted within six months from the date of disbursement and no
disbursement be made under TR if any deal under TR remain overdue.
iv. BG : Counter guarantee of the client.

(Contd………P/6)

-6-
b. Cash/goods

15
 LC for WC : 5% cash security on cost price/landed cost to be subsequently converted to
: goods security.
MPI//Bai-Murabaha : 10% cash security on cost price/landed cost to be subsequently converted
to goods security.
BG 15% cash security
Note: Earlier Cash security in LC stage was 10% and in MPI/Bai-Murabaha stage was 15%.
c. Collateral
Registered mortgage/creation of further charge on the following (Amount in million Taka)
Particulars FSV/WDV
55.91-bigha project land at Valuka, Mouza-Jamirdia, Mymensingh. 70.00
30.70 bigha additional project land at Valuka, Mouza-Jamirdia, Mymensingh. 37.70
Factory building/structure on the project land (323,351 sft) 256.00
Hypothecation of the existing machinery of the project (WDV on 30.06.2007) 793.74
Total 1157.44
Total value of security
Land & Building : Tk.363.70 million (FSV)
Machinery, existing : Tk.793.74 million (WDV as on 30.06.2007)
Machinery, proposed : Tk.154.61 million (at cost)
Total : Tk.1312.05 million
d) Others
i) Personal Guarantee of all the Directors of the Project Company in his/her/their individual capacity.
ii) Creation of 1st charge on the present and future assets (fixed and floating) including Book-debts of
the Company in favor of the Bank with the Registrar of Joint Stock Companies & Firms,
Bangladesh against the present and future liabilities of the Company with the Bank (if applicable).
iii) Post dated cheques drawn on the Clients Current Accounts with the Branch covering the sale
price of MPI/Murabaha goods and the installments of HPSM Investment must be obtained from
the Client. The concerned investment Client shall deposit the cheque(s) with you through a
forwarding letter in their official letter head pad duly sealed & signed with assurance to maintain
sufficient credit balance in the relevant current A/C so that the cheque(s) are honored on due dates
on presentation if required.
vi) Deposit of 100% Share Certificate with the Branch issued in favour of the shareholders of the
Company with share transferred form (Form 117) dully signed by the concern shareholders.
vii) All charge documents shall have to be executed as per related Investment Operation Manual(s).
E. Justifications and Recommendation of the Branch
01. Almost all machinery under BMRE program have already been reached at factory premises
and it will go for production before June – 2008 as expected by the client. After installation
of the said machinery production capacity of the project will reach at 35.00 M. Ton per day.
02. Due to increase of raw cotton price in the international market along with increase of other
cost of production requirement of Working Capital has been increased remarkably.
03. Their market reputation has been compelling them to maintain the quality of production at a
very high level at any cost. As such the product, quality along with price hike of each and
every item/elements of production, inventories has been forcing them to revise their
Working Capital assessment to continue smooth operation with reputation.
04. The IBP/MDB Facility/Limit was not included in their existing composite Working Capital
Limit. Since the project is 100% export oriented as such for smooth running the business
they will be required IBP/MDB facility.
In view of the above, considering genuine requirements of the client and for smooth running Bank
financed project the EVP and Branch Incumbent has recommended for the proposal for enhancement of
the existing Composite Working Capital Facilities/Investment Limit from Tk.500.00 million with TR of
Tk.250.00 million to Tk.1250.00 million with TR of Tk.400.00 million under LC/Bills/MPI/Bai-
Murabaha/IBP/MDB/BG mode (LC/Bills Tk.390.00 million + MPI/Bai-Murabaha Tk.450.00 million
with TR Tk.400.00 million + IBP/MDB Tk.400.00 million + BG Tk.10.00 million) for a period of 1-year
on revolving basis.
(Contd………P/7)
-7-
F. Head Office Observations

16
 i. The client has been banking with the Branch as well as availing investment since 2004.
Past performance of the client with the Branch is satisfactory.
ii. The main reasons of enhancement of Working Capital Facilities/Investment Limit are to
increase capacity of the project from 49,500 Spindles to 59,500 (i.e. 33 M. Ton/day to
35.50 M. Ton/day), increasing raw material price, and to build up buffer stock in season.
iii. Export volume of the project in 2005, 2006 and 2007 were Tk.134.29 million, Tk.426.81
million and Tk.807.03 million respectively against import volume of Tk.418.95 million,
Tk.582.41 million and Tk.774.25 million respectively which indicates steady growth and
good performance of the project.
iv. The export volume of the project in 2005-06 and 2006-07 are Tk.1064.11 million and
Tk.1912.95 million respectively as per audited Balance Sheet but the export volume with
IBBL for 2005, 2006 and 2007 were only Tk.134.29 million, Tk.426.81 million and
Tk.807.03 million respectively which indicates we are not receiving all export proceeds
of the client.
v. The client has been paying monthly installments against HPSM investment regularly.
They have so far paid Tk.381.70 million against due for recovery of Tk.350.00 million
which shows advance recovery of installment.
vi. The result of IRG is acceptable and the score is 79.
vii. Earlier cash security in LC stage was sanction at 10% and in MPI stage was 15%. Now
the Branch has recommended for sanction of cash security at 5% in LC stage and 10% in
MPI stage.
viii. Total Working Capital requirement of the project is Tk.1390.77 million assuming 90%
capacity utilization. After taking 10% equity from the client net Working Capital
requirements of the client will stand at Tk.1251.70 million.
ix. Total collateral security of the client in terms of Land, Building and Machinery is
Tk.1312.05 against total investment of Tk.2170.00 million (HPSM-Project Tk.920.00
million + Working Capital Tk.1250 million).
G. Head Office Recommendation
In view of the above, recommendation of the Branch Incumbent, we also recommend the
proposal for enhancement of the existing Composite Working Capital Facilities/Investment
Limit from Tk.500.00 million with TR of Tk.250.00 million to Tk.1250.00 million with TR of
Tk.450.00 million for a period of 1-year on revolving basis under
LC/Bills/MPI/Bai-Murabaha/IBP/MDB/BG mode (LC/Bills Tk.390.00 million + MPI/Bai-
Murabaha Tk.450.00 million with 100% TR + IBP/MDB Tk.400.00 million + BG Tk.10.00
million) in addition to the existing HPSM (Project) outstanding liability of Tk.790.72 million
favoring the client.
The proposal is now placed before the Executive Committee for kind consideration and if
approved, the following resolution may be adopted:
RESOLUTION
“Resolved that the proposal for enhancement of the existing Composite Working Capital
Facilities/Investment Limit from Tk.500.00 million with TR of Tk.250.00 million to Tk.1250.00
million with TR of Tk.450.00 million for a period of 1-year on revolving basis under
LC/Bills/MPI/Bai-Murabaha/IBP/MDB/BG mode (LC/Bills Tk.390.00 million + MPI/Bai-
Murabaha Tk.450.00 million with 100% TR + IBP/MDB Tk.400.00 million + BG Tk.10.00
million) in addition to the existing HPSM (Project) outstanding liability of Tk.790.72 million
favoring M/s. Badsha Textiles Ltd., a client of Foreign Exchange Corporate Branch, Dhaka
under the terms & conditions, as envisaged in the Memo be and is hereby recommended to the
Board.”

(M. FARIDUDDIN AHMED)

EXECUTIVE PRESIDENT

17
18
19
20
Placed for kind consideration and decision;

Mehdi Hasan Khan Md. Yahia

Senior Principal Officer Officer

VP (PID) Please;

21
 ISLAMI BANK BANGLADESH LIMITED
PROJECT INVESTMENT DIVISION
HEAD OFFICE, DHAKA
Office Note: Date : 19.03.2008
Sub:Proposal for enhancement of the existing Composite Working Capital Facilities/Investment
Limit from Tk.500.00 million with TR of Tk.250.00 million to Tk.1250.00 million with TR
of Tk.400.00 million under LC/Bills/MPI/Bai-Murabaha/IBP/MDB/BG mode (LC/Bills
Tk.390.00 million + MPI/Bai-Murabaha Tk.450.00 million with 100% TR + IBP/MDB
Tk.400.00 million + BG Tk.10.00 million) in addition to the existing HPSM (Project)
Investment Limit of Tk.920.00 million for a period of 1-year on revolving basis A/c. M/s.
Badsha Textiles Ltd., a client of Foreign Exchange Corporate Branch, Dhaka.
A. Date of Receiving the Proposals & Related Documents
Date of receiving the proposals by the Branch : 23.10.2007
Date of sending proposals from the Branch : 16.03.2008
Date of receiving proposals at Head Office : 16.03.2008
B. Background of the Client/Investment
i. Since when the client has been
a. banking with the Branch : 2004
b. availing investment : 2004
ii. Date of last renewal of Working Capital limit : 06.09.2007
iii. Expiry of the existing limit : 05.09.2008.
The client has been allowed the following Facilities/Limits from IBBL from time to time:
(Amount in million Taka)
Authority Mode Amount Purpose
Board in its HPSM 800.00 (Being 72% of the machinery cost) for setting up of an open
127th meeting (Project) end rotor spinning mill of 16,380 M. Ton capacity per year.
held on Working 260.00 To import/purchase raw materials for the project.
22.04.2004 Capital
(Client did not
avail this limit)
Board in its HPSM 800.00 Allowed the client to avail earlier sanctioned limit for
133rd Meeting (Project) setting up of a 46,440 spindles Ring Spinning Mills instead
held on of setting up of a 4,500 Head open end Rotor Spinning
29.03.2005 Mills
Working 260.00 Allowed the client to avail earlier sanctioned limit to
Capital import/purchase raw materials for the project.
Board in its Working From (LC/Bills Tk.180.00 million + MPI/Bai-Murabaha
143rd Meeting Capital 260.00 to Tk.310.00 million with TR of Tk.250.00 million & BG of
held on 500.00 Tk.10.00 million)
08.07.2006
Board in its HPSM 120.00 To import/purchase capital machinery for the project under
153rd Meeting (Project) BMRE program.
held on Working 500.00 Renewal of the existing Composite Working Capital
30.08.2007 Capital Facilities/Investment Limit of Tk.500.00 million with TR of
Tk.250.00 million.
Now the client has approached the Branch for enhancement of Composite Working Capital
Facilities/Investment Limit upto Tk.910.00 million and unlimited IBP facilities.
C. Particulars of the Client
01 Name of the Project : M/s. Badsha Textiles Ltd.
02 Office Address : 28, Dilkhusa C/A, Dhaka
03 Location of Project : Zamirdia, Valuka, Mymensing
04 Nature of the Project : Manufacturer of cotton yarn (ring spinning unit)
05 Constitution of the Firm : Private Limited Company
(Contd………P/2)

22
 -2-
06 Capacity of the project
No of spindles 59,500
Present Production 34.50 MT/day
Average Count NE 34 and NE 30
07 Capital Structure : Authorized Capital : Tk.500.00 million
Paid-up Capital : Tk.500.00 million
08. Particulars of the Directors/Share Holders
Names Age Address Status in the Co. Extent of Interest
Jb. Md. Badsha Mia 47 34, Chashara C/A, M.D 84%
S/O. Haji Abdul Aziz Mia Narayangonj
Mrs. Asma Begum 39 -do- Director 8%
W/O. Md. Badsha Mia
Jb. Kamal Uddin Ahmed 20 -do- Director 4%
S/O. Md. Badsha Mia
Mina Rani Goash 40 55/B, S.M.Mejah Road, Share holder 2%
W/o.Govinda Kumar Ghosh Narayangonj
Mrs. Kohinoor Begum 42 Do Share holder 2%
W/o. Nurul Islam
Total 100%

09. Performance of the client for last 2-years as per audited reports
(Amount in million Taka)
Particulars 2005-06 2006-07
Sales 1106.54 1941.42
Cost of Goods Sold 995.66 1647.4
Gross Profit 110.88 294.02
Less: Administrative Selling Overhead 15.97 18.44
Operating Profit 94.91 275.58
Add: Other Income 0 0
Less: Financial Expenses 16.38 192.3
Net profit 78.53 83.28

10. Asset liability position of the client as on 30.06.2007 as per audited reports
(Amount in million Taka)
Liabilities and Stockholder's Equity Amount Assets and Properties Amount
Current Liabilities Current Assets
Sundry Creditors 587.39 Cash in Hand & at Bank 8.96
Liabilities against Expenses 13.01 Sundry Debtors 493.06
Liabilities against Bills Receivables 434.69 Closing Inventory 538.05
Liabilities & LC Overhead 7.96 Loans & Advances 109.92
Total Current Liabilities 1043.05 Stores & Spares 5.40
Security Deposit 22.24
Bank Loan 645.22 Total Current Assets 1177.63

(Contd………P/3)

23
 -3-
Liabilities and Stockholder's Equity Amount Assets and Properties Amount
Long Term Assets
Land & Land Development 34.45
Stockholder's Equity Building & Civil Constructions 303.14
Paid up Capital 500.00 Plant & Machinery 793.74
Net Profit for the year (Net of tax
holiday reserve) 49.97 Vehicles 6.41
Profit as per Previous Balance 47.20 Furniture & Fixtures 4.20
Tax Holiday Reserve 64.72 Office Equipments & Others 28.68
Total Stockholder's Equity 661.89 Total Long Term Assets 1170.62
Fictitious Assets
Preliminary Expenses 0.10
Total Value of Liabilities and Capital 2350.16 Pre-Production Expenses 1.81
Total Fictitious Assets 1.91
Net Worth 659.98 Total Assets and Properties 2350.16
11. Liability position of the client on 02.03.2008 with IBBL
(Amount in million Taka)
Outstanding
Mode Limit Overdue Remarks
Gross Net
HPSM (Project) 800.00 718.47 580.60 00
HPSM (Project) 120.00 72.25 72.25 00
Sub-Total 920.00 790.72 652.85 00
MPI 426.17 394.03 00
490.00
Bai-Murabaha 53.81 47.20 00
(TR-250.00)
Cash LC 154.60 134.60 00
Bank Guarantee 10.00 8.10 7.45 00
Sub-Total 500.00 642.68 583.28 00
Total 1420.00 1433.40 1236.13 00
IBP - 289.65 289.65 00 Out of Limit
Grand Total 1420.00 1723.05 1525.78 00
12. Past performance of the client with IBBL
i. In HPSM (Project) Investment
(Amount in million Taka)
Date of Amount Date of Amount Date of Due for Amount Amount Outstanding
Sanction Sanctioned Disburs. Disbursed Expiry Recovery recovered Overdue Gross Net
17.04.05 800.00 26.04.05 800.00 25.04.13 350.00 381.70 0 718.47 580.60
06.09.07 120.00 18.12.07 72.25 17.06.13 N/A N/A 0 72.25 72.25
Total 920.00 872.25 350.00 381.70 0 790.72 652.85
ii. In Working Capital facilities/Investment
(Amount in million Taka)
Year Import Export Income earned by the Branch
2005 478.95 134.29 2.26
2006 582.41 426.81 83.97
2007 774.25 807.03 169.01
2008 (Up to Jan.) 00 61.99 17.27
Note: The export volume of the project in 2005-06 and 2006-07 are Tk.1064.11 million and Tk.1912.95 million
respectively as per audited Balance Sheet but the export volume with IBBL for 2005, 2006 and 2007 were
only Tk.134.29 million, Tk.426.81 million and Tk.807.03 million respectively which indicates we are not
receiving all export proceeds of the client.
13. Stock Position of the client as certified by the Branch : Tk.417.83 million
(Contd………P/4)

24
 -4-
14. Liability position of the client as per CIB report printed on 10.02.2008
(Amount in million Taka)
Name of the Concerns Mode Outstanding Overdue CL Status Remarks
PAD/BLC/BE 248.90 8.50 STD Since adjusted
LTR 252.80 71.20 STD Since adjusted
LIM 258.20 00 STD
M/s. Badsha Textiles Term Loan 765.60 00 STD
Ltd. Demand Loan 421.00 00 STD
Pledge 53.80 00 STD
LC 511.20 00
Sub-Total 2511.50 79.70
Demand Loan 61.50 00 STD
Hypothecation 40.20 00 STD
M/s. Kamal Yarn Ltd.
Other Indi. 28.00 00 STD
Sub-Total 129.70 00
LIM 84.30 30.80 STD Since adjusted
LTR 75.30 22.20 STD Since adjusted
M/s. Kamal Trade
Pledge 58.30 00 STD
International
LC 58.10 00 STD
Sub-Total 276.00 53.00
PAD/BLC/BE 3.20 00 STD
Overdraft 19.90 00 STD
M/s. Pioneer Sweaters Term Loan 60.40 00 STD
Ltd. Guarantee 1.50 00
LC 46.90 00
Sub-Total 131.90 00
M/s. Sharmin Traders Hypo. 51.50 00 STD
Grand Total 3100.60 132.70 STD
15. Results of IRG
Risks Score Score Obtained Score Short
Financial Risk 50 33 Fully cash secured Superior
Business Risk 18 16 85+ Good
Management Risk 12 12 75-84 Acceptable
Security Risk 10 9 65-74 Marginal
Relationship Risk 10 9 55-64 Special Mention
Total 100 79 45-54 Substandard
35-44 Doubtful
Risk Grading : Acceptable <35 Bad/Loss
16. Working Capital assessment of the project
(Amount in million Taka)
Particulars Tide-up Capacity Utilization
Period 100% 95% 90% 85% 80%
Imported raw material (LC/Bills) 90 416.52 395.69 374.87 354.04 333.22
Imported raw material (MPI) 90 479.00 455.05 431.10 407.15 383.20
Work in process 7 39.37 37.40 35.44 33.47 31.50
Finished goods 15 84.37 80.15 75.93 71.71 67.50
Receivables (IBP) 90 512.43 486.81 461.19 435.57 409.95
Stores & Spares 90 13.61 12.93 12.25 11.57 10.89
Total: 1,545.30 1,468.04 1,390.77 1,313.51 1,236.24
Client’s equity (10%) 292 154.53 146.80 139.08 131.35 123.62
Bank’s Investment (90%) 1,390.77 1,321.23 1,251.70 1,182.16 1,112.62
(Contd………P/5)

25
 -5-
Main Assumptions
i) Capacity of the project : 35.50 M. Ton/Day
ii) Sales Price per unit : Tk.US$.3.25 Per Kg.
xii) Wastage : 13%
xiii) Price of Basic Raw Material : 0.80 Cents Per/Lb or Tk.140.115/Kg
(assuming 15% value addition on raw
material prices, assuming Tk.69.35/US$ )
xiv) Direct Labor Cost : Tk.4,500,000.00 Per month
xv) Other manufacturing Overhead : Tk.4,700,000.00 Per month
xvi) Store & Spares : 2% of total sales
xvii) Administrative Overhead : Tk.1,100,000.00 per month
xviii) Selling overhead : Tk.1,000,000.00 Per month
xix) Working Hour : 24 hours/Day
xx) Production period : 345 days (assuming 365 days in a year)

D. Particulars of the Proposal

01. Mode & amount of Investment
(Amount in million Taka)
Mode Existing Limit Additional Limit Total
HPSM (Project) 920.00 - 920.00
LC/Bills (Sight/DP) 180.00 210.00 390.00
Working MPI/Bai-Murabaha 310.00 (TR-250.00) 140.00 (TR-200.00) 450.00 (100% TR)
Capital IBP/MDB - 400.00 400.00
Bank Guarantee 10.00 00 10.00
Sub-Total 500.00 (TR-250.00) - 1250.00
Grand Total 1420.00 (TR-250.00) 2170.00 (TR-400.00)
02. Purpose of Investment : To import/procure raw cotton for the project.
03. Period of Investment : For a period of 1-year on revolving basis.
04. Rate of Return : @ 15.00% per annum or the rate to be determined by the
Bank from time to time.
05. Charges/Commission : Charges/Commission will be realized as per existing
Circular/Schedule of the Bank.
06. Mode of disbursement : Deal-to-Deal basis as per Bank’s standard norms.
07. Mode of recovery : Deal-to-Deal basis as per Bank’s standard norms.
08. Security
c. Primary
i. LC/Bills : Related Documents.
ii. MPI/Murabaha : Pledge of Bai-Murabaha goods with prescribed goods security to be sold
under deferred payment shall be held under effective control of the Bank to
be delivered to the Client on payment of Bank’s dues within due date.
iii. TR against : Lien on purchased goods to be released against TR till disposal and deposit
MPI/Murabaha of sales proceeds towards the adjustment of related Investment account(s)
with the Branch on condition that every deal under TR shall have to be
adjusted within six months from the date of disbursement and no
disbursement be made under TR if any deal under TR remain overdue.
iv. BG : Counter guarantee of the client.

(Contd………P/6)

-6-

26
 b. Cash/goods
LC for WC : 5% cash security on cost price/landed cost to be subsequently converted to
: goods security.
MPI//Bai-Murabaha : 10% cash security on cost price/landed cost to be subsequently converted
to goods security.
BG 15% cash security
Note: Earlier Cash security in LC stage was 10% and in MPI/Bai-Murabaha stage was 15%.
c. Collateral
Registered mortgage/creation of further charge on the following (Amount in million Taka )
Particulars FSV/WDV
55.91-bigha project land at Valuka, Mouza-Jamirdia, Mymensingh. 70.00
30.70 bigha additional project land at Valuka, Mouza-Jamirdia, Mymensingh. 37.70
Factory building/structure on the project land (323,351 sft) 256.00
Hypothecation of the existing machinery of the project (WDV on 30.06.2007) 793.74
Total 1157.44
Total value of security
Land & Building : Tk.363.70 million (FSV)
Machinery, existing : Tk.793.74 million (WDV as on 30.06.2007)
Machinery, proposed : Tk.154.61 million (at cost)
Total : Tk.1312.05 million
d) Others
i) Personal Guarantee of all the Directors of the Project Company in his/her/their individual capacity.
ii) Creation of 1st charge on the present and future assets (fixed and floating) including Book-debts of
the Company in favor of the Bank with the Registrar of Joint Stock Companies & Firms,
Bangladesh against the present and future liabilities of the Company with the Bank (if applicable).
iii) Post dated cheques drawn on the Clients Current Accounts with the Branch covering the sale
price of MPI/Murabaha goods and the installments of HPSM Investment must be obtained from
the Client. The concerned investment Client shall deposit the cheque(s) with you through a
forwarding letter in their official letter head pad duly sealed & signed with assurance to maintain
sufficient credit balance in the relevant current A/C so that the cheque(s) are honored on due dates
on presentation if required.
viii) Deposit of 100% Share Certificate with the Branch issued in favour of the shareholders of
the Company with share transferred form (Form 117) dully signed by the concern shareholders.
ix) All charge documents shall have to be executed as per related Investment Operation Manual(s).
E. Justifications and Recommendation of the Branch
01. Almost all machinery under BMRE program have already been reached at factory premises
and it will go for production before June – 2008 as expected by the client. After installation
of the said machinery production capacity of the project will reach at 35.00 M. Ton per day.
02. Due to increase of raw cotton price in the international market along with increase of other
cost of production requirement of Working Capital has been increased remarkably.
03. Their market reputation has been compelling them to maintain the quality of production at a
very high level at any cost. As such the product, quality along with price hike of each and
every item/elements of production, inventories has been forcing them to revise their
Working Capital assessment to continue smooth operation with reputation.
04. The IBP/MDB Facility/Limit was not included in their existing composite Working Capital
Limit. Since the project is 100% export oriented as such for smooth running the business
they will be required IBP/MDB facility.
In view of the above, considering genuine requirements of the client and for smooth running Bank
financed project the EVP and Branch Incumbent has recommended for the proposal for enhancement of
the existing Composite Working Capital Facilities/Investment Limit from Tk.500.00 million with TR of
Tk.250.00 million to Tk.1250.00 million with TR of Tk.400.00 million under LC/Bills/MPI/Bai-
Murabaha/IBP/MDB/BG mode (LC/Bills Tk.390.00 million + MPI/Bai-Murabaha Tk.450.00 million
with TR Tk.400.00 million + IBP/MDB Tk.400.00 million + BG Tk.10.00 million) for a period of 1-year
on revolving basis.
(Contd………P/7)
-7-

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Sub:Proposal for enhancement of the existing Composite Working Capital Facilities/Investment
Limit from Tk.500.00 million with TR of Tk.250.00 million to Tk.1250.00 million with TR
of Tk.450.00 million under LC/Bills/MPI/Bai-Murabaha/IBP/MDB/BG mode (LC/Bills
Tk.390.00 million + MPI/Bai-Murabaha Tk.450.00 million with 100% TR + IBP/MDB
Tk.400.00 million + BG Tk.10.00 million) in addition to the existing HPSM (Project)
Investment Limit of Tk.920.00 million for a period of 1-year on revolving basis A/c. M/s.
Badsha Textiles Ltd., a client of Foreign Exchange Corporate Branch, Dhaka.

F. Head Office Observations

x. The client has been banking with the Branch as well as availing investment since 2004.
Past performance of the client with the Branch is satisfactory.
xi. The main reasons of enhancement of Working Capital Facilities/Investment Limit are to
increase capacity of the project from 49,500 Spindles to 59,500 (i.e. 33 M. Ton/day to
35.50 M. Ton/day), increasing raw material price, and to build up buffer stock in season.
xii. Export volume of the project in 2005, 2006 and 2007 were Tk.134.29 million, Tk.426.81
million and Tk.807.03 million respectively against import volume of Tk.418.95 million,
Tk.582.41 million and Tk.774.25 million respectively which indicates steady growth and
good performance of the project.
xiii. The export volume of the project in 2005-06 and 2006-07 are Tk.1064.11 million and
Tk.1912.95 million respectively as per audited Balance Sheet provided by the Branch but
the export volume of the client with IBBL for 2005, 2006 and 2007 were Tk.134.29
million, Tk.426.81 million and Tk.807.03 million respectively.
xiv. The client has been paying monthly installments against HPSM investment regularly.
They have so far paid Tk.381.70 million against due for recovery of Tk.350.00 million
which shows advance recovery of installment.
xv. The result of IRG is acceptable and the score is 79.
xvi. Earlier cash security in LC stage was sanction at 10% and in MPI stage was 15%. Now
the Branch has recommended for sanction of cash security at 5% in LC stage and 10% in
MPI stage.
xvii. Total Working Capital requirement of the project is Tk.1390.77 million assuming 90%
capacity utilization. After taking 10% equity from the client net Working Capital
requirements of the client will stand at Tk.1251.70 million.

Placed for kind consideration and decision;

Mehdi Hasan Khan Md. Yahia

Senior Principal Officer Officer

VP (PID) Please;

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