RAM Apparel Ltd.

Mohakhali Branch

Branch Amount in Lac

position as on
NATIONAL BANK LIMITED 30.06.2018
Credit Risk Management-I Deposit 59950.07
(Projects & Syndicate Finance Unit) Advance 95565.47
Head Office, Dhaka Profit 1021.38
ADR 159.41 %
EC Memo No: /2018/CRM-I NPL 10019.71
Date: 26-07-
% of NPL
2018 10.88 %%
From : The Managing Director Cof (Br.) 7.81%
To : The Executive Committee Cof (Bank) 8.64%

Ref: Proposal for Sanction of:

A Permission for allowing local purchase through purchase order for Tk.125.00 lac
(inner limit of 700.00 lac) along with existing specific LCs (360 Days UPAS/DP) of
USD 8.56 lac equiv. to Tk. 716.90 lac (USD $1=Tk. 83.75) for importing of Brand New
Capital Machinery (07 line garment factory) from the different suppliers of
Korea/China/Japan/Italy/Germany/Local Supplier at 25% margin in the form of FDR and
commission @ 0.40% for 1st quarter and 0.30% for subsequent quarters and part thereof for
L/C /ABP.
B Permission to allow utilizing 06 years Loan (Gen)-1 for Tk. 100.00 lac (inner limit of
Tk.525.00 lac)@ 15% interest p.a. at quarterly rest for making payment of said local
purchase order liabilities against import of capital machinery under Sl. No. “A” above;
C Enhancement of 08 years Loan (Gen)-2 limit from Tk. 400.00 Lac to Tk. 550.00 Lac at
15.00% interest p.a. at quarterly rest for civil construction of factory building tenor 08 (eight)
years including 18 months moratorium period instead of 12 months moratorium period. The loan liability
will be adjusted by 26 (twenty six) equal quarterly installment to be fixed by the Branch on actual
disbursement amount starting from the 6th quarter from the date of first disbursement

A/c: RAM Apparel Ltd. Managing Director: Mr. Md. Abdul Matin
Financial Delegation: The Executive Committee

Background & justification of the captioned facilities:

The Executive Committee of Board of Directors of the Bank in its 540 th meeting held on
31.10.2017 approved the below mentioned facilities favoring RAM Apparel Ltd.

A Specific L/Cs (360 days UPAS/DP) of USD 8.56 lac equiv. to Tk. 700.00 lac (USD
$1=Tk. 81.75) for importing of Brand New Capital Machinery (07 line garment
factory) from the different suppliers of Korea/China/Japan/Italy/Germany/Local Supplier at
25% margin in the form of FDR and commission @ 0.40% for 1st quarter and 0.30% for
subsequent quarters and part thereof for L/C /ABP.
B 06 years (including 12 months Moratorium period) Loan (Gen)-01 for Tk. 525.00 lac
@ 12% interest p.a. at quarterly rest for making payment of said UPAS/DP L/C liabilities
against import of capital machinery under Sl. No. “A” above;
C 08 years (including 12 month Moratorium period) Loan (Gen)-02 for TK. 400.00 lac
at 12.00% interest rate p.a. at quarterly rest for civil construction of factory building
D BTB L/C Limit for Tk. 1471.50 lac equiv. to US $ 18.00 Lac approx. (US$1=BDT 81.75)
with the provision of utilizing USD 5.00 Lac (within the total BTB L/C limit of USD 18.00 lac) as
L/C Usance /Sight against firm contract of reputed buyers (shall not be replaced by export L/C)
with commission @ 0.40% for 1st quarter & 0.30% for subsequent quarters & part thereof
E Packing Credit (PC) limit for Tk. 40.00 lac (must not exceed 10% of FOB value of export
L/C/ firm contract of the unit) at 7.00% interest rate p.a. at quarterly rest to meet the salary &
other overhead expenses.
F OD (Gen) limit for Tk. 80.00 lac at 12.00% interest rate p.a. at quarterly rest to meet up
emergency Working Capital requirement for smooth running of the factory.

Previously the customer assumed that they will procure all capital machinery from foreign
supplier but the client needs to purchase from local supplier through purchase order as the seller
is not agreed for L/C. On the other hand branch informed that if we allow the client loan (Gen-01)
facility of Tk. 100.00 lac the liability will be adjusted within 06 years from now instead of 07 years(
with DP period 360 days) as per Head office approval. In that case the customer wants to
purchase machinery from local supplier through purchase order amounting Tk.125.00 lac. For
making payment of local supplier the customer wants to avail Loan (G)-1 facility amounting Tk.
100.00 lac inner limit of earlier approved of Tk. 525.00 Lac.
At the time of planning of the project the customer assumed that the refreshment room, Dining,
day care will be build up on the north side of the main factory building but later it has been
decided that it is not possible to construct refreshment room, Dining, day care on the north side
of the main factory building because of huge amount of investment is required for said
construction. Now the refreshment room, Dining, day care will be constructed on the 3 rd floor of
the building. The construction cost has increased by Tk.336.00 lac due to construction of 3rd
floor. In the mean time the branch has informed that the customer has taken preparation to
inaugurate the project by July, 2018, but due to some unavoidable circumstance, such as loan

Page 1 of 23
 RAM Apparel Ltd.
Mohakhali Branch

disbursement delay, bad weather, rain, construction material price hike, other substantial costs
have increased as well as project construction work has been hampered .
So production will take place in the middle of September and export proceed may not be possible
to be realized before June 2019. For that reason branch has requested to allow 18 months
moratorium period instead of 12 months moratorium period. Presently the client has approached
to our Mohakhali Branch for enhancement of 08 years loan (Gen) -2 from Tk.400.00 Lac to Tk.
550.00 Lac at 12.00% interest p.a. at quarterly rest for civil construction of factory building.
Mention may be made that previously the customer had applied loan (Gen) -2 limit of Tk. 600.00
lac, whereas the Executive Committee of Board of Directors of our Bank approved only Tk. 400.00
lac, which is insufficient for completion of the project. So branch has recommended for
enhancement.
1. Key information:
i Branch : Mohakhali Branch
ii. Borrower’s name : RAM Apparel Ltd
iii. Key person & position : Md. Abdul Matin, Managing Director.
iv. Legal status of the : Private Limited company
borrowing concern
v. Name of the group : N/A
vi. Business/ Industry : Manufacturing : Apparels
Sector
vii. Nature of business : 100% export oriented Readymade Garments Industry to produce
Denim /Non denim 5Pkt pant, Chino long pant, Jogger, Capri, 5Pkt
Bermuda, Chino Bermuda and Cargo etc. of different sizes and
styles according to buyer’s specifications.
viii. Banking with NBL : 18.05.2017; A/c no. 1043002220248
since
ix. Credit facility availing : 05.12.2017
since
x. Purpose of credit : To meet up fund requirement for capital expenditure, civil works,
working capital & others.
xi. Owner of collateral : Mr. Md. Abdul Matin, Brigadier General (Retd.) Mr. Md.
security Rafikuzzaman, Mr. Ashoke Kumar Baidy, Mr. Mizan Rahman, Mr.
Md. Mostaqur Rahman, Mr. Md. Akramul Islam Moazumder, Mr.
Abdul Alim all are the directors of Ram Apparels Ltd
xii. Nature of Amount
Expiry/
Nature of Facility : Approval Total
Existing Proposed validity
Sought
Permission
for allowing
Tk.125.0
local
0 Lac
purchase
inner Specific deal
L/C (360 DP/UPAS) : through 700.00 700.00
limit of basis
purchase
Tk.700.0
order for
0 lac
Capital
Machinery
Permission Tk.100.0
for making 0 Lac
payment of inner
Loan(Gen)-1 : 525.00 525.00 06 years
local supplier limit of
against Tk.525.0
Facility: A 0 lac
Loan(Gen)-2 Enhancement 418.87 08 years including
: o for civil [O//L 150.00 568.87 18 month grace
construction 400.00] period
One year
from date of
LC (BTB Revolving) : --- 1471.50 --- 1471.50 starting of
commercial
operation
One year
from date of
PC limit : --- 40.00 --- 40.00 starting of
commercial
operation
One year
from date of
OD (Gen) : --- 80.00 --- 80.00 starting of
commercial
operation
Total : Funded 1063.87 150.00 1213.87
Non-Funded 2171.50 --- 2171.50

Page 2 of 23
 RAM Apparel Ltd.
Mohakhali Branch

Total 3235.37 150.00 3385.37

Net 2535.37 150.00 2685.37
Value of Collateral
xiii : Particulars Existing Proposed Total
Security
Branch valuation : Market Value 1030.00 1030.00
Dt: 12.09.2017 : Forced Sale Value 875.50 875.50
: Market Value 1030.00 1030.00
Surveyors valuation
875.50 875.50
Dt: 12.09.2017 : Forced Sale Value
CIB report obtained on 16.05.2018 and status of the liabilities is
Xiv CIB Information :
“UC”.
Remarks, if
CRG Score Risk Grade
Xv CRG Dated:25.07.16 : any
79 Acceptable --
Validity of
Credit Rating Rated by
Rating
Xvi Credit Rating :
Un-rated N/A N/A
Un-rated N/A N/A
Commission Margin Interest Rate
15% for
Loan (Gen)s,
xviii Loan Pricing : 0.40% for 1st quarter and 15% in the form
OD(G) and
0.30% for subsequent quarters of FDR
7% for PC
limit
Information for forced Amount and Present
Xix : Reason for forced loan
loan date of creation outstanding
Loan or investment % of share &
Director’s name Name of the Bank
sanctioned to any position
Xx :
Bank’s Directors (if
N/A
any)
2 (A). Exposure with NBL, Mohakhali Branch (Existing & Proposed): (Taka in lakh)
Sl Nature of Existing Outstanding Overdu Propos Total Limit Purpose
facility Limit As on e ed limit
25-07-2018
A L/C (360 208.97 - Tk.125. Import of
DP/UPAS) 00 Lac capital
272.93 inner machinery
700.00 700.00
limit of
ABP
Tk.700.
00 lac
B - Tk.125. Retire of LC
39.05 00 Lac under facility –A
inner
Loan(Gen)-1 525.00 525.00
limit of
Tk.700.
00 lac
C Loan(Gen)-2 418.87 For civil
[O//L 418.87 18.87 ** 150.00 556.85 construction
400.00
E LC (BTB Not yet - For working
1471.50 1471.50
Revolving) availed capital
F Not yet - For working
PC limit 40.00 40.00
availed capital
G Not yet - For working
OD (Gen) 80.00 80.00
availed capital
Funded 1063.87 457.92 18.87 150.0
1201.85
0
Non 481.90 -
2171.50
Funded- 2171.50
Total 3235.37 939.82 18.87 150.0
3385.37
0
Less: LC (700.00
spec. to be )
converted
(700.00)
into
Loan(Gen)-1

Net 2535.37 939.82 18.87 150.0 2685.37

Exposure 0

Page 3 of 23
 RAM Apparel Ltd.
Mohakhali Branch

**Loan (G)-2 the EOL shows due to Application of quarterly interest.

2 (B) Security arrangements (Proposed) A/c: RAM Apparel Ltd.

: 15% margin for L/C in the form of FDR
: Lien on Shipping Documents
: Lien on export L/C and acceptance of LC opening bank
Primary
Lien on FDR for Tk. 20.00 Lac
Security
: Hypothecation of all existing Machinery (if any) & machinery to be
imported/procured duly insured under bank’s mortgage clause covering all
possible risks.
: Hypothecation of raw materials, WIP, and finished goods duly insured under
bank’s mortgage clause covering all possible risks.
Registered Mortgage on the 112.65 decimal Project land and construction
Collateral thereon at Mouza: Tak Khathora., Sub-Registry Office: Sadar Gazipur & P.S.
security Joydebpur, District: Gazipur, owned by Mr. Md. Abdul Matin, Brigadier General
:
(Retd.) Mr. Md. Rafikuzzaman, Mr. Ashoke Kumar Baidy, Mr. Mizan Rahman, Mr.
Md. Mostaqur Rahman, Mr. Md. Akramul Islam Moazumder, Mr. Abdul Alim all
are the directors of Ram Apparels Ltd (Present Market Value Tk. 1030.00 lac
(DV Tk. 875.50 lac) as assessed by branch officials and ZASS Survey Ltd.
:  Irrevocable General Power of Attorney (in case of land- registered and in
other cases notarized as applicable) to be obtained from the
mortgagor/borrower/company in terms of the Section 12 of Artha Rin
Adalat Ain 2003, authorizing the Bank to sell the mortgaged property,
Other hypothecated assets, and other assets (movable & immovable) of the
Security company/borrower in case of failure to adjust the liability in time.
 1st charge on all fixed & floating assets of the borrowing company
(existing & future) with the RJSC & Firms covering entire facilities as
proposed supported by Board resolution.
 Fresh Personal Guarantee of all the Directors of the company & their
spouses.
 Fresh Personal Guarantee and written consent of the mortgagor (s) for
creation of mortgage.
 Post dated cheque covering each monthly installment of Loan (Gen) accounts.
Branch manager shall be ensured that the cheques are perfectly drawn in all
respect.
 Post dated cheque covering 10% above of each facility shall be obtained.
Branch manager shall be ensured that the cheques are perfectly drawn in
all respect.
 02 set standard & required charge documents
Details of security:
Items Present After complete of project
MV FSV MV FSV
Project Land & 700.00 595.00 700.00 595.00
land
development
Civil 330.00 280.50 1005.51 854.68
Construction
Sub Total 1030.00 875.50 1705.51 1449.68
Machinery 0.00 0.00 700.00 595.00
(Hypo)
Total 1030.00 875.50 2405.51 2044.68
3. Credit allowing capacity of NBL: N/A
4. Performance of the Client –
Earnings from the Group (Fig Tk in Lakh)
Year Name of account Interest Comm. Others Total
2018 up RAM Apparel Ltd. 20.87 3.58 -- 24.45
to
30.06.201
8

Import Performance of the client with NBL/other Banks/NBFI – Fig Tk. In Lakh

Year Item L/C Opened Document retired Outstanding

No. Amount No. Amount No. Amount
Machinery
2018 13 531.22 01 49.32 11. 481.90

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 RAM Apparel Ltd.
Mohakhali Branch

Local Export under BTB LC with Jamuna Bank Ltd (A/c: Fast Track Accessories) Prop: Mr.
Akramul Islam Majumder Tk. in
Lakh
Year Export made BDT Proceed Proceed to be Name of Banks
(USD) realized realized
2015 3.5 280.0 280.00 - Jamuna Bank Ltd
0
2016 3.95 316.0 316.00 - Jamuna Bank Ltd
0
2017 4.50 360.0 360.00 - Jamuna Bank Ltd
0

CD account turnover with NBL Mohakhali Branch: (Fig Tk in

Lakh)
A/C Period Dr. Cr. Sum Maximum Minimum Present
Sum
RAM Apparel
2017 163.83 164.42 23.09 0.10
Ltd.
A/C No.
2018 up to 25-07-
104300222024 674.95 656.55 100.58 0.02 0.60
2018
8

6. Documentation status (for existing facilities): Complete

7. Audit objection, if any (for existing facilities):

Name of the Auditing Authority: Head Office Inspection Date of audit: 28.02.2018

Objections Branch compliance Reasons for non Remarks, if

compliance any.
Lapses in Loan (G) section of Audit Objection report:
ii) All Bia Deed were not All Bia Deed will be
obtained obtained within 31-08-
2018
iii) NEC was obtained from the Rectified NEC has
deed writer instead of sub- already obtained from
register in violation HO circular sub-register
letter No. 3243
8. A. Break up of outstanding liabilities: L/C (sight / Deferred /UPAS/ Local / Foreign /
BTB) outstanding:

Name of L/C No. & Amount of L/C opened Present Outstanding Goods Ship Expiry
A/C date of As on 25-07-2018 ment
opening validit
US$ BDT US$ BDT y
Ram 10-
0947180200 34,990.0 2,927,00 34,990.0 2,927,00 25-Jul-
Apparels Machinery Jul-
25 0 0 0 0 18
Ltd 18
Ram 10-
0947180200 173,29 14,496,00 173,29 14,496,00 25-Jul-
Apparels Machinery Jul-
26 8.00 0 8.00 0 18
Ltd 18
Ram 0947180200 30-
Apparels 29 9,00 753,00 9,00 753,00 Cpmpress 19-
May
Ltd 0.00 0 0.00 0 or Jun-18
-18
Ram 0947180200 30-
16,95 1,418,00 16,95 1,418,00 19-
Apparels 30 Sensor May
2.00 0 2.00 0 Jun-18
Ltd -18
Ram 30-
Apparels 0947180200 15,57 1,303,00 15,57 1,303,00 15-Jul-
Machinery Jun-
Ltd 34 0.00 0 0.00 0 18
18
Total
249,810.00 20,897,000.00 249,810.00 20,897,000.00
N.B. Discrepant documents received by the branch. After getting bill of entry the expired L/C
liability will be transferred into ABP liability.

A. (I) ABP outstanding:

ABP No. Date of Amount Present Due Date Corresponding Item of import
creation outstanding L/C No

Page 5 of 23
 RAM Apparel Ltd.
Mohakhali Branch

As On 25-07-
2018
3,841,0 12-04- 09471802000 Machinery
18/0584 17-04-2018 46,000.00
00 2019 11

2,344,0 02-05- 09471802000 Machinery

18/0679 07-05-2018 28,020.00
00 2019 12

3,330,0 02-05- 09471802000 Machinery

18/0680 07-05-2018 39,807.21
00 2019 13

11,863, 12-07- 09471802000 Machinery

18/1214 17-07-2018 141,650.00
000 2019 27

2,401,0 12-07- 09471802000 Machinery

18/1215 17-07-2018 28,665.00
00 2019 28

2,094,0 12-07- 09471802000 Machinery

18/1216 17-07-2018 25,000.00
00 2019 31

1,420,0 12-07- 09471802000 Machinery

18/1290 26-07-2018 16,952.00
00 2019 30
272,93,000.0
Total =
0

9. Liability position of the borrower and it’s allied concerns with other Banks/FI
Taka
in lakh
SL Name of Account Bank Name Nature of Limit Outstandi Overdu Validity Status
No. facility ng e
Nil

10. Aggregate exposure of the borrower & allied concerns including proposed
facilities:
Taka in lakh
Particulars Amount Collateral security value
MV FSV
Net Exposure with NBL (Existing) : 2685.37 1030.00 875.50
Net Exposure with NBL (Proposed) 150.00
Exposure with other Banks & FIs : - -
Aggregate exposure : 2835.37 1030.00 875.50

11. Particulars of the borrowers & business:

Name of the Account : RAM Apparel Ltd
Nature of business : 100% export oriented Readymade Garments Industry
Business/Office address : A, Holding No: 49/1, Vill: TakKathora, Word No: 20, Post:
Salna Bazar, Post Code: 1703, City-Gazipur, Dist- Gazipur,
Bangladesh
Factory address : Do
Account No. & date of opening : 18.05.2017; A/c no. 1043002220248
First sanction : 05.12.2017
Last sanction : 05.12.2017
Constitution / Legal status : Private Limited Company
Year of Establishment/Incorporation :
Date of commencement of : N/A
business
(In case of Public Ltd. Co.)
E-TIN : 560325625487
Area of business operation : Mainly EU countries, USA, Canada & Australia
Authorized capital : Tk. 5.00 crore
Paid up capital : Tk. 5.00 Lac
Business Net Worth : Tk. 19.00 lac
History of relationship/business : Due to persuasion by branch officials the clients have
history showed their consent for availing credit facilities from our
Bank.
Particulars of the group:
No Name of Nature of Business Status Remarks
. Business

Page 6 of 23
 RAM Apparel Ltd.
Mohakhali Branch

Nil
12. Particulars of Director(s) of the borrowing concern:
Taka in lac
Name Parent’s Perman Presen Ag Status/ % Personal Net Worth as on
& Spouse ent t e position of 30.06.2018
name address addres in the sh Total Prope Propert
s company ar rty y
e encu unencu
ho mbere mbere
ldi d d
ng
Md Father: 194/G, 194/G, 60 Chairma 487.00 400.00
Rafiquz Late Road# Road# n 25
zaman Abdul 07, 07, %
Brigadie Gafur Block# Block#
r Mother: C, C,
General Mst. Bashun Bashu
(Rtd.) Masuda dhara ndhara
Khatun Residen Reside
Spouse: tial ntial
Mrs. Area, Area,
Jannatul Dhaka- Dhaka-
Afroz 1229, 1229,
Banglad Bangla
esh desh

Md Father: House# House 40 Managin 328.00 250.0

Abdul Md Amir 72, #72, g 17 0
Matin Hossain Road#1 Road# Director %
Mother: 2, 12,
Zinnat Sector# Sector
Hossain 13, #13,
Spouse: Uttara, Uttara,
Rokhsana Dhaka- Dhaka-
Akhter 1230, 1230,
Banglad Bangla
esh desh
Mizan Father: House House 59 Co- 4081.6 552.0 2560.0
Rahman Abdul 17, 17, Chairma 17 0 0 0
Matin Road Road n %
Mother: 11, 11,
Jobeda Sector 9 Sector
Khatun , Uttara, 9,
Spouse: Dhaka - Uttara,
Colodia 1230, Dhaka
Rahman Banglad - 1230,
esh, Bangla
Dhaka desh,
Dhaka
Md Father: House House 55 Deputy 2506.0 2400.0
Mostaq Abdul 17, 17, Managin 16 0 0
ur Matin Road Road g %
Rahman Mother: 11, 11, Director
Jobeda Sector 9 Sector
Khatun , Uttara, 9,
Spouse: Dhaka - Uttara,
Parvin 1230, Dhaka
Hossain Banglad - 1230,
esh, Bangla
Dhaka desh,
Dhaka
Ashoke Father: House- House- 51 Director 249.00 120.0
Kumar Late 19, 19, 5 0
Baidya Protap Road- Road- %
Chandra 17, 17,
Baidya Sector- Sector-
Mother: 4, 4,
Late Uttara, Uttara,
Protiva Dhaka- Dhaka-
Bala 1230, 1230,
Baidya Banglad Bangla
Spouse: esh. desh.
Rina Roy

Page 7 of 23
 RAM Apparel Ltd.
Mohakhali Branch

Mr Father: A Holding Holdin 36 Director 240.00 72.00

Abdul Aziz No.45, g 5
Alim Biswas Block No.45, %
Mother: No.C, Block
Anowrara Reazna No.C,
Begum gar Reazna
Spouse: Outpara gar
Ameli , Outpar
Sultana Gazipur a,
(Antora) Sadar, Gazipu
Gazipur rSadar,
Gazipu
r
Md Father: House# House 38 Director 15 220.00 90.00
Akramul Late 27, # 27, %
Islam Barequl Road# Road#
Mazum Islam 12, 12,
der Mother: Sector# Sector
Feroza 12, # 12,
Begum Uttara- Uttara-
Spouse: 1230, 1230,
Mrs Dhaka, Dhaka,
Ummeha Banglad Bangla
ni esh. desh.

13. A) Project Rationale

The Ready-Made Garment Industry business is growing 30 million dollars per year in
Bangladesh. It is one of the fastest growing sectors in Bangladesh. At the current rate of
economic growth, the industry continues to grow at about 8% rate per annum being the largest
contributor towards foreign remittance income for the country. According to Bangladesh
Garments Manufacturing & Export Association (BGMEA), the industry currently provides
employment to over 4 million people across the country.
Export of Ready Made Garments has been steeply rising in the recent years with an estimated
growth to USD 50 million per year by 2020. Global demand is at its peak due to constant
development and diversification in the fashion trend. With manufacturing and exports reducing
in predominant countries like China and India due to unfavorable conditions, countries like
Bangladesh, Vietnam and Indonesia are fast climbing the Supply Chain to keep up with the
Global Demand. Favorable Government policies and abundance of cheap semi-skilled and skilled
labor has helped the cause a great deal and hopefully will continue to do so in the upcoming
years.

13. B) Uniqueness of Ram Apparels Ltd:

 LEED certified green building with Platinum Category Highest score (projected 105 out of
110)
 LEEN Production System
 ERP system – 100% computerized process control and online visibility, more of Paperless
Office
 Energy Efficiency
 40% use of natural day light by skylight system
 100% LED lights in offices to reduce electric consumption
 100% Sewing machines with servo motors to save 80% energy
 40% Energy saving fans in Office area

14 . Management Aspects:
14. A) Capital Structure:
The authorized share capital of the company is TK. 50.00 Million (500000 Shares @ TK.100/-
each) and Paid up Capital is TK 0.50 Million

14.B) Management of the Company:

The management of the company will be vested with the board of Directors. The Directors will
directly supervise the operation with a group of senior professionals. The Managing Director is
the Chief Executive Officer of the company who will be assisted by other director as well as by
the managerial and technical staffs at different levels.

14. C). Background of the Directors:

a. Md. Rafiquzzaman Brigadier General (Rtd.),
Designation: Chairman of the RAM APPAREL LIMITED, Ex Professor of
Otolaryngology, Armed Forces Medical Collage & Ex Adviser, Specialist & Head of the
Department of the ENT, Head & Neck Surgery Combined military Hospital Dhaka.

Page 8 of 23
 RAM Apparel Ltd.
Mohakhali Branch

b. Md Abdul Matin,
Designation: Managing Director of the RAM APPAREL LIMITED
Business Experience & History: He has been working in RMG sector since 2000,
currently working as a CEO at FGS Group: This Company is specialized for woven
garment manufacturing and washing, they have 30 sewing line including an18-line green
gold certified garment production unit & two laundries which is set-up by modern
equipments. As a CEO he is responsible for development, marketing, merchandising,
planning, production, shipment and company turn-over accountability. He also
 Worked as country manager at CAPRI SRL (ALCOTT ITALLY) at Bangladesh Liaison office: This is
a European retail chain shop, responsible was sourcing, development, planning, order purchase
and shipment including total heading of Bangladesh operations.
 Worked as a CEO at A&A Group: This Company is specialized for woven garment manufacturing
and washing, they have 12 sewing line including in-house laundry which is set-up by modern
equipments. As a CEO he was responsible for development, marketing, merchandising,
planning, production, shipment and company turn-over accountability.

 Worked as Merchandising TEAM LEADER at KappAhl Far East Ltd Bangladesh Liaison office: This
is a Scandinavian retail chain shop company, responsible for sourcing, development, planning,
order purchase and shipment including total heading of woven operations.

 Worked as Merchandising Group Leader of ABA Group: This is a leading exporter in RMG sector
in Bangladesh. This Company is specialized for woven garment manufacturing and washing,
they have 120 sewing line including five laundry which is set-up by modern equipments. As a
Group Leader he is responsible for development, marketing, merchandising, planning,
production, shipment and group merchandising.

c. Md Akramul Islam Mazumder

Designation: Director of the RAM APPAREL LIMITED
Business Experience & History: He has been working in RMG sector since 2003,
currently working as a Sr. Sourcing Manager at RELIANCE Retail Ltd Bangladesh Liaison
Office (Reliance Group India): This Company is the Indian largest growing multinational
company, there are more than 350 fashion retail chain shop in India, As a Sr. Sourcing
Manager he is responsible for development, sourcing, merchandising, planning,
production, shipment and company turn-over accountability. He also
 Worked as MANAGER at NORWEST INDUSTRIES at Bangladesh Liaison office: This is a
world 2nd largest souring company by origin India
 Worked as Asstt. Manager at Li & Fung Bangladesh Liaison office: This is a world
largest souring company by origin Hong Kong.
 Worked as Merchandising Group Leader at “ABA Group” This Company is specialized
for woven garment manufacturing and washing, they have 120 sewing line including
three laundry which is set-up by modern equipments.
 Worked as Merchandiser at NETWORK FASHION at Bangladesh Liaison office: This
Company is specialized in sourcing from Bangladesh by origin Germany.

d. Mr. Abdul Alim:

Designation: Director of the RAM APPAREL LIMITED
Business Experience & History: He is currently working as Head of HR & Compliance of RMG
unit of A & A group. Mr. Abdul Alim has 20 years of experience in compliance audit as first party
audit, fire/electrical/structural safety audit, compliance audit, technical audit with H & M, C & A,
Next, Primark, Wal-mart, Best Seller, ISO etc.
e. Mr Md Mizan Rahma:
Designation: Director of the RAM APPAREL LIMITED
Business Experience & History: He has around 35 years of experience in real estate, hotel
convenient, aviation & super shop business in USA.

f. Mr Mostaqur Rahman:
Designation: Director of the RAM APPAREL LIMITED
Business Experience & History: He has around 16 years of experience in real estate, hotel
management, aviation & super shop business in USA.

g. Mr Ashike Kumar Baidya

Designation: Director of the RAM APPAREL LIMITED,
Business Experience & History: He started his Career in RMG sector in 1994. His current
position is Country Manager in Rudholm BD Limited since 2013; which is a Swedish company. It’s a
different brand nominated garments accessories supplier like- MnS, Tesco, Zara, Levis, Target,
Walmart etc. Rudholm currently has 26 offices globally.

15. Visit Report by Branch:

Factory/business concern visit report: Visited by officials of Mohakhali Branch on 24.05.2017 &
12.09.2017 13.05.2018

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Date of visit 24.05.2017 12.09.2017

Visited by
Md.
Name
Anwar Hossain Shaikh Mozammel Masudur Syed Rois Uddin,
Designation
(SEO) Hossain (AVP) Rahman SEVP & Manager
Phone
(SEO)
number

Factory/business concern visit report: Visited by officials of Mohakhali Branch on 13.05.2018

Date of visit 13.05.2018

Visited by
Name
Designation Kazi Arifa Sultana Anwar Hossain (SEO) Md. Mutafa Kamal (AVP)
Phone
number
Present status:

Item Volume Unit Current

Status
Lay-Out & Marking For Erath Work by 21,146 Sft Complete
Engineer
Erath Excavation 2,07,372 Sft Complete
Sand Filing 50,656 Sft Complete
B.F.S Work 20,215 Sft Complete
Stone Chips Casting (Ratio 1:1.25:2.5) 15,648 Sft Complete
Brick Chips Casting (Ratio 1:2:4) 17,500 Sft Complete
15’’ Thick. Bangla Brick Bonding Work 1,200 Sft Complete
10’’ Thick. Ceramic Brick Bonding Work 9,500 Sft Complete
5’’ Thick. Ceramic Brick Bonding Work 17,200 Sft Complete
5’’ Thick. Bangla Brick Bonding Work 4,200 Sft Complete
River Banding & Fabrication Work 127 Ton Complete
Suturing Work 48,197 Sft Complete
Temporary Main Gate 01 No Complete
Status of the project as on 12.09.2017:
Description of the Work Total estimated Work executed Remaining
cost (Tk.) Works(Tk.)
Sand filling: 30,00,000/- 30,00,000/-
Foundation: 21,000 sft. @ Tk. 1,68,00,000/- 1,37,60,000/- 30,40,000/-
800/- (17,200 sft.
execute)
Ground floor 21,000 sft. @ 3,36,00,000/- 1,12,00,000/- 2,24,00,000/-
Tk. 1,600/- (14,000 sft.
execute 50%)
1st floor to 2nd floor (21,000 6,72,00,000/- 6,72,00,000/-
sft. x 2) = 42,000 sft. @ Tk.
1,600/-
Boundary wall: 50,00,000/- 50,00,000/-
Total 12,56,00,000/- 3,29,60,000/- 9,26,40,000/-

Status of the project as on 13.05.2018

Description of the Work Total estimated Work executed Remaining
cost (Tk.) Works(Tk.)
Sand filling: 30,00,000/- 30,00,000/-
Foundation: 21,000 sft. @ Tk. 1,68,00,000/- 1,68,00,000/-)
800/-
Ground floor 21,000 sft. @ 3,36,00,000/- 3,36,00,000/-
Tk. 1,600/- (14,000 sft.
execute 50%)
1st floor to 2nd floor (21,000 6,72,00,000/- 6,72,00,000/-
sft. x 2) = 42,000 sft. @ Tk.
1,600/-
3rd floo (21,000 @ Tk. 3,36,00,000/- 13,44,000/- 3,22,56,000/-
1,600/-)
Boundary wall: 50,00,000/- 50,00,000/-
Total 15,92,00,000/- 12,69,44,000/- 3,22,56,000/-

Technical Aspects:
16. A the Project

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The project will be a woven garments industry, after considering the growing demand for the
products in the export market the sponsors have decided to under-take the proposed project Unit
having capacity of 42.00 lac pcs of woven item annually.

16.B Location of the Project:

The factory premise of the company is located at Block: A, Holding No: 49/1, Vill: TakKathora,
Word No: 20, Post: Salna Bazar, Post Code: 1703, City-Gazipur, Dist-Dhaka, Bangladesh on its own
premises. The utilities such as electricity, Gas line etc all is available there. The most important
requirement of workers is abundantly available. There is ample scope of training up the job
seeking young boys and girls to convert them to workers (operators and helpers).

16.C) Production Capacity

The annual rated capacity and product mix of the proposed project at 100% capacity utilization
based on 10 hours Operation per day and 312 working days per year has been given in the
following table:

SL.N Product Mix Capacity in BMRE Unit Price Total Value

O. pcs Capacity in (In Taka) (Taka )
pcs)
1. Denim & non denim 42,00,000 570 239,40,00,000.0
Pants, Jacket, Chino, -- 0
Bermuda, Cargo
Total Production 239,40,00,000.0
Capacity 0

16. D) Raw materials Requirement:

Imported RM:
SL. Item Quantity Unit Price Total Amount
Yds/Pcs (In Taka.) (Amount Taka)
01 Shell Fabrics 4200000 197.00 827,400,000.00
02 Pocketing Fabrics 4200000 75.00 315,000,000.00
03 Interlining 4200000 16.00 67,200,000.00
04 Button 4200000.00 3.00 12,600,000.00
Total Imported RM 122,22,00,000.0
0
Local Raw Materials & Costs:
SL. Item Quantity Unit Price Total Amount
(In Taka.) (Amount Taka)
01 Security Alarm 42,00,000 9 37,800000.00
02 Zipper 42,00,000 16 336,906000.00
03 Other Trims 42,00,000 40 168,000000.00
04 Packing Material 42,00,000 17 71,400000.00
05 Washing Charge 42,00,000 48 201,600000.00
Total Local RM 815,706000.00
Total RM 203,79,06,000.0
0

16. E) i) Building and Other Civil works. (Previous)

The sponsors of the proposed project of Ram Apparel Ltd. have purchased land- building with RCC
pillar & foundation having measuring areas of 65541 Sft for for the project which include Office
building, factory building, Warehouse, other utilities services. The total cost of building has been
estimated at Taka 1005.51 Lac
SL Description Sft Rate Value in Taka
. /psf
Ground floor & 1St+2nd with foundation
1) 50301Sft 1550 77966550.00
(16767 Sft in Each floor)
2) Foundation +1& 2nd floor 3370 Sft per floor 6740Sft. 1415 9537100.00
3) Substation ,Generator, Boiler room 2000 Sft 1000 2000000.00
Underground reserve, safety tank & sand
4) 6500 Sft. 1699.59 11047350.00
filling etc
Total Building & Civil Works: 65541 sft 10,05,51000.00
Average cost per sft Tk. 1534.17

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E) ii) Building and Other Civil works. (Present)

RCC pillar & foundation areas have increased by 21,000 sft due to construction of 3 rd floor. After
completing construction work of 3rd floor RCC pillar & foundation having measuring areas of
86541 Sft for the project which include Office building, factory building, Warehouse, other utilities
services. The total cost of building has been increased by 336.00 lac.

SL Description Sft Rate Value in Taka

. /psf
Ground floor & 1St+2nd with foundation
1) 50301Sft 1550 77966550.00
(16767 Sft in Each floor)
2) Foundation +1& 2nd floor 3370 Sft per floor 6740Sft. 1415 9537100.00
3) 3rd floo (21,000 @ Tk. 1,600/-) 2100 sft 1600 33600000.00
4) Substation ,Generator, Boiler room 2000 Sft 1000 2000000.00
Underground reserve, safety tank & sand
5) 6500 Sft. 1699.59 11047350.00
filling etc
Total Building & Civil Works: 86541 sft 134151000

16. F) Machinery and Equipment’s:

16. F.1) Imported machinery
The project will be equipped with new, modern & sophisticated machineries together with all
luxuries and equipment. The capital machineries of the project will be imported from reputed
manufacturers of Japan/ Taiwan/ USA/ Italy/ Korea/German/Malaysia. The imported machineries
are various kinds of Sewing Machine, Cutting Machine, Inspection Machine, Iron Machine, Lock
Stitch Machine, Over Lock Machine, Button Stitch Machine, Snap Button Machine, Eyelet Hole Etc.

16. F.2) Local Machinery

In addition to the imported machinery, the project has also procured a few machineries namely
Generator, Air Compressor, Sub-Station, Air Conditioner, Gas Hearer, Steam Boiler with Water
Opener etc.

16.G Manpower Requirement

To run the project smoothly and profitably the total man power to be required is estimated at 956
persons covering both administrative and factory staff.

16. H) Land and Location

The project will be setup on an area of 112.65 decimal land which is 5 kilometer from Gazipur
Cowrasta in Block: A, Holding No: 49/1, Vill: TakKathora, Word No: 20, Post: Salna Bazar, Post
Code: 1703, City-Gazipur, Dist-Dhaka, Bangladesh. The place is very suitable for setting up of an
industry as the area has been developed as an industrial Zone. The project will enjoy all
infrastructural facilities like electricity, Gas, Road communication network etc.

16. I) Furniture, Fixture

Decorations, Furniture, Fixture of the project have been included Building & Civil works.
16.J) Transportation:
The project will require carrying high official, stuff and finished good. For this purpose vehicle
(Pick-up Van, Motor Car etc.) will be required for the project. Total cost has been estimated as tk.
61 Lac

16.K) Construction/Implementation Schedule:

The proposed project will need about 12 months for completion of Machinery Installation.
Therefore, it is expected that the project will go into commercial operation within 4 months from
the date of opening L.C. (Letter of Credit) for foreign machinery. Detail Implementation Schedule
has been furnished below:-

MONTH
Particulars/Description

1 2 3 4 5 6 7 8 9 10 11 12
Proposal Submission to
Bank Branch

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Recommendation & Processing

by Bank
Sanction by Bank
Mortgage, Documentation & other
Legal Formalities
L/C Establishment
Arrival of Machinery at site
Machinery Installation
Trial Production
100% Commercial Production

16.L) Utilities
Water: The project will require water during civil work implementation stage of the project, for
heat setting, for generator run & humidification plant run etc. Water will also require for human
consumption. To meet the requirement the project will have its own arrangement by sinking deep
tube well.
16.M) Electricity
The main source of power of this project will be electricity. They require about 1000KWh load to
run the project machinery. REB authority already has given confirmation about load sanction. It
may be mentioned here that in project area the REB/PDB supply position is surplus in respect of
its consumption. Moreover, gas is also surplus in the project area & there is also possibility to get
the gas line connection as informed by the branch.
16. N) Repair and Maintenance
The cost of repair and maintenance for machinery has been estimated @ 0.5%, 1% & 1.5% and
onwards of it’s of machinery and equipments in 1st, 2nd, 3rd and subsequent years of operation
16. O) Stores & Spares
The stores & spares of machinery to be required has been estimated @ 0.5%,1% & 1.5% and
onwards of its cost of machinery and equipments in 1st, 2nd, 3rd and subsequent years of
operation.
16.P) Environment and Pollution:
The proposed project will be a Woven Products Unit. It will not create any threat to environmental
pollution. No objection certificate (N.O.C.) issued by concerned authority has been provided.
16.Q) Technical Service & Quality Control:
Installation of new machinery will be done by local erectors under the guidance of machinery
supplier/manufacturer. Technology involved in woven manufacturing plant/factory is available in
the country since long. Besides, engineers, training facilities are available in Govt. sector as well
as in private sector. Trained personnel are locally available. The experienced technical personnel
will be appointed in due course for quality control and smooth operation of the project that will be
locally available. As such, it is expected that the project will not face any dearth of technical staff
for maintaining the project. Necessary technical personnel will be appointed locally for smooth
operation and proper maintenance of machinery.
16.R) Safety Provision:
The project will require its own safety provision of fight against fire and other hazards by
procuring and setting firefighting equipment and first aid box. Cost of the same has been included
with furniture & fixture cost

16.S) Risks & Mitigation

Some risk factors associated with the project has been identified and the entrepreneur
accompanied with other related parties is aware of the risk factors those need to be mitigated.
Credit risk is mitigated by security package offered by RAL and the favorable DSCR of the project.
Market risk is taken care of by the growing RMG market and especially for fully complied
garments companies. Operational and managerial risk will be mitigated by experience of the
entrepreneur and skilled management team. /Technical risk is minimized by ensuring best
available energy efficient technology.

16. T) Demand Analysis

The Global demand for Trousers and Jackets has steeped in the recent past with rapid ascent of
fashion and trends across the world. To cope with this ever-growing change in demand, the
production and export from countries like Bangladesh have risen rapidly in the recent years with
a potential for further growth. Denim fabric has a long, rich history, and like other products such
as wine, automobiles and electronics that have garnered universal aficionados, denim has
morphed and changed over the years, its status evolving from functional to fashionable staple.
16.U) Global Denim Statistics
Global Denim market shows enormous prospect for the producers. It’s a market of 56.2 billion U.S Dollars as of August, 2016 where the market is not
confined to USA only. The market is growing at a rate of 5% and product variation can produce more demand of denim product. About 96% U.S.
consumers purchase a pair of denim product. Average price of denim jeans is also high, where Bangladesh can grab market by capitalizing its cheap
about market if efficient labor base can be developed. Denim products are trending to both Men and Women consumers and to kids as well.
Denim Market Statistics, 2016

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Particulars Statistics
Size of Global denim market by sales $ 56.2 Billion
Size of U.S. denim market by sales $ 13.72 Billon
Women’s denim market size (U.S.) $ 8.55 Billion
Men’s denim market size (U.S.) $ 5.17 billion
Average price of a pair of denim jeans $45.32
Total number of denim mills worldwide 513
Percent of U.S. consumers who own a pair of jeans 96%
Average number of denim pants a woman owns 7
Average number of denim pants a man owns 6

Denim Market Statistics (Source: STATISTIC BRAIN, 2016)

17. Cost of the Project: (previous)

Tk. in ‘Lac
Particulars Already Incurred To be incurred
Debt Equity Total Debt Equity Total Total
Land & Land -- 700.00 700.00 -- -- -- 700.00
development
Building & other Civil -- 330.00 330.00 400.00 275.51 675.51 1005.51
construction
Machinery (importable -- -- -- 525.00 175.00 700.00 700.00
& Local)
Vehicles 61.00 61.00 61.00
Other Cost & Assets -- 20.00 20.00 -- 98.33 98.33 118.33
Fixed Cost of the -- 1050.0 1050.0 925.00 609.84 1534.84 2584.84
Project 0 0
IDCP -- 82.50 - 82.50 82.50
Total Cost of the -- 1050.0 1050.0 1007.50 609.84 1617.34 2667.34
Project 0 0

Debt Equity Mix (previous)

Means of Finance Debt Equity Total Debt : Equity Ratio
1007.50 1659.84 2667.34 37.77:62.23

Cost of the Project: (present)

Particulars Already Incurred To be incurred
Debt Equity Total Debt Equity Total Total
Land & Land -- 700.00 700.00 700.00
development
Building & other Civil 400.00 618.95 1018.95 150.00 172.56 322.56 1341.51
construction
Machinery (importable 37.35 116.88 154.23 487.65 58.12 545.77 700.00
& Local)
Vehicles 61.00 61.00 61.00
Other Cost & Assets 20.00 20.00 98.33 118.33 20.00
Fixed Cost of the 437.3 1455.8 1893.1 637.65 390.01 1027.66 2920.84
Project 5 3 8
IDCP 82.50 - 82.50
Total Cost of the 437.3 1455.8 1893.1 720.15 390.01 1027.66 3003.34
Project 5 3 8

Debt Equity Mix (previous)

Means of Finance Debt Equity Total Debt : Equity Ratio
1157.50 1845.84 3003.34 38.54:61.46

18. Projected Financial:

Projected Income Statement:
Particulars Year-1 Year-2 Year-3 Year-4 Year-5 Year-6 Year-7
Capacity 65% 70% 75% 80% 85% 85% 85%
Utilization
Sales 14834.8 16702.1 17899.1 19096.14 20293.1 20293.1 20293.
2 4 4 4 4 14
COGS 13902.1 15497.4 16544.6 17588.14 18615.1 18615.1 18615.
3 1 7 4 4 14

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Gross Profit 932.68 1204.7 1354.4 1507.99 1678.0 1678.0 1678.0

2 6 0 0 0
General 346.70 361.04 374.32 388.25 427.07 469.77
Administrative &
Selling expenses
Operating profit 632.92 858.02 993.41 1133.67 1289.7 1250.9 1208.2
3 3 3
Financial Expenses 411.44 415.08 417.77 419.32 412.53 400.55 382.90
Net profit before 221.48 442.94 575.64 714.35 877.20 850.38 825.33
tax
Income Tax (25%) 55.37 110.73 143.90 178.58 219.30 212.60 206.33
Net profit after tax 166.11 332.20 431.72 535.75 657.90 637.78 619.00

Projected Balance Sheet:

Particulars Construction Year-1 Year-2 Year-3 Year-4
Period
Cash Balance 0.00 70.28 303.97 617.87 1031.65
Raw and packing materials 0.00 1664.81 1792.87 1920.94 2049.00
Work in process 0.00 326.71 348.70 372.25 395.66
Finished Goods 0.00 333.44 356.48 380.35 404.06
A/c Receivables 0.00 1429.04 1527.80 1630.11 1731.68
Store and spares 0.00 3.36 0.33 0.50 0.50
Current Assets: 0.00 3827.64 4330.15 4922.02 5612.55
Pre-operating expenses 179.33 143.46 107.59 71.73 35.86
Fixed Assets 2611.41 2538.35 2465.29 2392.24 2319.18
Total Assets 2790.74 6509.45 6903.03 7385.99 7967.59

Current Liabilities: 0.00 2993.93 3208.99 3431.36 3652.76

Long term liabilities 1230.51 1080.29 834.18 610.64 378.86
Total Liabilities 1230.51 4074.23 4043.18 4042.01 4031.62
Equity
Paid up Capital 1560.23 1560.23 1560.23 1560.23 1560.23
Increment in equity 0.00 748.48 802.24 857.84 913.19
participation
Retained Earning 0.0 166.10 498.31 930.03 1465.79
Total Equity 1560.23 2474.81 2860.79 3348.10 3939.21
Total Liabilities & Equity 2790.74 6509.45 6903.97 7385.99 7967.59
Projected Cash Flow:
Sources of Fund Construct Year-1 Year-2 Year-3 Year-4 Year-5 Year-6 Year-7
ion
period
Owners Equity in Fixed 1354.33
Investment
Term Loan 1241.01
Net profit 166.11 332.20 431.72 535.75 657.90 637.78 619.00
Equity Contribution in 748.48 53.76 55.59 55.34 54.88 54.02 54.89
WC
Depreciation 108.92 108.92 108.92 108.92 108.92 108.92 108.92
Increase in current 2993.93 215.06 222.36 221.39 219.55 216.10 219.57
liability
Total Fund 2595.34 4017.4 709.94 818.59 921.4 1041.2 1016.8 1002.3
4 5 2 8
Application of Fund
Capital investment 2584.84
Pre-operating expense 10.50
Increase in current 3757.38 268.82 277.95 276.74 274.44 270.13 274.47
asset
Repayment of loan 189.77 207.43 226.74 230.89 252.39 124.17 0.00
Total Application of 2595.34 3947.1 476.25 504.69 507.63 526.83 394.30 274.47
Fund 5
Cash Surplus 70.29 233.68 313.90 413.77 514.42 622.52 727.91
Opening cash balance 0.00 70.29 233.68 313.90 413.77 514.42 622.52
Closing cash balance 70.29 303.97 617.87 1031.65 1466.6 2208.8 3188.0
8 3 9
Important ratio:
Particulars Year – 1 Year - 2 Year - 3 Year - 4 Year - 5 Year - 6 Year - 7
Gross Profit Margin 6.29% 7.21% 7.57% 7.90% 8.26% 8.26% 8.26%
Operating Profit Margin 4.27% 5.14% 5.55% 5.94% 6.35% 6.15% 5.95%
Net Profit Margin 1.12% 1.99% 2.41% 2.81% 3.23% 3.15% 3.05%
Current Ratio 1.27 1.27 1.36 1.46
DSCR 1.23 1.55 171 1.91 2.08 2.84 3.97
IRR 17.89%
Pay Back Period 4.40 years

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19. Major buyers (At least 05 nos.): (Prospective)

Nam of the buyers Market
Walmart, Wrangler, Kholes, American Eagle, Esprit, USA Market
Jessy Panny, K-Mart, Levi's, GAP, Armani
H&M, Primark, Aldee, Liddle, KappAhl, P&C, Celio, New Europe Market
Yorker, Zara, Bharshka, Pull & Bear, Abercrombie,
Matalan, Lindex, Genatricord, Tom Tailor, Alcott,
Barmuda, Permuda, Next, Terenova, M&S, OVS, Piazza
Itally

20. Major sources of raw materials:

Name of Country and firm Items Sources
China, Turkey, Thailand, Vietnam, Brazil, Indonesia, Fabrics and Foreign
India accessories
Zaber & Zubayer Fabric, Partex Denim, Nasa Denim, Fabrics and Bangladesh
Unifil Fabric, Beximco Textile, Akij Textile, Badsha accessories
Textile, Mithila Fabric, Silver Composite, Yester
Acc's, Tex Zipper, YKK, Aveory Denyssion
21. Risk components and mitigating factors:
Risk areas : Mitigating factors
Demand –supply risk : The demand of the product is huge at home
and abroad. Due to low price and high quality
the demand of such products is increasing
day by day at world market
Market / industry risk : Market risk is low as demand is high and at
increasing level
Credit Risk : Credit risk may be low as the directors have
good background.
Security risk : Security risk seems to be high as they offer
only collateral for Tk. 875.50 lac against net
exposure for Tk. 3091.01 Lac
Management risk : Management risk may be low as the directors
have vast experience in related field.
Technological Risk : Technological Risk seems to be low as they
will import highly sophisticated technology.
Other, if any :

22. Strength, weakness, opportunities, threat (SWOT) analysis:

Strength 1. Having strong relation and support of
reputed Foreign buyers
2. Knowledge of the directors in related field
3. Stable and qualified Management and
staffs to cope with any situation.
4. Huge local and foreign demand
Weakness 1. New entrance
2. Lack of business experience of the directors
Opportunities 1. Garments Sector of Bangladesh has been
getting huge momentum since long. Major
buyers of RMG are coming to Bangladesh
from China and other countries considering
competitive cost advantages as a result
export of RMG has been increased day by
day.
2. Utilizing the experiences and marketing
channels to further expansion of the project /
establishing new industry and market of
items.
Threat 1. Strong domestic competitors of the
products.
2. Political unrest
3. Turnover of Experienced employees to
other different competitors’ concerns.
4. Unfavorable Government Policy.
5. Workers dissatisfaction
6. Negative shift in world market/politics

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23. Working capital Requirement for BTB LC, PC Limit and OD (G):
Detailed assessment of BTB L/C, PC and OD (G) requirement for 4 months (Tied up
period)
Particulars Projected
Total production Line 07
No. of machinery per line 58
Production per line per day 900 pcs
Annual Rated Capacity at 100% at Avg. 300 days in
a year 18,90,000.00 pcs
Annual attainable capacity at 65% (for 1st year) 12,28,500.00 pcs
BTB Requirements at 75% at avg. FOB value for US$
6.00/pc US$ 55.28 lac
BTB Requirements (tied up – 4 months) US$ 18.42 lac
BTB Limit (Proposed) US$ 18.00 lac
FOB value US$ 24.00 lac
Total PC & OD (G) requirement (15% of FOB value Tk. 291.60 lac
@ US$1= BDT 81.00)
PC limit Tk. 60.00 lac
OD (G) limit (Proposed) Tk. 100.00 lac
Total proposed PC & OD (G) limit (within Tk. 160.00 Lac
limit)

Adjustment of Loan (G) from export proceed:

Annual proposed Export USD 80.00 Lac equiv tk. 6400.00 Lac
@5.5% deduction for payment of Loan (G) Tk. 352.00 Lac
Total yearly Loan(G) installment 228.33 Lac

Projected income: Fig in Lac

Facility Amount
Loan(G) 125.00
OD(G) 10.00
PC 8.05
BTB LC 22.89
LC (Specific) 8.40
Total 174.34

24. Client Approach:

The client vide letter approached our Mohakhali Branch for sanctioning of the below facilities:

A Permission for allowing local purchase through purchase order for Tk.125.00 lac
(inner limit of 700.00 lac) along with existing specific LCs (360 Days UPAS/DP) of
USD 8.56 lac equiv. to Tk. 714.56.00 lac (USD $1=Tk. 83.50) for importing of Brand
New Capital Machinery (07 line garment factory) from the different suppliers of
Korea/China/Japan/Italy/Germany/Local Supplier at 25% margin in the form of FDR and
commission @ 0.40% for 1st quarter and 0.30% for subsequent quarters and part thereof for
L/C /ABP.
B Permission to allow utilizing 06 years Loan (Gen)-1 for Tk. 100.00 lac (inner limit of
Tk.525.00 lac)@ 12% interest p.a. at quarterly rest for making payment of said local
purchase order liabilities against import of capital machinery under Sl. No. “A” above;
C Enhancement of 08 years Loan (Gen)-2 limit from Tk. 400.00 Lac to Tk. 550.00 Lac at
12.00% interest p.a. at quarterly rest for civil construction of factory building tenor 08 (eight)
years including 18 months moratorium period instead of 12 months moratorium period. The
loan liability will be adjusted by 26 (twenty six) equal quarterly installment to be fixed by the
Branch on actual disbursement amount starting from the 6th quarter from the date of first
disbursement.
D Re-fixation of interest 12.00% instead of 15.00% for existing of loan (G)-1, OD (Gen), and
PAD.

25. Recommendation of the Branch:

Our Mohakhali Branch has recommended the proposal as under: Sanction of:
A Permission for allowing local purchase through purchase order for Tk.125.00 lac
(inner limit of 700.00 lac) along with existing specific LCs (360 Days UPAS/DP) of
USD 8.56 lac equiv. to Tk. 714.56.00 lac (USD $1=Tk. 83.50) for importing of Brand
New Capital Machinery (07 line garment factory) from the different suppliers of
Korea/China/Japan/Italy/Germany/Local Supplier at 25% margin in the form of FDR and
commission @ 0.40% for 1st quarter and 0.30% for subsequent quarters and part thereof for
L/C /ABP.
B Permission to allow utilizing 06 years Loan (Gen)-1 for Tk. 100.00 lac (inner limit of

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 RAM Apparel Ltd.
Mohakhali Branch

Tk.525.00 lac)@ 12% interest p.a. at quarterly rest for making payment of said local
purchase order liabilities against import of capital machinery under Sl. No. “A” above;
C Enhancement of 08 years Loan (Gen)-2 limit from Tk. 400.00 Lac to Tk. 550.00 Lac at
12.00% interest p.a. at quarterly rest for civil construction of factory building tenor 08 (eight)
years including 18 months moratorium period instead of 12 months moratorium period. The
loan liability will be adjusted by 26 (twenty six) equal quarterly installment to be fixed by the
Branch on actual disbursement amount starting from the 6th quarter from the date of first
disbursement.
D Re-fixation of interest 12.00% instead of 15.00% for existing of loan (G)-1, OD (Gen), and
PAD.
[[

26. Credit Committee Recommendation:

The proposal was placed to the Credit Committee in its 78 th meeting held on 26-07-2018 after
necessary review and evaluation the Credit Committee has advised to submit the proposal as
captained before the EC of Board of Directors for approval.

27. Observation:
 The Management has track record of almost 20 years of RMG Business. The main
entrepreneur and managing director, Mr. Md Abdul Matin is engaged with garments
business since 2000. He has gathered a lot of experience in this sector by working in local
and multination garments manufacturing firms.
 The project may face difficulty due to lack of practical business experience of the directors
 Equity participation should be increased so that bank’s credit risk can be minimized
 At the time of planning of the project the customer assumed that the refreshment room,
Dining, day care will build up on the north side of the main factory building but later it has
decided that it is not possible to construct refreshment room, Dining, day care on the
north side of the main factory building because of huge amount of investment is required
for said construction. Now the refreshment room, Dining, day care will be constructed on
the 3rd floor of the building.
 RCC pillar & foundation areas have increased by 21,000 sft due to construction of 3rd
floor. After completing construction work of 3rd floor RCC pillar & foundation having
measuring areas of 86541 Sft for the project which include office building, factory building,
Warehouse, other utilities services.
 The total cost of building has been increased by 336.00
28. Facility Structure:
In view of above considering the recommended by the branch, we may place a note before the credit
committee of the Bank for the captioned credit facilities on the following debt structure, terms and
conditions-

Facility-A:
Permission for allowing local purchase through purchase order for Tk.125.00 lac (inner
limit of 700.00 lac) along with existing specific LCs (360 Days UPAS/DP) of USD 8.56 lac
equiv. to Tk. 716.90 lac (USD $1=Tk. 83.75) for importing of Brand New Capital
Machinery (07 line garment factory) from the different suppliers of
Korea/China/Japan/Italy/Germany/Local Supplier at 25% margin in the form of FDR and commission
@ 0.40% for 1st quarter and 0.30% for subsequent quarters and part thereof for L/C /ABP.

Facility-B:
Permission to allow utilizing 06 years Loan (Gen)-1 for Tk. 100.00 lac (inner limit of
Tk.525.00 lac)@ 15% interest p.a. at quarterly rest for making payment of said local purchase
order liabilities against import of capital machinery under Sl. No. “A” above;
Facility-C:
Enhancement of 08 years Loan (Gen) -2 limit from Tk. 400.00 Lac toTk. 550.00 Lac at
15.00% interest p.a. at quarterly rest for civil construction of factory building.
Nature of Advance : Loan (Gen)-02 -( Enhancement)
Amount of limit : TK.550.00 lac only
Purpose : For civil construction of the factory.
Mode of Disbursement : Enhancement amount shall be disbursed in 02(Two) phases. 1st
Disbursement of Tk. 75.00 Lac for roof casting of 3rd floor. To
complete the units, Client(s) must invest his equity first. 2nd
Disbursement shall be allowed only after completion of the 1 st
disbursement assigned work.
2nd Disbursement of Tk.75.00 Lac for brick wall along with full finishing
work’s of 3rd floor
Rate of Interest : 15.00% p.a. at quarterly rest subject to change by the Bank from time

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 RAM Apparel Ltd.
Mohakhali Branch

to time. 2% p.a. penal interest shall be charged on defaulted/overdue

amount.
Moratorium Period : 18 months
Tenure : 08 (eight) years from the date of 1st disbursement
28. Security arrangements:
: 15% margin for L/C in the form of FDR
: Lien on Shipping Documents
: Lien on export L/C and acceptance of LC opening bank
Primary
: Hypothecation of all existing Machinery (if any) & machinery to be
Security
imported/procured duly insured under bank’s mortgage clause covering
all possible risks.
: Hypothecation of raw materials, WIP, and finished goods duly insured
under bank’s mortgage clause covering all possible risks.

Collateral security:
RM on the following properties covering entire limits in consultation with BLA:
Location Owner Particulars of land & Const. Assessment
value Value Date
At Mouza Mr. Md. Abdul Area measuring (Total Tk. 1030.00 Lac
Tak Kathora, Matin, Brigadier (66+45+1.65)=112.65 value of (FSV: Tk. 875.50 12.09.20
Sub-registry General (Retd.) decimal industrial land complete lac) 17
office Mr. Md. under Khatian No. d works
Gazipur Rafikuzzaman, C.S-338, S.A- 725, 27, so far Tk.
Sadar, PS: Mr. Ashoke 540, 613, R.S-17, 133, 330.00
Joydevpur Kumar Baidy, 665, 639, Plot No. Lac)
and Dist: Mr. Mizan S.A.-758, 763, 765,
Gazipur Rahman, Mr. 808, 766, R.S.-1383,
Md. Mostaqur 1729, 1380, 1376,
Rahman, Mr. 1427, 1435, JL No. 31,
Md. Akramul Mouza: Tak Kathora,
Islam Sub-registry office
Moazumder, Gazipur Sadar, PS:
Mr. Abdul Alim Joydevpur and Dist:
all are the Gazipur valuaing @ Tk.
Directors of 5.50 Lac per decimal
Ram Apparels total Tk. 620.00 Lac and
Ltd. construction so far
completed as per given
Sand filling for Tk.
30.00 Lac, foundation
works completed 17200
sqft @ Tk. 800.00 per
sqft total Tk. 137.60
Lac, Ground floor
completed 50% of
14000 sqft @ Tk.
1600.00 total Tk.
112.00 Lac and
boundary wall for Tk.
45.00 Lac (Total value
of completed works so
far Tk. 330.00 Lac)
After completion of
total civil works the
value of construction
will be Tk. 1005.51 Lac
Grand total 112.65 decimal MV: 1030.00
industrial land and Lac
construction upto FSV: 875.50 Lac
assessment date

:  Irrevocable General Power of Attorney (in case of land- registered and

in other cases notarized as applicable) to be obtained from the
mortgagor/borrower/company in terms of the Section 12 of Artha Rin
Adalat Ain 2003, authorizing the Bank to sell the mortgaged property,
hypothecated assets, and other assets (movable & immovable) of the
company/borrower in case of failure to adjust the liability in time.
 1st charge on all fixed & floating assets of the borrowing company
Other (existing & future) with the RJSC & Firms covering entire facilities as

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 RAM Apparel Ltd.
Mohakhali Branch

Security proposed supported by Board resolution.

 Fresh Personal Guarantee of all the Directors of the company & their
spouses.
 Fresh Personal Guarantee and written consent of the mortgagor (s) for
creation of mortgage.
 Post dated cheque covering each monthly installment of Loan (Gen)
accounts. Branch manager shall be ensured that the cheques are
perfectly drawn in all respect.
 Post dated cheque covering 10% above of each facility shall be
obtained. Branch manager shall be ensured that the cheques are
perfectly drawn in all respect.
 02 set standard & required charge documents

Special Conditions:
The credit facilities shall be effective and/or sanction will be operative subject to-
 Opening of L/C/ disbursement will be made within the approved limit subject to
availability of-
i. Funds in local currency
ii. Funds in Foreign currency
iii. Sufficient credit lines/ confirmation arrangement with our correspondent
Banks.
 Guidelines, instructions, advice (written/oral) from Bangladesh Bank, other
regulatory authority and Bank’s own policy guidelines related to the credit(s)
including all other terms and conditions stipulated in the sanction are to be
complied with meticulously.

Mandatory clause:
Branch must obtain signature with seal of the borrowing concern on the duplicate copy of the
sanction letter as a token of acceptance of all terms, conditions and precedents stipulated
therein.

Conditions for registered mortgage of property (ies):

a The ownership of proposed mortgaged properties shall be transferred in the
name of Ram Apparels Ltd before creating Registered Mortgage
b All the documents relating to the Registered Mortgage of the property (ies) shall be
verified/examined and processed by “BLA”.
c The branch-in-charge must be satisfied about the valuation, possession and ownership of
the property mortgaged / to be mortgaged with the Bank.
d The branch in charge must confirm that the mortgaged property is free from Govt.
acquisition. And no disputed property will be acceptable.
e A signboard shall have to be displayed at a visible place on the mortgaged property(ies) by
the Branch mentioning that the property(ies) is / are mortgaged with National Bank Limited,
Mohakhali branch, before allowing disbursement as per H.O. Circular No.2499 dated
07/10/2007.
General Conditions:
 The Branch Manager shall (i) closely monitor the transactions of the accounts of the client and
(ii) ensure utilization of the limits approved & (iii) ensure monitoring of shipment schedule and
repatriation of relevant export proceeds.
Branch shall collect 2 sets of Charge Documents including Personal Guarantee(s) for each
facility before disbursement as per Circular Letter No: 2779 dated November 10, 2009
Branch is advised to refrain from allowing credit facility to the client (s) beyond their business
delegation power without obtaining prior approval of competent authority henceforth.
Branch is advised to send proposal to Head Office at least 02 (two) months prior to expiry of
validity of the limits as per Head Office circular letter No.1030 dated 30-06-1996 and 2674
dated 06-01-2009
Branch is advised to meticulously follow H.O circular letter no.3300 dated 05.02.2013.

Other terms & Conditions

For L/C (Sight)
1. Comprehensive insurance cover to be obtained to safeguard Bank’s interest.
2. The L/C must contain clause for pre-shipment inspection as per Head Office circular Letter
No. 1673/2000 dated 14.02.2000 & 1701/2000 dated 08.06.2000
3. In opening the L/C, all instruction containing Head office FEX circular no. 2301/2005 dated
26.12.2005 must be followed.

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Mohakhali Branch

4. No L/C shall be opened keeping overdue PAD/ Bill of Entry even if it is within the facility as
per FXR circular no-2234 dt.17.03.2005. Outstanding against L/C, PAD, LTR shall not
exceed L/C limit as any point of time.
5. All prices quoted in the Indent against L/C must be verified in a suitable way to ensure that
there is no over invoicing and under invoicing.
6. Satisfactory confidential credit report on the supplier shall be collected as per Bangladesh
Bank F.E Circular No.06, dated 18.02.1990.
7. Requirement of excess payment over the L/C amount sanctioned, for any reason, must be
borne by the client.
8. Matching of Exchange Control copy of Bill of Entry with IMP form and customs certified
invoice to be completed within time.
9. TIN certificate of the importer shall be obtained before opening L/C as per Head office
circular letter no.1150 dated 24.04.1997.
10. L/C shall be opened for import of permissible items against valid IRC of the client having
adequate entitlement.
11. Before opening the L/C Branch shall be satisfied that the client has sufficient cash flow and
capacity to retire import documents from own source. If required and also to match the
documents retiring capacity of the client.
12. The items to be imported shall be as per Pro-forma invoice and the same shall be imported
in compliance with the provisions of Guidelines for Foreign Exchange transaction and the
IPO in force and also restriction and prohibition in respect of import.
13. For import from India, a clause must be incorporated in the L/C that the supplier shall,
immediately after shipment inform the opening Bank, date of shipment, number and date
of transport documents and Truck number.

14. In case import from India name of port through which import will be made must be
specified and the same name of the port shall be mentioned in the related L/C.
15. For Import through land port (if any) must be made through a specific land port and the
name of that port shall have to be mentioned in the L/C to be opened.
16. L/C shall not be opened for import of restricted items. All regulatory norms must be
fulfilled.
17. Branch shall open the L/C against genuine PI/Indent and valid IRC issued in the name of the
client endorsed in our Bank’s favor having adequate entitlement to import.
18. Cost arising from foreign currency fluctuations will be borne by the party. The company will
pay duty/ sales tax, VAT if any, and other charges from the own source.
19. All prices of the goods must be verified in a suitable way so that there is no over invoicing
or under invoicing.
20. Branch shall follow FERA-1947, Bangladesh Bank Guideline and time to time circulars
issued by Bangladesh Bank & NBL regarding foreign exchange transaction.
For LTR:
1. Each LTR will remain valid maximum for 120 days from the date of its creation. Within this
date the LTR must be adjusted.
2. Individual LTR shall come only PAD amount.
3. In case the party does not come forward to adjust the LTR within its validity, necessary steps
for recovery of the outstanding shall be taken under intimation to Head Office without delay.
4. No LTR shall be allowed for release of imported goods against which port-import finance is
not permissible as per Bangladesh Bank’s regulation.
5. All necessary formalities including documentation shall be completed for LTR as per rules
prescribed by Bangladesh Bank as well as by Head Office from time to time.
6. The branch will monitor closely on the client to ensure adjustment of LTR liabilities out of the
sale proceeds of goods / merchandise hypothecated there against within the date of expiry /
validity. To that effect, the branch will obtain stock report periodically during the tenure of
the LTR facility to exert control on the disposal of goods / merchandise.

Condition for Loan (Gen-01 & -02):

1. The limit must not be utilized beyond the purpose for which it has been sanctioned.
2. Loan (G-01) should be disbursed through Payment order/DD No Cash Drawing
shall be allowed
3. Enhance amount shall be disbursed after ensuring progress of construction work
4. A letter of authority from the client shall be obtained for debiting the account for
repayment of loan installment as per agreement.
5. A memorandum of deposit of cheques shall be taken from the concerned client
6. Fully prepared and valid signed post dated cheques shall be taken for each installment
stipulating amount and date as per repayment schedule.
7. Branch shall closely monitor the account and shall ensure repayment of installment
regularly
For All
1. Excess over the limits approved and beyond their purpose is strictly prohibited.
2. National Bank Ltd. reserves right to call back the facility wholly or partly, alter or amend the terms
and conditions at its discretion without assigning any reason.

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Mohakhali Branch

3. The branch-in-charge must be satisfied about the valuation, possession and ownership of the
property mortgaged with the Bank and ensure that detailed and correct schedule of the property
mortgaged has been mentioned in the mortgage deed and the same is properly executed.
4. No transaction in the account shall be allowed to the party beyond the purpose of the credit facility
extended.
5. A sign board shall have to be displayed at a visible place on the mortgaged property by the Branch
mentioning that the same is mortgaged against credit facilities sanctioned by National Bank Limited,
Siadpur Branch before allowing disbursement/ facilities as per circular No.2499 dt.07.10.2007
6. The client shall intimate the Bank of any change of address within 24 hours of the actual change.
7. All required provision & Guidelines for Foreign Exchange transactions & all other regulatory norms
must be followed strictly.
8. Bank reserves the right to alter or amend any clause of the limit or cancel /call back the same at any
time without assigning any reason.
9. Branch is advised to ensure that all imported/to be imported raw materials are properly stored under
bank’s control duly insured to protect bank’s interest.
10. Branch is advised to monitor the implementation of the project and utilization raw materials to avoid
any diversion.
11. The Branch is advised to comply with the H.O. Circular Letter No. 3403 dated 23.04.14 in connection
with letter of authority to put date on the undated cheque, verification of NEC and confirmation of
mortgage of property.
12. The branch is advised to comply with the Circular Letter No-3168 dated 18-01-12 with respect to
genuineness and acceptance of the property for mortgage as collateral security.
13. Branch is advised to follow the contents of the Circular letter No. 3081 dated 28.06.2011 in respect to
disbursement meticulously.
14. The Branch In-charge will closely monitor the repayment performance of the client in match with the
cash flows & any deviation will require the Branch In-charge to hold a meeting with sponsors for
having better insight on the financial status of the spinning mills.
15. An undertaking on Non-judicial stamp paper shall be obtained from the customer to the effect that he
will utilized the credit facilities for the purpose it has been sanctioned and will not divert any fund to
any other business.

16. An undertaking shall be obtained from the owner of the property on Non-judicial stamp with
appropriate value that he will neither sell nor transfer the ownership/possession of the
land/building/shop/flat without prior permission from the bank.
17. The borrower will give a declaration that he has not availed or will not avail of any credit facility from
any other Bank /FI against mortgage or otherwise encumbrance of the property against mortgage of
which loan has been sanctioned by NBL.
18. Bank has the discretionary rights to impose further terms & conditions/covenants/ security
components on this credit line in future/whenever needed. Those shall also be considered as a part of
this sanction letter.
19. Al other terms and condition as per usual and existing norms of the Bank shall have to be observed.
20. All the terms and conditions of the sanction to be intimated to the client in writing and their written
acceptance to abide by all the terms and conditions to be obtained before allowing the facilities. The
acceptance shall be obtained within 30 days from the date of intimation; otherwise the limit will
stand cancelled.
21. Approval shall be effective subject to receipt of clean updated CIB report.
22. The branch is advised to convince the client to provide additional collateral on best
effort basis for strengthening the loan coverage.
23. Branch Manager is advised to obtain “Credit Rating Report” of the customer from bank’s
enlisted ECAI (External Credit Assessment Institutions) within August, 2018 otherwise
renewal of the continuous nature credit facilities will be frustrated.

Special covenants:
The facility(ies) shall be effective and/or the sanction will be operative subject to:
a) Satisfaction of Management Authority regarding availability of funds in BDT, foreign exchange
coverage, sufficient credit line or confirmation arrangement with correspondent Bank.
b) Compliance of Bangladesh Bank guidelines, instructions and written/oral advices.
c) Compliance of Bank’s various policy guidelines related to the credit(s) including all other terms and
conditions stipulated in sanction.
d) Disbursement of proposed facility (ies) is subject to availability of loanable fund of the Bank.

Placed for approval

Hasina Sultana ASM Bulbul M A Wadud

Vice President Deputy Managing Director Additional Managing Director

C. M. Ahmed
Managing Director

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Mohakhali Branch

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