CREDIT RATING REPORT

On
DANA SWEATER INDUSTRIES LIMITED
REPORT: RR/1717/12

Address:
CRISL
Nakshi Homes
(4th & 5th Floor)
6/1A, Segunbagicha,
Dhaka-1000
Tel: 9515807-8
9514767-8
Fax: 88-02-9565783
Email:
crisldhk@crislbd.com
Analysts:
Tanzirul Islam

tanzir@crislbd.com

This is a credit rating report as per the provisions of the Credit Rating Companies Rules 1996. CRISLs entity rating is valid
one year for long-term rating and 6 months for short term rating. CRISLs Bank loan rating (blr) is valid one year for long
term facilities and up-to 365 days (according to tenure of short term facilities) for short term facilities. After the above
periods, these ratings will not carry any validity unless the entity goes for surveillance.
CRISL followed Corporate Rating Methodology published in CRISL website www.crislbd.com

Date of Rating
Entity Rating
Outlook
Bank Facilities Rating
Bank/FI
Dhaka Bank Limited

September 04, 2012

Long Term
AStable
Mode of Exposures (Figures in million)
WCL* Tk.35.00 million

Short Term
ST-3

Ratings
blr A-

*WCLWorking Capital Limit ** CRISL rated the short term facilities under long term scale in view of their revolving nature

1.0

RATING RATIONALE

Utpol Debnath

utpol@crislbd.com

Entity Rating
Long Term: AShort Term: ST-3

Outlook: Stable

DANA SWEATER
INDUSTRIES
LIMITED
ACTIVITY
Sweater Manufacturer
DATE OF
INCORPORATION
August, 2005

CRISL has assigned A- (pronounced as single A minus) rating in the Long Term and ST-3
rating in the Short Term to Dana Sweater Industries Limited (DSIL) based on both relevant
qualitative and quantitative information up-to the date of rating. The above ratings have been
assigned based on some fundamentals of the company such as average financial and
operating performance, sound infrastructure facilities, regular loan repayment history,
experienced management team etc. The above factors are however moderated to some
extent by debt based capital structure, moderate liquidity, low capacity utilization, exposure
to price fluctuation risk as well as other industry specific and macroeconomic factors.
The Long Term rating implies that entities rated in this category are adjudged to offer
adequate safety for timely repayment of financial obligations. This level of rating indicates a
corporate entity with an adequate credit profile. Risk factors are more variable and greater in
periods of economic stress than those rated in the higher categories. The Short Term rating
indicates good certainty of timely payment. Liquidity factors and company fundamentals are
sound. Although ongoing funding needs may enlarge total financing requirements, access to
financial markets is good with small risk factors.
CRISL also placed the company with Stable Outlook in consideration of its consistent
business growth and demand for the products.

CHAIRMAN
Mrs. Khaleda Begum
MANAGING DIRECTOR
Mr. Syed Salman Masud
EQUITY
Tk. 87.91 million

TOTAL ASSETS
Tk. 252.66 million

Private Limited Company

Page 1 of 8

2.0

COMPANY PROFILE

Dana Sweaters Industries Limited is a private limited company and the newest sister concern
of Dana Group (DG). DG is an internationally acclaimed and respected corporate
conglomerate in Bangladesh which has ten (10) sister concerns, having exposure in
engineering, aviation and textile sectors. DSIL was incorporated on August, 2005 with the
objective of setting up a 100% export oriented sweaters manufacturing company. The
company started commercial operation from 2005 and since then it has been engaged in
manufacturing sweaters for an assortment of buyers in Europe and USA. The Company has a
paid-up capital of Tk.45.80 million against an authorized capital of Tk.200.00 million as on
December 31, 2011. DSIL is currently equipped with 1178 flat knitting machines and 493
linking machines having yearly production capacity of 1.75 million pieces of sweaters. Being a
private limited company, the ownership is concentrated within the family members. As on
June 15, 2011, the Board comprises of three (3) members being Chaired by Mrs. Khaleda
Begum, having 20% shareholding. The Managing Director, Mr. Syed Salman Masud is holding
40% shares of the company and the rest of the shares are held by Mr. Syed Khalid Masud,
Vice-Chairman. The plant is located at Soildubi, Kashimpur, Gazipur and the head office is
located at House # 59, Road # 13&15, Block # D, Banani, Dhaka-1213.