Overview

M/S M.M Khan Foods & Its sister concern and allied concern are Proprietorship entity. The
businesses are involved as a manufacturer, wholesaler and retailer of different types of bread,
fast food, biscuits, sweets, oil etc. The business entities were established in 1984, 2008 & 2014
accordingly, with a combined initial investment of BDT 7,000,000 only (as per our site visit
information). M/S Al-Raihan Traders is wholesaler and retailer of rice, wheat, grocery items etc.
and another concern M/S Al Noor Jewelers are wholesaler and retailer of gold and silver
ornaments etc. Those were established in 2007 and 2000 respectively with an initial investment
of BDT 3,000,000 and 2,000,000 only.

Location or Establishment Details

The business units are located at 460, Ukil Para, Puran Thana, Kishoreganj- 2300 . The business
entities operate on owned premises. They have a valid trade license (No. # 27, 49 & 28
respectively) issued by 8 No. Maria union porishod, Kishoreganj; 9 No. Choddoshoto
union porishod, Kishoreganj & 8 No. Maria union porishod, Kishoreganj respectively. All
business premises are clearly marked by a signboard.

Business Operation

The business entities comprise as a manufacturer, wholesaler and retailer of different types of
bread, fast food, biscuits, sweets, oil etc. The goods are procured from local suppliers and sold
to local customers. Since inception, the Proprietor has maintained all operating activities with
the coordination of sixty (60) fulltime employees and (405) production workers. All of the
businesses have good marketing and sales network.

Management

The business entities were established by Mr. Md. Azmal Khan. He had completed Higher
Secondary Certificate examination. The Proprietor himself manages all operating activities of
the business entities.

Supplier and Customer Base

All merchandise are procured from local suppliers to fulfill the demand of local customers. It has
a wide customer base. The Proprietor has a good relationship with suppliers and customers.
Bank Facilities

The Proprietor avails Bai-Murabaha TR Investment Limit facility from Islami Bank Bangladesh
Limited, Sreemongol Branch, Moulovibazar.

Bank Address: Midad Shopping City (1st Floor), Moulvibazar Road, Sreemangal, Moulvibazar
Atika Tasnim (Atika.Tasnim@bdral.com) Rupali Biswas (Rupali.Biswas@bdral.com) MIS Ref:
17/2476

Operations

Nayem Agro Farm & Its Sister Concern M/S Bismillah Poultry Farm are occupied with
wholesaling and retailing of poultry feed, chicks, cows, calf, cattle feed & medicine etc. All of
their merchandise are procured from local suppliers. Both purchases and sales are made
through cash and credit basis.

Major Products

Cows
Calf
Cattle Feed
Medicine
Chicks
Poultry Feed
Medicine

Major Suppliers

Al-Amin Enterprise
Kabil Farm
Malek Mia
Biplop Farm

Major Customers

Anowar Hossain
Rojina Akter
Shonkor Dev
Sonia Poultry Farm
Rajapur Poultry
Jerin Khamer
 SWOT

STRENGTHS

The Proprietor has a long business experience in the similar business.

Excellent and stable staff, offering personalized customer service.

WEAKNESSES

The lower DSCR (0.63 times, 0.54 times & 0.47 times) in the FY 2014, 2015 & 2016 indicates that the
profits of the business are not sufficient to service its debt obligations where there is not enough
cash flow to cover debt service.

Poor Return on Assets (7.42% and 7.66% respectively) for the FY 2014 and 2016 indicates that the
business did not generate adequate or required profit compared to its investment in asset.

The High level of Current Liabilities compared to inventory ( 70%, 60% and 67% respectively) for the
FY 2014 to 2016 indicates additional pressure in the working capital financing.

OPPORTUNITIES

Adding up new products and variation in the existing products can add up to the sales figure.
Extending show rooms in different locations can excel the business performance.

THREATS

Huge price competition with other competitors in the similar industry.

Changes of lifestyle, taste of consumers may lead to slow the demand if varieties of product are not
timely available.

Limitations

 The report is based on Audited Financial Statements as on 31st December 2014, 2015 & 2016
audited by “Rahman Mustafiz Haq & Co.” Chartered Accountants firm. And unavailability of
other Sister Concern Audited Financial Statements. That’s why; it was not possible for us to
observe the full limit scenario of the loan against total assets in balance sheet portion.

 Our scrutiny revealed that Sales not reflected from the Bank Statement’s, it seems to be high
sales from our analysis that could be misinterpreting the client financial condition.

Loan Note

Since we prepared the report based on Audited Financial Statements, we could not reflect the proposed
amount BDT 9,000,000 in the Audited Financial Statements. However, we calculate the DBR ratio (0.34
times) based on proposed amount and the collateral value of this credit is BDT 18,440,000.