Anlima Yarn Dyeing Limited. Annual Report

Transcription

1 Anlima Yarn Dyeing Limited Annual Report

2 Table of Contents Corporate Profile 02 Corporate Philosophy 04 Business & Products Notice of the 20th AGM Directors Report 14 Corporate Governance Compliance Report 23 Chairperson s Message 24 Photo Gallery Five Years Statistics Key Performance Indicators Financial Report 27 Profit & Loss Account 29 Auditors Report Balance Sheet Statement of Changes in Equity Cash Flow Statement 30 Notes to the Financial Statements Proxy Form

3 CORPORATE PHILOSOPHY Our relentless endeavor is towards contributing to the national economic advancement in a global context by enhancing the country s image as an international provider of quality products and services. To strive hard to be a provider of world class textile and garment products and services and position the country in the higher value segment of the international textile market. To satisfy the customers through technological superiority and synergic synchronization of man and machine tailoring quality products and services to harvest the reward of responsibility. To create better future for the stakeholders maintaining high standards of integrity, propriety and goodwill in shouldering social responsibilities. To assimilate efficient, innovative and state-of-the-art technology for developing operational infrastructure and to establish linkages and integrations. To foster conducive environment to groom-up productive talents and to build up mutually rewarding relationships with employees, clients and the society based on the highest standard of professionalism. Anlima Yarn Dyeing Ltd. is committed to be a provider of world class textile products and services by offering unrivalled quality and satisfying the customers. The company is continuously striving hard to dye yarn as per international standard by reducing the processing time, delivery lead time and re-dyeing rate. The company also endeavors to make optimum use of dyes and chemicals by reducing wastage and process loss. The company is committed to avoid use of dyes and chemicals that are health hazard and harmful for the mankind and environment. In the process the company will ensure required training to enhance productivity and skill of its human resources. The company will review its performance periodically and take measures to continuously improve quality, work environment and employee satisfaction. 02

4 C O R P O R AT E P R O F I L E Company Information Year of Incorporation : 24 th October 1995 Commercial Operation : 30 th March 1998 Product Line : Yarn Dyeing Services Sewing Thread Authorised Capital : Tk. 200,000,000 Paid-up Capital : Tk. 178,678,000 Number of Shareholders : 4,047 (As on 30 th June, 2015) Stock Exchange Listing : Dhaka Stock Exchange Limited Chittagong Stock Exchange Limited Professional Membership : Bangladesh Textile Mills Association Dhaka Chamber of Commerce and Industry Number Of Employees : 284 Sister Concerns Name of the company Anlima Textile Limited Type of business : 100% export oriented knitting, dyeing, finishing and garments manufacturing composite unit Allied Enterprise (Pvt.) Limited : Developer of commercial buildings and complexes Anlima Buildtech Limited : Developer of residential apartments Precision Energy Limited : Power Generation Auditors M/S. Ata Khan & Co., Chartered Accountants Board of Directors Sl. No. Name Designation 1 Mrs. Hubbun Nahar Hoque Chairperson 2 Mr. Mahmudul Hoque Managing Director 3 Mr. M. Abul Kalam Mazumdar Director 4 Mr. Md. Abul Bashar Director 5 Mr. Akram Khan Independent Director Management Team Sl. No. Name Designation 1 Mr. Mahmudul Hoque Managing Director 2 Mr. M. Abul Kalam Mazumdar Chief Financial Officer 3 Mr. Sumayel Muhammad Mallik Vice President (Production) 4 Mr. Jabed Murad Vice President (Maintenance) 5 Mr. Mizanur Rahman Chowdhury First Asstt. Vice President (Marketing) 6 Mr. M. Jahangir Alam Company Secretary Audit Committee Sl. No. Name Designation 1 Mr. Akram Khan Chairman 2 Mr. M. Abul Kalam Mazumdar Member 3 Mr. Md. Abul Bashar Member 4 Mr. M. Jahangir Alam Company Secretary Anlima Yarn Dyeing Limited REGISTERED OFFICE Suite # 4/3, City Heart 67 Naya Paltan, Dhaka Phone: , , Fax: info@anlima.com Web site: FACTORY Karnapara, Savar, Dhaka Phone: , Fax: ,

5 COMPANY S BUSINESS AND PRODUCTS Anlima Yarn Dyeing Limited was incorporated in 1995 as a public limited company and set up a yarn dyeing plant equipped with latest state-of-the-art technology from Europe. The company is listed in Dhaka and Chittagong stock exchanges since The company, commenced commercial operation in 1998, provides international quality cotton, polyester and filament yarn dyeing services and enjoys reputation as one of the best yarn dyeing houses in the country catering to the higher value export market need. The company is capable of dyeing all types of yarn for country s export oriented knitting and weaving industry and supplying polyester sewing thread to export oriented garments factories. The company also sells sewing thread after dyeing imported gray polyester thread, in its own brand name. The company s product line consists of: Yarn Dyeing Service for various types of cotton and blended yarn, polyester and spun yarn used by woven and knit textile factories. Sewing Thread for use by garments industries under the brand name AN Thread. The specification of the company s products are: Yarn Dyeing Service ISO/AATCC/BS Standard. Environment-friendly echo-soft dyes and AEPO free chemicals. Moisture Content: Cotton 6-7%, PC 4%, CVC 5%, Polyester %. Process-weight loss: Cotton - white 5%, colored 3%, TC/CVC white 4% colored 2%, Polyester 1%. Sewing Thread English Count (NE) 12 s/2, 12 s/3, 20 s/2, 20 s/3, 20 s/4, 20 s/6, 40 s/2, 40 s/3, 50 s/2, 60 s/2, 60 s/3. High tenacity staple fiber of 1.1 D for knot-free yarn. Accurate length wound on plastic cone with air-tight poly-packing. Tipping-thread that endures enzyme /hot wash and hypo-chloride / per-oxide bleaching. The company s products offer unrivaled quality coupled with production economy that makes the company an ultimate choice for textile and garments manufacturers. Every year the company gets the quality parameters of the products tested by the Swiss Textile Testing Institution, Switzerland. The key quality features are: Azo-free: Azo compound in textile materials are seriously harmful to human health and Anlima s products are Azo-free ensuring total safety against that health-hazard. The products are Oeko Tex Standard 100 certified. Knot-Free: Knots are detrimental to knitting/sewing speed and productivity. Anlima s thread/yarn are knot-less that ensures higher productivity. Color-Fastness: Anlima s thread/yarn are color-fast that ensures washing, light, rubbing, bleaching and perspiration fastness. Being absolutely bleachproof it prevents all chances of color-bleeding or fading of fabrics. Color-Matching: We offer perfect color matching with computerized facility and offer DTM (Dye to Match) service within 72 hours. Needle-Saving: Anlima s products are immaculately processed saving it from becoming hard or sticky and thus avoiding the extra cost in time and needle-breakage during knitting/weaving/sewing. Yarn-Saving: Weight-loss during dyeing in Anlima is only 1-2% that is 4-5% less than other competitors resulting in substantial yarn saving. Gliding Efficiency: Anlima s superior and sophisticated lubricating winder ensures better gliding efficiency and lower friction contributing to higher productivity. 04

6 20 th ANNUAL GENERAL MEETING Notice is hereby given that the 20 th Annual General Meeting of the shareholders of Anlima Yarn Dyeing Limited will be held on Sunday the December 20, 2015 at 10:30 a.m. at the Factory premises, Karnapara, Savar to transact the following business: Agenda 1. To confirm minutes of the 19 th Annual General Meeting held on 23 rd December, To receive, consider and adopt the Profit and Loss Accounts of the Company for the year ended 30 th June, 2015 and the Balance Sheet as at that date together with the Reports of the Directors and the Auditors thereon. 3. To elect/reelect Directors in accordance with the provisions of the Articles of Association of the Company. 4. To approve appointment of the Independent Director. 5. To approve cash Tk 1.00 per share (10%) as recommended by the Board. 6. To appoint Auditors for the year and fix their remuneration. 7. To transact any other business of the company, with permission of the Chair. By order of the Board of Directors October 25, 2015 M. Jahangir Alam Company Secretary Notes: (a) The Record Date shall be November 15, The shareholders whose name shall appear in the share register of the company or in the depository register on that date will be entitled to dividend and attend the AGM. (b) A member entitled to attend and vote at the annual general meeting may appoint a proxy to attend and vote on his/her behalf. The proxy form, duly stamped, must be deposited at the registered office of the company not later than 48 hours before the time fixed for the meeting. (c) Members are requested to notify change of address, if any, to the company. (d) For the sake of convenience shareholders are requested to submit their queries on the Directors Report / Accounts for the year, if any, at the Head Office of the company at least one day before the day of the General Meeting. (e) Admission to the meeting room will be strictly as per note (a) above on production of attendance slip sent with the Annual Report. 05

7 Chairperson s Message Distinguished Shareholders I welcome you to the 20th Annual General Meeting of the Company. It is my proud privilege to present you the Annual Report of the Company for the year. 06

8 Global Economy The global economy, after overcoming the recession has returned to growth stage. Though the recovery of developed economy is better, the growth of emerging and developing country economy is yet to pick up. Despite the decline in growth, the emerging and developing countries have been able to contribute to three-fourth of global economic growth. As against post recession growth, in spite of minor increase in potential output, slow investment in developed economies may cause slower midterm output, even less than pre-recession period. Due to sluggish investment and reduction in total factor productivity (TFP), productivity in emerging and developing economies may decline further. Massive fall in oil price and consequent fall in US dollar value, towards fourth-quarter of 2014, has affected the global economic momentum. Fall in oil price has helped economic development through increase in supply on the one hand and caused reduction in investment of oil exporting countries on the other, resulting in increased risk of world economic instability. According to IMF projection 1, the global economic growth was 3.4% in 2014, same as previous year. The growth is expected at 3.3% in 2015 and it is projected at 3.8% in During the year 2015 the economic growth of USA is expected to reach 3.1% as compared to 2.4% of Increase in employment, increase in income, fall in oil price and restoration of consumer confidence has helped to gain economic growth better than expected. Though Euro Zone s growth in 2014 has moved to 1% from previous year s negative rate, it is expected to be around 1.5% in The growth of emerging and developing economies is expected to reduce to 4.3% in 2015 from 4.6% of The emerging and developing Asian economic growth is expected to slide to 6.6% and 6.4% in 2015 and 2016 respectively compared to 6.8% of The economic growth of China is projected to reduce to 6.3% in 2016 against projected growth of 6.8% in Conversely, economic growth of India is expected to rise to 7.5% from 7.2% of This growth is projected to be maintained in 2016 also. 1. World Economic Outlook, April 2015 and July 2015, IMF. Bangladesh Economy According to Bangladesh Bureau of Statistics, the GDP growth of Bangladesh in has increased to 6.51% as compared to 6.01% and 6.06% of and respectively. Sector wise, the GDP growths in were: 3.04%, 9.60%, 5.83% in agriculture, industry and service sectors respectively. The growth for these sectors in previous financial year were 4.37%, 8.16% and 5.62% respectively. The country s inflation rate during has increased to 7.35% from 6.78% of previous year. On point to point basis the inflation in July, 2014 was 7.94% which reduced to 6.48% in April, According to provisional figures, the country s domestic and national saving rates during were 22.30% and 29.01% of GDP respectively against 22.09% and 29.23% of The total investment during has increased to 28.97% of GDP against 28.58% of previous year, due to increase in government investment. Due to competitive environment in banking sector and proper monitoring and guidance of Bangladesh Bank, the weighted average interest rate on loan and deposit has decreased continuously from 13.67% in June 13 to 13.10% in June 14 and 12.23% in February 15. Despite slow economic recovery of main export markets of Bangladesh, especially in Euro Zone and the United States, the export growths in and were 11.22% and 11.69% respectively. In fiscal year import has increased by 19.17% from previous year. In the first nine months (July-March 2015) of, total import has reached to US $ 33,056 million which is 12.24% higher than the same period of During nine months (July-March 15) of total remittance has increased by 7.2% compared to the previous year. During the year Foreign Direct Investment (FDI) has increased by 5.12%. The portfolio investment and investment in other heads has also increased compared to previous year. The country s foreign currency reserve increased by 12.00% to reach US $24,141 million from previous year s US $ 21,558 million. During the year the total export earning was US $ 31,209 million as compared to US $ 30,187 million of previous year, reflecting export growth of 3.39%. The export growth of and were 11.22% and 11.69% respectively. Political unrest, devaluation of respective currencies against dollar, slowdown in the RMG sector caused declining trend in export growth. Company Performance The company being deemed exporter, its sales performance is directly related to the foreign orders received and executed by the country s textile and garments sector. The slow EU recovery from recession as well as the aftermath of Rana Plaza and other incidents of previous year has slowed the export order. This has prompted poor sales responses in the company s products i.e. yarn dyeing services. Future Prospects The world economy is expected to be better in 2016 compared to the current and previous years. In view of country s better economic growth prospect and political stability, the textile industry is expected to perform very well. The company is also taking some aggressive steps to increase export orders and production. There are some visible signs of recovery and the management is hopeful of improved performance in the days ahead. Conclusion In conclusion, we believe that we have the strengths and resources to achieve our desired goal. I would like to convey sincere appreciation to our valued shareholders, regulators, suppliers, financing partners and all other stakeholders for their continued support. Our employees also deserve appreciation for their hard work and dedication to propel the Company towards success. Thanking you, Hubbun Nahar Hoque Chairperson 07

9 Directors' Report to the Shareholders Dear Shareholders On behalf of the Board of Directors of Anlima Yarn Dyeing Limited, we welcome you to the 20th Annual General Meeting of the Company. It is our privilege to place before you the Directors Report together with the Audited Financial Statements of the Company for the year ended June 30, 2015 along with the auditors report thereon 2. 08

10 1. Industry Outlook The year was the year of challenges for Bangladesh economy. During the first nine months of the current financial year the country s textile sector suffered a lot due to political unrest and collapse of Rana Plaza. Though subsequently the situation improved, the textile sector s performance was far less than satisfactory. The country s export earnings of the year fell short by 6% (US $ 1991 million) against target. In case of textile the actual export earnings was short by 5.34% (US $ 1, million). Sub-sector wise, the earnings shortfall in knitwear, woven garments, home textile and specialized textile were 5.97%, 4.51%, 5.37% and 7.95% respectively. The exports from knitwear, woven garments, home textile and specialized textile in were US $ 12, million, US $ 13, million, US $ million and US $ million respectively compared to US $ 12, million, US $ 12, million, US $ million and US $ million respectively of previous year. The share of knitwear, woven garments, home textile and specialized textile in total textile sector were 47.07%, 49.47%, 3.05% and 0.41% respectively in against 47.46%, 48.99%, 3.12% and 0.43 % of the previous year. 2. Operating Performance a. Business Outlook Being in the textile sector the company s performance, to a large extent, is dependent on the RMG sector s order situation. The country s RMG industry is losing its competitive edge to the emerging markets like: Vietnam, Cambodia, India, China and Pakistan. In such a situation your company has adopted required strategy to retain reasonable market share. This, along with aggressive marketing strategy, has helped to recover to some extent towards the end of the financial year. b. Product-wise Performance The company offers yarn dyeing services and sewing thread in the form of deemed export. All of its production is dependent upon buyers orders. Due to lack of order the production during the year declined by 7.4%. Product-wise, dyed yarn production declined by 11.6% and a part of this was compensated by sewing thread production increase by 14.5%. Due to increase in raw material and overhead cost the overall production cost per kg has increased to Tk. 159 compared to Tk. 145 of previous year. Product-wise, the yarn dyeing cost has remained almost the same (Tk. 112 per kg) but the sewing thread cost has increased to Tk. 342 per kg against Tk. 323 of previous year. Product-wise Performance Particulars Yarn Dyeing Sewing Thread Total Yarn Dyeing Sewing Thread Total Production 918, , ,969 1,039, ,168 1,239,040 Sales 913, , ,450 1,051, ,559 1,253,116 Sales Revenue (000 Tk.) 130,938 97, , ,802 83, ,869 Revenue (Tk. per kg) Cost of Goods Sold: (000 Tk.) Raw Materials Consumed 45,783 34,197 79,981 53,654 30,360 84,014 Packing Material Consumed 3,823 2,855 6,678 3,917 2,217 6,134 Manufacturing Expenses 40,770 30,453 71,223 43,824 24,798 68,622 Depreciation 12,002 8,965 20,967 14,268 8,073 22,341 Available for sales 102,378 76, , ,664 65, ,111 Stock Adjustment (222) 4,911 4, (355) 538 Cost of Goods Sold 102,156 81, , ,557 65, ,649 Cost of Goods Sold Per Kg (Tk.) Gross Profit 28,781 16,422 45,203 30,245 17,974 48,220 Gross Profit Per Kg (Tk.) Administrative Expenses 7,884 5,889 13,773 8,102 4,585 12,687 Marketing Expenses 1,769 1,321 3,091 1, ,504 Financing Cost 2,382 1,780 4,162 5,914 3,346 9,260 Net Profit After Tax 14,089 5,448 19,537 11,351 7,283 18,634 KG 2. The reports were approved by the Board of Directors on October 25, 2015 which is prepared in compliance with section 184 of the Companies Act 1994 and Bangladesh Securities and Exchange Commission s notification No. SEC/CMRRCD/ /134/Admin/44 dated 7th August, 2012 and other applicable laws. 09

11 c. Sales and Profitability The sales revenue during the year was Tk million compared to Tk million of previous year. By volume also the sales declined slightly to 1,151 tons from 1,253 tons of previous year. Product wise, the Sewing Thread sales increased to 238 tons compared to 202 tons of previous year (18% increase). Yarn Dyeing sales on the other hand has declined to 914 ton against 1,052 tons of previous year (13% decline). The sales price realization per unit of yarn dyeing service increased slightly to Tk. 143 compared to Tk. 140 of last year. The sewing thread sales price per unit was Tk. 411 against Tk. 412 of previous year. Due to higher quantity of sewing thread sales, which has higher average sales value than yarn dyeing, the shortfall in sales revenue from yarn dyeing services has almost compensated. Due to decline in sales the gross profit has declined by 6.25% (Tk million). Though the administrative and marketing expenses have increased due to increased salary and office expenses, decline in financing cost has compensated more than the increase and helped the net profit to increase by 4.85% compared to previous year. The net profit of the year is Tk million as against Tk million of previous year. Despite decrease in sales revenue the profit in Yarn Dyeing has increased by 24% due to reduction in administrative, marketing and interest expenses. d. Key Operating and Financial Information The key operating and financial information for the year along with the preceding four years are presented below: ( 000 Tk.) Particulars Sales Revenue 228, , , , ,862 Gross Profit 45,203 48,219 52,322 50,819 49,303 Operating Profit 28,339 33,029 38,972 36,130 34,794 Profit before Tax 23,025 22,637 26,709 25,111 24,494 Net Profit after Tax 19,537 18,634 24,259 21,344 20,821 Share Capital 178, , , , ,678 EPS (Tk.) Proposed Dividend 17,868 17,868 17,868 17,868 17,868 Dividend per Share (Cash) Net Asset Value per share (Tk.) Market Price per share (Tk.) Price Earnings ratio (Times) Fixed Assets (Gross) 635, , , , ,021 Shareholders Equity 216, , , , , Profit and its Appropriation The Directors have the pleasure to report the financial results and appropriation account for the year ended 30 th June, 2015 as below: Taka in Thousand Particulars Net Profit after Tax 19,537 18,634 Profit brought from previous year 7,529 6,763 Profit Available for Appropriation (Tk.) 27,066 25,397 Proposed Dividend 17,868 17,868 Profit Carried Forward 9,198 7,529 As mentioned above, the company s net profit of the year has increased to Tk million. Adding prior years retained earnings the distributable profit arrived at Tk million. 4. Dividend The Board of Directors have recommended 10% Cash Dividend i.e. Tk per share for the year for all shareholders subject to approval by the shareholders in the Annual General Meeting. 5. Directors a. Retirement and Re-election Mrs. Hubbun Nahar Hoque, Director of the company retired by rotation and being eligible, offers herself for re-election as Director of the Company. Mrs. Hoque was born in a respected Muslim family of Sylhet. She obtained Bachelor Degree from a renowned University in Dhaka. Over the past years of her business career she gained significant experience in import and export trade, real estate and textile sector. Mrs. Hoque is also associated with social welfare activities by patronizing different clubs and social organizations. She is also the Director of Anlima Textile Limited, Precision Energy Limited, Allied Enterprise (Pvt.) Limited and Anlima Buildtech Limited. b. Appointment of Independent Director As per BSEC Notification No. SEC/CMRRCD/ /134/Admin/44 dated August 07, 2012 Mr. Akram Khan was appointed as Independent Director in He would complete his three years tenure in this AGM. The Board of Directors as per the aforementioned notification has recommended Mr. Ahmad Ullah for appointment as Independent Director in the next AGM. The particulars of Mr. Ahmad Ullah is furnished below. Mr. Ahmed Ullah is a Master degree holder and is one of the established businessmen of the country. He is the sole distributor of Data Color, USA and markets Data Color branded spectophotometer and other accessories for color lab of textile factories in Bangladesh. He is also one of the sponsors of Korea-Bangladesh export oriented joint venture cap manufacturing and exporting factory running its operation since last fifteen years. Besides, he is also involved in social works through different organizations. 10

12 c. Other Directors Profile i. Mr. Mahmudul Hoque, Managing Director Mr. Mahmudul Hoque was born in a respectable Muslim family of Chittagong. He obtained Bachelor of Commerce Degree from Chittagong University. He is a born businessman as he started his business since early days of his career. Over the past thirty five years of his business career he gained significant experience in import and export trade, power sector, real estate and textile sector. He is the Managing Director of Precision Energy Limited, Anlima Textile Limited, Allied Enterprise (Pvt.) Limited and Anlima Buildtech Limited. He is also the sponsor Director of Jamuna Bank Limited and International Holdings Ltd. He is also involved in different social development works through a host of social organizations. ii. Mr. M. Abul Kalam Mazumdar Mr. M. Abul Kalam Mazumdar has been in the Board since He is an MBA from Institute of Business Administration of University of Dhaka and a Fellow (FCMA) of the Institute of Cost and Management Accountants of Bangladesh. He is also a Certified Management Consultant (CMC) from Australia. Mr. Mazumdar has vast knowledge and experience in corporate sector of Bangladesh. Prior to his joining in the company he served in BJMC, Ministry of Finance and Beximco Group in various fields of corporate management. He also served in various national committees some of which are: Bangladesh Bank s Committee for Selection of Country Credit Rating Agency, Privatization Committee of Ministry of Industry, Pharmaceutical Pricing Committee of Drug Administration. iii. Mr. Md. Abul Bashar Mr. Md. Abul Bashar was born in a respectable Muslim family of Chittagong. He obtained Bachelor of Commerce Degree from Chittagong University. Since 1996 he is involved in the Group and has vast experience in management of the company s affairs. He is also the Sponsor Director of Anlima Textile Limited. 6. External Auditors The existing auditors M/S Ata Khan & Co. Chartered Accountants, 67 Motijheel C/A, Dhaka-1000, who were appointed as statutory auditors of the company in the nineteenth Annual General Meeting, successfully carried out the audit for the year ended 30 th June As per Bangladesh Securities and Exchange Commission s Notification No. SEC/ CMRRCD/ /174/Admin/61 dated July 8, 2015 they are not eligible for re-appointment. The company received proposal from Ahmed Zaker & Co, Chartered Accountants, 45 Bijoynagar, Saiham Sky View Tower (2ndFloor), Dhaka-1000 which was placed in the board meeting. The Board of Directors recommended them for appointment in the 20 th Annual General Meeting of the company for the year Audit Committee The audit committee performed as a sub-committee of the Board in order to assist the Board in ensuring and fulfilling its responsibilities. During the financial year the following persons continued as member of the Audit Committee. Mr. Akram Khan (Independent Director) Chairman Mr. M. Abul Kalam Mazumdar Member Mr. Md. Abul Bashar Member Mr. M. Jahangir Alam Company Secretary The details of the activities of the Audit Committee have been provided in Appendix-C. 8. Declaration of Directors on Financial Statements The Directors being responsible for governance of the Company and preparation and presentation of financial statements, confirm to the best of their knowledge that: a. The financial statements together with the notes thereon have been drawn up in conformity with the Companies Act, 1994 and Bangladesh Securities and Exchange Rules, These statements present fairly the Company s state of affairs, the result of its operations, cash flow and changes in equity; b. Proper books of accounts of the Company have been maintained; c. Appropriate accounting policies have been consistently applied in preparation of the financial statements except those referred to in the financial statements and that the accounting estimates are based on reasonable and prudent judgment; d. The International Accounting Standards (IASs) / Bangladesh Accounting Standards (BASs) / International Financial Reporting Standards (IFRSs) / Bangladesh Financial Reporting Standards (BFRSs), as applicable in Bangladesh, have been followed in preparation of the financial statements and any departure has been adequately disclosed ; e. Internal Control System is sound in design and has been effectively implemented and monitored; f. There is no significant doubt about the ability of the Company to continue as a going concern; g. The CEO and CFO have certified to the Board that they have reviewed the financial statements and affirm that these statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading; h. The CEO and CFO have certified to the Board that they have reviewed the financial statements and affirm that these statements together present a true and fair view of the company s affairs and are in compliance with existing accounting standards and applicable Laws; and i. The CEO and CFO have further certified to the Board that there are, to the best of their knowledge and belief, no transactions entered into by the company during the year which are fraudulent, illegal or in violation of the company s codes of conduct. 11

13 9. Other Regulatory Disclosures The Company is aware of its various risks and concerns, mainly from the policy and regulatory fronts, and is prepared to meet those by systematic control. Different type of risk management has been disclosed in note- 39 of financial statements. All transactions with related parties have been made on a commercial basis and the basis was the principle of Arms Length Transaction. Details of related party and transactions have been disclosed in note- 40 of Notes to the Financial Statements. As per IAS 1 Presentation of Financial Statements, no items of income and expense are to be presented as extraordinary gain or loss in the financial statements. As such no extraordinary gain or loss has been recognized in the financial statements; No significant variations have occurred between quarterly and final results of the company during. During the year, the Company has not paid any amount as Board meeting attendance fees as the Directors volunteered not to take the fee. The remuneration of Directors has been mentioned in Note- 44 (a) of Notes to the Financial Statements. All significant deviations from the previous year in operating results of the Company have been highlighted and reasons thereof have been explained. The key operating and financial data for the last five years have been disclosed in the director s report. Mr. Mohammad Arif Hossain, Head of Internal Audit attended the Audit Committee meetings where desired. 10. Certification by the Managing Director and Chief Financial Officer The report of the Managing Director (Chief Executive Officer) and the Chief Financial Officer is placed in Appendix-B 11. Board Meetings and Attendance During the year ended 30 th June 2015, a total of six Board Meetings were held. The attendance of the Directors in the meeting are as follows: Name of the Directors Position Attendance Mrs. Hubbun Nahar Hoque Chairperson 06 Mr. Mahmudul Hoque Managing Director 06 Mr. M. Abul Kalam Mazumdar Director 06 Mr. Md. Abul Bashar Director 05 Mr. Akram Khan Independent Director 06 Mr. M. Jahangir Alam attended in all the Board Meetings as Company Secretary. 12

14 12. Shareholding Pattern Name of Shareholders No. of Share Holding Percentage i) Parent Company/ Subsidiary/ Associated Companies/ Other Related Parties: Nil - ii) Directors, Chief Executive Officer, Company Secretary, Chief Financial Officer, Head of Internal Audit Nil - and their spouses and minor children: Mr. Mahmudul Hoque 5,040, % Mrs. Hubbun Nahar Hoque 2,665, % Mrs. Aniqa Haque 360, % Mr. Alwi M. Haque 360, % Mr. M. Abul Kalam Mazumdar Nil - Mr. Md. Abul Bashar 2, % Mr. Md. Abdul Gani 2, % Mr. Md. Sarwar Uddin 2, % Mrs. Kamrun Nahar 2, % Mr. Md. Mansur Uddin 2, % Mr. Akram Khan (Independent Director) Nil - Chief Financial Officer Nil - Company Secretary Nil - Head of Internal Auditor Nil - iii) Executives (Top five salaried persons Nil - other than CEO, CFO, CS, HOIA): iv) Shareholders holding 10% or more Nil - voting interest in the company 14. Acknowledgment The Board of Directors express their heartfelt appreciation and gratitude for the continued support and patronage of the valued shareholders to run the Company. The Board also extends its appreciation to the regulators, government agencies and stakeholders especially: Bangladesh Securities and Exchange Commission, Bangladesh Bank, Central Depository Bangladesh, Dhaka Stock Exchange, Chittagong Stock Exchange, Department of Customs, Income Tax, Bankers, Insurers, Vendors, press and media and customers. The Board also extends felicitations to the management and employees for their dedication and working hard despite all adversity. We look forward to continue support of all concerned for marching towards better performance. On behalf of the Board of Directors Hubbun Nahar Hoque Chairperson Mahmudul Hoque Managing Director 13. Corporate Governance Compliance Report As per Bangladesh Securities and Exchange Commission Notification No. SEC/ CMRRCD/ /134/Admin/44 dated 07 August 2012, the report on Corporate Governance Compliance is annexed in Appendix-A. 13

15 Appendix - A CORPORATE GOVERNANCE Compliance Report Status of compliance with the conditions imposed by the Bangladesh Securities and Exchange Commission s Notification No. SEC/CMRRCD/ /134/Admin/44 dated 7 th August, 2012 issued under section 2CC of the Securities and Exchange Ordinance, 1969 is presented below: (Report under Condition No. 7.00) Condition No. 1 Board of Directors (BOD) 1.1 Board size (Board members should not be less than 5 and more than 20) 1.2 Independent Directors (ID): 1.2(i) Independent Director at least 1/5 th of the total number of directors of the company 1.2(ii) a) Does not hold any share or holds less than 1% shares of the total paid-up shares in the company 1.2(ii) b) Not connected with any sponsor/director/shareholders who holds 1% or more shares of the total paid-up shares on the basis of family relationship 1.2(ii) c) Does not have any relationship, whether pecuniary or otherwise, with the company or its subsidiary/ associated companies 1.2(ii) d) Not a member, director or officer of any stock exchange 1.2(ii) e) Not a shareholder, director or officer of any member of stock exchange or an intermediary of the capital market 1.2(ii) f) Not a partner or an executive or was not a partner or an executive during the preceding 3 (three) years of the concerned company s statutory audit firm 1.2(ii) g) Not be an independent director in more then 3 (three) listed companies 1.2(ii) h) Not been convicted by a court of competent jurisdiction as a defaulter in payment of any loan to a bank or a NBFI 1.2(ii) i) Not been convicted for a criminal offence involving moral turpitude 1.2(iii) Independent Director shall be appointed by the board of directors and approved by the shareholders in the AGM 1.2(iv) The post of Independent Director(s) can not remain vacant for more than 90 (ninety) days 1.2(v) Board shall lay down a code of conduct of all board members and annual compliance of the code to be recorded 1.2(vi) Tenure of office of an independent director shall be for a period of 3 (three) year s, which may be extended for 1 (one) term only Title Compliance Status (Put in the appropriate column) Complied Not Complied Remarks (if any) 14

16 Condition No. Title Compliance Status (Put in the appropriate column) Complied Not Complied 1.3 Qualification of Independent Director: 1.3 (i) Independent Directors shall be knowledgeable individual with integrity to ensure compliance with financial, regulatory and corporate law and make meaningful contribution to business 1.3 (ii) Being a business Leader/ Corporate Leader/ Bureaucrat/ University Teacher (Economics/Business/Law)/CA/CMA/CS having 12 years of management/professional experience 1.3 (iii) Special cases for relaxation of qualification of Independent Directors N/A 1.4 Appointment of Chairman and CEO, defining roles 1.5 Inclusions in Director s Report to Shareholders: 1.5 (i) Industry outlook and possible future developments in the industry 1.5 (ii) Segment wise or product wise performance 1.5 (iii) Risks and concerns 1.5 (iv) Discussion on Cost of Goods sold, Gross Profit Margin and Net Profit Margin 1.5 (v) Discussion on continuity of any extra-ordinary Gain or Loss 1.5 (vi) Basis for and a statement of related party transactions 1.5 (vii) Utilization of proceeds from public issues, rights issues and or through any others N/A 1.5 (viii) Explanation if the financial results deteriorated after the company goes for IPO, RPO, Rights Offer, Direct Listing etc. N/A 1.5 (ix) Explanation about significant variance occurs between Quarterly Financial Performance, Annual Financial statements 1.5 (x) Remuneration to directors including Independent Directors 1.5 (xi) The financial statements present fairly its state of affairs, result of its operations, cash flows and changes in equity. 1.5 (xii) Maintenance of proper books of Accounts 1.5 (xiii) Appropriate Accounting Policies and estimates have been applied 1.5 (xiv) Followed IAS/BAS/IFRS and BFRS in preparation of Financial statements 1.5 (xv) Internal Control System has been effectively implemented and monitored. 1.5 (xvi) Ability to continue as a going concern 1.5 (xvii) Significant deviations from the last year s operating result 1.5 (xviii) Key operation and financial summarized data of at least preceding 5 (Five) year s 1.5 (xix) Reasons for not declared dividend N/A 1.5 (xx) Number of Board meetings held during the year and attendance by the Directors 1.5 (xxi) Pattern of Shareholding (along with name wise details): 1.5 (xxi) (a) Parent/Subsidiary/Associate companies and other related parties 1.5 (xxi) (b) Directors, CEO, CS, CFO, HIA and their spouses and minor children 1.5 (xxi) (c) Executives 1.5 (xxi) (d) 10% or more voting interest 1.5 (xxii) Appointment/re-appointment of a director: 1.5 (xxii) (a) Resume of the Directors Remarks (if any) 15

17 Condition No. Title Compliance Status (Put in the appropriate column) Complied Not Complied 1.5 (xxii) (b) Expertise in specific functional areas 1.5 (xxii) (c) Holding of directorship and membership of committees of the board other than this company 2 CFO, Head of Internal Audit and CS: 2.1 Appointment of CFO, HIA and CS 2.2 CFO and CS shall attend the meeting of the Board of Directors. 3 Audit Committee: 3(i) Audit Committee as the sub-committee of the Board of Directors 3(ii) Assistance of the Audit Committee to Board of Directors 3(iii) Responsibility of the Audit Committee to the Board of Directors 3.1 Constitution of the Audit Committee: 3.1 (i) Audit Committee composed 3 (Three) members 3.1 (ii) Members of the audit committee have been appointed by the Board of Directors 3.1 (iii) Qualified members in audit committee 3.1 (iv) Term and conditions of service of audit committee members 3.1 (v) Secretary of the audit committee 3.1 (vi) Quorum of the audit committee 3.2 Chairman of the Audit Committee: 3.2 (i) The Chairman has been selected by the Board of Directors 3.2 (ii) Chairman of the audit committee present in the AGM 3.3 Role of Audit Committee: 3.3 (i) Oversee the financial reporting process 3.3 (ii) Monitor choice of the accounting policy and principals 3.3 (iii) Monitor Internal Control Risk Management Process 3.3 (iv) Oversee hiring and performance of external auditors 3.3 (v) Review the annual financial statements before submission to the board for approval 3.3 (vi) Review the Quarterly and Half Yearly financial statements before submission to the board for approval 3.3 (vii) Review the adequacy of internal audit function 3.3 (viii) Review statement of significant related party transactions 3.3 (ix) Review Management letters /Letter of internal control weakness issued by statutory auditors 3.3 (x) Disclosure about the uses/applications of funds raised by IPO/RPO/Right issue N/A 3.4 Reporting of the Audit Committee Reporting to the Board of Directors: (i) Activities of audit committee shall be reported to the Board of Directors (ii) (a) Conflicts of interests (ii) (b) Suspected or presumed fraud of irregularity or material defect in the internal control system Remarks (if any) 16

18 Condition No. Title Compliance Status (Put in the appropriate column) Complied Not Complied (ii) (c) Infringement of laws, rules and resolutions (ii) (d) Any other matter disclosed to the Board of Directors Reporting to the Authorities 3.5 Reporting to the Shareholders and General Investors 4 External / Statutory Auditors: 4 (i) Appraisal or valuation services or Fairness opinions 4 (ii) Financial Information Systems design and implementation 4 (iii Book-Keeping or other service related to the accounting and financial statements 4 (iv) Broker-dealer services 4 (v) Actuarial Services 4 (vi) Internal Audit Services 4 (vii) Services that the audit committee determines 4 (viii) Audit firm shall not hold any share of the company they audit 5 Subsidiary Company: 5 (i) Compositions of the Board of Directors to be similar to holding company N/A 5 (ii) At least 1(one) independent director to subsidiary company N/A 5 (iii) Submission of Minutes to the holding company N/A 5 (iv) Review of Minutes of subsidiary company by the holding company N/A 5 (v) Review of Financial Statement by the holding company N/A 6 Duties of CEO and CFO: 6 (i) a) Reviewed the materially untrue statement or omit any material fact of the financial statement 6 (i) b) Reviewed about compliance of the accounting standard 6 (ii) Reviewed about fraudulent, illegal or violation of the company s code of conduct 7 Reporting and Compliance of Corporate Governance: 7 (i) Obtain certificate regarding compliance of conditions of Corporate Governance Guidelines 7 (ii) Annexure attached in the Director s Report Remarks (if any) 17

19 Appendix-A (Contd...) Shahadat Rashid & Co. Chartered Accountants House # 406 (1st Floor), Road # 29, Mohakhali DOHS, Dhaka-1206, Bangladesh. Telephone Off : , Mobile : , , , CERTIFICATE ON COMPLIANCE OF CORPORATE GOVERNANCE GUIDELINES [ Issued under Condition No. 7(i) of Corporate Governance Guidelines of BSEC vide Notification No. SEC/CMRRCD/ /134/Admin/44 dated 07 August 2012.] We have examined the compliance of conditions of corporate governance guidelines of the Bangladesh Securities and Exchange Commission by Anlima Yarn Dyeing Limited for the year ended 30 June 2015 as stipulated in clause 7(i) of the BSEC Notification No. SEC/CMRRCD/ /134/Admin/44 dated 07 August The compliance of conditions of corporate governance guidelines as stated in the aforesaid notification and reporting of the status of compliance is the responsibility of the Company's management. Our examination for the purpose of issuing this certification was limited to the checking of procedures and implementations thereof, adopted by the company for ensuring the compliance of conditions of corporate governance and correct reporting of compliance status on the attached statement on the basis of evidence gathered and representation received. This is a scrutiny and verification only and not an expression of opinion or audit on the Financial Statements of the Company. To the best of our information and according to the explanations given to us, we certify that, as reported on the attached status of compliance statement, the Company has complied with the conditions of corporate governance stipulated in the above mentioned BSEC notification. 18 Certificate on compliance of CORPORATE GOVERNANCE GUIDELINES Shahadat Rashid & Co. Chartered Accountants

20 Appendix-B Anlima Yarn Dyeing Limited City Heart, Suite # 4/3, 67 Naya Paltan, Dhaka CEO and CFO s Declaration to the Board The Board of Directors Anlima Yarn Dyeing Limited In accordance with the notification of Bangladesh Securities and Exchange Commission Notification No. SEC/CMRRCD/ /134/Admin/44 dated 07 August 2012; we the undersigned, Managing Director and Chief Finance Officer do hereby certify that we have thoroughly reviewed the Financial Statements of the company for the year ended on 30th June, 2015 and state that : a) these statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading ; b) these statements together present a true and fair view of the company s affairs and are in compliance with existing accounting standards and applicable laws ; c) to the best of our knowledge and belief, the Company has not entered into any transactions during the year which are fraudulent, illegal or in violation of the Company s code of conduct. CEO and CFO s Declaration to the Board Mahmudul Hoque Managing Director M. Abul Kalam Mazumdar Chief Financial Officer 19

21 Report on the activities of the Audit Committee I have the pleasure to present the report of the Audit Committee of Anlima Yarn Dyeing Ltd. in pursuance to the Corporate Governance Guidelines of Bangladesh Securities and Exchange Commission (BSEC). This report is a brief on the activities performed by the Audit Committee during the year. The Scope of the Audit Committee was defined as under: (a) Oversee the financial reporting process; (b) Monitor and oversee choice of accounting policies and principles, Internal Control, Risk Management process, Internal Audit, hiring and performance of external auditors; (c) Review and recommended to the Board to approve the quarterly, half yearly and annual financial statements prepared for statutory purpose. (d) Review and consider the report of internal auditors and statutory auditors observations on internal control. (e) Any other requirement assigned by the Board of Directors. Activities carried out during the year: During the year, the Audit Committee of the Company held 04 meetings. Proceedings of the Audit Committee meetings were reported timely and regularly to the Board of Directors. The Committee performed among others, the following key functions: 01. The Committee reviewed the quarterly, half yearly and annual financial statements of the Company with the CFO and Managing Director and recommended to the Board for consideration. The committee also reviewed with the external auditor the findings arising from the audits before recommending the statements to the Board for approval. 02. The Committee had overseen, reviewed and approved the procedure and task of the internal audit, financial report preparation and the external audit reports. 03. The Committee reviewed the Audit Plan for the year The Committee reviewed the performance and process of appointment of external auditors. 05. The Committee found adequate arrangement to present a true and fair view of the activities and the financial status of the Company and didn t find any material deviation, discrepancies or any adverse finding/observation in reporting. External Auditor The existing auditors M/S Ata Khan & Co. Chartered Accountants, 67 Motijheel C/A, Dhaka-1000, who were appointed as statutory auditors of the company in the nineteenth Annual General Meeting, successfully carried out the audit for the year ended 30 th June As per Bangladesh Securities and Exchange Commission s Notification No. SEC/CMRRCD/ /174/Admin/61 dated July 8, 2015 they are not eligible for re-appointment. The Committee after considering the proposal received from Ahmed Zaker & Co, Chartered Accountants, 45 Bijoynagar, Saiham Sky View Tower (2nd Floor), Dhaka-1000 has made recommendation to the Board for appointment and fixing remuneration for the year subject to approval by the shareholders in the twentieth Annual General Meeting. Other reviews and Activities During the year the Committee assessed and examined the risk management process and internal control policies of the company. The committee also reviewed Risk Management, internal audit plans as to their consistency with risk management framework used and adequacy of coverage. The Committee also sat with senior management of the company, including Managing Director and CFO during the process of review on various issues. The Committee noted no material deviations or non-compliance or adverse audit findings that warrants for Board or shareholders attention during the period under review. Akram Khan (Independent Director) Chairman, Audit Committee Appendix-C 20

22 Photo Gallery 21

23 5 Years' STATISTICS Financial Position: Authorized Capital 000'Tk 200, , , , ,000 Paid up Share Capital 000'Tk 178, , , , ,678 Reserves and Surplus 000'Tk 10,965 10,965 35,595 18,074 14,597 Shareholders' Equity 000'Tk 216, , , , ,275 Total Assets 000'Tk 436, , , , ,001 Fixed Assets - Cost 000'Tk 635, , , , ,021 Fixed Assets - Carrying Value 000'Tk 341, , , , ,281 Net Working Capital 000'Tk (125,874) (145,092) (157,229) (172,827) (192,469) Net Profit for the year 000'Tk 19,537 18,634 24,259 21,344 20,821 Results of Operation: Revenue from Sales 000'Tk. 228, , , , ,862 Gross Profit Margin % 20.98% 20.98% 21.56% 21.18% 20.64% Operating Profit % 14.37% 14.37% 16.06% 15.06% 14.57% Net Profit after Tax % 8.11% 8.11% 10.00% 8.89% 8.72% Earnings per Share Tk Dividend per Share Tk Key Financial Ratios: Current Ratio Times 0.43:1 0.39:1 0.42:1 0.45:1 0.42:1 Inventory Turnover Times Debtors Turnover Days Debt Equity Ratio % 57:43 54:46 57:43 64:36 66: 34 Return on Investment % 4.47% 4.08% 4.86% 3.89% 3.69% Net Assets Value per Share Tk Market Value of Share (as on 30th June 15) Tk Dividend Yield % 4.46% 4.31% 5.15% 4.98% 2.46% Price Book Value Ratio Times Other Information: Total Shares No. 17,867,800 17,867,800 17,867,800 17,867,800 17,867,800 Total Shareholders No. 4,047 4,157 4,452 4,408 4,187 Number of Employees No

24 Professional Strength Total Assets ( 000 Tk.) Shareholders' Equity ( 000 Tk.) Key Performance Indicators IT Professionl, 4% MSc, 5% Master in Commerce, 16% MBAs and BBAs, 9% FCMA, 2% BSc Engineers, 13% Textile Technologists, 11% Dip in Textile, 20% Graduate, 20% 600, , , , , , , , , , , ,230 Net Asset Value per Share (Tk.) Market Price of Share (Tk.) Turnover ( 000 Tk.) 242, , , , , Gross Profit ( 000 Tk.) Net Profit ( 000 Tk.) Earnings per Share (Tk.) 49,303 50,819 52,322 48,219 45,202 20,821 21,344 24,259 18,634 19,

25 Financial Report 24

26 Auditors Report to the Shareholders We have audited the accompanying financial statements of Anlima Yarn Dyeing Limited, comprised of Balance Sheet as on June 30, 2015 and the related Profit and Loss Account, Statement of Changes in Equity and Cash Flow Statement for the year ended on that date and the related notes thereon. Respective Responsibilities of Directors and Auditors The Company s directors are responsible for preparing the. This includes responsibility for preparing the financial statements, in accordance with the Companies Act 1994, the Securities and Exchange Rules 1987 and the Bangladesh Accounting Standards adopted by the Institute of Chartered Accountants of Bangladesh (ICAB). Our responsibility is to form an independent opinion based on our audit on those statements and to report our opinion to you. This responsibility is established in Bangladesh by the Companies Act 1994 and the Bangladesh Standards on Auditing adopted by the ICAB. Basis of Audit Opinion We conducted our audit in accordance with the Bangladesh Standards on Auditing adopted by the ICAB. An audit includes examination on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgments made by the management in the preparation of the financial statements and of whether the accounting policies are appropriate to the Company s circumstances, consistently applied and adequately disclosed. We planned and performed our audit so as to obtain all the information and explanation, which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement. In forming our opinion, we also evaluated the overall adequacy of the presentation of information in the financial statements. We believe that our audit provides a reasonable basis for our opinion. Opinion In our opinion, the financial statements give a true and fair view of the state of the affairs of the Company as on June 30, 2015 and the profit & loss and cash flows for the year ended on that date and have been properly prepared in accordance with the Companies Act 1994, the Securities and Exchange Rules 1987 and the Bangladesh Accounting Standards adopted by the ICAB. We also Report that (a) we have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purpose of our audit and made due verification thereof; (b) in our opinion, proper books of accounts as required by law have been kept by the company so far as it appeared from our examination of those books; (c) the Company s Balance Sheet and Profit and Loss Account dealt with by this report are in agreement with the books of accounts; and (d) the expenditures incurred were for the purpose of the Company s business. Dhaka October 25, 2015 Ata Khan & Co. Chartered Accountants 25

27 Balance Sheet As on June 30, 2015 Anlima Yarn Dyeing Limited Notes ASSETS Non-Current Assets 343,002, ,123,732 Property, Plant and Equipment - Net Book Value 9 341,857, ,978,918 Security Deposits 10 1,144,814 1,144,814 Current Assets 93,904,343 92,745,320 Inventories 11 42,331,408 56,042,841 Advance, Deposit & Receivables 12 50,094,371 35,853,512 Cash and Cash Equivalents 13 1,478, ,967 TOTAL ASSETS Tk. 436,907, ,869,052 EQUITY AND LIABILITIES Shareholders' Equity 216,230, ,058,077 Issued Share Capital ,678, ,678,000 General Reserve 15 8,162,461 8,162,461 Dividend Equalization Reserve 16 2,802,178 2,802,178 Accumulated Profit (as per the Statement of Changes in Equity) 26,588,151 25,415,438 Non-Current Liabilities 898,202 3,973,644 Term Loan ,202 3,973,644 Current Liabilities and Provisions 219,778, ,837,331 Short Term Loan ,693, ,206,929 Liabilities for Expenses 19 10,808,664 7,777,785 Liabilities for Other Finance 20 28,275,893 25,852,617 TOTAL EQUITY AND LIABILITIES Tk. 436,907, ,869,052 Net Asset Value per share Tk Accounting Policies (Note - 5). Contingent Liabilities and Commitments (Note - 36 & 37). Accompanying notes are integral part of the Financial Statements. Approved by the Board on October 25, 2015 and signed on its behalf by: As per our report of even date. Dhaka October 25, 2015 Hubbun Nahar Hoque Chairperson Mahmudul Hoque Managing Director M. Abul Kalam Mazumdar Chief Financial Officer Ata Khan & Co. Chartered Accountants 26

28 Profit and Loss Account For the year ended 30 June, 2015 Anlima Yarn Dyeing Limited Notes 1st July, 2014 to 1st July, 2013 to 30th June, th June, 2014 Tk. Tk. NET SALES REVENUE ,739, ,869,503 Cost of Sales ,537, ,650,088 GROSS PROFIT 45,202,663 48,219,415 OPERATING EXPENSES Administrative Expenses 28 13,773,473 12,686,742 Marketing Expenses 29 3,090,524 2,503,607 16,863,997 15,190,350 PROFIT FROM OPERATION 28,338,666 33,029,066 Financing Cost 30 4,162,003 9,260,038 24,176,663 23,769,028 Contribution to Workers' Profit Participation Fund 1,150,809 1,131,406 NET PROFIT BEFORE TAX 23,025,854 22,637,622 Provision for Taxes 31 3,489,343 4,003,453 NET PROFIT AFTER TAX FOR THE YEAR 19,536,511 18,634,169 Basic Earnings Per Share (Par value Tk. 10/-) Number of shares used to compute EPS 17,867,800 17,867,800 Accounting Policies (Note - 5). Accompanying notes are integral part of the Financial Statements. Approved by the Board on October 25, 2015 and signed on its behalf by: As per our report of even date. Dhaka October 25, 2015 Hubbun Nahar Hoque Chairperson Mahmudul Hoque Managing Director M. Abul Kalam Mazumdar Chief Financial Officer Ata Khan & Co. Chartered Accountants 27

29 Statement of Changes in Equity For the year ended 30 June, 2015 Anlima Yarn Dyeing Limited Share Capital General Reserve Dividend Equalization Reserve Retained Earnings Total Equity Balance as on June 30, 2014 Tk. 178,678,000 8,162,461 2,802,178 25,415, ,058,077 Net Profit for the year transferred from Profit and Loss Account ,536,511 19,536,511 Cash Dividend Payment (18,363,798) (18,363,798) Balance as on June 30, 2015 Tk. 178,678,000 8,162,461 2,802,178 26,588, ,230,790 For the year ended 30 June, 2014 Balance as on June 30, 2013 Tk. 178,678,000 8,162,461 2,802,178 24,630, ,273,221 Net Profit for the year transferred from Profit and Loss Account ,634,169 18,634,169 Cash Dividend Payment (17,849,313) (17,849,313) Balance as on June 30, 2014 Tk. 178,678,000 8,162,461 2,802,178 25,415, ,058,077 Figures in bracket indicate deductions. Share Capital Accompanying notes are integral part of the Financial Statements. General Reserve Dividend Equalization Reserve Retained Earnings Total Equity Approved by the Board on October 25, 2015 and signed on its behalf by: As per our report of even date. Dhaka October 25, 2015 Hubbun Nahar Hoque Chairperson Mahmudul Hoque Managing Director M. Abul Kalam Mazumdar Chief Financial Officer Ata Khan & Co. Chartered Accountants 28

30 Cash Flow Statement For the year ended 30 June, 2015 Anlima Yarn Dyeing Limited 1st July, 2014 to 1st July, 2013 to 30th June, th June, 2014 Cash Flow from Operating Activities: Cash Collection from Customers Tk. 214,499, ,669,617 Cash Payment for Cost and Expenses (164,024,398) (173,354,507) Cash Generated from Operations 50,474,678 73,315,110 Interest paid (4,162,003) (9,260,038) Income Tax Paid (635,077) (972,390) Net Cash Generated from Operations 45,677,598 63,082,682 Cash Flow from Investing Activities: Factory Building and Civil Construction - (84,708) Purchase of Plant & Machinery - (2,999,501) Purchase of Electrical & Office Equipment (95,350) (344,454) Net Cash Used in Investing Activities (95,350) (3,428,663) Cash Flow from Financing Activities: Short Term Loan Repayment (23,513,411) (34,449,004) Long Term Loan Repayment (3,075,442) (7,857,235) Payment of Dividend (18,363,798) (17,849,313) Net Cash Generated from Financing Activities (44,952,651) (60,155,552) Net Increase/(Decrease) in Cash & Cash Equivalent 629,597 (501,533) Cash & Cash Equivalent at the beginning of year 848,967 1,350,500 Cash & Cash Equivalent at the closing of year Tk. 1,478, ,967 Net Operating Cash Flow per Share Tk Figures in bracket indicate deductions. Accompanying notes are integral part of the Financial Statements. Approved by the Board on October 25, 2015 and signed on its behalf by: As per our report of even date. Dhaka October 25, 2015 Hubbun Nahar Hoque Chairperson Mahmudul Hoque Managing Director M. Abul Kalam Mazumdar Chief Financial Officer Ata Khan & Co. Chartered Accountants 29

31 Notes to the Financial Statements For the year ended on June 30, 2015 Anlima Yarn Dyeing Limited 1. Corporate Information Organisation And Business The Anlima Yarn Dyeing Limited (the company ), a member of Anlima Group, was incorporated in Bangladesh as a public limited company on October 24, It went for public issue of shares in 1997 and commenced commercial operation on March 30, The shares of the company are listed both in the Dhaka and Chittagong Stock Exchanges of Bangladesh. The registered office of the company is located at Suite # 4/3, City Heart, 67, Naya Paltan, Dhaka 1000 and the factory is located at Karnapara, Savar. The company owns and operates a 100% export oriented yarn and sewing thread dyeing facilities for use by the knitting, weaving, sweater and garments factories. The company employed 284 employees as of June 30, 2015 (267 in ). 2. Accounting Pronouncements (Standards) The financial statements of the company have been prepared in accordance with the Bangladesh Accounting Standards (BASs) adopted by the Institute of Chartered Accountants of Bangladesh (ICAB). 3. Accounting Convention (Measurement Basis) The financial statements are prepared under the historical cost convention and therefore, do not take into consideration the effect of inflation. 4. Basis Of Preparation And Presentation Of Financial Statements And The Responsibility Thereto The Management is responsible for the preparation and presentation of financial statements. The financial statements have been prepared and the disclosures of information have been made in accordance with the requirements of : the Companies Act 1994; the Bangladesh Securities and Exchange Rules 1987; the Listing Rules of Dhaka and Chittagong Stock Exchanges; and the Bangladesh Accounting Standards. 30

32 5. Principal Accounting Policies The specific accounting policies selected and applied have been set out below: 5.1 Revenue Recognition Revenue represents invoiced value of yarn dyeing services and sewing thread sales, which are recognized when delivery invoices were made. 5.2 Recognition of Tangible Fixed Assets These are capitalized at cost of acquisition and subsequently stated at cost less accumulated depreciation in compliance with the benchmark treatment of BAS 16 Property, Plant and Equipment. The cost of acquisition of an asset comprises its purchase price and any directly attributable cost of bringing asset to its working condition for its intended use inclusive inward freight, duties and non-refundable taxes. In respect of major projects involving construction, related pre-operational expenses form part of the value of asset capitalized. Expenses capitalized also include applicable borrowing cost considering the requirement of BAS 23 BorrowingCosts. Expenditure incurred after the assets have been put into operation, such as repairs & maintenance is normally charged off as revenue in the period in which it is incurred. In situation where it can be clearly demonstrated that the expenditure has resulted in an increase in the future economic benefit expected to be obtained from the use of the fixed assets, the expenditure is capitalized as an additional cost of the assets. Software and all upgradation/enhancement are generally charged off as revenue expenditure unless they bring similar significant additional benefits. Machinery acquired under finance lease has been considered as fixed assets of the company. On retirement or otherwise disposal of fixed assets, the cost and accumulated depreciation are eliminated and any gain or loss on such disposal is reflected in the profit and loss account which is determined with reference to the net book value of assets and the net sales proceeds. 5.3 Depreciation of Tangible Fixed Assets Land is held on a freehold basis and is not depreciated considering the unlimited life. In respect of all other fixed assets, depreciation is provided to amortize the cost of the assets over their expected useful economic lives in accordance with the provisions of BAS 16 Property, Plant and Equipment. Depreciation is computed using the reducing balance method. Depreciation is also charged on additions during the year on the basis of date of operation. The annual depreciation rates applicable to the principal categories are: Factory Building and Civil Construction 2.50% Plant and Machinery 6.67% Electrical Installation 20.00% Furniture and Fixture 20.00% Office Equipment 20.00% Vehicle 20.00% 5.4 Inventories In compliance with the requirement of BAS 2 Inventories, inventories are stated at the lower of cost and net realizable value. The cost is calculated on weighted average method consistently. Costs comprise expenditure incurred in the normal course of business in bringing such inventories to its location and conditions. Where necessary provision is made for obsolete, slow moving and defective inventories (if any) identified at the time of physical verification of inventories. 5.5 Trade Debtors These are carried at original invoice amount. This is considered good and collectible and therefore, no amount was written off as bad debt and no debt was considered doubtful to provide for. 5.6 Employee Benefits The company operates a recognized contributory provident fund for its employees. The assets of provident fund are held in a separate trustee administered fund as per the relevant rules and are funded by payments from employees and by the company at pre-determined rates. The company s contributions to the provident fund are charged off as revenue expenditure in the period to which the contributions relate. 5.7 Cash and Cash Equivalents For the purpose of Balance Sheet and Cash Flow Statement, cash in hand and bank balances represent cash and cash equivalents considering the BAS 1 Presentation of Financial Statements and BAS 7 Cash Flow Statement, which provide that cash and cash equivalents are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value and are not restricted as to use. 5.8 Creditors and Accrued Expenses Liabilities are recognized for amounts to be paid in the future for goods and services received whether or not billed by the supplier. 5.9 General Reserve The amount represents reserve created during the tax holiday period from 1998 to Provision for Income Tax Income Tax provision has been made as per the prescribed 15% on Net Profit Provision for Deferred Tax Deferred tax provision has been made as per IAS Earnings Per Share (EPS) The company calculates earnings per share (EPS) in accordance with the Bangladesh Accounting 31

33 Standard, BAS 33 Earnings Per Share which has been shown on the face of Profit and Loss Account and the computation of EPS is stated in note Basic Earnings This represents earnings for the year attributable to ordinary shareholders. As there was no preference dividend, minority interest or extra ordinary items, the net profit/loss for the year has been considered as fully attributable to ordinary shareholders Weighted Average Number of Ordinary Shares Outstanding During the Year This represent the number of ordinary shares outstanding at the beginning of the year plus the number of ordinary shares issued during the year multiplied by a time-weighting factor. The time-weighting factor is the numbers of days the specific shares are outstanding as a proportion of the total number of days in the period Basic Earnings Per Share This has been calculated by dividing the basic earnings by the weighted average number of ordinary shares outstanding during the year Diluted Earnings Per Share No diluted EPS is required to be calculated for the year as there was no scope for dilution during the year under review Cash Flow Statement Cash Flow Statement is prepared principally in accordance with BAS 7 Cash Flow Statement and the cash flows from the operating activities have been presented under the direct method required by the Securities and Exchange Rules 1987 and considering the provision of Paragraph 19 of BAS 7 which provides that Enterprises are Encouraged to Report Cash Flow From Operating Activities Using the Direct Method Foreign Currencies The financial records of the company are maintained and financial statements are stated in Bangladesh Taka. Foreign Currency transactions are recorded at the applicable rates of exchange ruling at the transaction date in accordance with BAS 21 The Effects of Changes in Foreign Currency Rates. There was no foreign currency balance as on balance sheet date Risk and Uncertainties for the Use of Estimates (Provisions) The preparation of financial statements in conformity with Bangladesh Accounting Standards requires management to make estimates and assumptions that affect the reported amounts of revenues and expenses, assets and liabilities and the disclosure requirements for contingent assets and liabilities during and at the date of the financial statements. Due to the inherent uncertainty involved in making estimates, actual result reported could differ from those estimates. In accordance with the guidelines as prescribed by BAS 37 Provisions, Contingent Liabilities and Contingent Assets, provisions were recognized in the following situations: (a) when the company has a present obligation as a result of past event; (b) when it is probable that an outflow of resources embodying economic benefit will be required to settle the obligation; and (c) reliable estimates can be made of the amount of the obligation. 6. Segmental Analysis - Business And Geographical Segments All the company s turnover and operating profit is generated from sale of yarn dyeing service and sewing thread and the location of customers are within same geographical segment. Therefore, disclosure of information in respect of turnover, profit, assets and liabilities regarding business segments and geographical segments as required by BAS 14 Segment Reporting are not relevant and applicable for the company. 7. Statement of Total Recognized Gains And Losses During the year under review, no gain or loss was directly dealt with through the shareholders equity without being recognized in the profit and loss account. Therefore, net profit for the year recognized in the profit and loss account is the total recognized profit and therefore, the statement of changes in equity does not reflect any profit not recognized in the profit and loss account. 8. Note of Historical Cost Profits and Losses There was no difference in profit on ordinary activities before taxation and the net profit before tax as there was no extra ordinary item. Furthermore, as there was no revaluation of fixed assets in previous years and during the year under review, there was no factor like the differences between historical cost depreciation and depreciation on revalued amount, realization of revenue surplus on retirement or disposal of assets etc. Therefore, no separate note of historical cost profit and loss has been presented. 32

34 9. PROPERTY, PLANT & EQUIPMENT - TK. 341,857,910 The relevant information in respect of Property, Plant and Equipment and depreciation as required by the laws, rules and the accounting standards is set out below: Description Cost as at June 30, 2014 Addition during the year Disposal during the year Cost as at June 30, 2015 Accumulated Depreciation as at June 30, 2014 Written Down Value as at June 30,2014 Rate of depreciation Charged during the year Accumulated Depreciation as at June 30, 2015 (Amount in Taka) Written Down Value as at June 30, 2015 Land and Land Development 20,092, ,092,587-20,092, ,092,587 Factory Building and Civil Construction 69,205, ,205,460 16,574,008 52,631, % 1,315,786 17,889,794 51,315,666 Plant and Machinery 513,318, ,318, ,032, ,286, % 19,095, ,128, ,190,753 Electrical Installation 7,094, ,094,539 6,199, , % 179,053 6,378, ,212 Furniture and Fixture 14,019, ,019,744 12,497,191 1,522, % 304,511 12,801,702 1,218,042 Office Equipment 6,982,154 95,350-7,077,504 6,067, , % 194,444 6,261, ,507 Vehicle 4,578, ,578,647 3,942, , % 127,286 4,069, ,142 Total 635,292,026 95, ,387, ,313, ,978,918 21,216, ,529, ,857,910 The depreciation charges during the year has been allocated in the Profit and Loss Account as below: (Amount in Taka) Head of Accounts Factory Plant & Electrical Furniture & Equipment Vehicle Total Building Machinery Installation Fixture Cost of Sales 1,315,786 19,095, , ,255 97, ,286 20,966,881 Administrative ,677 29,167-74,843 Marketing ,579 68, ,634 Total 1,315,786 19,095, , , , ,286 21,216,358 33

35 10. SECURITY DEPOSITS - TK. 1,144,814 This represents the amount deposited with various service providers in respect of: Bangladesh Telecommunications Company Ltd (BTCL) 18,500 18,500 Various Mobile Operators 15,000 15,000 Titas Gas Transmission and Distribution Co. Ltd. 459, ,325 Rural Electrification Board (REB) 351, ,989 Central Depository Bangladesh Ltd. 300, ,000 Total Tk. 1,144,814 1,144, INVENTORIES - TK. 42,331,408 This consists of: Raw Materials (Note: 11 - A) 34,369,839 43,628,531 Finished Goods (Note: 11 - B) 7,286,219 11,975,276 Packing Materials (Note: 11 - C) 675, ,034 Total Tk. 42,331,408 56,042,841 Item wise value and quantity of raw materials stock position are given below: (A) RAW MATERIALS - TK. 34,369, Quantity(Kg) Value(Tk.) Quantity(Kg) Value(Tk.) Dyes 23,151 15,213,368 28,955 18,956,843 Chemicals 64,214 6,267, ,726 8,741,935 Grey Polyester Yarn 69,517 12,888,899 67,593 14,814,916 Total 156,882 34,369, ,274 42,513,694 (B) FINISHED GOODS - TK. 7,286,219 Yarn dyeing 9, ,774 3, ,040 Sewing Thread 20,167 6,477,445 29,839 11,388,236 Total 29,260 7,286,219 33,741 11,975,276 (C) PACKING MATERIALS - TK. 675,350 Quantity Value(Tk.) Quantity Value(Tk.) Poly Bag -ST (Kg) 1, , ,045 Plastic Cone (PCs) 78,000 92,539 36,000 41,420 Paper Cone (PCs) 112, , , ,300 Paper Tube (PCs) 6,400 25,600 6,642 26,398 Poly Bag - YD (KG) , ,946 Cartoon - ST (PCs) 2,850 54,798 3,500 65,925 Textile Wax (PCs) 1,360 9,459 2,000 15,000 Total 202, , , ,034 34

36 12. ADVANCE, DEPOSIT & RECEIVABLES - TK. 50,094,371 This consists of: Sundry Receivables 49,213,280 34,442,917 Employee Loans & Advances 881,091 1,410,595 Total Tk. 50,094,371 35,853, CASH AND CASH EQUIVALENTS - TK. 1,478,564 This consists of: (a) Cash in Hand 627, ,055 (b) Cash at Banks in Current Account : Dutch Bangla Bank Ltd. -A/C No , ,618 ICB Islamic Bank Ltd. - A/C No National Bank Ltd. - A/C No ,790 6,630 Sonali Bank Ltd. - A/C No , ,765 United Commercial Bank Ltd. - A/C No ,825 6,550 Total Tk. 1,478, ,967 The bank balances are as per the Bank Statements. 14. ISSUED SHARE CAPITAL - TK. 178,678,000 (a) Authorized Capital: 20,000,000 Ordinary Shares of Tk. 10/- each Tk. 200,000, ,000,000 (b) Issued, Subscribed & Paid-up Capital : 8,438,400 Ordinary Shares of Tk.10/- each fully 84,384,000 84,384,000 paid-up in cash by Sponsors 5,753,302 Ordinary Shares of Tk.10/- each fully 57,533,020 68,389,000 paid-up in cash by General Public 3,676,098 Ordinary Shares of Tk.10/- each fully 36,760,980 25,905,000 paid-up in cash by Institute Total Tk. 178,678, ,678,000 (c) Composition of Shareholdings: No. of Shares No. of Shares Sponsors 8,438,400 8,438,400 General Public 5,753,302 6,838,900 Institute 3,676,098 2,590,500 Total 17,867,800 17,867,800 35

37 (d) Distribution Schedule - Disclosures under the Listing Regulations of Stock Exchanges: The distribution schedule showing the number of shareholders and their shareholdings in percentage has been disclosed below as a requirement of the " Listing Regulations of Dhaka and Chittagong Stock Exchanges": Shareholders' range No. of Shareholders % of Shareholding Number of Shares to 500 2,770 2, ,122,392 1,164, to 5,000 1,020 1, ,980,774 2,110,140 5,001 to 10, , ,380 10,001 to 20, ,083,898 1,015,080 20,001 to 30, , ,000 30,001 to 40, , ,500 40,001 to 50, , ,500 50,001 to 1,00, , ,000 1,00,001 to 10,00, ,328,655 3,185,440 Over 10,00, ,701,400 7,701,400 4,047 4, ,867,800 17,867,800 (e) Performance of Anlima's Shares at Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) during DSE CSE Code Number of shares traded during the year 21,648,472 1,460,514 Price Movements: Highest Lowest Closing Price as on June 30, Market Capitalization 400,238, ,878,380 (f) Voting Rights: The rights and privileges of the shareholders are stated in the Articles of Association of the company. 36

38 15. GENERAL RESERVE - TK. 8,162, The amount carried forward from previous year. 8,162,461 8,162,461 Total Tk. 8,162,461 8,162, DIVIDEND EQUALIZATION RESERVE - TK. 2,802,178 This is arrived at as below: Balance carried from previous year 2,802,178 2,802,178 Total Tk. 2,802,178 2,802, LONG TERM LOAN - TK. 898,202 This is arrived at as below: Opening Balance 3,973,644 11,830,879 Add: Interest Charge during the year 519, ,664 Less: Repayment during the year 3,595,255 8,574,899 Net Loan Balance Tk. 898,202 3,973, SHORT TERM LOAN - TK. 180,693,518 This consists of: Cash Credit, Sonali Bank 155,284, ,843,609 Dhaka Bank (1,700) (5,000) Associates' Current Account 25,410,841 48,368,320 Total Tk. 180,693, ,206,929 * These are secured by first charge on the inventories, second charge on the fixed assets of the company and third charge on Appartments (4444 sft ) at Conifer Tower. The interest rate applied to the loan is 15.50% per annum. 19. LIABILITIES FOR EXPENSES - TK. 10,808,664 This consists of: Accrued Expenses: Sundry Creditors 4,110,043 2,132,431 Salary & Wages Payable 4,485,400 4,041,489 Office Rent Payable 36,000 72,000 Provisions: Provision for Utilities 2,147,221 1,501,865 Provision for Audit Fee 30,000 30,000 Total Tk. 10,808,664 7,777,785 37

39 20. LIABILITIES FOR OTHER FINANCE - TK. 28,275, This represents as below: Provident Fund 303, ,552 Provision for Deferred tax (Note- 21) 17,759,941 17,724,476 Income Tax Payable (Note - 22) 6,420,417 3,601,616 Dividend Payable 2,518,604 3,014,602 Provision for Workers' Profit Participation Fund 1,150,809 1,131,406 Other Liabilities 122, ,965 Total Tk. 28,275,893 25,852, PROVISION FOR DEFERRED TAX- TK. 17,759,941 This represents as below: Amount provided up to ,724,476 17,116,666 Deferred tax provision (Current) 35, ,810 Total 17,759,941 17,724, INCOME TAX PAYABLE- TK. 6,420,417 This represents as below: Opening balance 3,601,616 1,178,363 Provision to be made in current year (Note - 31) 3,453,878 3,395,643 Less : Tax paid during the year (including Advance Income Tax) 635, ,390 Total Tk. 6,420,417 3,601, REVENUE (TURNOVER) FROM SALES - TK. 228,739,935 This is made-up as follows: 1st July, 2014 to 30th June, st July, 2013 to 30th June, 2014 Quantity(Kg) Value(Tk.) Quantity(Kg) Value(Tk.) Yarn Dyeing Charges 913, ,937,964 1,051, ,802,376 Sale of Sewing Thread 237,673 97,801, ,559 83,067,127 Total 1,151, ,739,935 1,253, ,869,503 38

40 24. COST OF SALES - TK. 183,537,272 1st July, 2014 to 1st July, 2013 to 30th June, th June, 2014 This is made-up as follows: Raw Materials Consumed Note ,980,541 84,014,136 Packing Materials Consumed Note ,677,860 6,134,417 Manufacturing Overhead Note ,222,932 68,622,404 Depreciation Note ,966,881 22,341,284 Manufacturing Cost for the year 178,848, ,112,241 Add: Opening Stock of Finished Goods 11,975,277 12,513,124 Cost of Goods available for Sale 190,823, ,625,365 Less: Closing Stock of Finished Goods 7,286,219 11,975,277 Total Tk. 183,537, ,650, RAW MATERIALS CONSUMED - TK. 79,980,541 Item wise value and quantity of Raw Materials consumed: Dyes 11,160,614 14,061,888 Chemicals 18,859,993 28,178,279 Grey Polyester Yarn 49,959,934 41,773,969 Total Tk. 79,980,541 84,014,136 (a) Dyes - Tk. 11,160,614 1st July, 2014 to 30th June, st July, 2013 to 30th June, 2014 Quantity(Kg) Value(Tk.) Quantity(Kg) Value(Tk.) Opening Inventory 28,955 18,956,843 29,854 22,790,768 Add: Purchase 12,399 7,417,139 20,594 10,227,963 Available for use 41,354 26,373,982 50,448 33,018,731 Less: Closing Inventory 23,151 15,213,368 28,955 18,956,843 Consumed 18,203 11,160,614 21,493 14,061,888 (b) Chemicals - Tk. 18,859,993 Opening Inventory 152,726 8,741, ,026 17,128,349 Add: Purchase 457,383 16,385, ,634 19,791,865 Available for use 610,109 25,127, ,660 36,920,214 Less: Closing Inventory 64,214 6,267, ,726 8,741,935 Consumed 545,895 18,859, ,934 28,178,279 (c) Grey Polyester Yarn - Tk. 49,959,934 Opening Inventory 67,593 14,814,916 33,694 7,992,151 Add: Purchase 229,925 48,033, ,554 48,596,734 Available for use 297,518 62,848, ,248 56,588,885 Less: Closing Inventory 69,517 12,888,899 67,593 14,814,916 Consumed 228,001 49,959, ,655 41,773,969 39

41 26. PACKING MATERIALS CONSUMED - TK. 6,677,860 1st July, 2014 to 1st July, 2013 to 30th June, th June, 2014 Opening Inventory 439, ,010 Add: Purchase 6,914,176 6,174,441 Available for use 7,353,210 6,573,451 Less: Closing Inventory 675, ,034 Consumed Tk. 6,677,860 6,134, MANUFACTURING OVERHEAD - TK. 71,222,932 Utilities 8,240,856 8,790,306 Wages & Salaries 36,758,242 31,014,937 Repairs & Maintenance 2,349,202 3,083,322 Insurance Premium 786, ,924 Factory Office Refreshment 399, ,009 Conveyance 49,894 44,412 Factory Telephone & Fax 82,065 75,405 Interest on Working Capital Loan 22,555,899 24,425,089 Total Tk. 71,222,932 68,622, ADMINISTRATIVE EXPENSES - TK. 13,773,473 This is made-up as follows: Depreciation 74,843 88,877 Utilities 155, ,799 Repairs & Maintenance 273, ,066 Fuel Expenses 621, ,900 Salaries, Allowances & Benefits 7,782,409 7,054,669 Employer PF Contribution 1,773,353 1,632,540 Conveyance & Travelling 168, ,925 Office Rent, Rate & Taxes 144, ,000 Telephone, Mobile Bill & 819, ,536 Audit Fee 30,000 30,000 Donation & Subscription 45,800 42,400 Stationery & Consumables 208, ,781 Office Maintenance 583, ,642 Office Refreshment 146, ,453 A.G.M. Expenses 774, ,884 Annual Listing Fee 110, ,000 License Renewal Fee 61,110 68,270 Total Tk. 13,773,473 12,686,742 40

42 29. MARKETING EXPENSES - TK. 3,090,524 1st July, 2014 to 1st July, 2013 to 30th June, th June, 2014 This is made-up as follows: Depreciation 174, ,380 Fuel Expenses 783, ,302 Delivery Expenses 387, ,555 Promotional Expenses 183, ,970 Salaries, Allowances & Benefits 1,369, ,500 Conveyance & Travelling 155,721 69,900 Telephone & Mobile bill 36,000 42,000 Total Tk. 3,090,524 2,503, FINANCING COST - TK. 4,162,003 This is made-up as follows: Bank Charges & Commissions 2,254,877 3,086,783 Bank Interest 1,907,126 6,173,255 Total Tk. 4,162,003 9,260, PROVISION FOR TAXES- TK. 3,489,343 This represents estimated Income Tax Liability for the year as follow Income tax 3,453,878 3,395,643 Deferred tax 35, ,810 3,489,343 4,003, PROFIT APPROPRIATION DURING THE YEAR In accordance with IAS 1 "Presentation of Financial Statements" the appropriation for the year have been reflected in the Statement of Changes in Equity. 33. BASIC EARNINGS PER SHARE (EPS) - Disclosure under IAS 33 "Earnings Per Share" The following reflects the basic earnings per share computation for each of the year ended June 30, 2015 and 2014 (a) Net Profit/(Loss) for the year Tk. 19,536,511 18,634,169 (b) Weighted average number of shares in issue 17,867,800 17,867,800 (c) Basic EPS (a/b) Tk The definition of earnings and weighted average number of shares is stated in note

43 34. PRODUCTION CAPACITY AND ACTUAL PRODUCTION 1st July, 2014 to 1st July, 2013 to 30th June, th June, 2014 a) Installed dyeing capacity (KG) 3,000,000 3,000,000 b) Actual production (KG) 1,146,969 1,239,040 c) Capacity utilization (%) 38.23% 41.30% d) Reason of shortfall Lack of order Lack of order 35. DIVIDEND PAYMENT TK. 18,363,798 This is made-up as follows: Opening 3,014,602 2,996,115 Dividend declared for the year ( ) 17,867,800 17,867,800 Total dividend payable as on ,882,402 20,863,915 Dividend payable as on ,518,604 3,014,602 Dividend paid during the year () 18,363,798 17,849, CONTINGENT LIABILITIES There was no contingent liability as on June 30, CAPITAL EXPENDITURE COMMITMENT There was no capital expenditure commitment as on June 30, CREDIT FACILITY AVAILED There was no credit facility available to the company under any contract as on June 30, 2015, other than trade credit available in the ordinary course of business. 39. RISK AND CONCERNS Export oriented textile industry is subject to a numbers of risks, some of which are: market risk, technological risk, global business environment risk, interest rate risk, industry risk, operational risk and management risk. The magnitude of these risks to the company and management s perception about them are described below: 01. Market Risk Textile and RMG factories have to supply their product to international buyers of different countries at right time, right price with right quality. Any adverse situation in any stage of supply chain can have serious impact on performance of the company. AYDL being the provider of yarn dyeing services to the direct exporters of fabric and RMG, has to suffer less of supply chain risk as major portion of company s production is based on yarn supplied by clients. However, in case of sewing thread the company has to import the gray yarn and process them for selling to RMG factories. In such cases utmost care is taken to minimize out of stock loss, excessive inventory carrying cost or other market risk. This is also applicable for dyes and chemicals procured for dyeing the above mentioned products. 42

44 02. Technological Risk Technological obsolescence is common phenomenon for all productive units. Keeping this in mind the company management always depends on better quality machinery and due preventive maintenance to reduce machine down time cost. 03. Global Business Risk Change in global business environment is a global phenomenon. Any such changes may also have adverse impact on the company s business. As the company is deemed exporter, the impact of global changes has indirect effect on the company also. So the company management through its contingency plan tries to cushion such risks, if any. 04. Interest Rate Risk Fluctuation in bank interest rate affects industrial borrower of term loan and working capital loan. Changes in Government monetary policy has a direct bearing on the interest rates. Recent upward revision of interest rates has also affected the company s operating cost badly. The management being aware of the interest rate burden in such cases has taken policy of reducing the burden through alternative financing opportunities, so far possible. 05. Industry Risk Being in the textile sector the company s performance to a large extent is dependent on offering of quality product and services at right time. With the faster growth of textile sector, the market has become too much competitive. Cut throat competition at times causes price undercut, for which the company has to suffer. As one of the pioneers, the company has built-up a good reputation of offering quality with minimum order lead time, which ultimately helps to win over other competitors. 06. Operational Risk Frequent power failure, labor unrest and increase of raw material price, at times, put the company s operational performance at risk. As the company has its own power generation there is hardly any production interruption for power failure. Given the company s smaller labor force and human resource policy, there is seldom any labor unrest or any other environmental concerns that may affect smooth operation of the company. Moreover the company s assets and raw materials are under insurance coverage for all types of risks, the company may face at the factory level. 07. Management Risk The textile industry of Bangladesh is facing very high turnover of management personnel sometimes causing management vacuum. As the company offers competitive compensation package, manpower turn over is comparatively less with its sound personal policy. In order to cope up with shortage of skilled worker, the management has continuous training and up-gradation program. 40. RELATED PARTY DISCLOSURES Following transaction were carried out with related party in the normal cource of business on arms length basis : Name of Related Parties Nature of Transactions Balance at year end Anlima Textile Limited Short Term loan & Interest there on 25,410,841 43

45 41. FOREIGN CURRENCY EARNED The company as a deemed exporter gets the sales proceeds in taka equivalent of foreign currency. No other foreign currency was earned or received by the company during the year 42. EXPENSES IN FOREIGN CURRENCY During the year, the company incurred the following expenses in foreign currency: FC US $ Taka (a) Purchase of raw materials: Dyes 106,721 7,417,139 Chemicals 235,764 16,385,630 Grey Polyester Yarn 691,135 48,033,917 Total 1,033,621 71,836, COMMISSION, BROKERAGE OR DISCOUNT AGAINST SALES No commission, brokerage or discount was incurred or paid by the company against sales during the year 44. PAYMENT/PERQUISITES TO DIRECTORS AND OFFICERS (a) Directors No payment of money was made by the company for compensating any member of the Board including the Managing Director for special services rendered : (b) Officers This is made-up as follows: Basic Salary 10,395,874 9,105,574 House Rent Allowance 5,197,937 4,552,787 Bonus 1,334,513 1,152,288 Conveyance Allowance 866, ,798 Medical Allowance 866, ,798 Provident Fund Contribution 1,024, ,297 Total Tk. 19,685,485 17,249,542 44

46 45. COMPARATIVE FIGURES Certain comparative figures have been reclassified from statements previously presented to conform to the presentation adopted during the year ended June 30, REPORTING CURRENCY AND LEVEL OF PRECISION The figures in the financial statements represents Bangladesh currency (Taka), which have been rounded off to the nearest Taka except indicated otherwise. 47. APPROVAL OF THE FINANCIAL STATEMENTS These financial statements were authorized for issue in accordance with a resolution of the Company's Board of Directors on October 25, Dhaka October 25, 2015 Hubbun Nahar Hoque Chairperson Mahmudul Hoque Managing Director M. Abul Kalam Mazumdar Chief Financial Officer Ata Khan & Co. Chartered Accountants 45

47 Notes 46

48 Anlima Yarn Dyeing Limited Scan with a QR code reader to find out more about the company REGISTERED OFFICE Suite # 4/3, City Heart 67 Naya Paltan, Dhaka Phone: , , Fax: info@anlima.com Web site: FACTORY Karnapara, Savar, Dhaka Phone: , , Fax: ,