Annual Report

Transcription

1 Annual Report

2 ANLIMA YARN DYEING LIMITED I ANNUAL REPORT Table of Contents Corporate Philosophy 02 Corporate Profile 03 Business & Products 04 Notice of the 19 th AGM 05 Chairperson s Message 06 Directors Report to the Shareholders 09 Report on activities of the Audit Committee 15 CEO & CFO s Declaration to the Board 16 Compliance Report on BSEC s Notification 17 Corporate Governance Compliance Certificate 21 Turnover & Price Movement in DSE & 18 th AGM 22 Five Years Statistics & Value Added Statement 23 Key Performance Indicators 24 Auditors Report 26 Balance Sheet 27 Profit and Loss Account 28 Statement of Changes in Equity 29 Cash Flow Statement 30 Notes to the Financial Statements 31 Proxy Form and Attendance Slip 47

3 ANLIMA YARN DYEING LIMITED I Corporate Philosophy CORPORATE PHILOSOPHY VISION 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. MISSION 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. GOALS 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. VALUES To create better future for the stakeholders maintaining high standards of integrity, propriety and goodwill in shouldering social responsibilities. To assimilate efficient, innovative and stateoftheart technology for developing operational infrastructure and to establish linkages and integrations. To foster conducive environment to groomup productive talents and to build up mutually rewarding relationships with employees, clients and the society based on the highest standard of professionalism. QUALITY POLICY 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 redyeing 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 ANNUAL REPORT

4 CORPORATE PROFILE Company Information REGISTERED OFFICE FACTORY YEAR OF INCORPORATION COMMERCIAL OPERATION PRODUCT LINE AUTHORISED CAPITAL PAIDUP CAPITAL NUMBER OF SHAREHOLDERS STOCK EXCHANGE LISTING PROFESSIONAL MEMBERSHIP NUMBER OF EMPLOYEES Suite # 4/3, City Heart. 67, Naya Paltan, Dhaka Tel: , , Fax: , info@anlima.com Web : Karnapara, Savar, Dhaka1340. Tel: , , Fax: , th October, th March,1998 Yarn Dyeing Services Sewing Thread Tk. 200,000,000 Tk. 178,678,000 4,157 (As on 30 th June, 2014) Dhaka Stock Exchange Limited Chittagong Stock Exchange Limited Bangladesh Textile Mills Association Dhaka Chamber of Commerce and Industry 257 Board of Directors Name Designation Mrs. Hubbun Nahar Hoque Chairperson Mr. Mahmudul Hoque Managing Director Mr. M. Abul Kalam Mazumdar Director Mr. Md. Abul Bashar Director Mr. Akram Khan Independent Director Allied Enterprise (Pvt.) Limited Anlima Buildtech Limited Precision Energy Limited Corporate Profile I ANLIMA YARN DYEING LIMITED Audit Committee Name Designation Mr. Akram Khan Chairman Mr. M. Abul Kalam Mazumdar Member Mr. Md. Abul Bashar Member Auditors M/S Rahman Kashem & Co. Chartered Accountants Management Team Name Designation Mr. Mahmudul Hoque Managing Director Mr. M. Abul Kalam Mazumdar Chief Financial Officer Mr. Sumayel Muhammad Mallik Vice President (Production) Mr. Jabed Murad Vice President (Maintenance) Mr. Mizanur Rahman Chowdhury First Asstt. Vice President (Marketing) Mr. M. Jahangir Alam Company Secretary Sister Concerns Name of the company Type of business Anlima Textile Limited 100% export oriented knitting,dyeing, finishing and garments manufacturing composite unit Developer of commercial buildings and complexes Developer of residential apartments Power Generation ANNUAL REPORT

5 ANLIMA YARN DYEING LIMITED I Business and Products BUSINESS AND PRODUCTS THE BUSINESS Anlima Yarn Dyeing Limited was incorporated in 1995 as a public limited company and set up a yarn dyeing plant equipped with latest stateoftheart 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. PRODUCTS The company s product line consists of: Yarn Dyeing Service for various types of cotton and blended 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 Environmentfriendly echosoft dyes and chemicals Moisture Content: Cotton 67%, PC 4%, CVC 5%, Polyester % Processweight loss: Cotton white 5%, colored 3%, TC/CVC white 4% colored 2%, Polyester 1% Sewing Thread English Count (NE) 20 s/2, 20 s/3, 40 s/2, 40 s/3, 50 s/2, 60 s/2, 60 s/3 High tenacity staple fiber of 1.1 D for knotfree yarn Accurate length wound on plastic cone with airtight polypacking Tippingthread that endures enzyme/hot wash and hypochloride/peroxide bleaching QUALITY The company s products offer unrivaled quality coupled with production economy that makes the company an ultimate choice for textile and garments manufacturers. The key quality features are: Azofree: Azo compound in textile materials are seriously harmful to human health and Anlima s products are Azofree ensuring total safety against that healthhazard. The products are Oeko Tex Standard 100 certified. KnotFree: Knots are detrimental to knitting/sewing speed and productivity. Anlima s thread/yarn are knotless that ensures higher productivity. ColorFastness: Anlima s thread/yarn are colorfast that ensures washing, light, rubbing, bleaching and perspiration fastness. Being absolutely bleachproof, it prevents all chances of colorbleeding or fading of fabrics. ColorMatching: We offer perfect color matching with computerized facility and offer DTM (Dye to Match) service within 72 hours. NeedleSaving: Anlima s products are immaculately processed saving it from becoming hard or sticky and thus avoiding the extra cost in time and needlebreakage during knitting/weaving/sewing. YarnSaving: Weightloss during dyeing in Anlima is only 12% that is 45% 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 ANNUAL REPORT

6 Notice of the 19 th Annual General Meeting I ANLIMA YARN DYEING LIMITED NOTICE OF THE 19 th ANNUAL GENERAL MEETING Notice is hereby given that the 19th Annual General Meeting of the shareholders of Anlima Yarn Dyeing Limited will be held on Tuesday the December 23, 2014 at 10:30 a.m. at the factory premises, Karnapara, Savar to transact the following business: Agenda: 1. To confirm minutes of the 18th Annual General Meeting held on 24th December, To receive, consider and adopt the Profit and Loss Accounts of the Company for the year ended 30th June, 2014 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 cash Tk 1.00 per share (10% ) as recommended by the Board. 5. To appoint Auditors for the year and fix their remuneration. 6. To transact any other business of the company, with permission of the Chair. Date: October 25, 2014 By order of the Board of Directors NOTES M. Jahangir Alam Company Secretary a. The Record Date shall be November 10, 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. ANNUAL REPORT

7 ANLIMA YARN DYEING LIMITED I Chairperson s Message Pqvicvm bi cöwz e`b m vwbz kqvi nvìvie ` Avm&mvjvgy AvjvBKzg, Kv úvbxi DbweskZg evwl K mvaviy mfvq cwipvjbv cl `i c n Z Avwg Avcbv `i mkj K ^vmz Rvwb q A_ eq ii evwl K cöwz e`b Ges wbixw Z wnmve ck KiwQ A_ bwzk cö vcu A_ eqi G evsjv `k A_ bwzkfv e wewea cöwzk~jzvi m ylxb nq ivbv cøvrvi `yn Ubv, ivr bwzk Aw izv, hy³ivóª KZ K wrgmwc evwzj, Mv g UmG ezb e w I Ab vb `vexi Kvi Y kªwgk Am š vl mkj wkqz wgwj q evsjv ` ki U UvBj I e wkí GK P v jä Gi m ylxb nq GZ`&m Z I evsjv ` ki e wkí Lv Z cöe w mv ji 12.71% n Z e w c q mv j 13.83% AwR Z nq Bnvi wecix Z evsjv ` ki mvwe K ißvwb cöe w mv ji 11.28% n Z e w c q mv j 11.69% nq Av jvp mv j bxu m± i ißvwbi cöe w c~e ezx eq ii 10.43% n Z e w c q 15.03% nq Ab w` K I fb m± i cöe w c~e ezx eq ii 14.96% n Z n«vm c q 12.70% nq Av jvp mv j evsjv ` ki gvu e ißvwbi 49.20% bxu m±i n Z AwR Z nq hvnv c~e ezx eq ii 48.69% wqj Av jvp mv j evsjv ` ki gvu ißvwb Avq wqj 3,019 KvwU Wjvi Zb a e Lv Zi ißvwb Avq wqj 2,449 KvwU Wjvi (81%) bxu Ges I fb e Lv Z Av jvp mv j gvu ißvwb Avq h_vµ g c~e ezx mv ji 1,048 I 1,104 KvwU Wjv ii Zzjbvq e w c q Av jvp mv j 1,205 I 1,244 KvwU Wjvi AwR Z nq 06 ANNUAL REPORT

8 Chairperson s Message I ANLIMA YARN DYEING LIMITED Kv úvbxi Kvh µg vbxq I Avš R vwzk e evrv ii Aw izv I Zzgyj cöwz hvwmzvq Kv úvbxi weµq e w i Rb Ae vnz cö Póv m Ë I c~e ezx mv ji D³ weµq AR b m e nqwb Z e Kv úvbxi cwipvjb e q n«vm cö Póvi gva g Avw_ K Ae v gvuvgywu m š vlrbk ch v q ivl Z m g nq fwel r cö vcu wek A_ bxwzi axi MwZ Ges Af š ixb ivr bwzk cö vcu evsjv ` ki U UvBj I e wk íi m vebv K wkqzuv AwbðqZvq dj& ji wek e evrv i evsjv ` ki cöwz ekx I AÎ Dcgnv ` ki Ab vb `kmg~ ni cöwz hvwmzv m Ë I evsjv `k G Ae v KvwU q ißvwb e w Z e cwiki j bxq, wek evrv i cöavb mieivnkvix `k Pxb Gi Drcv`b e q e w I Ab vb Kvi b cöwz hvmx mieivn m gzv n«vm c Z P j Q Px bi GB mxgve Zv I Avš R vwzk A_ bwzk cybi vi Gi MwZ e w evsjv ` ki m vebv D¾ j Kivi Bw½Z enb K i Dcmsnvi Avcbv `i mwµq mn hvwmzv I Av vq AÎ Kv úvbxi e emvwqk Kvh µg e w i gva g wewb qvmkvix `i m ú` e w Z D jøl hvm f~wgkv ivlvi cöz vwk AÎ Kv úvbx `kxq ißvwb Z_v Kg ms vb I wkí m± i D jøl hvm Ae`vb ivl Q Avbwjgv cwiev ii c _ K Avwg m vwbz kqvi nvìvi, MÖvnK, mieivnkvix, e vsk, mikvix cöwzôvb, wbqš YKvix ms v, Kg KZ v I mswkøó Ab mkj K Kv úvbxi Kvh µ g mnvqzv cö`v bi Rb Avš wik ab ev` Rvbvw Q Avgiv Avkv KiwQ h, Avcbv `i KvQ _ K Kv úvbx fwel ZI GKB ikg mnvqzv cv e ûeÿyb bvnvi nk Pqvicvm b wgwjqb gvwk b Wjvi 30,000 25,000 20,000 15,000 10,000 5, evsjv ` ki cvkvk ißvbx (I fb I bxu) eqi Source: 1. World Economic Outlook 2014, IMF 2. Asian Development Outlook 2014, ADB 3. Bangladesh Economic Review 2014, Ministry of Finance 4. Export Promotion Bureau ANNUAL REPORT

9 ANLIMA YARN DYEING LIMITED I Message From The Chairperson MESSAGE FROM THE CHAIRPERSON Dear Shareholders I welcome you all to the nineteenth Annual General Meeting of your company, Anlima Yarn Dyeing Ltd. It is my pleasure to present the Audited Accounts for the year ended 30th June, 2014 alongwith Auditors and Directors Report thereon. Industry Outlook In the financial year Bangladesh faced lot of challenges. Collapse of Rana Plaza, political instability, US scrapping of GSP, fire in garments, workers unrest caused by demand of pay rise and slow down of global economic recovery all these have affected export oriented textile and RMG industry considerably. Despite these adversities, the country s RMG sector registered growth of 13.83% in against 12.71% in As compared to this, the country s overall export growth was 11.69% in from 11.28% of previous year. The growth was higher in knit sector, 15.03% in against 10.43% of previous year. The growth of woven sector declined to 12.70% from 14.96% of previous year. The share of knit sector in total apparel export during the period has increased to 49.20% compared to 48.69% of previous year. The country s export value during the year was US$ billion of which garments share was US$ billion (81%). The total export from knit and woven garments were US$ and US$ billion against US$ and US$ billion of previous year respectively. Company performance In view of the local and international market sluggishness during the year the company had to struggle hard to increase its sales. Despite all out efforts it could succeed only to maintain the sales performance at about the previous years level. Against this backdrop your company took measures to contain operating costs. As a result, the financial performance remained to a satisfactory level. Future Prospects Slow recovery in global economic condition coupled with few incidents in local textile industry has shaken the prospect of Bangladesh textiles and RMG market abroad. As exporters to most competitive global textile markets, where other regional big players have more bargain power, Bangladeshi exporters are apt to convert the threats into opportunities. The most prospective scenario emerging in the global market is that China being one of the major competitors is engulfed into their internal factors that would make them less competitive. As one of the biggest suppliers of the region China s emerging limitations is expected to make Bangladesh s supplies much more prospective in the years to come. Conclusion We are confident that with your support and confidence the company would be able to grow and create value for our shareholders. Our utmost endeavors are there for continuous improvement of the company s performance. The company is also continuing to make contribution to the society through foreign exchange earning and employment generation. It is the society at large that is benefited from these activities. My sincere gratitude to our valued shareholders, for being with us and we are confident to improve the performance and grow to improve shareholders wealth. Our thanks to other stakeholders namely: BSEC, stock exchanges, customers, suppliers, banks, government agencies, employees and all others who are involved in our business process, for their valued cooperation and support for the company. Hubbun Nahar Hoque Chairperson 08 ANNUAL REPORT

10 DIRECTORS' REPORT TO THE SHAREHOLDERS Dear Shareholders Directors' Report to the Shareholders I ANLIMA YARN DYEING LIMITED Assalamu Alaikum On behalf of the Board of Directors and Management of Anlima Yarn Dyeing Limited, I welcome you to the nineteenth Annual General Meeting of the Company. I have the pleasure to enclose herewith the Directors Report together with the Audited Financial Statements of the Company for the year ended June 30, 2014 along with the Auditors Report thereon. These were approved by the Board of Directors on October 25, 2014 which has been 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. Business Outlook As has been reflected in Chairperson s message, the year was very challenging for the company due to collapse of Rana Plaza followed by local political instability and slow global economic recovery that prevailed towards the end of 2013 and first half of The RMG industry faced new compliance scanning imposed by European and other buyers in view of fire and building collapse incidents occurred during the year. The international buyers shaky and cautious approach for buying Bangladesh s garments and textile products caused sluggish demand of company s products. Increased competition from other regional countries have also added to it. In such a situation your company had to reduce the price of the products to grab orders. This, along with aggressive marketing strategy, has helped to recover to some extent towards the end of the financial year. The export earnings during the year slightly reduced from the previous year and as a consequence the profit also reduced. From the fourth quarter of the year foreign buyers activities started to increase and the prospect seems to be good. Productwise Performance The company produces the products as per order of the clients. As such the production depends on the sales orders. Production during the year was 1,239 tons. The company s product mix consists of yarn dyeing and sewing thread and their share in sales during the year were 64% and 36% respectively. The average price realization from yarn dyeing and sewing thread were Tk and Tk per ton as against Tk and Tk per ton respectively of The average sales price for all the products during the year fell by 5% compared to previous year. The turnover from yarn dyeing service was Tk million against Tk million of the previous year. Against this sales the cost of goods sold was Tk million resulting in gross profit of Tk. 31million. In sewing thread, the sales during the year was Tk million against Tk million of previous year. The cost of goods sold for sewing thread was Tk million and gross profit from sewing thread was Tk million. The gross profit per unit (ton) was Tk. 29 and Tk. 86 for yarn dyeing and sewing thread compared to Tk.32 and Tk. 90 of previous year. ANNUAL REPORT

11 ANLIMA YARN DYEING LIMITED I Directors' Report to the Shareholders After deducting the marketing, administrative and financial expense the company s net profit was Tk million and Tk million in yarn dyeing and sewing thread respectively. The previous years net profit was Tk million and Tk million for these products respectively. The details of the productwise revenue, cost and profitability may be seen from the table below. Particulars Yarn Dyeing Sewing Yarn Sewing Total Thread Dyeing Thread (KG) Total Production 1,039, ,168 1,239,040 1,051, ,762 1,260,641 Sales 1,051, ,559 1,253,116 1,043, ,839 1,257,542 Sales Revenue (000 Tk.) 146,802 83, , ,610 89, ,673 Revenue (Tk per kg) Cost of Goods Sold: (000 Tk.) Raw Materials Consumed 53,654 30,360 84,014 56,465 32,738 89,203 Packing Material Consumed 3,918 2,217 6,134 4,388 2,544 6,933 Manufacturing Expenses 43,825 24,798 68,622 43,774 25,380 69,154 Depreciation Expenses 14,268 8,073 22,341 15,101 8,756 23,857 Available for sales 115,664 65, , ,729 69, ,147 Cost of Goods Sold 116,557 65, , ,030 71, ,351 Cost of Goods Sold Per Kg (Tk.) Gross Profit 30,795 17,425 48,219 33,119 19,202 52,322 Gross Profit Per Kg (Tk.) Administrative Expenses 8,102 4,585 12,687 6,784 3,933 10,717 Marketing Expenses 1, ,504 1, ,632 Financing Expenses 5,914 3,346 9,260 6,917 4,011 10,928 Net Profit After Tax 11,900 6,734 18,634 15,356 8,903 24,259 Sales and Profitability Due to lower capacity utilization, caused by poor market response, the revenue earnings during the year slightly declined to Tk. 230 million from Tk. 243 million of previous year. By volume also it declined slightly to 1,253 tons from 1,258 tons of previous year. This has caused both the gross profit and operating profit to decline at higher proportion than the rate of sales decrease. Gross profit during the year has declined to Tk million from Tk million of previous year. The net profit on the other hand declined to Tk million from Tk million of previous year. The company s financial performance between the past four quarters fluctuated mainly due to fluctuation in sales caused due to the reasons mention above. During the first quarter (JulySeptember 13), situation prevailing due to collapse of Rana Plaza and political agitation has caused disruption of sales activity. The cost of sales during the period was also comparatively higher due to change in product mix. The combined effect of these is reduction of Gross Profit, causing the net profit to decline considerably. In the second quarter (OctoberDecember 13), sales slightly increased and due to reduction of cost of sales, gross profit and net profit has increased. In the third quarter (JanuaryMarch 14), in the aftermath of severe political violence and national election, sales did not improve due to foreign buyers shaky activities. With the gradual improvement in political stability the order scenario has improved in fourth quarter (AprilJune 14). The sales therefore increased helping the net profit to increase considerably. The overall sales and profit performance during the year has declined from previous year. 10 ANNUAL REPORT

12 Directors' Report to the Shareholders I ANLIMA YARN DYEING LIMITED Key operating and financial information of the Company for the financial year is furnished below along with previous four years comparative figures. Sales Revenue ( 000 Tk.) Gross Profit ( 000 Tk.) Operating Profit ( 000 Tk.) Net Profit ( 000 Tk.) Retained Earnings Opening balance (000 Tk.) Dividend Equalization Reserve Written Back (000 Tk.) Prior Year Adjustment ( 000 Tk.) Profit Available for Appropriation (000 Tk.) Appropriation Proposed Dividend (000 Tk.) Retained Earnings Carried Forward (000 Tk.) Shareholders Return Net Asset Value (NAV) per Share (Tk.) Earnings per Share (Tk.) Dividend per Share (Tk.) Financial Results and Profit Appropriation ,870 48,219 33,029 18,634 6,763 25, ,673 52,322 38,972 24,259 7,109 (6,737) 24, ,971 50,819 36,130 21,344 3,632 24, ,862 49,303 34,794 20, , ,572 45,314 30,334 15,761 1,287 1,500 18,548 17,868 7, ,868 6, ,868 7, ,868 3, , Profit and its Appropriation The Board of Directors have the pleasure to report the financial results and appropriation account for the year ended 30th June, As may be seen, the company s profit during the year has declined by 23% to Tk million. Adding prior year s retained earnings the distributable profit arrives at million. Contribution to the Economy Textile is Bangladesh s largest foreign exchange earner with 84% of the earnings coming from this sector. The company is proud to make contribution to the national exchequer each year through exports. During the year the company has earned foreign exchange worth US$ 2.96 million. Besides, the company is providing employment opportunity to two hundred fifty seven employees and their families. During the year the company has also made significant contribution to the national exchequer in the form of direct and indirect taxes. Risk and Concerns Bangladesh garments and textile industry is vulnerable to global and domestic adversities and threats. Slow recovery of global economy, coupled with social hazards of local textile industry and political unrest have contributed to considerable business risks. As a deemed exporter the company is dependent upon direct export orders of the sector. The country s exporters being accustomed to such risks have learned how to cope with the situation and have proven their worth so far. So, the Board of Directors assures its shareholders that the company has a competent risk management process to ensure that the system of internal control is sound in design and has been effectively implemented and monitored. The audit committee supports the board in monitoring activities of management and deals with risk management issues also. Being one of the pioneers of the sector the company is confident to minimize the risks and optimize the benefits. Dividend The Board, considering shareholders interest, is pleased to recommend 10% Cash Dividend i.e Tk. 1.0 per share for the year for approval in the Annual General Meeting. ExtraOrdinary Gain or Loss There is no extraordinary gain or loss in the financial statements under report, during the year ended June 30, Related Party Transactions There is no related party transaction during the financial year. ANNUAL REPORT

13 ANLIMA YARN DYEING LIMITED I Directors' Report to the Shareholders Auditors The existing auditors M/S Rahman Kashem & Co, Chartered Accountants, City Heart (3rd Floor), 67, Naya Paltan, Dhaka1000, who were appointed as auditors of the company in the Eighteenth Annual General meeting, carried out the audit for the year ended 30th June 2014 satisfactorily. They have carried out the audit of the company for three consecutive years. They are not eligible for reappointment as per the Bangladesh Securities and Exchange Commission s Notification No. SEC/CMRRCD/ /104/Admin dated July 27, The company received proposal from M/S Ata Khan & Co. Chartered Accountants, 67, Motijheel C/A, Dhaka1000, which was placed in the board meeting. The Board of Directors recommended M/S Ata Khan & Co. Chartered Accountants, 67, Motijheel C/A, Dhaka1000 for appointment as auditors of the company for the year The matter is placed for the approval of the honorable shareholders in the AGM. Audit Committee The Audit Committee held five meetings and attendance of Directors in those meetings are as below: Committee Members Position Attendance Mr. Akram Khan (Independent Director) Chairman 05 Mr. M. Abul Kalam Mazumdar Member 05 Mr. Md. Abul Bashar Member 05 Mr. M. Jahangir Alam Company Secretary 05 The details of the activities of the Audit Committee has been placed in the Audit Committee Report at AnnexureA Statement of Directors on Financial Reports Directors are pleased to report 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) and International Financial Reporting Standards (IFRSs)/ Bangladesh Financial Reporting Standards (BFRSs), as applicable in Bangladesh, have been followed in preparation of the financial statements; e. Internal Control System is sound in design and has been effectively implemented and monitored; and f. There is no significant doubt about the ability of the Company to continue as a going concern. Directors also report that the Managing Director (Chief Executive Officer) and the Chief Financial Officer have certified to the Board that they have reviewed the Financial Statements for the year and to the best of their knowledge and belief: a. The Financial Statements present a true and fair view of the affairs of the Company and are in compliance with existing accounting standards and applicable laws; b. There is no statement which is materially untrue or misleading and there is no omission of facts in such statements; and c. No transaction has been entered into by the Company which are fraudulent, illegal or in violation of the Company s code of conduct. Report of Chief Executive Officer and Chief Financial Officer The Managing Director (Chief Executive Officer) and the Chief Financial Officer have performed their duties as per the roles, responsibilities and duties as detailed by the Board. Their report is placed in AnnexureB Subsidiary Company The company does not have any subsidiary company. 12 ANNUAL REPORT

14 Directors' Report to the Shareholders I ANLIMA YARN DYEING LIMITED Appointment of Director As per the articles 127 and 128 of the Articles of Association of the company Mr. M. Abul Kalam Mazumdar, Director of the company retire by rotation and being eligible, offers himself for reelection as Director of the company. Information of the Director willing to be reelected Mr. M. Abul Kalam Mazumdar, Director of the Company retire by rotation and being eligible, offers himself for reelection as Director. Mr. Mazumdar has been in the Board since He is an MBA from Institute of Business Administration of University of Dhaka and a Fellow of the Institute of Cost and Management Accountants of Bangladesh. He is also a Certified Management Consultants from Australia. Mr. Mazumdar has vast knowledge and experience in corporate sector of Bangladesh. He has been on various national committees like: Bangladesh Bank s Committee for Selection of Country credit rating agencies, privatization Committee of Ministry of Industry, Pharmaceuticals Pricing Committee of Drug Administration etc. Chief Financial Officer, Head of Internal Audit and Company Secretary The Company has appointed Mr. M. Abul Kalam Mazumdar, FCMA, CMC as Chief Financial Officer, Mr. Mohammad Arif Hossain as Head of Internal Audit and Mr. M. Jahangir Alam as Company Secretary of the Company as per requirement of the Bangladesh Securities and Exchange Commission s Corporate Governance Guidelines. Board Meetings and Attendance During the year ended 30th June 2014, seven Board of Directors meeting were held. Attendance of the directors in the meeting were as below: Name of the Directors Position Attendance Mrs. Hubbun Nahar Hoque Chairperson 07 Mr. Mahmudul Hoque Managing Director 07 Mr. M. Abul Kalam Mazumdar Director 07 Mr. Md. Abul Bashar Director 06 Mr. Akram Khan Independent Director 06 Mr. M. Jahangir Alam Company Secretary 07 Remuneration of Directors No payment of remuneration to the Directors including the Managing Director was made during the year for the services rendered by them. The Directors volunteered not to take the remuneration. The details may be seen from Note 42(a) of the Audited Accounts enclosed with this report. Pattern of Shareholding Name of Shareholders i) Parent Company/ Subsidiary/Associated Companies/ Other Related Parties: ii) Directors, Chief Executive Officer, Company Secretary, Chief Financial Officer, Head of Internal Audit and their spouses and minor children: Mr. Mahmudul Hoque Mrs. Hubbun Nahar Hoque Ms. Aniqa Haque Mr. Alwi M. Haque Mr. M. Abul Kalam Mazumdar Mr. Md. Abul Bashar Mr. Md. Abdul Gani Mr. Md. Sarwar Uddin Mrs. Kamrun Nahar Mr. Md. Mansur Uddin Mr. Akram Khan (Independent Director) Chief Financial Officer Company Secretary Head of Internal Auditor iii) Executives (Top five salaried persons other than CEO, CFO, CS, HOIA): iv) Shareholders holding 10% or more voting interest in the company No. of Share Holding Percentage Nil Nil 5,040,900 2,665, , ,000 Nil 2,500 2,500 2,500 2,500 2,500 Nil Nil Nil Nil 28.21% 14.91% 2.01% 2.01% Nil 0.01% 0.01% 0.01% 0.01% 0.01% Nil Nil ANNUAL REPORT

15 ANLIMA YARN DYEING LIMITED I Directors' Report to the Shareholders Corporate Governance Compliance Report The Directors have the pleasure to confirm that the company has complied with all the necessary guidelines issued by the Bangladesh Securities and Exchange Commission s Notification No. SEC/CMRRCD/ /134/Admin/44 dated 7th August, The compliance report is placed in AnnexureC and certificate to this effect is placed in Annexure D Annual General Meeting The Eighteenth Annual General Meeting of Anlima Yarn Dyeing Limited was held on Tuesday the December 24, 2013 at 10:30 a.m. at the factory premises, Karnapara, Savar. The meeting started with recitation from the holy Quran. After recitation the Chairperson requested the Managing Director to conduct the meeting. A total of 103 shareholders attended the meeting. Mr. Mahmudul Hoque, Managing Director of the Company presided over the meeting. Other directors of the company, Mr. M. Abul Kalam Mazumdar, Mr. Md. Abul Bashar and Mr. Akram Khan (Independent Director) were also present in the meeting. The shareholders took part in the discussions that were mostly concentrated regarding the present performance and future prospects of the company. Acknowledgment The Board of Directors record with deep appreciation for the contributions made and support & cooperation given by our valued Shareholders, Customers, Suppliers, Banks, employees, Bangladesh Securities and Exchange Commission, Dhaka Stock Exchange Ltd., Chittagong Stock Exchange Ltd., Central Depository Bangladesh and all others, for their valued cooperation and support for the Company s operation. On behalf of the Board of Directors Mahmudul Hoque Managing Director 14 ANNUAL REPORT

16 Report on the Activities of the Audit Committee I ANLIMA YARN DYEING LIMITED REPORT ON ACTIVITIES OF THE AUDIT COMMITTEE Dear Shareholders, I have the pleasure to present the report of the Audit Committee of Anlima Yarn Dyeing Limited in pursuance to the Corporate Governance Guidelines of Bangladesh Securities and Exchange Commission (BSEC). The brief report on the activities performed by the Audit Committee is placed below: Mr. Akram Khan (Independent Director) Chairman Mr. M. Abul Kalam Mazumdar Member Mr. Md. Abul Bashar Member Constitution of the Committee The Audit Committee was last reconstituted on October 28, 2013 as per Corporate Governance Guidelines of BSEC s Notification No. SEC/CMRRCD/ /134/Admin/44 dated 7th August, Key activities of the Committee are described below. Review of Financial Statements The Audit Committee held its first meeting on October 28, 2013 to review with the management the Annual Financial Statements of the Company for the year and to authorize onward submission of the same to the Board for approval. The Committee thoroughly reviewed the financial statements including detailed explanatory notes on the accounts. The committee also reviewed the related party transactions that were held during the year under consideration. After being satisfied with the notes and accounts the Committee authorized for onward submission to the Board for approval of the Annual Financial Statements. The second meeting of the Committee was held on November 14, 2013 prior to the release of the unaudited First Quarter financial statements of the Company for the year The Committee reviewed the financial progress during the first quarter and examined in detail the reported numbers. Being satisfied the committee unanimously agreed to recommend to the Board for approval of the 1st quarter financial statements. The third meeting was held on January 28, 2014 to review the unaudited Half Yearly financial statements of the Company. The Committee after due review of financial statements of the company during the half year ended recommended the Board to approve issuance of the same to the shareholders of the Company. The fourth meeting of the Committee was held on April 28, 2014 prior to the release of the unaudited Third Quarter financial statements of the company. After detailed review of the financial statements the committee recommended the Board for approval of the financial statements for release to the shareholders. The fifth meeting of the committee was held on October 25, 2014 to review Annual Financial Statements of the Company for the year ended on 30 June The draft financial statements along with detailed explanatory notes were placed before the Committee. Detailed discussions on the financial statements were held with the management of the Company. No material audit observation that warrants for Board s attention was noted. As part of review of the annual accounts of the Company the Committee also thoroughly examined the related party transactions that occurred during The Committee was fully satisfied that the transactions between the related parties were held in the normal course of business and on arm s length basis and adequate disclosure to that effect has been made in the financial statements. The Committee therefore, authorized for onward submission of the Audited Financial Statements to the Board for approval. External Auditor The existing Auditors of the Company M/S Rahman Kashem & Co, Chartered Accountants, City Heart (3rd Floor), 67, Naya Paltan, Dhaka 1000, carried out the audit of the company for three consecutive years. As per the Bangladesh Securities and Exchange Commission s Notification No. SEC/CMRRCD/ /104/Admin dated July 27, 2011 they are not eligible to be reappointed as external auditor for the year The committee after review of the proposal received from M/S Ata Khan & Co. Chartered Accountants, 67, Motijheel C/A, Dhaka1000 made recommendation to the Board for appointment of auditors for the year subject to the approval by the shareholders in 19th Annual General Meeting. Other Activities During the year the Audit Committee reviewed and monitored various activities of the internal audit team. The Committee also reviewed the internal control system and recommended for improvement in order to ensure sound and transparent system. The Committee noted no material deviations or noncompliance or adverse audit finding that warrant for Board or shareholders attention during the period under reviewed. Akram Khan Chairman, Audit Committee ANNUAL REPORT

17 ANLIMA YARN DYEING LIMITED I CEO and CFO s Declaration to the Board AnnexureB October 25, 2014 The Board of Directors Anlima Yarn Dyeing Limited Suite # 4/3, City Heart, 67 Naya Paltan, Dhaka1000. Subject: CEO and CFO s Declaration to the Board. Dear Sir, In accordance with the notification of Bangladesh Securities and Exchange Commission No. SEC/CMRRCD/ /134/Admin/44 dated 7th August, 2012, we declare that for the financial year ended on 30th June, 2014: i) We have reviewed financial statements for the year ended on 30th June, 2014 and to the best of our knowledge and belief: 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. (ii) There are, to the best of knowledge and belief, no transactions entered into by the company during the year which are fraudulent, illegal or violation of the company s code of conduct. Sincerely yours, Mahmudul Hoque Managing Director M. Abul Kalam Mazumdar Chief Financial Officer 16 ANNUAL REPORT

18 Corporate Governance Compliance Report I ANLIMA YARN DYEING LIMITED CORPORATE GOVERNANCE COMPLIANCE REPORT AnnexureC Status of compliance with the conditions imposed by the Bangladesh Securities and Exchange Commission s Notification No. SEC/CMRRCD/ /134/Admin/44 dated 7th August, 2012 issued under section 2CC of the Securities and Exchange Ordinance, 1969 is presented below: (Report under Condition No. 7.00) Condition No Title 1.1 Board size (Board members should not be less than 5 and more than 20) 1.2(i) Independent Director at least 1/5th of the total number of directors of the company 1.2(ii) a) Does not hold any share or holds less then 1% shares of the total paidup shares in the company 1.2(ii) b) Not connected with any sponsor/director/shareholders who holds 1% or more shares of the total paidup 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) year s of the 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 has been appointed by the board of directors and approved for approval by the shareholders in the AGM 1.2(iv) 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 1.3 (i) Independent Directors is Knowledgeable individual with integrity to ensure compliance with financial, regulatory and corporate law and make meaningful contribution to business 1.3 (ii) Experienced and educational background of Independent Directors 1.3 (iii) Special cases for relaxation of qualification of Independent Directors Compliance Status (Put in the appropriate column) Complied Not Complied N/A Remarks (if any) ANNUAL REPORT

19 ANLIMA YARN DYEING LIMITED I Corporate Governance Compliance Report Condition No. Title 1.4 Individual Chairman of the Board and Chief Executive Officer (CEO) 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 extraordinary Gain or Loss 1.5 (vi) Basis for related party transactions 1.5 (vii) Utilization of proceeds from public issues, rights issues and or through any others 1.5 (viii) Explanation if the financial results deteriorated after the company goes for IPO, RPO, Rights Offer, Direct Listing etc. 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 1.5 (xx) Number of Board meetings held during the year and attendance by the Directors 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) Executive 1.5 (xxi) (d) 10% or more voting interest 1.5 (xxii) (a) Resume of the Directors 1.5 (xxii) (b) Expertise in specific functional areas 1.5 (xxii) (c) Holding of directorship and membership of committees of the board other then this company Compliance Status (Put in the appropriate column) Complied Not Complied N/A N/A N/A Remarks (if any) 18 ANNUAL REPORT

20 Corporate Governance Compliance Report I ANLIMA YARN DYEING LIMITED Condition No. 2.1 Appointment of CFO, HIA and CS 2.2 CFO and CS shall attend the meeting of the Board of Directors. 3(i) Audit Committee as the subcommittee 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 (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 (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 (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 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 (ii) (c) Infringement of laws, rules and resolutions Title Compliance Status (Put in the appropriate column) Complied Not Complied N/A Remarks (if any) ANNUAL REPORT

21 ANLIMA YARN DYEING LIMITED I Corporate Governance Compliance Report Condition No. Title (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 (i) Appraisal or valuation services or Fairness opinions 4 (ii) Financial Information Systems design and implementation 4 (iii) BookKeeping or other service related to the accounting and financial statements4 (iv)brokerdealer 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 (i) Compositions of the Board of Directors to be similar to holding company 5 (ii) At least 1(one) independent director to be in both holding and subsidiary company 5 (iii) Submission of Minutes of subsidiary company to the holding company 5 (iv) Review of Minutes of subsidiary company by the holding company 5 (v) Review of Financial Statement by the holding company 6 (i) a) Reviewed the materially untrue statement or omit any material fact of the financial statement 6 (i) b) Reviewed compliance and maintained existing accounting standards 6 (ii) Reviewed about no transaction entered by the company which were fraudulent, illegal or violation of the company s code of conduct 7 (i) Obtain certificate regarding compliance of conditions of Corporate Governance Guidelines 7 (ii) Annexure attached in the Director s Report Compliance Status (Put in the appropriate column) Complied Not Complied N/A N/A N/A N/A N/A Remarks (if any) 20 ANNUAL REPORT

22 Certificate of Compliance of Corporate Governance Guidelines I ANLIMA YARN DYEING LIMITED AnnexureD ATA KHAN & CO. Chartered Accountants 67, Motijheel C/A, Dhaka 1000 CERTIFICATE OF COMPLIANCE OF CORPORATE GOVERNANCE GUIDELINES I have examined compliance to the Corporate Governance of Anlima Yarn Dyeing Limited for the year , as per BSEC Notification no.sec/cmrrcd/ /134/admin/44 dated 7th August I have conducted the review in a manner that has provided me a reasonable basis of evaluating the compliance and expressing my opinion there on. Our examination was limited to the procedures and implementation thereof as adopted by the Management in ensuring compliance to the conditions of Corporate Governance. This is a scrutiny and verification only and not an expression of opinion or audit on the financial statements of the Company. According to the information provided to me by the company, I hereby certify that the company has complied with all the above referred conditions of Corporate Governance guidelines of Bangladesh Securities and Exchange Commission. G.M. Munir Ahmed (FCA) Partner, M/S Ata Khan & Co. ANNUAL REPORT

23 ANLIMA YARN DYEING LIMITED I Turnover and Price Movement in DSE, 18 th AGM TURNOVER AND PRICE MOVEMENT IN DSE & 18 th AGM Turnover and Price movement in DSE Market Price Turnover Turnover (M.Taka) Market Price 22 ANNUAL REPORT

24 Five Years' Statistics & Value Added Statement I ANLIMA YARN DYEING LIMITED Financial Position: Authorized Capital Paid up Share Capital Reserves and Surplus Shareholders' Equity Total Assets Fixed Assets Cost Fixed Assets Carrying Value Net Working Capital Net Profit for the year Results of Operation: Revenue from Sales Gross Profit Margin Operating Profit Net Profit after Tax Earnings per Share Dividend per Share Key Financial Ratios: Current Ratio Inventory Turnover Debtors Turnover Debt Equity Ratio Return on Investment Net Assets Value per Share Market Value of Share (as on 30th June) Dividend Yield Price Book Value Ratio Other Information: Total Shares Total Shareholders Number of Employees FIVE YEARS' STATISTICS 000'Tk 000'Tk 000'Tk 000'Tk 000'Tk 000'Tk 000'Tk 000'Tk 000'Tk 000'Tk. % % % Tk. Tk. Times Times Days Tk. % Tk. Tk. % Times No. No. No , ,678 10, , , , ,979 (145,092) 18, , ,678 35, , , , ,188 (157,22) 24, , ,678 18, , , , ,369 (172,827) 21, , ,678 14, , , , ,281 (192,469) 20, , ,678 11, , , , ,877 (142,354) 15, , % 14.37% 8.11% : : % % ,786,780 4, , % 16.06% 10.00% : : % % ,786,780 4, , % 15.06% 8.89% : : % % ,786,780 4, , % 14.57% 8.72% : : % % ,786,780 4, , % 13.69% 7.11% : : % % ,786,780 4, TURNOVER Purchase of Materials & Services VALUE ADDED SHARING OF VALUE ADDITION To employees (as Wages, Salaries and Other Allowances) To providers of Loan (as Interest and Charges) Retained in the business as Depreciation TOTAL Depreciation 32% VALUE ADDED STATEMENT For the year ended 30th June, Employees 55% Interest 13% ,869, ,199,818 70,669,685 38,772,106 9,260,038 22,637,541 70,669,685 % 100% 55% 13% 32% 100% Depreciation 34% ,672, ,337,035 71,335,558 36,191,471 10,927,657 24,216,430 71,335, Employees 51% % Interest 15% 100% 51% 15% 34% 100% ANNUAL REPORT

25 ANLIMA YARN DYEING LIMITED I Key Performance Indicators KEY PERFORMANCE INDICATORS Sales Raw Materials 39.45% Manufacturing Overhead 29.85% Raw Materials 40.11% Manufacturing Overhead 28.50% Admin & Mrkt. Expenses 6.61% Admin & Mrkt. Expenses 5.50% Financing Expenses 4.03% Financing Expenses 4.50% Depreciation 9.72 Depreciation 9.83 WPPF 0.49% WPPF 0.55% Income Tax 1.74% Income Tax 1.01% Profit 8.11% Profit 10% Where the revenue has gone Employee Productivity ('000 Tk. Per Employee) Fixed Assets Revenue Value Added Net Profit Professional Strength Textile Technologists, 12% BSc Engineers, Dip in Textile, 21% 12% FCMA, 2% MBAs and BBAs, Graduate, 19% 8% Master in IT Professionl, 4% Commerce, 16% MSc, 6% 190, , , , , Shareholders Equity (000 Tk.) , , , , , , , , Market Price of Share (Tk.) Earnings per Share (Tk.) Turnover (000 Tk.) Total Assets (000 Tk.) ,972 34,794 36,130 30,334 33, ,314 49,303 50,819 52,322 48,219 20,821 21,344 15,761 24,259 18, Operating Profit (000 Tk.) Net Asset Value per Share (Tk.) Gross Profit (000 Tk.) Net Profit (000 Tk.) 24 ANNUAL REPORT

26 Financial Report I ANLIMA YARN DYEING LIMITED FINANCIAL REPORT ANNUAL REPORT

27 ANLIMA YARN DYEING LIMITED I Auditors Report to the Shareholders Auditors Report to the Shareholders of Anlima Yarn Dyeing Limited We have audited the accompanying financial statements of Anlima Yarn Dyeing Limited, comprised of Balance Sheet as on June 30, 2014 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 annual report. 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, 2014 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, 2014 Rahman Kashem & Co. Chartered Accountants 26 ANNUAL REPORT

28 BALANCE SHEET As on June 30, 2014 ASSETS Notes NonCurrent Assets 364,123,732 Property, Plant and Equipment Net Book Value 9 362,978,918 Security Deposits 10 1,144,814 Current Assets 92,745,320 Inventories 11 56,042,841 Advance, Deposits & Receivables 12 35,853,512 Cash and Cash Equivalents ,967 TOTAL ASSETS Tk. 456,869,052 Balance Sheet I ANLIMA YARN DYEING LIMITED ,332, ,187,797 1,144, ,133,799 62,129,673 52,653,626 1,350, ,466,410 EQUITY AND LIABILITIES Shareholders' Equity 215,058,077 Issued Share Capital ,678,000 General Reserve 15 8,162,461 Dividend Equalization Reserve 16 2,802,178 Accumulated Profit (as per the Statement of Changes in Equity) 25,415,438 NonCurrent Liabilities 3,973,644 Term Loan 17 3,973,644 Current Liabilities and Provisions 237,837,331 Short Term Loan ,206,929 Liabilities for Expenses 19 7,777,785 Liabilities for Other Finance 20 25,852,617 TOTAL EQUITY AND LIABILITIES Tk. 456,869,052 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, 2014 and signed on its behalf by: 214,273, ,678,000 8,162,461 2,802,178 24,630,582 11,830,879 11,830, ,362, ,655,933 11,797,532 22,908, ,466, As per our report of even date. Dhaka October 25, 2014 Hubbun Nahar Hoque Chairperson Mahmudul Hoque Managing Director M. Abul Kalam Mazumdar Chief Financial Officer Rahman Kashem & Co. Chartered Accountants ANNUAL REPORT

29 ANLIMA YARN DYEING LIMITED I Profit and Loss Account PROFIT AND LOSS ACCOUNT For the year ended 30 June, 2014 Notes 1st July, 2013 to 30th June, 2014 Tk. NET SALES REVENUE ,869,503 Cost of Sales ,650,088 GROSS PROFIT 48,219,415 OPERATING EXPENSES Administrative Expenses 28 12,686,742 Marketing Expenses 29 2,503,607 15,190,349 PROFIT FROM OPERATION 33,029,066 Financing Cost 30 9,260,038 23,769,028 Contribution to Workers' Profit Participation Fund 1,131,406 NET PROFIT BEFORE TAX 22,637,622 Provision for Taxes 31 4,003,453 NET PROFIT AFTER TAX FOR THE YEAR 18,634,169 Basic Earnings Per Share (Par value Tk. 10/) Number of shares used to compute EPS 17,867,800 1st July, 2012 to 30th June, 2013 Tk. 242,672, ,350,836 52,321,757 10,717,120 2,632,187 13,349,307 38,972,449 10,927,657 28,044,792 1,334,932 26,709,860 2,451,073 24,258, ,867,800 Accounting Policies (Note 5). Accompanying notes are integral part of the Financial Statements. Approved by the Board on October 25, 2014 and signed on its behalf by: As per our report of even date. Dhaka October 25, 2014 Hubbun Nahar Hoque Chairperson Mahmudul Hoque Managing Director M. Abul Kalam Mazumdar Chief Financial Officer Rahman Kashem & Co. Chartered Accountants 28 ANNUAL REPORT

30 STATEMENT OF CHANGES IN EQUITY For the year ended 30 June, 2014 Statement of Changes in Equity I ANLIMA YARN DYEING LIMITED Share Capital General Reserve Dividend Equalization Reserve Retained Earnings Total Equity 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 18,634,169 18,634,169 Cash Dividend Payment (201213) Balance as on June 30, 2014 Tk. 178,678,000 8,162,461 2,802,178 (17,849,313) 25,415,438 (17,849,313) 215,058,077 STATEMENT OF CHANGES IN EQUITY For the year ended June 30, 2013 Share Capital General Reserve Dividend Equalization Reserve Retained Earnings Total Equity Balance as on June 30, 2012 Tk. 178,678,000 8,162,461 2,802,178 7,108, ,751,570 Net Profit for the year transferred from Profit and Loss Account 24,258,787 24,258,787 Prior year Deferred tax provision Balance as on June 30, 2013 Tk. 178,678,000 8,162,461 2,802,178 (6,737,136) 24,630,582 (6,737,136) 214,273,221 Figures in bracket indicate deductions. Accompanying notes are integral part of the Financial Statements. Approved by the Board on October 25, 2014 and signed on its behalf by: As per our report of even date. Dhaka October 25, 2014 Hubbun Nahar Hoque Chairperson Mahmudul Hoque Managing Director M. Abul Kalam Mazumdar Chief Financial Officer Rahman Kashem & Co. Chartered Accountants ANNUAL REPORT

31 ANLIMA YARN DYEING LIMITED I Cash Flow Statement CASH FLOW STATEMENT For the year ended 30 June, st July, 2013 to 30th June, 2014 Cash Flow from Operating Activities: Cash Collection from Customers Tk. 246,669,617 Cash Payment for Cost and Expenses (173,354,507) Cash Generated from Operations 73,315,110 Interest paid (9,260,038) Income Tax Paid (972,390) Net Cash Generated from Operations 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 (344,454) Net Cash Used in Investing Activities (3,428,663) Cash Flow from Financing Activities: Short Term Loan Repayment (34,449,004) Long Term Loan Repayment (7,857,235) Payment of Dividend (17,849,313) Net Cash Generated from Financing Activities (60,155,552) Net Increase/(Decrease) in Cash & Cash Equivalent (501,533) Cash & Cash Equivalent at the beginning of year 1,350,500 Cash & Cash Equivalent at the closing of year Tk. 848,967 1st July, 2012 to 30th June, 2013 Tk. 259,017,581 (172,140,035) 86,877,546 (10,927,657) (35,000) 75,914,889 (35,000) (35,000) (35,204,886) (26,104,299) (17,594,141) (78,903,325) (3,023,436) 4,373,936 Tk. 1,350,500 Net Operating Cash Flow per Share Figures in bracket indicate deductions. Accompanying notes are integral part of the Financial Statements. Approved by the Board on October 25, 2014 and signed on its behalf by: Tk Tk As per our report of even date. Dhaka October 25, 2014 Hubbun Nahar Hoque Chairperson Mahmudul Hoque Managing Director M. Abul Kalam Mazumdar Chief Financial Officer Rahman Kashem & Co. Chartered Accountants 30 ANNUAL REPORT

32 ANLIMA YARN DYEING LIMITED Notes to the Financial Statements For the year ended on June 30, 2014 Notes to the Financial Statements I 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 257 employees as of June 30, 2014 (259 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. 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 nonrefundable taxes. In respect of major projects involving construction, related preoperational expenses form part of the value of asset capitalized. Expenses capitalized also include applicable borrowing cost considering the requirement of BAS 23 Borrowing Costs. 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. ANNUAL REPORT

33 ANLIMA YARN DYEING LIMITED I Notes to the Financial Statements 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 predetermined 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 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 timeweighting factor. The timeweighting factor is the numbers of days the specific shares are outstanding as a proportion of the total number of days in the period. 32 ANNUAL REPORT

34 Notes to the Financial Statements I ANLIMA YARN DYEING LIMITED 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. ANNUAL REPORT

35 ANLIMA YARN DYEING LIMITED I Notes to the Financial Statements 9. PROPERTY, PLANT & EQUIPMENT TK. 362,978,918 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: (Amount in Taka) Description Cost as at June 30, 2013 Addition during the year Disposal during the year Cost as at June 30, 2014 Accumulated Depreciation as June 30, 2013 Written Down Value as at June 30,2013 Rate of depreciation Charged during the year Accumulated Depreciation as June 30, 2014 Written Down Value as at June 30, 2014 Land and Land Development Factory Building and Civil Construction Plant and Machinery Electrical Installation Furniture and Fixture Office Equipment Vehicle Total 20,092,587 20,092,587 20,092,587 20,092,587 69,120,752 84,708 69,205,460 15,226,185 53,894, % 1,347,823 16,574,008 52,631, ,319,394 2,999, ,318, ,695, ,623, % 20,337, ,032, ,286,032 7,094,539 7,094,539 5,975,457 1,119, % 223,816 6,199, ,266 14,000,710 19,034 14,019,744 12,120,201 1,880, % 376,990 12,497,191 1,522,553 6,882, ,000 6,982,154 5,852,028 1,030, % 215,525 6,067, ,601 4,353, ,420 4,578,647 3,805, , % 136,252 3,942, , ,863,363 3,428, ,292, ,675, ,187,797 22,637, ,313, ,978,918 The depreciation charges during the year has been allocated in the Profit and Loss Account as below: Head of Accounts Factory Building Plant & Machinery Electrical Installation Furniture & Fixture (Amount in Taka) Equipment Vehicle Total Cost of Sales 1,347,823 20,337, , , , ,252 22,341,284 Administrative 56,549 32,329 88,877 Marketing 131,947 75, ,380 Total 1,347,823 20,337, , , , ,252 22,637, ANNUAL REPORT

36 Notes to the Financial Statements I ANLIMA YARN DYEING LIMITED 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 Various Mobile Operators 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, ,500 15, , , ,000 1,144, INVENTORIES TK. 56,042,841 This consists of: Raw Materials (Note: 11 A) 42,513,694 Finished Goods (Note: 11 B) 11,975,276 Packing Materials (Note: 11 C) 439,034 Raw Materials in Transit Workin Process 1,114,837 Total Tk. 56,042,841 47,911,268 12,513, ,010 3,040 1,303,231 62,129,673 Item wise value and quantity of raw materials stock position are given below: (A) Raw Materials Tk. 42,513, Quantity(Kg) Value(Tk.) Dyes 28,955 18,956,843 Chemicals 152,726 8,741,935 Grey Polyester Yarn 67,593 14,814,916 Total 249,274 42,513, Quantity(Kg) Value(Tk.) 29,854 22,790, ,026 17,128,349 33,694 7,992, ,574 47,911,268 (B) Finished Goods Tk. 11,975,276 Yarn dyeing 3, ,040 Sewing Thread 29,839 11,388,236 Total 33,741 11,975,276 15,587 1,480,115 32,230 11,033,009 47,817 12,513,124 ANNUAL REPORT

37 ANLIMA YARN DYEING LIMITED I Notes to the Financial Statements (C) Packing Materials Tk. 439,034 Quantity Value(Tk.) Poly Bag ST (Kg) ,045 Plastic Cone (Pcs) 36,000 41,420 Paper Cone (Pcs) 104, ,300 Paper Tube (Pcs) 6,642 26,398 Poly Bag YD (Kg) ,946 Cartoon ST (Pcs) 3,500 65,925 Textile Wax (Pcs) 2,000 15,000 Total Tk. 153, ,034 Quantity Value(Tk.) 98, ,329 54,000 74,882 11,993 46, ,771 2,600 49,548 2,800 21, , , ADVANCES, DEPOSITS & RECEIVABLES TK. 35,853, This consists of: Sundry Receivables 34,442,917 Employee loans & Advances 1,410,595 Total Tk. 35,853,512 51,770, ,250 52,653, CASH AND CASH EQUIVALENTS TK. 848,967 This consists of: (a) Cash in Hand 131, ,729 (b) Cash at Banks in Current Account Dutch Bangla Bank Ltd.A/C No , ,569 ICB Islamic Bank Ltd. A/C No ,154 National Bank Ltd. A/C No ,630 7,550 Sonali Bank Ltd. A/C No , ,374 United Commercial Bank Ltd. A/C No ,550 7,125 Total Tk. 848,967 The bank balances are as per the Bank Statements. 1,350, ANNUAL REPORT

38 Notes to the Financial Statements I ANLIMA YARN DYEING LIMITED 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 & Paidup Capital : 8,438,400 Ordinary Shares of Tk.10/ each fully paidup in cash by Sponsors 6,838,900 Ordinary Shares of Tk.10/ each fully paidup in cash by General Public 2,590,500 Ordinary Shares of Tk.10/ each fully paidup in cash by Institute 25,905,000 Total Tk. 178,678,000 84,384,000 84,864,000 68,389,000 73,674,700 20,139, ,678,000 (c) Composition of Shareholdings: Sponsors No. of Shares 8,438,400 General Public 6,838,900 Institute 2,590,500 Total No. 17,867,800 No. of Shares 8,486,400 7,367,470 2,013,930 17,867,800 ANNUAL REPORT

39 ANLIMA YARN DYEING LIMITED I Notes to the Financial Statements (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 2,798 2, ,164,360 1,253, to 5,000 1,111 1, ,110,140 2,378,140 5,001 to 10, , ,180 10,001 to 20, ,015, ,780 20,001 to 30, , ,000 30,001 to 40, , ,500 40,001 to 50, , ,500 50,001 to 1,00, ,000 1,015,000 1,00,001 to 10,00, ,185,440 2,781,940 Over 10,00, ,701,400 7,701,400 4,157 4, ,867,800 17,867,800 (e) Performance of Anlima's Shares at Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) during Code Number of shares traded during the year Price Movements: Highest (Tk.) Lowest (Tk.) Closing Price as on June 30, 2014 (Tk.) Market Capitalization (Tk.) DSE CSE ,094,580 2,717, ,532, ,959,400 (f) Voting Rights: The rights and privileges of the shareholders are stated in the Articles of Association of the company. 38 ANNUAL REPORT

40 Notes to the Financial Statements I ANLIMA YARN DYEING LIMITED 15. GENERAL RESERVE TK. 8,162, The amount carried forward from previous year. 8,162,461 Total Tk. 8,162, ,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 Total Tk. 2,802,178 2,802,178 2,802, LONG TERM LOAN TK. 3,973,644 This is arrived at as below: Opening Balance Add: Interest Charge during the year Less: Repayment during the year Net Loan Balance 11,830,879 37,935, ,664 3,165,458 8,574,899 29,269,757 Tk. 3,973,644 11,830, SHORT TERM LOAN TK. 204,206,929 This consists of: Cash CreditHypothecation, Sonali Bank 155,843,609 Dhaka Bank (5,000) Associates' Current Account 48,368,320 Total Tk. 204,206, ,055,110 10,731,930 71,868, ,655,933 * 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. ANNUAL REPORT

41 ANLIMA YARN DYEING LIMITED I Notes to the Financial Statements 19. LIABILITIES FOR EXPENSES TK. 7,777,785 This consists of: Accrued Expenses: Sundry Creditors ,132,431 Salary & Wages Payable 4,041,489 Office Rent Payable 72,000 Provisions: Provision for Utilities 1,501,865 Provision for Audit Fee 30,000 Total Tk. 7,777, LIABILITIES FOR OTHER FINANCE TK. 25,852, ,956,223 4,537, ,430 1,869,480 30,000 11,797,532 This represents as below: Provident Fund 278,552 Provision for Deferred tax (Note21) 17,724,476 Income Tax Payable (Note22) 3,601,616 Dividend Payable 3,014,602 Provision for Workers' Profit Participation Fund 1,131,406 Other Liabilities 101,965 Total Tk. 25,852, ,410 17,116,666 1,178,363 2,996,115 1,334,932 29,359 22,908, PROVISION FOR DEFERRED TAX TK. 17,724,476 This represents as below: Amount provided up to Net Provision from Retained Earnings Deferred tax provision (Current) Total 17,116, ,810 17,724,476 9,141,820 6,737,136 1,237,710 17,116, ANNUAL REPORT

42 Notes to the Financial Statements I ANLIMA YARN DYEING LIMITED 22. INCOME TAX PAYABLE TK. 3,601,616 This represents as below: Opening balance Provision to be made in current year's (Note31) ,178,363 3,395, ,213,363 Tax paid during the year (including Advance Income Tax) 972,390 35,000 Total Tk. 3,601,616 1,178, REVENUE (TURNOVER) FROM SALES TK. 229,869,503 This is madeup as follows: 1st July, 2013 to 30th June, 2014 Quantity(Kg) Value(Tk.) Yarn Dyeing Charges 1,051, ,802,376 Sale of Sewing Thread 201,559 83,067,127 Total 1,253, ,869,503 1st July, 2012 to 30th June, 2013 Quantity(Kg) Value(Tk.) 1,043, ,610, ,839 89,062,299 1,257, ,672, COST OF SALES TK. 181,650,088 1st July, 2013 to This is madeup as follows: 30th June, 2014 Raw Materials Consumed Note 25 84,014,136 Packing Materials Consumed Note 26 6,134,417 Manufacturing Overhead Note 27 68,622,404 Depreciation Note 09 22,341,284 Manufacturing Cost for the year 181,112,241 Add: Opening Stock of Finished Goods 12,513,124 Cost of Goods available for Sale 193,625,365 Less: Closing Stock of Finished Goods 11,975,277 Total Tk. 181,650,088 1st July, 2012 to 30th June, ,203,274 6,932,532 69,153,898 23,856, ,146,679 13,717, ,863,960 12,513, ,350,836 ANNUAL REPORT

43 ANLIMA YARN DYEING LIMITED I Notes to the Financial Statements 25. RAW MATERIALS CONSUMED TK. 84,014,136 Item wise value and quantity of Raw Materials consumed: 1st July, 2013 to 30th June, 2014 Dyes 14,061,888 Chemicals 28,178,279 Grey Polyester Yarn 41,773,969 Total Tk. 84,014,136 1st July, 2012 to 30th June, ,807,763 35,420,006 39,975,505 89,203,274 (a) Dyes Tk. 14,061,888 1st July, 2013 to 30th June, 2014 Quantity(Kg) Value(Tk.) Opening Inventory 29,854 22,790,768 Add: Purchase 20,594 10,227,963 Available for use 50,448 33,018,731 Less: Closing Inventory 28,955 18,956,843 Consumed 21,493 14,061,888 1st July, 2012 to 30th June, 2013 Quantity(Kg) Value(Tk.) 30,250 23,078,341 17,676 13,520,190 47,926 36,598,531 29,854 22,790,768 18,072 13,807,763 (b) Chemicals Tk. 28,178,279 1st July, 2013 to 30th June, 2014 Quantity(Kg) Value(Tk.) Opening Inventory 187,026 17,128,349 Add: Purchase 458,634 19,791,865 Available for use 645,660 36,920,214 Less: Closing Inventory 152,726 8,741,935 Consumed 492,934 28,178,279 1st July, 2012 to 30th June, 2013 Quantity(Kg) Value(Tk.) 202,027 18,439, ,793 34,108, ,820 52,548, ,026 17,128, ,794 35,420, ANNUAL REPORT

44 Notes to the Financial Statements I ANLIMA YARN DYEING LIMITED (c) Grey Polyaester Yarn Tk. 41,773,969 1st July, 2013 to 30th June, 2014 Quantity(Kg) Value(Tk.) Opening Inventory 33,694 7,992,151 Add: Purchase 202,554 48,596,734 Available for use 236,248 56,588,885 Less: Closing Inventory 67,593 14,814,916 Consumed Tk. 168,655 41,773,969 1st July, 2012 to 30th June, 2013 Quantity(Kg) Value(Tk.) 48,375 11,621, ,081 36,346, ,456 47,967,656 33,694 7,992, ,762 39,975, PACKING MATERIALS CONSUMED TK. 6,134, ADMINISTRATIVE EXPENSES TK. 12,686,742 1st July, 2013 to 30th June, 2014 Opening Inventory 399,010 Add: Purchase 6,174,441 Available for use 6,573,451 Less: Closing Inventory 439,034 Consumed Tk. 6,134, MANUFACTURING OVERHEAD TK. 68,622,404 This is madeup as follows: 1st July, 2013 to 30th June, 2014 Utilities 8,790,306 Wages & Salaries 31,014,937 Repairs & Maintenance 3,083,322 Insurance Premium 786,924 Factory Office Refreshment 402,009 Conveyance 44,412 Factory Telephone & Fax 75,405 Interest on Working Capital Loan 24,425,089 Total Tk. 68,622,404 1st July, 2012 to 30th June, ,902 6,853,640 7,331, ,010 6,932,532 1st July, 2012 to 30th June, ,296,679 30,209,008 3,356,380 1,004, ,345 22,789 97,276 24,801,826 69,153,898 This is madeup as follows: 1st July, 2013 to 30th June, 2014 Depreciation 88,877 Utilities 154,799 Repairs & Maintenance 184,066 Fuel Expenses 454,900 Salaries, Allowances & Benefits 7,054,669 Employer PF Contribution 1,632,540 Conveyance & Travelling 189,925 Office Rent, Rate & Taxes 144,000 Telephone, Mobile Bill & 799,536 Audit Fee 30,000 Donation & Subscription 42,400 Stationery & Consumables 257,781 Office Refreshment 386,642 Office Maintenance 132,453 A.G.M. Expenses 955,884 Annual Listing Fee 110,000 License Renewal Fee 68,270 Total Tk. 12,686,742 1st July, 2012 to 30th June, , , , ,439 5,273,873 1,666, , , ,825 30,000 49, ,914 94, , , ,000 69,920 10,717,120 ANNUAL REPORT

45 ANLIMA YARN DYEING LIMITED I Notes to the Financial Statements 29. MARKETING EXPENSES TK. 2,503,607 This is madeup as follows: 1st July, 2013 to 30th June, st July, 2012 to 30th June, 2013 Depreciation 207, ,727 Fuel Expenses 537, ,004 Delivery Expenses 348, ,680 Promotional Expenses 595, ,481 Salaries, Allowances & Benefits 702, ,590 Office Refreshment 80 3,915 Conveyance & Travelling 69,820 70,022 Telephone & Mobile bill 42,000 38,768 Total Tk. 2,503,607 2,632, FINANCING COST TK. 9,260,038 This is madeup as follows: Bank Charges & Commissions 3,086,783 Bank Interest 6,173,255 Total Tk. 9,260, PROVISION FOR TAXES TK. 4,003,453 This represents estimated Income Tax Liability for the year as follows: 1,453,783 9,473,874 10,927,657 Income tax 3,395,643 1,213,363 Deferred tax 607,810 1,237,710 Tk. 4,003,453 2,451, 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, 2014 and 2013 (a) Net Profit/(Loss) for the year Tk. 18,634,169 (b) Weighted average number of shares in issue 17,867,800 (c) Basic EPS (a/b) Tk ,258,787 17,867, The definition of earnings and weighted average number of shares is stated in note PRODUCTION CAPACITY AND ACTUAL PRODUCTION a) Installed dyeing capacity (Ton) b) Actual production (KG) c) Capacity utilization (%) d) Reason of shortfall 3,000,000 1,239, % Lack of order 3,000,000 1,260, % Lack of order 35. DIVIDEND PAYMENT TK. 17,849,313 This is madeup as follows: Opening 2,996,115 2,722,456 Dividend declared for the year ( ) 17,867,800 17,867,800 Total dividend payable as on ,863,915 20,590,256 Dividend payable as on ,014,602 2,996,115 Dividend paid during the year ( ) 17,849,313 17,594, CONTINGENT LIABILITIES There was no contingent liability as on June 30, CAPITAL EXPENDITURE COMMITMENT There was no capital expenditure commitment as on June 30, ANNUAL REPORT

46 Notes to the Financial Statements I ANLIMA YARN DYEING LIMITED 38. CREDIT FACILITY AVAILED There was no credit facility available to the company under any contract as on June 30, 2014, other than trade credit available in the ordinary course of business. 39. FOREIGN EXCHANGE EARNED The company had deemed export and as such no foreign exchange was earned against sales. No other foreign exchange was earned or received by the company during the year EXPENSES IN FOREIGN CURRENCY During the year, the company incurred the following expenses in foreign currency: (a) Purchase of raw materials: FC US $ Taka Dyes 147,165 10,227,963 Chemicals 284,775 19,791,865 Grey Polyester Yarn 699,234 48,596,734 Total 1,131,174 78,616, COMMISSION, BROKERAGE OR DISCOUNT AGAINST SALES No commission, brokerage or discount was incurred or paid by the company against sales during the year 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 madeup as follows: Basic Salary 9,105,574 House Rent Allowance 4,552,787 Bonus 1,152,288 Conveyance Allowance 758,798 Medical Allowance 758,798 Provident Fund Contribution 921,297 Total Tk. 17,249, ,422,958 5,211,479 1,299, , , ,338 19,512, 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. 45. 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, Accompanying notes are integral part of the Financial Statements.Approved by the Board on October 25, 2014 and signed on its behalf by: As per our report of even date. Dhaka October 25, 2014 Hubbun Nahar Hoque Chairperson Mahmudul Hoque Managing Director M. Abul Kalam Mazumdar Chief Financial Officer Rahman Kashem & Co. Chartered Accountants ANNUAL REPORT

47 Notes

48 Scan with a QR code reader to find out more about the company REGISTERED OFFICE Anlima Yarn Dyeing Ltd. Suite # 4/3, City Heart, 67, Naya Paltan, Dhaka 1000, Phone: , , Fax: , info@anlima.com Web : FACTORY Karnapara, Savar, Dhaka1340 Phone: , , Fax: , design & concept : MMMA Zakaria, FH Juyel I Printing : ZOAT/info@zoat.com.bd