Availability of the Prospectus Name and Address of the Auditor
Prospectus Far East Knitting & Dyeing Industries Limited
Content
Glossary
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SECTION I Statutory Condition PART-A 9
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PART-B wmwkdwiwur I G PÄ Kwgkb (myweav fvmx e emv wbwl KiY) wewagvjv 1995 12
PART-C PART-D 13
SECTION II 01 Declaration & Due Diligence Certificates 14
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SECTION III Risk Factors & Management Perception 17
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SECTION IV Issue Size & Purpose of the Public Offering 23
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SECTION V Information about the Company 25
Monsur Traders Chemicals Bangladesh 7,700,000 0.64% Depro Colours & Shades Chemicals Bangladesh 2,970,950 0.25% Others 690,503,179 57.58% 26
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- (926,801) 29
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SECTION VI Description of Property Figures in BDT (as per audit report) 30 June 2013 30 June 2012 30 June 2011 31
SECTION VII Plan of Operation & Discussion of Financial Condition 32
Figures in BDT (As per audit report) For the year ended 30-Jun-2013 For the year ended 30-Jun-2012 For the year ended 30-Jun-2011 33
2013-2014 Return submission is under process 2012-2013 2011-2012 2010-2011 2009-2010 As per certifi cate issued by Deputy Commissioner of Taxes dated 10 January 2013, Far East Knitting & Dyeing Industries Limited is a registered Assessee of Companies Circle 309, Taxes Zone 15, Dhaka. The company has submitted the return for the assessment year 2012-2013. The assessment has been completed under section 82BB and taxes paid in full. As per certifi cate issued by Deputy Commissioner of Taxes dated 3 January 2012, Far East Knitting & Dyeing Industries Limited is a registered Assessee of Companies Circle 3, Taxes Zone 1, Dhaka. The company has submitted the return for the assessment year 2011-2012. The assessment has been completed under section 82BB and taxes paid in full. As per certifi cate issued by Deputy Commissioner of Taxes dated 23 May 2011, Far East Knitting & Dyeing Industries Limited is a registered Assessee of Companies Circle 3, Taxes Zone 1, Dhaka. The assessment of the Assessee has been completed for the assessment year 2010-2011 and taxes paid in full. As per certifi cate issued by Deputy Commissioner of Taxes dated 11 July 2010, Far East Knitting & Dyeing Industries Limited is a registered Assesse of Companies Circle 3, Taxes Zone 1, Dhaka. The assessment of the Assessee has been completed for the assessment year 2009-2010 and taxes paid in full. 34
2008-2009 As per certifi cate issued by Deputy Commissioner of Taxes dated 5 July 2009, Far East Knitting & Dyeing Industries Limited is an Assesse of Companies Circle 3, Taxes Zone 1, Dhaka. The assessment of the assessee company has been completed for the assessment year 2008-2009 and taxes for the relevant year paid in full. The company has an operating lease agreement with respect to rental of its corporate offi ce and registered offi ce. Detail of the lease agreements are as follow: Particulars Lease Agreement for Registered Office Lessor: Mr. Rashed Ahmed Chowdhury Mr. Rashed Ahmed Chowdhury Leasee: Far East Knitting & Dyeing Industries Limited Far East Knitting & Dyeing Industries Limited Date of Lease Agreement June 23, 2009 June 10, 2004 Effective Date of Tenancy July 1, 2009 July 1, 2004 Period of Lease 5 Years 5 Years Date of Lease Expiration May 31, 2014 June 30, 2009 35
Particulars Description of Leased Asset Lease Rent Renewal Clause 2,200 square feet of fl oor space on the south side of the 3 rd fl oor of Bilquis Tower, Plot 6 (new), 2 nd Circle, Gulshan, Dhaka 1212. BDT 28 (twenty eight) per square feet totaling to BDT 61,600 per month. Lease rent will automatically increase at the rate of 10 percent after completion of fi rst three years Lease Agreement for Registered Office 2,200 square feet of fl oor space on the south side of the 3 rd fl oor of Bilquis Tower, Plot 6 (new), 2 nd Circle, Gulshan, Dhaka 1212. BDT 14 (fourteen) per square feet totaling to BDT 30,800 per month. Lease rent will automatically increase at the rate of 10 percent after completion of fi rst three years 36
Description Basis of Fees Amount in BDT 37
Particulars Revaluation Conducted on Cut-off Date of 30 June 2010 Revaluation Conducted on Cut-off Date of 30 June 2011 Valuer s Name Tista Surveyors Saha Mazumdar & Co. Chartered Accountants Valuer s Address Date of Valuation Report Signing Cut-off Date of Revaluation Purpose of Revaluation Nature of revalued assets Mouza Value of per Decimal Land Market Value of per Decimal Land Value of fixed assets before revaluation Value of fixed assets after revaluation Revaluation Surplus [please see note (a) and (b) below for the detail calculation] Name and Qualification of Valuation Team Members Notable Valuation Works Done by the Valuer Gulistan Complex, 2 B.B. Avenue, Level 9, Dhaka 1000 25 August 2010 8 August 2011 30 June 2010 30 June 2011 To ascertain net worth of the company Building, land, plant & machinery BDT 16,000 BDT 26,000 BDT 500,000 BDT 560,000 21, Purana Paltan Line (4th & top fl oor), Dhaka 1000 To comply with BSEC notifi cation dated 29 December 2010 (Reference No. SEC/ CMRRCD/2009-193/81/Admin) Building, land, plant & machinery BDT 585,812,196 BDT 559,577,827 BDT 623,007,775 BDT 894,571,399 BDT 37,195,579 BDT 334,993,572 1. Eng. Sahfi qur Islam- B.Sc. Eng.(BUET) 2. Md. Kamal Uddin- M. Sc. 3. Tasneem Akther- B.Sc. EEE (NSU) 4. Monir Hossain- Diploma in Engineering 5. Md. Ommar Faruque- B.Sc. 6. Md. Muzahid Ullah- B.B.S. 7. Md. Giashuddin Ahmed- B.A 1. Antim Composite Ltd. 2. Delta Spinning Mill Ltd. 3. Dird Composite Ltd. 4. Faria Knittex Ltd 5. MM. Composit Knit. Ltd 6. Mozart Knit. Ltd. 7. Neo Zipper Ltd 8. Olympic Apparels Ltd. 9. Quality Milk Ltd. 10. Chittagong Denim Ltd 11. The Acme Specialized Pharmaceuticals 12. M.A. Matin Cotton Mills Ltd. 1. Mr. Nasir U Ahmed- FCA, FCS 2. Ms. Jeenat Jahan Dipty- FCA, CFC 3. Khandaker Golam Mostafa- BSC Eng. Civil (BUET)- Chief Surveyor 4. Khandaker Nazrul Islam- BSC Eng. Civil (BUET) 5. Md. Misbah Uddin- BSC Eng. Civil (BUET) 1. Galfra Habib Ltd. Chittagong 2. Securities Broking & Management Services Ltd. 38
Group of Fixed Assets Depreciated historical cost/taka Depreciated current cost/taka Revaluation Surplus Building & Civil Works 210,353,767 321,777,104 111,423,337 Generator 24,199,993 25,154,082 954,089 Land and Land development 50,331,386 205,170,000 154,838,614 Plant & Machinery 257,375,266 322,134,255 64,758,989 Plant & machinery (Printing) 7,785,700 9,351,100 1,565,400 Washing Machinery 4,020,463 4,998,726 978,263 Water & Steam Line 3,705,002 3,818,378 113,376 Effl uent Treatment Plant 1,806,250 2,167,755 361,505 Total 559,577,827 894,571,399 334,993,572 39
Particulars of Allotment Date of Allotment Number of Shares Issued Cash Bonus Other than cash Amount of Shares Capital (BDT) First ( Subscription to the Memorandum & Articles of Association at the time of Incorporation) Description Ordinary Shares Issued on January 08, 2011 Status Face Value Qty of hares Value (TK) Ordinary(Bonus) 10 52,672,000 526,720,000 Ordinary Shares Issued on January 09, 2011 Ordinary (Other than Cash against land measuring 59 decimal as per Vendor s Agreement dated September 29, 2010) 10 2,950,000 29,500,000 Ordinary Shares Issued on November 04, 2012 Ordinary (Bonus) 10 26,008,800 260,088,000 Total 816,308,000 40
This is to declare that, to the best of our knowledge and belief, no information, facts or circumstances, which should be disclosed have been suppressed, which can change the terms and conditions under which the offer has been made to the public. For Issuer, Sd/- Asif Moyeen Managing Director & Director Far East Knitting & Dyeing Industries Limited 41
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SECTION VIII Information about Directors & Officers 43
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1 Mr.Asif Moyeen Managing Director 1,500,000 100,000 12 19,200,000 15,180,000 2 Mr. Mohammad Bin Quasem Director 750,000-12 9,000,000 7,800,000 3 Mr. Md. Salamat Ullah* Director - - - - 880,000 4 Ms. Farha Lazina Chairman 550,000-12 6,600,000 6,120,000 5 Mr. Sayed Mazharul Haque* Director - - - - 4,290,000 Total 2,800,000 100,000 34,800,000 34,270,000 47
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SECTION IX Features of IPO 51
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SECTION 01 name of section 54
55 Plan of Distribution SECTION X Tota
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SECTION XI Allotment, Subscription & Market 57
20% of IPO of Ordinary Shares are reserved for affected small investors ( wzmö z`ª wewb qvmkvix) [A] 58
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SECTION XII Material Contract & Others 62
SECTION XIII Corporate Directory 63
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SECTION XIV Auditors Report & Related Certificates 65
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SECTION 01 name of section 108
SECTION XV Management Disclosure 109
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SECTION XVI Credit Rating Report of Far East Knitting & Dyeing Industries Limited 113
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SECTION XVII Application Forms Ò kqvievrv i wewb qvm SzuwKc~Y, R b I ey S wewb qvm Kiæb Ó 129
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