Post on 25-May-2018
Malek Siddiqui Wali
Chartered Accountants
Notes JUNE'11 JUNE'10
ASSETS : Taka Taka
Non-Current Assets: 2,532,496,868 2,143,474,910
Property, Plant and Equipment 4 1,686,139,968 1,763,458,010
Investment in Subsidiary Company 5 243,480,000 180,090,000
Share Money Deposit to Subsidiary Company 6 602,876,900 199,926,900
Current Assets : 4,722,005,044 18,782,534,144
Inventories 7 1,932,774,214 844,148,180
Accounts Receivable 8 777,543,982 629,187,317
Interest receivable 9 - 10,315,871
Advances,Deposits and Pre-payments 10 1,436,202,154 677,831,055
Cash and Cash Equivalents 11 575,484,695 16,621,051,720
TOTAL ASSETS : 7,254,501,912 20,926,009,054
SHAREHOLDER'S EQUITY AND LIABILITIES :
Shareholder's Equity : 4,806,251,122 20,169,468,389
Share Capital 12 1,600,000,000 1,200,000,000
Share Premium 13 1,500,000,000 900,000,000
General Reserve and Surplus 14 705,897,385 643,815,792
Reserve for Re-valuation of Fixed Assets 15 1,000,353,737 1,050,477,013
Share Money Deposit (IPO) 16 - 16,375,175,584
Non-Current Liabilities: 115,714,958 -
Long Term Loan 17 115,714,958 -
Current Liabilities : 2,332,535,831 756,540,664
Short Term Loan 18 136,047,801 212,805,180
Liabilities for refundable IPO Share money 19 14,971,455 -
Security Deposit Against Sales 20 - 6,000,000
Acceptance Liabilities 21 2,045,647,341 432,575,037
Creditors and Accruals 22 124,900,493 105,160,447
Unclaimed Dividend 23 10,968,740 -
TOTAL SHAREHOLDER'S EQUITY AND LIABILITIES : 7,254,501,912 20,926,009,054
Net Assets Value Per Share (NAV) 30.16 36.64
Par Value Tk.10
The annexed notes 1 to 33 form an integral part of these financial statement
sd/- sd/- sd/- sd/- A.Matin Chowdhury A.F.M. Zubair B.K. Chaki Syed Saiful Haque
Managing Director Director Chief Financial Officer Company Secretary
As per our report of same date
sd/-Dhaka (Malek Siddiqui Wali)
October 27,2011 Chartered Accountants
AS AT 30th
JUNE 2011
MALEK SPINNING MILLS LIMITEDBALANCE SHEET
Malek Siddiqui Wali
Chartered Accountants
Notes JUNE'11 JUNE'10
Taka Taka
Sales 24 3,509,105,802 1,978,824,374
Cost of Goods Sold 25 3,309,616,599 1,692,886,994
Gross Profit : 199,489,203 285,937,380
Operating Expenses 26 61,628,145 34,720,085
Financial Expenses 27 79,041,915 68,991,737
Loss on Sale of Assets 28 - 497,835
Operating Profit : 58,819,143 181,727,723
Add: Other Income 29 83,364,891 83,278,349
Less: Other Expenses 30 3,977,119 67,064,623
Net Operating Profit : 138,206,915 197,941,449
Provision for Contribution to WPPF 31 6,581,282 9,897,072
Profit before Tax : 131,625,634 188,044,377
Provision for Income Tax : 32 29,667,317 31,854,745
Net Profit for this period 101,958,317 156,189,632
(Transferred to the Statement of Changes in Equity)
Earnings Per Share (EPS) 33 0.64 1.51
Par Value Tk.10
Weighted Average No. of Shares Outstanding.
The annexed notes 1 to 33 form an integral part of these financial statement.
sd/- sd/- sd/- sd/- A.Matin Chowdhury A.F.M. Zubair B.K.Chaki Syed Saiful Haque
Managing Director Director Chief Financial Officer Company Secretary
As per our report of same date
sd/-Dhaka ( Malek Siddiqui Wali )
October 27,2011 Chartered Accountants
MALEK SPINNING MILLS LIMITEDINCOME STATEMENT
FOR THE YEAR ENDED 30TH
JUNE 2011
Malek Siddiqui Wali
Chartered Accountants
JUNE'11 JUNE'10
Taka Taka
CASH FLOW FROM OPERATING ACTIVITIES :
Collection from Turnover & Accounts Receivable 3,360,749,137 1,906,529,719
Payment for Raw Materials, Indirect Materials and other expenses (2,668,364,316) (1,744,207,735)
Collection from Other Income 83,364,891 72,962,478
Payment for Operating Expenses (58,021,100) (33,110,086)
Payment for Other Expenses (3,977,119) (67,064,623)
Payment for Income Tax (30,239,638) (38,160,047)
Payment of Financial Expenses (79,041,915) (68,119,355)
Net Cash Provided by Operating Activities 604,469,940 28,830,351
CASH FLOW FROM INVESTING ACTIVITIES :
Acquisition of Fixed Assets (25,048,057) (156,502,379)
Sale of Fixed Assets - 1,112,300
Investment to Subsidiary Company (466,340,000) -
Net cash used in Investing Activities (491,388,057) (155,390,079)
CASH FLOW FROM FINANCING ACTIVITIES :
Bank Loan Receipt/(Repayment) 38,957,579 (524,370,236)
Liability for Refundable IPO Share Money 14,971,455 -
Redemption of Share Money Deposit (16,375,175,584) 16,375,175,584
Dividend Payment (79,031,260) -
Advance, Deposit and Prepayments. (758,371,099) (477,755,515)
Issuance of Share Capital 400,000,000 500,000,000
Share Premium received 600,000,000 750,000,000
Net Cash provided by Financing Activities (16,158,648,908) 16,623,049,833
Increase/(Decrease) in Cash and Cash Equivalents (16,045,567,025) 16,496,490,104
Cash & Cash Equivalents at 1st July 2010 16,621,051,720 124,561,616
Cash and Cash Equivalents at 30th
June 2011 575,484,695 16,621,051,720
Net Operating Cash Flow Per Share (NOCFPS) 3.79 0.28
Par Value Tk.10
sd/- sd/- sd/- sd/- A.Matin Chowdhury A.F.M. Zubair B.K. Chaki Syed Saiful Haque
Managing Director Director Chief Financial Officer Company Secretary
As per our report of same date
sd/-Dhaka ( Malek Siddiqui Wali )
October 27,2011 Chartered Accountants
MALEK SPINNING MILLS LIMITEDCASH FLOW STATEMENT
FOR THE YEAR ENDED 30TH
JUNE 2011
Malek Siddiqui Wali
Chartered Accountants
Balance as on 1st July 2010 1,200,000,000 1,050,477,013 643,815,792 900,000,000 16,375,175,584 20,169,468,389
Net Profit during the Period - - 101,958,317 - 101,958,317
Issuance of Share Capital 400,000,000 600,000,000 1,000,000,000
Share Money Deposit (16,375,175,584) (16,375,175,584)
Reserve for Revaluation of
Fixed Assets- (50,123,276) 50,123,276 - -
Dividend for 2009-2010 (90,000,000) (90,000,000)
As on 30th
June 2011 1,600,000,000 1,000,353,737 705,897,385 1,500,000,000 - 4,806,251,122
Balance as on 1st July 2009 700,000,000 1,121,891,469 416,211,705 150,000,000 2,388,103,174
Net Profit during the Period - - 156,189,632 - - 156,189,632
Issuance of Share Capital 500,000,000 750,000,000 1,250,000,000
Share Money Deposit - - 16,375,175,584 16,375,175,584
Reserve for Revaluation of
Fixed Assets (71,414,455) 71,414,455 - -
As on 30th
June 2010 1,200,000,000 1,050,477,013 643,815,792 900,000,000 16,375,175,584 20,169,468,389
sd/- sd/- sd/- sd/- A.Matin Chowdhury A.F.M. Zubair B.K. Chaki Syed Saiful Haque
Managing Director Director Chief Financial Officer Company Secretary
As per our report of same date
sd/-Dhaka ( Malek Siddiqui Wali )
October 27,2011 Chartered Accountants
FOR THE YEAR ENDED 30TH
JUNE 2010
Total
Reserve for
Revaluation of
Fixed Assets
Total Particulars Share Premium Share Money
Deposit Share Capital
Reserve for
Revaluation of
Fixed Assets
General
Reserve and
Surplus
MALEK SPINNING MILLS LIMITED
Share Capital Particulars
General
Reserve and
Surplus
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30TH
JUNE 2011
Share Premium Share Money
Deposit
MALEK SPINNING MILLS LIMITED NOTES TO THE FINANCIAL STATEMENTS
AS ON 30TH
JUNE 2011
1. COMPANY AND ITS ACTIVITIES:
Malek Spinning Mills Limited was incorporated as a Private Limited Company on 2nd November, 1989
under Companies Act 1913. It was converted into Public Ltd. Company in the year 2008. The share of
the company is denominated from Tk.100/- to Tk.10/- per share as on 14th September, 2008. Its
subsidiary companies are Salek Textile Limited, Newasia Synthetics Limited, J.M. Fabrics Limited and
Titas Spinning & Denim Company Ltd. All of the companies are incorporated with registrar of joint
stock companies and firms, Dhaka, except J.M. Fabrics Limited which is registered with RJSC
Chittagong, Bangladesh under Companies Act 1994. Registered office of the Company is at 117/A,
Tejgaon I/A, Dhaka-1208 while Factories are situated at Shafipur, Kaliakoir, Bhawal Mirzapur, Gazipur
& Mahna Bhabanipur, Gazipur respectively.
Malek Spinning Mills Limited had floated its 4,00,00,000 shares of Tk. 10/- each at Tk. 25/- each
including premium of Tk. 15/- per share to General Public through Initial Public Offering (IPO) after
obtaining concent from Securities and Exchange Commission (SEC) vide their letter no. SEC/CI/IPO-
118/2010/462 dated April 15th 2010.
The Company had changed its utilization of IPO proceed after approval from the share holders in the
Annual General Meeting (AGM) held on 27th December 2010 in compliance of the condition No-7 of
part –B of the IPO consent order for SEC. After changing the utilization of IPO proceeds the Company
acquired 99.98% share of JM Fabrics Limited and 90% share of Titas Spinning & Denim Company Ltd.
2. NATURE OF BUSINESS:
The Company has got the capacity of 63,624 spindles to spin high quality Cotton hosiery yarns by using
modern machinery including state-of-the-art yarn testing laboratory. Annual production capacity of the
company is 12,600,000 Kgs and Salek Textile Limited is well equipped with 10 (ten) Schlafhorst Auto
Coro Machines with 360 rotors each, having a total rated production capacity of 14,621,000 Kgs. of
open-end yarn per annum. As per decision of the Board of Directors meeting held on 3rd April 2011 the
implementation of the project Newasia Synthetics Limited (NSL) have been shelved and necessary
price sensitive information have been published.
JM Fabrics Limited is engaged in the production of 100% export oriented Garments and Knit Fabrics
having a production capacity of 8 (Eight) M.Tons of Knitted Fabrics and 18(Eighteen) Lines of Cutting
and Sewing operation with all facilities, storage etc.
Titas Spinning & Denim Company Ltd. is engaged in the production of 100% export oriented
Denim/Fabrics/Garments with capacity of 15,000 yards per day.
3. SIGNIFICANT ACCOUNTING POLICIES:
3.1 Basis of Accounting:
The financial statements of the company under reporting have been prepared under historical cost
convention in a going concern concept and on accrual basis in accordance
with generally accepted accounting principles and practice in Bangladesh in compliance with the
Companies Act 1994, The Securities and Exchange Rules 1987, Listing Regulations of Dhaka
Stock Exchange Ltd (DSE) & Chittagong Stock Exchange Ltd. (CSE) and International
Accounting Standards (IAS) as adopted by the Institute of Chartered Accountants of Bangladesh
(ICAB), as Bangladesh Accounting Standard (BAS).
3.2 Principal Accounting Policies:
Specific accounting policies were selected and applied by the company‟s management for
significant transactions and events that have a material effect within the framework of BAS-1
“Preparation of Financial Statement” in preparation and presentation financial statements. The
previous year‟s figures were presented according to the same accounting principles.
3.3 Basis of Consolidation:
The consolidated financial statements incorporate the financial statements of the company and
entity controlled by the company. Control is achieved where the company has the power to govern
the financial and operating policies of an entity so as to obtain benefits from its activities.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring their
accounting policies into line with those used by other member of the group.
All intra group transaction, balances, income and expenses are eliminated in full on consolidation.
Minority interests in the net assets of consolidated subsidiaries are identified separately from the
group equity therein.
These consolidate financial statements have been prepared in consolidation with the audited
accounts of the company and the audited accounts of Salek Textile Limited, Newasia Synthetics
Limited, J.M. Fabrics Limited and Titas Spinning Denim Company Ltd. for the Year ended
June 30, 2011
3.4 Percentage of Holding on Subsidiary Company:
Name of Company Total No. Shares Total Holding Percentage of Holding
Salek Textile Ltd. 999,000 899,100 90%
Newasia Synthetics
Ltd.
937,150 901,800 96.23%
JM Fabrics Ltd. 6,25,000 6,24,900 99.98%
Titas Spinning &
Denim Co. Ltd.
10,000 9,000 90%
3.5 Application of Bangladesh Accounting Standards (BAS):
The following BASs are applicable for the financial statements for the year under review
BAS – 1 Presentation of Financial Statement
BAS – 2 Inventories
BAS – 7 Cash flow Statement
BAS – 8 Accounting Policies, Changes in Accounting Estimates and Errors
BAS – 10 Event after the Balance Sheet Date
BAS – 12 Income Tax
BAS – 14 Segment Reporting
BAS – 16 Property, Plant & Equipment
BAS – 17 Leases
BAS – 18 Revenue
with generally accepted accounting principles and practice in Bangladesh in compliance with the
Companies Act 1994, The Securities and Exchange Rules 1987, Listing Regulations of Dhaka
Stock Exchange Ltd (DSE) & Chittagong Stock Exchange Ltd. (CSE) and International
Accounting Standards (IAS) as adopted by the Institute of Chartered Accountants of Bangladesh
(ICAB), as Bangladesh Accounting Standard (BAS).
3.2 Principal Accounting Policies:
Specific accounting policies were selected and applied by the company‟s management for
significant transactions and events that have a material effect within the framework of BAS-1
“Preparation of Financial Statement” in preparation and presentation financial statements. The
previous year‟s figures were presented according to the same accounting principles.
3.3 Basis of Consolidation:
The consolidated financial statements incorporate the financial statements of the company and
entity controlled by the company. Control is achieved where the company has the power to govern
the financial and operating policies of an entity so as to obtain benefits from its activities.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring their
accounting policies into line with those used by other member of the group.
All intra group transaction, balances, income and expenses are eliminated in full on consolidation.
Minority interests in the net assets of consolidated subsidiaries are identified separately from the
group equity therein.
These consolidate financial statements have been prepared in consolidation with the audited
accounts of the company and the audited accounts of Salek Textile Limited, Newasia Synthetics
Limited, J.M. Fabrics Limited and Titas Spinning Denim Company Ltd. for the Year ended
June 30, 2011
3.4 Percentage of Holding on Subsidiary Company:
Name of Company Total No. Shares Total Holding Percentage of Holding
Salek Textile Ltd. 999,000 899,100 90%
Newasia Synthetics
Ltd.
937,150 901,800 96.23%
JM Fabrics Ltd. 6,25,000 6,24,900 99.98%
Titas Spinning &
Denim Co. Ltd.
10,000 9,000 90%
3.5 Application of Bangladesh Accounting Standards (BAS):
The following BASs are applicable for the financial statements for the year under review
BAS – 1 Presentation of Financial Statement
BAS – 2 Inventories
BAS – 7 Cash flow Statement
BAS – 8 Accounting Policies, Changes in Accounting Estimates and Errors
BAS – 10 Event after the Balance Sheet Date
BAS – 12 Income Tax
BAS – 14 Segment Reporting
BAS – 16 Property, Plant & Equipment
BAS – 17 Leases
BAS – 18 Revenue
BAS – 19 Employee Benefits
BAS – 21 The effect of Changes in Exchange Rate
BAS – 23 Borrowing Cost
BAS – 24 Related Party Discloser
BAS – 27 Consolidated Financial Statements and Accounting for Investment in Subsidiary
BAS – 33 Earnings per share
BAS – 36 Impairment of assets
BAS – 37 Provisions, Contingent Liabilities and Contingent Assets
BAS – 38 Intangible Assets
3.6 Recognition of Property, Plant & Equipment and Depreciation:
Property, Plant & Equipment are stated at cost less accumulated depreciation in accordance with
BAS - 16 “Property, Plant & Equipment “. Cost represents cost of acquisition or construction and
include purchase price and other directly attributable cost of bringing the assets to working
conditions for its intended use, but do not include any capitalized borrowing cost. During Financial
year 2007-2008 the Company Revalued the Assets as per Board Resolution dated on 05.12.2007. No
depreciation is charged on land and land development. Depreciation on all other fixed assets is
computed using the reducing balance method in amount sufficient to write-off depreciable assets
over their estimated useful life. Expenditure for maintenance and repairs are expenses; major
replacements, renewals and betterment are capitalized. The cost and accumulated depreciation of
depreciable assets retired or otherwise disposed off are eliminated from the assets and accumulated
depreciation and any gain or loss on such disposal is reflected in operations for the year.
The annual depreciation rates applicable to the principal categories are:
Building 5%
Plant & Machinery 7.5%
Generator 10%
Furniture & Fixture 10%
Motor Vehicles 15%
Office Equipments 15%
Electrical Installation 15%
Gas Line Installation 15%
Fire Installation 15%
Loose Tools 15%
Depreciation has been charged to cost of goods sold & administrative expenses consistently.
The board of directors has approved the change in depreciation policy considering the notional life
of Assets, the depreciation rate of Plant & Machinery and Generator have been changed from 10% to
7.5% and 15% to 10% respectively as approved by the board of directors meeting held on
02.10.2011.
3.7 Inventories:
Inventories comprise of Raw Materials, Raw Materials in Transit, Work-In-Process, Finished Goods and
Stores and Spare Parts. They are stated at the lower of cost or market or net realizable value in accordance
with the Para of 21 & 25 of BAS-2 “Inventories” after making due allowance for any obsolete or slow
moving item. The cost of inventories is assigned by
with generally accepted accounting principles and practice in Bangladesh in compliance with the
Companies Act 1994, The Securities and Exchange Rules 1987, Listing Regulations of Dhaka
Stock Exchange Ltd (DSE) & Chittagong Stock Exchange Ltd. (CSE) and International
Accounting Standards (IAS) as adopted by the Institute of Chartered Accountants of Bangladesh
(ICAB), as Bangladesh Accounting Standard (BAS).
3.2 Principal Accounting Policies:
Specific accounting policies were selected and applied by the company‟s management for
significant transactions and events that have a material effect within the framework of BAS-1
“Preparation of Financial Statement” in preparation and presentation financial statements. The
previous year‟s figures were presented according to the same accounting principles.
3.3 Basis of Consolidation:
The consolidated financial statements incorporate the financial statements of the company and
entity controlled by the company. Control is achieved where the company has the power to govern
the financial and operating policies of an entity so as to obtain benefits from its activities.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring their
accounting policies into line with those used by other member of the group.
All intra group transaction, balances, income and expenses are eliminated in full on consolidation.
Minority interests in the net assets of consolidated subsidiaries are identified separately from the
group equity therein.
These consolidate financial statements have been prepared in consolidation with the audited
accounts of the company and the audited accounts of Salek Textile Limited, Newasia Synthetics
Limited, J.M. Fabrics Limited and Titas Spinning Denim Company Ltd. for the Year ended
June 30, 2011
3.4 Percentage of Holding on Subsidiary Company:
Name of Company Total No. Shares Total Holding Percentage of Holding
Salek Textile Ltd. 999,000 899,100 90%
Newasia Synthetics
Ltd.
937,150 901,800 96.23%
JM Fabrics Ltd. 6,25,000 6,24,900 99.98%
Titas Spinning &
Denim Co. Ltd.
10,000 9,000 90%
3.5 Application of Bangladesh Accounting Standards (BAS):
The following BASs are applicable for the financial statements for the year under review
BAS – 1 Presentation of Financial Statement
BAS – 2 Inventories
BAS – 7 Cash flow Statement
BAS – 8 Accounting Policies, Changes in Accounting Estimates and Errors
BAS – 10 Event after the Balance Sheet Date
BAS – 12 Income Tax
BAS – 14 Segment Reporting
BAS – 16 Property, Plant & Equipment
BAS – 17 Leases
BAS – 18 Revenue
BAS – 19 Employee Benefits
BAS – 21 The effect of Changes in Exchange Rate
BAS – 23 Borrowing Cost
BAS – 24 Related Party Discloser
BAS – 27 Consolidated Financial Statements and Accounting for Investment in Subsidiary
BAS – 33 Earnings per share
BAS – 36 Impairment of assets
BAS – 37 Provisions, Contingent Liabilities and Contingent Assets
BAS – 38 Intangible Assets
3.6 Recognition of Property, Plant & Equipment and Depreciation:
Property, Plant & Equipment are stated at cost less accumulated depreciation in accordance with
BAS - 16 “Property, Plant & Equipment “. Cost represents cost of acquisition or construction and
include purchase price and other directly attributable cost of bringing the assets to working
conditions for its intended use, but do not include any capitalized borrowing cost. During Financial
year 2007-2008 the Company Revalued the Assets as per Board Resolution dated on 05.12.2007. No
depreciation is charged on land and land development. Depreciation on all other fixed assets is
computed using the reducing balance method in amount sufficient to write-off depreciable assets
over their estimated useful life. Expenditure for maintenance and repairs are expenses; major
replacements, renewals and betterment are capitalized. The cost and accumulated depreciation of
depreciable assets retired or otherwise disposed off are eliminated from the assets and accumulated
depreciation and any gain or loss on such disposal is reflected in operations for the year.
The annual depreciation rates applicable to the principal categories are:
Building 5%
Plant & Machinery 7.5%
Generator 10%
Furniture & Fixture 10%
Motor Vehicles 15%
Office Equipments 15%
Electrical Installation 15%
Gas Line Installation 15%
Fire Installation 15%
Loose Tools 15%
Depreciation has been charged to cost of goods sold & administrative expenses consistently.
The board of directors has approved the change in depreciation policy considering the notional life
of Assets, the depreciation rate of Plant & Machinery and Generator have been changed from 10% to
7.5% and 15% to 10% respectively as approved by the board of directors meeting held on
02.10.2011.
3.7 Inventories:
Inventories comprise of Raw Materials, Raw Materials in Transit, Work-In-Process, Finished Goods and
Stores and Spare Parts. They are stated at the lower of cost or market or net realizable value in accordance
with the Para of 21 & 25 of BAS-2 “Inventories” after making due allowance for any obsolete or slow
moving item. The cost of inventories is assigned by
using weighted average cost. Net realizable value is determined after deducting the estimated cost of
completion and/or cost to be incurred for affecting the sale from sales price.
3.8 Trade Debtors:
These are carried at original invoice amount, they are unsecured and considered good and
collectible.
3.9 Cash and Cash Equivalents:
According to BAS-7 „Cash flow Statements‟ cash comprises of cash-in-hand and demand deposits.
BAS-1 „Presentation of Financial Statements‟ provides that cash and cash equivalents are not
restricted in use. Considering the provisions of BAS-7 and BAS-1, Cash in hand and Bank balances
have been considered as cash and cash equivalents
3.10 Creditors and Accruals :
Liabilities are recognized for amounts to be paid in the future for goods and services received,
whether or not billed by the supplier.
3.11 Income Tax :
The corporate tax rate for Textile Sector is 15%. Provision has been made and calculated on the above
basis, which is adequate under Income Tax Ordinance 1984. There is no deferred tax liabilities due to
not having any difference between tax based asset and accounting base asset.
3.12 Cash Flow Statement :
Cash Flow Statement is prepared in accordance with BAS-7 under direct method as outlined in the
“Securities and Exchange Rules 1987”.
3.13 Risk and Uncertainties for use of Estimates in Preparation of Financial Statements :
The preparation of financial statements in conformity with the international accounting standards
requires management to make estimates and assumption that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of affecting financial
statements and revenues and expenses during the reported year. Actual results could differ from those
estimates. Estimates are used for accounting of certain items such as long-term contracts; depreciation
and employees benefit plans, taxes, reserves and contingencies.
3.14 Compliance with Local Laws :
The financial statements have been prepared in compliance with requirements of the Companies Act
1994, Securities and Exchange Rules 1987 and other relevant local laws and rules.
3.15 Compliance with Bangladesh Accounting Standards:
The financial statements have been prepared in compliance with requirement of BAS as adopted by
The Institute of Chartered Accountants of Bangladesh (ICAB) and applicable in Bangladesh.
3.16 Contingent Liabilities and Assets:
Current or possible obligations or assets arising from past events and whose existence is due to the
occurrence or non-occurrence of one or more uncertain events which are not within the control of
the group.
3.17 Transaction with Related Parties:
In the period under review the company has transactions with related party in the normal course of
business. They are as follows:
Business Transactions:
S.L Related Parties Nature of
relationship
Nature of Transaction Balance as at
30.06.2011
1 Knit Asia Limited Common Director Yarn Sales 1,093,887,440
2. Salek Textile Limited Subsidiary Share Money Deposit 189,926,900
Investment in equity 89,910,000
Advance 654,564,475
3. Newasia Synthetics
Limited
Subsidiary Share Money Deposit 10,000,000
Investment in equity 90,180,000
Advance 303,790,823
4. J.M. Fabrics Limited Subsidiary Share Money Deposit 308,750,000
Investment in equity 62,490,000
Advance 159,941,729
5. Titas Spinning &
Denim Company Ltd.
Subsidiary Share Money Deposit 94,200,000
Investment in equity 900,000
Advance 246,500,000
3.18 Reporting Year:
Financial statements of the company cover from 1st July 2010 to 30th June 2011.
3.19 Reporting Currency and Level of Precision:
The figures in the financial statements represent Bangladesh Currency (Taka), which have been
rounded off to the nearest Taka except where indicates otherwise.
3.20 Comparative Information:
Comparative information have been disclosed in respect of year June 2010 for all numerical
information in the financial statements and also the narrative and descriptive information when it is
relevant for understanding of the current years financial statements. Figures of the year 2010 have
been rearranged whenever considered necessary to ensure comparability with the current year.
3.21 Foreign Currency Translation :
Transactions in foreign currencies are translated into Bangladeshi Taka at the Exchange rate
prevailing on the date of transactions in accordance with BAS- 21 “The Effects of Changes in
Foreign Exchange Rate.” Bank deposit in foreign currency has been translated into taka at the year
end at the rate of exchange ruling on that date
3.16 Contingent Liabilities and Assets:
Current or possible obligations or assets arising from past events and whose existence is due to the
occurrence or non-occurrence of one or more uncertain events which are not within the control of
the group.
3.17 Transaction with Related Parties:
In the period under review the company has transactions with related party in the normal course of
business. They are as follows:
Business Transactions:
S.L Related Parties Nature of
relationship
Nature of Transaction Balance as at
30.06.2011
1 Knit Asia Limited Common Director Yarn Sales 1,093,887,440
2. Salek Textile Limited Subsidiary Share Money Deposit 189,926,900
Investment in equity 89,910,000
Advance 654,564,475
3. Newasia Synthetics
Limited
Subsidiary Share Money Deposit 10,000,000
Investment in equity 90,180,000
Advance 303,790,823
4. J.M. Fabrics Limited Subsidiary Share Money Deposit 308,750,000
Investment in equity 62,490,000
Advance 159,941,729
5. Titas Spinning &
Denim Company Ltd.
Subsidiary Share Money Deposit 94,200,000
Investment in equity 900,000
Advance 246,500,000
3.18 Reporting Year:
Financial statements of the company cover from 1st July 2010 to 30th June 2011.
3.19 Reporting Currency and Level of Precision:
The figures in the financial statements represent Bangladesh Currency (Taka), which have been
rounded off to the nearest Taka except where indicates otherwise.
3.20 Comparative Information:
Comparative information have been disclosed in respect of year June 2010 for all numerical
information in the financial statements and also the narrative and descriptive information when it is
relevant for understanding of the current years financial statements. Figures of the year 2010 have
been rearranged whenever considered necessary to ensure comparability with the current year.
3.21 Foreign Currency Translation :
Transactions in foreign currencies are translated into Bangladeshi Taka at the Exchange rate
prevailing on the date of transactions in accordance with BAS- 21 “The Effects of Changes in
Foreign Exchange Rate.” Bank deposit in foreign currency has been translated into taka at the year
end at the rate of exchange ruling on that date
3.22 Revenue Recognition:
The Company recognizes revenue when risk and rewards associated with ownership has been
transferred to buyer, which satisfied all the condition for the revenue recognition as provided in
BAS-18 „Revenue Recognition.‟
3.23 Responsibility for Preparation and Presentation of Financial Statements:
The Board of Directors is responsible for the preparation and presentation of Financial Statements
under Section 183 of the Companies Act 1994 and as per the provision of „The Framework for the
Preparation and Presentation of Financial Statements‟ issued by the International Accounting
Standards Board (IASB).
3.24 Components of the Financial Statements:
According to the Bangladesh Accounting Standard BAS-1 „Presentation of Financial Statements‟
the complete set of Financial Statements includes the following components:
i. Balance Sheet as on 30th June 2011.
ii. Income Statement (Profit & Loss Account) for the year of 1st July 2010 to 30th June 2011.
iii. Cash flow Statement for the year of 1st July 2010 to 30th June 2011.
iv. Accounting Policies and Explanatory Notes.
3.25 Earnings Per Share:
Earnings per share (EPS) is calculated in accordance with the Bangladesh Accounting Standard
BAS-33 “Earnings per share”.
i) Basic Earnings per Share:
Basic earnings per share is calculated by dividing the net profit or loss for the year
attributable to ordinary shareholders by the weighted average number of ordinary shares
outstanding during the year.
ii) Diluted Earnings per Share:
No diluted Earnings per share was required to be calculated for the year under review as
there was no scope for dilution of Earnings per Share for the year.
3.26 Share Premium:
The balance in share premium account shall be utilized in accordance with provisions of the
Companies Act 1994 and as directed by the Securities and Exchange Commission in this respect.
3.27 Lease Assets:
In Compliance with the BAS-17, Leases, cost of assets acquired under finance lease along with
related obligation has been accounted for as assets and liabilities respectively of the company.
3.22 Revenue Recognition:
The Company recognizes revenue when risk and rewards associated with ownership has been
transferred to buyer, which satisfied all the condition for the revenue recognition as provided in
BAS-18 „Revenue Recognition.‟
3.23 Responsibility for Preparation and Presentation of Financial Statements:
The Board of Directors is responsible for the preparation and presentation of Financial Statements
under Section 183 of the Companies Act 1994 and as per the provision of „The Framework for the
Preparation and Presentation of Financial Statements‟ issued by the International Accounting
Standards Board (IASB).
3.24 Components of the Financial Statements:
According to the Bangladesh Accounting Standard BAS-1 „Presentation of Financial Statements‟
the complete set of Financial Statements includes the following components:
i. Balance Sheet as on 30th June 2011.
ii. Income Statement (Profit & Loss Account) for the year of 1st July 2010 to 30th June 2011.
iii. Cash flow Statement for the year of 1st July 2010 to 30th June 2011.
iv. Accounting Policies and Explanatory Notes.
3.25 Earnings Per Share:
Earnings per share (EPS) is calculated in accordance with the Bangladesh Accounting Standard
BAS-33 “Earnings per share”.
i) Basic Earnings per Share:
Basic earnings per share is calculated by dividing the net profit or loss for the year
attributable to ordinary shareholders by the weighted average number of ordinary shares
outstanding during the year.
ii) Diluted Earnings per Share:
No diluted Earnings per share was required to be calculated for the year under review as
there was no scope for dilution of Earnings per Share for the year.
3.26 Share Premium:
The balance in share premium account shall be utilized in accordance with provisions of the
Companies Act 1994 and as directed by the Securities and Exchange Commission in this respect.
3.27 Lease Assets:
In Compliance with the BAS-17, Leases, cost of assets acquired under finance lease along with
related obligation has been accounted for as assets and liabilities respectively of the company.
3.28 Subsequent Disclosure of Events occurring after the Balance Sheet date:
Share Money Deposit of Tk. 18,99,26,900 have been converted into Share Capital by allotment of
18,99,269 ordinary shares of Tk. 100/- each of Salek Textile Limited on 19th July 2011 in favour of
Malek Spinning Mills Limited
3.29 Impairment of Assets:
The company reviews the recoverable amount of its assets at each reporting date. If there exist any
indication that the carrying amount of assets exceeds the recoverable amount, the company
recognizes such impairment loss in accordance with BAS-36 “Impairment of Assets”.
3.30 Borrowing Cost:
The company Capitalizes borrowing cost for new project such as interest on term loan and other
related fees/Charges for the period till to commencement of commercial operation and charges the
cost to revenue account as financial expenses after commencement of commercial operation.
3.31 Research, Development and Experimental Costs:
In compliance with requirements of BAS-38 “Intangible Assets” research, development and
experimental cost usually absorbed as revenue charges and when incurred, as being not that much
material in the company‟s and /local Context .
3.32 Credit Facility Not Availed:
There was no credit facility available to the company under any contract, other than trade credit
available in the ordinary course of business.
3.33 Segment Reporting:
As there is a single business and geographic segment within the company operates as such no
segment reporting is felt necessary.
3.34 General Comments & Observations:
a. Previous year‟s figures have been regrouped / reclassified wherever considered necessary to
confirm to current year‟s presentation. Figures have been rounded off to the nearest taka, as the
currency represented in this financial statement.
b. All shares have been fully called and paid up.
c. There was no preference share issued by the company.
d. The company has not incurred any expenditure in foreign currency against royalties and
technical fees.
e. Auditors are paid only statutory audit fees.
f. No foreign exchange remitted to the relevant shareholders during the year under audit.
g. No amount of money was expended by the company for compensating any members of the
Board for special service rendered.
h. No brokerage was paid against sales during the year under audit.
i. There was no bank guarantee issued by the company on behalf of directors.
3.35 Attendance Status of Board Meeting of Directors:
During the year from 01.07.2010 to 30.06.2011 there were fourteen Board Meetings were held.
The attendance status of all the meetings is as follows:
Name of Directors Position Meeting Held Attended
Mr. A. Matin Chowdhury Managing Director 14 14
Dr. Shamim Matin Chowdhury Director 14 14
Mr.A.F.M Zubair Director 14 11
Mr.Azizur Rahim Chowdhury Director 14 14
Ms. Saima Matin Chowdhury Director 14 7
Mr.Moshiur Rahman Director 14 14
Mr. M. Sekander Ali Independent Director 14 11
For board meeting, attendance fees were not paid to the directors of the Companyon per
resolution of Board Meeting dated as on September 30, 2008 none of the Directors are taking any
Remuneration for attending Board of Directors Meeting.
3.36 Discloser as per requirement of Schedule XI, Part II of Company Act 1984
A. Discloser as per requirement of schedule XI, part II, Note 5 of Para 3
Employee Position for Malek Spinning Mills Ltd. (as per 30th
June 2011)
Salary Range Officer & Staff Worker Total Employee
Head Office Factory
Below 3,000
Above 3,000 57 204 1343 1604
Total 57 204 1343 1604
Employee Position for Salek Textile Ltd. (as per 30th
June 2011)
Salary Range Officer & Staff Worker Total Employee
Head Office Factory
Below 3,000 -
Above 3,000 17 148 437 602
Total 17 148 437 602
JM Fabrics Limited (as per 30th
June 2011)
Salary Range Officer & Staff Worker Total Employee
Head Office Factory
Below 3,000
Above 3,000 8 81 1562 1651
Total
Titas Spinning & Denim Co. Ltd. (as per 30th
June 2011)
Salary Range Officer & Staff Worker Total Employee
Head Office Factory
Below 3,000 -
Above 3,000 5 42 132 179
Total 5 42 132 179
Discloser as per requirement of schedule XI, part II, Para 4
Payment to Directors (From 1ST
July 2010 to June 30th
2011)
Particulars Amount
MSML
Amount
STL
Remarks
Mr. A.Matin Chowdhury Managing Director 13,00,000 - Remuneration
Mr. A.F.M Zubair Director 27,95,000 13,00,000 Remuneration
Mr.Azizur R. Chowdhury Director 9,10,000 - Remuneration
TOTAL 50,05,000 13,00,000
A. Discloser as per requirement of schedule XI, part II, Para 7
Detail of Production Capacity Utilization
Particulars Licence
Capacity
Installed
Capacity
Actual
Production
2010-2011
Capacity
Utilization
2010-2011
Annual Production
Capacity of Yarn in
KG.
Not Mentioned
in the Licence
1,26,00,000 1,12,83,075 89.55%
C. Discloser as per requirement of schedule XI, part II, Para 8
Value of Raw Cotton, Spare Parts, Packing Materials and Capital Machinery (BDT)
Particulars Local
Purchase
Import Total
Purchase
Consumed
Raw Cotton - 3,34,27,14,929 3,34,27,14,929 3,03,15,27,455
Spare Parts - 2,22,54,538 2,22,54,538 6,34,19,731
Packing Materials 2,81,37,662 - 2,81,37,662 2,81,37,662
Capital goods - 66,83,941 66,83,941 -
3.35 Attendance Status of Board Meeting of Directors:
During the year from 01.07.2010 to 30.06.2011 there were fourteen Board Meetings were held.
The attendance status of all the meetings is as follows:
Name of Directors Position Meeting Held Attended
Mr. A. Matin Chowdhury Managing Director 14 14
Dr. Shamim Matin Chowdhury Director 14 14
Mr.A.F.M Zubair Director 14 11
Mr.Azizur Rahim Chowdhury Director 14 14
Ms. Saima Matin Chowdhury Director 14 7
Mr.Moshiur Rahman Director 14 14
Mr. M. Sekander Ali Independent Director 14 11
For board meeting, attendance fees were not paid to the directors of the Companyon per
resolution of Board Meeting dated as on September 30, 2008 none of the Directors are taking any
Remuneration for attending Board of Directors Meeting.
3.36 Discloser as per requirement of Schedule XI, Part II of Company Act 1984
A. Discloser as per requirement of schedule XI, part II, Note 5 of Para 3
Employee Position for Malek Spinning Mills Ltd. (as per 30th
June 2011)
Salary Range Officer & Staff Worker Total Employee
Head Office Factory
Below 3,000
Above 3,000 57 204 1343 1604
Total 57 204 1343 1604
Employee Position for Salek Textile Ltd. (as per 30th
June 2011)
Salary Range Officer & Staff Worker Total Employee
Head Office Factory
Below 3,000 -
Above 3,000 17 148 437 602
Total 17 148 437 602
JM Fabrics Limited (as per 30th
June 2011)
Salary Range Officer & Staff Worker Total Employee
Head Office Factory
Below 3,000
Above 3,000 8 81 1562 1651
Total
Titas Spinning & Denim Co. Ltd. (as per 30th
June 2011)
Salary Range Officer & Staff Worker Total Employee
Head Office Factory
Below 3,000 -
Above 3,000 5 42 132 179
Total 5 42 132 179
Discloser as per requirement of schedule XI, part II, Para 4
Payment to Directors (From 1ST
July 2010 to June 30th
2011)
Particulars Amount
MSML
Amount
STL
Remarks
Mr. A.Matin Chowdhury Managing Director 13,00,000 - Remuneration
Mr. A.F.M Zubair Director 27,95,000 13,00,000 Remuneration
Mr.Azizur R. Chowdhury Director 9,10,000 - Remuneration
TOTAL 50,05,000 13,00,000
A. Discloser as per requirement of schedule XI, part II, Para 7
Detail of Production Capacity Utilization
Particulars Licence
Capacity
Installed
Capacity
Actual
Production
2010-2011
Capacity
Utilization
2010-2011
Annual Production
Capacity of Yarn in
KG.
Not Mentioned
in the Licence
1,26,00,000 1,12,83,075 89.55%
C. Discloser as per requirement of schedule XI, part II, Para 8
Value of Raw Cotton, Spare Parts, Packing Materials and Capital Machinery (BDT)
Particulars Local
Purchase
Import Total
Purchase
Consumed
Raw Cotton - 3,34,27,14,929 3,34,27,14,929 3,03,15,27,455
Spare Parts - 2,22,54,538 2,22,54,538 6,34,19,731
Packing Materials 2,81,37,662 - 2,81,37,662 2,81,37,662
Capital goods - 66,83,941 66,83,941 -
Malek Siddiqui Wali
Chartered Accountants
JUNE'11 JUNE'10
4. FIXED ASSETS:Tk.
Details of Fixed Assets and Depreciation as at 30th
June 2011 are shown in the Annexure- 1.
This is arrived at as follows:
COST:
Cost as at 01.07.2010 1,796,065,025 1,641,755,646
Addition this year 25,048,057 156,502,379
1,821,113,083 1,798,258,025
Less: Sales/Adjustment - 2,193,000
Total Cost as at 30.06.2011 1,821,113,083 1,796,065,025
Accumulated Depreciation as at 01.07.2010 1,083,084,029 1,014,307,662
Less: Adjustments during this year - 582,865
Add: Depreciation for this year 52,242,824 69,359,233
Total Depreciation as at 30.06.2011 1,135,326,852 1,083,084,029
Written Down Value as at 30.06.2011 685,786,230 712,980,996
REVALUATION:
Revaluation of Fixed Assets as at 01.07.2010 1,050,477,013 1,121,891,469
Less: Depreciation for this year on Revaluated Assets 50,123,276 71,414,455
Written Down Value of Revaluated Assets as at 30.06.2011 1,000,353,737 1,050,477,013
Total Written Down Value as at 30.06.2011 1,686,139,968 1,763,458,010
Allocation of depreciation charges for the period has been made in the accounts as follows:
i) Factory Overhead 98,759,055 139,163,689
ii) Administrative Overhead 3,607,045 1,609,999
Total 102,366,100 140,773,688
-
5. INVESTMENT IN SUBSIDIARY COMPANY: Tk.
i) Salek Textile Limited (899,100 Shares of Tk.100/- each) 89,910,000 89,910,000
ii) Newasia Synthetics Limited (901,800 Shares of Tk.100/- each) 90,180,000 90,180,000
iii) J.M Fabrics Limited (624,900 Shares of Tk. 100/- each) 62,490,000 -
iv) Titas Spinning & Denim Co. Ltd. (9,000 Shares of Tk. 100/- each) 900,000 -
243,480,000 180,090,000
6. SHARE MONEY DEPOSIT TO SUBSIDIARY COMPANY: TK. 602,876,900
i) Salek Textile Limited 189,926,900 189,926,900
ii) Newasia Synthetics Ltd. 10,000,000 10,000,000
iii) JM Fabrics Ltd. 308,750,000 -
iv) Titas Spinning & Denim Co. Ltd. 94,200,000 -
602,876,900 199,926,900
7. INVENTORIES: Tk.
This consists of as follows :
i) Raw Materials Note: 7.A 553,485,960 242,298,486
ii) Stock-in-Transit Note: 7.B 1,014,491,796 303,819,087
iii) Work-in-Process Note: 7.C 83,553,971 57,900,914
iv) Finished Goods Note: 7.D 216,027,797 133,749,810
v) Stores and Accessories Note: 7.E 65,214,690 106,379,883
Total 1,932,774,214 844,148,180
243,480,000
Amount in Taka
MALEK SPINNING MILLS LIMITEDNOTES OF FINANCIAL STATEMENT
AS AT 30TH
JUNE 2011
1,686,139,968
1,932,774,214
Malek Siddiqui Wali
Chartered Accountants
JUNE'11 JUNE'10
Amount in Taka
MALEK SPINNING MILLS LIMITEDNOTES OF FINANCIAL STATEMENT
AS AT 30TH
JUNE 2011
7.A RAW MATERIALS : Tk.
Raw Materials Inventory accounted as follows:
JUNE'11 JUNE'10
Raw Cotton USA 1,458,000 1,740,150 553,485,960 242,298,486
Raw Cotton Indian - - - -
Total 1,458,000 1,740,150 553,485,960 242,298,486
7.B STOCK IN TRANSIT : Tk.
Stock in Transit Inventory accounted as follows :
JUNE'11 JUNE'10
Raw Cotton USA 13,709,349$ 4,365,217$ 1,014,491,796 303,819,087
Total 13,709,349$ 4,365,217$ 1,014,491,796 303,819,087
7.C WORK-IN-PROCESS : Tk.
Work-In-Process Inventory accounted as follows :
Particulars JUNE'11 JUNE'10
Direct Materials 216,405 469,343 82,151,666 47,403,650
Direct Labour - - 235,881 1,835,775
Factory Overhead - - 1,166,423 8,661,489
Total 216,405 397,256 83,553,971 57,900,914
7.D FINISHED GOODS INVENTORY:Tk. 216,027,797
Particulars
JUNE'11 JUNE'10
Total Kg 1,445,804 569,484 216,027,797 133,749,810
- -
S.L. Yarn Count Qty (Kg) Qty (Kg)
1 20k 18,200 - 2,640,196 -
2 22K 5,950 11,745 867,230 2,571,236
3 24K 338,362 38,976 49,154,234 8,773,427
4 25K - 19,718 - 4,465,550
5 26K 10,259 15,180 1,492,020 3,469,079
6 28K 17,702 4,621 2,574,494 1,056,035
7 30K 632,333 276,812 92,524,229 63,259,729
8 32K 61,264 47,091 9,127,258 11,052,543
9 34K 36,052 11,536 5,371,113 2,810,488
10 40K - 59,342 - 15,760,548
11 20C 23,800 5,000 3,693,522 1,204,502
12 22C 9,750 1,513,103 -
13 24C 9,750 31,784 1,530,395 7,547,147
14 25C 418 65,611 -
15 26C 16,210 2,587,505 -
16 28C 7,557 8,751 1,212,980 2,162,013
17 30C 191,483 26,878 30,735,090 6,640,452
18 32C 19,606 12,050 3,173,055 2,977,061
19 34C 5,602 906,633 -
553,485,960
1,014,491,796
Quantity in KG
Amount in US$
Quantity in KG
83,553,971
Quantity in KG
Malek Siddiqui Wali
Chartered Accountants
JUNE'11 JUNE'10
Amount in Taka
MALEK SPINNING MILLS LIMITEDNOTES OF FINANCIAL STATEMENT
AS AT 30TH
JUNE 2011
20 40C 41,506 6,859,129 -
Total Kg 1,445,804 569,484 216,027,797 133,749,810
7.E STORES & ACCESSORIES: Tk. 65,214,690
Stores and Accessories is accounted as follows :
Spare Parts & Accessories 65,214,690 106,379,883
65,214,690 106,379,883
8. ACCOUNTS RECEIVABLE: TK.
A/C Receivable occurred in the ordinary course of business.
777,543,982 629,187,317
a) The A/C Receivable are secured against confirmed Export L/C
9. INTEREST RECEIVABLE ON STD A/C - 10,315,871
Interest receivable from IPO Share Money Deposit.
10. ADVANCE, DEPOSITS & PRE-PAYMENTS: Tk.
This is comprised as follows :
Advance against construction materials, suppliers and others 20,569,156 19,934,385
Advance to Employees against Salary - 8,000
Advance to Sikder Construction against Land Purchase 9,000,000 9,000,000
Advance to Salek Textile Ltd. (Subsidiary Company) 654,564,475 464,176,844
Advance to Newasia Synthatics Ltd. (Subsidiary Company) 303,790,823 154,470,423
Advance to J.M Fabrics Ltd. 159,941,729 -
Advance to Titas Spinning & Denim Co. Ltd. 246,500,000 -
Advance against Office Rent (Haji Mansur Ali) 4,000,000 -
Security Deposit to United Leasing Co. Ltd. 101,887 -
Security Deposit on REB 178,875 178,875
Security Deposit on Titas Gas T&D Co. 7,038,761 7,038,761
Advance Income Tax Note:10.A 30,016,448 22,523,767
Security Deposit to CDBL 500,000 500,000
1,436,202,154 677,831,055
a) All the advances & deposits amount is considered good and recoverable.
b) In the opinion of Directors, all current assets, investments, loans and advance have, on realization in the ordinary course of
business, a value at least equal to the amount at which they are stated in the Balance Sheet.
c) There is no agreement amount due from Directors or officers of the Company.
d) Advance against construction materials, supplies and others consist of advance to Ata Enterprise, Burlingtons Ltd., Sikder
Construction and various party for construction materials, supplies and other Indirect materials procurement.
10.A. ADVANCE INCOME TAX: Tk. 30,016,448 This is as follows:
(i) Advance Income Tax paid (Against Export Proceeds) 11,679,959 954,439
(ii) Advance Income Tax paid (Against Yearly Income) 10,000,000 13,241,493
(iii) Advance Income Tax paid (Against Interest Income) Note: 29 8,336,489 8,327,835
Total- 30,016,448 22,523,767
11. CASH AND CASH EQUIVALENTS: Tk. 575,484,695This consists of as follows:
A. Cash in Hand at Head Office 180,000 180,000
B. Cash at Banks :
AB Bank Limited- STD Account: 4005.767482.430 211,546 211,990,756
BRAC Bank STD A/C: 150510 1,724,664 11,100,113,776
BRAC Bank A/C:150120 (Dividend) 11,686,208 -
1,436,202,154
777,543,982
Malek Siddiqui Wali
Chartered Accountants
JUNE'11 JUNE'10
Amount in Taka
MALEK SPINNING MILLS LIMITEDNOTES OF FINANCIAL STATEMENT
AS AT 30TH
JUNE 2011
Dhaka Bank Ltd.- Margin Account: $39,14,423.74 285,752,933 12,059,527
Eastern Bank Ltd.- Margin Account : US$ 8,31,988.03 60,735,126 14,534,295
Eastern Bank FC A/C: (Deposit-NRB IPO) 1,901,570 405,688,085
Eastern Bank STD A/C: BDT-(Deposit-IPO) # 0068 20,333,712 4,853,404,237
HSBC Bank-Margin A/C 001-007475-091 : US$ 26,31,629.81 192,108,976 7,538,559
HSBC CD A/C: 001-007475-011 - 7,401,433
One Bank Ltd.- Margin Account : US$ 811.59 59,246 10,832
Shahjalal Islami Bank Ltd.CD A/C: 4005 1110000252 8 20,448 2,800,074
Trust Bank Ltd.CD A/C: 0003-0210006613 752,504 4,835,374
Trust Bank Limited- Margin Account: $ 243.29 17,760 494,772
575,304,695 16,620,871,720
575,484,695 16,621,051,720
Note:
a) Cash balance is physically verified and Bank balances are reconciled and found in order.
b) Export proceeds are realised in the Margin A/C and is utilized for Payment of Deferred L/C Payment for Raw Cotton.
c) Foreign Exchange Rate in different Banks as on 30.06.2011 are as HSBC Tk.73.00, Eastern Bank Ltd Tk.73.00,
One Bank Ltd Tk.73.00, Dhaka Bank Ltd. Tk.73.00 and Trust Bank Ltd. Tk.73.00
d) Deposited with BRAC Bank ltd and Eastern Bank Ltd are IPO share subscription money.
12. SHARE CAPITAL : Tk.
This is made-up as follows:
Authorised Capital :
20,00,00,000 Shares @ Tk. 10/- each 2,000,000,000 2,000,000,000
ISSUE, SUBCRIBED AND PAID-UP CAPITAL:
160,000,000 Ordinary Shares @ Tk.10/- each issued and paid up at par cash. 1,600,000,000 1,200,000,000
1,600,000,000 1,200,000,000
Percentage of Share Holding Position of different share holders are as follows:
S.L Name of Share Holder No.of Share Holding Amount Amount
1 Mr.A.Matin Chowdhury 110,400,000 110,400,000
2 Dr.Shamim Matin Chowdhury 110,000,000 110,000,000
3 Ms. Saima Matin Chowdhury 124,000,000 124,000,000
4 Mr.Azizur R.Chowdhury 153,600,000 153,600,000
5 Mr.A.F.M. Zubair 70,000,000 70,000,000
6 Mr.Shyan Zubair 32,000,000 32,000,000
7 Paragon Poultry Ltd. 100,000,000 100,000,000
8 Private Placement (Institutional) - - 500,000,000
9 General Public 90,000,000 900,000,000 -
TOTAL 1,600,000,000 1,200,000,000
Classification of shareholders by holding:
Distribution schedule of each class of equity security setting out the number of holders and percentage as at 30.06.2011
SL Holdings Percentage
1 2,200 0.001%
2 21,801,300 13.626%
3 5,045,500 3.153%
4 4,460,500 2.788%
5 2,616,000 1.635%
6 1,507,000 0.942%
7 1,688,500 1.055%
8 5,762,500 3.602%
9 19,007,500 11.880%
10 98,109,000 61.318%
160,000,000 100%
13. SHARE PREMIUM: 1,500,000,000 150,000,000
% of Holding
76
25,717
63
21
41
56.25%
2.00%
6.90%
6.88%
500 to 5,000 shares
37
297
10220,001 to 30,000 shars
40,001 to 50,000 shares
30,001 to 40,000 shares
9.60%
7.75%
4.38%
160,000,000
6.25%10,000,000
0.00%
1,600,000,000
No. of Holders
Total
7,000,000
100%
100,001 to 1,000,000 shares
Range of Holdings
11,040,000
Over 1,000,000 shares
11,000,000
3,200,000
12,400,000
15,360,000
Less than 500 shares 11
24409
5,001 to 10,000 shares 660
10,001 to 20,000 shares
50,001 to 100,000 shares
Malek Siddiqui Wali
Chartered Accountants
JUNE'11 JUNE'10
Amount in Taka
MALEK SPINNING MILLS LIMITEDNOTES OF FINANCIAL STATEMENT
AS AT 30TH
JUNE 2011
This represents issuance of 10,000,000 ordinary shares in September 2008 for Tk.25 each including premium of Tk. 15/- each
in compliance with The Securities and Exchange Commission (SEC) consent No.SEC/CI/CPLC (PVT.)-95/06/337 dated on
30.06.2008 and further Placement issuance of 50,000,000 ordinary shares October 2009 for Tk.25/- each including premium
of Tk.15 each in compliance with The Securities and Exchange Commission (SEC) consent No. SEC/CI/CPLC(PVT.)-95/
14. GENERAL RESERVE AND SURPLUS: Tk.
This is arrived as follows:
Balance as per last accounts 643,815,792 416,211,705
Add: Net Profit for this year 101,958,317 156,189,632
745,774,109 572,401,337
Add: Depreciation/Adjustment of Reserve for Revaluation of Fixed Assets 50,123,276 71,414,455
Less: Declared Cash Dividend 90,000,000 -
705,897,385 643,815,792
15. RESERVE FOR RE-VALUATION OF FIXED ASSETS: Tk. 1,000,353,737
This calculation is arrived as follows:
Balance as on 01.07.2010 1,050,477,013 1,121,891,469
Less: Depreciation for this year on Revaluated assets 50,123,276 71,414,455
Written Down Value as at 30.06.2011 1,000,353,737 1,050,477,013
Note: Details of Adjustment of Reserve for Re-valuation of Fixed Assets is given in the Annexure-1
16. SHARE MONEY DEPOSIT (IPO) -
This is arrived as follows :
Total - 16,375,175,584
17. LONG TERM LOAN: Tk.
This is arrived as follows :
Eastern Bank Limited 112,844,912 -
United Leasing Co. Ltd. 2,870,046 -
Total 115,714,958 -
Less: Current Portion of Long Term Loan - -
115,714,958 -
18. SHORT TERM LOAN : Tk.
This consists of as follows :
A. Import Loan:
Eastern Bank Ltd 11,497,591 57,821,988
One Bank Ltd 5,927,635 26,759,729
Dhaka Bank Ltd - 2,129,570
17,425,226 86,711,287
B. Overdraft:
Eastern Bank Ltd A/C:180 & 011 43,590,214 77,707,741
Dhaka Bank Ltd OD A/C: 207.175.23 25,300,320 27,462,269
One Bank Ltd OD A/C: 16426008 19,334,546 18,862,809
HSBC OD A/C: 001-007475-011 25,667,818 -
115,714,958
705,897,385
dated on June 03, 2009 and further issuance of IPO of 4,00,00,000 ordinary shares on July 2010 for Tk. 25/- each including
Premium of Tk. 15/- each in compliance with the Securities and Exchange Commission (SEC) consent No. SEC/CI/IPO-
118/2010/462 dated April 15, 2010.
136,047,801
Malek Siddiqui Wali
Chartered Accountants
JUNE'11 JUNE'10
Amount in Taka
MALEK SPINNING MILLS LIMITEDNOTES OF FINANCIAL STATEMENT
AS AT 30TH
JUNE 2011
Citibank N.A OD A/C: G010000200558006 4,729,677 2,061,074
118,622,575 126,093,893
136,047,801 212,805,180
Note: The above Import Loan and Overdraft loans are secured against hypothecation of Stocks and Book Debts.
19. LIABILITIES FOR REFUNDABLE IPO SHARE MONEY : Tk. 14,971,455
This is arrived as follows :
Eastern Bank FC A/C: (Deposit- NRB IPO) 1,901,570 -
Eastern Bank STD A/C: BDT (Deposit IPO) 13,069,885 -
Total 14,971,455 -
20. SECURITY DEPOSIT AGAINST SALES: - 6,000,000
21. ACCEPTANCE LIABILITY FOR RAW COTTON & MACHINERY:Tk.2,045,647,341
This is arrived as follows :
A. Raw Cotton:
Eastern Bank Limited 702,776,637 82,643,075
Dhaka Bank Limited 387,749,991 111,905,623
Trust Bank Limited - 81,966,587
HSBC 955,120,713 27,799,792
2,045,647,341 304,315,076
B. Machinery:
Eastern Bank Limited - 128,259,961
- 128,259,961
2,045,647,341 432,575,037
Note:
i) Acceptance liability represents the deferred payment of L/C for Imported Raw Materials for the period of 180 Days.
22. CREDITORS AND ACCRUALS: Tk.
This is arrived as follows:
Gas Bill Payable 4,263,680 10,328,577
Electricity Bill Payable 113,036 223,516
Audit Fees Payable 75,000 75,000
Legal Fees Payable - 60,000
Office Rent Payable - 163,080
Salary & Wages Payable 7,340,699 6,269,490
Tax Deduction at Source 213,400 -
Income Tax Payable Note: 22.A 29,667,317 24,039,638
Contribution to WPPF Payable 57,065,940 50,484,658
Directors Remuneration Payable 321,062 385,000
Accounts Payable for Goods Supplies & Others 25,840,360 12,259,105
Accrued Interest - 872,382
124,900,493 105,160,447
a) Accounts Payable for Goods Supplies and others represents regular suppliers of packing materials, ball-bearing, belts, fuel
& lubricants, stationary items and others.
b) All accounts payable were paid on regular basis.
c) Factory Salary and Wages payable for the month of 30th June 2011
22.A. PROVISION FOR INCOME TAX: 29,667,317
This is arrived as follows:
124,900,493
Malek Siddiqui Wali
Chartered Accountants
JUNE'11 JUNE'10
Amount in Taka
MALEK SPINNING MILLS LIMITEDNOTES OF FINANCIAL STATEMENT
AS AT 30TH
JUNE 2011
Balance as per Last Account: 24,039,638 31,989,834
Add : Additional Income Tax paid: 6,200,000 -
Add : Provision made for this year: Note: 33 29,667,317 31,854,745
59,906,955 63,844,579
Less: Payment for Current year Note: 22.A-1 - 38,160,047
Less: Payment/adjustment for Last year 30,239,638 1,644,894
Total Payment/Adjustment for this year: 30,239,638 39,804,941
Total 29,667,317 24,039,638
Tk. - 872,382
23. DIVIDEND PAYABLE: TK. 10,968,740 -
24. SALES: Tk.
Export Sales 3,509,105,802 1,978,824,374
3,509,105,802 1,978,824,374
25. COST OF GOODS SOLD: Tk.
This is made-up as follows:
Raw Material Consumed Note: 25-(A) 3,031,527,455 1,396,476,339
Direct Expenses Note: 25-(B) 60,704,588 54,308,342
Factory Overhead Note: 25-(C). 325,315,600 286,982,899
Total Manufacturing Cost 3,417,547,642 1,737,767,580
Work-in-Process- Opening 57,900,914 54,298,593
Cost of Goods available for Use 3,475,448,556 1,792,066,173
Work-in-Process- Closing 83,553,971 57,900,914
Cost of Production 3,391,894,586 1,734,165,260
Finished Goods- Opening 133,749,810 92,471,545
Cost of Goods Available for Sales 3,525,644,396 1,826,636,805
Finished Goods- Closing 216,027,797 133,749,810
Cost of Goods Sold: 3,309,616,599 1,692,886,994
25- (A) RAW MATERIALS CONSUMED: Tk.
This is accounted as follows:
Opening Inventory Raw Materials 242,298,486 257,270,930
Add: Purchase during the period 3,342,714,929 1,381,503,895
Less: Closing Inventory of Raw Materials 553,485,960 242,298,486
Raw Materials Consumed 3,031,527,455 1,396,476,339
25- (B) DIRECT EXPENSES: TK.
Direct Labour/Wages 60,288,884 54,159,694
Overtime Wages 415,704 148,648
60,704,588 54,308,342
25- (C) FACTORY OVERHEAD:Tk.
Factory Salary and Allowances 28,938,926 23,352,863
Electricity Charges 1,554,216 4,028,337
Gas Charges 58,132,802 54,827,627
Repairs & Maintenance 33,679,366 15,536,730
Packing Materials 28,137,662 22,097,690
Fuel & Oil 6,143,138 9,552,082
Insurance Premium 2,223,766 2,223,766
325,315,600
60,704,588
3,031,527,455
3,309,616,599
3,509,105,802
Malek Siddiqui Wali
Chartered Accountants
JUNE'11 JUNE'10
Amount in Taka
MALEK SPINNING MILLS LIMITEDNOTES OF FINANCIAL STATEMENT
AS AT 30TH
JUNE 2011
Stores & Accessories consump. Note: 26( C)-i 63,419,731 11,819,987
Entertainment 1,499,478 1,598,315
Telephone, Mobile & Fax 176,777 184,053
Statonery Charges 623,516 562,904
Printing Charges 265,777 95,402
Other Carrying Charges 80,054 70,845
Office Expenses 420,208 56,043
Vehicles Maintenance 683,971 1,415,200
Conveyances 35,927 39,716
House Rent for Worker Shed 443,950 357,650
Medical Expenses 23,005 -
Miscellaneous Exp. 74,275 -
Depreciation Note: 4 98,759,055 139,163,689
Total Factory Overhead- 325,315,600 286,982,899
25 ( C)-i STORES AND ACCESSORIES CONSUMED: Tk. 63,419,731
Opening stock of Stores & accessories 106,379,883 100,722,206
Add: Purchase during the year 22,254,538 17,477,664
Less: Closing Stock of Stores & Accessories 65,214,690 106,379,883
Total Consumed- 63,419,731 11,819,987
26. OPERATING EXPENSES: Tk.
This is arrived at as follows:
Salaries & Allowances 12,703,037 10,913,361
Festival Bonus 889,647 921,275
Director's Remuneration 5,005,000 5,005,000
Fees, Forms & Others 852,719 465,055
Audit Fees 75,000 75,000
Legal Fees - 60,000
Printing & Stationary 2,930,434 883,754
Telephone,Mobile & Internet Expenses 1,227,608 1,154,382
Postage & Stamp 137,014 34,984
Vehicle Maintenance 3,574,095 3,328,929
Miscellaneous Expenses 4,978,323 2,267,923
Office Rent 353,340 326,160
Rate & Taxes 234,000 472,247
Carriage Outward 2,459,075 1,979,470
Consultancy Fees - 403,347
Entertainment 623,368 263,880
Office Expenses - 355,838
Fuel for Head Office Generator 764,200 669,700
Advertisement & Publicity Expenses - 31,920
Security Charges 276,527 -
Gardening Expenses 13,409 73,579
Travelling & Conveyance 1,521,684 859,457
Uniform / Livery Security - 262,402
Repairs & Maintenance 19,350,030 1,176,874
Books and periodicals - 3,409
Medical Expenses 32,590 64,140
Credit Rating Charges - 300,000
Software Maintenance Expenditure 20,000 758,000
61,628,145
Malek Siddiqui Wali
Chartered Accountants
JUNE'11 JUNE'10
Amount in Taka
MALEK SPINNING MILLS LIMITEDNOTES OF FINANCIAL STATEMENT
AS AT 30TH
JUNE 2011
Depreciation Note: 4 3,607,045 1,609,999
61,628,145 34,720,085
27. FINANCIAL EXPENSES: Tk.
This is arrived as follows:
i. EASTERN BANK LTD.:
Interest on Long Term Loan 4,616,345 312,179
Interest on Short Term Loan 28,806,713 5,230,953
Interest on Overdraft 3,297,001 8,348,896
Bank Charges & Commission 5,277,470 1,967,531
Export L/C Negotiation Commission 173,459 811,062
Interest on Bill Discount 3,245,600 5,983,049
Total = 45,416,587 22,653,669
ii. HSBC:
Interest on Short Term Loan - 2,181,636
Bank Charges & Commission 468,519 273,094
Export L/C Negotiation Commission 2,003,230 915,502
Interest on Overdraft 551,853 1,340,194
Interest on Bill Discount 4,046,708 2,324,562
Total = 7,070,309 7,034,987
iii. DHAKA BANK LTD.:
Interest on Long Term Loan - 2,729,897
Interest on Short Term Loan 5,578,422 716,863
Interest on Overdraft 3,031,083 3,598,874
Bank Charges and Commission 5,359,145 1,319,074
Export L/C Negotiation Commission 2,332,428 733,941
Interest on Bill Discount 2,397,059 3,298,161
Total = 18,698,137 12,396,810
iv. ONE BANK LTD.:
Interest on Long Term Loan - 2,138,366
Interest on Short Term Loan - 712,833
Interest on Overdraft 1,954,311 1,504,847
Bank Charges & Commission - 85,336
Export L/C Negotiation Commission 275,534 236,222
Interest on Bill Discount 2,687,193 4,308,732
Total = 4,917,038 8,986,336
v. TRUST BANK LTD.:
Interest on Long Term Loan - 2,725,693
Interest on Short Term Loan 1,153,051 103,955
Bank Charges and Commission 367,836 21,680
Export L/C Negotiation Commission 26,902 222,376
Interest on Bill Discount 389,669 2,027,677
Total 1,937,458 5,101,381
vi. SHAHJALAL ISLAMI BANK LTD.:
Interest on Long Term Loan - 5,251,146
Bank Charge and Commission 1,958 3,000
Export L/C Negotiation Commission - 51,399
Interest on Bill Discount - 217,771
Total 1,958 5,523,316
vii. CITIBANK NA:
Interest on Short Term Loan - 2,102,559
Interest on Overdraft 432,384 2,261,961
Bank Charges and Commission 502,450 7,975
79,041,915
Malek Siddiqui Wali
Chartered Accountants
JUNE'11 JUNE'10
Amount in Taka
MALEK SPINNING MILLS LIMITEDNOTES OF FINANCIAL STATEMENT
AS AT 30TH
JUNE 2011
Total 934,834 4,372,495
viii. IPDC:
Interest on Term Loan - 2,768,780
Total - 2,768,780
ix. UNITED LEASING CO. LTD.:
Interest on Lease Finance 36,933 142,727
Total 36,933 142,727
x. AB BANK LTD
Bank Charges and Commission 12,156 11,236
Total 12,156 11,236
xi. BRAC BANK LTD
Bank Charges and Commission 16,506 11,236
Total 16,506 11,236
Total Financial Expenses- 79,041,915 68,991,737
28. LOSS ON SALE OF FIXED ASSETS: Tk. Nil
Written down value of Cars: - 1,610,135
Sale Price - 1,112,300
Total Loss on Sale of Fixed Assets: - 497,835
29. OTHERS INCOME : Tk.
Interest Received from FDR A/C with Eastern Bank Ltd. - 2,218,536
Interest Received from FDR A/C with Dhaka Bank Ltd. - 947,222
Interest Received from Dividend A/C with BRAC Bank Ltd. 791,593 -
Interest Received from STD A/C with AB Bank Ltd. 1,783,517 35,142,628
Interest Received from STD A/C with BRAC Bank Ltd (IPO) 54,851,711 33,507,885
Interest Received from STD A/C with Eastern Bank Ltd (IPO) 25,938,071 11,462,079
83,364,891 83,278,349
30. OTHER EXPENSES (Non Operating Exp.): Tk.
AGM Expenses 3,412,659 -
Advertisment & Publicity Expenses of Financial reports. 564,460 -
3,977,119 67,064,623
31. PROVISION FOR WORKER'S PROFIT PARTICIPATION FUND:
Provision for Contribution to WPPF 6,581,282 9,897,072
6,581,282 9,897,072
Note: This represents 5% of net profit before tax of the company and is payable to workers as per provision defined
in the Labour Law 2006.
32. INCOME TAX (CURRENT TAX) PROVISION: Tk.
Tax Tax
i) On operating Income 15% 7,835,679 25,774,598
ii) On Net other Income 27.50% 21,831,637 6,080,147
Total 29,667,317 31,854,745
Note- Corporate Tax rate for Textile Sector is 15%
83,364,891
79,387,772
131,625,634
52,237,861
29,667,317
3,977,119
Operating Income
Malek Siddiqui Wali
Chartered Accountants
JUNE'11 JUNE'10
Amount in Taka
MALEK SPINNING MILLS LIMITEDNOTES OF FINANCIAL STATEMENT
AS AT 30TH
JUNE 2011
33. BASIC EARNINGS PER SHARE (EPS): Tk. 0.64
The computation of EPS is given below:
(a) Net Profit after Tax for the period 101,958,317 156,189,632
(b) Number of Total Share (Weighted Avg.) Note: 33(B) 159,342,466 103,561,644
Basic Earnings per Share (a/b): 0.64 1.51
33.(B) WEIGHTED AVERAGE NO.OF SHARES OUTSTANDING:
For the period from 1st July 2010 to 30th June 2011:
1st July 2010 to 6th July 2010 120,000,000 6 1,972,603
7th July 2010 to 30th June 2011 160,000,000 359 157,369,863
159,342,466 Total
Date outstandingShares
outstandingWeighted ShareDays
Malek Siddiqui Wali
Chartered Accountants
ANNEXURE : 1
AS ON
01.07.2010ADDITION ADJUSTMENT
AS ON
30.06.201101.07.2010 THIS PERIOD ADJUSTMENT
AS ON
30.06.2011
(A)-
1 Land and Land Development 69,736,276 69,736,276 0% - - - 69,736,276
2 Factory Building 312,163,793 1,107,580 313,271,373 5% 205,621,928 5,382,472 211,004,400 102,266,973
3 Plant and Machinery 1,217,598,973 6,683,941 1,224,282,914 7.5% 757,612,278 35,000,298 792,612,576 431,670,339
4 Lease Assets (Plant and Machinery) 12,753,116 12,753,116 10% 2,423,092 1,033,002 3,456,094 9,297,022
5 Electrical Installation 46,981,626 73,000 47,054,626 15% 29,114,238 2,691,058 31,805,297 15,249,329
6 Tubewell and Water Pump 2,463,406 2,463,406 15% 1,814,214 97,379 1,911,593 551,813
7 Furniture and Fixtures 3,011,440 74,378 3,085,818 10% 1,206,202 187,962 1,394,164 1,691,654
8 Office Equipments 7,465,191 1,242,328 8,707,519 15% 3,513,301 779,133 4,292,434 4,415,085
9 Gas Line Installation 7,733,554 2,884,830 10,618,384 15% 2,992,808 1,143,836 4,136,645 6,481,740
10 Loose Tools and Equipment 1,254,088 1,254,088 15% 1,101,355 22,910 1,124,265 129,823
11 Motor Vehicle 14,321,899 12,982,000 27,303,899 15% 9,801,826 2,625,311 12,427,137 14,876,762
12 Telephone (PABX) Installation 400,000 400,000 15% 321,250 11,812 333,063 66,937
13 Crockaries and Cutlaries 50,777 50,777 15% 31,932 2,827 34,758 16,019
14 Generator 99,877,786 99,877,786 10% 67,370,413 3,250,737 70,621,150 29,256,636
15 Fire Installation 253,100 253,100 15% 159,191 14,086 173,277 79,823
Total of "A" 1,796,065,025 25,048,057 - 1,821,113,083 1,083,084,029 52,242,824 - 1,135,326,852 685,786,230
AS ON
01.07.2010ADDITION ADJUSTMENT
AS ON
30.06.201101.07.2010 THIS PERIOD ADJUSTMENT
AS ON
30.06.2011
(B)-REVALUATION OF FIXED ASSETS :
1 Land 337,982,604 - - 337,982,604 - - - - - 337,982,604
2 Building & Civil Construction 146,872,234 - - 146,872,234 5% 14,320,043 6,627,610 - 20,947,652 125,924,582
3 Machineries 715,978,047 - - 715,978,047 7.5% 136,035,829 43,495,666 - 179,531,495 536,446,552
Total of "B" 1,200,832,885 1,200,832,885 - 150,355,872 50,123,276 - 200,479,148 1,000,353,737
GRAND TOTAL ( A+B) 2,996,897,910 25,048,057 - 3,021,945,968 1,233,439,900 102,366,100 - 1,335,806,000 1,686,139,968
Depreciation Charged to:
Operating Expenses 3,607,045
Factory Overhead 98,759,055
Tk. 102,366,100
REVALUATED FIXED ASSETS SCHEDULE AS ON 30TH
JUNE 2011
RATE
RATE
COST DEPRECIATION
MALEK SPINNING MILLS LIMITEDFIXED ASSETS SCHEDULE AS ON 30
TH JUNE 2011
WRITTEN DOWN
VALUE AS ON
30.06.2011
COST DEPRECIATION WRITTEN DOWN
VALUE AS ON
30.06.2011
PARTICULARS
PARTICULARS
Malek Siddiqui Wali
Chartered Accountants
Notes JUNE'11 JUNE'10
Taka Taka
ASSETS :
Non-Current Assets : 4,759,544,212 3,270,596,908
Property, Plant and Equipment 1.1 4,670,958,362 3,240,254,822
Capital Work-in-Progress 2.1 52,445,198 -
Pre-operating Expenses 3.1 21,719,065 12,315,103
Trial and operation Loss 4.1 14,421,587 18,026,983
Current Assets : 6,003,049,525 19,229,869,735
Inventories 5.1 3,197,764,748 1,274,585,216
Accounts Receivable 6.1 1,934,101,539 1,140,280,454
Interest Receivable 7.1 - 10,315,871
Advances,Deposits and Pre-payments 8.1 111,816,728 131,446,214
Cash and Cash Equivalents 9.1 759,366,510 16,673,241,980
TOTAL ASSETS : 10,762,593,737 22,500,466,643
SHAREHOLDER'S EQUITY AND LIABILITIES:
Shareholder's Equity : 4,858,569,829 20,318,927,399
Share Capital 10.1 1,600,000,000 1,200,000,000
Share Premium 11.1 1,500,000,000 900,000,000
General Reserve and Surplus 12.1 640,273,871 748,437,099
Tax Holiday Reserve 13.1 117,942,221 44,837,703
Reserve for Re-valuation of Fixed Assets 14.1 1,000,353,737 1,050,477,013
Share Money Deposit 15.1 - 16,375,175,584
Minority Interest 16.1 17,180,575 30,131,556
Non Current Liabilities: 1,069,420,517 472,942,709
Long Term Loan 17.1 1,069,420,517 472,942,709
Current Liabilities : 4,817,422,816 1,678,464,977
Short Term Loan 18.1 643,841,642 367,801,166
Current Portion of Long Term Loan 19.1 249,384,914 250,601,084
Security Deposit against Sales 20.1 - 6,000,000
Acceptance Liabilities 21.1 3,082,214,258 787,245,693
Credirors and Accruals 22.1 813,518,856 250,643,934
Unclaimed Dividend 23.1 10,968,740 -
Loan from Directors 24.1 2,522,950 16,173,100
Liabilities for refundable IPO Share money 25.1 14,971,455 -
TOTAL SHAREHOLDER'S EQUITY AND LIABILITIES : 10,762,593,737 22,500,466,643
Net Assets Value Per Share (NAV) 30.49 38.08 Par Value Tk.10
The annexed notes 1.1 to 36.1 form an integral part of these financial statement.
sd/- sd/- sd/- sd/- A.Matin Chowdhury A.F.M. Zubair B.K. Chaki Syed Saiful Haque
Managing Director Director Chief Financial Officer Company Secretary
As per our report of same date
sd/-Dhaka ( Malek Siddiqui Wali )
October 27,2011 Chartered Accountants
MALEK SPINNING MILLS LIMITEDCONSOLIDATED BALANCE SHEET
AS AT 30TH
JUNE 2011
Malek Siddiqui Wali
Chartered Accountants
Notes JUNE'11 JUNE'10
Taka Taka
Sales 26.1 6,648,709,202 3,439,506,873
Cost of Goods Sold 27.1 5,994,995,712 2,862,863,727
Gross Profit : 653,713,490 576,643,146
Operating Expenses 28.1 88,082,946 43,079,955
Financial Expenses 29.1 297,231,447 213,717,629
Amortization of Trial and operation Expenses 30.1 3,605,397 4,506,746
Loss on Sale of Fixed Assets 31.1 - 497,835
Operating Profit : 264,793,701 314,840,981
Add : Other Income 32.1 83,369,833 83,278,349
Less: Other Expenses 33.1 3,977,119 67,064,623
Net Operating Profit : 344,186,415 331,054,707
Provision for Contribution to WPPF 34.1 21,258,279 16,235,799
Profit before Tax : 322,928,136 314,818,908
Provision for Income Tax : 35.1 32,061,335 31,854,745
Net Profit for this period 290,866,801 282,964,163
Transferred to Tax Holiday Reserve 73,104,517 34,229,123
Net Profit after Tax Holiday Reserve 217,762,284 248,735,040
Minority Interest 16,855,266 12,677,453
Net Profit Balance 200,907,019 236,057,587
(Transferred to the Statement of Changes in Equity)
Earnings per Share (EPS) 36.1 1.72 2.73
Par Value Tk.10
The annexed notes 1.1 to 36.1 form an integral part of these financial statement.
sd/- sd/- sd/- sd/-A.Matin Chowdhury A.F.M. Zubair B.K. Chaki Syed Saiful Haque
Managing Director Director Chief Financial Officer Company Secretary
As per our report of same date
sd/-Dhaka ( Malek Siddiqui Wali )
October 27,2011 Chartered Accountants
MALEK SPINNING MILLS LIMITED
FOR THE YEAR ENDED 30TH
JUNE 2011
CONSOLIDATED INCOME STATEMENT
Malek Siddiqui Wali
Chartered Accountants
JUNE'11 JUNE'10
Taka Taka
CASH FLOW FROM OPERATING ACTIVITIES :
Collection from Turnover & Bills Receivable 6,044,552,986 3,033,122,500
Collection from Other Income 83,369,833 72,962,478
Payment for Raw Materials, Indirect Materials and other expenses (4,851,641,258) (2,779,378,824)
Payment for Operating Expenses (80,685,577) -
Payment for Other Expenses (3,977,119) (67,064,623)
Payment of Financial Expenses (297,231,447) (200,665,262)
Payment for Income Tax (30,239,638) (38,160,047)
Net Cash provided by Operating Activities 864,147,781 20,816,222
CASH FLOW FROM INVESTING ACTIVITIES :
Acquisition of Fixed Assets (580,617,964) (407,238,845)
Acquisition of Capital work in progress 134,010,532 -
Disposal of Fixed Assets - 1,112,300
Pre-operating expenses (10,298,036) (7,923,430)
Invenstment to Sub-sidiary Co. against Share Capital (466,340,000) -
Net cash used in Investing Activities (923,245,468) (414,049,975)
CASH FLOW FROM FINANCING ACTIVITIES :
Bank Loan Receipt/(Repayment) (442,561,612) (625,998,685)
Loan from Directors (184,717,303) -
Advance Deposit & Prepayments 41,976,765 (73,191,040)
Issuance of Share Capital 400,000,000 500,000,000
Share Premium Received 600,000,000 750,000,000
Liability for refunable IPO Share Money 14,971,455 -
Dividend Payment (79,031,260) -
Redemption of Share Money Deposit (16,236,225,584) 16,375,175,584
Net cash used in Financing Activities (15,885,587,539) 16,925,985,859
Increase/(Decrease) in Cash and Cash Equivalents (15,944,685,226) 16,532,752,106
Cash & Cash Equivalents at 1st July 2010 (MSML, STL & NSL) 16,673,241,980 140,489,874
Cash & Cash Equivalents at 1st July 2010 (J.M. & TITAS) 30,809,756 -
16,704,051,736 140,489,874
Cash and Cash Equivalents at 30th
June 2011 759,366,510 16,673,241,980
Net Operating Cash Flow Per Share (NOCFPS) 5.42 0.20
Par Value Tk.10
sd/- sd/- sd/- sd/-A.Matin Chowdhury A.F.M. Zubair B.K. Chaki Syed Saiful Haque
Managing Director Director Chief Financial Officer Company Secretary
As per our report of same date
sd/-Dhaka ( Malek Siddiqui Wali )
October 27,2011 Chartered Accountants
MALEK SPINNING MILLS LIMITEDCONSOLIDATED CASH FLOW STATEMENT
FOR THE ENDED 30TH
JUNE 2011
Malek Siddiqui Wali
Chartered Accountants
Share Share
Premium Money
Deposit
Balance as on 1st July 2010 1,200,000,000 1,050,477,014 44,837,703 748,437,098 900,000,000 16,375,175,584 20,318,927,399
Balance as on 1st July 2010
(J.M. & TITAS) (324,861,522) (324,861,522)
Net Profit during the period - - - 200,907,019 - 200,907,019
Isuance of Share Capital 400,000,000 400,000,000
Isuance of Bonus Share
(J.M.) (12,498,000) (12,498,000)
Profit & Loss appropriation
A/C-Titas (Adjustment)68,166,000 68,166,000
Share Money Deposit - (16,375,175,584) (16,375,175,584)
Reserve for revaluation
Fixed Assets - (50,123,276) - 50,123,276 - -
Tax Holiday Reserve - - 73,104,517 - 73,104,517
Share Premium 600,000,000 600,000,000
Dividend for 2009-2010 (90,000,000) (90,000,000)
As on 30th June 2011 1,600,000,000 1,000,353,737 117,942,221 640,273,871 1,500,000,000 - 4,858,569,829
(0)
Share Share
Premium Money
Deposit
Balance as on 1st July 2009 700,000,000 1,121,891,469 10,608,580 440,965,056 150,000,000 2,423,465,105
Net Profit during the period 236,057,587 236,057,587
Isuance of Share Capital 500,000,000 500,000,000
Share Money Deposit 16,375,175,584 16,375,175,584
Reserve for revaluation -
Fixed Assets (71,414,455) 71,414,455 -
Tax Holiday Reserve 34,229,123 34,229,123
Share Premium 750,000,000 750,000,000
As on 30th June 2010 1,200,000,000 1,050,477,014 44,837,703 748,437,098 900,000,000 16,375,175,584 20,318,927,399
sd/- sd/- sd/- sd/- A.Matin Chowdhury A.F.M. Zubair B.K. Chaki Syed Saiful Haque
Managing Director Director Chief Financial Officer Company Secretary
As per our report of same date
sd/-Dhaka ( Malek Siddiqui Wali )
October 27,2011 Chartered Accountants
MALEK SPINNING MILLS LIMITED
General Reserve
and Surplus Particulars Share Capital
Reserve for
Revaluation of
Fixed Assets
Total Tax holiday
Reserve Particulars Share Capital
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30TH
JUNE 2010
Tax holiday
Reserve
FOR THE YEAR ENDED 30TH
JUNE 2011
General Reserve
and Surplus
Reserve for
Revaluation of
Fixed Assets
Total
Malek Siddiqui Wali
Chartered Accountants
JUNE'11 JUNE'10
1.1 CONSOLIDATED FIXED ASSETS: Tk. 4,670,958,362
Details of Fixed Assets and Depreciation as at 30th
June 2011 are shown in the Annexure-1.1
This is as follows:
COST:
Cost as at 01.07.2010 4,707,140,866 3,038,036,155
Addition this year 580,617,964 407,238,845
5,287,758,830 3,445,275,000
Less: Sales/Adjustment - 2,193,000
Total Cost as at 30.06.2011 5,287,758,830 3,443,082,000
Accumulated Depreciation as at 01.07.2010 1,317,534,604 1,045,414,256
Less: Adjustments during this year - 582,865
Add: Depreciation for this year 299,619,602 208,472,800
Total Depreciation as at 30.06.2011 1,617,154,206 1,253,304,191
Written Down Value as at 30.06.2011 3,670,604,624 2,189,777,809
REVALUATION:
Revaluation of Fixed Assets as at 01.07.2010 1,050,477,014 1,121,891,469
Less: Depreciation this year 50,123,276 71,414,455
Written Down Value as at 30.06.2011 1,000,353,738 1,050,477,014
Total Written Down Value 4,670,958,362 3,240,254,822
Allocation of depreciation charges for the year has been made in the accounts as follows:
Factory Overhead 342,345,509 277,654,839
Administrative Overhead 7,397,369 2,232,416
349,742,878 279,887,255
2.1 CONSOLIDATED CAPITAL WORK-IN-PROGRESS: 52,445,198 -
3.1 CONSOLIDATED PRE-OPERATING EXPENSES: 21,719,065 12,315,103
Preoperating expenses consists of Name registration cost, Market survey cost, Feasibility study cost, consultancy
cost, salary and other.
4.1 CONSOLIDATED TRIAL AND OPERATION LOSS:TK. 14,421,587
Balance as per Last Accounts 18,026,983 22,533,729
Less: Adjustments with current year profit 3,605,397 4,506,746
14,421,587 18,026,983
5.1. CONSOLIDATED INVENTORIES : Tk. This consists of as follows :
i) Raw Materials 1,131,727,289 383,131,379
ii) Stock-in-Transit 1,019,273,167 542,283,911
iii) Work-in-Process 114,312,963 77,078,574
iv) Finished Goods 859,315,250 162,370,057
v) Stores and Accessories 73,136,079 109,721,295
3,197,764,748 1,274,585,216
6.1 CONSOLIDATED ACCOUNTS RECEIVABLE : Tk. 1,934,101,539
MALEK SPINNING MILLS LIMITEDNOTES OF CONSOLIDATED FINANCIAL STATEMENT
AS AT 30TH
JUNE 2011
Amount in Taka
3,197,764,748
Malek Siddiqui Wali
Chartered Accountants
JUNE'11 JUNE'10
MALEK SPINNING MILLS LIMITEDNOTES OF CONSOLIDATED FINANCIAL STATEMENT
AS AT 30TH
JUNE 2011
Amount in Taka
Trade debtors occurred in the ordinary course of business are unsecured but considered good.
i) Malek Spinning Mills Ltd. 777,543,982 629,187,317
ii) Salek Textile Ltd. 807,844,260 511,093,136
iii) JM Fabrics Ltd. 96,815,863 -
iv) Titas Spinning & Denim Co. Ltd. 251,897,434 -
1,934,101,539 1,140,280,454
7.1 CONSOLIDATED INTEREST RECEIVABLE: - 10,315,871 Interest Receivable on IPO share money deposit
8.1 CONSOLIDATED ADVANCE, DEPOSIT AND PRE-PAYMENTS: Tk. 111,816,728 111,816,728 This comprises as follows :
Advance against construction materials, Suppliers & Others 32,570,588 23,150,321
Advance to Employees 5,000 8,000
Advance to Sikder Construction (for Land purchase) 9,000,000 9,000,000
Security Deposit on REB 178,875 178,875
Security Deposit on Titas Gas T&D Co. 17,178,761 9,627,261
Advance against Income Tax Note: 8.1-A 36,867,601 22,523,767
Advance to Fire Insurance Premium Paid 1,860,193 1,366,474
Security Deposit to CDBL 500,000 500,000
Advance to CEGIS(Centre Environment & Geographics) 410,000 250,000
Advance to M/S Maznu Traders(For Land purchase) 73,073 43,308,000
Advance to M/S Maznu Traders(For Land Development) 300,000 -
Advance against Office Rent (Haji Mansur Ali) 7,593,750 -
Security Deposit to United Leasing Co. Ltd. 101,887 -
Security Deposit against LC margin 689,000 -
Advance to Sharif & Brothers(Land Purchase-Ashugonj) 4,488,000 -
Advance to others(Factory building construction) - 100,000
Advance to others(For Land purchase) - 21,433,516
111,816,728 131,446,214
8.1-A. CONSOLIDATED ADVANCE INCOME TAX:
This is made-up as follows:
Advance Income Tax paid (Against Export Proceeds) 18,506,618 954,439
Advance Income Tax paid (Against Yearly Income) 10,000,000 13,241,493
Advance Income Tax paid (Against Interest Income) 8,336,983 8,327,835
Advance Income Tax paid (Against Vehicle Fitness) 24,000 -
Total 36,867,601 22,523,767
9.1 CONSOLIDATED CASH AND CASH EQUIVALENTS: Tk. 759,366,510This is made-up of the followings:
A. Cash in Hand at Head Office 786,289 277,490
C. Cash at Banks :
AB Bank Ltd. STD A/C: 4005-767482-430 (MSML) 211,546 211,990,756
Brack Bank STD A/C: 150510 (Deposit with IPO) MSML 1,724,664 11,100,113,776
BRAC Bank (Dividend) A/C: 150120 (MSML) 11,686,208 -
CITI Bank N.A A/C :G010000200622006 (STL) 7,376,963 -
Dhaka Bank Ltd A/C : 207.100.6276 (STL) 2,905,174 3,216,095
Dhaka Bank USD Margin A/C:0032 (STL) 1,012,803 -
Dhaka Bank Ltd A/C : 207.100.6643 (NSL) 2,901,783 34,106,724
Malek Siddiqui Wali
Chartered Accountants
JUNE'11 JUNE'10
MALEK SPINNING MILLS LIMITEDNOTES OF CONSOLIDATED FINANCIAL STATEMENT
AS AT 30TH
JUNE 2011
Amount in Taka
Dhaka Bank Ltd.- Margin Account: (MSML) 285,752,933 12,059,527
Eastern Bank CD A/C: 5745 (NSL) 97,936 99,436
Eastern Bank Ltd. - Margin Account : USD (MSML) 60,735,126 14,534,295
Eastern Bank USD Margin A/C:0311738 (STL) 61,081,406 11,873,515
Eastern Bank CD A/C: 01011060020990 (STL) 294,475 411,259
Eastern Bank FC A/C-(Deposit-NRB IPO) MSML 1,901,570 405,688,085
Eastern Bank STD A/C: BDT (Deposit IPO) MSML 20,333,712 4,853,404,237
HSBC Bank CD A/C: (NSL) 88,386 100,011
HSBC Bank CD A/C:001-007475-011 (MSML) - 7,401,433
HSBC Bank USD Margin A/C: 091 (STL) 33,142,986 2,100,679
HSBC Bank-Margin A/C:091 USD (MSML) 192,108,976 7,538,559
Islami Bank-CD A/C: 010049410(Titas) 10,035,554 -
Islami Bank-Margin A/C: 59(Titas) 1,529,316 -
Islami Bank-FC A/C: 80 (USD)(Titas) 1,363,391 -
One Bank- Margin Account : USD (MSML) 59,246 10,832
Pubali Bank-CD A/C: 3311-901-12209(Titas) 17,848 -
Shahjalal Islami Bank A/C : 11100000252 8 (MSML) 20,448 2,800,074
Trust Bank CD A/C : 0003-0210006613 (MSML) 752,504 4,835,374
Trust Bank Ltd A/C: 0003-0210009816 (STL) 2,544,511 185,052
Trust Bank Ltd - Margin A/C: 5005000431(MSML) 17,760 494,772
Trust Bank Ltd - Margin A/C: 5025000028(STL) 862,559 -
Trust Bank Ltd.- CD A/C: (NSL) 1,852,208 -
Sonali Bank-CD A/C-JM 70,841 -
UCBL- FC Margin-JM 53,184,910 -
UCBL- Banani Branch-JM 2,216,064 -
UCBL- ERQ A/C, Banani Branch-JM 696,413 -
758,580,220 16,672,964,490
759,366,510 16,673,241,980
10.1 CONSOLIDATED SHARE CAPITAL : 1,600,000,000 1,200,000,000
11.1 CONSOLIDATED SHARE PREMIUM:
i) Malek Spinnig Mills Limited 1,500,000,000 900,000,000
It represents 10,00,00,000 ordinary shares of Tk.25 each including premium of Tk.15 each.
12.1 CONSOLIDATED GENERAL RESERVE & SURPLUS : Tk.640,273,871
This is arrived as follows :
Balance as per last accounts 423,575,577 440,965,057
Less: Issuance of Bonus Shares 12,498,000 -
Add: Net Profit during this year 200,907,019 236,057,587
611,984,595 677,022,644
Add: Depreciation of Reserve for Revaluation of Fixed Assets. 50,123,276 71,414,455
Less: Declared Cash Dividend 90,000,000 -
Add: P/L Appropriation A/C (Adjustment) 68,166,000 -
640,273,871 748,437,098
13.1 CONSOLIDATED TAX HOLIDAY RESERVE: TK. 117,942,221
Opening Balance 44,837,703 10,608,580.00
Add: Provided during this year 81,227,241 38,032,359
Malek Siddiqui Wali
Chartered Accountants
JUNE'11 JUNE'10
MALEK SPINNING MILLS LIMITEDNOTES OF CONSOLIDATED FINANCIAL STATEMENT
AS AT 30TH
JUNE 2011
Amount in Taka
Less: Minority Interest on Tax Holiday Reserve 8,122,724 3,803,236
Closing Balance 117,942,221 44,837,703
14.1 CONSOLIDATED RESERVE FOR RE-VALUATION OF FIXED ASSETS: Tk. 1,000,353,737
Revaluation of Assets are as follows:
Particulars
Land 337,982,604 337,982,604
Building and Civil Construction 146,872,234 146,872,234
Plant and Machinery 715,978,047 715,978,047
1,200,832,885 1,200,832,885
Less:Depreciation of Reserve for Re-valuation of Fixed Assets 200,479,148 150,355,872
1,000,353,737 1,050,477,013
Note: Detail of Adjustment of Reserve for Re-valuation of Fixed Assets is given in the annexed Annexure-1.1
15.1 SHARE MONEY DEPOSIT : -
Share Money Deposit (IPO) - 16,375,175,584
16.1 MINORITY INTEREST: TK. 17,180,575
Paid-up Capital 13,635,000 13,525,000
Retained Earnings (9,559,116) 11,624,589
Tax Holiday reserve 13,104,691 4,981,967
17,180,575 30,131,556
Note: This represents minority interest of Salek Textile Limited, Newasia Synthetics Limited, J.M. Fabrics Limited and
Titas Spinning & Denim Company Ltd.
17.1 CONSOLIDATED LONG TERM LOAN: Tk.=
This is arrived as follows:
i) Eastern Bank Limited 404,487,979 194,348,635
ii) Dhaka Bank Limited 168,938,521 316,488,683
iii) Trust Bank Limited 57,110,218 91,206,475
iv) HSBC 181,000,000 121,500,000
v) Islami Bank-A/C:19009 341,422,010 -
vi) Islami Bank-A/C:32408 37,450,867 -
vii) Islami Bank-A/C:32206 14,715,598 -
viii) Islami Bank-A/C:35411 2,706,395 -
ix) UCBL 108,103,797 -
x) United Leasing Co. Ltd. 2,870,046 -
1,318,805,431 723,543,793
Less: Current Portion of Long Term Loan Note: 19.1 249,384,914 250,601,084
1,069,420,517 472,942,709
18.1 CONSOLIDATED SHORT TERM LOAN: Tk.
This consists of as follows :
A. Import Loan:
Eastern Bank Ltd (MSML) 11,497,591 57,821,988
Eastern Bank Ltd (STL) 99,468,876 45,900,000
Islami Bank Ltd.(Titas) 195,098,171 -
One Bank Ltd (MSML) 5,927,635 26,759,729
Dhaka Bank Ltd (MSML) - 2,129,570
643,841,642
1,069,420,517
Malek Siddiqui Wali
Chartered Accountants
JUNE'11 JUNE'10
MALEK SPINNING MILLS LIMITEDNOTES OF CONSOLIDATED FINANCIAL STATEMENT
AS AT 30TH
JUNE 2011
Amount in Taka
Dhaka Bank Ltd (STL) 89,607,096 35,889,049
401,599,369 168,500,336
B. Overdraft:
Eastern Bank Ltd A/C: 01012050000180 & 11 (MSML) 43,590,214 77,707,741
Eastern Bank Ltd A/C: 01012040000780 (STL) 13,252,147 21,950,129
Eastern Bank Ltd A/C:(JM) 141,016 -
Citi Bank N.A A/C: G010000200622006 (STL) - 18,942,725
CITI Bank N.A A/C: G010000200558006 (MSML) 4,729,677 2,061,074
Dhaka Bank Ltd A/C: 207.175.23 (MSML) 25,300,320 27,462,269
United Commercial Bank Ltd.(J.M.) 46,440,144 -
Islami Bank Ltd. (Titas) 56,681,683 -
One Bank Ltd A/C: 16426 008 (MSML) 19,334,546 18,862,809
HSBC OD A/C :(JM) 1,500,139 -
HSBC OD A/C : 001-007475-011(MSML) 25,667,818 -
HSBC A/C: 001-241389-011 (STL) 5,604,568 32,314,083
242,242,273 199,300,830
643,841,642 367,801,166
19.1 CONSOLIDATED CURRENT PORTION OF LONG TERM LOAN : TK. 249,384,914
Eastern Bank Ltd. 85,342,532 86,558,702
Dhaka Bank Ltd. 95,484,592 95,484,592
HSBC 40,500,000 40,500,000
Trust Bank Ltd. 28,057,790 28,057,790
249,384,914 250,601,084
Note- According to Bangladesh Accounting Standard (BAS) 1 "Preparation of Financial Statements", Current portion of Long Term
Loan that are due for settlement within twelve month after the balance sheet date are current liabilities, therefore, the above
amount has been shown in current liabilities.
20.1 SECURITY DEPOSIT AGAINST SALES: TK. - 6,000,000
21.1 CONSOLIDATED ACCEPTANCE LIABILITIES: TK. 3,082,214,258
This is arrived as follows:
A. Raw Materials :
i) Eastern Bank Limited 812,450,646 167,778,630
ii) HSBC 1,225,087,325 106,914,738
iii) Islami Bank Ltd. 100,594,838 -
iv) Trust Bank Ltd - 118,463,295
v) UCBL 99,305,510 -
vi) Dhaka Bank Limited 828,774,819 265,829,068
3,066,213,138 658,985,732
B. Machinery :
i) UCBL 16,001,120 -
ii) Eastern Bank Ltd. - 128,259,961
16,001,120 128,259,961
3,082,214,258 787,245,693
22.1 CONSOLIDATED CREDITORS AND ACCRUALS : TK. 813,518,856
This is arrived as follows :
i) Gas Bill Payable 9,950,009 12,704,471
ii) Electricity Bill Payable 137,818 223,516
Malek Siddiqui Wali
Chartered Accountants
JUNE'11 JUNE'10
MALEK SPINNING MILLS LIMITEDNOTES OF CONSOLIDATED FINANCIAL STATEMENT
AS AT 30TH
JUNE 2011
Amount in Taka
ii) Telephone Bill Payable 276 -
iii) Audit Fee Payable 162,500 95,000
iv) Legal Fee Payable 10,000 85,000
v) Office Rent Payable 21,100 163,080
vi) Tax Deduction at Source 942,626 -
vii) VAT Payable 42,512 -
viii) Income Tax Payable 22.1-A 32,061,335 24,039,638
ix) Salary & Wages Payable 21,462,291 8,065,765
x) Contribution to WPPF Payable 80,046,216 58,787,937
xi) Director's Remuneration Payable 708,712 485,000
xii) Security Money of Various Party - 2,491,733
xiii) Accounts Payable for Goods Suppliers & Others 369,605,489 44,063,992
xiv) Accounts Payable for Waste Cotton Purchase 104,195,705 86,386,434
xv) Interest accrued 22.1-B 194,172,268 13,052,367
813,518,856 250,643,933
22.1-A. CONSOLIDATED PROVISION FOR INCOME TAX: Tk. 32,061,335
This is arrived as follows :
Balance as per Last Account 24,039,638 31,989,834
Add : Additional Income Tax paid: 6,200,000 -
Add: Provision made for this year Note: 36.1 32,061,335 31,854,745
62,300,973 63,844,579
Less: Payment Current year - 38,160,047
Less: Payment Last year Balance 30,239,638 1,644,894
Total Payment and Adjustment 30,239,638 39,804,941
32,061,335 24,039,638
22.1-B. INTERST ACCRUED: Tk. 194,172,268
Accrued Interst on Import Loan:
One Bank Limited - 872,382
Dhaka Bank Limited - 395,506
Islami Bank Ltd. 26,158,148 -
26,158,148 1,267,889
Accrued Interest on Long Term Loan:
Eastern Bank Limited - 1,077,830
Trust Bank Limited - 2,666,894
Dhaka Bank Limited - 8,039,754
Islami Bank Ltd. 168,014,120 -
168,014,120 11,784,478
194,172,268 13,052,367
23.1 UNCLAIMED DIVIDEND: 10,968,740 -
24.1 CONSOLIDATED LOAN FROM DIRECTOR: 2,522,950 16,173,100
It represents temporary loan taken for day to day expenditure.
25.1 Liabilities for refundable IPO Share money: 14,971,455 -
26.1 CONSOLIDATED SALES:Tk. 6,648,709,202
Malek Siddiqui Wali
Chartered Accountants
JUNE'11 JUNE'10
MALEK SPINNING MILLS LIMITEDNOTES OF CONSOLIDATED FINANCIAL STATEMENT
AS AT 30TH
JUNE 2011
Amount in Taka
Sales comprises of the following :
Export Sales 6,648,709,202 3,439,506,873
6,648,709,202 3,439,506,873
27.1 CONSOLIDATED COST OF GOODS SOLD: Tk. 5,994,995,712
This is as follows :
Raw Material Consumed Note: 27.1-A. 5,552,506,810 2,292,236,956
Direct Expenses Note: 27.1-B. 211,893,329 68,728,982
Factory Overhead Note: 27.1-C. 910,788,893 496,383,769
Total Manufacturing Cost 6,675,189,032 2,857,349,706
Work-in-Process- Opening 80,974,279 72,724,343
Cost of Goods available for use 6,756,163,311 2,930,074,049
Work-in-Process- Closing 114,312,963 77,078,574
Cost of Production 6,641,850,348 2,852,995,475
Finished Goods- Opening 212,460,614 172,238,309
Cost of Goods Available for Sales 6,854,310,962 3,025,233,784
Finished Goods- Closing 859,315,250 162,370,057
Cost of Goods Sold : 5,994,995,712 2,862,863,727
27.1-A. CONSOLIDATED RAW MATERIALS CONSUMED: Tk. 5,552,506,810
Particulars:
Opening Inventory of Raw Materials 417,014,557 374,050,838
Add: Purchase of Raw Materials 6,267,219,543 2,301,317,497
Less: Closing Stock of Raw Materials 1,131,727,289 383,131,379
Raw Materials Consumption : 5,552,506,810 2,292,236,956
27.1-B. CONSOLIDATED DIRECT EXPENSE:Tk.Direct Labour/Wages 210,667,977 68,410,121
Overtime Wages 1,225,352 318,861
211,893,329 68,728,982
27.1-C. CONSOLIDATED FACTORY OVERHEAD: Tk. 910,784,093Factory Salary and Allowances 42,670,631 29,178,230
Electricity Charges 1,969,423 4,028,337
Gas Charges 116,357,699 83,171,888
Agriculture Expenses 20,415 39,994
Repairs & Maintenance 62,226,292 23,224,441
Packing Materials 54,965,927 44,370,712
Fuel, Oil & Lubricant 17,494,298 12,506,981
Insurance Premium - Fire 10,581,787 3,590,240
Stores & Accessories consump. Note:27.1(C)-i 174,408,775 12,191,255
Entertainment 5,668,693 2,212,083
Telephone, Mobile & Fax 600,075 184,053
Statonery charges 1,248,283 956,437
Printing Charges 326,714 564,024
Other Carrying Charges 5,373,813 106,171
Other Overhead Expenses 13,904,033 105,829
Sub-contract Expenses 50,033,256 -
C&F agent commission 3,060,079 -
Lab test & Inspection charges 1,326,049 -
Rent, Rates & Taxes 51,250 -
Vehicles Maintenance 2,122,399 1,841,078
211,893,329
Malek Siddiqui Wali
Chartered Accountants
JUNE'11 JUNE'10
MALEK SPINNING MILLS LIMITEDNOTES OF CONSOLIDATED FINANCIAL STATEMENT
AS AT 30TH
JUNE 2011
Amount in Taka
Medical Expenses 132,959 17,687
Miscellaneous 123,045 22,385
Conveyance 3,328,739 59,452
House Rent for Worker Shed 443,950 357,650
Depreciation Note: 1.1 342,345,509 277,654,839
910,784,093 496,383,766
27.1(C )-i. CONSOLIDATED CONSUMPTION OF STORES AND ACCESSORIES: Tk. 174,408,775
Opening Stock of Stores and Accessories 109,721,295 101,410,318
Add: Purchase during the year 137,823,559 20,502,232
Less: Closing Stock of Stores and Accessories 73,136,079 109,721,295
Stores and Accessories Consumed 174,408,775 12,191,255
28.1 CONSOLIDATED OPERATING EXPENSES : Tk. 88,082,946
This is as follows :
Salaries & Allowances 19,442,363 11,913,155
Festival Bonus 2,454,079 953,847
Director's Remuneration 9,300,000 6,305,000
Fees, Forms & Others 1,448,528 679,755
Audit Fees 202,500 95,000
Legal Fees 90,500 85,000
Printing & Stationary 3,294,111 936,254
Telephone,Mobile & Internet Expenses 1,497,103 1,165,840
Postage & Stamp 213,943 34,984
Vehicle Maintenance 3,603,495 3,328,929
Miscellaneous Expenses 6,710,835 2,936,393
Office Rent 2,431,644 326,160
Rates & Taxes 324,000 742,846
Carriage Outward, C&F & Sample charges 6,078,687 6,060,880
Consultancy Fees - 423,347
Travelling & Conveyance 1,681,521 896,207
Entertainment 858,956 263,880
Office Expenses 12,165 355,838
Fuel for Head Office Generator 1,170,071 669,700
Advertisement/ Publicity Expenses 27,480 31,920
Security Charges 276,527 -
Gardening Expenses 13,409 73,579
Uniform / Livery Security 58,190 262,402
Repairs & Maintenance and IPO Exp. 19,442,880 1,176,874
Books and periodicals - 3,409
Medical Expenses 32,590 64,140
Software Maintenance Expenditure 20,000 762,200
Credit Rating Charges - 300,000
Depreciation Note: 1.1 7,397,369 2,232,416
88,082,946 43,079,955
29.1 CONSOLIDATED FINANCIAL EXPENSES : Tk. 297,231,447
This is as follows :
i. EASTERN BANK LTD.:
Interest on Long Term Loan 19,584,471 28,761,337
Interest on Short Term Loan 40,850,264 13,112,422
Interest on Overdraft 5,222,171 9,025,867
Bank Charges & Commission 5,801,063 5,074,755
Malek Siddiqui Wali
Chartered Accountants
JUNE'11 JUNE'10
MALEK SPINNING MILLS LIMITEDNOTES OF CONSOLIDATED FINANCIAL STATEMENT
AS AT 30TH
JUNE 2011
Amount in Taka
Export L/C Negotiation Commission 1,198,515 1,406,437
Interest on Bill Discount 13,053,296 11,013,982
TOTAL 85,709,779 68,394,801
ii. HSBC:
Interest on Long Term Loan 12,768,765 17,834,784
Interest on Short Term Loan - 2,564,141
Interest on Overdraft 2,070,894 3,127,674
Bank Charges & Commission 560,978 1,033,746
Export L/C Negotiation Commission 3,099,214 1,458,427
Interest on Bill Discount 9,756,728 4,800,963
TOTAL 28,256,580 30,819,736
iii. DHAKA BANK LTD. :
Interest on Long Term Loan 30,838,942 29,213,784
Interest on Short Term Loan 14,316,662 13,630,723
Interest on Overdraft 3,031,207 3,598,874
Bank Charges & Commission 7,852,697 1,962,515
Export L/C Negotiation Commission 3,204,714 1,300,673
Interest on Bill Discount 6,944,452 10,139,370
TOTAL 66,188,674 59,845,939
iv. ONE BANK LTD. :
Interest on Long Term Loan - 2,138,366
Interest on Short Term Loan - 712,833
Interest on Overdraft 1,954,311 1,504,847
Bank Charges & Commission - 85,336
Export L/C Negotiation Commission 275,534 236,222
Interest on Bill Discount 2,687,193 4,308,732
TOTAL 4,917,038 8,986,336
v. TRUST BANK LTD. :
Interest on Long Term Loan - 3,635,716
Interest on Short Term Loan 1,153,051 513,867
Bank Charges & Commission 630,537 34,805
Export L/C Negotiation Commission 26,902 222,376
Interest on Bill Discount 464,563 2,027,677
TOTAL 2,275,053 6,434,441
vi. SHAHJALAL ISLAMI BANK LTD. :
Interest on Long Term Loan - 5,251,146
Bank Charges & Commission 1,958 3,000
Export L/C Negotiation Commission - 51,399
Interest on Bill Discount - 217,771
TOTAL 1,958 5,523,316
vii. CITIBANK NA :
Interest on Long Term Loan - 19,221,851
Interest on Short Term Loan - 2,477,140
Interest on Overdraft 432,384 3,381,253
Export L/C Negotiation Commission - 166,910
Bank Charges & Commission 1,154,558 226,085
Interest on Bill Discount - 5,317,079
Malek Siddiqui Wali
Chartered Accountants
JUNE'11 JUNE'10
MALEK SPINNING MILLS LIMITEDNOTES OF CONSOLIDATED FINANCIAL STATEMENT
AS AT 30TH
JUNE 2011
Amount in Taka
TOTAL 1,586,942 30,790,317
viii. IPDC:
Interest on Term Loan - 2,768,780
TOTAL - 2,768,780
ix. Islami Bank:
Interest on Long Term Loan 59,955,178 -
Interest on Short Term Loan 29,185,907 -
Bank Charges & Commission 2,634,427 -
Export Bill Negotiation Commission 8,938,804 -
100,714,316 -
x. UNITED LEASING COMPANY:
Interest on Lease Finance 36,933 142,727
TOTAL 36,933 142,727
xi. AB BANK LTD :
Bank Charges & Commission 12,156 11,236
TOTAL 12,156 11,236
xii. BRAC BANK LTD
Bank Charges and Commission 16,506 -
16,506 -
xiii. Sonali Bank:
Bank Charges & Commission 3,461,479 -
Interest on Bill Discount 1,240,557 -
4,702,036 -
xiv.Prime Bank:
Bank Charges and Commission 1,175 -
1,175 -
xv. UCBL:
Interest on Overdraft 899,720 -
Interest on Term Loan 22,541 -
Interest on Bill Discount 470,129 -
Bank Charges & Commission 1,419,911 -
2,812,301 -
297,231,447 213,717,629
30.1 AMORTIZATION OF TRIAL AND OPERATION EXPENSES: 3,605,397 4,506,746
31.1 LOSS ON SALE OF FIXED ASSETS : Tk.
Written down value of Cars : - 1,610,135
Sale Price - 1,112,300
Total Loss on Sale of Fixed Assets : - 497,835
-
Malek Siddiqui Wali
Chartered Accountants
JUNE'11 JUNE'10
MALEK SPINNING MILLS LIMITEDNOTES OF CONSOLIDATED FINANCIAL STATEMENT
AS AT 30TH
JUNE 2011
Amount in Taka
32.1 CONSOLIDATED OTHER INCOME: Tk.
Interest Income from FDR A/C with Eastern Bank Ltd. - 2,218,536
Interest Income from FDR A/C with Dhaka Bank Ltd. - 947,222
Interest Received from Dividend A/C with BRAC Bank Ltd. 791,593 -
Interest Income from STD A/C with AB Bank Ltd. 1,783,517 35,142,628
Interest Income from STD A/C witth BRAC Bank Ltd. 54,851,711 33,507,885
Interest Income from STD A/C witth Eastern Bank Ltd. 25,938,071 11,462,079
Interest Received from CD A/C- Dutch-Bangla Bank Ltd 4,942 -
83,369,833 83,278,349
33.1 CONSOLIDATED OTHER EXPENSES: Tk.AGM Expenses 3,412,659 -
Advertisment & Publicity Expenses 564,460 67,064,623
3,977,119 67,064,623
Provision for Contribution to WPPF(MSML) 6,581,282 9,897,072
Provision for Contribution to WPPF(STL) 13,537,874 6,338,727
Provision for Contribution to WPPF(JM) 1,139,123 -
21,258,279 16,235,799
35.1. CONSOLIDATED INCOME TAX PROVISION : Tk. 32,061,335
On operating Income 10%,15% 10,227,844 25,774,598
On other Income 27.5%, 37.5% 21,833,491 6,080,147
TOTAL 32,061,335 31,854,745
36.1 CONSOLIDATED BASIC EARNINGS PER SHARE (EPS): 1.72
This is as follows:
(a) Consolidated Net Profit. 274,011,536 282,964,163
(b) Number of Total Share (Weighted Avg.) 159,342,466 103,561,644
Basic Earnings per Share (EPS) a/b 1.72 2.73
(26,077,984)
79,392,714
3,977,119
53,314,731
83,369,833
34.1 CONSOLIDATED PROVISION FOR WORKER'S PROFIT PARTICIPATION FUND:
Malek Siddiqui Wali
Chartered Accountants
ANNEXURE : 1.1
AS ON 01.07.2010 ADDITION ADJUSTMENT AS ON 30.06.2011 AS ON 01.07.2010 THIS YEAR ADJUSTMENTS AS ON 30.06.2011
A. Malek Spinning Mills Ltd., Salek Textile, Newasia Synthetics Ltd., Titas Spinning & Denim Co. Ltd & JM Fabrics Ltd.
1 Land and Land Development 280,777,931 329,016,502 - 609,794,433 - - - - 609,794,433
2 Factory Building 798,534,940 119,292,752 - 917,827,692 5% 225,659,097 34,608,430 - 260,267,526 657,560,166
3 Plant and Machinery 3,205,065,928 87,246,561 - 3,292,312,489 10% 935,231,132 224,041,370 - 1,159,272,502 2,133,039,987
4 Lease Assets(Plant and Machinery) 12,753,116 - - 12,753,116 10% 2,423,092 1,033,002 - 3,456,094 9,297,022
5 Electrical Installation 114,225,098 264,802 - 114,489,900 10%,15% 40,660,103 10,667,942 - 51,328,045 63,161,855
6 Tubewell and Water Pump 9,610,308 575,000 - 10,185,308 10%,15% 2,915,838 981,476 - 3,897,313 6,287,995
7 Furniture and Fixtures 10,233,143 1,905,228 - 12,138,371 10% 1,670,118 1,018,550 - 2,688,667 9,449,704
8 Office Equipments 10,257,374 3,289,218 - 13,546,592 15% 3,897,127 1,383,070 - 5,280,197 8,266,395
9 Gas Line Installation 19,007,896 6,124,750 - 25,132,645 15% 4,980,191 3,022,868 - 8,003,059 17,129,586
10 Loose Tools and Equipment 11,573,415 935,337 - 12,508,752 15% 1,640,994 1,106,012 - 2,747,007 9,761,745
11 Motor Vehicle 24,538,107 31,934,500 - 56,472,607 15% 10,572,598 4,975,360 - 15,547,958 40,924,649
12 Telephone (PABX) Installation 445,104 - - 445,104 15% 328,016 17,563 - 345,579 99,525
13 Crockaries and Cutlaries 50,777 33,314 - 84,091 15% 31,932 7,824 - 39,756 44,335
14 Generator 209,814,629 - - 209,814,629 15% 87,365,177 16,742,049 - 104,107,226 105,707,403
15 Fire Installation 253,100 - - 253,100 15% 159,191 14,086 - 173,277 79,823
Total of "A" 4,707,140,866 580,617,964 - 5,287,758,830 1,317,534,604 299,619,602 - 1,617,154,206 3,670,604,624
ANNEXURE : 1.1
As on 01.07.2010 ADDITION ADJUSTMENT As on 30.06.2011 As on 01.07.2010 THIS YEAR ADJUSTMENT As on 30.06.2011
B. REVALUATION OF FIXED ASSETS :
1 Land 337,982,604 - - 337,982,604 - - - - - 337,982,604
2 Building & Civil Construction 146,872,234 - - 146,872,234 5% 14,320,043 6,627,610 - 20,947,652 125,924,582
3 Machineries 715,978,047 - - 715,978,047 10% 136,035,829 43,495,666 - 179,531,495 536,446,552
Total of "B" 1,200,832,885 1,200,832,885 - 150,355,872 50,123,276 - 200,479,148 1,000,353,738
GRAND TOTAL ( A+B ) 5,907,973,751 580,617,964 - 6,488,591,715 1,467,890,476 349,742,878 - 1,817,633,354 4,670,958,361
Depreciation Charges to:
Factory Overhead 342,345,509
Operating Expenses 7,397,369
Tk. 349,742,878
MALEK SPINNING MILLS LIMITED AND ITS SUBSIDIARIES
MALEK SPINNING MILLS LIMITED
CONSOLIDATED FIXED ASSETS SCHEDULE AS ON 30TH
JUNE 2011
COSTRATE
DEPRECIATION WRITTEN DOWN
VALUE AS ON
30.06.2011
SL
CONSOLIDATED REVALUATED ASSETS SCHEDULE AS ON 30TH
JUNE 2011
COST
RATE
DEPRECIATION WRITTEN DOWN
VALUE AS ON
30.06.2011
PARTICULARS
PARTICULARSSL
Malek Siddiqui Wali
Chartered Accountants
JUNE'11 JUNE'10
Taka Taka
ASSETS :
Non-Current Assets: 1,230,559,586 1,347,457,694
Property, Plant and Equipment 1,216,138,000 1,329,430,711
Trial and Operation Loss 14,421,587 18,026,983
Current Assets : 2,015,314,380 966,507,682
Inventories 1,088,693,730 430,437,038
Advance, Deposit and Pre-Payments 9,535,514 7,170,910
Accounts Rceivable 807,844,260 511,093,136
Cash and Cash Equivalents 109,240,877 17,806,598
TOTAL ASSETS : 3,245,873,966 2,313,965,376
SHAREHOLDER'S EQUITY AND LIABILITIES:
Shareholder's Equity : 536,723,039 265,965,568
Share Capital 99,900,000 99,900,000
General Reserve and Surplus 305,776,127 116,245,897
Tax Holiday Reserve 131,046,912 49,819,671
Share Money deposit 189,926,900 189,926,900
Non-Current Liabilities:
Long Term Loan 204,306,892 472,942,709
Current Liabilities : 2,314,917,135 1,385,130,200
Short Term Loan 207,932,688 154,995,987
Advance from Malek Spinning Mills Ltd 654,564,475 464,176,844
Current Portion of Long Term Loan 249,384,914 250,601,084
Acceptance Liabilities 820,665,448 354,670,656
Creditors and Accruals 382,369,610 144,512,529
Loan from Director - 16,173,100
TOTAL SHAREHOLDER'S EQUITY AND LIABILITIES : 3,245,873,966 2,313,965,376
Net Assets Value Per Share (NAV) 537.26 266.23
Par Value Tk.100
sd/- sd/- sd/- sd/- A.Matin Chowdhury A.F.M. Zubair B.K.Chaki Syed Saiful Haque
Managing Director Director Chief Financial Officer Company Secretary
As per our report of same date
sd/-Dhaka ( Malek Siddiqui Wali )
October 27,2011 Chartered Accountants
SALEK TEXTILE LIMITEDBALANCE SHEET
AS AT 30TH
JUNE 2011
Malek Siddiqui Wali
Chartered Accountants
JUNE'11 JUNE'10
Taka Taka
Sales 2,142,516,143 1,460,682,499
Cost of Goods Sold 1,736,228,572 1,169,976,733
Gross Profit : 406,287,571 290,705,766
Operating Expenses 9,815,998 8,359,871
Financial Expenses 108,570,832 144,725,892
Amortization of Trial and Operation Loss 3,605,397 4,506,746
Operating Profit : 284,295,345 133,113,258
Provision for Contribution to WPPF 13,537,874 6,338,727
Profit before Tax : 270,757,471 126,774,531
Provision for Income Tax : - -
Net Profit for this period 270,757,471 126,774,531
Transferred to Tax Holiday Reserve 81,227,241 38,032,359
Net Profit Balance 189,530,230 88,742,172
(Transferred to the statement of Changes in Equity.)
Earnings per Share (EPS) 271.03 126.90
Par Value Tk.100
sd/- sd/- sd/- sd/- A.Matin Chowdhury A.F.M. Zubair B.K.Chaki Syed Saiful Haque
Managing Director Director Chief Financial Officer Company Secretary
As per our report of same date
sd/-Dhaka ( Malek Siddiqui Wali )
October 27,2011 Chartered Accountants
SALEK TEXTILE LIMITEDINCOME STATEMENT
FOR THE YEAR ENDED 30TH
JUNE 2011
Malek Siddiqui Wali
Chartered Accountants
JUNE'11 JUNE'10
Taka Taka
CASH FLOW FROM OPERATING ACTIVITIES :
Collection from Turnover & Bills Receivable 1,845,765,019 1,126,592,781
Payment for Raw Materials, Indirect Materials and other expenses (1,579,794,763) (1,035,171,089)
Payment for Operating Expenses (7,921,089) (7,737,453)
Payment for Income Tax - -
Payment of Financial Expenses (108,570,832) (132,545,907)
Net Cash Provided by Operating Activities 149,478,336 (48,861,668)
CASH FLOW FROM INVESTING ACTIVITIES :
Acquisation of Fixed Assets (12,978,698) (195,456,165)
Acquisition of Capital work in progress - -
Net cash used in Investing Activities (12,978,698) (195,456,165)
CASH FLOW FROM FINANCING ACTIVITIES :
Advance, Deposits and Pre-payments (2,364,604) (3,798,401)
Bank Loan Received/(Repayment) (216,915,286) (64,280,912)
Loan from Directors (16,173,100) -
Advance from Malek Spinning Mills Ltd. 190,387,631 319,599,980
Net cash provided by Financing Activities (45,065,360) 251,520,667
Increase/(Decrease) in Cash and Cash Equivalents 91,434,279 7,202,834
Cash and Cash Equivalents at 1st July 2010 17,806,598 10,603,763
Cash and Cash Equivalents at 30th
June 2011 109,240,877 17,806,598
Net Operating Cash Flow Per Share (NOCFPS) 149.63 (48.91)
Par Value Tk.100
sd/- sd/- sd/- sd/-A.Matin Chowdhury A.F.M. Zubair B.K. Chaki Syed Saiful Haque
Managing Director Director Chief Financial Officer Company Secretary
As per our report of same date
sd/-Dhaka ( Malek Siddiqui Wali )
October 27,2011 Chartered Accountants
SALEK TEXTILE LIMITEDCASH FLOW STATEMENT
FOR THE YEAR ENDED 30TH
JUNE 2011
Malek Siddiqui Wali
Chartered Accountants
Particulars Share Capital Tax Holiday
Reserve
Retained
Earnings Total
Balance as at July 01, 2010 99,900,000 49,819,670 116,245,897 265,965,568
Issuance of Shares Capital - - - -
Net Profit during this Period - 189,530,230 189,530,230
Tax Holiday Reserve - 81,227,241 - 81,227,241
As on 30th
June 2011 99,900,000 131,046,912 305,776,127 536,723,039
Particulars Share Capital Tax Holiday
Reserve
Retained
Earnings Total
Balance as at July 1, 2009 99,900,000 11,787,311 27,503,725 139,191,036
Issuance of Shares Capital - - - -
Net Profit during this Period - 88,742,172 88,742,172
Tax Holiday Reserve - 38,032,359 - 38,032,359
As on 30th
June 2010 99,900,000 49,819,670 116,245,897 265,965,568
sd/- sd/- sd/- sd/-A.Matin Chowdhury A.F.M. Zubair B.K. Chaki Syed Saiful Haque
Managing Director Director Chief Financial Officer Company Secretary
As per our report of same date
sd/-Dhaka ( Malek Siddiqui Wali )
October 27,2011 Chartered Accountants
FOR THE YEAR ENDED 30TH
JUNE 2010
SALEK TEXTILE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30TH
JUNE 2011
Malek Siddiqui Wali
Chartered Accountants
JUNE'11 JUNE'10
Taka Taka
ASSETS :
Non-Current Assets : 395,058,820 159,681,203
Pre-Operating Expenses 21,719,065 12,315,103
Capital Work in Progress - -
Property Plant & Equipment 373,339,755 147,366,100
Current Assets : 12,523,886 99,475,177
Advance, Deposit and Pre-Payments 7,583,573 65,091,516
Cash and Cash Equivalents 4,940,313 34,383,661
TOTAL ASSETS : 407,582,706 259,156,380
SHAREHOLDER'S EQUITY AND LIABILITIES:
Shareholder's Equity : 103,715,000 103,715,000
Share Capital 93,715,000 93,715,000
Share Money Deposit 10,000,000 10,000,000
Current Liabilities : 303,867,706 155,441,380
Advance from Malek Spinning Mills Ltd. 303,790,823 154,470,423
Creditors & Accruals 76,883 970,957
TOTAL SHAREHOLDER'S EQUITY AND LIABILITIES : 407,582,706 259,156,380
Net Assets Value Per Share (NAV) 111 111
Par Value Tk.100
sd/- sd/- sd/- sd/-Dr. Shamim Matin Chowdhury A.Matin Chowdhury B.K. Chaki Syed Saiful Haque
Managing Director Director Chief Financial Officer Company Secretary
As per our report of same date
sd/-Dhaka (Malek Siddiqui Wali)
October 27,2011 Chartered Accountants
NEWASIA SYNTHETICS LIMITEDBALANCE SHEET
AS AT 30TH
JUNE 2011
Malek Siddiqui Wali
Chartered Accountants
JUNE'11 JUNE'10
Taka Taka
CASH FLOW FROM OPERATING ACTIVITIES :
Net Cash Provided by Operating Activities - -
CASH FLOW FROM INVESTING ACTIVITIES :
Acqusition of Fixed Assets (225,973,655) (55,280,300)
Acquisition of Capital work in progress -
Pre-operating Expenses (10,298,036) (7,923,430)
Net Cash used in Investing Activities (236,271,691) (63,203,730)
CASH FLOW FROM FINANCING ACTIVITIES :
Advance, deposits and pre-payments 57,507,943 (64,891,516)
Issuance Share Capital - 93,500,000
Share Money Deposit - (90,000,000)
Advance from Malek Spinning Mills Ltd 149,320,400 153,654,412
Net Cash provided by Financing Activities 206,828,343 92,262,896
Increase/(Decrease) in Cash and Cash Equivalents (29,443,348) 29,059,166
Cash and Cash Equivalents at 1st July 2010 34,383,661 5,324,495
Cash and Cash Equivalents at 30th
June 2011 4,940,313 34,383,661
sd/- sd/- sd/- sd/-Dr. Shamim Matin Chowdhury A.Matin Chowdhury B.K. Chaki Syed Saiful Haque
Managing Director Director Chief Financial Officer Company Secretary
As per our report of same date
sd/-Dhaka ( Malek Siddiqui Wali )
October 27,2011 Chartered Accountants
NEWASIA SYNTHETICS LIMITEDCASH FLOW STATEMENT
FOR THE YEAR ENDED 30TH
JUNE 2011
Malek Siddiqui Wali
Chartered Accountants
Particulars Share Capital Share Money
Deposit
Balance as on 1st July 2010 93,715,000 10,000,000 103,715,000
Share Money Deposit - -
Isuance of Share Capital - -
As on 30th June 2011 93,715,000 10,000,000 103,715,000
Particulars Share Capital Share Money
Deposit
Balance as on July 01, 2009 215,000 100,000,000 100,215,000
Share Money Deposit (90,000,000) (90,000,000)
Isuance of Share Capital 93,500,000 93,500,000
As on 30th June 2010 93,715,000 10,000,000 103,715,000
sd/- sd/- sd/- sd/-Dr. Shamim Matin Chowdhury A.Matin Chowdhury B.K. Chaki Syed Saiful Haque
Managing Director Director Chief Financial Officer Company Secretary
As per our report of same date
sd/-Dhaka ( Malek Siddiqui Wali )
October 27,2011 Chartered Accountants
NEWASIA SYNTHETICS LIMITEDSTATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30TH
JUNE 2011
Total
FOR THE YEAR ENDED 30TH
JUNE 2010
Total
JUNE'11 JUNE'10
Taka Taka
ASSETS :
Non-Current Assets: 831,265,857 711,102,378
Property, Plant and Equipment 778,820,659 524,646,648
Capital Work-in-Progress 52,445,198 186,455,730
Current Assets : 289,223,678 123,527,453
Inventories 117,124,084 25,734,056
Advance, Deposit and Pre-Payments 18,540,504 3,547,650
Accounts Rceivable 96,815,863 70,782,653
Cash and Cash Equivalents 56,743,227 23,463,094
TOTAL ASSETS : 1,120,489,535 834,629,831
SHAREHOLDER'S EQUITY AND LIABILITIES:
Shareholder's Equity : 82,941,268 62,552,818
Share Capital 62,500,000 50,000,000
General Reserve and Surplus 20,441,268 12,552,818
Share Money deposit 308,750,000 264,000,000
Non-Current Liabilities:
Long Term Loan 353,103,797 389,207,420
Current Liabilities : 375,694,470 118,869,593
Short Term Loan 48,081,299 43,757,206
Advance from Malek Spinning Mills Ltd. 159,941,728 -
Acceptance Liabilities 115,306,630 51,760,462
Creditors and Accruals 52,364,812 23,351,925
TOTAL SHAREHOLDER'S EQUITY AND LIABILITIES : 1,120,489,535 834,629,831
Net Assets Value Per Share (NAV) 144.07 125.11 Par Value Tk.100
sd/- sd/- sd/- sd/- A.Matin Chowdhury Azizur R.Chowdhury B.K.Chaki Syed Saiful Haque
Chairman Managing Director Chief Financial Officer Company Secretary
As per our report of same date
sd/-Dhaka Dus Chowdhury Dutta & Co.
October 13,2011 Chartered Accountants
J.M. FABRICS LIMITEDBALANCE SHEET
AS AT 30TH
JUNE 2011
JUNE'11 JUNE'10
Taka Taka
Sales 622,914,863 335,256,371
Cost of Goods Sold 583,972,774 306,224,158
Gross Profit : 38,942,089 29,032,213
Operating Expenses 6,121,055 19,506,435
Financial Expenses 8,904,384 2,842,596
Loss on Sale of Assets - 364,167
Operating Profit : 23,916,650 6,319,015
Add: Other Income 4,942 12,191
Net Operating Profit : 23,921,592 6,331,206
Provision for Contribution to WPPF 1,139,123 -
Profit before Tax : 22,782,468 6,331,206
Income Tax : 2,394,018 703,067
Net Profit for this period 20,388,450 5,628,139
Less: Transferred to Tax Holiday Reserve - -
Net Profit Balance 20,388,450 5,628,139
(Transferred to the statement of Changes in Equity.)
Earnings per Share (EPS) 35.42 11.26
Par Value Tk.100
sd/- sd/- sd/- sd/-A.Matin Chowdhury Azizur R.Chowdhury B.K. Chaki Syed Saiful Haque
Chairman Managing Director Chief Financial Officer Company Secretary
As per our report of same date
sd/-Dhaka Dus Chowdhury Dutta & Co.
October 13,2011 Chartered Accountants
J.M. FABRICS LIMITEDINCOME STATEMENT
FOR THE YEAR ENDED 30TH
JUNE 2011
JUNE'11 JUNE'10
Taka Taka
CASH FLOW FROM OPERATING ACTIVITIES :
Collection from Turnover & Bills Receivable 596,881,653 264,473,718
Payment for Raw Materials, Indirect Materials and other expenses (527,275,778) (255,229,735)
Collection from other income 4,942 -
Payment for Operating Expenses (4,579,876) (19,201,620)
Payment of Financial Expenses (8,904,384) (6,403,052)
Net Cash Provided by Operating Activities 56,126,558 (16,360,689)
CASH FLOW FROM INVESTING ACTIVITIES :
Acquisition of Fixed Assets (314,776,301) -
Disposal of Capital work in progress 134,010,532 (186,455,730)
Net cash used in investing activities (180,765,769) (186,455,730)
CASH FLOW FROM FINANCING ACTIVITIES :
Advance, Deposits and Pre-payments (14,992,854) (1,831,926)
Bank Loan Received/(Repayment) (31,779,530) 50,631,007
Loan from Directors - -
Share money deposit 44,750,000 164,000,000
Advance from Malek Spinning Mills Ltd. 159,941,728 -
Net cash provided by Financing Activities 157,919,344 212,799,081
Increase/(Decrease) in Cash and Cash Equivalents 33,280,133 9,982,662
Cash and Cash Equivalents at 1st July 2010 23,463,094 13,480,431
Cash and Cash Equivalents at 30th
June 2011 56,743,227 23,463,094
Net Operating Cash Flow Per Share (NOCFPS) 97.50 (32.72)
Par Value Tk.100
sd/- sd/- sd/- sd/-A.Matin Chowdhury Azizur R.Chowdhury B.K. Chaki Syed Saiful Haque
Chairman Managing Director Chief Financial Officer Company Secretary
As per our report of same date
sd/-Dhaka Dus Chowdhury Dutta & Co.
October 13,2011 Chartered Accountants
J.M. FABRICS LIMITEDCASH FLOW STATEMENT
FOR THE YEAR ENDED 30TH
JUNE 2011
Particulars Share Capital Tax Holiday
Reserve
Retained
Earnings Total
Balance as at July 01, 2010 50,000,000 12,552,818 62,552,818
Issuance of Shares Capital - - - -
Issuance of Bonus Shares 12,500,000 (12,500,000) -
Net Profit/(Loss) during this period - 20,388,450 20,388,450
Tax Holiday Reserve - - - -
As on 30th
June 2011 62,500,000 - 20,441,268 82,941,268
Particulars Share Capital Tax Holiday
Reserve
Retained
Earnings Total
Balance as at July 1, 2009 50,000,000 6,924,679 56,924,679
Issuance of Shares Capital - - - -
Net Profit during this period - 5,628,139 5,628,139
Tax Holiday Reserve - - -
As on 30th
June 2010 50,000,000 - 12,552,818 62,552,818
sd/- sd/- sd/- sd/-A.Matin Chowdhury Azizur R.Chowdhury B.K. Chaki Syed Saiful Haque
Chairman Managing Director Chief Financial Officer Company Secretary
As per our report of same date
sd/-Dhaka Dus Chowdhury Dutta & Co.
October 13,2011 Chartered Accountants
FOR THE YEAR ENDED 30TH
JUNE 2010
J.M. FABRICS LIMITED
STATEMENT IN CHANGES IN EQUITY
FOR THE YEAR ENDED 30TH
JUNE 2011
JUNE'11 JUNE'10
Taka Taka
ASSETS :
Non-Current Assets: 616,519,979 675,181,806
Property, Plant and Equipment 616,519,979 675,181,806
Capital Work-in-Progress - -
Current Assets : 328,779,563 207,163,892
Inventories 59,172,721 62,135,384
Advance, Deposit and Pre-Payments 4,752,010 18,799,629
Accounts Rceivable 251,897,434 118,882,217
Cash and Cash Equivalents 12,957,398 7,346,662
TOTAL ASSETS : 945,299,542 882,345,698
SHAREHOLDER'S EQUITY AND LIABILITIES:
Shareholder's Equity : (400,400,028) (373,902,591)
Share Capital 1,000,000 1,000,000
General Reserve and Surplus (401,400,028) (374,902,591)
Tax Holiday Reserve - -
Share Money deposit 94,200,000 -
Non-Current Liabilities:
Long Term Loan 396,294,870 726,828,812
Current Liabilities : 855,204,700 529,419,477
Short Term Loan 251,779,854 229,810,287
Advance From Malek Spinning Mills Ltd 246,500,000 -
Acceptance Liabilities 100,594,838 -
Creditors and Accruals 253,807,058 128,542,037
Loan from Directors 2,522,950 171,067,153
TOTAL SHAREHOLDER'S EQUITY AND LIABILITIES : 945,299,542 882,345,698
Net Assets Value Per Share (NAV) (40,040) (37,390)
Par Value Tk.100
sd/- sd/- sd/- sd/- A.Matin Chowdhury A.F.M. Zubair B.K.Chaki Syed Saiful Haque
Chairman Managing Director Chief Financial Officer Company Secretary
As per our report of same date
sd/-Dhaka K.M. ALAM & CO.
October 13,2011 Chartered Accountants
TITAS SPINNING & DENIM COMPANY LTD.BALANCE SHEET
AS AT 30TH
JUNE 2011
JUNE'11 JUNE'10
Taka Taka
Sales 374,172,394 323,701,421
Cost of Goods Sold 365,177,766 328,190,086
Gross Profit : 8,994,628 (4,488,665)
Operating Expenses 10,517,748 8,075,363
Financial Expenses 100,714,316 84,460,840
Loss on Sale of Assets - -
Operating Profit : (102,237,437) (97,024,868)
Add: Other Income - -
Net Operating Profit : (102,237,437) (97,024,868)
Provision for Contribution to WPPF - -
Profit before Tax : (102,237,437) (97,024,868)
Provision for Income Tax : - -
Net Profit for this period (102,237,437) (97,024,868)
Less: Transferred to Tax Holiday Reserve - -
Net Profit Balance (102,237,437) (97,024,868)
(Transferred to the statement of Changes in Equity.)
Earnings per Share (EPS) (10,223.74) (9,702.49)
Par Value Tk.100
sd/- sd/- sd/- sd/-A.Matin Chowdhury A.F.M. Zubair B.K. Chaki Syed Saiful Haque
Chairman Managing Director Chief Financial Officer Company Secretary
As per our report of same date
sd/-Dhaka K.M. ALAM & CO.
October 13,2011 Chartered Accountants
TITAS SPINNING & DENIM COMPANY LTD.INCOME STATEMENT
FOR THE YEAR ENDED 30TH
JUNE 2011
JUNE'11 JUNE'10
Taka Taka
CASH FLOW FROM OPERATING ACTIVITIES :
Collection from Turnover & Bills Receivable 241,157,177 261,863,832
Payment for Raw Materials, Indirect Materials and other expenses (76,206,401) (243,699,431)
Payment for Operating Expenses (10,163,512) (7,685,467)
Payment of Financial Expenses (100,714,316) (84,460,840)
Net Cash Provided by Operating Activities 54,072,948 (73,981,906)
CASH FLOW FROM INVESTING ACTIVITIES :
Acquisation of Fixed Assets (1,841,253) (44,196,207)
Disposal of Fixed Assets - -
Acquisition of Capital work in progress - -
Net cash used in investing activities (1,841,253) (44,196,207)
CASH FLOW FROM FINANCING ACTIVITIES :
Advance, Deposits and Pre-payments 14,047,619 (13,880,622)
Bank Loan Received/(Repayment) (232,824,375) 119,393,826
Loan from Directors (168,544,203) 15,129,954
Share money deposit 94,200,000 -
Advance from Malek Spinning Mills Ltd. 246,500,000 -
Net cash provided by financing activities (46,620,959) 120,643,158
Increase/(Decrease) in cash and cash equivalents 5,610,736 2,465,045
Cash and Cash Equivalents at 1st July 2010 7,346,662 4,881,617
Cash and Cash Equivalents at 30th
June 2011 12,957,398 7,346,662
Net Operating Cash Flow Per Share (NOCFPS) 5,407.29 (7,398.19)
Par Value Tk.100
sd/- sd/- sd/- sd/-A.Matin Chowdhury A.F.M. Zubair B.K. Chaki Syed Saiful Haque
Chairman Managing Director Chief Financial Officer Company Secretary
As per our report of same date
sd/-Dhaka K.M. ALAM & CO.
October 13,2011 Chartered Accountants
TITAS SPINNING & DENIM COMPANY LTD.
CASH FLOW STATEMENT
FOR THE YEAR ENDED 30TH
JUNE 2011
Page- 4
Particulars Share Capital Tax Holiday
Reserve
Retained
Earnings Total
Balance as on 1st July 2010 1,000,000 (374,902,591) (373,902,591)
Issuance of Shares Capital - - - -
Profit & Loss appropriation A/c
(Adjustment) 75,740,000
Net Profit/(Loss) during this Period - (102,237,437) (102,237,437)
Tax Holiday Reserve - - - -
As on 30th
June 2011 1,000,000 - (401,400,028) (476,140,027)
Particulars Share Capital Tax Holiday
Reserve
Retained
Earnings Total
Balance as on 1st July 2009 1,000,000 (277,877,723) (276,877,723)
Issuance of Shares Capital - - - -
Net Profit during this Period - (97,024,868) (97,024,868)
Tax Holiday Reserve - - -
As on 30th
June 2010 1,000,000 - (374,902,591) (373,902,591)
sd/- sd/- sd/- sd/-A.Matin Chowdhury A.F.M. Zubair B.K. Chaki Syed Saiful Haque
Chairman Managing Director Chief Financial Officer Company Secretary
As per our report of same date
sd/-Dhaka K.M. ALAM & CO.
October 13,2011 Chartered Accountants
FOR THE YEAR ENDED 30TH
JUNE 2010
TITAS SPINNING & DENIM COMPANY LTD.
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30TH
JUNE 2011