Quarterly Financial Statements (Q1) of SALVO CHEMICAL ...

SALVO CHEMICAL INDUSTRY LIMITED

Quarterly Financial Statements (Q1)

of

SALVO CHEMICAL INDUSTRY LIMITED

FOR THE PERIOD

FROM 01 JULY 2016 TO 30 SEPTEMBER 2016

SOURCES OF FUND:

Shareholders' Fund: 668,997,520 655,537,987 2

Share Capital 03 561,691,350 561,691,350 -

Reserve & Surplus 04 107,306,170 93,846,637 14

Loan Fund: 05 23,495,889 24,553,122 (4)

Long Term Loan - Secured 32,202,473 33,260,993 (3)

Less : Current Maturity 8,706,584 8,707,871 (0.0)

692,493,409 680,091,109 2

APPLICATION OF FUND: #DIV/0!

Non- Current Assets:

Property, Plant & Equipment 06 548,338,322 549,311,615 (0)

Capital Work In-progress 07 163,707,056 148,927,056 10

Current Assets : 183,508,925 148,898,636 23

Advance, Deposits & Pre-payments 08 31,802,633 28,275,419 12

Inventories 09 80,035,007 46,771,879 71

Spare Parts 10 7,907,240 8,356,302 (5)

Accounts Receivable 11 26,230,593 25,046,528 5

Others Receivable 12 3,921,208 2,779,878 41

Cash and Cash Equivalents 13 33,612,244 37,668,630 (11)

Current Liabilities : 203,060,893 167,046,198 22

Short Term Loan 14 96,842,881 63,645,457 52

Accounts Payable 15 7,407,004 7,250,237 2

Others Payable 16 14,028,267 16,473,349 (15)

Current Maturity- Term Loan 8,706,584 8,707,871 (0)

Provision for Employee Benefits 17 6,649,452 6,232,716 7

Profit Participation Fund 18 3,735,857 3,006,006 24

Provision for Income Tax 19 64,341,937 61,308,718 5

Provision for Expenses 20 1,348,911 421,844 220

Net Current Assets: (19,551,969) (18,147,562) 8

Net Assets: 692,493,409 680,091,109 2 Discloser:

NAV per Share 11.91 11.67 2

NAV per Share - Restated 11.34 11.12 2

Contingent Liability: N/A N/A

Company Secretary Managing Director Chief Financial Officer Chairman

Dated, Dhaka;

14 November 2016

Growth

(%)30.Sep.16 30-Jun-16

The accompanying notes form an integral part of this financial statement and are to be read in conjunction therewith.

Salvo Chemical Industry LimitedStatement of Financial Position

As at 30 September 2016

NotesAmount in Taka

1

01-07-2015

to to

Operating Income:

Sales- Net of VAT 21 62,593,043 59,702,870 5

Less : Cost of goods sold 22 32,877,897 32,342,571 2

Gross Profit (a) 29,715,145 27,360,299 9

Operating Expenses:

Administrative Expenses 23 5,431,568 5,692,310 (5)

Selling & Distribution Expenses 24 1,021,469 816,691 25

Total Operating Expenses (b) 6,453,037 6,509,001 (1)

Total Operating Profit (c)=(a-b) 23,262,108 20,851,298 12

Non-operating Income (d) 25 - 110,748 (100)

Non-operating Expenses:

Financial Charges 26 3,111,843 3,998,625 (22)

Corporate Social Responsibility - -

Total Non-operating Expenses (e) 3,111,843 3,998,625 (22)

Net Profit/(Loss) Before Tax (f)=(c+d - e) 20,150,265 16,963,421 19

Less: Profit Participation Fund 18 1,007,513 848,171 19

Less: Income Tax Expenses 19 5,683,219 7,095,311 (20)

Net Profit/(Loss) After Tax 13,459,533 9,019,939 49

Basic Earning Per Share (EPS): 27 0.24 0.16 49

Earning Per Share (EPS)- Restated: 27 0.23 0.15 49


Dated, Dhaka;

14 November 2016

Salvo Chemical Industry LimitedStatement of Profit or Loss and Other Comprehensive Income

For the Period from 01 July 2016 to 30 September 2016

30-06-201530-09-2016Particulars

Amount in Taka

Notes01-07-2016

Growth (%) of

September 2016

over

September 2015

The accompanying notes form an integral part of this financial statement and are to be read in conjunction therewith.

2

Amount in Taka

Share Tax Holiday Proposed Retained Total

Capital Reserve Dividend Earnings Equity

Balance as on 01 July, 2016 561,691,350 3,996,257 - 89,850,380 655,537,987

Payment Dividend:

Stock Dividend - - - - -

Current period's Profit after Tax - - - 13,459,533 13,459,533

Balance as on 30 September, 2016 561,691,350 3,996,257 - 103,309,913 668,997,520

Equity per Share: Tk. 11.91

Share Tax Holiday Proposed Retained Total

Capital Reserve Dividend Earnings Equity

Balance as on 01 July, 2015 510,628,500 3,996,257 - 99,333,491 613,958,248

Payment Dividend:

Stock Dividend 51,062,850 - - (51,062,850) -

Current period's Profit after Tax - - - 9,019,939 9,019,939

Balance as on 30 September, 2015 561,691,350 3,996,257 - 57,290,580 622,978,187

Equity per Share: Tk. 11.09


Dated, Dhaka;

14 November 2016

Salvo Chemical Industry LimitedStatement of Changes in Equity

For the Period Ended 30 September 2016

Particulars

Particulars


3

30 September 2016 30 September 2015

A. Cash from Operating Activities:

Cash received from Customer 60,267,648 96,585,279

Cash received from other than Operating Income - 2,218,781

Cash paid to Suppliers, Expenses & Others (65,590,872) (74,111,852)

Finance Charges (3,111,843) (9,951,159)

Income Tax Paid (2,650,000) (12,988,287)

Net Cash used by Operating Activities (Total of "A"): (11,085,067) 1,752,762

B. Cash from Investing Activities:

Fixed Assets (10,330,223) (2,786,600)

Capital Work In-progress (14,780,000) (33,537,950)

Investment in Shares - 5,000,000

Net Cash used by Investing Activities (Total of "B"): (25,110,223) (31,324,550)

C. Cash from Financing Activities (Increase/ Decrease):

Long Term Loan- Secured (1,058,520) 16,670,629

Short Term Loan 33,197,424 11,717,262

Net Cash used by Financing Activities (Total of "C"): 32,138,904 28,387,891

Net Increase/ Decrease in Cash & Cash Equivalents (A+B+C) (4,056,386) (1,183,897)

Opening Cash & Cash Equivalents 37,668,630 14,494,126

Closing Cash & Cash Equivalents 33,612,244 13,310,229

Net Operating Cash Flow per Share (NOCFPS) 0.20- 0.03

Net Operating Cash Flow per Share (NOCFPS)- Restated 0.19- 0.03


Dated, Dhaka;

14 November 2016

Salvo Chemical Industry LimitedStatement of Cash Flows


Amount in Taka

4

Salvo Chemical Industry Limited Notes to the Financial Statements For the period ended 30 September, 2016

01. BACKGROUND AND OBJECTIVES OF THE COMPANY:

01.01 Introduction and Legal Status:

The company was incorporated as a private limited company in Bangladesh in the name & style of

Salvo Chemical Industry Limited under the Companies Act, 1994, vide Reg. No. “C-44978(1446)

2002” dated 29 January, 2002 with the Registrar of Joint Stock Companies & Firms (RJSCF),

Dhaka. Subsequently the Company was converted to a Public Limited Company by registration on

04 August 2008 from the Registrar of Joint Stock Companies & Firms (RJSCF). Corporate office

of the company is situated at “Suite No.-903/B, Senakalyan Bhaban, 9th floor, 195-Motijheel C/A,

Dhaka-1000” and the factory located at “South Dhonua, Sripur, Gazipur. The Company went for

public issue in 2011 and its shares are listed in both Dhaka Stock Exchange and Chittagong Stock

Exchange on 18.04.2011 and 20.04.2011 respectively. Consequently the company has acquired the

following licenses and legal Approvals:

Sl.

No. Name of License Registration of license

Date of

License Renewed up to

1. Trade License (Factory) 38 24/06/2007 2016-2017

2. Trade License (Head Office) 089967/Ward No.32 16/03/2005 2016-2017

3. Tax Identification Number 440684599827 05/03/2002 N/A

4. Assessment completion - - Up to 2015-2016

5. VAT Identification Number 18061002294 01/10/2002 N/A

6. Import Registration Certificate BA-135303 13/07/2003 2016-2017

7. DCCI Membership Certificate 11138 27/12/2007 31.12.2016

8. Board of Investment L-28010204010-H 01/04/2002 N/A

9. Environment Clearance Certificate PARIBESH/DA-B/4701/Re 950 24/07/2004 2016

10. Fire License DHAKA/17582/2003 27/04/2003 2016

11. Production Clearance Certificate

from Department of Explosives 9/(40)/1-2/3441 7/5/2003 N/A

12. Factory License from chief

inspector of Factories 11911/Gazipur 31/12/2003 2016

13. Boiler Certificate 3030 27/10/2003 2016-2017

14. Sulphar Stock License For

Production of H2So4

Gazipur D.C Office No. 134-

01/2003

22/08/2003 2016

15. Trade Mark Registration App. No. 81276-01 22/07/2003 N/A

01.02 Nature of Business:

The company has been established with a view to producing and supply of different chemicals for

local consumption. Some of the chemicals are, interalia:

a) Sulphuric Acid ;

b) Magnesium Sulphate & Zinc Sulphate;

c) Basic Chrome Sulphate (BCS);

d) Sulphonic Acid (LABSA)

e) Battery Grade Water etc.

The company is now producing Sulphuric Acid as “Main Product” & Battery Grade Water as “By-

product”.

5

02. SIGNIFICANT ACCOUNTING POLICIES:

02.01 Accounting Basis:

The financial statements have been prepared on a going concern basis under historical cost

convention on accrual basis and in accordance with, BAS, BFRS and Generally Accepted

Accounting Principles (GAAP). The accounting polices have been consistently followed.

02.02 Basis of Preparation and Presentation of the Financial Statements:

The financial statements have been prepared and the disclosure of information thereof have been

made in accordance with the requirements of the Bangladesh Accounting Standards (BASs) and

the Bangladesh Financial Reporting Standards (BFRS) as adopted by Institute of Chartered

Accountants of Bangladesh (ICAB) and the companies Act- 1994 and other the applicable laws,

rules and regulations.

02.03 Recognition of Tangible Property, Plant & Equipment:

Recognition:

Assets having a useful life for more than a year are generally capitalized. Fixed Assets are stated at

cost less accumulated depreciation. Cost of assets represents cost of acquisition plus construction,

erection and other relevant expenditure etc.

Lease assets in case acquired, for transfer of ownership, as a Finance Lease shall be recognized in

accordance with Bangladesh Accounting Standard (BAS)-17.

Depreciation:

No depreciation has been charged on land & land development. Depreciation has been charged on

all other fixed assets, acquired either purchase or lease, applying diminishing balance method. All

the assets acquired during the year have been depreciated considering month of Acquisition. The

rates of depreciation are as follows:

Category Rate

Factory Building & Construction 5%

Plant & Machinery 10%

Electric Installation 10%

Office Equipments 10%

Furniture 10%

Vehicles 10%

02.04 Inventories:

In compliance with the requirement of BAS-2 “Inventories”, Raw Materials and Stores are valued

at the lower of average cost and the net realizable value. The costs of inventories are valued at

weighted average price.

02.05 Cash and Cash Equivalents:

Cash and Cash Equivalents include cash in hand, cash at bank and cash at BO Account which are

held and available for use by the company without any restriction and in support of the Articles of

Association of the company.

6

02.06 Cash Flow Statement:

Cash Flow Statement is prepared in accordance with the requirements of BAS- 7 (“Cash Flow

Statement”) under direct method.

02.07 Revenue Recognition:

Revenue from the sale of chemical is recognized when:

i) Significant risk and rewards of ownership is transferred to the customers,

ii) The company has no managerial involvement of ownership to the goods,

iii) The amount of revenue and cost of the transaction can be measured reliably, and

iv) Invoice and delivery challan are issued to the customers.

02.08 Provision for expenses:

While the provision for certain charges and known liabilities is made at the balance sheet date

based on estimate, the difference arising there from on receipts of bills/ demands and/ or actual

payments is adjusted in the subsequent year when such liabilities are settled.

02.09 Taxation:

Provision for income tax has been made in the accounts @ 25% as applicable for a public limited

company considering Finance Act, 2016 and accounted for in accordance with IAS 12: Income

Taxes.

02.10 Earning Per Share:

“Basic Earning per Share (EPS)” & “Earning per Share (EPS)- Restated” have been calculated

under weighted average method as per BAS-33: Earning per share.

02.11 Integral Components of the Financial Statements:

In compliance with the Bangladesh Accounting Standard (BAS)-1 “Presentation of

Financial Statements,” the following components are annexed with this component (Notes

to the Financial Statements):

i) Statement of Financial Position as at 30 September, 2016;

ii) Statement of Profit or Loss and Other Comprehensive Income for the period ended 30 September,

2016;

iii) Statement of Changes in Equity for the period ended 30 September, 2016;

iv) Statement of Cash Flows for the period ended 30 September, 2016.

7

03. SHARE CAPITAL: 561,691,350 561,691,350

Authorised Capital:

150,000,000 Ordinary Shares of Tk. 10 each. 1,500,000,000 1,500,000,000

Issued, Subscribed & Paid- up Capital:

40,100,010 Ordinary Shares of Tk. 10 each. 401,000,100 401,000,100

2,005,000 Bonus Shares of Tk. 10 each (Issued on 08/08/2011) 20,050,000 20,050,000

2,105,250 Bonus Shares of Tk 10 each (Issued on 15/07/2012) 21,052,500 21,052,500




561,691,350 561,691,350

04. RESERVE & SURPLUS: 107,306,170 93,846,637

Retained Earning (Note-04.01) 103,309,913 89,850,380

Tax Holiday Reserve 3,996,257 3,996,257

Total: 107,306,170 93,846,637

04.01 Retained Earning: 103,309,913 89,850,380

Opening Balance 89,850,380 68,135,353

Add. Prior Years' adjustment - -

Less. Stock Dividend - -

Add. Profit during the period 13,459,533 21,715,027

Total: 103,309,913 89,850,380

05. LONG TERM LOAN- SECURED: 32,202,473 33,260,993

Social Islami Bank Ltd.

Opening Balance 33,260,993 37,098,243

Addition during the period - 3,000,000

Add: Interest charged during the period 1,143,480 2,424,503

34,404,473 42,522,746

Less: Payment made during the period 2,202,000 9,261,753

Total: 32,202,473 33,260,993

The above loan has been availed from Social Islami Bank Ltd. as Term Finance Facilities.

Amount in Taka

30.Sep.16 30.Jun.16

8

06. PROPERTY, PLANT & EQUIPMENT:Tk. 548,338,322 30-06-2016: Tk. 549,311,615

Rate

SL. Addition Adjustment of

No. during during Dep.

the period the period (%)

1. Land & Land Development 83,014,146 5,050,007 - 88,064,153 - - - - 88,064,153 83,014,146

2. Factory Building & Construction 44,859,378 1,922,538 - 46,781,916 5% 12,976,331 406,851 - 13,383,182 33,398,734 31,883,047

3. Plant & Machinery 626,715,938 1,925,327 - 628,641,265 10% 206,025,238 10,534,095 - 216,559,333 412,081,932 420,690,700

4. Electric Installation 7,392,550 149,396 - 7,541,946 10% 3,208,475 108,337 - 3,316,812 4,225,134 4,184,075

5. Vehicle 851,080 - - 851,080 10% 360,392 12,267 - 372,659 478,421 490,688

6. Office Equipments 3,784,187 79,450 - 3,863,637 10% 1,614,901 55,648 - 1,670,549 2,193,088 2,169,286

7. Furniture & Fixture 1,854,528 1,203,505 - 3,058,033 10% 854,866 39,318 - 894,184 2,163,849 999,662

8. Vehicle 6,210,544 - - 6,210,544 10% 330,533 147,000 - 477,533 5,733,011 5,880,011

Total: AS on 30.09.2016 774,682,351 10,330,223 - 785,012,574 225,370,736 11,303,516 - 236,674,252 548,338,322 549,311,615

Total : As on 30.06.2016 757,411,740 17,270,611 - 774,682,351 201,934,382 23,436,354 - 225,370,736 549,311,615 -

Notes 30 September 2016 30 September 2015

22.01.02 11,061,550 12,042,520

23 241,966 78,414

Total: 11,303,516 12,120,934

Administrative expenses

Written Down

Value as on

30.09.2016

Written Down

Value as on

30.06.2016

Allocation of Depreciation:

Manufacturing overhead

Balance as on

01.07.2016

Charged

during the

period

Adjustment

during the

period

Administrative Components:

Manufacturing Components:

Balance as on

01.07.2016

Total as on

30.09.2016

Amount in Taka

Total as on

30.09.2016

Cost Depreciation

Particulars

9

07. CAPITAL WORK IN PROGRESS (CWIP): 163,707,056 148,927,056

Opening Balance 148,927,056 143,323,949

Add: Addition during the period 14,780,000 5,603,107

163,707,056 148,927,056

Less: Transfer to Plant & Machinery - -

Total: 163,707,056 148,927,056

08. ADVANCE, DEPOSIT & PRE-PAYMENTS: 31,802,633 28,275,419

Advance against Tax 20,603,346 17,753,596

Advance against VAT 4,829,988 2,091,730

Advance against Rent -Factory 40,000 40,000

Advance against L/C- Margin & Purchase - 1,720,817

Advance against Construction 4,500,000 4,500,000

Advance against Salary 378,249 1,038,887

Security Deposit- Telephone (3 Nos.) 30,000 30,000

Security Deposit- Electric Connection (Mymansing PBS-2) 85,000 85,000

Office Rent-Senakalyan Bhaban 439,680 439,680

Advance for Expenses 896,370 575,709

Total: 31,802,633 28,275,419

09. INVENTORIES: 80,035,007 46,771,879

Raw Materials (Note-09.01) 54,571,690 27,369,400

Finished Goods (Note-09.02) 25,463,317 19,402,479

Total: 80,035,007 46,771,879

Amount in Taka

30.Sep.16 30.Jun.16

The above amount has been spent to erect and install new Plant & Machinery and essential Infrastructure

for new product “Zinc Sulphat & Magnesium Sulphat”. Amount transferred to Fixed Assets subject to

completion of particular construction and in accordance with the decision of the Board.

10

Amount in Taka

30.Sep.16 30.Jun.16

09.01 Raw Materials: 54,571,690 27,369,400

Opening Balance 27,369,400 19,634,733

Add: Purchase during the period 44,154,939 46,455,245

71,524,339 66,089,978

Less: Issued during the period 16,952,649 38,720,578

Total: 54,571,690 27,369,400

09.02 Finished Goods: 25,463,317 19,402,479

Opening Balance 19,402,479 25,105,939

Add: Cost of Production during the period (Note- 22.01) 38,938,735 77,463,655

58,341,214 102,569,594

Less: Cost of Goods Sold 32,877,897 83,167,115

Total: 25,463,317 19,402,479

10. SPARE PARTS: 7,907,240 8,356,302

Opening Balance 8,356,302 8,362,419

Addition during the period: 303,300 1,073,883

Local 303,300 1,073,883

Foreign - -

Spare Parts Available 8,659,602 9,436,302

Less: Issued during the period 752,362 1,080,000

Total: 7,907,240 8,356,302

Acid proof Breaks Belcher

Acid proof Pumps Acid Proff Gasket

Pipe- MS & SS Cement

Pipe- PVS P. H. Paper

Welding Rod- MS & SS Paint, Thinner and Brush

Plane Sheet- MS & SS Pop Poly

Eangle Channel- MS Rope

VIM- MS Gumboot

Geskate- Robber Emery Papers

Cutting Dish Cap

Drill Beat Filter

Capacitor Circuit Bracker

Hacks Blade Dress

Magnetic Contact Generator & Spare Parts Potacium Cilicate

Tape

Grinding Lihue

Tube Light

Bearing

E. Bulb

Hand Globs

Motors

G. I. Hook/ Clam

Cable

Scale

Gate Bulbe

Acide Proof

CementNut-bolt- MS & SS

The significant items of Spare Parts are presented below:

The main Raw Material is Sulpher. Its use is large in volume. Other complementary materials are Custic

Soda, Lime and Soda Ash.

11

Amount in Taka

30.Sep.16 30.Jun.16

11. ACCOUNTS RECEIVABLE: 26,230,593 25,046,528

Arian Chemical 1,507,042 1,459,892

Asad Trading 1,352,475 7,862,573

Dhaka Chemical 11,113 11,113

Friends Chemical 8,577,982 5,313,174

Hassan Chemical - 242,945

Jaman Enterprise 2,413,775 2,158,475

Jamil Consumer Ltd. 37,950 37,950

Jharna Chemical 1,732,259 5,114,134

Kader Product 42,028 42,028

New Sun Chemical 102,850 102,850

N P Chemical 4,331,836 2,187,811

Shahjahan Chemical Industry 650,787 261,212

Standard Union Chemical 12,650 12,650

Star Trading Agency 12,650 12,650

Tareque Enterprise 5,365,421 147,296

Zaber & Zubaier Fabrics 79,775 79,775

Total: 26,230,593 25,046,528

12. OTHERS RECEIVABLE: 3,921,208 2,779,878

Farhadnagar Machineries & Services 90,000 50,000

PF Fund Loan 1,425,504 1,428,043

New Panama Printers 780,000 780,000

Khodoker Printers 3,700 2,000

Global Quick Service 93,798 -

Kalco Corporation - 250,000

Shahjalal Engineering 22,657 22,657

Shahin Enterprise 390,678 24,678

Electromech Automation & Eng. Ltd. 300,000 -

Link3 Technology 16,600 -

Runner Motors Ltd. 202,500 202,500

Ratan Enterprise 5,000 -

Satcom Engirnering 570,771 -

Institute of Diploma Engineers 20,000 20,000

Total: 3,921,208 2,779,878

12

Amount in Taka

30.Sep.16 30.Jun.16

13. CASH & CASH EQUIVALENTS: 33,612,244 37,668,630

Cash in Hand: 911,780 523,747

Head Office 620,010 250,559

Factory 291,770 273,188

Cash at Bank: 32,288,322 36,732,741

JBL, C/A # 0010-0210001636Uttara Branch 1,479 1,479

Jamuna Bank Ltd., A/C # 0006-0210011891 2,355 2,355

NCC Bank, A/C # 0210014874 7,989 7,989

NCC Bank, A/C # 0325000813 12,950,505 12,950,505

NCC Bank, A/C # 00280210017915 131,734 131,734

Dutch Bangla Bank,A/C # 10511015936 23,358 123,358

CBCL, C/A # 1802001362 1,272 1,272

MTBL, C/A # 2032003267 4,325 4,325

Soial Investment Bank, A/C # 133300000121 10,689 10,689

SIBL, C/A # 0211330009134 Dhanmondi Br. 19,618 19,618

SIBL, C/A # 0221330009875, Nawabpur Road Br. 19,040,160 23,403,927

SIBL, C/A # 1011330000019, Mawna Br. 78,558 59,210

Bank Asia, C/A # 03533000949, Shantinagar Br. 8,590 8,590

Basic Bank Ltd, C/A # 0210010007825 7,690 7,690

B.O. A/C-19573, Shyamol Equity Management Ltd. 412,142 412,142

Total: 33,612,244 37,668,630

i)

ii)

iii)

Cash & Cash Equivalents includes Cash in Hand and at Bank in different Accounts.

Cash in Hand as on 30.09.16 was shown as per books of the company.

Cash & Cash Equivalents includes balance shown in B.O. A/C No.-19573 as on 30.09.16.

13

Amount in Taka

30.Sep.16 30.Jun.16

14. SHORT TERM LOAN: 96,842,881 63,645,457

Loan Trust Receipts (LTR) 31,338,418 23,376,346

Cash Credit 65,504,463 40,269,111

Total: 96,842,881 63,645,457

15. ACCOUNTS PAYABLE: 7,407,004 7,250,237

B.S.K Chemical Industry Ltd. 418,950 801,900

Haque Traders 444,000 444,000

Hasan Chemical Supply & Pharmaceuticals 1,206,105 1,380,309

Hasan Chemical Kustia 983,759 -

Mita Chemical & Scientific Store 1,854,124 1,579,699

Munshi Enterprise 904,771 278,612

Yeasmin Welding 653,254 653,254

S. K. Enterprise 197,781 197,781

Hass Technology 320,230 320,230

Goodluck Transport 1,140 443,680

Global Quick Service - 218,531

A. A Enterprise 325,690 314,541

Ratan Enterprise - 15,000

Ibrahim & Sons - 54,000

Pacific Chemitrade Co. 63,750 21,250

Satcom Engineering Ltd. - 494,000

Rumi Enterprise 33,450 33,450

Total: 7,407,004 7,250,237

14

Amount in Taka

30.Sep.16 30.Jun.16

16. OTHERS PAYABLE: 14,028,267 16,473,349

Share Subscription Money 12,193,758 12,193,758

Tax Deducted at Sources (TDS)- TAX 593,045 431,285

Dividend Payable 794,537 794,537

Access Telecom (BD) Ltd. 9,000 -

Sena Kallyan Bhaban 379,927 -

Car Rent 58,000 142,000

PPF Payable - 2,911,769

Total: 14,028,267 16,473,349

17. PROVISION FOR EMPLOYEE BENEFITS: 6,649,452 6,232,716


Add. Charged for the period 416,736 862,200

6,649,452 6,255,088

Less. Payment made during the period - 22,372

Total: 6,649,452 6,232,716

18. PROFIT PARTICIPATION FUND: 3,735,857 3,006,006


Add. Charged for the period 1,007,513 1,684,152

4,013,519 6,496,390

Less. Payment made during the period 277,662 3,490,384

Total: 3,735,857 3,006,006

This includes provision made for Worker's Profit Participation Fund as per the provisions of the

Bangladesh Labour Act, 2006 and the Bangladesh Labour (Amendment) Act, 2013.

This includes provision made for employer's subscription & employees' contribution to provident fund

and gratuity which is payable within the service life of each employee and/ or after his/ her retirement as

per terms of emlpoyment of service.

15

Amount in Taka

30.Sep.16 30.Jun.16

19. PROVISION FOR INCOME TAX: 64,341,937 61,308,718

Opening Balance 61,308,718 57,282,330

Income Tax Expenses 5,683,219 10,283,866

Provision during the period @25% on net profit 4,785,688 7,999,723

Deferred Tax Expenses (Note- 19.01) 897,531 2,284,143

Less. Payment/ Adjustment made during the period 2,650,000 6,257,478

Total: 64,341,937 61,308,718

19.01 DEFERRED TAX:

Account Base Tax Base

Taxable

Temporary

Difference

Carrying Amount 548,338,322 374,655,707 173,682,615

Tax Rate 25%

Deferred Tax 43,420,654

Opening Deferred Tax 42,523,123

Deferred Tax Expenses for the period 897,531

20. PROVISION FOR EXPENSES: 1,348,911 421,844

Audit Fees 95,250 95,250

Electricity Bill- Factory 5,956 5,956

Electricity Bill Head Office 4,402 4,402

Office Rent 113,680 113,680

Remunerations 14,822 -

Salary (Admin. & Selling) 513,949 198,882

Telephone Bill- Head Office 2,190 3,674

Wages 598,662 -

Total: 1,348,911 421,844

The agrigated amount of Deferred Tax for the earlier years has been included in the opening balance of

the "Provision for Income Tax".

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30-09-2016 30-09-2015

21. SALES-NET OF VAT: 62,593,043 59,702,870

Gross Sales 71,981,999 68,658,300

Less : VAT 9,388,956 8,955,430

Total: 62,593,043 59,702,870

21.01 Gross Sales: 71,981,999 68,658,300

Sulphuric Acid 63,102,424 59,134,000

Battery Grade Water 8,879,575 9,524,300

Total: 71,981,999 68,658,300

22. COST OF GOODS SOLD: 32,877,897 32,342,571

Opening Stock of Finished Goods (Note-09.02) 19,402,479 24,053,599

Add: Cost of Production (Note-22.01) 38,938,735 38,266,905

58,341,214 62,320,504

Less: Closing Stock of Finished Goods (Note-09.02) 25,463,317 29,977,933

Total: 32,877,897 32,342,571

22.01 Cost of Production: 38,938,735 38,266,905

Opening Stock Available 27,369,400 8,592,454

Add: Purchase of Raw Material 44,154,939 21,962,258

71,524,339 30,554,712

Less: Closing Stock of Raw Material (Note-22.01.01) 54,571,690 10,080,111

Raw Material Consumed 16,952,649 20,474,601

Add: Manufacturing Overhead (Note-22.01.02) 21,986,086 17,792,304

Total: 38,938,735 38,266,905

Amount in Taka

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30-09-2016 30-09-2015

Amount in Taka

22.01.01 Closing Stock of Raw Material: 54,571,690 10,080,111

Sulphar 53,400,777 8,996,116

Custic Soda 979,403 327,767

Lime 29,537 460,380

Soda ash 161,973 295,848

Total: 54,571,690 10,080,111

22.01.02 Manufacturing Overhead: 21,986,086 17,792,304

Wages & Allowances 2,266,996 1,895,947

Bonus 368,920 529,262

Carrying & Transport 3,126,873 1,117,745

Conveyance 14,248 16,716

Cell phone-Factory 11,620 6,000

Cooker Bill 3,000 6,000

Electricity Bill 1,181,950 634,557

Entertainment 118,769 78,933

Fuel for Generator 2,357,000 952,000

Loading & Unloading 260,250 209,520

Medical Expenses 12,498 1,280

Office Maintenance Factory 88,823 75,529

Paper & Periodicals 620 950

Rent for Staff Quarter - 25,000

Insurance Premium 301,406 -

Stationery 9,201 2,343

Spare Parts 752,362 198,002

Testing Fees 50,000 -

Depreciation (Note- 06) 11,061,550 12,042,520

Total: 21,986,086 17,792,304

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30-09-2016 30-09-2015

Amount in Taka

23. ADMINISTRATIVE EXPENSES: 5,431,568 5,692,310

Salary & Allowances 1,610,891 736,574

Bonus 517,964 827,778

Remuneration 1,287,000 1,348,965

Advertisement - 118,358

AGM Expenses - 1,077,126

Bank Charge and Other Charges 5,310 16,405

Conveyance 29,125 13,170

Cell phone 29,650 16,700

Computer Maintenance 21,480 3,000

Car Rent 216,000 162,000

Car Maintenance 393,907 243,375

Carrying & Transport- Admin 5,780 16,740

Dish Line Bill 14,900 600

Electric Bill 14,311 6,515


Garage Rent 32,400 24,600

Internet Bill 44,226 64,133

Insurance Premium - 172,297

Medical Expenses 16,900 4,805

Office Rent 449,280 183,200

Office Maintenance 27,570 59,587

Printing & Stationery 30,785 61,087

Plantation - 550

Postage & Telegram 5,175 4,190

Paper & Periodicals 2,343 2,886

Registration & Renewal 32,450 83,200

Subscription Charges- DSE, CSE - 265,087

Telephone Bill 3,238 2,017

Traveling Expenses 323,853 58,500

Water Bill - 1,836

Wasa Bill 5,845 1,836

Web Page & Software Maintenance 3,060 -

Depreciation (Note- 06) 241,966 78,414

Total: 5,431,568 5,692,310

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30-09-2016 30-09-2015

Amount in Taka

24. SELLING & DISTRIBUTION EXPENSES: 1,021,469 816,691

Salary & Allowances 775,459 554,993

Bonus 129,497 208,660

Cellphone 18,700 14,800


Traveling & Conveyance 79,699 34,080

Total: 1,021,469 816,691

25. NON- OPERATING INCOME: - 110,748

Interest on TDR & FDR - 110,748

Total: - 110,748

26. FINANCIAL CHARGES: 3,111,843 3,998,625

Trust Receipt (LTR) 717,042 575,694

Cash Credit 1,251,321 660,921

Term Loan 1,143,480 2,762,010

Total: 3,111,843 3,998,625

27. BASIC EARNING PER SHARE: 0.24 0.16

Net Profit/ (Loss) After Tax- during the period 13,459,533 9,019,939

Divided by-

Number of Shares: 56,169,135 56,169,135

Opening Quantity of Shares- 14,100,010 14,100,010

26,000,000 Shares issued on 21/04/2011 through IPO 26,000,000 26,000,000

2,005,000 Bonus Shares issued on 08/08/2011 2,005,000 2,005,000



4,642,077 Bonus Shares issued on 04.09.2014 4,642,077 4,642,077

5,106,285 Bonus Shares issued on 19.08.2015 5,106,285 5,106,285

Basic Earning per Share: 0.24 0.16

EARNING PER SHARE (EPS)- RESTATED:

Net Profit/ (Loss) After Tax- during the period 13,459,533 9,019,939

Number of Shares 58,977,592 58,977,592

(Considering proposed stock dividend @ 5% i. e. 2,808,457

Shares for the year 2015)

Earning Per Share (EPS)- Restated: 0.23 0.15

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28. PRODUCTION CAPACITY:

The production capacity & actual production of the company are as follows:

Particulars

Installed Capacity Kg. (Per Year) 25,550,000 Kg.

Installed Capacity Kg. (for 03 months) 6,387,500 Kg.

Actual Production Kg. (during the period 03 months) 5,327,502 Kg.

Capacity Utilized 83.40%

29. REMUNERATION:

Detail of remuneration paid during the period is as follows:

Name Remuneration Tax at

Source

Net

Payment

Mrs. Khondoker Afia Sultana- Managing Director 675,000 75,000 600,000

Mr. Salam Obaidul Karim- Chairman 567,000 63,000 504,000

M. A. Monnaf Khan, Legal Advisor 45,000 - 30,000

Total: 1,287,000 276,000 1,134,000

Currently the directors are not enjoying any other benefits from the company.

30. NUMBER OF EMPLOYEES:

The numbers of employees of the company at the period then ended were as follows:

Category

Number of

Employees

Manufacturing Workers (including one foreign employee)

72

Sales & Distribution Officers and Staff

6

Management, Administrative Officers and Staff

17

Total Employees: 95

The above employees of the company have been employed with a compensation of more than

Tk. 5,000 and TDS was considered under Section-50 of the Income Tax Ordinance, 1984, where

applicable.

31. PROFIT PARTICIPATION FUND:

The company provides 5% of its net profit before tax after charging such expenses as Profit

Participation Fund in accordance with Section- 234 and 235 of the Bangladesh Labour Act, 2006

and Section-65 of the Bangladesh Labour (Amendment) Act, 2013.

32. DEFERRED TAX:

Deferred tax has been recognized in accordance with Bangladesh Accounting Standard (BAS)-12

“Income Tax”. Deferred Tax is provided using the liability method for temporary difference

between Financial Statements and Tax-base. Deferred tax has been determined at the effective

income tax rate prevailing at the reporting date.

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33. RELATED PARTY TRANSACTION:

The company in normal course of business has not entered into any transaction with any

individual/ entity that fall within definition of related party contained in Bangladesh Accounting

Standards-24 (BAS-24).

34. GENERAL:

i) Figures shown in the accounts have been rounded-off to the nearest Taka;

ii) Previous year figures have been re-arranged where necessary to conform to current year’s

presentation;

iii) All shares have been fully called-up and paid-up;

iv) There was no Contingent Liability.

v) Bank Balance shown in the accounts were duly reconciled.

vi) The Board of Directors in its 115th meeting held on 28 April, 2016 recommended stock

dividend @ 5% for the year ended 31 December 2015 which would be placed in the 14th

AGM of the company for approval.

Company Secretary Managing Director Chairman

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Company Secretary Chief Financial Officer

Quarterly Financial Statements (Q1) of SALVO CHEMICAL ...

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