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OF KYCR COIL INDUSTRIES LIMITED
Public offering of 30,000,000 ordinary shares of Tk. 10/- at an issue price of Tk. 90 each including premium of Tk. 80 per share under book building method.
Credit Rating Status Rating Company Long Term Short term Date of Rating: Credit Rating Information and Services Limited (CRISL) AAST-3 01 November 2010
Manager to the Issue
Rahman Chamber (3rd floor) 12-13 Motijheel C/A, Dhaka- 1000 Tel: 9515468,9515469 Fax: 88-02-9515467
TABLE OF CONTENTS
Section I: Definition and Elaboration General information Section II: Capital Structure & Use of IPO Proceeds Summary of Annual General Meeting of KYCR Coil Industries Limited Use of IPO proceeds and utilization plan Section III : Description of business Overview of the Group The Project Nature of Business Description of Products Process Flow Charts Details of Manufacturing of Products (Galvanized Products) Market Overview Strengths of KYCR Coil Industries Limited Internal Controls & Corporate Practices Relative contribution of Products contributing more than 10% of the total revenue Associate, Subsidiary/Related Holding Company Competitive condition in business Sources and availability of raw materials and principal suppliers Distribution of product/services Sources of, and requirement for power, gas and water or any other utilities Customers providing 10% or more revenues Contract with principal customers and suppliers Material patents, trademarks, licenses or royalty agreements Number of Employees Capacity and current Utilization Section IV: Description of property Section V: Financial Condition and Plan of Operation Internal and external sources of fund Material Commitment for Capital Expenditure Causes for any Material Change from Period to Period Seasonal aspect of the company’s business Known trends, events or uncertainties Changes in the assets of the company used to pay off any liabilities Loan taken from holding/parent company or subsidiary company Loan given to holding/parent company or subsidiary company Future capital expenditure VAT, income tax, customs duty or other tax liability Operating lease agreement Financial lease and other financial commitment Personnel related scheme Revaluation of Assets Transaction with subsidiary/holding company or associate companies Auditors’ certificate regarding allotment of shares to sponsor shareholders Material information which is likely to have an impact Section VI: Directors and officers Information regarding directorship Directors' involvement in other organization Page No 5 7 7 8 8 10 10 10 11 11 12 14 16 17 20 20 21 21 21 22 22 22 22 23 23 23 24 25 25 25 25 27 27 27 27 27 28 28 28 28 28 29 29 30 30 31 31 31
Subscription and Market Market for the securities being offered Description of Securities outstanding or being offered Debt securities Section X: Risk factors & management perceptions about the risks Section XI: Corporate Directory Section XII: Auditors’ Report and related certificates Audited Financial Accounts Auditors’ Report under section 135(1). officers and employees Transaction with the Directors and subscribers to the Memorandum Tangible assets per share Ownership of the Company’s securities Shares held by Directors/shareholders Shareholding structure for 5% or more Securities owned by the officers Section VIII: Determination of offering price Indicative Price for Book Building Purpose Determining price under Book Building Method Section IX: Allotment.TABLE OF CONTENTS Family relationship among Directors and top five officers Short bio-data of the directors Credit Information Bureau (CIB) report Description of senior executives and department heads Section VII: Involvement of Directors and officers in certain legal proceedings Certain Relationships and Related Transactions Directors' facilities Executive Compensation Remuneration paid to top five salaried officers Aggregate amount of remuneration paid to directors and officers Remuneration paid to directors who was not an officer of the company Future compensation to Directors or Officers Options granted to Directors. 1994 Ratio Analysis Page No 32 32 32 33 34 34 35 35 35 35 35 35 36 36 36 36 36 37 37 38 38 42 44 44 44 45 46 49 50 51 80 84 . Para 24(1) of part II of schedule III to Companies Act.
means the process by which an issuer attempts to determine the price to offer its security based on demand from institutional investors. Dhaka Stock Exchange Limited Extra Ordinary General Meeting Eligible Institutional Investors Earnings Per Share means the lowest price of the price band within which the eligible institutional investors shall bid for security under Book-Building Method Galvanized Corrugated Iodized Hot Rolled means the price which the issuer indicates in the draft Information Memorandum taking input from the eligible institutional investors on which the bidders bid for final determination of price. Central Depository Bangladesh Limited Corrugated Iron Credit Information Bureau of Bangladesh Bank means any money paid to any person in connection with public offering of security under these Rules. Cold Rolled Cold Rolled Close Annealed Cold Rolled Full Hard Chittagong Stock Exchange Limited means the lowest price offered by the bidders at which the total issue could be exhausted. means first offering of security by an issuer to the general public Book Building of Shares of KYCR Kilo Watt KYCR Coil Industries Limited Net Asset Value means an expatriate Bangladeshi or who has dual citizenship or possesses a foreign passport bearing an endorsement from the concerned Bangladesh Embassy to the effect that no visa is required for him to travel Bangladesh Non-Oxidizing Furnace .SECTION I DEFINITION AND ELABORATION Term AGM Banker to the Issue Bidder Book Building Method CDBL CI CIB Commission/fees CR CRCA CRFH CSE Cut-off Price DSE EGM EIIs EPS Floor price GCI HR Indicative price Initial Public Offer/IPO ISSUE KW KYCR NAV Non-Resident Bangladeshi (NRB) NOF Description Annual General Meeting means banks so named in the Information Memorandum to collect money as subscription against security means the eligible institutional investors.
Term Price Discovery Information Memorandum Public Issue R&D Description means a method of determining the price for a specific security through demand and supply factors related to the market means any document prepared for the purpose of communicating to the general public an issuer's plan to offer for sale of its security under the prescribed Regulations. refund orders or certificates and other related documents Registrar of Joint Stock Companies & Firms means presentation by an issuer of security to potential investors about its issuance of security The Securities and Exchange Commission Shares of KYCR The Stock Market of Bangladesh Value Added Tax Registrar to the Issue RJSC Road Show SEC Securities Securities Market VAT . keeping record of applications and money received from investors. means public issue of security through initial public offering or repeat public offering Research & Development means the merchant banker or any person employed by the issuer registered with or approved by the Commission for carrying on the activities in relation to an issue including collecting applications from investors. finalizing the list of persons entitled to allotment of security and processing and dispatching allotment letters. assisting in determining the basis of allotment of security. keeping record of applications and money received from investors or paid to the seller of security.
Alliance Financial Services Limited. No person is authorized to give any information or to make any representation not contained in this Information Memorandum and if given or made.General information i. Alliance Financial Services Limited (AFSL) have prepared the Information Memorandum based on information provided by KYCR Coil Industries Limited (KYCR) (the Issuer Company) and also upon several discussions with the Chairman. The Issue as contemplated in this Information Memorandum is made in Bangladesh and is subject to the exclusive jurisdiction of the Courts of Bangladesh. any such information and representation must not be relied upon as having been authorized by the issuer company or issue manager. Forwarding this Information Memorandum to any person resident outside Bangladesh in no way implies that the issue is made in accordance with the laws of that country or is subject to the jurisdiction of the laws of that country. iv. Managing Director. ii. A copy of this Information Memorandum may be obtained from the Corporate Head Office of KYCR Coil Industries Limited. . having made all reasonable inquiries. the information contained herein is true and correct in all material aspects and that there are no other material facts. The Directors of KYCR Coil Industries Limited and Alliance Financial Services Limited collectively and individually. iii. the Underwriters and the Stock Exchanges where the securities will be listed. Directors and concerned executives of the issuer company. confirm that to the best of their knowledge and belief. the omission of which would make any statement herein misleading.
Italy as a turnkey basis.000.000 MT per annum.000 30.240. Currently.SECTION II CAPITAL STRUCTURE & USE OF IPO PROCEEDS Particulars Paid up Share Capital as on 31 December 2009 Bonus Share Issued in 2010 Paid up share Capital as on 31 October 2010 Proposed IPO (Initial Public Offering) Total Capital after IPO No of shares 65.400.000 300. KYCR will be able to market its product for more diverse customer and product range.000 130.400. to be imported from Deniali.000 Amount 651. expansion of Galvanizing Line and the balance amount shall be used as working capital as well as repayment of bank loan of the company. . introduction of Color Coating Line.68 million and expected to commence operation within December 2012.000 65.200.602.302. This will increase the current capacity by two fold and will allow KYCR to provide wider ( 1250mm) width material for better positioning in the International market for wider width product range. Total cost of the plant estimated to be Tk 1509.000.120. domestically and globally. no other mill in Bangladesh offers 1250mm CR and honing into this capacity and product range expansion. CR Coil Mill The new unit will be equipped with 1250mm single stand 6hi CVC cold rolling mill with annual rated capacity of 120.000 651.000 Summary of Annual General Meeting of KYCR Coil Industries Limited AGM 1st AGM 2nd AGM 3rd AGM 4th AGM 5th AGM 6th AGM 7th AGM 8th AGM Date of AGM December 1996 December 1997 December 1998 December 1999 December 2000 December 2001 December 2002 December 2003 AGM 9th AGM 10th AGM 11th AGM 12th AGM 13th AGM 14th AGM 15th AGM Date of AGM 30 December 2004 29 September 2005 18 September 2006 30 September 2007 30 September 2008 30 September 2009 25 August 2010 31 31 31 31 31 31 31 31 USE OF IPO PROCEEDS AND UTILIZATION PLAN Entire proceeds of the IPO shall be utilized for the proposed addition of CR Coil unit-2.000 1.000 160.The plant will be installed in the same site of the existing one.120.000 1.200.240.
10 to 0.50 mm thickness X 1250 mm wide @20. but will also meet the company’s drive to offer fully environment-friendly product as well as manufacturing process. Galvanizing Line A second unit of fourth generation NOF ( Non Oxidized Furnace) technology having wider width and heat based Coat Galvanizing Line with Strip thickness from 0. 1.65 million.68 510.60 and strip width of 650 mm to 1250 mm to be implemented. Proposed expenditure plan is summarized as follows: Sl.16 million.16 485. which is currently being catered by other colour coated manufacturers. 1 2 3 4 Utilization of Funds CR Mill-2nd unit Color Coating Galvanizing Line Working Capital/ re-payment of bank loan Amount (million) Tk. This plant will not only produce superior quality galvanized sheet. The state of the art colour line will also have the technology to offer panel and other household finished application that will allow KYCR to offer higher value added products to its market.Color Coating Line Colour coated sheets will allow KYCR to offer a product base that has a specialized market.65 Balance amount Implementation Target December 2012 December 2011 December 2011 Continuous .000 TPA based on ref.509. The line will have production capacity of 36. size of 0. It is expected to go into operation within December 2011. Machineries of the plant will be brought from Germany/India at an estimated cost of Tk 485. having colour coated product in the existing product portfolio will allow the Company to capture more market share of our dealers and customers. In addition. No. It will also be installed in the same factory site at an estimated cost of Tk 510.4 mm line speed @ 6000 working hours.
The fields of business have also extended from being just apparel exports to a whole array of other industries. was incorporated in Bangladesh on 04 th November 1995 as a Private Limited Company registered under the Company Act. through the establishment of one of the first garments industries of Bangladesh. The plant has been setup as a backward integration effort to provide necessary raw material for the company’s own Galvanizing plant as well as the surplus to other consumers in the industry. KDS group has interests in various sectors that includes but does not limit by the following: Apparel/Garments Private Port – Inland Container Depot Textiles Apparel Trims & Packaging Other trading operations Information & Communication Technologies IT Training Services Shares and securities trading Insurance Investment Management Banking Steel The Group is also extensively involved with a large number of activities in relation to corporate social responsibility and philanthropic initiatives. KDS has engaged the internationally renowned organizational development consultants “Ernst & Young” to develop upgraded Human Resource Management practices such as appraisal through the Balance Score Card method. Hong Kong and is expanding into United Kingdom. thereby paving the path into becoming a Bangladeshi based multinational. The group was founded in 1983. Hajji Amir Ali Chowdhury Road. with over 8000 employees.SECTION III DESCRIPTION OF BUSINESS Overview of the Group KDS Group is one of the most renowned business and industrial conglomerates of Bangladesh. KDS values human capital and is therefore committed to attract. talent mapping. dynamism. supplied by SMS . The Company’s Registered office is at 1. and over the last 27 years. with factory at Boro Kumira. through innovation. The plant notably is the only European plant of its kind in the country. KDS is always keen on taking new challenges and initiatives supported by the robust financial appetite it enjoys along with the open support of all major financial institutions in Bangladesh based on their healthy business track record with each of them. It has also established offices and agencies in Singapore. Khatungonj. The Project The Company “KYCR Coil Industries Limited”. going even beyond foreign requirements. untiring effort and dedication. the business in terms of assets and revenues have grown exponentially by sometimes over 500% a year. Today the total group can proudly declare over USD 350 million of annual revenues in total.Chittagong. 1994 bearing registration number CHC-2071 of 1995. groom and nurture talent through competitive compensations and benefit packages apart from investing in training of its potential employees under local as well as foreign trainers. 25 kilometers away from Chittagong main city. based mainly in the port city of Chittagong having extensive operations throughout the country. etc. and has taken many social initiatives for the betterment of the lives of its workforce. The Group adheres to international compliance requirements closely. staff and workers.
45 mm Width 762 MM.095 mm to 0.multislitter line and Coil to coil/coil to sheet fully automated NOF TYPE Galvanizing plant for 70000 MT.0421 acre site. 4-hi Skin Pass mill. The Company ensures qualities to meet the international standards such as ASTM. annual capacity. The Company produces various types of steel products that are as follows: Sl. houses pickling line.5 MM 762 MM 1050 MM to .000 Mt. The brand name of its corrugated sheet product is popularly known as “MURGI” or “HEN”. automobile body. 6 Hi CVC cold rolling Mill Slitting and rewinding line with an annual capacity of 120.6 MM 660 mm to 1050 mm 3 Galvanized steel sheet in coil and sheet 0. and to purchase or import raw materials to manufacture the same and its by-products and marketing the products and by-products locally and abroad. Description of Products The Company maintains its standards in the manufacturing of the products. factories and workshop for manufacturing CR Coil. No. JIS.000 Metric Tons of CR Coil. SI & BS etc. Sheet & Coil/ JIS G3302 SGCH FULL HARD ZINC COATED Z. Commissioned under direct supervision and technical assistance of SMS DEMAG Germany. CHROMATED AND DRY.3 MM to 1. 1050 MM. thus enabling us to be the most reliable supplier of cold rolled sheet in the region. to 2 Cold Rolled Close Annealed (CRCA) 0.90GSM TO Z-180 GSM. Events Incorporation as a Private Company Acquisition of CR Coil Plant (SMS. electric panels and engineering fabrications. GCI Sheet. Demag. REGULAR SPANGLE.DEMAG Germany. Sales are generally done through more than 800 active dealers across the country.BRIGHT FINISH. the result is a continuous and efficient supply of flawless quality product unrivalled by any other in the industry. Germany) Commercial Operation of CR Coil Plant Commercial Operation of NOF Plant Entry to Export Market Conversion into Public Limited Company Dates 04 November 1995 2001 01 February 2002 2008 2005 31 July 2010 Nature of business The main objectives of the company is to own and establish mills. of all kinds and description.11 MM to 0. Thickness 0. 1 Product Cold Rolled (CRFH) Full Hard Form/Grade Coil/JIS G 3141 SPCC 1B/1D for base metal uses (main input) of galvanizing plant to produce GP/GCI sheet to use for roofing and fencing/doors etc Coil and Sheet/ JISG 3141 SPCC-SD/SB for various appliances like barrels & drum/containers. The Company has got its office in Chittagong city and also got liaison office at Dhaka. a world leader in this sector.100% Hydrogen based 4-base Annealing with 21. The Complex which is built on a 11. Galvanized plain Sheet etc.
. Finally.5 MM 600 MM to 815 MM where length is 6’ to 12’ Process Flow Charts Following flowchart shall explain the broad path of formation of GCI (Galvanized Corrugated Iodized) sheet starting from the iron ore. For non-oxidization. 0.REGULAR SPANGLE. Iron ore/ limestone etc.BRIGHT FINISH. it is recoiled or sheared. Then it goes through molten zinc bath for galvanizing at 460 deg C. Corrugated sheet”. . Steel Manufacturing Plant Hot Rolling Plant Hot Rolled COIL NOT IN BANGLADESH Cold Rolled Coil Cold Rolling Plant Galvanized Corrugated Sheet Galvanization Plant NOF Zinc for galvanization As shown above.11 MM to 0. Hot Rolled coils that are imported goes through cold rolling plant to produce cold rolled coils. The coils are then taken for galvanizing in the galvanizing plant along with zinc that results in output “GP (Galvanized Plain) sheet” that goes to shearing line for 6 ft to 12 ft. Galvanizing NOF Line BP coils are used as raw materials for galvanizing under NOF technology. it goes into the passivation section and after drying. Following such.4 Galvanized Plain Corrugated Sheet and Sheet/ JIS G3302 SGCH FULL HARD ZINC COATED Z90GSM TO Z-180 GSM. these cut sheet goes to FORMING MACHINE where GCI(CORRUGATED SHEET) are produced as a final product to use for roofing and fencing etc.CHROMATED AND DRY.(L)Again. surface cleaning is done by non-oxidizing furnace at 950 deg C. corrugation is carried out in different width as per parties demand.
Hot Rolled Coils are pickled (Acid cleaning that removes Scale from the surface of the strip) and processed into cold rolled (reducing the thickness) sheets. Following thus. It softens the product back up whilst protecting it from oxidization. annealing. Annealing is carried out in a closed atmosphere of hydrogen and/or other non-oxidizing gases. In this phase. Skin Pass. and Cold Rolled Slitting. Process Flow Chart for RIM Product RIM Grade HRC Input Pickling 6 HI Mill Rolling Annealing 4 Hi Skin Pass Output CR Multi Slitter Packing . pickling and mill rolling is carried out followed by rewinding. rust preventive oil is used and also the shape is controlled. The product then goes through Skin Pass Mill (process of removing yield point elongation of Annealed sheet) for improving surface finish and flatness of the strip.Process Flow Chart for CRCA Product (Cold Rolled Sheet in Coil JISG 3141 SPCC – 1B/1D ) EDD Grade HRC Input Pickling 6 HI Mill Rolling Rewinding Annealing CRCA Coil(Output) CR Slitter 4 Hi Skin Pass Packing Hot Rolled Coils are used as input (raw materials) for manufacturing Cold Rolled Close Annealed (CRCA) product.
the company is manufacturing CRFH. the company has got four manual and an automatic galvanizing lines with a total production capacity of about 70. GPFH.6 mm x 800 mm 1. no rewinding. all the GCI sheet manufacturers used to import CR sheet as raw material. Recently. and GCI products. Only few companies established CR mills earlier in the country and KYCR was one of the followers. China and Korea. Previously. The CR (Cold Rolled) sheet is the product of Cold Rolling mill.000 MT of galvanized sheets of various sizes per annum.000 Metric Tons of corrugated sheet. The primary raw materials for production are Cold rolled sheet and Zinc to provide anticorrosive coating on that sheet. imports the HR sheet from foreign countries like Japan. Details of Manufacturing of Products (Galvanized Products) Corrugated galvanized sheet is fabricated from the Cold rolled steel sheet of varying thicknesses. Rewinding & side trimming is carried out in order to produce the output.It is a similar process as CRCA product manufacturing except the input material which is RIM grade HRC input. GCI (Galvanized Corrugated) sheets are being widely used in Bangladesh as roofing materials and also for making the sidewalls of the huts. GP. rolling is carried out after pickling the raw materials and following such. length and width. Present annual quantity of production of the company is approximately 60.0 mm x 915 mm . Process Flow Chart for CRFH Coil (End Use Galvanizing): Pickling 6 HI Mill Rolling Rewinding & Side Trimming DD/EDD Grade HRC Input Output CRFH Coil Packing To manufacture CRFH Products. and it goes through CR Multi Slitter.8 mm x 915 mm 2. Thailand. i) ii) iii) 1. being imported by the CR Plant are as follows. few indigenous sources are available for the CR Sheet. Some of the specifications of the HR Coil. CR sheets are produced from HR (Hot Rolled) sheets which are the output of full-fledged steel plant. Till date no such plant is available in the country and companies manufacturing CR sheet. It is producing corrugated galvanized sheets from Cold Rolled (CR) Steel Sheets of various thicknesses. Currently. CRCA. Presently.
140 0.180 0.240 0. Normally the sheets are sold in pieces.6 mm thick sheet 0.160 0. for 7 feet sheets. i.350 0. whereas comparatively thicker materials are used for construction of roof.280 0. a minimum corrugation is required beyond which the sheet will not serve its purpose of protection.370 0.200 0.e.0 mm thick sheet 0.196 0. the sheet is passed through the corrugation machine and then effective width of the coil is reduced by some proportion as explained below.120 0. However.8 mm HR sheet may be converted into CR sheet of following thickness in mm.176 0. For 1. boundaries etc. which denotes a running length of 72 feet.125 0. Baan is a unit exclusively used for corrugated sheets. So it is clear that the width of the galvanized sheet would be identical as that of the CR coil.6 mm then reduction of thickness may take place as follows. 840 mm 720 mm (approx.330 0. 12 sheets make a Baan.170 0.340 0. 0. Once galvanization process is complete.250 0. Baans.6 mm HR has got a width of 780/800 mm whereas width of 2.400 0. For example the 1. .150 For 2. The depth of corrugation is varied as per the requirements of the final width.186 0.45 mm depending on the thickness of original HR sheet used. Width of the sheet also varies from 27 inch to 32 inch as explained above.270 0.300 0.290 0.230 0.310 There is no scope of change of the original width i. only 10 sheets make a Baan using rounding off technique.320 0.220 0. 840 mm in the first case and the original width of CR coil would be carried throughout the entire transformation. with increment of 1 foot. The range of thickness for the CR sheet starts from as low as about 0.210 If the thickness of the sheet is 2.130 0. However it may be mentioned that for effectiveness.380 0.260 0. the number of times the sheet is rolled. In case of 6 ft sheet. Generally the width increases with the thickness as we can see that 1.360 0. and Pcs Tons.390 0.0 mm or 1. The lower thickness variety is generally used for sidewalls. The degree of reduction depends on the number of passes.In the Cold rolling plant the HR Coils are rolled in the room temperature to reduce the thickness.0 mm HR sheet is 915 mm.095 mm and ends at 0.) The reduction of width will depend on the depth of corrugation.e.190 0.156 0. Sheets are available in five lengths between 6 ft and 10 ft. but we can assume a reduction of 12%-15% of the original width.
One is continuous and another is discrete type of operation. If we consider sheet thickness up to 0. Market demand also varies for different types of thicknesses. boundaries etc. called CGL and GL respectively. As already mentioned that Galvanized Corrugated sheets are widely used in Bangladesh primarily as roofing materials. which is practically impossible for the forming industry to go for their application. The entire roll of CR sheets are galvanized and then cut into pieces with required length. tailor made by the customer's use with crack free edges. the market share will be about 70% of the total. Required ductility is achieved to facilitate drawing or any other kind of forming operations. being the most economic option. CR SLITTER CR Slitter and side trimming line ensures different widths of the coils. (The tight wound coils are annealed in a protective atmosphere in a Bell Type annealing furnace where temperature and protective gas are controlled through high-tech electronic instruments to ensure perfect grain refinement and brightness to the strip) SKIN PASS MILL The purpose of skin passing is to give a controlled light cold reduction. At least 75% of the household uses GC sheets for some application or the other.Galvanization is done by platting a very fine zinc layer on the sheets to protect corrosion. Whereas in GL. recrystallization & grain growth takes place) 3. MARKET OVERVIEW This is a product for consumption by the masses. There are two types of galvanization as per the technology of galvanization line. 2. Required mechanical & physical properties are achieved. Uniform grain size imparts uniform properties through out the Sheet (recovery. CONTROLLED ANNEALING The CRFH coils coming out from 6 HI Mill exhibit high hardness of the order of 90 to 95 HRB. when remaining 30% will cater for the balance part. These sheets are also used for making wall of the houses. When annealed strip is given skin pass reduction. There are not many distinctive factors with respect to quality of the product for . The sheet surfaces are continuously and meticulously checked to keep up the standard of quality. Gauge correction is never the intension of skin passing operation. roll of sheets are cut first and then galvanized manually controlling the zinc consumption. Also the surface finish of the strip is improved by skin passing operation.2 mm. The material is then subjected to ANNEALING to get following properties: 1. Demand of lower thickness is higher in the market compared to thicker variety. Generally 1% to 3% cold reduction is given to the strip by this operation. CGL manufacturing is continuous operation with very little manual interference. since 75% household uses GC sheet in some form or other. the operation imparts to the annealed strip a certain degree of hardening while restoring the softness of the core.
000 Productio n (MT) 200.Alam Apollo Karnafully Capacity (MT) 240. Major available brands in the market vis-à-vis manufacturers’ names are as follows. As a result competition is very high in this market and margins also coming down sharply. Rests are either local or insignificant players. The Company has a great amount of investment in the machineries and equipment that are productive and effective as well. Alam Steels Limited Apollo Ispat Complex Limited Karnafully Galvanizing Mills Limited Total number of Corrugated Galvanized sheet manufacturer is more than forty in Bangladesh.000 200. only about 25% of them are major suppliers in the market.000 200. We have formulated the market share % of each company in terms of their Capacity as well as production.R.major five/six manufacturers and hence main criterion for decision making is the price. NOF technology and heavy . Name of the Organization AK steel PHP KYCR S.000 100. Unhealthy price war is always going in the market and the market is mainly controlled by the dealers and not the manufacturers.000 50.000 75. Products are sold by manufacturer’s name as well as brand name. Following are the names of some major manufacturers in the market in order of market share. Besides.000 50. Manufacturers revise their price every now and then depending on their stock and booking position. Brand GARU HORSE MURGI MORUG RANI TOP Name of the Manufacturer Abul Khair Steel Mills Limited PHP NOF Continuous Galvanizing Mills Limited KYCR Coil Industries Limited S. Price varies throughout the year as the product is seasonal.000 120. Strengths of KYCR Coil Industries Limited The Company has latest machineries and equipment to carry out the factory operations as well as administrative activities.000 Capacity/ Production 250. The CR plant that is unique in the country gives the company an edge over its competitors.000 0 AK steel PHP KYCR S.000 50.Alam Apollo Karnafully Source: BCRCMEA (Bangladesh C. Market Price practically does not seemingly move in a logical sequence.000 120. Moreover the product is highly seasonal as the consumption picks up during the months November to April.000 100.000 150.000 50. A single manufacturer may produce more than one brands and supply those in the markets concerned. Popularity or market share of the brand/manufacturer varies from one region to another. However.000 100. Coil Manufacturers & Exporters Association) Report The brand is of more significance than the company to the customers.000 60.
Relationship with the suppliers of HR coil has been very sound in the long run so far. 3. Financial Resources i. Effective Management is carried out for Cash and other resources. Suitability of employee and the designated tasks are always monitored. iii. maintenance and necessary shut-down is carried out. Appropriate Skills employed for each functional activity that is being benchmarked against the best in the industry. iv. Accurate and timely supply of the raw materials has always been the quest for the company and it has enjoyed smooth supply of such materials over the last few decades and remained unchanged. It has very well-built relationship with the providers of finances to the company. iii. Machinery and Equipment i. A pool of experienced professionals is available with the Company as its management carries out extensive programs to recruit. select and motivate individuals of various backgrounds across the country. 2. The Plant that was imported from Germany. Traditional method such as manual involvement is being focused into sophisticated processes whilst the company is expanding its base where large sum of capital expenditures are incurred for capital intensive facilities/equipment. Existing Controls used in Operations AEC: Automatic Edge Drop Control AFC: Automatic Flatness Control AGC: Automatic Gauge Control ATC: Automatic Temperature Control CVC: Continuous Variable Crown HGC: Hydraulic Gap Control IRB: Intermediate Roll Bending MZC: Multi Zone Cooling WRB: Work Roll Bending Company’s Current Strengths (KYCR Coil Industries Limited) 1. Backward integration has already been carried out in order to get the accurate raw materials at the right time and place. ii. ii. . ii. At regular intervals. Material i. Process i.capital expenditures on brand new machineries provide the company with competitive edge in the industry. iii. 4. train. ii. Low cost of raw materials result in more added profits in the financial context. Depreciation charges are made in terms of the machinery’s estimated economic useful life and its price competitiveness in the respective marketplace. 5. The company has all brand new machineries purchased from various sources. Human Capital i.
the Company has heavy capital investment for the development of Information Technology. The norms. optimizing business cost and interdepartmental coordination. 7. Even though this has become a practice. approaches in the meeting/seminar/discussion. the company employed required hardware equipment and software facilities. Quality does bring a change among the consumers regarding the preference in the marketplace and hence Total Quality Management practice is carried out as a part of contemporary management practices. ERP system at the Company brings all the activities in a single tray and helps management take prompt yet an informed strategic decision. Culture i. In this way.6. The intranet bandwidth of this connectivity is 2 mbps. Quality is never compromised so that the customers receive value added products from the Company. iii. The information can be filtered as ERP system is available for a bird eye view as well as close watch on each and every transaction and it captures information processed in each and every functional area and matches with decision support system and management information system. . which are KICKS and Troyee. decision making. The head office and factory are connected via radio link.e ISO certificate is available with the Company and up to date. 8. ERP Software: The company uses an ERP (Enterprise Resource Planning) named KICKS and TROYEE which are Integrated Client Server Application for assisting all the departments of KYCR Steel Industry for precise and instantaneous reporting. Besides. Oracle 9i database is used in backend and Oracle developer 2000 is used as front end of Kicks and troyee is in SQL server. Quality certificate i. the Company has advanced itself by capturing raw data and information from the bottom layer of the organization. are evaluated and compared with the competitors whilst keeping in mind the welfare of the consumers of the company’s products. ethics. Management delegates the authority and responsibility to the subordinates who in turn execute the actual implementation. ii. etc. fall in the category in which normal practices such as working hours. Information is sought out at every layer of the organization on a regular basis and timely accurate information serves the key turn for every successful decision preciously and concisely. Organizational Culture is made up of the individuals working in the Company. For catering the information requirement. Management i. value. The software serves various modules and applications throughout the functional departments. it works as a feedback mechanism which would ultimately work as feed-forward. Management Information System i. The IT development in the Company has been provided below: Information Technology The Company uses total 384 KBPS dedicated internet bandwidth in factory and Head office. etc. ii.
Philanthropic Initiatives & Other Significant For the last two decades. (2) Operations Operations are handled by the experienced individuals and reporting is made at every single interval. etc. Khalil Mir Degree College. college and other learning centers. clubs & societies and founded school. Customer Records. (5) Management Review Management review is carried out on appropriate intervals so as to prevent.Corporate Social Involvement Responsibility. he is a member of few governing bodies. namely S A Noor High School. Chittagong Club. He founded Khalil Mir Girls School. Factory Supervision is crucial for the company and therefore the Company employed experienced personalities recruited locally and internationally as well. and Bhatiary Golf & Country Club. Besides. Furthermore. Khalilur Rahman students Welfare Trust and Shandhir Gousia Tayobia Dilwara Begum Senior Madrasha. locks on doors and other defense mechanism. He is holding membership with Chittagong Metropolitan Chamber. (3) Accounting Inventory calculation. Exvice President of BGMEA (Bangladesh Garment Manufacturer & Export Association). Saberia Khalilia Senior Madrasha. and Mafijur Rahman Girls High School. Khalilur Rahman Shishu Niketon. Khalilur Rahman Mohila Degee College. Sales Ledger. Credit Status. detect and correct any error that has occurred or may occur in the forthcoming period. Chairman of Pragati Insurance Company Limited. passwords. Chittagong. Hulain Saleh Noor College. The procedures for operational activities are identified and strictly adhered to as per guidance provided by the middle layer of the management. Regular Checks are also carried out in order to ensure that the assets are safe and the registered individual is responsible in answering the risk and expected outcome if need arises. Internal Controls & Corporate Practices The Company KYCR Coil Industries Limited employs robust internal controls: (1) Supervision at each layer of the Organization Management has delegated certain skilled individuals to ensure that the new entrants including rookies in the Company are well trained and motivated on a continuous basis. Khalilur Rahman” has been involved in various organizations. Executive Member of Bangladesh CI Sheet & GP Sheet Manufactures Association. the current Managing Director of the Group “Mr. etc. are carried out through software applications which integrate all the business processes in a chain. The review can be either financial or non-financial or a combination of both. Bangladesh CI Sheet Manufacturers & Exporters Association and Bangladesh CR Coil Manufacturers & Exporters Association. (4) Physical Assets These are safeguarded by the security locks. Chittagong Press Club. Chittagong Institute. . He is the President of Amir Market & Khatnganj business Community as well as Patya Foundation.
Shiba.429.000 Source: BCRCMEA (Bangladesh C.691.000 820.000 60.562.AK steel Products Ltd 2.005 4.) Local 1. S. Subsidiary/Related Holding Company The company has no associates.(6) Information Strategy The Company has its own strategy of being up to date in the industries concerned so that more significant contribution can be made for the shareholders of the company as well as other stakeholders.038 565.000 50.704.000 50.000 75.000 120. Karnafully Steel Mills Ltd Total Capacity & Production Capacity (MT) 240.206 (%) 24% 76% 100% Associate.Alam Cold-Rolled Mills Ltd.072.000 120.301.265 605. subsidiary/related holding company.127.000 545.303.India Name of the raw Materials Prime Hot Rolled Steel Sheet in Coil (HR Coil) Prime Hot Rolled Steel Sheet in Coil (HR Coil) 2 .388.000 100.936 4.903 Export 40.303 Total 1.R. Relative contribution of Products contributing more than 10% of the total revenue The relative contribution to sales and income of each product that accounts for more than 10% of the Company’s total revenue during the period ended 31 October 2010 are mentioned below: As on 31 October 2010 Sl. Central Marketing Organisation Ispat Bhawan" 40.824.000 50.684. Coil Manufacturers & Exporters Association) Report Sources and availability of raw materials and principal suppliers Sl no 1 Name of Principal suppliers KOBE STEEL/ Metal One Corporation Steel Authority Of India Ltd Address 3-23-1. PHP Re-Rolling Mills 3.000 200. KYCR Coil Industries Ltd 4. Apollo Ispat Ltd 6.012.201 5.000 Production (MT) 200. No.967 3. 1 2 Name of the products CRC CI & GP Sheet Total Contribution to sales (Tk.000 100. Competitive condition in business Major competitors of the Company with their capacity and production are given below: Name of the Organization 1. 5.315.380. Minato-Ku. Jawaharlal Nehru Road Kolkata-700 071.261. Tokyo 105-0014 Japan.
Singapore 050531. Sylhet Bogra. Gazipur Mymenshing. chuo-Ku.A) Pte Ltd. captive power plant (by Gas Generator) having capacity of 2 MW was installed and currently running at 50% utilization. distributed within the country. Besides. Jhenaidha Number of Parties 97 53 30 65 96 40 142 47 147 33 51 Sources of. Nababgong Barishal. Kustia. Power: The Company has accorded consent from Power Development Board (PDB) for a capacity of 10 MW. Faridpur. Magura. Ulchi Ro 2-Ga.E. Water: The Company has unlimited water supply from own installed deep tube-well at all times throughout the factory and office premises. Eco Tropical Resources Pte Ltd G-Steelmet Pte Ltd Nihonbashi 1-Chome Bldg. irrespective of season. Chuadanga. Singapore 068805 Prime Hot Rolled Steel Sheet in Coil (HR Coil) Prime Hot Rolled Steel Sheet in Coil (HR Coil) Prime Hot Rolled Steel Sheet in Coil (HR Coil) Lme Registered Brand SHG Zinc Ingots Lme Registered Brand SHG Zinc Ingots Distribution of product/services The product distribution is mainly depends on the dealers. Hobigong. between December and May. HT line 33 KV is also available for the Company. . 199-15. who do business with KYCR throughout the year.e. Tangail Chittagong. POSCO/Sk Networks Co Ltd Stemcor (S. Meherpur. Then they distribute products amongst sub-dealers who in turn sell those to retailer. The major dealers interact directly with the company’s sales executives for purchasing the product. Patuakhali Dhaka. Thakurgaon Comilla. Seoul. Tokyo.Baria. i. 4-1 Nihonbshi 1-Chome. gas and water or any other utilities Power is very much essential for the factory operation. Noagaon. Besides. Gas: Karnafully Gas Distribution Company Limited provides uninterrupted gas supply to the Company. Chandpur Rangpur. Any power interruption may cause the Company to lose smooth production. Jessore. Shenton House 08-09. and requirement for power. sariatpur Khulna. 103-8247. Narayangonj. Pabna Nator.3 4 5 6 7 NIPPON STEEL JAPAN/MarubeniItochu Steel Inc. Noakhali Razbari. Cox’s Bazar. The Region wise number of dealers are given below: Belts Sylhet Bogra Rajshahi Barishal Dhaka Mymenshing Chittagong Rangpur Comilla Faridpur Khulna Region B. For NOF plant. Chung-Gu. there are some who do business during the season only. korea 350 Orchard Road Unit 20-04 Shaw House Singapore 531 Upper Cross Street 03-45 Hong Lim complex. Japan Sk Myung-Dong Bld. Presently at the time of preparation of this manual there are more than 800 active dealers in the country. Perozpur.3Shenton Way.
000 60. 500. licenses or royalty agreements The Company has numerous licenses including patent/trademark for the brand “HEN” or “ Murgi”.333 45.10.000 per month Number of employees whose salary above Tk 3.000 Material patents. It is also worth mentioning that the Company has updated license for warehousing (Bond) after the HR Coil is imported from abroad. Fire License is available with Company that is up to date. the company has 89 numbers of customers who are from different regions/belts but have contractual agreements with the Company on following conditions as on 31 October 2010. management updates the Factory license regularly. Number of Employees Number of Employee 31.410 77. when the purchase order is raised. Nature of Credit: Cheque. contract is made specifying the delivery amount. 2012. Boiler License is also updated by the Company at regular intervals. 15.000 58. FDR Limit: Tk.10% 380 380 70.10.000 to Tk. it has contracts with its specific customers. Bank guarantee.Customers providing 10% or more revenues No single customer provides 10% or more of the total revenue generated by the Company. usually having one year of validity of agreement. timing of delivery. advance deposit amount. to run the factory operations.000 per month Total Capacity and current utilization of the facility CR Plant Installed Capacity (MT) Annual Installed Capacity (MT) for the period Actual Equivalent production (MT) Capacity Utilized NOF Plant Installed Capacity (MT) Annual Installed Capacity (MT) for the period Actual Equivalent production (MT) Capacity Utilized 31.2010 Number of employees whose salary below Tk 3. Besides. However.095 60. In addition.85% . Moreover.2010 120. Every year the Company updates Trade License from the respective regulatory authority at regular intervals. Also.000 100. the Company has ISO certification that is valid up to February 07. Contract with principal customers and suppliers The company does not make any specific agreement with the suppliers. trademarks.000. Trademark license has always been updated on a year to year basis. it complies with the environmental compliances as it obtains environmental certificate from time to time. However. Currently. credit terms and other conditions.
0421 acres.679.201.5921 acres of land out of 11.572.Baro Kumira. Capital Machinery .040 109. Bangladesh as well as at head office premises and are in good operating condition.SECTION IV DESCRIPTION OF PROPERTY A) The Company owns the following fixed assets at written down value as on 31 October 2010 (As per audited accounts) Written Down Value after revaluation As on 31 October 2010 772.009 24.000 686. Sitakunda.959. factory building with related structure are mortgaged with following Banks: Janata Bank Limited Mutual Trust Bank Limited Standard Chartered Bank Limited Jamuna Bank Limited AB Bank Limited South East Bank Limited Social Islami Bank Limited State Bank of India Mercantile Bank Limited Shahjalal Islami Bank Limited D) No assets were taken under lease agreement. E) No reconditioned or second hand plant and machinery are being used by the company.947. Chittagong.575 819. C) All the assets of the company are in its own name except 10.866 2.461 1.328. .666.494.728 2.530 2.874 483.115 17.198 Name of the Assets Free Hold Land Building and civil construction Plant & Machinery Office Equipment Computer Electric Installation & Air condition Fire Extinguisher Weight Scale Furniture & Fixtures Motor Vehicles Total B) All the above-mentioned assets are situated at Company’s Factory site at Juramtal .627.513.
957.146 2.395.930.484.567 186.629.399 4.278.748.411.852.515.876 31-12-2007 Taka 651.772.725.323.411.132 101.251.889 227.763 1.000.672 5. Profit After Tax is also showing a positive trend over the last years as mentioned above.200.273 431.909 31-12-2008 Taka 651.342 27.498.559.487.782.574 5.255.392.337 5.717.503.409.900 26.085.207 2.246 126.101 203.395.085.148.477 402.354.302.749 76.314.337 3.417 251.873.626.131. Finance & Selling Expenses Less: Amortization of Preliminary Expenses Other Income Net Operating Profit before WPPF Less: WPPF Profit/(Loss) before Taxes Less: Income tax expenses Profit/(Loss) After Tax 31-10-2010 Taka 5.407 1.749 31-12-2007 Taka 2.200.907 550.840 16.634.837.789 2.206 4.000 999.398.068.429.672 3. .767 523.987.113 202.093 170. Causes for any Material Change from Period to Period (as per audited accounts) Particulars Sales Less: Cost of sales Gross profit Less: Administrative.192 2.195.903.718.252 2.795.942.000 872.395.127.656 127.286 33.045.275 85.072.473.020 202.033 203.450 31-12-2008 Taka 2.442.538.074 646.200.886 106.790.290 337.803.117.575 185.783 3.220.347.917.539. WPPF has been charged in the year 2010 when it was implemented.389.348.149.477 The last three years and ten month’s financial performance shows a gradual growth on a year to year basis clearly demonstrating success in perusing aggressive growth plan by the Company.944 4.559 3.727 Material Commitment for Capital Expenditure The company does not have any such commitment for capital expenditure except capital expenditure that is expected to be incurred with the financing from IPO proceeds .000 202.179.515.169.SECTION V FINANCIAL CONDITION AND PLAN OF OPERATION Internal and external sources of fund (as per audited accounts) Internal Sources of Cash Paid-up Capital General Reserve Retained Earning Tax holiday reserve Sub Total: External Sources of Cash Long term Liabilities Short term Bank Loan Sub Total Grand Total 31-10-2010 Taka 1.582.763 1.763 1.622.618.363 63.528 402.866 3.139.942.255.527.484.400.790 593.285 31-12-2009 Taka 4.482.045.697 5.409.450 150.952.430.646.104.388.085.194 31-12-2009 Taka 651.145.163 2.194 2. The turnover of the company has been increasing constantly and the gross profit has also been increased substantially.195.781 2.000 1.552.261.
Nevertheless.74 NAV 15 10 5 0 2005 2006 2007 2008 2009 31-Oct10 Ye ar 35 30 25 20 20.2.59 3. NAV has declined slightly. Earnings Per Share (EPS) EPS Year 2005 2006 2007 2008 2009 31 October 2010 EPS 2. In 2010. since the denominator (number of shares) has been increased significantly. the EPS reported for 10 month period stands at Tk. Movement in the cost of production does not necessarily trigger any significant variation compared to all the years listed above.e. share capital of the company was increased to Tk.5 28.1. NAV of 2010 (for the 10 month period) seems to be very much strong if compared to the previous years as shown above. introduced in the very same year 2010.200.88 24.97 1.000 which has been reflected in the Financial Statements of October 2010.86 2.64.3.Graphical Presentation of KYCR’s Performance from 2005 to 2010 Net Asset Value (NAV) Year 2005 2006 2007 2008 2009 31 October 2010 NAV 20.32 26.77 and increased to Tk.64 1.5 0 2.95 3. However. in 2007. EPS strengthened throughout the years until 2009.77 3.5 1 0.97 in the year 2006 due to the tax holiday.59 1. the tax holiday was expired and taxation was charged on the earnings which is one of the critical factors that triggered EPS to decline to Tk.000.45 32. Also. i.45 29.5 3 2.85 26.1.5 EPS 2 1.85 NAV 32.86 2.50 28. Following the year 2007.302. Due to issue of bonus shares in the year 2010 that is reflected in the October 2010 Accounts. .88 24.95 1.2.32 29.64 2005 2006 2007 2008 2009 31 Oct 2010 Ye ar Explanation on the Graphical Presentation (as above) Basic Earnings Per Share (EPS) for the years 2005 was Tk.651.97 4 3. the share capital of the company remained the same. Tk.78 3.59 which was derived after deducting the Worker’s Profit Participation Fund (WPPF). Net Asset Value has been calculated for all the years from 2005 till 2010 and it shows a steady and consecutive growth over the years until the year 2009.74 Explanation on the Graphical Presentation (as above) Since the year 2005 until 2009.400.
Known trends. 8. but took a positive upturn since 2006 and showed continuous growth until the year 2009.94 5429. price also varies widely throughout the year. Government intervention at different stages of the relevant industry.39 6000 5000 3354. It then starts declining from June onwards which continues till September.39 Turnover (ml) 4000 3000 2000 1000 0 2005 2006 2007 Year 2008 2009 31 Oct 2010 2013. Natural Disaster 5.Turnover Turn over (million) 5429. 2.13 2582. Entrant of Financially viable entities in the sector 6.13 2582. Sales revenue for only 10 month period as on 31 October 2010 is still showing upward trend compared to 2009.94 2006 2007 2008 2009 31 Explanation on the Graphical Presentation (as above) Oct 2010 The Sales revenue was decreased in 2006 as compared to the performance in 2005. once season is over. Loan taken from holding/parent company or subsidiary company No loan was received from any holding/parent company or subsidiary company.9 2117. Shortage of supply of power and other utilities required for the manufacturing of products. Introduction of Government policy that may have adverse impact on the company operations. Prices become high and sometime go bizarre without logic during the season.07 4348.07 4348. Implementation of new legislation that may affect company’s affairs and most importantly. 7. 3. The unavailability of raw materials on a regular basis (Level of scarcity of resources must be taken into consideration) Changes in the assets of the company used to pay off any liabilities No asset of the company used to pay off any liabilities. Loan given to holding/parent company or subsidiary company No loan has been given to any holding/ parent company or subsidiary company.16 2013. Political and Labor Unrest 4. and sharp fall may be noticed. .16 Year 2005 Turn over (million) 3354. events or uncertainties Known events that may affect the business operations of the company are: 1. consumption picks up from the month of November to April and pick comes during January-February. Seasonal aspect of the company’s business The product is highly seasonal.9 2117. Being seasonal.
Income tax The IT assessment for the all years to 2008 (IT Assessment year 2009-2010) have been completed and agreed with the Tax Authorities while the return for 2009 has been filed and pending for assessment. Tariff value. which will be adjusted with above provision on finalization of assessment for the year 2009. The benefits are only for the employees who work more than 5 years in the Company. Customs duty or other liabilities No customs duty or similar liabilities of the company are outstanding as on 31st October 2010 except for the normal course of business. customs duty or other tax liability VAT The Company has 18 cases pending with the VAT authority against disputes arose during the period from 2005 to 2010. All the cases relate to Duty differences. A provision for contingent liability has been created against these cases. Operating lease agreement KYCR Coil Industries Limited did not have any operating lease agreement with any organization on 31st October 2010. (c) Workers’ Profit Participation Fund In the year 2010. (a)Other Benefits and Allowances . It provides the employees the following schemes & benefits: (a) EBF (Employees benefit fund) The management of the Company contributes 2% and the employees contribute 5% for the entitlement of the benefits. Financial lease and other financial commitment KYCR Coil Industries Limited did not have any Financial Lease agreement with any organization at 31st October 2010. Personnel related scheme The Company believes in supporting its employees and is offering incentives and motivation for its continued profitability and prosperity.130 as advance. Price declaration. the Company has introduced Workers’ Profit Participation Fund (WPPF) which is reflected in the 31st October 2010 Accounts. Audit demand. etc. VAT. The Honorable High Court issued stay order against all of them except 3 cases which are in Appellate Tribunal and awaits for final hearing. Company paid Tk 167.Future capital expenditure No future capital expenditure is planned except as noted under the heading “Material commitment for capital expenditure”. income tax.507.
The replacement cost takes into account the market value of various assets required to be acquired to create the infrastructure exactly similar to that of the company being revalued. (x) Land & Building of Hoechst Bangladesh Ltd. : A firm of Chartered Accountants : 20 September.216 1.465. Other major works done by the valuer As a Chartered Accountants Firm it did valuation jobs in addition to normal audit works namely : (i) IFIC Bank Ltd (ii) Desh Garments Ltd (iii) Pacific Industries Ltd (iv) Therapeutics (BD) Ltd (v) National Banks Ltd (vi) Lloyds (vii) Land & Building of Glaxo Wellcome Bd.814. plant & equipment.141.637.066 641.446. it also allows leave encashment benefits.359 902.497.683. . Itemizing showing comparison Itemizing showing comparison Asset Value Before Revaluation (Tk.840.429 Revalued Amount (Tk.000 1. Revaluation of Assets The Company made revaluation of its assets in FY 2010 and reflected in the Financial Statements of that year. Furthermore.234 184.614 Particulars Free Hold Land Building and civil construction Plant & Machinery Electric Installation &Air condition Weight Scale Motor Vehicles Total Methodology of Valuation There are a couple of internationally recognized methodologies commonly applied for valuation of property. Particulars of the valuer and summary of report are as follows: Name Qualification Work done (report date) Reason for Revaluation : Shafiq Bashak & Co.047 505. 2010 : To incorporate the fair present value of the major assets of the company in the financial statements.978. to the employees.953 198. this methodology can also determine the money value which can be realize by selling off all tangible assets of a company.747 Revaluation Surplus (Tk. considered most appropriate.862. market value method essentially estimates the cost of replacing the tangible assets of business.528.The Company provides medical allowances to its employees. was applied for revaluation of KYCR Coil Industries Ltd. Out of these.534.000.812. Transaction with subsidiary/holding company or associate companies The Company carried out a number of transactions with related parties in the normal course of business.784 508. market value method.148 16.300 826. Alternatively.852 17.CEPZ (ix) Bangladesh Welding Electrodes Ltd.540.512 25.) 772.607.000 704.119 12.935 2.) 742. etc.393 12.031.348.) 30.339.796. insurance.576 1.947.000 17. Ltd (viii) Merimo Ltd .
09 Taka 173.526 163.788.000 bonus share. Chittagong 03 January 2011 Material information which is likely to have an impact There is no other material information which is likely to have an impact on the offering or change the terms and conditions under which the offer has been made to the public. This is to certify that as per share register and other relevant records maintained by KYCR Coil Industries Limited.634.120.826.261 1 KY Steel Mills Ltd.110 31.945.350.06 Taka 31. Loan and Investment 39.10.10 Taka 368.08 Taka 31. Sd/Hoda Vasi Chowdhury & Co Chartered Accountants .(as per Audited Accounts) Sl Name of Parties Relationship Sister Concern Sister Concern Types of Transaction Sales of CR Coil 220.127.116.11.131.226. Dated.07 Taka 31.920 Auditors’ certificate regarding allotment of shares to promoters or sponsor shareholders for any consideration other than in cash.02.778 148.855. the company did not allot any shares for consideration other than in cash to any shareholders including its promoters and/or sponsor shareholders up to 31 October 2010 except 65.505 81. 321.362.359 485.679 62.134.079 2 Steel Accessories Ltd.210 351.
Ltd Sykes Securities Ltd KIY Steel Ind. Khalilur Rahman Director Director & Chairman Director Director Director Director Mr. Ltd Steel Accessories Ltd KDS Logistics Ltd Vortex Multi Ind.07. Salim Rahman Director Director Ms. Salim Rahman Ms. Ltd Sykes Securities Ltd N/A Relationship Chairman Chairman Chairman Chairman Managing Managing Chairman Chairman Chairman Chairman Director Chairman Managing Managing Managing Managing Director Chairman Chairman Director Managing Managing Director Chairman N/A Mr. Tahsina Rahman Managing Director Chairman Director 65 37 29 Since Inception Since Inception 13. Directors' involvement in other organization Name of the directors Name of the Company KDS Garments Ltd KDS Apparels Ltd KDS Hi-tech Garments (BD) Ltd KDS Fashion Ltd KDS Textile Mills Ltd KDS Cotton Poly Thread Ind. Ltd. KDS Garments Ltd KDS Apparels Ltd KDS Hi-tech Garments (BD) Ltd KDS Fashion Ltd KDS Textile Mills Ltd KDS Accessories Ltd KDS Poly Industries Ltd KDS Cotton Poly Thread Ind.SECTION VI DIRECTORS AND OFFICERS Information regarding directorship Date of Sl No.2010 Date of expiry of current term * * * *According to Articles of Association of the company. Name of Director Position Age (Years) becoming director for the first time 1 2 3 Mr. Tahsina Rahman . Ltd KY Steel Mills Ltd Steel Accessories Ltd KDS Logistics Ltd Vortex Multi Ind. one-third of the directors or if their number is not three or multiple of three then the number nearest to one-third shall retire from office by rotation at the Annual General Meeting. Khalilur Rahman Mr.
. Fuel & Oil Sector. Power plant. Khalilur Rahman Mr. Managing Director MR. Textile. (1. She has approximately five years of experience with different organizations and currently holding the responsibility as a director of the Company. He has been actively involved with different sectors like Garment. He is a resourceful member of the company and enjoying his status as a CIP which is recognized by Bangladesh Government. Inc. Ms. Mr. telecommunication. Khalilur Rahman. Garment Division. Insurance Sector. Securities Sector. Tahsina Rahman. He is also involved with many social organizations and activities. steel.. Banking and Insurance. UK GEORGE. he has got a enormous experience in various manufacturing sectors as a Chairman viz.2004 from Charming Shoppes. he is also working as a Managing Director viz. and WALMART. Securities. IT Sector. (3) SKY Securities Limited. Steel Division. Ltd. Credit Information Bureau (CIB) report Neither the company nor any of its directors or shareholders who holds 5% or more shares in the Paid in Capital of the issuer is loan defaulter in terms of the CIB report of Bangladesh Bank. He is running several industrial units as their Managing Director viz. Textile. Khalilur Rahman. He has been rewarded different types of award from home and abroad for his valuable contribution in industrial sector of Bangladesh i. . USA (5) Award of KMART Apparels Corporation. A large number of non-profit and entirely charitable educational institutions has been founded by Mr. Power Plant Sector. Shipping (Inland Container Depot).) DK Power Plant Limited (Proposed). Tahsina Rahman Short bio-data of the directors Mr. Agro processing Sector. Telecommunication Sector. Agro processing. KHALILUR RAHMAN is a seasoned and experienced businessman.. IT. Texas. Chairman He has completed MBA from USA and acting as a Director in the company. Salim Rahman Ms. CANADA. Fuel & oil. Salim Rahman Son of Mr Khalilur Rahman Wife of Mr. (3) VENDOR EXCELLENCE AWARD . Currently.e. (2) Supplier of the year 2005 Award Received from WALMART. Director She is a graduate from University of Science and Technology Center. Besides. (1) KDS Garment Industries Limited (2) KDS Cotton Poly Thread Industries Limited (3) KYCR Coil Industries Limited (4) KDS Textile Mills Limited. Salim Rahman Position MD Chairman Directors Relationship Father of Mr. Shipping. Besides KDS Group. USA 1998. Salim Rahman. (2) Raman CNG Co. Accessories Division. she is doing her MBA at IUB.1999 & 2000 etc. He is an ex-vice president of BGMEA (Bangladesh Garment Manufacturer & Export Association). Accessories. (1) President Gold Trophy for Highest Export in Readymade Garments from 1985 to 1998. Banking Sector.Family relationship among Directors and top five officers Name Mr. USA (4) Business Innovative Director.
Moddassar Ahmed Siddique Mr. Amir Hossain Designation MD Director & CEO Head of Plant Sr. Arizona Graduate-Mechanical Engineer Chartered Accountant (FCA) M. Chowdhury Mr.A. Khalilur Rahman Mr.BUET Experience The founder of KDS Group 17 Years 29 Years 14 Years 10 Years 25 Years .A. (Political Science) BSC in Engineering & Technology. Munir Hussain Khan Mr. M. General ManagerFinance & Accounts General ManagerSales & MKT Plant HeadGalvanizing Plant Education Qualification B.Description of senior executives and department heads Name Mr. Gurdeep Singh Mr.Com (Management) MBA from University of Phoenix.
suspending or otherwise limiting the involvement of any director or officer in any type of business. between the issuer and any of the following persons: (a) Any director or executive officer of the issuer. . or who was a director or connected in any way with a director at any time during the last three years prior to the issuance of Information Memorandum. any loan taken from any such person who did not have any stake in the issuer. (d) Any order of the Securities and Exchange Commission. securities or banking activities. and in-laws) of any of the above persons. apart from being a director in the issuer company. securities or banking activities. suspending or otherwise limiting the involvement of any director or officer in any type of business. children. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS Transaction with related parties Neither any proposed transaction nor had any transaction during the last two years. society. judgment or decree of any court of competent jurisdiction against any director. (c) Any person owning 5% or more of the outstanding shares of the issuer. sisters. parents.Section VII Involvement of Directors and officers in certain legal proceedings No director or officer of the Company was involved in any of the following types of legal proceedings in the last ten years: (a) Any bankruptcy petition filed by or against company of which any officer or director of the issuer company filing the Information Memorandum was a director. (g) Any director holding any position. (d) Any member of the immediate family (including spouse. permanently or temporarily enjoining. officer in a criminal proceeding or any criminal proceeding pending against him. its holding company or its associate concerns prior to such loan. (b) (c) Any conviction of director. brothers. barring. organization proprietorship or partnership firm. trust. or other regulatory authority or foreign financial regulatory authority. Any order. (b) Any director or officer. (f) Any loan either taken or given from or to any director or any person connected with the director. officer or partner at the time of the bankruptcy. (e) Any transaction or arrangement entered into by the issuer or its subsidiary for a person who is currently a director or in any way connected with a director of either the issuer company or any of its subsidiaries/holding company or associate concerns. officer.
benefits & bonuses including management emoluments Amount paid 01.788. No.138. Closing Balance as at 31.000 10.10. .350.10 Amount in Tk. 1 2 3 4 5 Name Mr.01. Periodical review of salaries and benefits of the employees will be made depending on the growth of the company’s operation. Chowdhury Mr.2009 Taka 173.09 384.2010 Taka 368.836.10 to 31.181 Closing Balance as at 31.425 Remuneration paid to directors who was not an officer of the company None of the directors enjoys any remuneration except board meeting fees.12.000 35.920 517.09 to 31.10 320.00.10 to 31.000 65. Gurdeep Singh Mr.37.778 337.261 148.A. Steel Accessories Ltd.01. 18.104.22.168.888 Sl. General ManagerFinance & Accounts General ManagerSales & MKT Plant Head. Munir Hussain Khan Mr.800 Aggregate amount of remuneration paid to directors and officers (As per audited accounts) Group Directors’ Remuneration Officers’ salaries.10.00.01.000 60.10.Except the transactions shown under “Related Parties Transactions”. EXECUTIVE COMPENSATION Remuneration paid to top five salaried officers Sl.826.72.Galvanizing Plant From 01. However. Amir Hossain Designation Director & CEO Plant Head Sr.110 163. Pay increase intention The company is yet to finalize its personnel policy. M. No 1 2 Name of the Parties KY Steel Mills Ltd.000 10.560 7.362.555 Amount paid 01. Future compensation to Directors or Officers There is no contract with any director or officer for future compensation.90. Relationship Types of Transaction Sales of CR Coil Loan and Investment Sister Concern Sister Concern Total Directors' facilities The Directors of KYCR does not enjoy any facilities except Board meeting fee and full time car facilities . Moddassar Ahmed Siddique Mr. note -27 of audited accounts 31 October 2010 and directors facilities shown hereunder.
000.000.724. KDS Garments Industries Ltd.240. (b) No assets were acquired or are planned to be acquired from the Directors and subscribers to the memorandum.240. TRANSACTION WITH THE DIRECTORS AND SUBSCRIBERS TO THE MEMORANDUM (a) The Directors and subscribers to the memorandum have not received any benefits except board meeting fees.000 37.68 % 21.000.000. Khalilur Rahman Mr.000 18. Total Status MD Chairman Director Shareholder Shareholder Shareholder Shareholder Total No.000.796 3.872.000 3.OPTIONS GRANTED TO DIRECTORS.08 % 2. No 1 2 3 4 5 6 7 Names of the Shareholders Mr.000 Shareholding Position 9.139. The issuer also has not received any assets.000 130. KIY Steel Industries Ltd.21% 13.000 29. of Share Issued 12.30% 28. KY Steel Mills Ltd.000.000 28.50 % 17. TANGIBLE ASSETS PER SHARE Particulars Share Capital (As per B/S) Revaluation Reserve Retained Earnings General Reserve Net Assets Less: Intangible Assets ( Preliminary Expenses) Net Tangible Assets Total Ordinary Shares Net tangible assets per share ( Tk.796 130. directly or indirectly during the last five years.000 10.872.302. 10 per Share) 31-10-2010 Taka 1. Salim Rahman Mr.41 % 100% . OFFICERS AND EMPLOYEES The company has not granted any option to directors.724. officers or employees. services or other considerations from its Directors and subscribers to the memorandum expect fund against allotment of shares.748.000 22.74 OWNERSHIP OF THE COMPANY’S SECURITIES AS ON 31ST OCTOBER 2010 Shares held by Directors/shareholders Sl.Tech Garments (BD) Ltd.400.240.82% 7. Tahsina Rahman KDS Hi .000 1430576602 1.194 3.
000 10.000 22.000. Khalilur Rahman . KDS Garments Industries Ltd. No 1 2 3 4 5 6 Names of the Shareholders Mr.68 % 21.000.000 28.000 Shareholding Position 9.08 % 28. Managing Director. of Share Issued 12.41 % .240.Tech (BD) Ltd. Status MD Chairman Director Shareholder Shareholder Shareholder Total No.000.Shareholding structure for 5% or more as on 31 October 2010 Sl. KY Steel Mills Ltd.000 127.000 37. Salim Rahman Mr.000. Tahsina Rahman KDS Hi .21% 13. Total Securities owned by the officers No officer own shares of the company as on 31 October 2010 except Mr.240.000 18.000.82% 7. Khalilur Rahman Mr.50 % 17.
. The brand “Murgi” has been the only choice of people in certain parts of the country even though other brands play their roles in a competitive manner in other territories across various regions in the country. The Company has ISO certification and maintains its standards as per local as well as international requirements. Besides. 10/.Section VIII DETERMINATION OF OFFERING PRICE The Fair Value will be determined by the Issuer in consultation with Issue Manager on the basis of assessment of market demand for the offered Equity Shares by the Book Building Process. Their activities are driven with the direction from the board of directors who have long years of exposure in the industry. The face value of the Equity Shares is Tk. The background and activities of the board of directors must also be taken into consideration as it counts a great deal for the efficiency and effectiveness of business operations. The process of manufacturing of KYCR products are operated by skilled professionals who are of various backgrounds such as engineering. imported from Germany. It also has experienced marketing team and technicians. Indicative Price for Book Building Purpose The following Quantitative and major Qualitative factors should be considered in assessing the Fair Price of the shares of KYCR Coil Industries Limited and accordingly the indicative price may be quoted. specialized and critical equipments which are essential to execute projects effectively. trains and motivates a pool of employees who carry out the operations at every layer of the organization. the Company uses brand new machineries and equipments for production of the products. KYCR has the Cold Rolling Plant that is one of the most advanced plant in Bangladesh. Continuous improvement while eliminating waste has always been the target of the functional individuals involved. Capital Equipments KYCR owns and employs modern. Brand Value The company has already established the brand “Murgi” in the marketplace that is well accepted by the consumers and presently being one of the strongest and renowned five major brands known throughout the country. Investors should read the following summary along with the risk factors and the details about the Company and its financial statements.. etc. employs. Quality Control KYCR employed skilled staff for maintenance of quality and improvement of such over the period of time. QUALITATIVE FACTORS Professional Management The management recruits.
if any.) 2.) 5.924 180.86 1.02 159. The Prices derived from each method have been averaged in order to minimize influence of any unusual factor.) 29. Few different methods have been used to determine the value of the shares of KYCR Coil Industries Limited under book building method.198 953.013.477 258. .) 337.178 Fixed Assets (Tk. However.004.74 32.117.354.90 Based on conservative estimate fair price of KYCR Coil Industries Limited stands at Tk. 90/.559 2. 119.80 123.160.97 2. It differs from an appraisal which only takes tangible assets into account.429. indicative price will be fixed on the basis of price quoted by the EIIs.461. The management always considered using approaches which are reasonable so as to arrive at a justified price of the shares of the company. taken from internal and external sources that are reliable.172 1. each of which provides different types of values as they cover different aspects of the company’s current position and future prospects. it is important to consider the relevant factors relating to the firm in order to derive a value.033 127.20 208.068. we have taken average of the results with weight assigned for each method.122.32 30.77 The following methods have been applied to obtain the fair price.700 667.64 3. In order to avoid the effect of differences in results produced in the methods.90.636.527.743 3.348. in obtaining the weighted average price as under: Particulars Method 1: Net Asset Value Method 2: Historical Earnings based value per share Method 3: Market Price based value per Share Method 4: Valuation with reference to P/E of similar stocks Method 5: Valuation with reference to P/BV of similar stocks Average Amount (Tk. However.388.206 4.093 106.786 748.686.940 NAV per share 29.77 119.407 2.each.131.39 27.882 Profit after Tax (Tk.328.27 25.942.582.627. the interpretation of the pricing methods by the investors is very subjective in nature and may vary from one to another. which is relatively close to the actual worth of the company. VALUATION AND THE PROCEDURES USED Valuation is an estimation of the market value of an entity.80 EPS 2. However considering the attractiveness for the investors the management of KYCR in consultation with the issue manager expects its share price at Tk.626 842.81 27. The valuation for KYCR Coil Industries Limited has been carried out based on accumulated information.488.009.59 3. However.285 251.95 1.646.74 78.127.717.900.789 2.QUANTITATIVE FACTORS KYCR Coil Industries Limited is a growing company and the relevant highlights have been provided below: Financial Year October -2010 (10 Months) 2009 2008 2007 2006 2005 Turnover (Tk.134.
302.742 251.80 31-10-2010 Taka 1.748.10 June.10 Average Source: DSE monthly Review P/E Ratio 25.46 .09 January.29 28.65 29.08 P/E Ratio 27.10 27.527.10 October.646.033 127. strength of company’s asset as well as growth of market share.000 1430576602 1. 09 to October. Set out below the calculation: Year Oct-2010 (annualized) 2009 2008 2007 2006 Average EPS Earning based value per share (EPS X Average DSE P/E for last one year*) NPAT 405.724.10 April.240.86 1.59 29.73 as illustrated in the calculation below: Month November.477 258.09 December.73 24.10 February.91 78.400.95 1.81 26.10 August.10 March.64 3.796 3.CALCULATIONS OF METHODOLOGIES Method 1: Net Asset Value Particulars Share Capital (As per B/S) Revaluation Reserve Retained Earnings General Reserve Net Assets Less: Intangible Assets ( Preliminary Expenses) Net Tangible Assets Total Ordinary Shares Net tangible assets per share ( Tk. The value is calculated by taking average of periodic EPS during last five years eight months based on current share capital. 10 per Share) Method 2: Historical Earnings based value Earnings based Value method is also based on historical performance sourced from previous audited financial statements and statistics from Dhaka Stock Exchange.924 EPS 3.74 Note: Average Price to Earnings ratio (P/E) for all companies listed with DSE during the same one year period from September.724. KYCR has already proved their market potentiality. EPS is multiplied by average P/E ratio of DSE during last twelve months. To arrive at earning based value average.796 130.139. 10 was 25.58 27. Earning based valuation are appropriate for any matured company.093 106.872.260.88 Month May.55 25.872.35 30.97 2.194 3.00 25.131.000 29.08 24.11 3.686.10 July.10 September.
58 48. Price 780. 1 2 Company Name S Alam Cold Rolled Steels Ltd.57 34. 159.95 P/BV ratio of BSRM Steels Limited is abnormally high.65 1679. Price 780. 2010 (workings above) value stands at: Average DSE P/E X Annualized EPS of KYCR = 51.19 Taking the weighted average P/E of S. Price 780. 10) 12 Month Avg. BSRM Steels Limited Total Average 12 Month Avg. Accordingly value stands at: Average P/BV ratio of S Alam Cold Rolled Steels Ltd X NAV of KYCR = 7.02 194.83 2460.62 P/BV Ratio 7.37 51.65 1679.02 Method: 4 Valuation with reference to P/E of similar stocks Sl. No. average price of last 12 months (November 2009 to October 2010) has been taken in determining P/E multiples.74 = Tk.11 = Tk.83 2460. To represent conservative valuation. The price of the comparables at Dhaka Stock Exchange is used for this purpose Method: 3 Market price based value per share Sl.20 Method 5: Valuation with reference to P/BV of similar stocks (P/BV) Sl. 1 2 Company Name S Alam Cold Rolled Steels Ltd. 2.24 EPS 14. Analyzed the distribution of P/E multiples of the companies listed with Dhaka stock exchange.77 .48 1230. BSRM Steels Limited Total Average (Face Value Tk. 1 2 Company Name S Alam Cold Rolled Steels Ltd.88 201.9 100. Alam Cold Rolled Steels Limited and BSRM Steels Limited for the period of 01 November. 208.48 1230. Steel & steel related manufacturing companies are taken as similar company.24 123.19 X 3.43 P/E Ratio 53. 100) Average (Converted face value of Tk.83 2460.48 1230.02 X 29.65 1679. BSRM Steels Limited Total Average 12 Month Avg. 2009 to 31 October. Alam Cold Rolled Steels Limited is considered.13 8. To remove the impact of regular price variations. BSRM Steels is excluded and only the weighted average P/BV ratio of S. No.24 NAV Per Share 111. No.Valuation with reference to Similar Stocks Following assumptions were taken to find out the representative Price/earning (P/E) for valuation of KYCR shares: 1.79 102. 3.
Under the process. (a) The issuer/issue manager shall issue invitation to the eligible institutional investors. giving at least 10 (ten) working days time. . both in writing and through publication in at least 5 (five) widely circulated national dailies. The bidding will be handled through a uniform and integrated automated system of the stock exchanges. The entire procedure of price discovery under book building method is delineated below. (h) The indicative price shall be the basis for formal price building with an upward and downward band of 20% (Twenty Percent) of indicative price within which eligible institutional investors shall bid for the allocated amount of security. at least 5(five) working days prior to the road show/ presentation/ seminar: (i) Stock Exchanges (ii) Bangladesh Association of Publicly Listed Companies (BAPLC) (iii) Bangladesh Merchant Bankers’ Association (BMMA) (iv) Bangladesh Association of Banks (BAB) (v) Bangladesh Leasing and Finance Companies Association (BLFCA) (vi) Bangladesh Insurance Association (BIA) (vii) Registered asset management Companies. highlighting the factors taken into consideration in support of the indicative price. signed jointly by the Chief Executive Officer (CEO) and the Financial Analyst. including at least 5 (five) registered merchant bankers. the issuer is required to disclose in detail about the qualitative and quantitative factors justifying the indicative price. in consultation with the issue manager. especially developed for book building method. or any other organization as decided by the Commission. shall quote its own indicative price in the prospectus based on the indicative prices so obtained from the eligible institutional investors: Provided that the quote of the indicative price in the prospectus shall not exceed the arithmetic mean of the price offers so obtained from the eligible institutional investors. the price of an IPO share will be determined through an automated bidding to be participated by different financial institutions and then the share will be opened for the IPO participant at the cut-off price determined during the book building process. (e) The prospectus shall simultaneously be submitted to the Commission and the stock exchanges along with the due diligence statements issued by all concerned. (b) The Information Document (ID) Shall be sent to the following institutions/ associations. (d) The issuer. (c) Participation of the representatives of the stock exchanges and Bangladesh Merchant Bankers’ Association in the road show/ presentation/ seminar as observer. unless otherwise directed by the Commission. to attend the road show/presentation/seminar indicating time and venue of such event. which may be repeated with prior permission of the Commission. (g) Rationale for the indicative price must be included in the prospectus i.Determining price under Book Building Method: Book Building is a process through which an issuer attempts to determine the price to offer its security based on demand from institutional investors. The invitation letter shall accompany an information document containing all relevant information covering the proposed issue of the issuer. The eligible institutional investors shall submit indicative price to the issuer/issue manager. within the next 3(three) working days of the said road show/presentation/seminar.e. the whole process shall be cancelled. (f) If any issue fails to get indicative prices from at least 15 (fifteen) eligible institutional investors covering at least 3 (three) categories.
subject to maximum of 5 (Five) bids. the issue will be considered cancelled unless the floor price is further lowered within the face value of security. (u) There shall be a time gap of not more than 15 (fifteen) working days or as may be determined by the Commission. 50% (Fifty Percent) of bid money deposited by them shall be forfeited by the Commission. (v) Subscription for general investors shall remain open for the period as specified by the Commission. stock exchanges. (s) In case of failure to deposit remaining amount that is required to be paid by institutional bidders for full settlement of the security to be issued in their favor. or any other organization as decided by the Commission. (t) General investors. along with the draft prospectus. Issuer will not be allowed to utilize such money until all the process of issue is completed and Commission’s consent to this effect is obtained. . (r) Institutional bidders shall deposit their bid with 20% (Twenty Percent) of the amount of bid in advance to the designated bank account and the rest amount to settle the dues against security to be issued to them shall be deposited within 5 (Five) working days prior to the date of opening subscription for general investors. (o) The bidding will be handled through a uniform and integrated automated system of the stock exchanges. (m) Prospectus will be posted on the Websites of the Commission. issue manager and issuer at least 2 (two) weeks prior to the start of the bidding to facilitate investors to know about the company and all aspect of offering. Provided that.(i) Eligible institutional investors bidding shall commence after getting consent from the Commission for this purpose. which include mutual funds and NRBs shall buy at the cut-off price. (j) Institutional bidding period shall be 2(two) successive working days. between closure of bidding by eligible institutional investors and subscription opening for general investors. (n) No institutional investor shall be allowed to quote for more than 10% (Ten Percent) of the total security offered for sale. (w) General investors shall place their application through banker to the issue. especially developed for book building method. and (x) All application money shall be kept in a separate escrow account opened with a designated bank with prior intimation to the Commission. simultaneously to the Commission and the stock exchanges within 3(three) working days from the closing day of the bidding. The securities earmarked for the bidder who defaulted in making payment shall be added to the general investor quota. (k) The issuer and the issue manager shall submit the status of bidding and the cut off price. which may be changed with the approval of the Commission. (p) The volume and value of bid at different prices will be displayed on the monitor of the said system without identifying the bidder. the issuer’s chance to lower the price shall not be more than once. (q) The institutional bidders will be allotted security on pro-rata basis at the weighted average price of the bids that would clear the total number of securities being issued to them. (l) If institutional quota is not cleared at 20% (Twenty Percent) below indicative price.
Motijheel C/A. DESCRIPTION OF SECURITIES OUTSTANDING OR BEING OFFERED Dividend.Section IX Allotment. any allotment in terms of this Information Memorandum shall be void and the company shall refund the subscription money within fifteen days from the date of refusal for listing by the stock exchanges. 1080 Sk. On a show of hand. among others. grants listing within 75 days from the closure of subscription. Subscription and Market MARKET FOR THE SECURITIES BEING OFFERED The issuer shall apply to the following two Stock Exchanges within 7 (seven) working days from the date of consent accorded by the SEC to issue the prospectus: Dhaka Stock Exchange Limited 9/F. as the case may be. with interest at the rate of 2% (two percent) per month above the bank rate. carrying equal rights to vote and receive dividend in terms of the relevant provisions of the Companies Act 1994 and the Articles of Association of the company. The issue manager. shall ensure due compliance of the above mentioned conditions and submit compliance report thereon to the Commission within seven days of expiry of the aforesaid fifteen days time allowed for refund of the subscription money. Chittagong-4100 Declaration about listing of shares with the stock exchange(s) None of the stock exchanges(s). in addition to the issuer company. In case of non-refund of the subscription money within the aforesaid fifteen days. every shareholder present in person and every duly authorized representative of a shareholder present . Trading and settlement Trading and settlement regulation of the stock exchanges shall apply in respect of trading and settlement of the shares of the Company. or from the date of expiry of the said 75 (seventy five) days. Dhaka-1000 and Chittagong Stock Exchange Limited CSE Buildng. Mujib Road Agrabad. All shareholders shall have the usual voting right in person or by proxy in connection with. to the subscribers concerned. shall be collectively as well as separately liable for refund of the subscription money. if for any reason. in addition to the issuer company. the company directors. voting and pre-emption rights The Share Capital of the Company is divided into Ordinary Shares. election of Directors & Auditors and other usual agenda of General Meeting – Ordinary or Extra-ordinary.
Articles of Association of the Company and other relevant rules in force. The declaration of Directors as to the amount of Net profit of the Company shall be conclusive. Conversion and liquidation rights In terms of provisions of the Companies Act 1994. The Company shall not charge any fee. The shareholder holding minimum of 10% shares of paid-up capital of the company shall have the right to requisition extra ordinary General Meeting of the company as provided for the section 84 of the Companies Act 1994. Dividend policy (a) The profit of the Company. Financial statements will be prepared in accordance with the International Accounting Standards consistently applied throughout the subsequent periods and present with the objective of providing maximum disclosure as par law and International Accounting Standard to the shareholders regarding the financial and operational position of the company.at a General Meeting shall have one vote and on a poll every shareholder present or by proxy shall have one vote for every share held by him or her. subject to any special right relating thereto created or authorized to be created by the Memorandum and subject to the provisions of the Articles of Association. DEBT SECURITIES There is no debt securities issued or plan to issue by the company within 6 (six) months. published by the company from time to time. the shares of the Company are freely transferable. audited as well as un-audited. Other rights of stockholders In terms of the provisions of the Companies Act 1994. (c) No dividend shall be payable except out of the profits of the Company or any other undistributed profits. the shares of the Company are transferable. (b) No large dividend shall be declared than is recommended by the Directors. an infant or person of unsound mind. Articles of Association of the Company and other relevant rules in force. (d) The Directors may from time to time pay the members such interim dividend as in their judgment the financial position of the Company may justify. In case of any additional issue of shares for raising further capital the existing shareholders shall be entitled to Right Issue of shares in terms of the guidelines issued by the SEC from time to time. No transfer shall be made to a minor or person of unsound mind. shall be divisible among the members in proportion to the amount of capital paid-up on the shares held by them respectively. The shareholders shall have the right to receive all periodical statement and reports. . but the Company in its General Meeting may declare a smaller dividend. The Company shall not charge any fee for registering transfer of shares. The Directors shall present the financial statements as required under the law & International Accounting Standard. (e) A transfer of shares shall not pass the right to any dividend declared thereon before the registration of transfer. (f) No limitation in payment of dividend is stipulated in any debt instrument or otherwise. No transfer shall be made to a firm. Dividend shall not carry interest as against the Company. other than Government duties for registering transfer of shares.
Foreign Exchange rate The project may face some degree of foreign exchange rate fluctuation risk as the Company imports raw materials against payment of foreign currency and exports the products for receipts of the same. b. The confidence level of the loan providers is raised by the management of the Company as it pursues growth and prosperity in terms of sales. However. this risk would affect the industry as a whole and after a certain period of time. These risks may result in loss of income or capital investment. If the price of the foreign currency appreciates against the local currency during import and/or depreciates during export. (It is relevant for the companies having loans/borrowings from banks/other financial institutions and significant for those with large loans/borrowings. assets. Management Perception KYCR imports most of the raw materials from abroad and exposed to such kind of risk.Section X RISK FACTORS & MANAGEMENT PERCEPTIONS ABOUT THE RISKS Investors should be aware that there are risks associated with a particular investment in the company. Interest Rate Fluctuation of the interest rates (Cost of borrowed funds) in a country affects the profitability as well as liquidity position of a company. 2. 3. Furthermore. and other positive qualitative and quantitative factors on a gradual basis. Investors should carefully consider all the risks and uncertainties associated to the company along with all the information provided in this Information Memorandum before taking decision to invest in shares of KYCR Coil Industries Limited. Effect of volatility in price seriously affects the profitability of the company. reporting and control to make the exposure below or within the standards set by the industry. Devaluation in the local currency may have significant impact on the profitability of the Company. A very competitive rate is attained by the Company as it has very well-established goodwill in the marketplace in terms of loan repayments in time. the company has continuous monitoring.) A favorable movement in the interest rates for the company results in positive effect on profitability of that company and an adverse volatility in such rates results in a negative consequence thereof. Volatility in the Earnings Raw materials for the steel mill is fully imported and price in the international market is always volatile. the costs are adjusted in prices offered by all companies operating in the industry. Management Perception Interest charges are incurred by the Company for different types of loans taken from Banks/Financial Institutions and these charges are negotiated by the Company with the respective loan providers at regular intervals. there will be a nationwide impact which would lead to market adjustment in the end product prices. 1. Management Perception Hedging mechanisms are employed by the company on a regular basis. Market is highly competitive Some of the competitors of the Company are larger than the Company and have vast financial resources that may enable them to deliver products on more attractive terms or to invest large amounts of capital into their business. including greater expenditure for better and more . Industry Risk a.
the company has enjoyed continuous flow of supply of raw materials in time and it has nevertheless forecasted better improvement in the near future. the Company has MOU with leading global suppliers like POSCO and HYUNDAI. Raw materials supply Steady supply of raw materials is important to the steel industry since steel manufacturing is a continuous process. the company has NOF plant that gives the Company a competitive edge as galvanization of steel is carried out rarely by companies in Bangladesh. Companies with uninterrupted power supply can get competitive edge over their competitors if such supply is in shortage in the overall industry. The control on over supply could be in the form of long-term supply contracts with suppliers. The Company markets the brand “Murgi ” all over the country that currently has captured a significant percentage of market share in the industry. The more sophisticated the manufacturing process. Potential and Existing Government Regulations The company operates under The Companies Act. Companies which have control on over supply of their raw materials are more capable of being cost efficient than the others which do not possess such control. 7. Any abrupt changes in the policies formulated by those bodies may leave adverse impact on the business of the Company. rule or regulation imposed on the overall sector may affect the Company’s operation and hence affect the profitability in turn. Management perception Management has long years of experience in this arena and also they have maintained a very strong positive relationship with various suppliers (Large Supplier Base) where raw materials are sourced at competitive prices. Technology The technology used for manufacturing of steel determines not only the quality of steel produced but also the cost of production. The management of the Company is aware of the recent guidelines prescribed by all the relevant authorities and complies with such from time to time whilst enhancing the performance of the Company. For ensuring regular supply. Over the last decade. Management perception Any adverse policy. Management Perception Few companies with famous brands are the key players in the industry.efficient production capabilities. Management perception Highly automated and competitive machineries are available with the company for the manufacturing of steel. The business. Interruption of power supply affects the flow of steel manufacturing. Power and Other Utilities Power is an important factor in the steel manufacturing industry. 6. the lower will be the cost of production and therefore. . Taxation Policy adopted by NBR. it has established the brand name across various territories in the country that is believed to be a positive indicator for the Company in order to grasp more market shares in the near future. Besides. 5. 4. These competitors may limit the opportunity of the Company to expand its’ market share and may compete with it on pricing of products. the Company has so far been one of the pioneers in setting up Cold Rolled Mill with State of the Art European Technology for further processing of the input materials. higher the profitability. Main raw material of KYCR is the Hot Rolled Sheet and Zinc which are imported from different sources. financial condition and prospects of the Company could be adversely affected if it is unable to compete with its competitors and sell its products at competitive prices. Moreover. In Bangladesh. Regulations of Securities and Exchange Commission (SEC) and rules adopted by other relevant regulatory organizations.
Any flaw or bottleneck in the chain will ultimately affect the company’s competitiveness in the marketplace and hence may also affect the profitability in turn. Management perception Company’s liquidity position is currently at satisfactory level and the management is constantly preparing the working capital budgets at regular intervals & also monitoring the actual movement in the working capital movement against the standards set. Management Perception The Company has more than 800 active/seasonal dealers in different belts across the country. In case of any significant and unexpected variation. 10. 11. the company has captive power plant having capacity of 2 MW (approx. Distribution network Distribution channel in the supply chain is very crucial in terms of marketing of products among its customers. Besides. Any new project carries some inherent risks and may not be successful or may take long time to secure sustained profitability. efficient working capital management to be an important factor for steel manufacturers. 9. 33 KV HT line for operation of the factory. Management’s Perception KYCR started its commercial operation on 01 February 2002 and subsequently increased its production capacity by smooth implementation of NOF Plant. The management of working capital is very much crucial for the profitability of the Company. History of non-operation Since inception .Management perception The company has supply of power from PDB for 10 MW. enables it to market and distribute its steel widely and efficiently all over the country. It is expected that the proposed expansion can be done smoothly based on experience of the sponsors in establishing project of this kind. The Company believes that this network and the cordial relationships that it enjoys with the dealers/distributors/agents.) which is used for NOF plant to ensure uninterrupted continuous line production. Moreover from FY 2005 the Company has started to export CR Coil which currently comprises about 15% of its total sales quantity. the company did not experience any closure of operation except for the requirement of maintenance. Implementation of proposed New project The company proposed to invest its IPO proceeds for implementation of its new facilities to increase value added products. Working capital management Due to the long working capital cycle of the steel industry. 8. the Company takes necessary action after identifying the permanent and floating working capital separately. .
Head Office: 255 Nasirabad I/A.org Shafiq Basak & Co.allfin.1000 Tel: 9515468. Sitakunda. 9515469 Fax: 88-02-9515467 web: www.com Mr. Dhaka. Bangladesh. National House (1st floor) 109.Section XI CORPORATE DIRECTORY Registered Office KYCR COIL INDUSTRIES LIMITED Factory: Juramtal. Web: www. Baro Kumira. Chittagong. Bangladesh Phone: 880 31 681241-4 | 682474-8 Fax: 880 31 682836 | 681398. Delwar Bhaban (4th floor) 104. Chittagong 4211.net Credit Rating Information and Services Limited (CRISL) Nakshi Homes (4th floor) 6/A Segunbagicha Dhaka-100 Tell: 880-2-7173700-1 Fax:880-2-9565783 E-mail:crisl@bdonline. Moddassar Ahmed Siddique FCA CFO Auditor Manager to the Issue Valuer Credit Rating Company’s Compliance Officer . Agrabad Comercial Area Chittagong-4100 Tel: 880-031-711561 Fax: 880-031-723680 E-mail: email@example.com Hoda Vasi Chowdhury & Co. Agrabad C/A Chittagong-4100 Alliance Financial Services Limited Rahman Chamber (3rd floor) 12-13 Motijheel C/A.
We believe that our audit provides a reasonable basis for our opinion. Sd/Chartered Accountants Hoda Vasi Chowdhury & Co (b) (c) (d) Chittagong. An audit also includes assessing the accounting principles used and significant estimates made by management. Our responsibility is to express an independent opinion on these financial statements based on our audit. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The preparation of these financial statements is the responsibility of the Company’s management. Scope: We conducted our audit in accordance with Bangladesh Standards on Auditing (BSA). evidence supporting the amounts and disclosures in the financial statements. statement of cash flow and statement of changes in equity for the period then ended together with the notes numbering 1 to 35 annexed thereto. as well as evaluating the overall financial statement presentation. We also report that: (a) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit and made due verification thereof.Section XII AUDITORS’ REPORT TO THE SHAREHOLDERS OF KYCR COIL INDUSTRIES LIMITED We have audited the accompanying balance sheet of the KYCR Coil Industries Limited as at 31 October 2010 and the related income statement to the period from 1 January to 31 October 2010. Opinion: In our opinion. on a test basis. proper books of account as required by law have been kept by the Company so far as it appeared from our examination of those books. the expenditure incurred was for the purposes of the Company’s business. in our opinion. 3 January 2011 . the financial statements. prepared in accordance with Bangladesh Accounting Standards (BAS). give a true and fair view of the state of the Company’s affairs as of 31 October 2010 and of the results of it’s operations and it’s cash flow for the period then ended and comply with the Companies Act 1994. An audit includes examining. the Company’s balance sheet and profit and loss account and it’s cash flow dealt with by this report are in agreement with the books of account and returns. the Securities and Exchange Rules 1987 and other applicable laws and regulations.
74 2.676 2.671.722 922.214.171.124 1.615.085.971.104.302.172 7.972 126.054 3.487 114.786.020.430.937.395. Plant & Equipment Capital Work-in-Progress Investment Preliminary Expenses KYCR COIL INDUSTRIES LIMITED BALANCE SHEET AS AT 31 OCTOBER 2010 31-Oct-10 Notes Taka 2.756.506.181.141 7.796 1.199 5.748.751.145. Deposits and Prepayments Cash and Bank Balances TOTAL ASSETS & PROPERTIES SHAREHOLDERS' EQUITY & LIABILITIES SHAREHOLDERS' EQUITY Share Capital General Reserve Revaluation Reserve Un-appropriated Profit CURRENT LIABILITIES Current Portion of Long Term Loan Creditors and Accruals Short Term Loan Income Tax Provision 6 7 8 9 10 Taka 11 12 13 3.194 3.672 2126.96.36.1991 1.189.411.430.220.888 316.283 31-Dec-09 Taka 1.198 286.453.470.390.200.004.446.018.000 1.050 47.16 14 15 16 17 Taka 28 NET ASSETS VALUE PER SHARE (Basic) NET ASSETS VALUE PER SHARE (Restated) CONTINGENT LIABILITIES & 34 COMMITMENTS These financial statements should be read in conjunction with the annexed notes and were approved by the Board of Directors on 02 January 2011 and were signed on its behalf by : Sd/COMPANY SECRETARY DIRECTOR Sd/Sd/MANAGING DIRECTOR Signed in terms of our separate report of even date annexed Sd/Chittagong.3 4 5 2.881 323.255.909 651.007.642 75.906.207 13.799.453.16 16.856 5.032 1.056.959 5.870.763 1.672.119 7. 3 January 2011 CHARTERED ACCOUNTANTS .099 337.ASSETS & PROPERTIES NON CURRENT ASSETS & PROPERTIES Property.283 29.181 351.920.744.229 2.087.042.671.1 3.906.576.306.724.918.785 517.872.937.696 3.74 29.715.000 202.328.500 4.975.349.881 CURRENT ASSETS & PROPERTIES Inventories Receivables Due from Sister Concern Advances.888.964.067.146 3.627.400.090 125.602 1.223.130 291.514.
914 (25.873.399.429.774) 209.479) 545.902.898) 334.623 20 21 22 5 Earning Per Share (Restated) Earning Per Share (Annualized) 29 2.283.539.767) 523.388.778.500.515.018 (3.372.025 (23.074 ) 646.285 31-Oct-09 Taka 3.764.818.342 (27.575 17 (185.290) 337.623.717.320 2.037) 333.538.796 (939.993) 363.623.397 335.782.647.907 550.399.839.KYCR COIL INDUSTRIES LIMITED INCOME STATEMENT FOR THE PERIOD FROM 1 JANUARY TO 31 OCTOBER 2010 Notes Net Turnover Cost of Goods Sold Gross Profit Operating Expenses Administrative Expenses Selling and Distribution Expenses Trading Profit Financial Expenses Gross Operating Profit Amortization of Preliminary Expenses Profit after amortization of Preliminary Expenses Other Income Net Operating Profit before WPPF Provision for WPPF Net Operating Profit before Income Tax Provision for Income Tax Profit after Income Tax 18 19 31-Oct-10 Taka 5.397 (125.077 335.978.311.435 545.165.503.255.435 25 5.647) 570. 03 January 2011 CHARTERED ACCOUNTANTS .93 These financial statements should be read in conjunction with the annexed notes and were approved by the Board of Directors on 02 January 2011 and were signed on its behalf by : Sd/Sd/Sd/- COMPANY SECRETARY DIRECTOR MANAGING DIRECTOR Signed in terms of our separate report of even date annexed Sd/- Chittagong.858.845.931.132 (37.61 1.206 (4.038.395.759 (527.11 1.439) 332.331) (6.59 3.795.571) (38.
771) 14 (126.168.470.380.141 3.628.550) (98.9188.8.131.523) 18.242) 7.65 Taka 10 Taka 30 These financial statements should be read in conjunction with the annexed notes AUDITORS' REPORT TO THE SHAREHOLDERS See Annexed Report Sd/Sd/Sd/- COMPANY SECRETARY DIRECTOR MANAGING DIRECTOR .715.3 4 (33.037) 605.KYCR COIL INDUSTRIES LIMITED CASH FLOW STATEMENT FOR THE PERIOD ENDED 31 OCTOBER 2010 31-Oct-10 Notes Taka CASH FLOW FROM OPERATING ACTIVITIES Cash received from customers & others 8.439) 1 Cash received / (payment) from short term bank loan 15 476.412.7.25 5.1 3.323.355.621.982) (119.18.050 (239.371 3.207) 49.39 (428.689.542 Financial Expenses 21 (25.916.483) (428.979 92.436.073 6.562.862 65.956.479) Cash Inflow / (Outflow) from Operating Activities 441.191.942 75.104.199 125.096) (939.486 (3.503.212.207) (126.338.191) (158.175.689.2 Cash paid to suppliers & employees (5.117 47.328.39 184.108.40.2066) (265.354.20.697 CASH FLOW FROM INVESTING ACTIVITIES Purchase of Fixed Assets Addition of Capital Work in Progress Investment Cash Inflow / (Outflow) from Investing Activities CASH FLOW FROM FINANCING ACTIVITIES (Repayment) / Receipt of Term Loan Cash Inflow / (Outflow) from Financing Activities Net Increase/ (Decrease) in Cash & Cash Equivalents Cash and Cash Equivalents at the beginning of the period Cash and Cash Equivalents at the end of the period Operating Cash Inflow / (Outflow) Per Share (Basic) Operating Cash Inflow / (Outflow) Per Share (Restated) 31-Oct-09 Taka 3.033.548) (54.571.220.659.91 4.15.030) (5.042.17.
237 202.237) 1.200.285 (449.430.430.085.145.602 3.748.624 1.KYCR COIL INDUSTRIES LIMITED STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD 31 OCTOBER 2010 Amount in Taka Particulars Balance at the beginning of the period Net Profit (after tax) transferred from Profit & Loss Account Revaluation Reserve from Revaluation Surplus Bonus Share(Unappropriated Profit) Bonus Share(General Reserve) Balance at the end of the period Share Capital 651.4220.127.116.114 2.763 (202.668.000 651.576.146 337.717.872.576.000 General Reserve 202.852.302.903.209.602 1.430.000 449.085.724.763 Unappropriated Profit 999.104.737 Total Equity 1.576.764.796 FOR THE PERIOD 31 OCTOBER 2009 Amount in Taka Particulars Balance at the beginning of the period Net Profit (after tax) transferred from Profit & Loss Account Balance at the end of the period Share Capital 651.382.285 1.764.139.763) Revaluation Reserve 1.602 Unappropriated Profit 18.104.22.168.400.763 202.113 209.763 1.717.618.085.500 These financial statements should be read in conjunction with the annexed notes AUDITORS' REPORT TO THE SHAREHOLDERS See Annexed Report Sd/Sd/COMPANY SECRETARY DIRECTOR Sd/MANAGING DIRECTOR .062.876 209.085.085.909 337.000 Tax Holiday Reserve 202.194 Total Equity 2.
CI Sheet. The previous years figures were prepared according to the same accounting principles.000. 2. Plates etc.1 Basis of preparation and presentation of the financial statements The financial statements have been prepared and the disclosures of information made in accordance with the requirements of the Companies Act 1994 and in compliance with the International Accounting Standards (IASs) adopted by the Institute of Chartered Accountants of Bangladesh (ICAB). Application of Standards The following BASs are applied to the financial statements for the year under review: BAS 1 BAS 2 BAS 7 BAS 8 BAS 10 BAS 12 BAS 16 BAS 18 BAS 24 BAS 33 BAS 34 BAS 37 Presentation of Financial Statements Inventories Cash Flow Statements Accounting policies. Subsequently the Company was converted into Public Limited Company. 1994 bearing registration number CHC . The main objectives of the company is to own and establish mills.000.000 to Tk 5.3 Principal accounting policies The specific accounting policies have been selected and applied by the Company’s management for significant transactions and events that have a material effect within the Framework for the Preparation and Presentation of Financial Statements.000. changes made to the presentation are explained in the note for each respective item. Bangladesh Accounting Standard (BAS) & Bangladesh Financial Reporting Standard (BFRS). Contingent Liabilities and Contingent Assets 2. Sitakunda.000. of all kinds and descriptions and to purchase or import raw materials to manufacture the same and its by-products and marketing the products and by-products locally and internationally.000 as per special resolution passed in the Board of Directors meeting held on 31 July 2010. The balance sheet and profit & loss account have been prepared according to BAS 1 “Presentation of Financial Statement” based on accrual basis of accounting following going concern assumption under Generally Accepted Accounting Principles (GAAP) in Bangladesh and cash flow statement according to BAS 7 “Cash Flow Statement”. The Company’s Registered office is at 1. Bara kumira.4 . However.2 Accounting convention and assumption The financial statements are prepared in accordance with the historical cost convention.Chittagong with factory office at Jouramtall. 2. Galvanizing Sheet.KYCR COIL INDUSTRIES LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 OCTOBER 2010 1 THE COMPANY & IT'S OPERATIONS The Company was incorporated in Bangladesh on 04 th November 1995 as a Private Company registered under the Companies Act. Plant & Equipment Revenue Related Party Disclosures Earnings Per Share Interim Financial Reporting Provisions. Financial Statements have been prepared and presented in compliance with BAS 1 Preparation of Financial Statements. along with the subdivision of face value of shares from Tk 100 to Tk 10 each and enhancement of Authorized Capital from Tk 1. there were no significant changes in the accounting and valuation policies affecting the financial position and performance of the company.2071 of 1995. The Company started commercial production on 1 st February 2002. Khatungonj . changes in accounting estimates and errors Events after the Balance Sheet date Taxation Property. 2 SUMMARY OF SIGNIFICANT ACCOUNTING AND VALUATION POLICIES 2. Compared to the previous period/year. Hajji Amir Ali Chowdhury Road. factories and workshop for manufacturing CR Coil.
Category of Inventories Stores and Spares Inventories-in-Trade: Raw Materials Finished Products Stores and Spares Materials-in-Transit Weighted average cost At lower of cost or net estimated realizable value Cost value At cost Basis of valuation Weighted average (moving average) cost 2.9 Foreign currency transaction Foreign currency transactions are recorded at the applicable rates of exchange ruling at the transaction date in accordance with BAS 21 the effect of changes in Foreign Exchange rates. Depreciation on revalued amount for two months has been adjusted with revaluation surplus. Foreign currency transactions are translated at the exchange rate ruling on the date of transaction. government Treasury bill which are available for use by the company without any restrictions.8 Cash and cash equivalents Cash and cash equivalents include cash in hand. Revalued amount was incorporated on 31 st August 2010 and depreciation will be charged from that date.2.1 Trade and other payables Liabilities are recorded at the amount payable for settlement in respect of goods and services received by the company.10.5 Property. Rates of depreciation on various categories of Property.10 Creditors and Accrued Expenses 2. term deposit. 2. Plant and Equipment are as follows: Particulars Factory Building Plant & Machinery Equipment & Appliance Furniture & Fixtures Motor Vehicles Rate of Depreciation 15% 10% 10% 10% 10% 2. Depreciation on current period’s addition is charged for the full period irrespective of the date(s) of acquisition. 2. . Plant and Equipment Property. Plant and Equipment are shown at historical cost less depreciation thereon.7 Trade Receivables Trade Receivables are recognized at cost which is the fair value of the consideration given. Plant & Equipment except land. 2.6 Inventories Inventories are stated at the lower of cost or net estimated realizable value in compliance with the requirements of para 21 and 25 of BAS 2. cash at banks. Depreciation is charged on diminishing balance method on all Property.
Other provisions are valued in accordance with BAS 37 Provisions. contingent liabilities and contingent assets requires management to make estimates and assumptions that affect the reported amounts of revenues and expenses. Imported HR Coil of various thickness and sizes stored in bonded warehouse for long period of time for uninterrupted production and supply. if required. other borrowing cost are recognized as an expenses.13 Revenue Recognition In compliance with the requirements of BAS 18 Revenue. Other Provisions comprise all recognizable risks from uncertain liabilities and anticipated losses from pending transactions.2 Appropriate provision has been made for Income Tax on the Operating income of the Company during the period under report. 2. Sale is completed and final. Inventories that require a substantial period of time to bring to a salable condition can be regarded as qualifying assets for the purposes of this standard. In accordance with the guidelines as prescribed by BAS 37 provisions were recognized in the following situation: When the company has a present obligation as a result of past events.11 Taxation 2. and Reliable estimates can be made of the amount of the obligation. 2.11. When it is probable that an out flow of resources embodying economic benefits will be required to settle the obligation.11. Accordingly the financial expenses incurred for procurement of raw materials have been included in “Cost of Raw Materials” as directly attributable cost in conformity with the BAS 2 and BAS 23.2 Provision The preparation of financial statements is in conformity with Bangladesh Accounting Standards BAS 37 provisions.3 Deferred income tax Deferred Tax has not been considered consistently. financial expenses of indirect nature have been charged under “Financial Expenses”. 2. revenue is recognized only when. . assets and liabilities during and at the date of financial statements. Contingent Liabilities and Contingent Assets and.10.1 The Company was allowed tax holiday for a period of five years from 1 st January 2002 to 31 December 2006.12 Contingent liabilities and assets Contingent liabilities are current or possible obligations. In accordance with BAS 37 Provisions.2. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use or sale.34 to the financial statements. in accordance with BAS 19 Employee Benefits. On the other hand. arising from past events and whose existence is due to the occurrence or non occurrence of one or more uncertain future events which are not within the control of the company. We have shown the provisions in the balance sheet at an appropriate level with regard to an adequate provision for risks and uncertainties. Contingent Liabilities and Contingent Assets they are disclosed in note .11. 2. An amount recorded as a provision represented the best estimate of the probable expenditure required to fulfill the current obligation on the balance sheet date. 2. construction or production of qualifying assets from part of the cost of that assets.14 Financial Expenses According to BAS 23 borrowing cost that are directly attributable to the acquisition. 2.
2. Earning per Share has been shown on the face of Profit and Loss Account.3 Annualize earning per share The financial period of the company covers from 01 January to 31 October 2010. 2. 1968 as amended in 1985. 2. For better understanding compare with yearend proportionate of annual earnings per share has been disclosed.2.2 Basic earning per share This has been calculated by dividing the basic earnings by the number of ordinary shares outstanding during the period under report.1 Basic earnings The Company calculates earnings for the year attributable to the ordinary share holders. the net profit after tax for the period has been considered as fully attributable to ordinary shareholders.16 Revaluation of Fixed Assets The increased value of assets arised due to revaluation of assets has been credited to equity under heading of Revaluation Surplus / Reserve as per BSA . As there is no preference dividend. . 2.18 Reporting Period The financial period of the Company covers from 01 January to 31 October 2010.15.17 Workers Profit Participation Fund The Company makes provision @ 5% on Net Operating Profit with effect from 01 January 2010 in compliance with the Companies Profits (Workers Participation) Act.15.16: Property Plant & Equipment.15. minority interest or extra ordinary items.15 Earning per share The Company calculates Earning per Share (EPS) in accordance with BAS 33. 2. 2.
461 499.715.907.000.765.450.457 31.221.468.607.607.468.721 637.note 19.880.000 31.319.959.766 16.784.458.507 9.3 PROPERTY.004.310.919 264.271 623.10.338 1.953 193.160 Weight Scale 1.840 833.050.445.818 115.10.2 Depreciation Allocated to: Factory Overhead .017.504.926.945.335 681.566 898.515 31-Dec-09 Taka 7.953 571.349.01.817 2.945.056 1.204 1.557 Furniture & Fixtures 3.051.864 1.000.403.487.810 3.478.2010 Taka 1.768.2010 350.615.116.650.304 5.588.765.692 31.053 1.596 953.172 Land and Land Development: Free Hold Land 28.843 57.391 1.005 12.839.995.141 Depreciation (Amount in Taka) Delet ion Charge Durin During g the Year the Year 27.934 33.719.907.319.064 57.314.01.479 Conditioner Fire Extinguisher 264.050.391 4.850.000 7.520 Written Down Value as on 22.214.171.1248.271 588.433 1.234 15.310.160 1.953.note 21 Taka 3.235.578 109.note 20 Selling Expenses .056 1.445 10.961 88.341 154.089.000 32.851 31-Oct-10 Taka 80.120.322.834 144.014 24.463.050.036 4.051 8.2 Administrative Expenses .344 2.2010 Addition During the Year Deletion During the Year Closing Balance as on 31.520 884.841 1.635.301.414 Electric Installation & Air 24.3Capital Work-in-Progress Factory Building Power Plant Taka .849 200.907.818 31-Oct-10 Taka - 31-Oct-09 Taka 103.5 Cost (Amount in Taka) Particulars Opening Balance as on 01.1 Operating Fixed Assets .692 Basis 90% 5% 5% 100% 15% 10% 10% 10% 10% 10% 10% 10% 10% Depreci ation Rate (%) Opening Balance as on 01.736 623.391 88.800 267.893.707.157 8.011.801 14.004 11.445.157 11.366.748 504.530 2.880.987.500.076 5.408.957 269.note 2.064 43.899 Equipment & Appliance: Office Equipment 1.824.290.774 2.at Cost Less Accumulated Depreciation .899 1.320.2010 377.871.546 12.503 Building: Factory Building 552.953.2010 (Taka) 30.858.349.108.000.101 1.951 45.10.009 12.050 100.144.050 3.579 681.2009 Taka 1.2010 30.242 59.434.447.600 40.394.699 550.379 - Closing Balance as on 31.661 29.101.335 632.076 115.408.115 17. PLANT & EQUIPMENT 3.450 19.476 1.403.897 637.440 319.363 5.721 483.397 4.851 Motor Vehicles 26.500.10.504 Computer 5.425 Plant & Machinery: Plant & Machinery 1.504.934 1.995.001 1.825 1.771.462.408.201.279.954.274.119.
576 1.614 Deletion During the Year Closing Balance as on 31.257.962 13.364 16.300 1.614 15% 10% 10% 10% 10% 10% 10% 10% 10% 742.2010 Revaluatio n Surplus During the Period 742.216 1.2010 Taka - - 742.734.393 12.602 - 3. Chartered Accountants.754 17.576.446.814.814.012 Written Down Value as on 31.556 3.952.5 Revaluation Surplus Represent revaluation surplus arised in accordance with the report on revaluation of assets carried out by Shafiq Basak & Co.528.952.240 3.576 1.240 3.031.496.940 276 15.01.013.215.814.012 12.424 16.814.186 224.080.240 207.465.201 01.2010 Depr eciat ion Rate (%) Depreciation (Amount in Taka) Openin Deleti Closing g on Charge Balance Balance Durin During as on as on g the Year 31.465.462 1.153 12.528.080.2010 (Taka) Land and Land Development: Free Hold Land Building: Factory Building Plant & Machinery: Plant & Machinery Equipment & Appliance: Office Equipment Computer Electric Installation & Air Conditioner Fire Extinguisher Weight Scale Furniture & Fixtures Motor Vehicles 31. .271.047 505.047 493.080.646.393 184.031.393 12.10.862.10.940 276 15.339.3.240 207.4 Revaluation Reserve Cost (Amount in Taka) Particulars Opening Balance as on 01.153 181.047 505.080.754 17.446.20 the 0 10 Year 12.646.430.148 13.234 184.148 13.216 1.678 181.496.234 126.96.36.199 224.734.556 3.393 184.364 16.339.01.862.339.
721 .220.067.note 6 Direct Materials Indirect Materials Indirect Materials are Consumable Items Stock .708.249.1 Stores & Spares .331 6. Electrical & Consumable Items 6.1 31-Dec-09 Taka 20.3 517.793 11.728 38.971.390.31-Oct-10 Taka 4 INVESTMENT KDS Logistics Ltd. 200.000.85 Tk 1.225.573.1 PHP First Mutual Fund 728.745.Arafah Islami Bank Ltd.989 32.540.647.110.000 Shares @ Tk 10 each (non quoted) Taka 4.418.989 Tk 30.574) - Amortization of Preliminary Expenses during the period ended on 31.099.480 2.647.307.194 294.10.495.745.443 30.85 19.993 568.989 1.2009 was Tk 527.306.2 Stock .576 1.856 20.369 1.194 529.note 6 Stores & Spares It includes Mechanical.737.443 1.note 6. 6 INVENTORIES Stores & Spares .000 27.280.note 6.971.870 4.443 32.4 Taka 6.856 7.transit .439 is shown in Income Statement.032 32. 4.708.700 nos shares @ Tk 10 each of Al .971.3 Finished Goods .807.870.500 47.036 1.814.333 45.418.971.7000 and Market Value as on that date Tk 696.in .853.369 562.note 6 Direct Materials Indirect Materials Tk Qty in MT 19. .721 145.note 6.transit .662.000 259.225.500 Face Value of 10.note 4.547.2 Raw Materials in Stock .537.861 562.737.663.261 1.2 5 PRELIMINARY EXPENSES Preliminary Expenses Amortized during the period Taka 593.000. PHP First Mutual Fund was listed on 29 November 2010.000 286.1 Raw Materials in Stock .237.in .067.737.Arafah Islami Bank Ltd.237.894.note 6.000 Shares @ Tk 100 each (non quoted) Al .662.672.186.574 (593.906 30.906 568.407. is Tk 108.
480 145.964.574 7.1 Advances .265 1.note 9 Advance to employee Advance Against Supplies Advance Against Expenses Advance Income Tax VAT Current A/C Earnest Money Advance for Share Purchase Alliance Financial Services Advance to others Tk 339.note 9.000.460 170.437 10.778 337.2 Prepayments .186.045.888 These represents the balancing amount receivables from sister concern on account of: i) CR Product Sales to KY Steel Mills Ltd.050.920.563 1.756.307.261 7 RECEIVABLES Trade Receivable Interest Receivable Taka i) ii) iii) iv) 1.090 307.347.834 2.226 1.020.121.094 4.673.368 307.004.788.011 2.099 Receivables are unsecured but considered good. ii) CR Product Sales & Temporary Loan paid to Steel Accessories Ltd.4 Finished Goods . Due from Steel Accessories Ltd.802 388.300 112.747.287.note 6 Finished Goods 4.350.1 Deposits .045. Taka 368.105.012 339.261 145.468.920 517.785 1.110 163. There have been no receivables outstanding for the period exceeding six months.note 9.181 173.261 148.212.222 4.000 167.507.3 Taka 9.189.564.138.6. Details of Trade Receivables are shown in Annexure . DEPOSITS AND PREPAYMENTS Advances .151.642 1.000.742.186.note 9.545 6.629. 31-Oct-10 Taka 9 ADVANCES.642 31-Dec-09 Taka 420.412. There is no such debt due by or to directors or other officers of the Company.307.751.629 159.480 294.180.194 351.574 .A.751.802 8. 8 DUE FROM SISTER CONCERN Due from KY Steel Mills Ltd.862.630 57.127 127.004.744.407.057 316.000 2.15 294.826.362.
209. for purchase of Al-Arafah Islami Bank shares.410.Ansar & VDP Tk 1.3 All are security deposits against contractual services to be provided by the respective institutions. CDA Avenue Branch Bank Alfalah Limited.733 67.023.747.266 72.669 4.2 All the advances and deposits amount is considered good and recoverable.142 237.578 836 1.124 717. Chittagong Branch Dutch-Bangla Bank Ltd.note 10.000 22.878 68.825 10.212.113. Prepayments . (from 01. Tk 3.04.247 4.292 34..i) ii) iii) iv) 9.06.083.199 Cash at Bank . Agrabad Branch EXIM Bank Ltd.note 10 Arab Bangladesh Bank Ltd.05.215 3.000 20.427 120.294.000 20..000.000 6.2012) Northern Insurance Ltd.100 .442.118 74. Bangladesh Telecommunication Company Ltd.000 22.667.525 1.407.194 2.000.732 93.042.468.1 Balances with Schedule Banks .009 247. Advance is paid to SKYS securities & Union capital Ltd. Power Development Board Chittagong Bangladesh Oxygen Corporation Bangladesh Railway Security Money-Grameen Phone Security Money.000 7.500 261 454.note 9 Pragati Insurance Company Ltd.2010 to 30.707 4.983 60. There is no agreement amount due from directors or officers of the Company.983 60.684 2.714 125.933 75. Agrabad Branch Bank Asia Limited.663.683 104.470.467 124.057 10 CASH AND BANK BALANCES Cash in Hand Cash in hand at Head Office Cash in hand at Factory 384. Represents the VAT paid on imported raw materials at the import stage but yet to be adjusted.752.07.2009 to 30.169.672 - Dhaka Bank Ltd. Deposits .2011) BSTI CM Licence Fee (from 01. Anderkilla Branch Bangladesh Krishi Bank Ltd.note 10.000 431. Khatungonj Branch 3.373 25.note 9 Bakhrabad Gas System Ltd.1 Foreign Currency Accounts .. Tea Board Branch Bank Asia Limited.297.485 2.000 6.543.906. Agrabad Branch 31-Dec-09 Taka 831.011 i) 9.286 8..418 631.028 10.815 2.141 480.2 Taka 31-Oct-10 Taka 10.154..094 1.
. Chittagong Branch Tk 56.073 484.438 2.143 2.750 4339 64..415 7.452 767.502 3..689.. Sitakunda Branch Eastern Bank Ltd..964 1.. Jubilee Road Branch One Bank Ltd...271.435. Kumira Branch Jamuna Bank Ltd.775 3.686 3.325.042 2.786 152.503 68.956.400 1.583 170.139 405.172 104.166 64.003.688 12. Agrabad Branch Standard Bank. Agrabad Branch Islami Bank Bangladesh Ltd.764.118 .725 1.196. Khatungonj Branch Standard Chartered Bank.651 32.191 793.420 25.815 2. Chittagong Branch Standard Charterd Bank.913..310 74.663 584.990 1.505 4.890.493 187. Agrabad Branch NCC Bank Ltd.095 2.. Khatungonj Branch The City Bank Ltd. Agrabad Branch EXIM Bank Ltd.2 Foreign Currency Accounts .915 3.247 1.130 1. Agrabad Branch Prime Bank Ltd..985 12.204 4. IFIC Bank Limited.115.784.781 4.246 1.118 2.543..865 4. Khatungonj Branch Social Investment Bank Ltd.018 1. Agrabad Branch Uttara Bank Ltd. Khatungonj Branch Mutual Trust Bank Ltd.482 320.818 78.003 1. Khatungonj Branch The Trust Bank Ltd.909 1.746 196. Khatungonj Branch Janata Bank Limited.181.. CDA Avenue Branch National Bank Ltd.. Khatungonj Branch Premier Bank Ltd.345 482. Khatungonj Branch NCC Bank Ltd..436.297..763.777.EXIM Bank Ltd.386 3.Khatungonj Branch Prime Bank Ltd.467 3.436 551. Laldighi Branch ICB Islami Bank Ltd.. Asadgonj Branch Janata Bank Limited.note 10 HSBC Ltd. Agrabad Branch State Bank of India..113.. Khatungonj Branch South East Bank Ltd.389 92.691..543.924 500 216.209..841 99. Chittagong Branch Habib Bank Limited.261 72.547.. Agrabad Branch Social Investment Bank Ltd.326 40.787 515. Agrabad Branch Mutual Trust Bank Ltd.. Khatungonj Branch Fixed Deposit Receipts Tk 10. Agrabad Branch HSBC Ltd.227 86...047. Laldighi Branch Pubali Bank Ltd.686 3.113 294.965.605.689 120.450 37.253.165 972.. Khatungonj Branch Mercantile Bank Ltd. Baijid Branch Janata Bank Limited..705 2.555 170. Agrabad Branch Shahjalal Islami Bank Ltd... Agrabad Branch United Commercial Bank Ltd.807 813.000 25. Khatungonj Branch Sonali Bank Ltd.423 22.655 35. Agrabad Branch Jamuna Bank Ltd.026 72.
Salim Rahman Mrs. KIY Steel Industries Ltd.000. KDS Garment Industries Ltd.400.000 1.per share by passing special resolution in the Extra Ordinary General Meeting (EGM) held on 31 .000 shares 20.000 to 10.82 7.000 shares 10.000 11.00 0 651.07 2.49 17.000.000.001 to 40.000 shares Total No.000 31-Dec-09 % 9. of Shares 13. 10/.000 Taka 60.000 40.000.000 50.82 7.30 28.200.240. 100/. subscribed and paid-up 130.00 11. 10/. Total % 9.001 to 30.200.000.000.240.per share from Tk.400.41 100. Shamim Iqbal Mrs. of Holders 2 2 2 1 7 Note: The authorized share capital of the company is Tk.08 2.200.400.302.000.000.000 shares 30.000 (Fifty Crore) ordinary shares of Tk.each. 2 Issued.000.000 15.000 651.000 Ordinary Shares of Tk 10 each Taka 11.000.68 6.000.41% 100.000.000 100.000 5. . KY Steel Mills Ltd.240.000.000 130.000.Haj Khalilur Rahman Mr.000.000.000 Total Holdings 9. S.21 13.000 180.000 5.14 21.000.000 37.000 40.000.98% 23.07.000.000 222. which was converted into TK.000. Hasina Iqbal KDS Hi .000 30.000 90.400.000.000 Ordinary Shares of Tk 10 each Taka 1.31-Oct-10 Taka 11 SHARE CAPITAL 11.000 651.68 21.4 Classification of Shareholders by holding Holdings 100.000 105.Tech Garments (BD) Ltd.2010.50 17.000. 1 Authorized Number 500.000 (Five hundred Crore) divided in to 500.000.15 100.000 1.000.000 30.000.21 13.14 6.04% 38.000.000.00 No.000 50.000.000.57% 28.000.000 31-Dec-09 Taka 1.000.000.000.000.000 111.00 0 1. 5.302.M.000.30 16.000 140.3 Position of Shares holding Name of the Shareholders Al . Tahsina Rahman Mr.001 to 20.000 280.000 370.302.000.200.00 31-Oct-10 Taka 120.
446.676 .704.249 32.087.763) - 31-Dec-09 Taka 202.249 10.note 15.596.3 Taka 2.250.430.note 15.085.09.467.205 4.763 (202.106 6.436.012) 1. Agrabad Branch Due within one year Tk 126.467.. Khatungonj Branch Due within one year Tk c) National Credit and Commerce Bank Ltd.952.207 - 61.757 41.527 21.2 For Revenue expenses .763 - i) Revaluation of Company's assets were carried out by Shafiq Basak & Co.. 14 LONG TERM LOAN Due within one year Taka a) Eastern Bank Ltd.596.258 10.207 126.249.173 32.173 21.848.31-Oct-10 Taka 12 GENERAL RESERVE Opening Balance Addition during the Period Transferred to Share Capital Taka 13 REVALUATION RESERVE Opening Balance as on 01. Revaluation surplus has been credited to Revaluation Reserve account.1 For Supplies expenses .281 114.085.696 2. Chartered Accountants following Market value Method of Valuation as on 31 August 2010 & submitted their report on 20 September 2010.365 188.8.131.528.961. Agrabad Branch Due within one year Tk b) South East Bank Ltd..527 15 CREDITORS AND ACCRUALS For Other finance .576. Agrabad Branch Due within one year Tk d) Dutch Bangla Bank Ltd.085.514.085.720.2010 Charged during the year Taka 1.588..258 61.note 15.614 (15.720.602 202.658 69.763 202.436.
000 1.707.Bill Pragati Insurance Liability for Staff EBF VAT Payable Tk 15. LTR 433.423 16. Khatungonj Branch (SOD) Janata Bank Ltd.note 15 Employment Cost .803.000 426..575 236.953.876.900.613 6. PAD Marcantile Bank Ltd.000 400.205 462.972 .495. Khatungonj Branch(CC Hypo) Social Islami Bank Ltd.217.000 30.520.776.516 444. 16 SHORT TERM BANK LOAN Janata Bank Ltd.057 935.704.931 206.106 617.926.829. Asadgonj Branch.204 200.510.647 4.217 43.959 15.593 49.398 250.3 For Revenue expenses ..824 1.052.064.D Steel Casting Industries New Sun Chemicals Unite Engineering Mitra Hardware Others Tk 15.Mgt.658 31-Dec-09 Taka 33.009.31-Oct-10 Taka 15.000 162.588.201.2 For Supplies expenses .457 99.385 663.note 15 Poly Cables M.551.Work Force Salary Employment Cost .178.213 2. Asadgonj Branch (CC Pledge) Janata Bank Ltd.914 6. Staff Salary Electricity Bill Factory Audit Fee WPPF Gas Bill Others Tk 3.411 190.910 41..624.244 1.539.375 1.000 712.996 2.335 796..757 55.750.834 103.848.000.000 27.806 288.235 1.190 220.348 22. CDA Avenue Branch (CC Hypo) Mercantile Bank Ltd.000 5.note 15 Tax Deducted at Source . Kahtungonj Branch.041 611.306 943.924.547 374.556 21.636.961..884 2.651 2. Asadgonj Branch (CC Hypo) Jamuna Bank Ltd.767 1. ii) Salary and Allowances for the month of October 2010 has been paid in subsequent month..434..000 184.108.40.2063 46..775 36.776.788.599. Agrabad Branch (CC Hypo) Mutual Trust Bank Ltd.1 For Other Finance .774.365 i) All accrued expenses were paid on regular basis.712.281 462.
Khatungonj Branch LTR State Bank of India.492 91.649.223.862.682.240.52 61. ABP Pubali Bank Ltd.note 26 126.672 135. 31-Oct-10 Taka 18 NET TURNOVER Local Sales Scrap Sales Export Sales .000) 289.647.639 3.395.406.388.959 185.417 291..485 3.895.028 5.130 as advance.439 605.959 i) The IT assessment for the all years to 2008 (IT Assessment year 2009-2010) have been completed and agreed with the Tax Authorities while the return for 2009 has been filed and pending for assessment.457 356.868.223.964 229.263. LTR Social Islami Bank Ltd.349.957.266.855.290 476.318 1.650. LTR Janata Bank Ltd.542 150.862 27.094.599 71..500. Asadgonj Branch. LTR Jamuna Bank Ltd.599. which will be adjusted with above provision on finalization of the assessment upto the year 2009.948 58.559.767.477.762.508 116. ABP Taka Major Terms and conditions of the said loans are presented in .12 Opening balance Provision made during the period AIT Adjusted Paid during the period Taka 291. ABP Pubali Bank Ltd.055.094.503 249.130) (20.130 31-Oct-10 Taka 17 INCOME TAX PROVISION .352 13..816. Agrabad Branch.918.065 26.10 2.800.018 . Asadgonj Branch.223. LTR Mutual Trust Bank Ltd.975.951. Company paid Tk 167.574 5. Khatungonj Branch.20 8.206 31-Oct-09 Taka 3. CDA Avenue Branch.258 1.249 (167.692.507. Agrabad Branch. Khatungonj Branch. Khatungonj Branch. Khatungonj Branch. Khatungonj Branch.024.777..934.216.232 241.959 291.319 3.315..note 18.507. Khatungonj Branch..427. Agrabad Branch..1 Less: VAT Taka Qty in MT 50.938 20. ii) Consistently deferred tax has not been considered. LTR Shahjalal Islami Bank Ltd.000..589.337 340.916.322.734 66.988.617 74.303 5.255..119 31-Dec-09 Taka 140.82 4.496.220 126.538.818.note 2. LTR Mercantile Bank Ltd.411.013. LTR Janata Bank Ltd.505 774.580 358.111.468..121 212.851.South East Bank Ltd.797 2.235 195.308 25.273. ABP South East Bank Ltd.. LTR NCC Bank Ltd.429.453.234 129..
770 282.915 16.303.074 (1.639 19 COST OF GOODS SOLD Opening Stock of Raw Materials Direct Materials Indirect Materials Raw Materials Purchased Direct Materials .235.213 3.910) 3.459.297.480) 4.97 (4.515.1.445 Closing Stock of Raw Materials .261 5.1.834.662.881.636.395.856.225.53 MT) Opening Stock of Finished Goods Closing Stock of Finished Goods note 6.1 Raw Materials Purchase 19.147.551.450.908.214.915) (12.244 2.33 Tk 3.4 63.676 2.315.77 3.835 229.785.068.07 18.note 6.856.2 Materials available for consumption 18.325 656.814.01 66.52 USD Taka 8.996.068.834 3.94 65.906 4.630.919 140.595 4.03 2.1 Indirect Materials .85) Raw Materials Consumption 64.004.577 1.307.34 84.996.998.82 Taka (1.027.15) 61.931.2 Cost of Production (Process Loss 1.894.535 263.576) (1.432.554 (294.62 11.084.349.050.777.802.93 118.1 31-Oct-09 Taka Direct Materials note .327.1 Export Sales .802.385.793) (11.418.293 145.283.479.369 10.876.note 19.523 4.822.658 22.186.41 1.2 Direct Materials (19.076.note 19.85) Indirect Materials (19.143.273 2.044.627.078.850 2.036 1.649.036 4.989 4.805.427.870 4.209.495.407.919 .6220.127.116.115.249.303.068.34 66.842.307 605.708.297.044.19 HRC ZN Compound ZN Tin Ingot Qty in MT 62.721 327.031.139 1.782.546.07 66.708.034.220.708.489.233 6.568.244 133.note 18 Export in Foreign Currency Export in Local Currency 8.745.582 (24.027.369) 4.625 2.516 37.699.993 31-Oct-10 Taka 19.044.303 2.699.note 19.56 Production Overhead .827.122.304.839.308.367 17.995) (1.18.588.078.306.255.589) 3.268.
2 FACTORY OVERHEAD .124.699.011.336 1.062.116.017.1.706.166.037 58.960.818.004.429 103.993.000 5.071 254.note 19 Salaries and Wages Bonus Shifting Expenses Mechanical Shutdown Expenses Electricity Charges Gas Bill Laboratory Expenses Electrical Spares Depreciation .834.036 6.489.943 698.085 3.445.391 366.19.596 302.702 133.159 282.516 124.595 19.579.725.429.363 3.261 .765.785.524 26.889.130 1.190.630.356 1.000 4.084.964.003 1.677.860.293.802 482.732 787.923 263.049 16.989 4.313 2.623 1.210 2.2 Indirect Materials note .842.238.896 320.362.728 13.990 568.031.note 24 Depreciation .878 323.113 1.925.523 47.364 1.181 110.503 80.910 320.080 133.2 Fire Insurance Gas Line Repairing Crane Repairing Crane Hire Charges Loading Expenses Un-loading Expenses Canteen expenses Store Material Consumption Taka 54.note 3.105.239.041 106.099.834 31-Oct-10 Taka 20 31-Oct-09 Taka ADMINISTRATIVE EXPENSES Salary & Allowances Directors Remuneration .053 2.996.425.803 743.960.049 709.435 8.094 49.846.150 533.875 2.2 Festival Bonus Telephone & Mobile charges Traveling Expenses Conveyance Staff Fooding Office Tea 3.385 3.note 3.950.973 1.233 7.376 35.009.588.279 219.456 3.753.771.676 2.827 11.155.725 140.993 405.827 132.076 363.995 3.085 45.19 Rolling Oil HCL Consumable Stock Tk Taka 9.600 4.
600 2.000 - Audit fee represents auditor's remuneration only which is fixed up by the Board of Directors. DIRECTOR'S REMUNERATION .709 14.828 77.000 10.075.243.000 37.000 38.354 868.076 139.972 1.445.907 69.47 9 939.745 1. Rates & Taxes Electricity Charges Audit fee .917 37.785 679.561.797.747.870 4.987 25.740 3.164.571 1. Directly attributable cost incurred for cost of raw materials was charged to cost of goods sold as per IAS 23.800 6.038.500.010 13.765.828 2.445.772.503.117 97.022 5. 23 AUDITOR'S REMUNERATION .000 5.037 939.239 50.259 308.898 31-Oct-09 Taka 22 FINANCIAL EXPENSES Bank Interest Bank Charge Taka 24.716 700 184.391 32.note 20 .042.255 50.107.647 31-Oct-10 Taka 596.664 44.517 4.125 614.2 Sales Promotion Expenses Sample Expenses Taka 1.492 907.000 5.510 897.203 23.450 200.note 23 Taka Salary & Allowances include payment to employees only.note 3.331 21 2.453 100.868 407.739 200. SELLING AND DISTRIBUTION EXPENSES Salary & Allowances Depreciation .334 190.595.note 20 Audit Fee (Statutory) Taka 24 200.Expenses Entertainment Expenses Postage & Stamp charges Repairing Expenses Courier Service Charges Newspaper and Periodicals Uniform & Liveries Legal Expenses Vehicles Fuel & Lubricants Office Stationeries Medical Expenses Land Revenue Expenses Subscription Vehicle maintenance Miscellaneous expenses Registration & Renewal Expenses Rent.504 368.713 79.000 200.037 i) The above amount was not directly attributable.895 124.165.931.324 177.624.
2011 31.00 5.00 30.00 25.307.00 25.00 120.00 15.50 25.Agr.00 100.00 50.00 50.07.00 60.Ktg Social Islami Bank .00 10.00 513.00 12.2010 * 30.25 50.00 68.00 33.077 BDT in Crore Sl No Bank Name LC Limit LTR Limit BG Limit Rate of Interest Sanction Validity 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Janata Bank Asadgonj Mercantile Bank Ktg Southeast Bank Ktg Pubali Bank .00 20.12.00% 11.02.25 SDB 50.25 SDB 35.10.00 114. RELATED PARTY TRANSACTIONS .80 OD/CC Pledge Limit 43.800 2.Agr.395.08.00 50.17 8.00 2.00 1.00 SDB 10.00% 11.00 100. Mutual Trust Bank .778.2011 30. Standard Chartered .906.00 5.00 15.00 43.50% 12.000 Taka 25 OTHER INCOME ID Card Re-issue Compensation Delivery Charge for Scrap Sales Interest on FDR Taka 26 BANK FACILITIES The following facilities are available with the company's Bankers : Term Loan Limit 56.00% - 15.00% 11.00% 11.30 5.2010 * 28.487.00 135.00 60. Dutch Bangla Bank .000 320.00% 12.00 100.2011 30.09.50% 11.00% 11.2010 31.50% 13.00 25.Agr.17 CC Hypo Limit 13. Dhaka Bank .2011 - * 27 Renewal of expired loans are under process.00 35.06.747 469.09.00 2.Ktg Shahjalal Bank Ktg Jamuna Bank Ktg AB Bank Anderkilla State Bank of India .000 320.2011 28.00 88.Agr.00 15.Agr.907 1. NCCBL .000 1.00 40.2010 * 22.00% 11.2010 * 12.622 5.2010 * 30.00% 11.Director's Remuneration paid to Mrs.09.00% 11.02.00 50.2011 Specific 31.485 2.300 2.07.04.036. Tahsina Rahman @ Tk 32.030 2.00 45.000 320.00 20.00 25.2010 * 30.25 15.00 320.00 40.00 160.00 5.00 112.09.00 50.00% 11.Agr Total Exposure 100.
240.362. 2009 Tk 10 2.91 4.240. 2009 Tk 100 Earning per share (Restated) Value of Share 2010 Tk 10.10.512.788.430.59 2.000 nos (31.2010 Taka 368.2009: Tk 209.000 nos) 30 VALUE PER SHARE ON THE BASIS OF CASH FLOW FROM OPERATING ACTIVITIES : Operating cash Inflow/(Outflow) per share (Basic) Value of Share 2010 Tk 10.21 1. 2009 Tk 100 Operating cash Inflow/(Outflow) per share (Restated) Value of Share 2010 Tk 10.623) (b) Number of ordinary shares at the close of business 130. 2009 Tk 10 29.65 .10.261 148.796 (31.10.000 nos (31.61 (a) Earning attributed during the period to the ordinary shareholders Tk 337.920 517.39 18.104.22.168 32.826. Steel Accessories Ltd.12.909) Number of Ordinary Shares at the close of business 130.764.The Company carried out a number of transactions with related parties in the normal course of business on arms length basis Closing Balance as at 31.74 323.512.000 nos) 29 THE COMPOSITION OF EARNING PER SHARE (EPS) IS GIVEN BELOW : Earning per share (Basic) Value of Share 2010 Tk 10.181 31.724.888 2009 Taka 1 2 KY Steel Mills Ltd.39 3.2009: Tk 2.2010 Taka 28 Sl.2009: 6. Sister Concern Sister Concern Total Sales of CR Coil Sales of CR Product & Temporary Loan NET ASSET VALUE PER SHARE Net Assets Value per Share (Basic) Value of Share 2010 Tk 10. 2009 Tk 100 Net Assets Value per Share (Restated) Value of Share 2010 Tk 10.104. No Name of the Parties Relationship Types of Transaction Closing Balance as at 31.2009: 6.138.16 Net Assets Value during the period Tk 3.12.16 16.285 (31.350.74 29.717.189.778 337.872. 2009 Tk 10 The composition of Opening Cash Inflow/(Outflow) Value per share is given below: 3.110 163.2009 Taka 173.
05. 1580/08 dated 26.10% 120.03.07.10 aggregating amounting to Tk 940. .000 nos (31.06.05.(a) Operating Cash Inflow/(Outflow) during the period Tk 441.02.960.06. 6398/09 dated 17.08. 32 EMPLOYEES Number of Employee 31.2 Dispute with the VAT authority prefer for writ petition against VAT: 15 Nos writ such as no : 7419/05 dated 20.12.12. 4841/10 dated 16.08. 7598/06 dated 10. 10847/07 dated 17.033.10.85% 70.09.512.741.12. GP Coil /Sheet Tk 352.000 per month Total 380 380 Number of Employee 31. 4560/08 dated 19. 8889/05 dated 13. 1520/08 dated 25.11.333 45.09.095 60.12. In case of adverse decision by the Tribunal Company's liability will stand at Tk 9.068 total Tk 9.449 47.10.09.389 29.940.257. 34.06.371) (b) Number of ordinary shares at the close of business 130. which could materially affect the values stated in the Balance Sheet.10.06% 34 CONTINGENT LIABILITIES AND COMMITMENTS 34.10.940 which is awaiting final hearing.227.333 27.07.06.06.410 77.000 100.08. 4843/10 dated 16.08.2010 Number of employees whose salary below Tk 3.249 and CI Sheet Tk 7.2009: Tk 605. 8696/05 dated 05. 7297/09 dated 04.257.09.354.697 (31.10.2009: 6.000 100.12.678.000 58.2009 434 434 33 CAPACITY UTILIZATION CR Plant Installed Capacity (MT) Annual Installed Capacity (MT) for the period Actual Equivalent production (MT) Capacity Utilized NOF Plant Installed Capacity (MT) Annual Installed Capacity (MT) for the period Actual Equivalent production (MT) Capacity Utilized 120.10.240. 8697/05 dated 05.000 per month Number of employees whose salary above Tk 3.623.000 60.39% 70.000 29.2005.1 Appeal prefer to VAT Appellate Tribunal against Price Declaration of CR Coil amounting to Tk 1. 5964/06 dated 20.000 58.000 nos) 31 POST BALANCE SHEET EVENTS No material events had occurred from the Balance Sheet date to the date of issue of this Balance Sheet. 7100/09 dated 29.05.
--Acc.Rec. to conform to the presentation for the year under review.08 14.Rec.Rec.Ctg-Acc Rec .Rec.Rec.666.04 473.Receivable K.88 29.) Ltd.Traders--Acc.878.25 9. Peerless Makers (pvt. Shafiq And Sons. M.42 340.252.83 913.Rec.R.408.836.--Acc.Rec.Rec.Rec.991.312.Causes of cases were custom duty for bond.455.739. I.431.43 64.--Acc.09 1.279.--Acc.(C0173) Mcdonald Steel--Acc.60 3.919.Rec.Steel--Acc.Rec R. Abul Khair Steel Mills Ltd.697.Rahman & Brothers--Acc.22 Trade Receivable as on 31st October 2010 Particulars Zobaida Steel(Afzal Trading)--Acc.664.Rec.410.58 4.I.078.155.94 7. Ltd--Acc.27 13.S. These financial statements should be read in conjunction with the annexed notes and were approved by the Board of Directors on 02 January 2011 and were signed on its behalf by : SD/SD/SD/- COMPANY SECRETARY 7. Beg Steel Mills Ltd.41 115.29 12.683.877.68 8.--Acc. provision for writ petition against VAT would not be required as per Legal Advisor's opinion of the Company.Rec Ajmeer Khawja Enterprise-Acc. Previous year's/period's phrases & amounts have been re-arranged.Rec.936.69 830.23 1.Rec Sristy Steel Enterprise-Acc Rec Haji Motiur Rahman & Sons-Acc Rec Janani Enterprise-Acc.1 35. Madina Traders--Acc.Rec.92 671. 35 GENERAL 35.Asadgonj-Acc.75 114.58 62.474.(C0794) Jalalabad Steels Ltd.R National Fan-Acc.10 146.S. Bhuiyan Enterprise.346.-Acc. Ltd.Rec.Rec Rubel Steel Mills Ltd (Partex Group)-Acc.89 587.477.CTG-Acc.031. Yunsco Steel and Engr.041.435.067.Tubes Mills Ltd.57 63. The Management of the Company informed that as the matter is sub-judice.Traders-Acc.1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 DIRECTOR MANAGING DIRECTOR Annexure-A Taka 574. Osaka Cycle Industries Ltd.131.046. M.016.823.45 542.273.34 27. Fuad & Brothers--Acc.71 384. Audit demand & price declerance for VAT. S.713.34 2.2 Figures appearing in these accounts have been rounded off to the nearest taka.45 384. Vangaurd Steel Ind.770.Rec.Rec. Eastern Refinery Limited--Acc.Rec.--Acc. wherever considered necessary.Rec.Rec.Rec. TRADING-Acc.726.M. Samuda Containers--Acc. Nazrul & Brothers--Acc. Bismillah Enterprise.
Ctg(C0997) Babul Chandra Dey.Baria(CD0057) Arif Traders -B.30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 Saleh Engineering Works.544.421.72 32.500. UK (X0008) Portland Steel Int.Singapore(X0016) Gloria Trading.167.53 11.460.Thailand( Atco Export.927.58 1.283.523.83 4.187.09 10.Baria(CD0692) Haji Shahid Meah Traders-B. & Brothers-Ctg(CD0331) A S Traders-Chittagong(CD0390) Salim And Sons-Chittagong(CD0652) Hj.16 1.86 435.344.44 1.Baria(CD0695) Minar Traders-Barguna(CD0428) Al-Madina Store2-Barishal(CD0297) Abu Bakar-Barishal(CD0482) Hazi Traders-Barishal(CD0668) Aktaruzzaman-Barishal(CD0665) Bikrampur Ent-Bhola-(CB0015) Five Star-Bhola(CD0325) Samad Sarder-Bogra(CD0022) Enam Corporation-Chandpur(CD0099) Kazi Traders-Chandpur(CD0257) Sagir & Brothers -Chittagong-(CB0001) Liton Enterprise-Chittagong(CD0154) Nureja Enterprise -Chittagong(CD0313) Omar Farq.08 2.Baria(CD0076) Abul Kashem.00 4.228.265.747.895.17 12.25 45.428.957.090.60 20.62 48.11 3.Ramchanpur-Comilla(CC0026) Musa & Sons -Comilla(CC0033) Ali Akbar Traders -Comilla (CD0056) Babul Traders-Comilla(CD0079) Haji Moinul Islam -Comilla(CD0142) ShakherGaon Store-Comilla(CD0180) Khalu Meah Bapary-Comilla(CD0197) Saiful enterprise -Comilla(CD0396) Rafique Ting ghar-Comilla(CD0397) Monindra Ch.206.BHD (X0001) Venus Int Pte Ltd.68 9.699.456.Baria-(CB0007) Rupali Traders-B.442.891.18 1.467.307.356.609.734.290.591..911.257.37 6.604.652.45 104.653.972.571.599.63 20.828.056.56 23.221.88 3.894.58 30.875.089.77 7.50 2.122.81 3.42 1. Ctg(C1024) GMS PURNAMAX(M) SDN.382.356.404.879.167.20 528.69 684.298. Congo (X0017) Salim Traders -B.783.350.829.04 .919.296.414.335.17 7..782.94 8.Baria(CD0580) Ananda Enterprise-B.209.27 25. South Africa(X0009) Deepak Commercial Brokerage.Baria(CD0691) Ma Moni Traders-B.121.502.Casba-B.201.79 141.019.77 9.70 8.39 1.263.93 20.01 517.286.61 9.87 1.309.062.Singapore(X0004) Do International Trading Co.920.75 1.41 4.Baria(CC0008) Padma Traders -B.250.063.195.284.689.023.354.05 7.Baria(CD0448) New Madina Tinghor-B.323.97 29.02 20.522.924.052.348.134.Baria(CD0638) Fahin & Maisa Enterprise-B.653.386.760.153.803.33 972.12 15.03 5. Dubai(X0011) Steel(Singapore) Trading Pte Ltd(X0013) Wira Overseas Enterprise.20 28.683. Debnath-Comilla(CD0413) Hafiz & Brothers-Comilla(CD0419) 5.47 22.Baria(CD0333) Sumon Ent-Bangura-B.Ltd.69 4.65 32.985.Baria(CD0418) Hobigonj Trading-B.Baria(CC0007) Alpana Traders -B.Ctg (C0996) Mohesen Awolia Traderse.002. Nazeer Ahamed Traders-Chuadanga(CD0672 Abdul Matin.
27 2.63 31.910.441.559.10 17.678.80 6.-L-Comilla(CD0538) Nargis Hardware Store-Comilla(CD0563) Nazrul Traders.01 2.837.823.Coxs Bazar(CD04 Kamru Traders -CoxsBazar(CD0521) Chittagong Steel -Dhaka(CB0016) Ayub & Sons -Dhaka (CD0270) J.345.847.16 10.72 2.Gon-Gaibanda(CD0532) Abul Kashem Traders-Gaibanda(CD0694) Abed Ali Traders-Gazipur(CD0491) Shahjalal Traders -Gazipur(CD0360) Mojibor Traders-Gazipur(CD0225) Shahin Enterprise-Gazipur(CD0631) Sheuli Enterprise-Gazipur(CD0648) Sikder Traders -Gopalgonj(CD0450) Amin Traders.824.39 .Chokoria.633.488.29 2.91 1.805.98 1.344.196.757.Nay-Feni(CD0433) Gopal Chandra Sarkar-Feni (CD0661) Fathema Hardware Store-Feni (CD0647) Raju Traders S.858.73 2.839.886.40 35.58 9. -Kishoregonj(CD0386) 825.029.341.37 32.761.497.582.30 9.038.80 6.07 1.321.016.468.879.674.682.012.787.68 180.093.405.352.747.Comilla (CD 0679) H K Ali Bricks.83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 Rony Tin ghar-Comilla(CD0452) Hossain Enterprise-Comilla(CD0481) Maruf Steel-Comilla(CD0499) Abdul Karim -Comilla(CD0517) Prodip Kumar Bhoumik.251.109.59 8.543. Comilla (CE0005) Karim Traders -CoxsBazar(CD0217) Shah Alam Trading.71 35.255.Gosh-Hobigonj(CD0462) Al Mamun Enterprise-Hobigonj(CD0650) Dalai Mia & Sons-Hobigonj(CD0677) Sabib Enterprise-Hobigonj (CD0684) Marwa Enterprise-Jalkhati(CC0018) Tanim Enterpise -Jalkhati(CC0022) Alam & Brothers-Jalkhati(CD0038) Nayamat Ent-Jalkhati(CD0130) Salam And Brothers-JhalKhati(CD0657) Dhanshiri Enterprise-JhalKhati(CD0689) Sharif & Borthers-Jessore(CD0522) Ayian Steel Corporation-Jhenaidhah(CD0656) Monir Ahamed -Khulna(CD0109) Kazal Ghush -Kishoregonj-(CA0006) Mujibur Rahman-2-Kishoregonj(CD0221) Haji Motiur & Sons-Kishoregonj(CD0322) Jaman & Hasan Ent.746.09 198.260.11 6.902.593.593.88 1.976. Enterprise-Dhaka(CD0286) Dhaka Trading Corporation -Dhaka(CD0380) Rakhi Steel Cor.330.728.534.052.390.402.79 26.664.38 636.279.076.442.67 3. B.728.168.077.529.953.32 145.304.80 3.83 623.87 2.928.754.20 4.589.523.682.-Dhaka(CD0415) Jalalabad Steel Ltd -Dhaka(CD0458) Samata Traders-Dhaka(CD0496) Zaman & Sons-Dhaka(CD0653) Fazlay Rabbi Ali-Faridpur(CD0654) Abul Kashem -Feni(CD0105) Adbur Quddus-Feni(CD0177) Abdul Bashar-Feni (CD0200) Abdul Momen Traders-s.27 9.499.725.70 33.835.464.856.250.061.52 4.044.523.96 7.16 9.111.752.49 1.22 3.51 947.50 17.928.19 664.70 2.030.017.787.790.92 32.459.460.19 9.10 7.85 4.222.568.076.135.44 639.791.922.475.46 2.686.26 1.Gopalgonj(CD0697) F Zaman & Sons.Gopalgonj(CD0704) Ramash Ch.259.365.367.35 15.07 9.098.91 1.
674.359.615.117.718.616.22 12.93 7.805.18 3.160.47 1.10 8.63 15.08 875.11 4.083.80 1.057.37 5.999.900.405.24 1.855.71 1.39 3.65 17.76 1.70 5.458. Younus & Sons-Noakhali(CD0324) Femous Iron House-Noakhali(CD0387) Popular Traders-Noakhali(CD0391) Mohammed Ullah -Noakhali(CD0398) Patwari Traders-Noakhali(CD0406) Badal Traders-Chowm-Noakhali(CD0578) Sokina Traders-Noakhali(CD0629) Sufian Traders-Shbrhat-Noakhali(CD0642) Manik Timber-Noakhali-(CD0673) Monir & Sons-Chowmahoni.315.579.K.915.02 8.39 1.21 1.86 27.101.136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 Saidur Rahaman-Kishoregonj(CD0490) Asha Enterprise-Kishoregonj(CD0504) Bashar Traders-Kishoregonj(CD0622) Haji Shahab Uddin & Sons-Kishoregonj(CD064 Seven Brothers-Kishoregonj (CD0682) Sadek Traders-Kurigram(CD0574) Janata Biponi -Kustia(CD0382) Muntakim Traders -Kustia(CD0570) Ali Hossain & Traders-Kustia(CD0636) Mamun Enterprise-Kustia(CD0667) Jilani Traders -Laxmipur(CD0174) Laxmipur Ent.747.558.419. Sattar-Molavibazar(CD0066) Rahman Traders -Molavibazar(CD0510) Shashanka Dutta -Molavibazar(CD0540) Rakin Enterprise-Munshigonj(CD0666) Shaha Trading -Narail(CC0041) Showrav Traders-Narayangonj(CD0234) Kakoli Enterpirse -Narayangonj(CD0262) Haji Trader-Narayangonj(CD0283) Sonia Trading-Narsindi(CD0346) Shahid Trader-Narsindi(CD0409) Muzibur Traders-Netrokona(CD0639) N.654.188.27 878.983.65 10.955.684.75 3. Enterprise-Noakhali(CC0030) Taz Enterprise-Noakhali(CD0042) Abdur Rashid -Noakhali(CD0043) Noor Traders-Noakhali(CD0080) MaFatema Steel&Sons-Noakhali(CD0081) Babul Traders-2 -Noakhali(CD0082) Shebar Hat Khadda Vander-Noakhali(CD0132) Fatema Trading -Noakhali(CD0135) Shaha Steel-Noakhali(CD0254) Allahar Dan-Noakhali(CD0315) Haji.395.251.908.83 33.33 11.-Laxmipur(CD0226) Mukbul & Brothers-Laxmipur(CD0243) Mazumder & Co-Laxmipur(CD0404) Basanti Traders-Alexgandar-Laxmipur(CD0573 Three Bany Traders-Laxmipur(CD0610) Fatema Traders-Magura(CB0018) Salam Traders.92 9.332.03 4.308.58 7.838.94 189.756.Bhowmick-Noakhali-(CB0009)/T.30 393.619.429.532.18 1.111.043.680.615.20 4.978. K.604.341. Trader B.353.424.279.10 2.989.086.672.746.708.232.53 2.31 12.214.17 22.16 4.219.501.741.614.14 6.26 19.820.213.Noakhali(CD0702) Shahanara Trading-Pabna(CD0246) 735.784.86 5.493.951.54 .733.K.845.023.61 5.952.557.79 17.298.211.348.093.393.Manikgonj(CD0588) M.602.066.116.76 1.871. A.734.868.90 28.15 795.05 2.091.050.68 22.558.311.500.47 4.598.16 28.750.509.689.041.316.307.003.245.135.002.43 4.263.20 4.010. Nath -Noakhali (CC0015) Pubali Trading -Noakhali(CC0029) R.52 3.675.M.732.758.
355.00 .438.770.10 17.662.312.Office Assitt.429.768.738.069.564.751.22 985.607.Rajshahi(CE0031) Zen Enterprise-Chittagong-2(CD0680) K I Enterprise-Chittagong(CD0696) Safrat Enterprise-Kornel-Chitt-2(CD0688) Grand Total 15.922.214.171.1246.38 2.760.14 1.19 6.749.02 21.982.Sylhet(CD0685) Sikander & Sons-Sylhet (CD0674) Akata Traders-Tangail(CD0446) Kamrul & Brothers-Tangail(CD0633) Jannat Steel Corporation-Tangail(CD0651) Rahman Traders-Thakurgaon(CD0353) Mahmud Machinary-Thakurgaon(CD0473) H.189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 Shaha Trading Corp-Pabna (CD0412) Mollah & Sons-2-Pabna(CD0608) Jasmin Traders-Patuakhali(CD0431) Islamia Traders-Patuakhali(CD0516) Kajol Store-Patuakhali(CD0572) Mitali Enterprise -Pirozpur(CD0074) Makka Traders-Rajshahi(CD0031) Rahman Traders.161.A.385.06 1.062.95 8.650.641.43 9.70 1.41 17.506.95 5.24 22.01 1. Thakurgaon(CD0701) Farhad Traders-Thakurgaon(CD0712) Three Brothers-Thakurgaon(CD0717) Nabi Trading--Mymensingh(CD0343) Madina Traders-Mymensing(CD0693) Janata Bank.03 17.218.434.94 34.550.582.865.31 19.264.Agrabad Branch(CE0024) Ali Hossain.209.347.SDS Director.699.829.072.464.543.42 508.37 1.36 15.66 107.190.328.20 5.Sherpur(CD0681) A.71 31.517.R Brothers Pirgonj-Thakurgao(CD0609) M.798.530.803.56 32.078.38 107.478.222.75 52.Baneshar.849.548.25 1.07 91.73 783.032.780.Sylhet(CD0577) Bashir Uddin & Sons.183.19 12.88 1.886.71 16.06 3.240.50 1.038.113.302.75 1.280. Ali Trader -Sunamgonj(CD0508) Abu Bakar & Sons-Sylhet(CD0048) Jogajog Traders-Kalighat.928.02 5.62 11.060.633.119.362. Chatak.783.Hoque Traders-Thakurgaon(CD0670) Jahirul Traders.020.796.857.Rajshahi(CD0272) Kismat Trading Corp-Rajshahi(CD0632) Rahman Traders-2-Razbari(CD0199) Talukder Traders -Sariadpur-(CB0012) Laxmi Narayan Shaha-Sariadpur(CD0582) Rahaman Traders -Shathkhira(CC0032) Mofazzal Enterprize.116.KY Steel(CE0027) Nawjesh Ali.551.
27 4 1.937.054.10.751.090 125.802.050 47.602 1.207 1.785 517.731 548.994 609.095.618.093 4.615.490.113 126.716.725.000 1.704.680.12.332.200.200.007.181 717.856 5.000 202.968.560.574 7.439.082.020.039 439.000 202.430.309. Statement of Assets and Liabilities: 31.200.626 593.6126.96.36.199 286.305 20.562 1.2009 Taka 1.KYCR COIL INDUSTRIES LIMITED Auditors' Report under section 135(1) and paragraph 24(1) of Part -II of Third Schedule of the Companies Act 1994 For the periods from 01 January 2005 to 31 October 2010 We have examined the financial statements of KYCR Coil Industries Limited for the years ended 31st December 2005.020 85.786 593.2010 Taka NON CURRENT ASSETS & PROPERTIES Property.331 1.756.212.181 351. 2008 and 2009 and for the period from 01 January 2010 to 31 October 2010 in pursuance of Section 135(1) under Paragraph 24(1) of Part -II of Third Schedule of the Companies Act 1994 our report is as under: A.964.177.610.514 842.249.262 3.461.763 764.605 236.033.468 392.146 1.911.389. Plant & Equipment Capital Work-in-Progress Investment Preliminary Expenses CURRENT ASSETS & PROPERTIES Inventories Receivables Due from Sister Concern Advances.430.12.000 593.126.715 251.928.543 157.194 2.6188.8.131.520 361.12.617 31.577 38.41 7 2.576.720.923.145.72 5 1.88 8 1.446.200.085.328.763 999.199 5.151.306.22 9 2.16 2 31.2007 Taka 667.220.715.940 593.906.920.056.28 3 31.716.794.470.628.748.357.23 9 .003.628.881 31.265.909 651.085.306 651.728.477.744.159 1.671.000 184.108.40.2060 667.390.87 6 651.134.724.314 432.009.400.488.004.000.971.622.598.574 3.302.862 4.642 75.126 31.389 320.922.096 960.424.016 74.000 202.126. 2006.163 953.402 830.8220.127.116.119.127.2008 Taka 1.574 2.172 7.487.011 47.105.574 3.618.38 3 651. Deposits and Prepayments Cash and Bank Balances TOTAL ASSETS & PROPERTIES SHAREHOLDERS' EQUITY & LIABILITIES SHAREHOLDERS' EQUITY Share Capital Tax Holiday Reserve General Reserve Revaluation Reserve Un appropriated Profit NON CURRENT LIABILITIES 3.500 4.888 316.067.138.163 1.453.700 20.466.018.722 953.032 1.852.903.786.2006 Taka 749.079.840.099 337.029.119.000 202.085.449.78 3 651.2005 Taka 843.76 6 1.042.574 3. 2007.251.567 2.141 7.79 6 1.763 1.200 718.104.22.1688.763 872.054 2.085.872.409.055.645.852 4.139.772.
Long Term Loan
CURRENT LIABILITIES Current Portion of Long Term Loan Creditors and Accruals Short Term Loan Income Tax Provision
3,799,181,487 114,514,696 3,395,411,672 289,255,119 7,671,906,28 3
3,349,506,97 2 126,220,207 13,087,676 2,918,975,130 291,223,959 5,453,937,881
2,649,285,07 9 310,687,187 5,520,345 2,192,811,005 140,266,542 4,628,409,16 2
2,333,558,18 0 7,779,513 2,261,790,781 63,987,886 4,144,720,126
2,533,626,74 9 11,671,859 2,521,954,890 4,309,177,617
1,964,857,28 9 11,904,266 1,952,953,023 3,645,265,23 9
NET ASSETS VALUE PER SHARE(Basic) NET ASSETS VALUE PER SHARE(Restated) B. Statement of Operating Results:
31.10.2010 Taka Net Turnover Cost of Goods Sold Gross Profit Operating Expenses Administrative Expenses Selling and Distribution Expenses Trading Profit Financial Expenses Gross Operating Profit Amortization of Preliminary Expenses Profit after amortization of Preliminary Expenses Other Income Net Operating Profit before WPPF WPPF Net Operating Profit before Income Tax 5,429,388,206 (4,782,515,074 ) 646,873,132 (37,038,571) (38,931,647) 570,902,914 (25,503,479) 545,399,435 545,399,435 5,395,907 550,795,342 (27,539,767) 523,255,575
31.12.2009 Taka 4,348,942,559 (3,917,942,273) 431,000,286 (24,772,605) (7,270,961) 398,956,720 (1,271,224) 397,685,496 (593,574) 397,091,922 5,392,528 402,484,450 402,484,450
31.12.2008 Taka 2,582,068,789 (2,354,515,889) 227,552,900 (17,559,689) (7,484,713) 202,508,498 (1,353,850) 201,154,648 201,154,648 2,255,101 203,409,749 203,409,749
31.12.2007 Taka 2,117,127,407 (1,930,323,567) 186,803,840 (14,060,144) (1,046,199) 171,697,497 (1,063,134) 170,634,363 170,634,363 170,634,363 170,634,363
31.12.2006 Taka 2,013,900,743 (1,737,096,122) 276,804,621 (15,842,659) (1,253,653) 259,708,309 (1,021,385) 258,686,924 258,686,924 258,686,924 258,686,924
31.12.2005 Taka 3,354,160,882 (3,153,720,280) 200,440,602 (17,970,714) (1,318,949) 181,150,939 (514,761) 180,636,178 180,636,178 180,636,178 180,636,178
Provision for Income Tax Profit after Income Tax Earning Per Share (Basic) Earning Per Share (Restated)
(185,538,290) 337,717,285 2.59 2.59
(150,957,417) 251,527,033 38.63 3.86
(76,278,656) 127,131,093 19.52 1.95
(63,987,886) 106,646,477 16.38 1.64
258,686,924 39.72 3.97
180,636,178 27.74 2.77
C. Statement of Cash Flow: 31.10.2010 Taka CASH FLOW FROM OPERATING ACTIVITIES Cash received from customers & others Cash paid to suppliers & employees Cash received / (payment) from short term bank loan Financial Expenses Cash Inflow / (Outflow) from Operating Activities CASH FLOW FROM INVESTING ACTIVITIES Purchase of Fixed Assets Addition of Capital Work in Progress Investment Cash Inflow / (Outflow) from Investing Activities CASH FLOW FROM FINANCING ACTIVITIES (Repayment) / Receipt of Term Loan Cash Inflow / (Outflow) from Financing Activities Net Increase/ (Decrease) in Cash & Cash Equivalents Cash and Cash Equivalents at the beginning of the year Cash and Cash Equivalents at the end of the year Operating Cash Inflow / (Outflow) Per Share(Basic) Operating Cash Inflow / (Outflow) Per Share(Restated) 5,328,621,073 (5,338,199,439) 476,436,542 (25,503,479) 441,354,697 31.12.2009 Taka 4,457,121,135 (4,748,567,111 ) 726,164,125 (1,271,224) 433,446,925 31.12.2008 Taka 2,697,786,832 (2,465,835,332 ) 358,422,597 (1,353,850) 589,020,247 31.12.2007 Taka 1,926,645,384 (1,579,379,004) (260,164,109) (1,063,134) 86,039,137 31.12.2006 Taka 1,726,378,766 (2,161,236,411) 569,001,867 (1,021,385) 133,122,837 31.12.2005 Taka 3,291,595,985 (4,022,617,899 ) 811,678,334 (514,761) 80,141,659
(33,954,242) 7,715,050 (239,323,356) (265,562,548)
(59,719,851) (7,715,050) (27,067,500) (94,502,401)
(466,373,095) (20,000,000) (486,373,095)
(126,220,207) (126,220,207) 49,571,942 75,470,199 125,042,141 3.39 3.39
(310,687,187) (310,687,187) 28,257,337 47,212,862 75,470,199 66.56 6.66
(75,884,142) (75,884,142) 26,763,010 20,449,852 47,212,862 90.45 9.05
(72,035,399) (72,035,399) 12,538,758 7,911,094 20,449,852 13.21 1.32
(163,544,005) (163,544,005) (30,421,168) 38,332,262 7,911,094 20.44 2.04
(38,018,167) (38,018,167) 34,500,027 3,832,235 38,332,262 12.31 1.23
Dividend Declared: Particulars Cash Dividend (%) Stock Dividend (Bonus Share %) 31.10.201 0 100% 31.12.200 9 31.12.200 8 31.12.200 7 31.12.2006 31.12.200 5 -
E. F. I.
KYCR Coil Industries Limited is a public limited company which was incorporated 04 November 1995. The Company did not prepare any account for any period subsequent to 31 October 2010. Figure related to previous years have been rearranged where considered necessary.
Chittagong, 3 January 2011
Sd/Chartered Accountants Hoda Vasi Chowdhury & Co
43 0.61 11.59 29.71 11.32 2. 2005 1.85 1.86 1.45 31Oct.45 2.84 4.97 24.96 13.57 6.00 0.74 .92 2.40 8.49 0.36 0.91 10.90 12.66 1.98 5.03 1.91 9.88 Particulars Liquidity Ratios: Current Ratio Quick Ratio Debt Equity Ratio Operating Ratios: Accounts Receivable Turnover Ratio Inventory Turnover Ratio Asset Turnover Ratio Profitability Ratios: Gross margin Ratio (%) Operating Income Ratio (%) Net Income Ratio (%) Return on Asset Ratio (%) Return on Equity Ratio (%) Basic Earning Per Share ( Restated) Net Asset Value per Share ( Restated) 3. 2010 1. 2008 1.27 0.04 0.99 3.41 0.47 13.40 5.55 1.85 6.65 1.95 28.84 1.71 2. 2006 1.39 4.52 6.00 15.78 4.71 0.17 5.80 9.64 26.42 31 Dec.66 31 Dec.72 2.36 31 Dec.69 2.04 2.18 0.69 2.82 8.77 20.95 3.04 0.75 6.51 8. 2007 1.33 0.74 12.18 1.31 0.29 2.50 1. 2009 1.88 2.48 1.81 7.86 32.11 5.22 4.64 1.43 1.33 0.67 31 Dec.Ratio Analysis 31 Dec.92 5.56 8.