ANNUAL REPORT 2015-2016 CONTENTS Contents Page Corporate Information Corporate Historical & Financial Highlights Profile of Board of Directors ‘Message from the Chairman Notice of 34th Annual General Meeting Directors Report ‘Audit Committee's Report Comporate Governance Report Certificate on Compliance of Conditions of Corporate Govemance Guidelines Certificate by CEO & CFO on Financial Statements ‘Auditors’ Report Statement of Financial Position Statement Profit & Loss and other Comprehensive Income Statement of Cash Flows Statement of Changes in Equity Notes & Schedules on Financial Statements ‘Some Photographs of WATA Chemicals Ltd OaANNUAL REPORT 2015-2016 Board of Directors: = | . of Corporate Information Chairman . a Me. iftkhorUe-zeman (Managing Director- ICB) © Managing Director/CEO: ted. Nozr Islam Directors: e ALHM, Abdullah Chemical Engineer (BUET) aie committe: Mr, Subrata Pal- FCMA, Independent Director Chairman Audit Committee e Mr. Md. Mahmudul Hasan Independent Director: Mr. Subrata Pal- FMA Me Ast, Abdullah Director Statutory Auditor: Member of Audit Committee Me. A.M.M. Zeaul Haq Rehman Mostafa Alam & Co. 65/2/1, Box Culvert Road Purana Paltan Dhaka-1000, Bangladesh, Mr AM.M. Zeaul Haq, © independent Director Member of Audit Committee Company Secretary: Principal Bankers: Mr. Shamsul Hug @ WS. Agrani Bank Le. Principal Branch Motiheel C/A, Dhaka. Chief Financial officer: @ i. ma, Alnsan Legal Advisor: General Manger: Sekander Ali & Associates Mr, Abu Taher Bhuiyan ‘TMC Bhabon, New Eskaton Road haka-1000. Deputy General Manger: @ Kapil Mukhopadhaya Credit Rating agency: M/S. Emerging Credit Rating Limited ‘Shams Rangs, House 104, Park Road Level-Al & Level-A2, Baridhara, Dhaka-1212 Head of Internal Audit: Umme Fatematuz Zohura Manager Accounts: e Registered Head Office: Md. Milan Hossain 17/8, Monipuripara (3rd Floor) Sangshad Avenue, Dhaka-1215 Commercial Manager: Mr. Mohammad Ali Head of Marketing: Mrs. Khairunnessa Anney Factory: ‘Murapara, Rupgony, Narayangon}. Production Manager: @ phon Mr. Babul Das 58152001, 58155206 ‘Accounts Officer: cont Mr. Md, Abdul Hakim ++880-2-5855091 Mr. Tapos Chandra Sarkar Wet citer © wwwrw.watachemical.com © E-mail: $ watachemicals@gmail.com ED 2015-2016 “ST cwemicace LintitESCORPORATE HISTORICAL & FINANCIAL HIGHLIGHTS Cease ee ssa sees SS CORPORATE HISTORICAL HIGHLIGHTS: Fee recom that ey eerie: of tsebshmentf up A Pane road Fl aged omer roton Aan 8) “a conrerial educonn dines Pat a cm che eae a Conmeri Pouconin 84 Pat = ee ar sr seer Ee chee fen, Faso org ot uishre - elation somes coe a talc th sok hang: Dhak ck Beare tn /- ier ne eng a ‘ Used wth ental epost Sagas Ea orn Reht ne om i cei | sonuSae sued a5 on ee remains = PP icocaces e dams Soe ued 0 es ‘CORPORATE FINANCIAL HIGHLIGHTS AS ON 30.06.2016 tere cata TK c0Cee sue, Sustied an Pid ana ho7socrre Pegrtieriexared me) tain vam Theater fee tesrcocee fit abana rere ane CORPORATE OPERATIONAL RESULTS OF LAST 5 YEARS unas aoe | moe) atts | ame | aos | aoe | ant re ae (case rece eed eee rece eee) hirnver {S1406,73) 15263400 90186775 2825967811 98508068 52.595,86 78689 ors Prot 115258030] 4.779676 95407354 57947603 123005767, eaassam| a... [Net Profit Before Tax 55,684,582} 18,401,401, 37,283,181, 40,064,552| 77,369,705, 21,487,030 12,982,095 IecPotterTa——_47.974260) 638,885 _602575 _ seseeare) 75,978,768 tno." 225670 id xa 18875000 78575000, 78875260, 6.18000 4860000 «0500000 40300400 ace oe] 207 [sorterawccsierawey) aril asia omens ronstoxesoecmn(rono) — ™*SK4 seu eioc) aan ec) | 126 (C) 2015-206WATA CHEMICALS LIMITED Profile of Board of Directors ANNUAL REPORT 2015 - 2016 ee 7015-7016 SE awe oh° MR. MD. IFTIKHAR-UZ-ZAMAN ° CHAIRMAN x ‘ici ite Zan onsing Dincor ofnsoaneCoeraono Bangladesh 08 isthe Chman of our of Deco hs Company. e eas been omit by C8, Bis tno pute, shrholer o s company, MD. NAZRUL ISLAM MANAGING DIRECTOR & CEO e Me Mal Nazrl slam, son of ate Aha) Shakhawat Hossain and Late Matin Nessa, is» reputed businessman. He has wide Experience in Management of Chemical Industry, Construction & Survey Fm and import businesses e He is alzo Vie Charman of Board of “Teste ofSakawatH. Memorial Ts having under it ferent educational ‘organizations named SM. Insitute of Medical ‘Technology & MATS, Sokawet Hi. Memorial Nursing Colege. He has also established ‘Autism Centre to. bring Autiste Children inthe main steam ofsocey. He has traveled ferent counties of the World fr business development purpose Df! WkMicacs cimireoMD. A. M. M. ZEAUL HAQ ® INDEPENDENT DIRECTOR * Wc Ma AM, eat Haas an Independent Director ofthe Boa of tector of the Company. He was General Manager of Bangladesh e Development Bank Utd. He had been in-charge of ferent Banking Dison during his tenure of seve with BOL Me Hag is astacatee with diferent Saco Catal ane Sports Organizations He is writers e cf eilernt hook on Banking ane ia 1 ae 2015-2016 a; MR. SUBRATA PAL -FCMA INDEPENDENT DIRECTOR Mr, Subrata Pal. FOMA is an Independent Director of the ‘compary.Hehasbeen appointed to ‘comply with prevaling BSEC Notification Corporate Governance ‘Guide Lines Helsa Cost Management ‘Accountant from institute of Cast of Management Accountants of Bangladesh and obtained Associate Membership (ACMA) in 1985 and Fellow Membership (FCMA) in 1990. He worked as Accountant in charge ‘at Mohammadi ron & Stee! Works ud, Husain Indus id, Bangladesh Stee! & Engineering Corporation ‘and 0s an consultants at Amit Footwear Ltd, Noman Group of Industies and assoclated with ferent Costs & Management ‘Accounting Fms. w CHEMICALS LIMIT tb — 5MR. A.H.M. ABDULLAH & - DIRECTOR S TT a Absutah 2 Diector ofthe Company. He i BS. In Chemist Engineering from BUET, Dhaa. He has wid experience on Technology e of Cheri the Proprietor of NS Chemical Trading Co. & Sabu) Biplob Super Market. Hei also engaged in social work and has established » Hospital, ‘huts Centre, Medical Assistant e Training School, Nursing College at ‘Salgonj for poor people of that Plantfindusties. He is MR. MD. MAHMUDUL HASAN DIRECTOR Ma, Mahmudul Hasan isa Directorof ‘the Company. He has completed 8A (Hon’) in English, HSC from Notre e Dame Collage, Dhaka, SSC from Dhaka Residential Model School & College and Engaged with foreign correspondences relating to procurement & Import of Chemical Raw Materials, He Is 2 Trustee of SakhawatH Memorial rust 205-206 ee |) WitMicace vimireo—________+, ef message From The Chatrman fo as Dear share Holders, ‘Assalamu Alaikur, You all were informed that 34th Annual General Meeting of the Company scheduled to be held on 14th May 2016 had to be postponed to comply with section 9 of Finance Act’ 2015 and decisions of the Joint Meeting of Bangladesh Securities and exchange ‘Commission, Dhaka Stock Exchange, Chittagong Exchonge taken in its meeting dated 28.04.2016. To comply decision of the joint _meeting of BSEC, DSE & CSE the Financial Statement of Accounts of 18 months for perid from 01-01-2015 to 30-06-2016 have to be prepared and got audited duly. It.can be assured that our company has been maintaining uniformity in production and profit pattern. [tis olso hopeful that Compa- ‘ay Management has started implementation of BMRE of its project for Modernization existing plant, adding of new machineries to Increase production capacity. Management hopes that BMRE implementation shall be ended within August 2017. Simultaneously ‘Chemicals Engineers employed by the company have been working for finding out possibility of adding new value added products. | thank the Share Holders, Members of the Board of Directors, officers, stufs, workers at all evel ofthe company for their co-opera- tions forwards successful running of ll businesses ofthe company. Lom hopeful that Management shal be successful in promotion of business and profit of the company inthe days to come. | wish development of the Company, its prosperity and everything good for you all. Thanks to you al, (casas! ‘Ma. lfkhar-wz-Zoman Charman = ci RITA a ] ‘Members may please note that no food or gift or benefit in cash or kind shall be given at the Annual General Meeting. “Sa cuemicaca Limite“feet arena afer” fx crate reg “SPT SE” cent cattery MRS ar afore rte TREE AT cero SIRT she, ATE HARTA aS mE Ate ae AEE EPPA R/O, FEARED we OTS aTBTITSA a TTI woe Ie TUT ee e TTA PIT, Ree SPIE 0,08. 209eRe TAC ATE 3 TENT ire ere fone eta Ree oI aE ANTE CRMC fies Borge wet ‘eri coer Mis cat ator “rors AF (RCE 90 OF HT R0dURR BIOL FATE sy RR Faire re ore Ft THR <6 Fat afer eI FACE eT ‘Sorgnr wal eT FRR os oH a Garth) ar Beem caeh se remem wd BIT Qos ae FR afer wer ofeq fore ver zr Fafice eaean GAS sy OAR (@IGRIAT nek Roy wy 028k ne) fre cafe fora Feat EERE BAT Ooo “afer ere ere BoE EAT TE SUIT ARRD GIT GH, 09.22.2030% ‘wrftct ras wife frre fran Frater ares afi afore gee ae fete G38, 203uRe wifes oseH IK ATE ser agar fie eer ons st wafer! fee ad STR go3e atc ear, aA ae aA aT oe mere Bars MIRE GH-38, ROR wfet Se oew aie meter eI aE tee orriris gett ear Re cenit coher, fe oepet aire Sem ¢ TRRwEeTT , committe ariett warecT Te TET Se He eg BOTA aT RATE | 30, se fs aera aor a I ‘abr Sergey et RCE (I-38) | 3s, HMA goseh Re BT gosu fe arene “fforrt “Er CRB 30 (re) Bot fs TTR a ALR MET often sits Bofefon SS TT fier (qBr- 38) 1 32. o3cr fier, 203¢ wie CHT coe mremre way fone Borger eat aE 3e, RoR ot afiece ST CRITTERS ry “fT. 38 BEY rE yoru arts coat aot sion te cae ‘orator Se ame ac way x tg sor eat aration, oF MafaNy TT FE, mR ar OH FRE ORAS ceareretar CEO 6 Ser A a HATER rH BT Chore aS ae “oar ert a wet TR. rom wap IR SIRE ose STE Ren ox, ater Mat, Be ec ae we ca as Bee, aftr, wert ee corm oS HE, TT FASBRae ame com io, ST © comet afebr, viet ¢ stam Be ) Toreview statement of significant related party transactions, ian. 5.00 PRODUCTION: ‘annual Se ST ee PEM Atainable | Attainable Production Achievement] Production Achievement, Production Achievement [capacity (M. Ton) Capacty(M. Ton), (M.Ton) | (8) | (M.Ton) (6) | (M.Ton) 6) Sulphuric Aci 3800000 27,00000 7182489 «79.72 «13757036 «7643 14,70R925 © BLLIZ ‘Alum Sulphate 32,000.09 18,00000 4475.40 «78.86.««2874350 ©2061 3.618550 «20.16, Zine Sulphate 4500.00 675000 6545.00 96:96 4072000 90a9 4173530 8275. "Magnesia Sulphate 4,500.00 6.75000 751800 111.37 4545.00 «101.05 4.312000 ©9583, 39,000.00 58,500.00 4068.20 24,548.306, 26,813.005. Observation; (a) Production capacity ulzation achioved 68.84%0% of annual capaky Inthe peiods from Jan'15-Jun'%6 28th Months), Production capacity utlzation achieved 63.71% in the year 2025 and 68.76% in the year 2018 (b) Aluminium Sulphate plant could run at average 37.30% in the periods from Jan'2085 to 30th June 2016(28th "Month 30.16% in the years 2015 and 20.62% in the year 2014, SCT ‘Year 2015 (12th Month) Year 2018 12th Month) Perey ‘Quantity Value ‘Quentity Value ‘Quantity Value (04.Ton) __(IntzeTaka)__(M.Tor) | (IntacTaka) __(M.Ton) _|_(intae Taka) Sulphuric Acid 57024 98103) 5617000) 62446) 4,489,000 50030 ‘Alum Sulphate 2844.00 61715, 1513000) aiasi 2.682.000 s7s2 Zine Sulphate 656400 1805.10 4092.000 112530 4168.030| 1416.48 Magnesium suiphate 752600 150098 __4545.000 95710 __4327.000| _ 1,029.27 | 2585.26 4916.26 15,767.00 3021.37 15676030 3,523.57 sun7s 7.736.150 ss226i2 Eo EC CEI eas ‘Quantity Value ‘Quantity Value ‘Quantity value (04.Ton) __(IntzeTaka) __(M.Ton) _|_(ImtacTaka) __(M.Ton) _|_(intae Taka) ‘A. Import Purchase: Rock sulphar 7i7s936)——uisn.720) «180346 84356 180.39 76828 Alum Hydrate roo.76s 272800, 493.3, r2aas. 635.85 167.21 ‘267.701 100.220 —_—=673.789 oe. _-581623 935.09, Zine Ash 3525000, —~—«814230)—«S75.000 wisi 2380.00 7234 Magnesium Powder 4355.000 335.080 855.00, 13836 163353, 37581 ‘3860.00 149.310 2430-000 e017 «396353 ——2,167.95 Total (+8) ariar701___ 9555530108 709 sas 77076 = OR ED 2015-2016 HMC) —_—_,800 INVENTORY: ‘Quantity Value ‘uantisy Value | Quantity | Value (0.Ton) (In taeTeke) _(M.Ton) _(IntaeTaka) |_(M.Ton) (in LacTaka) A. Raw Materia Rock ulphar 266038 ‘i022 3a70~—~—~CRS2]—~CNRID] SSCA ‘Alum Hydrate 78038 18113 1271996, 1112.39, 2asss Zine Ash 2a7.64 eu7 27138 7158) 19540 s2.2| Mag. Powder 30425 5321 33840 S658) 02.50 53.03 Dry Chromate 21.00 91 21.00, ‘981 21.00 923) 4054.15, ns 4en2.75 aon 4640.62 «873.06. 8. Filshed Good Sulphuric Aci 327109 269.38 397832 ~—~=«R@a|a7Aaa (S47 ‘Alum Suiphate 4041 90 67950 aa7es —seaa) 201050 396.90 Zinc Sulphate 222.35 5s 221.35 824) 41.3 72.46 ‘Alu Sulphate 207.82 23.36 206.42 van) 1842 2482 cr 500 1.68 5.00 1.68 5.00 1.68 qan7 082.47 77a sect 6446.70 790.28 Total (a8) tigos1 1758.25, weas6 —tas.69 1109632 «1668.29. Breakup of Old stock are as under: (Raw Materials: Avy. in ton ‘Amount (nla Taka) Rock Sulphar 362.168 397 ‘Alum Hydrate 276.883 5309 Zine Ach 43,700 1202 ‘Mag. Powder 163.812 28.00 Dry chromate 21.000 981 567553, 166.89 (i) Finished Goods: Sulphur eis 620,000 4635 ‘Aum Sulphate 280,000 2347 Zine Sulphate 195.630 esi ‘Alum Sulphate 180,000 1938 ocr 5.000 167 1.280.630 158.68 Tota (ai) 248.93 3 Observation: (3) Total dosing inventory carving value was Tk. 1758.25 lac. equal to 4.29 months of turnover 3s at 30.6.2016, Tk. 1358.90 lac being ‘5.40 months of turover as on 31.12.2015 and Tk 1653.29 lac equa 05.66 months of tumover as on 31.12.2024 It appears from above trend, inventory carving valuehas been gradually increasing ‘Management should take stop to reduce inventory In order to Improve liquidity. Otherwise there would have adverse Impact on working capital as well as interes cost (&) Here tis tobe noted that inventory as been carrying old stock vale of Tk 32557 lc Ar informed by management, these stocks were taken away/stolen from store during management criss time which continued from 2008 to 2007. The present management took over the charge in 2008 after resolving legal case at order of honorable cout DY.) WikMicacs cimiteoYear 2015 (12th Month) 7999.15 (934.28) 964.87 793) 33698 5st (13.62) (ssa) 102.53 (46.12) 316.2 401 vs) 100 (6:2) 3328 (1393) 3335 019 (08) (294) ost En? Lac Taka 3383.1 (2,453.64) 929.47 Gian) 418.66 307 (2109) (3498) anos (7520) 365.66 468 n 300.00 (sa) IAT (as09) 3238 0.09 (oa) (1.09) 10.80 (2) Gross profit rato has decreased by 2.83% comparing with previous year due to increase of Raw Materisl Cost comparing with thereat (0) Ratio of operating expenses and interest expenses on turnover has decreased by 1.72% in year 2015 comparing with that of year 2014, {¢)__ Earning per share (EPS) has come to Tk 6.08 for the periods from Jan'SJur'6 (L8th Month, Tk. 4.01 in year 2015 and Tk. 4.63 in 9.00 PROFITABILITY ANALYSIS: Year 2016(18¢h Month) actala 0) Soles Net of VAT) 4708.76 100 Less: Cort of Sale @arss) (6955) ‘Gross Profit 1432.58 3045 Less: Operating Expenses & Interest, (@s6s7) (1823) Net Operating Profit 576.01 3224 ‘Add: Other Income 9.65 020 Less: Contribution to WPF (28.82) (0.60) Less: Provision for tax (720) (169) current Tax 1453 s Deferred Tox (71.43) o ‘After Tax Profit 479375 1020 Earning per Share (Restated) 608 (Previous year's EPS restated based on 7,897,500 shares) previous year year 2014 based on 7,897,500 shares 10.00 So.vency Ramo: 28.0090.6.16 (a) Curcent Ratio/Working Capital Ratio (simes): 1763, (Current assets/Current Lables) (0) guitty Ratio: (Uguld Assets/Curtentlabilties (snes) 07a (Hece quid assets denates current asset value less inventory value (2) Inventory Turnover Ratio (Month) 3 Inventory (Net of old stock) (L3e Taka) 1459.68 “Turnover Net of VAT) (Lae Taka) 4708.76 (8) Debtors (net of old debt (.2e Taka). 358 Debtors Turnover Ratio (days) 227 Observation: seon31.12315, ose 0303 on 162351 2s9as 116.00 1460 (0) Standard current eati/working capital rato in one company should beat least 2:1. Here current ratio comes 176:1 a8 on June'16,0.92:1 as on 31 Dee'2015 and 0.30: as on 30Dee' 2014, Current ratio In 2016 increased comparing with 2015 due to decreased of bankloan and other lables. seontt.1234 1.06 oara ays aa aaeaan 22135 282 Here turnover (net of Vat hes been taken into consideration for calculation of debtors-turover rato). (©) Standard tiqudty ratio in one company shouldbe 4:2. Here iquldty ratio was 0.74 as on Jun'2016, 0.30:1 as on 31 Dec2015 and (037: as on 31 Dec 2014, {)__ Inventory valve held on stock was equal 3.72 months of Sale Value, whereas it should not exceed 2 months Increase in inventory would create css in working eaptalit should not be stuck up through increase of Inventory. (8) Debtors turnover ratio was equal to 12.27 days a5 on Jun'2016, 14.60 days 31 Dee2015 and 27.82 days as on 31 Dee 2014. Whereas company uns on cash credit loan as such, eri to debtors should not be more than 15-20 day. mE 2015-2016 WATA CHEMICALS LIMITED11.00 CAPITAL LevERAGE sat 31.12.2015 tacTaka (6) lacTaka 04) ‘bebe Equity Ratio: Debt Capital (Long term) 183779 45.67 30000 1302 720003118 Equity (without Revaluation Reserve) 218609 5433 200445 8698 1589.70 _ 68.82 4023.88 100 230445 100 2,309.70 100.00 Note: (2) Here"Debe denotes long term oan, (©) Equity has been considered without ‘Revaluation Reserv Revaluation reserve was accounted in the year 2008, This was ference between carving cost of fixed assets and revalued assets, Since erauatn ererve was not avallabe for ullsation/ivestment, such It was not taken int calculation of Capital Leverage, bservati (a) It appears from above capital leverage analysis that equity ratio has improved as at 30.06.2016 was 46:54 2s on 30.06.16 as compared with rate of 13:87 35 n 31.12.2015, Since Weta Chemicals Limited is 2 capital intensive industry its capital leverage should be low gearing. high equity ratio and ow debt ratio, For capital intensive industry, standard capital leverage Le debt equity ratio should be maintained at 4:60, whereas its present capital suctures 2 46:58. Revenue reserve may be created by making st aside a certain portion of profit with speci objective either to discharge any ablation oF adlition to fr financing capital expenditare in future () Standard current rato should be maintained at 21, whereas company’s present working capital is 1.76. 12.00 TAXATION position: = Itisrecommended that after Rnalzation of Tax cases, iference of labilty as per demand note should be accounted 13.00 cowrat (RS PROFIT PARTICIPATION FUND (6) Company makes provision towards contibuton to WPPF @ 5% on pretax proftin ine with See of companies profit (Workweer's Participation fund) 1968 as satisfies the criteria as disclosed n rule. As per rule the payment would be dstrbuted to partpaton fund at 909 and welfare fund at 205. (0) Aspersection-2 © ofthis Act the scheme wouldbe in all companies where, any one condition s satised: () Minimum workers 100 or more in any shit (i Paid-up capital. 50 ae or more (up Feed assets value of Tk. 100 lac or moe. (This fund would be managed under Board of Teustes andthe Board would be constitued with 5 (ive) members, as per se-8 ofthe Act as under = (i Two members from workers ofthe company. (i)Two members from Management ofthe company. (i) Head of accounts of company. (4) Contribution to WPF should be transed to separate Trusies Bank Account with n 30 days of contribution, Observation: ‘Atrustee Board was not eonsttued by company to manage fund as per rule Further no interest of WPF fund was alo charged. Recommendation: -Ateustee Board shouldbe constitued by company to menage fund a per rule and interest on fund used by Company should be charged on ‘the fund use by Company ut the fund i transfer to Trustees" Bonk Account 2015-206 == a | WikMicacs vimireo2800 commrrree's {ERVATION AND RECOMMENDATIONS ‘The committe has id down following observations alongwith recommendations regarding compliance of corporate loss corporate and ‘the Financial fais ofthe Company as under: 2} Laws and regulations relating to business and internal poicies/gudelines should have been carefully complied. b)_ VAT Deparment hal raised claim for amount of Tk. 414.28 lac against which company has fled appeal on payment of 10% of sim amounts 6) Financial statements forthe periods ended 20th June 2016 - Jan 2015 to June 16 18th Months}contained ful dslosures and these ae prepared in accordance with Bangladesh Accounting Standards (BAS) and Bangladesh Financial Reporting Standards (GFRS) as adopted by the nse of Chartered Accountants of Bangladesh 4) Anpropriate Management Information Systems (MS) and budgetary control system shouldbe intraduced and reviewed from time 6} Value of old stock for Tk. 325.57 Lc are doubtful of recovery. Necessary Poston should be made after finalization of Court cases. 4) Od debtors of. 36.60 lac shouldbe provided in accounts asthe amounts are'no more recoverable 8) Financial sk management procedures should be more effective to mitigate risk. 1H) Monagement should consider the recommendations of statutory auto of the company intel respective reports ‘The findings and recommendations ofthe committe ate reported te the Boatd of Directors meeting and the Board of Directors ‘may take appropriate measures thereof. The minutes ofall Audit Committee meetings are culated among head of all concerned {department and Managing Director of company. 2500. APPRECIATION: We thank to Managing Director, Directors and all Officers and staf ofofce and factory who had extend then best co-operation and necessary asstance through necessary papers and det as and when required, to accomplish our assignment, (On Behalf of Aust Committee Ln (Subrata Pal, OMA) Independent Director and Chairman of Aust Committee \WATA CHEMICALS UNITED iskibution (01, Chairman and all Directors, Board of Director, Wata Chemicals Ld (02, Managing Director, Wata Chemicals Lt (08, Members of Audit Committe, WATA Chemica Ld (04, AllDepartment Heads CFO, Sectary, Head Office), Wat Chemicals te. 05, Office Copy. EEE 2015-2016Corporate Governance isthe system of directing & controlling listed companies by its Manage rent in the best interest of all stakeholders to ‘ensure greater transparency, bettor and timely financial reporting. Goard of Directors is respon- ‘ible for proper Goweenance ia setting out company's strategic aims, providing appropriate leadership In implementing aims, supervising business Management and reporting to the shareholder. [WADA CHEMICALS LTD (later on mentioned as ‘WCL) is committed to continuous reviewing all Corporate Governance policies and practices to ‘ensure transparency ofthe company’s business ‘and to deliver high standards and quality Information to stakeholers. Maintenance of effective corporate governance remains 0 key priority ofthe Board of WC. To ‘exercise clarity about Directors’ responsibilities towards the shareholders, Corporate Governance must be dynamic and remain focused on the business objectives ofthe Compa- ry and create a culture of epenness and account- lity. Keeping this in ming, clear structure and accountable supported by well understood polis and procedures to guide the activites of ‘the Company's Management have been istiut- d ‘Statements of Compliance: Bangladesh Secutties and Exchange Commis: ‘on’ notification on Corporate Governance: [AS WL Is listed on the Stock Exchanges In Bangladesh provision contain with BEC’: rotation on Corporate Governance (SEC/CM- MRRCD/2006-158/134/Admin/44 éate.07.8.2012) are being complied with. Relevant provisions set out in Annexure “A” ia this report a | WikMicacs vimireo Corporate Governance Framework Role of the Board ‘The Directors ofthe Board are appointed by the Shareholders at the Annual General Meeting (AGM) and accountable tothe Shareholders. The Board ie responsible for ensuring that the business acces ae soundly administered and cefectively controlled, The Directors of the Board keep themselves informed about the Company's financial postion and ensure that its actives, accounts and asset management are subject to adequate contro, Im addition to the other lgal guidelines, the Board has also adopted “Governance Guidelines” for the Board for ensuring beter Governance, Te Code on Corporate Governance of the company sets ou the principles and best practice esto be applied bythe company init operations towards achieving the optimal governance framework ‘The Board of Directors responsible for protect- Ing the rights and interests of all shareholders and algo accountable for the overall Manage- iment of the entity, Besides its usual legal and statutory responsibites, the Board is responsi- ‘le forthe folowing: Reviewing and adopting a statege plan for the company; + overseeing the conduct of the company’s busines to evaluate whether the business is being properly managed: Identifying principal risks and ensuring the Implementation of appropriate systems to manage these sks ‘succession planning, Including appointing, traning, fog the compensation and where appropriate replacing senior management; Developing and implementing an investor relations program or sharchelder communi cations policy for the companys Cre cura oriad ‘+ Reviowing the adequacy andthe integrity of the company’s internal cote systems and ‘management information systems, including systems for compliance ‘+ Approving. the financial statements and secounting policies ofthe company; 1+ Approving changes the policy, ‘+ Recommending dividend for declaration in AGM; ‘+ Establishing commen, including the Aust Committee and the Compensation Commit- 1¢ and determining the authorities to be delegated to committees ofthe Board; "+ Receiving and reviewing reports from commitess ofthe Boor “+ Establithing and monitoring compliance with the company’s standards of business conduct and other policies ofthe companys 1 Estalshing appropriate systems of corporate Governance inthe company; 1+ Considering and approving other relevant ‘+ Constantly guiée and asst the company in cevternal stakeholder management. Board Composition [At present the Board in WEL is comprised of 6 Directors. The post of Chairman and Managing Director are filed by two sltforent Directors ‘Managing Director acts 35 Chief Executive Office. The Board of Directors define respective roles responsibilities of the Chairman, Managing Director and independent DirectorThe name of the Board of Directors: (Md. ikhar-UrZaman- Managing Director ICO = Chairman Nominated by Investment Corporaton Of Bangladesh) (02, Me Md, Nara itr = Managing Director & C6 03. Mc AMM. Abdullah = Director 4, Me Md Mahmudul Hasan = Director 05, Mr Subrata Pal (FCMA) Independent Diector 05. Mc AWM.M. Zeal Hog ~ independent oketor Board Meetings Role of Company Secretary ‘The meatings of the Board of Directors of WCL. are normaly eld atthe Registered Heae Office ofthe Company. The meetings are held a east once in a quarter, to discharge its esponsibities and functions as mentioned above, Meeting is scheduled wellin advance andthe notice ofeach Boaré meeting i given In waiting to each Director. ‘The WCL Board meeting. 11 tenes during the petiod from January 2015 to June 20163 and tok decisions on key matters ‘The details of foard Mecting and attendance are liven in Annesure- 1 (Page-14) of this report lect and Re-elect of Directors | parthe Articles of Association of the comeary, one-third ofthe Directors to retire in every year shall be those who have been longest in office sloce their last election, Independent Director [As per the BSEC Notification No. SEC/CNIMRRC 1/2006-158/234/Admin/44, date- 07.08.2012 the elected Directors of the Board of WEL nominated Mr, SubrataPal-FCMIA a an Indepen dent Diector, 3 per BSEC's Notfiestion now in force. His appointment has been confirmed at the 3st AGM to be eld on 29.05.2013. Tenure of his directorship on 25th hune 2016, He howev cr has expressed fis intension to serve for a further term of 3 years which has been approved by Board of Directors of the Company. This appointment is placed at the 34th AGM for confirmation ond rateation, Division of work for the Board and Manag- ing Director Theroles ofthe Board and Managing Director are separate and delegation of responsibilities is Clealy established set out in writing and agreed to ensure transparency and better corporate ‘governance. To that end, WCL has aso adopted "Governance Guidelines for Managing Diecto”, “The Managing Directors the authortatve heed for day today management. He acts a5 Chef Executive Officer of WEL to ensure that WCL ‘operates business as per the Arles of Associa: ‘ion, decisions made by the Board and ‘Shareholders and according to WCL Policies, Procedures and relevant regulator legislations. Role of the Chairman ‘The Chairman leads the Board in determinetion ‘ofits strategy and achievement ofits objectives. ‘The Chairman is responsible for organizing the busines of the Board, ensuring its efectiveness ‘and setting is agenda. The Chairman is also responsible for ensuring that the Directors receive accurate, timely and clear information. ‘The Chaiman has mo engagement inthe daytoday business of the Company. The Chairman facltates the effective contribution of Independent Directors and ensures that consuctve relations evet amongst the Directors. Minutes of Board meeting ate signed bythe Chairman, Role of the Managing Director & CEO ‘The Managing Oiector & CEO Is responsible for running the business and for formulating and implementing Board strategy and policy. He ‘eecises overall control ofthe Company on a ‘daytoday basis ani accountable to the Board {or the fnanll and operational performance of ‘the Company. ‘To ensure ffectve integration and timo low of Information tequled by the Board and to maintain necessary liaison with interral sour (65 a5 well as external agencies, the Board has appointed a Company Secretary, The Corporate ‘Governance Guideline sued bythe Bangladesh ‘Secures and Exchange Commission (8SEC) also Fequice a sted company to appoint a fll edged Company Secretary, a5 distinct from other managers ofthe Company In pursuance of the same, the Board of Directors has appointed ‘Company Secretary and defined his following roles & responsibities: + _Aasit the members of the Board under the Companies Act, BSEC & Stock Exchange requirements + Acs 98 2 channel of communication and Information + Ensures that the Board's decisions are properly implemented and communicated by assisting in the implementation of comporate strategies and policies, ‘Ensures proper compliance with all elevant statutory and regulatory requirements. + Communicates with the stakeholders ofthe company Role of Chief Financial Officer ‘The Chie Financial Officer is versatile individual with the talent to meet continually changing set ‘of ereumstances. He is responsible for accounts ‘and treasury functions of the compar. ‘i cwemroats LiMtitEsIn addition he attends all Board Meetings and presents and reviews all quarterly and periodieal results Role of the Head of Internal Control & Compliance ‘The Head of internal Control is responsible for reporting tothe Board Ausit Commitee regar: ing any deviation from accounting and internal control systems of the Company. He is also responsible for ensuring regulatory compliance ‘ofthe Company. Price Sensitive Information The Board of WCL through the Company Secretary always ensures i's any oF all price sensitive information by Fax and or email within 30 minutes of the decison or immediately upon geting such information to the BSEC and the Stock fchenges ond to other concerned. In spedal cases by publishing the same in two Widely cicuated daly newspapers, onein Sangla and the other in Eni Disclosure on the performance and prospect ofthe Company WC attaches high prionty on timely publiation cof quarterly, halt yearly and annual report as per regulatory requirements, rice Sensitive informe: tion is released to the regulators within half an hour of the decision. The Financial Statements ate prepared in accordance with IAS and BFRS as adopted by Bangladesh Accounting Standards SD Vi CHEMICALS LIMITED Dividend Policy ‘The Board of Directors has a Dividend Poley ‘which is based on company’s performance and company’s objectives. Board Committees ‘The Board of Directors has constituted an Audit Committee of the Board Consisting of three Directors. The Audit Committee headed by the Independent Director, Mr. Subrata Pal- FCNIA ‘other member are Mr. AWM. Zeaul Hoa, Independent Director and Mi. AMM. Abdullah, Dieetor. The Audit Commitee caries out its responsibilities as pr the provisions of law and submits its report tothe Board af Dikectors from times to sime. External /Statutory Auditors M/S. Rahman Mostafa Alam & Co. Chartered Accountants isthe External /Sttutory Auditors of the company, They carry out spstematic ‘raminaion of books & records and atcertain, verify and report upon the fats regarding the Finantal operation and results ofthe company maintaining compliance ofthe SEC Notification No. SEG/CMMRRCD/2006-158/134/Admin/s4, date-07.08,2012 Subsidiary Company WL do not have any subsidiary or Associate of Parent companyST SP SITS ce 4 ZAMAN HOQUE € €O. td sTaRSON2 CHARTERED ACCOUNTANTS. 7 Kall (Gr, Fo), Dhak 1000, Phone : #316657, eal: hoquethe @ yahoo com ‘, Tet (TEM, Te-So00, Ca swede eee ce wadegen en Lode usc We< Uh PRES LU olen ee ee) We have examined the compliance of conditions of Corporate Governance Guidelines ofthe Bangladesh Securities and Exchange ‘Commission ("EC") by WATA CHEMICALS LIMITED (the "Company forthe period ended on 30th June 2085 (From January 2035 to June 2016) as stipulated in clause 7() ofthe BSEC Notification No, SEC/ CMIRRCD/2006-158/134/Admin/48 ested O7 August 202, ‘The compliance of conditions of Corporate Governance Guidelines as tated inthe aforessid notification and reporting of the status ‘oF Complianceisthe esponsibility ofthe Company's Management. Our examination forthe purpose of issuing this certification was limited tothe checking of procedures and implementations thereof, adopted by the Company for ensuring the compliance of conditions of Coporate Governance and correct reporting of Compliance status on the atached statement (Annexure-A) on the bos of evidence gathered ane representation received “othe best of information's and according tothe explanations given to us, we certily that, as reported onthe attached status of compliance statement, the Company has complige with te conditions of Corporate Governance stipulated inthe above mentioned [BSEC notation dated 07 August 2012, “‘Brooe 2aman Hoque & Co Chartered Accountants ate: 06.12.2016 Es “aT cwenmence Litt ESANNEXURE ‘Status reports on compliance withthe conditions imposed by BSEC vide notification No SEC/CMRRCD/2006-156/134/Admin/4dated 7th sega Conan ie Compare staat | Remar item) wee comps] | 1 ponrdot econ 1a sense marr i a a ey RS HTS] ‘amare an 0 (ey) 12 nde Oreos Tt) eet 15 fe Wl noe Deas ee cmean Bd Ha el Inapenn Scion 136 wh th esol ay av ata oF ea sel thecal po pre hoc, RR ts eer i conch rdw Son] Sve retro rn lr ne eet) or ores ‘the total paid-up shares of the company. y Bit des nat a aya op wher pcan or tv wi) Ine compere an/eancied ces 7a |W ots mee ror et of ay ct ang v anh ats uw ac or ar oy So sna oT] ste copsatanet athena pro a ee ow nt pe oF ie dng [preceding 3 years of the concerned company’s statutory audit firm + 12_emvcvnen ean dependent eto mare ta ated Copies |v {UF ot coed by ove of compte jon pymet ty nn oa) Donor nan bn ancl esteton 7 Cone er cm ors tng alu v 1a napa’ Sec lb ponte te bre dco and apoved| th hls ate ha Tia thept nope econ arama Torrens | —y 42 ay down cd ond of ow of marr rd uns conicset | y 16 The wr ca on prde’ air sal be rapido el) Yeoeohmaybe extended (retro, 13 Gaacton tindpendant decor 1a doen Dre sal be none di wth rf ea Cxmolre wh arclrpsarysndcarpeov acm ae sng] V Eanvbutons bares, 11H ite prion shld be» Ba ederapore Unde ree Teese tn covets bese oa rune tes Carved Resin Cot Naraganent secon, Chae ees] ‘ne npr mst hve 12 fe) on of crete [regenera puis 1) Raton cnn tnd daar coe Nes ater 1A" Cham fb wd het xc Ofer die ern ‘he pinot Cute te tourd dhe Che ac er ‘Spiral be ld by flection he apy ‘hae cated ram ancea be dene he company ne awd frets] y ‘ot centy tne raphe sod rns the Catan a he Ct eecene te 15 Theda eportotw hrtldes 13 nda ea and pe tr Gece he ndsiy ¥ 1) epmet ote dc pererone ¥ 15 nacaconcen v 150 Dacon on cn ata are HaR MAR : 15 Buon n conto ny nod is v she of ted pts 7 OOo sed an PBN an, Rs ro aS] — ED |. YikMicacs cimireo instruments 2015-206 =as | I TE aaa Tear a EATER : Fe = f Ieay oun faltec entenie wi onascule taroicacmantha Soe ooemoreeane ee scam Tes eee nee ea ; reas otnanteoee eat Fae a a aa ey oF GRU AIT TT RO eceate ae yaar a a in ENT Te aol ccd certain aducemaumarcsel | Schecgtsactnonmnaarensamnennca Sa Rae RAT TS DOT RT RTS] a rar rrr om aerate 2a aa a aa ea y So ay Se Rea ea ae area ae y Se ee maaan 2 mary Bay Engen aaa fe sen =e a aa aaa : | .3liv) Oversee hiring & performance of external aucitors v SED 7015-2016 EY ccs i3s) Review the annual rancial Statements before submission to the board for approval . Review the quoter & haf yearly fnancl Stetemets Before submisson to the board for approval . Review th adequay antral ai uncon v t | Review statement of significant related party tnsacton v | Review manogerent leer eter of interna contol weakness ed by tatwtory| auctor 3.39) Statement of iaton ffs aed through P0/RPO or tive mney v I 3.4 Reporting of the aul commits: y | 31 _ Reporting to the Board of Decors | 3.440) _Reporby the aul commits on is acy tothe Board of decors v 34.10 Reporton cont f interests osich mater 2410) Surpected or presumed fraud or bregdarty or materi defect the internal No sich mater controle [TALE Suspected nfingement flaw ules & regulation Nowch mater $4. Any other matter wih shallbe closed [No such mater 342. Reporting tothe Authors: the Aust Commitee has eprted tothe Board of No such mater Decors abou anthing which hes mteralimpoct onthe fran eonlton and rept of operation ‘3S Reporting to the Shareholders RGeneral lavertors i Report on actives carried ‘out by the Audit Committe, including any report made to the Board of Directors) V under condition 3.42 (i), 4 External /Statutory Auditors: I ‘Appralzal or valuation services or feiress openion v I nancial information systems design & implementation v Book Keeping or other services related to accounting records or financial, statemenes ‘i)__Broker-dealer Services. v I “{y) Actuarial Serves. v I (ui) Internal Audit Series v ‘4(ul)_ Any other Services determined by audit Commitee v ‘till No partner or employees ofthe extemal aut firms shall process any share of the| ‘company during the tenure ofthe audit 3S Subsidiary Company: S{)__Compastion of 800 ofthe Subsidiary company [Nosuch matter Sd) Independent directr of the holding company on the BOD ofthe subsidy company [Nosuch matter Sill) Placing the minutes ofthe subsidiary company in the board meeting of the holding No such matter company ‘v)_ Reviewed the afar ofthe subsidery company [No such matter 51) Reviewed the financial statements of the subsidary company by the audit "No such matter committe of the holding company 6 Duties of the CEO cro: I Bila Finacial statements donot contain any materily untrue or omit any mateialfact | ‘lib Financ Statements presenta true & falf View ofthe Company affals & are in ] compliance with existing accounting standards & applicable laws ¥ “fi)_No transaction entered into by the company during the year which are fraudulent) uilegalo violation ofthe companies code of conduct 7 Reporting & Compliance of Corporate Governance: Tl) The company shall obtain a cercfieate from a praciong Profesional ‘Accountant/Secretary (Chartered Accountant/Cost and Management| ‘Accountant/Chartered Secretary) regarding compliance of conltons of Corporate| y [Governance Guidelines of the Commission and shall send the same to the sharcholders alongwith the Annual Reporton 2 yer basis li) ‘The directors of the company shall state, in accordance with the Annexure attached, in the directors report whether the company has complid with these) V ‘conditions 2015-2016 a | WikMicacs vimireoCERTIFICATION BEFORE THE BOARD OF DIRECTORS ON FINANCIAL STATEMENTS OF WATA CHEMICALS LTD. FOR THE PERIOD ENDED ON 30 JUNE 2016 (FOR 18TH MONTHS) We, being Managing Director & Chief Executive Officer (CEO) and Chief Finance Officer (CFO) of WATA Chemi- cals Ltd. certify that; We have reviewed financial statements for 18 months period ended on 30 June 2016 and that to the best of our knowledge and belie! a. these statements do not contain any materially statement or omit any material fact or contain any statement that might be misleading, b. to the best of our knowledge, and belief, no transactions entered into the company during the period which are fraudulent illegal or violation of the company’s code of conduct. Oe M9: Naar iam Wa. Ansan Manasng Director & CEO tie Financ OicerWATA QP eicars LIMITED AUDITOR'S REPORT AND FINANCIAL STATEMENTS ee | CHEMICALS LIMITEDAuditor's Report ‘Statement of Financial Position ‘Statement of Comprehensive Income Statement of Cash Flows Statement of Changes in Equity Notes and Schedules 131832 233 234 235 136 137-68RAHMAN MOSTAFA ALAM & CO. CHARTERED ACCOUNTANTS Dhaka Office: Paramount Heights (7th Floor-D2), 65/2/1, Box Culvert Road, Purana Paltan, Dhaka-1000, Tel # 02- 9553449, E-mail rma@dhaka.net Chittagong Office: Taher Chamber (2nd Floor), 10, Agrabad Commercial Area, Chittagongjel: 031-725314, E-mail: rmaclg@gmail.com AUDITORS’ REPORT TO ‘THE SHAREHOLDERS OF WATA CHEMICALS LIMITED. Wie have audited the accompanying financial statements of Wata Chemicals Limited ("the company”) which comprise the Financial Postion as tJune 30,2016, Statement of Profit or Loss and Other Comprehensive Income, Statement of Changes in Eau, Statement of Cath Flows forthe period from January 01, 2016 to lune 30,2016 anda summary of significant accounting polices and ater explanatory information diclesed in notes rom 01 to 49 snd schedule 2 to 28 The franca statements of WATA Chemicals Limited forthe year ended on December 31,2015 aulted by Rahman Mustafiz Hug & Co, Chartered Accountants ‘Management's Responsibility forthe Financial statement ‘Management ofthe company is responsible fo the preparation and fir resentation ofthese financial statements in accordance with Bangladesh Financial Reporting Standards (BFR), the Companies Act 1994, Securities and Exchange Commission Rules 1987 and other appliable lows and regulations, and fr such Inxeral contra a management determines Is necessary to enable the preparation of nancial statements that ae ree from material misstatement whether de to favs or ero. uelitor’ Responsibility: ‘our responsiblity sto express an opinion on these financial statements based on our aust. We conducted our aut in accordance with Bangladesh Sandords ‘on Auditing (5A). Those standards requie that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about wether the financial statements ate fee from material misstatement. ‘An ausit involves performing procedures to obtain aust evidence about the amounts and dslosures inthe financial statements, The procedies selected depend on our judgment, eluding the assessment ofthe risks of meter misstatement ofthe nancial statements, whether due to feud o errr. In making those isk assessments, the auditor considers internal contol relevant to the company’s preparation and nie presentation ofthe franca stternens in order te design audit procedures that are appropriate inthe circumstance, but not forthe purpose of expresing an opinion onthe effectiveness of the company's internal contol. An audit ale includes evaluating the appropriateness of accounting polis used and the reasonableness of accounting estimates made by ‘management, aswel a evaluating the overall presentation ofthe financial statements Wi believe thatthe aut evidence we have obtained is ufcent and appropriate to provide 2 bass or our qualifies aud opinion ‘Basis of Qualified Opinion 1. As, lscosed In Note 200, depreciation was charged on plant & Machinery which were in use namely, acid plar, alum plan, ne sulphate plant & magnesium plans. No depreciation on LABSA plant and 8CP plant was charged. The managernent reorted that these plats are not In use since longtime. According to BAS 36 (Paragraph SS], a company doas not cease the depreciation when the asset becomes ile or retired fom actve use unless the assets ful depreciated. As a result, depreciation was undercharged by Tk. 14,567,523. 2. Revaluavon reserve of Tk 491,429,573 had risen on revaluation done by one consultant frm, asmely DR. Eng. Khorshed-ubsar, PHO Industrial and proces engineering (Germany) of Bangladesh and taken ino accounts nthe yer 2008 2 per decksion of the board of rectors Revaluation reserve had been cavied on accounts without any adjustments year 2012. However an adjustment of Tk. 49,847,707 was made with revelation reserve for depreciation adjustment for the year 2012, 2013, 2014, 2015 & 2016 (6 months) as per BAS 16. AS a result, no Fetrospective effect made the company eater to 2012. The company uses revaluation model for presentation of non-curent assets, last revaluation conducted in the yer 2008 and present fair market vale of the noncurrent asset lifes mately rom the values shown inthe finenil statement. Frequency ofrevalustion was not maintained as per Para 34 of BAS-16 and disclosure of revalution was not made Incompllance with Para 77 ofthe sald standard, Moreover, original cost of each head of non-current assets (ed assets) not disclosed 35 per the requirement of cause 2 of sat of schedule X ofthe companies act 1994, Moreover, fed asset ester not maintained for which original cost ofthe asets could not be as ascertained 3, Raw material stock amounting to Tk. 71,608,483, ished goods stock Tk, 108,216,819 and store and spares T. 2,700,000 were taken into ‘sceounts as certied by manegement. No physi inventory was eatried out by management atthe Year end, Inventories ineuded od tock ‘value of Tk. 32,587,959 recoverable value of which fil No adjustment was made agains ld stock as lgal cases against pas directors are sell pending with the court as reported by management, 4. Trade debtors include old balance amounting to Tk. 350,307 with no movement which appear to usis doubtful of recovery. But no amount has been provided inthe accounts against this ba book debt, 5. Totaltaxibility including interest upto 31.12.2015 was Tk, 76,473,451 (schedule 18) whereas tox provision nthe accounts upto 31.12.2015 was th. $2,949,007. Balance of Tk. 23,524,44 had not been taken Into accounts due to dsputes against above ax lly as reported by management. 6. Commisione of Customs Excite and VAT Directorate has razed claim for an amount of T. 41,427,896 against company on the bats on their audit objection, An appeal has been fled by the company with Appellate Tribunal after payment of Tk. 4,142,780 equal to 10% of caimed amount Appeal ssi pending with department and no lability 88 pe tele demand has been scouted or WATA CHEMICALS LIMITED7. An amount of Tk. 8 787,238 agains Loan, Advance & Deposits i arid forward since long and also no adjustment was made during the Peod, But no amount hasbeen provide inthe accounts against this tad loan and advances which ste balance of the previous manage 8. Cashinhand shown in Head Office amounting to Tk 216,440 and Factor Ofc Tk. 145,188 were caries forward from previous management ‘which does not exist physieally Provision has not been made for such os. 9. We could not very 07 (seven bank statements which reveals amounting o Tk. 74,379 out of 08 (Eight) bank statements amounting to Tk. 237,076 Further Agrani Bank PAD liabilities account carrying balance of Tk, 1,479,193 also remained unverified for want of statement. 10. As disclosed in note 16 & 20 peor year adjustments made in current year without restating Rgures of 2015 and 2014 which is also presented inthe Financial statement. By not following BAS, Paa- 42. 11, The company uses WPPF fund but did nt prewde interest for such usance 8s per Sesion 240 (3) of abou Act 2006 a8 aendedin 2013 and ‘gare publeaion dated September 28,2015. 412, Deferred Tax on revaluation of land has not been made as pr BAS-12 and Standard Interpretation Commit (IC) 21. 13, According to Secures and exchange cules 1987 (paragraph 12), Dhaka stock exchange (Isting) regulations 2015 (paragraph 28) and ‘Chitagong stock exchange (listing egulations 2015 (paragraph 18), listed company Is supposed to complete audit of fancistatements ‘within 120 days of he year cose. Previous auditor has expressed ther unwilingnes to conduct the audt on 08.09.2036 hence the said rules ‘ould not be complied duet late appointment of current auditor by the company and request on 17.10.2016 to start the aust bythe end of ‘October 2016. Opinion In our opnion, excep forthe effect of the matter described inthe bass or quali opinion paragraph, the fnandal statements present flyin all material respect, the financial poston of Wata Chemicals Limited as of June 30,2026 and is financial performance an is cashflows fr the year then ended in ‘accordance with BFRS, the applicable sections ofthe Companies Act 1984, Bangladesh Secures and Exchange Commission rules 1987 and other applicable lows and regustions, ‘Subject to our qualified opinion, we aso report that: 18) Wehave obtained al the information and explanations which othe bes of our knowledge and belief were necessary fo the purposes of our audit an made due verification thezeot; })_Inourpinion, proper books of account as required by the law have been kept by the company 2 far ast appeared from our examination of those books; ©) Thestatement of financial postion and statement of Profit or loss and other eomprehensve income dealt with by the report arein agreement ‘wth the Book of account and returns; and 4) Theexpensitures incurred and payments were made forthe purpose of the company’s business. Dated: Ohaka Rahman Mostafa Alam & Co. 06.12.2016 Chartered Accountants mE 20015-2016Rahman Mostafa Alam & Co. ‘Chartered Accountants WATA CHEMICALS LIMITED Statement of Financial Position As at June 30, 2016 ‘Armountin Th) eeionr Notes 11°30.06.2016 et 31.12.2014 | 200 621,860,160 629,108,784 638,907,008 887,459,011) | 884,173,681) [871,384,532 Less: Accumulated Depreciation 265,598,851 | 255,074,987 | 232.477.528 I. CAPITAL WORK-IN-PROGRESS 300 88,723.872 «87,496,708 54,661,546 ML CURRENT ASSETS: 308,687,875 290,517,567 __260.022,826, Inventories 400 [~178525,310] [128,888,769] [169,829,703 Moteral in Teanst 5.00 14919,662 6,017,895, 1,590,794 Trade Oobtors 600 19470,769/ 15,258,698 | _25,794,906 Advance income Tax 700 593250916| 53,653,927 | 41,634,514 Loans, Advances & Deposits B00 35,231,488, | 21,855,640 | 21,049,513 Cash & Cash Equivalents 9.00 1,289,730 4,830,638, 11023,396 1, CURRENT UABILTIES: 475304883 314,308,013 246,731,509, Bank Over Draft & Loans 10.00 | 43,650,136] | 18,sai,ei6) {148,300,752 cB Debenture Loan -Overdue Principal & Interest : : 2252295, Short term Loan (Unsecured): Managing Olector —«11.00,««13,129294, | 31,358,982 750,500 Trade Creditors 32003129481 3,129,441 319,401 Lait for Expenses Others 3300 a19a1305/ 25016794, | 17,746,038, Workers Profi Participation Fund 3400 11,829,027 | 100,957 3.006.584 Provision for Teation (Curent Tae) 3500 57,549357/ 52,949,007, | 42,696,132 Dividend Payable 36004073243 2.403 416 2.638971 \. NETWORKING CAPITAL (IV) 133306032 (23,790,406) 14,191,317 INET ASSETS (HIV) ‘asa700se 692,811,006 707,750,067 INANCED BY: |. SHARE HOLDERS’ FUND: 680,190,708 __646,500816 614,837,708, Share Capital 27.00 | 78:975,000] [78,975,000] [63,180,000 Share Premium 1800 32,400,000, | 3,400,000 _32,400,000 Revaluation Rosene 19.00 44158i,855/ 446055962, 455,868,171, Reserve & Surplus 20.00 107,233,842 63,389,537, 1 NON CURRENT LABILITY: 183,79356 46310190 92.922.259, Lone Term Loan (Secured): Loan from Lanka Bangla France Lt 21.00 : 30,000,000 : IB Debenture Loan 22.00 170,000,000 : 72,000,000, Deferred Tax iabilty 73.00 13,779356| __ 16310190, |_20.922,259, ‘TOTAL (6) 843,970,064 692,814,006 707,759,967 The annexed notes 1 to 49 and sche 1 to 28 form an integral par ofthese nc statements. (eau Oy Atsublake Graubol vay Ma. ibarUr-Zarian Md, Nazrul slam ALM Abin Al Ahsan Shamsul Hug ‘Chairman Managing Director & CEO Director Chief Finance Officer Company Secretary Signed in terms of our separate report of even date bated: sta Pbredlesp [ALS 05, December’ 2016 Rahman Mostafa Alam & Co. ‘Chartered Accountants ND 4 BifkMicats vimireoParticulars | Gross sales: I. VATon Sates I, NetSales (Lt) 1, Lest Cost of Goods Sols Rahman Mostafa Alam & Co. Chartered Accountants WATA CHEMICALS LIMITED Statement Pofit or Loss and Other Comprehensive Income For the period from January'2015 to June'2016 (18 Months) Notes -Jan'35Jun't6 dan'l6Jur'l6 Jan'45-DeciS Jan'l4-Dec (18 months) (6 months) (12 months)__ (42 months) 2000 491,426,175 180,289,400 302,136,775 352,356,781, 25.00 (20950,119) (8,728,755) (12,222364) ‘a70a76056 180560605 ——Daa,si5Ati 338,311,218 2600 327,218.02 133,789,969 193428057 245,363,515, V. Gros Prose (my) tas 38550" ae 707 96. maT 3Sa—9.Sa7 60s Vi, Less: Adminitrative, Matheting & Financial Expenses 85657075 27,864460 __57,792.615 51,081,622 Director's Remuneration & Ed Bors 27.00 [3512200] 1,287,400 2,264,800, 2,324,800, ‘Annual General Mesting& Board Meating Expenses 333,602 15,250 318,352 275,050 Director's Honorarum (For Board Meeting) 310,000 90,000 220,000 256,000 Audit Fee 293,750 200,000 93,750 87,500 ‘Adminitrative & Marketing Expenses yoo 28023286 | 11,032,367/ 16990919 | 17,998.565, Intereston Loan y9.00 49,547,216 1ossaso| 35500387 | 28,527,644 Depreciation 3000 3537021, 1.222574 2aieaa7 11516063, VIL. Net Operating Prof (v1) 57600955 18806216 «38694739 «ae, 381 Vl. Non Operating Income 31.00 965,970 215,255 350,715 307.232 1%. Net Profit before WPPE (VIS) 58566025 1921471 8.205484 2.173.213, X._ Less: Contribution to WPPFES% on above 2,382,343, 920,070 1.962.273, 208,661, XL. Net Proft before Tax (1X) 55604582 8401401 «37,283,181 «400064582. Xl, Less Provision for Tax 7710322 2,069,516 5,640,806 398,076 Curent Tax @ 259% 0n above 34.853,205 |[ 4600350 10.252.875 || 21017,752 Deferred tax 32.00 (7,102,903) (2,530,834), (4,612,089), 19,676) XV, NET PROFIT AFTER TAX-TRANSFERRED TO ‘CHANGES IN EQUITY (XIX) ar7azeo —6331805 3627s 3650576 Earning per Share (Caleulated on 7,897,500 shares) 33.00 608 207 401 463 (Previous year's EPS has been restated based on 7,887,500 shares) ‘The annexed notes 1 to 49 and schedule 11028 frm an integra part of he nana statements Oy pasate Spoussnk oy — a it “Zain Ma, Nazrul stam AHM Abdullah 3. Al Ahsan ‘Shamsul Hug Chairmen Managing Director & CEO Director Chief Finance Officer Company Secretary ‘ined in terms of our separate report of even date Dated; Dhaka (05, December’ 2016 ED 2015-2016 ff N E u ty © 7 Plrodldif ASE Rahman Mostafa Alam & Co. ‘Chartered Accountants “Sa cuemicaca LimiteRahman Mostafa Alam & Co, Chartered Accountants WATA CHEMICALS LIMITED Statements of Cash Flows For the period from January'2015 to June'2016 (18 Months) Particulars Notes Dees Jan'i4-Decid (18months) _(Smonths)_(12months)_ (22 months) |. Cash Flow from Operating Activites: 67217577 2402.870 314707 21,996,081 Callacion from Sales and Trade debtors 3400 /48e,703,172) [72,006,679 | 312,603,483] {348,203,984 Payment for Raw Materials and Trade Creditors 35.00 (268,245,945) | (100,258,052), (168,086,883) | (215,214,873), Payment for Salaries & Wages Expenses 36.00 (110504408) | (33,540,070), (76,968,335) | (65,687,388) Payment of VAT and Tax 37.00 (38,735,241), |__(14296,687), __(24438,558),|__(25,307,638), 1. Cash Elow rom Investing Activites: ‘Acquistion of Fixed Assets: Computer 3800 (48,436,705) (406,488) (43930223) (709055,051) I, Cash Flow fom Financing Activites: (2ss14sss) (23,137,298) 4622756 46,588,568 Loan Recelved 39.00 [270,884,153 | [170,000,000 | | 100,854,153] {96,807,340 Loan Repais 4000 (287,643,963) (193,120.958) _(94522,995), (48,018,232) Disend Pais 41.00 (1,724,728) (25328) (4,708,402) |__(2200,520) "Net Cash Inlow/(Outlow) forthe year (14243) 266334 (3,540,508) 3907282 (4,472,402) Cash & cath Equivalent at Opening 14023;396 4930,638 1023,396 2,495,798 Cash &.cash Equivalent at Closing 41289,730 41288730 as30638 4023,396 The annexed notes 1to 49 and schedule 1 to 28 frm an integral part these fnancal statements / le OY AtSuseke 6 cummed a Ma kia Ue-Zatan Md, Nara slam AH.MSAbdulin ‘AV Ahsan ‘Shame Hua ‘sommes estreteeartccs Ra citeteenthr company tetcny Signed in terms of our separate report of even date ses Paedlnff ASE 106, December 2016, Rehmen Mostafé Alam & Co. ‘Chartered Accountants a WiMicacs LimireoEe 2015 Rahman Mostafa Alam & Co. WATA CHEMICALS LIMITED ‘chartered Accountants Statement of Change In Equity For the period from January'2015 to June'2016 (18 Months) peers note Share| Share| Revaluation | Reserve & Capital Premium Reserve | Surplus ‘As at January 01,2015 3,180,000 32,400,000 455,868,171 63,389537 614,837,708 Net prof after tax forthe periods from Jan'15-June'26 (18 Month) 774260 478974,260 Prior year adjustment Expence a : (035,07) (935,107) Prior yer adlustment: Correction of opening dvdend payable 1a78e71472,887 Cash Dividend forthe year 2014 adjustment a = (859,000) @.289,000) Stock dviend for year 2014 transfered to capital 15,795,000, (45,795,000) Depreciation on Revahiaton Increase adjustment a (14,286,305) 14,286,305, : Balance as at 30th une, 2036 78,975,000 32,400,000 44,581,865 107,233,842 660,190,708, WATA CHEMICALS LIMITED Statement of Change In Equity For the period from January'2016 to June'2016 ‘Asa January 01,2016 78375,000 32,400,000 446,055,962 69,065,854 646,500,816 Net prof after tax fr the from Jan'16-une'N6 (06 Menthe) = 16331,885 15,331,885 Prior year adjustment 2 (955,840) (955,840), Prior year adjustment: Correction of opeing dividend payable a2 147847 1472,887 Cash Dividend for the year 2014 adjustment a = B,159,000) (289,000) Deprecition on Revaluation adjustment a (447.098) 4474096 Balance as at June 30, 2016 78,575,000 32,400,000 441,581,865 107,233,842 660,190,708, WATA CHEMICALS LIMITED Statement of Change In Equity For the period from January'2015 to December ‘2015, note) Stare | Share| Revaluation | Reserve & IN capital Premium | Reserve | Surplus ‘sat January O1, 2015, 63,180,000 32,400,000 455,868,171 63,389.37 514,837,708 [Net profit after tax fr the from Jn'15-DacemnberlS (12 Month) : 31,602,375 31,612,375, Prior yea adjustment 2 20733 20,738, Cosh Dividend forthe year 2014 adjustment 15,795,000, (35,795,000) Depreciation on Revaluation adjustment a = 8812209) 9,812,209 Balance as at December 30,2015 7a3575}000 32,800,000 446,038,962 49,065,884 646 00,816 WATA CHEMICALS LIMITED Statement of Change In Equity For the period from January'2014 to December'2014 Share| Share| Revluation | Revere ® petra ote Tet EE ee See ‘Ast anuary 01,2034 1600000 32400000 466630682 24720724 sa2.26456 Net prof after taxfor he period on 2014-086,2018 : : 26566875 26560,76 Prior yer adjustment (093.124) (4,093,128) Stock Dividend for the yar 2013 :share issue 14,580,000 = (24380,000), : Depreciation on Revaluation adjustment (10,765,463) 10,765,461, 2 Balance as t December 30,2018 {3,180,000 32,400,000 455,868,171 63,389,537 614,837,708, ‘The annexed notes 1 to 49 and schedule 1 to 28 form an integral par ofthese franc statements Ma: Mihar-Uz-Zarian Md. Nazrul slam AMM Bbdulin ‘Shamsul Hug ‘Chairman Managing Director & CEO Director Chiot Finance Officer Company Secretary Signed in terms of our separate report of even date Pbrendlerf LAS? Dated; Dhaka : Rahman Mostafd Alam & Co. 05, December 2016, ‘Chartered Accountanis 206 i] ECC vo) u, aRahman Mostafa Alam & Co, ‘Chartered Accountants WATA CHEMICALS LIMITED Notes to the Accounts For the periods ended June 30, 2016 (18 Months) 1.00. SIGNIFICANT ACCOUNTING POLICIES ANO RELEVANT INFORMATION: egal form ofthe Enterprise: |WATA CHEMICALS LIMITED" was incorporated in Bangladesh on August 19, 1981 under companies Act, 1913 (Subsequently amended in 1894). Ins shares are ited with Dhaka Stock Exchange Lite in 1992 & Chittagong Stock Exchange Limited in 1997 és ‘ fs ‘The registered ofc ofthe company is at 17/8, Monipurioaa (3rd Floor, Sangshad Avenue, Dhaka-121 ts factory I stuated at Murapara, upgon, Narayangon, Bangladesh, Nature of Business Activites: ‘The Company produces Alum & Zinc Sulphate, Magnesium Sulphate, Sulphuric Aci, Basic Chrome Powder (BCP) Linear lly Benzene Sulphonic. ‘Aid (LABSA) for 100% local consumation. Accounting Poli ‘Te accounts have been prepared on going concern bass under generally accepted accounting principles following historical cost convention on accrual base ic accounting pli Applied for significant Tran ed ‘Compliance with Bangladesh Accounting Standards (BAS) ‘The francial statements have been prepared in compliance with requirements of BAS as adopted by the Institute of Chartered Accounts of Bangladesh (ICAB) and applicable in Banglades, ‘Sompliance with toca Laws: ‘Te fnancial statements have been prepared in compliance with requirements of the Companies Act 1994, the Securities and Exchange Rules 1987 and other relevant lca laws and rules Recognition of Property, Plant & Equipmentand Depreciation: Property Plant & Equipment are stated at cost including revaluation effect less accumulated depreciation la accordance with BAS 16 "Property Plant & Equipment’. Cost represents cost of accuisition or construction and indude purchase price and other drety attributable cost for bringing the assets to working conditions for its intended use, but donot include any capital borrowing cost. No deprecation is charged on land {and land development. Depreciation on allother fixed assets ae usually computed using the reducing balance method. Expenditure for major replacements, enewals and modernisation are capitalized, Plant & Machinery nd Building were revalued a replacement cost basis and land was revalued of present market price bais by profesional values to the year end of 2008. Revaluation increase total amount of Tk. 491,420,573 was taken into audited account of year 2008 as per Board's decision, Annual depreciation rates applicable to the princ Plant & Machinery : 10% Factory Bulking : om Boundary Wall - 15% Motor Vehicles and B-ycle - 10% Furniture & Fotures 7 10% Offce Equipments = 10% Laboratory Equipments : 15% Computer : 10% Generator 7 10% Chiron Playground equipment : 10% Depreclation on plant & machinery and factory bullding, Sulding wall and Laboratory equlpment are charged to cost of goods sold and ‘depreciation on Motor Vehicles, Furniture & Fisture & Office Equipments, Computer and Genarator charged to administrative expenses consistently. Inventories Inventories comprises raw materia stock, stores & spares stock and frshed goods stock. They are stated elther at weighted average cost or net realizable value whichever i lower in accordance with BAS-2. “inventories” are valued after making value adjustment fr any obsolete or slow moving itoms. Net realizable value Is determined ater deducting the estimated cost of completion and/or cost to be Incurred for effecting sale with previous practice “Trade and other receivable: ‘These ae carried at orignal invoice amount. Trade and other receivables are unsecure, but considered good and realizable. 2015-206 == a | WikMicacs vimireoRahman Mostafa Alam & Co, ‘Chartered Accountants and Cash Equivalents: ‘cording to BAS 7 "Statement of Cash Flows" cash comprises cash In hand and demand deposits and, cash equivalents ae short term, highly liquid investments and readily converile with insignificant risk of changes in valu. As per BAS 3 "Presentation of Financial Statement” Cash imhand and bank balances have been considered a cash ad cash equivalents. ‘creditors Acruals: Uabiities are recognized for amounts tobe pad in future fr goods and services receive, whether or not bile by the suppl. Curent Tax 's the company shares are publicly traded the rate of income tax applicable forthe year under aut is 27.50% less 10% rebate on tax in line ‘with NBR'snoifeation as and when company decars dividend @ 20% and above on shares Deferred Tax: Deferred taxhas been caeulsted according to BAS-12 and its effect has been sven inthe nancial statements under auet Foreign Cutrency Transaction: ‘Transaction in foreign curencis are converted into Bangladesh Taka atthe Exchange rat prevali ‘ith provisions of BAS 2 "The Effects of changes In foreign currency Rate”. onthe date of transaction in accordance Revenue Recognition ‘Te company ecogrizes revenue wien sk of ownership has been transferred tothe buyer whichhas satisfied all he condition forthe revenue recognition as provided in BAS 18 "Revenue Recognition". ontibution to workers profit paticiation/ Welfare Fund: ‘Te company provides @ 5% of nt profit before tax 25 per provision f the companies profit (Workers participation Act, 1968) as and when it earns profit Retirement Benefit; ‘The company has not intecuce provident fund and retirement benef scheme for its permanent employees and workers ‘Subsequent disclosure Event occuring after the balance sheet date: No such important event occurred after balance sheet or adjustment made in subsequent year which shouldbe dicosed for avallabilily to user ‘of financial statement fo their evaluation. fnrning per Share (EPS), ‘The Company calculates Earnings per share (EPS) in accordance with BAS 33 “Earnings per share" which ha been shown onthe face of prof and loss account and the computation of ES is stated in Accounts. Diluted Earnings per Share: No diluted EPSs required tobe calculated forthe year as there was no scope for dilution during the year under review. ‘Statement of cash Flows ‘Statement of Cash Flows fe prepared principally in accordance with 8AS 7 “Cash Flow Statement" and the cath flow from the operating ‘activities have been presented under dict method as prescribed by the securities and exchange rules 1887, Issues ‘One ofthe Director ofthe Board of Directors lodged court case through Tite Sul No, 372/2008 at the First Assistant Judge Court, Dhaka on 13.06.2008 praying injunction against newly inducted Director and Managing Director Md. Nazrul slam. And the Ditector obtained 2 ‘Temporary Injunetion from Court and took possesion of the ene factory including Heed Office, Subsequently the above case has been ‘inalied and resole the crisis of management on 02 10.2007 atthe AppelateDrvsion, Supreme Court of Bangladesh So the Management of ‘the Company were under sub udice though the pecod fom 2004 to 2007 and the reason of which the doy to day operation of the factory as wall 35 head office was inoperative. However, after vacation of injunction of court upon management of company, i started its production activities since 2008, However, after vacation of njuntion of court upon management of company, present management stated its production activites since 2009. ED 2015-2016 chemicals UM)Rahman Mostafa Alam & Co. CChertered Accountants Biskand Uncertainties for use of estimates in preparation of financial statements: ‘Te preparation of financial statement in conformity with the international accountng standards rquires management to make estimates and ‘assumption that afect the reported amounts of assets and liabilities and ditlosue of contingent assets and lables at the date of balance sheet that affect nancial statements and revenues and expenses during the period reported. Actual results could difer from those estimates. Estimates are sed for accounting of certain ites, such a, lng term contracts, depreciation and employees benefit plans, taxes, reserves and contingencies, “Trantaction with related partes: “The company had not carried on any transaction with related partes inthe normal course of busines riod: Fingncial Statement of the Company covers period from Ist January, 2015 to 30th June,2016 (8th Months), while company doses its books of ‘Accounts on 30th June in order to introduce unform accounting year as per BSEC's (Bangladesh Security and Exchange Commisson} directive vide ‘ther eter number SEC/SRMIL/2011/1240/448 date 27.08.2016 fr al sted companies. Reporting Currency and Level of Precision: ‘The figures in the Financial statements represent Bangladesh Currency (Taka, which have been rounded off to the nearest taka except where Indicates otherwise, ‘esponsibility fr Preparation and Presentation of Financial Statements: ‘The managements responsible fr the preparation and presentation of Finandal Statements under scion 183 ofthe companies Act 1998 and as per the provision of "The Framework for the Preparation And Presentation of Financ Statements" as indleated in Bangladesh Financlal Reporting Standards (BFRS). Component of Financial Statements: ‘cording to the Bangladesh Accounting Standard (BAS) 1 “Presentation of Financia Statement" {allowing components: the compete set of Financial Statements includes the 2) Statement of Financial Postion a at 30th June, 2016 1b) Statement of Comprehensive income forthe from January'2015 to une'2016 18 Months) «) Statement of Cash Flows forthe from fanuary2015 to June'2016 (8 Months) 4) Statements of Charges in Euity forthe rom January’2035 to June'2016 (18 Months) ©) Accounting Policies and Explanatory Notes, Comparative Information: Comparative information on statement of Financial position as on 30.06.2014 (Unauslted)poresented(bated on sacound quarterly report af year 2015) have been disclosed in rezpect of previous year fr all rumeial information in the Financial Statements and alo the narrative and deserptive Information have been cscosd when tis relevant for understanding ofthe current year's financial psiionasper directive of BSEC Previous year’s figures have been rearranged wherever considered necessary to ensure comparability with the current year's EY .! WkMicacs LimirenRahman Mestafa Alam & Co. ‘Chartered Accountants 200 F DEPRECIATION: Tk, 621,860,1 30.06.2016 31.32.2015 31.12.2016 ‘The above amount it made up a8 flows: Ax cost: 887,459,011 384,179,691 371,384,532 Balance as at 0L01.2016 384,173,691 871,384,532 156,769,127 ‘Add: Addition during the period 3.279320 12,795,159, 16,215,405, Les: Sale during the period (4,600,000) Depreciation 265,508,851 255,074,987 232,477,528 Balance as at 01.01.2016 255,078,967 232,477,528 209,524,145 Forte period 103523004, 22,597,419 23,731,382 For adjustment forthe peiog : : (778,000) \Writen Down Value a a 30.06.2036 621,860,160 629,108,744 638,907,008 8} Deals of Fined Assets with origina cost, deprecation rate of depreciation and written down value are shown at Schedule. 1). Addition to Fixed Assets was made to Tk 3,279,320 the pried from January2016 June'2016, Detals are shown at Sched 4L.Depreciation onadtion had been made with date of aquisition «)_ Depreciation on 8C? plant and Labsa plant had nat been charged since long, Because both plants had remained close, as reported bby Management due to market constraints of both product 4) Depreciation had been charged on partial revaluation increase of Plant & Machinery amounting to Tk 102,459,869 agsnst total revaluation increase to Tk. 353,253,853 Le, 29% of revaluation increase 3.00 CAPITAL WORKIN PROGRESS: 7h.88,723.872 8) Construction Works: ‘The above represents cost of construction work at factory incurred towards cost of M.S. Road, Cement Bill and payment in respect of factory of factory building expansion, Read Construction, Boundary wallet. The work is stil in progress after completion of Work cost would be allocated among respective jobs Opening Balance 37,496,708 54,661,646 ‘Aton during the period 8.300 323835,062 56,561,646, otal Balance 17,505,008 £87496,708 56,661,646, Less: Adjustment Transfer to Fixed Assts 3 7 ‘losing Balance as on 30.06.2015, 17,505,008 99,496,708 56,561,646, 1) BMIRE Expenses (New acd plant): Opening Balance 3 : ‘dation during the period 1218864 1218864 : Total (a+b) a3872 87,496,708 ‘BARE for new Aci pant project hae boon undertaken by company at end of year 2015 witha view to increase annual production capacity of Acid plant frm 18,000 NLT. to 48000 M.T. For BMIRE projec, estimated cost would be around Tk. 47 Crore. I8 Agr te finance 35 Crore though debentute loan at 75:25 debt equity ratio. Debente loan would be repayable in 5 years at quarterly Installment with interest © 44.50% pa with grace period of (one) year. Mesmile IB released k7 Crore in the month of June 2016. ‘4.00 INVENTORIES: TK 378,525,310 Raw Materials stock Schedule? 71,608,491 88,100431, 87,306,722, Finished Goods stock Schedules 108,216,819 90,489,338 79022981, Stores & Spares Note-26.02 2,700,000 2,300,000, 3,500,000, Total 178,525,310 188,889,769 169,829,703 aw Materials (M. Ton) 94 433 480 Ficished Goods (M. Ton) 78 7788 6.487 Total (M. Tons) 11,802 12.616 11,096 (a) Raw materials stock with quantity and value are shown inSchedule-2 () Finished goods stock with quantity and value are shown in Schedule-3 (e)_ Product wise sale with quantity and value as wellas VAT on Sole are shown in Schedule-4 ()_ Both raw materials inventory had been caring od stock of 867-563 M. Ton worth Tk 16,689,376 and fished goods inventory carrying old stock of1280.630 M, Ton wrth Tk 586,583 since 2008 As reported by management these stocks were taken away from store by past Directors during their management time. No provision ha been made in accounts against old stock 35. ‘reported by management, legal case against old Diectrs are sl pending with cour. (e)_ Raw materials stock, Frished goods stock and stores & spares with quantity and value are tekn nto account as Certified by ‘Management. Physi verifiaionatat year end was not cared out 7 “Sa i cuemicaca Limite EEE 2015-2016 fi u ty5.00 MATERIALS IN TRANSIT: TK. 14,916 Materalsin Trans/Rock suphar (LC368) Moterals in Trans Zine Sulphar Role (LC 454) Moteralsin Teans/Rockulphar (LC 421) Materals in Teans/Sulphar Lumps (UC 145) Materials in Teanslt/Alum Hydrate (LC-148) Materials in Transi/Sulphar Lumps (LC 483) Materials in Transit Alum Hydrate (LC-457) Materls in Trani Sulphar LUMPS (.¢ 460) Materials in Traney/Aum Hydrate (LC-472) Materials in Transy/alum Hydrate | (LC-223) Materials in Teansly/Alum Hydrate (LC-229) Materials in Trans Sulphar LUMPS (LC 201) Materials in Trans Sulphar LUMPS (.¢ 200) Rahman Mostafa Alam & Co. ‘Chartered Accountants Co 30052016 31422015. 1.322014 4ss0073 som 297755 5 5522087 i 718,160 1388291 716,395, 716894 ‘ 701926 7 2816001 ® ‘85,792 9 5,253,906 aasi9.662 6017.95 41590794 Delis of Matra in Transit against LC 146,223, LC 228, LC 200, LC 201 are shown at Schudule 5 6,78 and 9 respective. 6.00 TRADE DEBTORS: TK, 19,470,769 ‘The movement of Trade Debtor is shown below: Opening Balance 7269898 25,794,905 19,105,730, ‘Ada: Sales during the period 189289400 302,136,775 352,356,781 Total 196,589,2 327931681 371,462,511 Less: Received during the period 1s60u4o29 © 3206661,783 349,189,105, Net Balance 10515268 7269898 22,273,406 ‘Trade Debtors-Debit Balance __(Sehedul-10) 19,470,769 15259698 | [25,794 906 Deposits against Sales -Creit lance (Schedu-12) (8,955,500) | __(7,889,800) (3,521,500) (a) Name wise debtors and depst ageinst sales as on 30.06.2036 ae shown at Schedule-14& 15 respectively Ub) Trade Debtors included old debtor of Tk. 3,660,307 for which no deals are availabe, No provision was made 7.00 ADVANCE INCOME TAX: TK 59,250,916 Advance Income Tax (Wote7.01) 17,990,228 15573550 11625,730 Tax deduction at import (Wote-7.02) 27,420,392 2ag97108 19,760,011 Tax deduction from Sale (Wote-7.03) 13,880,296 12183273 10.288,773, 59250916 3,653,927 «——,6345i4 Loss: Adjustment with Provision for Tax Note-15.00) Balance as on 20.06.2016 59250916 3,683,927 «=, 634,514 ‘Yearwise payment of vance income tx are shown a sch 7.01 Advance imeome Tax pad in cash :Tk.17,990,228 ‘Opening Balance 1.012016 16573550, 1625,730, 9:125,730, ‘Aton during the prod 1416678, 4.967.820 2,500,000 17890228 «416573550 11,625,730 Less; Adjustment with tx ibilty : ‘losing Balance 30.06.2016 17530228 16573550 11,625,730 7.02 Tax Dduetion at import: Tk 27,420,382 pening Balance 01.012015, 24,897,108 17690113883 ‘Adon during the prod 2523,288 5,337,093 5,121,198 aamssz ——2ag97108 «19,760.01 Less; Adjustnent with tax bilty : : . ‘losing Balance 30.06.2016 amas 2ags7108 __—19;760011 703 Tax Deduction from Sale Bil: Tk.13,840,296 Opening Balance 01.012016, 3283273 10248,73, 6511039 ‘Aiton during the prod 11657023 1.934500 3737,734 33840286 12,883,273, 10,248,773 Less; Adjustnent with tax ity : - . ‘losing Balance 30.06.2016 3380296 283278 ——oz4a.77a a | WikMicacs vimireo 2015-206 ==8.00 LOANS, ADVANCES & DEPOSITS: TK. 35,231,488 [Advance to Ashish ‘Advance to Abu Taher, EM Factor (Income Tax) ‘Advance to All Ansan, CFO (Income Tax) ‘Bonk Guarantee Margin with Agron Bonk (Note 8.01) Employees Loan (Undtailed) Security & Earnest Money Depesit (Note 8.02) ‘Advance against expenses/abbar ‘Advance agasintSalary/Harun-Or Rashid ‘Advance against expenses/Shamsul Hag, Driver ‘Advance against Salary /Al Ahsan ‘Advance for Ofie Recomodation ‘Advance against Expenses / Mohd. Al [Advance to sian Paints ‘Advance for Expenses/ Rana Driver ‘Advance to Painting Misty/ Motaleb ‘Advance to Abdul Awal/For Land ‘Advance to Nur Salam For Land) ‘Advance to Krchibi Insitute of Bangladesh ‘Advance to wheels Automobile Workshop ‘Advance for Expenses (Un detailed) ‘Advance against expenses (Harun Driver) ‘Advance against expenses (Swapan, Driver) ‘Advance agains Salaries (Undetaled) VAT Deposit AT deposit (10% of Cla) VAT deduction at import (Not Adjusted) [Advance to Ameena Enterprise ‘Advance 10 CBF Agent/Abid Shipping ed. toan to Kawsar A {oan to Asada ‘Advance against expenses/ if isl ‘Advance against expenses /Polash [Advance against expencer/Mukta [Advgance against expenaee/Munir ‘Advance against expenses/A. Rain ‘Advance to Electro Make Eng. (overhauling of generator) [Advance to National ricks Corporation ‘Advanced to Mechanical nga. Works ‘Advance against expenses/Abdur Rob ‘Advance to Advocate Shamien ‘Advance against expenses/Ai Ahsan, CFO ‘Advance 1 CF Agent, Gul Venture Ltd, Advance to CBF Agent, Jamuna Trading ‘Advance to CBF Agent, MLM. Corperation ‘Advance to CE Agent, Shah Alam Syndicates ‘Advance to Kohinoc Transpart(Sumon) ‘Advance to Ruhul Mistry ‘Advance against expenses /Rafique ‘Advance to Nagar Mistry ‘Advance against salary/Ali Akbar ‘Advance against salary Pal [Advance to AbAmin Engg, Woeks ‘Advance to Kati Enterprise For Seritary Goods) ‘Advance to Ferdous (For Sanitary Works) [Advance to Raj Mistry [For ETP works) ‘801 Bank Guarantee With AgraniBank:Tk 1,002,458 101d Balance detal) 3. Chittagong WASA 3. Urea Fertiizer Factory, Ghorasal 4 Saidabas Water Treatment Plant 5. Dhaka WASA 6.samuneFertier Factory 7. ashugon) Fertilizer Factory ‘PalachFertiaer Factory 9, Ashugon} Power Station 10, Ghorasal Power Station ED 2015-2016 (wote-8.03) (Wote-8.08) (Wote-8.05) 30.06.2036 9,000 61500 64355 11002458 60,500 5,209,605, 64 61,000 ‘312 25,000 2,800,000 139246 2502 15,000 500,000 330,000 10,000 6,000 14002.879 3.303, 21000 37500 178810 4.182.780 3,623,230 ‘70,055 3500,000 10,000 95,000 (25,998) 1,506 ‘aa a2 +4,000/000 44,000,000 100,000 37038 12,000 aaa 745,601 3925,000 3,900,000 29,503 45,520 08,300 9,100 (423870) 111000 13469 35,231,488 sea 351,825 34797 336,136 38,180 6.676 1002458 Rahman Mostafa Alam & Co. ‘Chartered Accountants Con 31.32.2015 48,300 52,000 s1s980 60,500 5.620.341 4 35,000 2,800,000 139246 1,002,875, 1783 37,500 207,887 4,182,780 3,623,220 470,085, 10,000 95,000 (25,996) ° 30 2 az 1,000,000 100,000 37038 32,000 424230 715,601 29,508 08,300 ‘59 a19469 21,865,640 356,804 54797 36,236 47,700 21,380 613880 CHEMICALS LIMIT 60,500 5,884,741 ‘S00 2,800,000 131,226 11002879 4613 37,500 59382 4.182.780 3573824 ‘70,085, 37035 12,000 332,532 745,601 179,668 100,000 503,300 119,468 24,049,513 asssea 101,306 102,950 133118 24,308 23;590 16.52 758264 ‘a BbRahman Mostafa Alam & Co. ‘Chartered Accountants 8.02 Security & Earmest Money Deposit: Tk. 5,209,605 30.08.2016 31.12.2015 BLizZ2018 41. 01d Balance (detals) 3800045, 44066 741, 4,066,742, 2. Tas Gas 863,600, 863,600 863,600 3. Chitagong WASA 150,000 210,000 160,000 4, Ghorasal Power Station - - 50,000 5. Jamuna Fertilizer 27,000 50,000 - 6 Chitagong Urea FertitzerFactoy 168,960 - : 7. Saidabod Water Treatment Plant 200,000 300,000 210,000 4 Ashugong Fersizer 7 130,000 " 9. 8P08, Narayangong 7 : 274,400 10. Ashugon| Power Station : ' 150,000 31. Ohala WASA, 5 : 110,000 5,209,605 5620341 5.984.741 8.03 VAT Deposit: Tk 178,810, pening Balance 207,887 59.382 156,212 \VAT cash Deposit 6,200,000, 10,200,000, 111500,000 VAT Deduction at Import 2.499.698 2,169,879, 2,948,703, ‘otal Deposit ‘3.907.565 12429,231 34,108,935 Less: VAT Adjustment (8,728,755) (02221,364) (24,045,563) 178,810 207,867 59,352 8.04 VAT Deposit (10% Deposit agains clam): Tk 4,142,790 ‘Commission of Customs,excise and VAT Directorate, Dhaka East has raised claim amounting to Tk 427,896 based on their adit ‘objection vie letter dated 11.08.2014, Against ths claim, company as led appeal with Appellate Tribunal on deposit of amount ‘Tk. 4142790/ The case Isl with apellate Tribunal. 8.05. VAT Deduction at import (Net adjusted) Tk 3,623,230 Opening Selance oIVAT Deduction atimport 3573800 3s73a28 . ‘VAT paid.on import (Alum Hydrate in year 2015 2.169879 2.169.879, 5.022.527 ‘aT pal Calcium Carbonate (not taken nto Mushak 19) 49,408 - Less Amount taken into Muchak 19 in the year (2,169,879) (2,169,879) (2,048,703) Balance carried on Loane & Advance at year and 3,623,230 3623,230, 3573820 9.00 CASH & CASH EQUIVALENTS: TK. 1,289,730 ‘Cash Balance: 1,052,654 433270 aan Cash (Head Ofce)- Previous 216,440 216,440 21640 Cash (Head Ofce)- Current 67508 22,463 39,082 Cash (Factory Previous 149.188 148,188 149,188 cash Factory} Current 620518 46,173 16,045 ‘cash at Bank: 237076 4397,368 603,681 Janata Bank Limited Oikusha Corporate Br. 24538 24533 24533, ‘Agran Bank, Principal Branch, CO Ne 362,097 4.322.389, 528,702 Brac Bank id. Asad Gate Br. CO AVC 6,000 6,000 6,000 Utara Bank, C0-21303 4338 4.838 4838 ‘aOBL Account, CD-001122003903 33987 13947 13947 Duteh- Bangle Bank, CO-20122000272, 2438 2438 2438 Basie Bank, AVe-01010059 20213 20213 20233 ‘ost CO A/c 6521111019573 3018 3018 3014 4269730 4530,638 1,003,396 10.00 BANK OVERDRAFT AND LOAN: TK, 43,650,136, ‘Agran Bank CC Hypo, Principal Branch 42,170,983 187,062,223 146,338,584 ‘Agra Bank, PAD ability 1479.93, 1479,198, 1,962,168 45,650,136 189,541,416 149,300,752 (@)_The above bank overdrah/loan was verified with bank statement and found in agreed (0) The above cash crit init was Tk 18 Eighteen cove which was sanctioned against, Hypothecaton/Mortgage of Fed Assets stock and Director's Guarantee. 24.00. SHORT TERM LOAN (UNSECURED): TK 13,129,208 (@) Loan rom Managing Director: Opening Balance 31,358,982 750,500 20201802 Loan Receives period during year pid 7 30,808,482 (991382) Loan Repaid during the Year/pariod (13229,688) = - 133,129,204 31,355,982 750500 (6) Lone Fem Dhaka Chemical = - Tota (248) 33,329,208 31,355,982 750500 a | WikMicacs vimireo 2015-206 ==1200 3301 ‘TRADE CREDITORS: TK 3,129,481 Jahangir Traders, Murapara (Old) afi Uddin & Co. Narayangons (Old) ‘Manu Mia & Sons, Narayangone (Old) S.A. Enterprice (16) 1M. chemical (Old) ‘Sabu)Biplop Super Market Total LIABILITIES FOR EXPENSES & OTHERS: TK, 41,943,245, Bil payable to CRF Agent/M.M. Corporation Bil payable to CRF Agent/Abid Shipping Lt. fl payable to CRF Agent/lanuna Trading Bil payable to CRF Agent/ Shah Alom Syndicate Bil payable to CBF Agent/Gulf Ventures Lt. Bil payable to CRF Agent/M.M. Chemicals for Alum Hydrate Deposit agains Sales Salaries & Wages Payable Directors Remuneration Payable water il Payable Electric Bill Paysble (Gas Bi Payable Telephone Bl Payable Provision for Expenses Contribution to Provident Fund Welfare Expenses Payable Office Rent Payable IB Debenture Loan Overdue Provision fo ntrest/Lanka Bangla Finance Provision for Epenses (sting Fee) ‘Tax Deduction fom Remuneration “Tax deducson from Suppl Bil \VAT Payable from Suppliers i Bil Payabeto CRF Agent/Ruma International “Annual Subscription payable to CSE & DSE ‘Aduit Fee payable Bil Payable to Bighand Coporation (For Fork Lit supply) ‘VAT Deduction from local raw materials ‘Tax deduction from Divident Provision for Interest CC Hypo Bil Payable to Kamal Traders Total ‘Taxdeduction from supplir et, at source: Th, 2,983,543 3) Previous year balance &) From Supplies Bi Car Repairs & Maintenance Legal & profesional expenses Office Rent Tax & VAT Consultant Fee Advertisement & Pubicty Carrying Contractor as sual Fee ©) Directors Remuneration : Managing Director AHM. Abdullah, Director Mahmudul Hasan, Director S.Pal Independent Director 4) From Salaries: Ni Ahsan, CFO. ‘Abu Taher, GM (Factory) Total (a#brerd) 2015-2016 FEB u a [30.06.2016 15,750 25,780 35,600 23431 9,000 2,994,880, 329,401 3,408,794 20015258 s777961 1,899,300, 8,955,500, 1202387 7552010 130 92,445 13397 162 ‘os 505,645 31,000 451000 (Schedutaa) 930368, 20812 0,000 2.983543, 293558 49,943 370,000 150,000 500,000 11995480, (Wote: 13.02) (Wote: 13.02) (Wote: 13.03) 1665, 20,000 113,400 Rahman Mostafa Alam & Co. ‘Chartered Accountants com 31.32.2035 15,150 25,780 35,600 4831 9,000 2,994,880 329,001 11025,448, 369,259 41899300 7,989,500 4131900 7.365.510 2,908 7ait2 320984 3.861 7208 505,645 31,000 331000 60,000 2.229.785 4519236 4303 +370,000 75,000 25,016,798 1393,451 ssa 34,020 23,405 12,000 22,000 1535 ane 353,633 7,500 226,800. 23,500 120,000 60,000 38,000 50400, 25,000 24,400 2229,785 a ‘i a cwenmcace Lintit ES 15,750 25,780 35,600 48,431 9,000 2,994,880, 3,129,481 70487 1,899,300 3521500 1573525 6737510 198,025 276554 361 10,280 505,645 31,000 141,000 60,000 1393951 11036426 4303 70,000 60974 wena 431,480 oan 32.461 8370 32,000 132,000 23,198 40227 168,015 236,800 23,800 120,000 70,000 18,000 [26,0007 24,400 11303,9513302 33.03 34.00 35.00 16.00 LAT dedictopm from supplier et, at souree: Tk. 2,935,158 3) Previous year balance ) From Supplies Bill & Profesional service fees: ‘car Repairs & Maintenance Lega & profesional expenses office Rent Tax VAT Consultan Fee ‘Advertisement & Publcty Carrying award & Outward ‘ust Fee Board Meeting Honorrum Total a+b) \VAT Deduction from Local raw materials supplies: 1.3,995 480, (a) Arar claims a5 reise by VAT directorate vide eter dated 30.03 2016 for supply of Zinc Ash and magnesium powder for the months of an'2015 to Dee2015, From bill of Asad Trading for Supply of ind Ah From January/2016 to June'2016 @4% on billamount From sll of showkat Brothers for Supply ‘of Magnesium Powder fom From Jaruary/2016 to June"2016 @4% on bill amount Total (be) Less: Pad during the period o WORKERS PROFIT PARTICIPATION FUND & WELFARE FUND: TK. 13,929,027 Opening Balance as on 01.02.2016 ‘Add: Provision during the period Less: Pal during tis period Closing Balance as on 30.06.2016 ‘PROVISION FOR TAXATION (Curren Tax: TK, 57,549,357 Opening Balance as on 01.01.2016 |Add: Provision on net prof forthe period Less: ustment of advance income tax Nete-7.00) Closing Balance as on 30.06.2016 (a) Year wise Tax demand and Assessment position are shown in Sehedule-14 Rahman Mostafa Alam & Co. artred Accounts ooeaoe aLAaansSLAz2014 isiazie —asgane———se10 vasa aan ants ‘oa) [eases] [sees] mass | Sei aes imeo|| z600|| 2a tnmco|| 3000, | a6a38 uses) | 73ers | tases uomare | 200350 | bans suawo|| 2s0| | aas00 T3500, |__ 33000, |__zu7s0 Tie —asiease aces asso eno sauqoo 7ssasi : ‘oom 18580 : : tosuess? sis gasnans omar __tgsiama __tannes Taso —ansonssy —noacant iumzoom —snsoassr — aasaaa sasison ase strasso 7519357 ssi9ou7 —azoeast ses ssn — esi (0) appears from annened Schede- hat, Total tax payable (induding interest] was T7673 453 Against which ttl tox provision ‘was mage to the tone of Tk, 52,969,007 upto 31122016. Thus ifleence Tk 23,524,404 are yt tobe accounted. Management ‘dsputes with a ably as er demand note. As such ference of Tax Uabily had net een taken i accounts (c)__ Advance income tax payment amounting to Tk 54,365,685 was adjusted with tax liability of settled cases. Details are shown of sched DIVIDEND PAYABLE: TK. 4.073288 pening Balance on 01.01.20 Unclimed Dividend A360 430 4360 Ohne aasnase | asonese yeast Stock vdend forthe year 2034 ° 2aBAIS gaa 43941 Adaton during the period 3.159.000 15,795}000 14,580,000 Stock ividend for 2008 io] [| 229) [tseow Cath dividend for 2014 (Note-1601) 3,158,000, S546 19805818 19419511 ess Pad transter during the period 14ss.173 17503402 2200540 cash paid 16326] | i70e02) [2.200540 Taner to Share Capt 15.795 00 Acjustmentofcarrecton of opening balance on (Not: 1602) Cesing Banc a on 3.062016 zana6 aia Unclimed Dividend 4360 4360 hdend Payable 2aop26, esau. _—_2a0sai6 2.688571 WATA CHEMICALS LIMITED a 2015-206 =Rahman Mostafa Alam & Co. (Chartered Accountants 2601 cath Dividend year 2024 Tk. 3,159,000 Cesh Dividend for year 2014 was approved in AGM held on 20/06/2015. Sut appropriation of cash dvdend for 2014 was not inadvertantly ‘made in change in equity of 2025 twas now corrected and taken inte accounts forthe year/period enced 30.06.2016 1602 Correction of Opening Dividend Payable: Ti. 1.472.847 (Opening balance of cvidend payable as on 31.12.2015 was inadvertantly carried over Tk 4107658 in place of Tk. 2634811 from Balance sheet appering on 2014, That resulted excess balance cared over in opening balance. it was corrected in the account period ended — hai-u aotal “osinom —apscoom —— 0S00000 Fe of ous Sarena 2012 aon00 ——sitbo00 800000 fest of ous Sharer er 2018 sestoom —gstoomn 4580000 fe tue teen Ser oo 2044 ‘spesamo i878 " feu clon Stuer yon 2085 " " : 7a35om ——mas7s00 —eaasomm0 sco. shane patos 3200880 Treabove as en cried down om pres ya Ts represents remiom Tresbove hs s2suooo ——szanoon 2400000 share coletdon sue oft ht sare of 252000 shares — 1900, RVAUATION RESERVES: T4858, 866 Opening See on 1.012016 fasossse2—aseacnin —essn6n2 enantio arson ncensaca ‘arose gaizaos ‘10765461 tote on 90s mistiacs —agassoar asst {a} One consultant, namely, Or. Engg. Khurshad-ul-slam Pha. in Industral & Process Engneering (Germany) of Bangladesh. Bangladesh Resources Managernent and Development Company revalued company's Pant & Machinery and Equipment inthe Middle of year 2008 on replacement cost basis [Another iil Engineering Consuitant revalued Land at present market price and Building including other cil construction at replacement cost bassin the year 2008, (0) Revaluation reserve was taken into account in year 2008 a per Boar's decison: Details of Revaluation Reserve areas under: Machinery and Equipment 483,200,000 483,200,000 «483,200,000 Land 89,266,750 89,266,750 89,266,750 Building & Other Ci Consretion 80,200,149, 0 200,149, 80,200,149, Revaluation Value (Net of Depreciation) 157,666,099 652,666,899 652,665,039 ther Assets 4,205,463, 4,205,463, 4,205,463, Total Revaluation at replacement cost 56.872,362 «656,872,362 «656,872,362 Less: writen down value as on 31.12.2008 165,042,789 165,442,789 165,442,769 Revaluation Reserve 491429573 494,429,573 491,429,573 Less: Depreciation Adjustment 29,887,707 sare. 35,561,402 forthe yesr 2012 12978569) [12,978,569 12,978,569 forthe year 2013 aera. ania. angi7372 forthe year 2014 30,765,461, 10,755,461 10,765,461, forthe year 2015 9,812,209 9,812,209 : Forth period 2016 6 months) 4,478,096 = : Balance as on 30.06.2016 41581866 446,055,962 855,868,171 (c)_ Detail of deprecation ealeulation on revaluation are (6) Depreciation on Revalued assets forthe year 2012, 2013, 2014 and 2015 respectively hed been recognised In Comprehensive Income Statementin ine with Para-41 of BAS-16 and transferred to revaluation reserve through Changes in Equty Statement. 2000 RESERVE & SURPLUS: TK. 207,233,882 ‘Accumulated Profit 01.01.2036 89,059,854 63,389,537 34,730,728 After Tax net Prof/Loss) forthe period 16,331,885, 31,682,375, 36,566,476 Prior year's adjustment (debi Credit Notea2 (955,840) 20,733 (4,093,124) Correction of cvdend payable Notew2 1,472,887 e S Stock Dividend: (15,795,000) (14,580,000) Depreciation on Revaluation adjustment Schas 4478096 9.812.205, 10,765,481, cash Oidend 2014: adjustment (3,139,000) - ‘Accumulated Proft 30.06.2016 107,233,882 069,858 63,389,537 EEE 2()15-201621.00 22.00 23.00 2400 25.00 26.00 Rahman Mostafa Alam & Co. Chartered Accountants AON FROM LANKA BANGLA FINANCE: 30062016 31.42.2035 pening Balance on 02.01.2016 30,000,000 : ‘Add: Recaved during the period : 30,000,000 : 30,000,000 30,000,000 : Less Repaid during the period 30,000,000 7 : Closing Balance ason 30.06.2036 : 30,000,000 {cB DEBENTURE LOAN: Tk. 170,000,000, {CB Debenture Loan, 170,000,000 : 72,000,000 170,000,000 : 72,000,000 23} C8 sanctioned Debenture Loan of t.35.00 crore vie eterno. IC AO/O1.1034/1698/3899 dt. 16.11.2015 fr financing BMRE/new ‘Acid pan a 75:25 debt equity ratio. This loan is repayable in 20 (twenty) quarterly installment with interest @ of 14.50% p.a with grace period of tone) year. This Loan was sanctioned against Mortgage of company's Land, Building Pant & Machinery as well as personal auacantee of Sponsor Director. )1C8 released Loan of Tk 17.00 crore inthe month of une, 2036, DEFERRED TAX UABILITY: TK. 13,779,356 Deferred tax lability on tarable temporary diferences between carrying amount as per accounts and tax base amounts as on 30.08.2016 has been calculated into account in ine with BAS-12 (0) deterred tax recognised on taxable temporary eiferences.(Scht2) 2660832 13611822 «17,961,757 (0) Deferred tax recognised on depreciation of revaluation crease @25% «218524 2,688,268 2,960,502, (seht3) Total (arb) 13779356 16310190 __20.22259 Computation of deferred tax ability on taxable tomporary diferences and deferred on revaluation increase ae shwon at Schedule-12, 813 respectvey sesso EET Van'5Jun'16—Jan'16Jun'36 15-Dec1s—— dan'l4-Dec ss (18imonths) __(6Months)__(12 Months) _(22 Months) Sulphur Ais 99,103,365 36,657,747, 625 618, 0.079.589 ‘Alum Suiphate 61715210 30,264,053, 31,451,157, 57,751,997 Zine Sulphate 180510000 67,980,000 112,530,000 181,648,095 Magnesium Sulphate 150,097,600 54,387,600, 95,710,009 302,927,100 Total 491,426,175 189,289,400. 302,836,775 352,356,781 (2) Productwise Sales with Quantity, rate, value and VAT thereon during the periods from Jan'2016 -)un'2016 are shown 2 Schodule- 4 \VATON SALES: TK. 20,950,119 VAT on Sulphuric Acid ale 12926596 4781481 6512670 VAT on Alum Sulphate Sale 5023523 3947274 076,249 7532893 YAT onzine Sulphate Sole Free free Free 7 \VAT on Magnesium Sulphate Sale Free Free Free 7 Total 20,350,119 3728,755 a,asa 1405, 563, (@)_VaT on Productwise Sales during the periods fom Jan'2016 Ju'2016 are shown at Sehedule-a, ‘COSTOF SALES: 327,218,026 Raw Materials used (Wote-26.01) 266,689,984 105,386,157 «161,203,827 221,775,964 Ccarcage Inward 10.936.650, 453,240 67383,410 9.259,660, Store & Spares used (ote 26.02) 3,380,295 142,949 19373346, 2:980031, ‘Gas Bl (Factory) 5,896,605 2085,770 3.840835, 3418779, Electric Facton) 11184420 396,007 790,373 27.208 Packing Materials 1345029, 520,119 524910 1213574 ‘Wages & Salis (Fetory) 45511991 586,233, 10,023,758, 8,827,606, 4 Bonus (Foetory) 1528907 604,184 924,763, "886,702 Factory Overheads (ote 26.03) 16,353,664 ro2714an 6,082,243, arigs26 Depreciation (Wote-26.08) __ 29,584,279 9,301,330 20,282,349, 22215,319, Cost of Production 35211864 —139517,050——2i.a9aeia 280,020,383 Stock Adjustment: (25,193.38) 15,727,481) (1846685734 686,768) Opening Finished Goods Stock 79,022,983 96,489,338 73,022,981, 44,366,213 ‘losing Finishes Goods Stock (104,216.19), | (108,216,819), |__ (98,489,338) (79,022,981) serigors 153725569 tes ara0s7 205 363,615 WATA CHEMICALS LIMITEDRahman Mestafa Alam & Co, ‘Chartered Accountants 26.01 Rew Materials Used: Tk 266,689,584 Van'iSlun'i6— Jen'IGWun'16— Jon'15-Decis—_Jan'l4-Dees4 (28Months) __(6Months) (42 Months)_(12 Months) Rock Sulphar 119,305,205 42,485,648 «—«77,119557 78,481,077 Alum Hyérate 33430539 14967277 18,463,262 28,100,489 Zinc Ash aoass.715 33228634 47.735081 79,136,768 Magnesiom Powder 33,489,525 15,004,598 18,484,977 36,353,629 266,689,908 105,386,157 161,303,827 721,775,968 (o} Movement of rw materials stock showing opening stock on 01.01.2015 purchases and consumed during the periods and dong stock on 31.12.15 with quantity and value are shown a Schedule2 (b) Raw maters stock had been velued at weighted average purehase pice, [c)__Rawmaterials purchased and consumed during the year 2025 are shown at Schedle-2 2602 Store & Spares Consumed: Tk. 3.380295, ‘Opening alence on 01.01.2016, 2300000 3.500000 3,150.00 ‘Add: Purchase during the period 1.302.949 737348 3,330,031 Total Balance aus «4237346 680031 Less: Closing Stock 2.700.900 2.300000 3.500.000, Store & Spares Consumed aaa 1937346 2.980031 2603 Factory Overheads: Th, 16,353,664 Leading & Unloading charges (inward) 1.790289 723689 1,086,600 1,531,138 Labour Bl for Alum Breaking 1634, 769 373,418 324351 1,590,624 Repoirs & Maintenance/General Factory) 149.462 61938 87528 325,778 Repairs & Maintenance/Ptant & Machinery (Factory) 5273073 4888,818 384755 1,083,899 Repairs & Maintenance/Generstar (Factor) 2657960 1595950 1,101,010 ‘e304 Repairs & Maintenance/Factory Suing (Factory) 393,955 ‘334079 259876 1,382,327 Repairs & Maintonance/Electic Lie (Factory) 43302 424,208 17598 ‘1,000 Repairs & Maintenance/Equipment (Factory) 1,002,535 315,940 686,595 70,000 Repair & Maintenance/Furniture& Fixture (F2cton) - - . Repairs & Maintenance/Factory Office Equipments (Factory) 4,400 4,400 : Labour Bl for mise. work 39,657 39857 = (it & Lubreants 592,485 22195 580,290 ‘Chemical for Boar 92220, 92220 . Medical Expenses (Factory) 14,206 4,308 9.900 2a13 Uniform Factory) 7,600 - 7,600 53.230 Fuel for Forklift 11960 21960 : 37460 ‘Oxyaen Test Fee ‘9900 9.900 : 10,000 ‘Water Test Fee 13,800 33,800 : Fooding exp. For workers 205,400 205,400 = Prodct Testing Fee 259,760 102,710 160,050 284,650 Fire Incurance| 485,587 315,587 170,000 “ree Plantation 117,550 8.060 109,490 Cartage Making Charges Factory 230 230 . Office Decoraton(Factory Office) 30,540 : 30540 446270 ETP Maintenance 133,820 133,820 " 227,866 Transport License (T/L Fee) 624,250 75,000 549,250 aruazs Eectre Goods 400 : 5400 4,000 ‘Conveyance (Factory) 15,450 : 15,450, 145605 Factory Office Decoration 4.465 4465 Miscellaneous Factory Expenses 26.200 1840 15,000 87,250 Leas Purchase 4300 4300 36353668 s0a71a21 6.082.243 8.719.524 2604 Factory Depreciation: Tk, 29,584,279, Depreciation on Plant & Machinery 2agr328 7.796688 17,116 597 18,779,458 Depreciation on Factory Buiting 4580572 177,705 3.102867 3,266,176. Depreciation on Factory Boundary Wall 69,822 20,824 4.908 57.645 Depreciation on Laboratory Equioment 20.684 657 14as7 you 39504279 9304330 20,282,989 22,115,319 27.00 DIRECTOR'S REMUNERATION: TK 3,512,200 (o} Remuneration: (i) Ma, Nazru lam, Managing Orector 432,000 144,000 288,000 288,000 (i) Me. A.M Abdulah Director 2,800,000, 600,000 1,200,000 1,200,000 (i) Me Mahmudul Hasan, Oirector 800,000 300,000 500,000 ‘500,000, (is) Me. Subrata Pal, FCM independent Director 270,000 90,000 190,000 240,000 (0) Taxon Remuneration [Borne by Company) 120,200 23,400 96,200 96,800 Total (a) 322,200 4,157,400 «2,268,800 (2,324,800, (b) Ei Bonus ‘0,000 90,000 5 ‘otal (e+) 3512;200 247,400. 2,264,800 a 7015-2016 CHEMICALS LIMIRahman Mestafa Alam & Co. ‘Chartered Accountants 280. ADMINISTRATIVE AND MARKETING EXPINGES: TK. 28028208 hieste TansesurielavieDeeis fate Dee (28 Months) (6 Months) _(12 Months) _(12 Months) Salaries & Allowances (Office) © 7A82339—«2 582673 «4845658 «4,365,877 Eé Bonus ‘sonsis —1ag.t26 636,690, 626258, Printing & Stationery 397250255055 142,195, 173.735, Fuel for Car o6a663 406.668 658,000, 324,500 Fuel for Generator (Factory) ‘460,700 - 460,700, 577,351 Fish & Deer Upkeep 636150 234,50 405,000, 360,203 Office Rent 376800 136800 «240,000 773,600 Entertainment & Lunch expenses (Ofce& Factor) 751365 334087 420,308, 247,387 Dinner Expenses for Guest (Factory) 3,000, 3,000 Conveyance (Office & Factory) 108,775 35,506 69,269 Office Decoration Expenses 20416 5,736 14,700 13940 Carriage Outward 2870.03 1426423 1488,185 2,279,327 Charity & Donation (id Tips) 263,651 5100 "258,581 192,500, Car Repairs & Maintenance 1asa27 S443 560,793, 408,315 Internet Bil (Office & Fetory) 68213 25,70 a25i2 23,608 IT Maintenance & Software 78,305 5.430 ne73 ‘57,902 Loan Processing Expenses 18) ssc sean 00,000, 135,000 Loading & Unioading (Outward) mags) 483534 239,335, 1225530 Rates & Taxes, 35,000 : 55,000 3,589,532 cence Renewal Fe (Rates & Taxes) 178,725, 5575 123,000 275/955, Traveling Expenses 2126138 2935003 834,634, 664,736 Tender Expenses 43690 19,730 24,960 46,420, Vehicle Tax 30,922 30922 ‘Advertisement & Publicity 1137230 6827380492 an9468 Postage & Courier and Fax Exp, 39,792 5,02 4774 ‘3919 Stamp Purchase 88,366 45,78 42/365 27,380 Office Renovation Expenses 55,000 : 55,000 : Factory Office Renovation Expenses 1,300,889 : 1,304,889 Documentation Charges, "125660 45,700 30,950 128,500 ‘Annual subscription to Listed Companies 165,000 - 55,000 ‘Annual Subsription to OSE ‘70,000 : 70,000 70,000 (DBL Annual Subscription 87,000 : 37,000 CCDBL Une Charges ania 15900 106,221 91,990 Notary Cnarges 3,200, 200 3,000 Credit Rating Expenses 35,250 : 85,250 Cartage making chareges 1230 : 1230 Repairs & Maintenance (Mobile) 700 7,000 Land Mortgage Expenses soo}000 500,000, Bridge Toll Charges & car parking 38,620 38,620 Charity & Donation as7s71 238420169551 110,700 Electr Goods Office & Factory) 38,453 38453 Tax & VAT Consultant Remuneration 206,800 76300 130,000 132,000 Dish sit 23,400 7.300 135,600 11400 News Paper & Periodicals & books 15397 saa 10255 prety Electr Bil (MO) 260,388 98265 as2,]21 136,709 Eectre il OFce) 215,364 75727 339,837 136,485, Water Bl Ofce) 478564 siz 33,152 418,300 as Bil (Oe) 130,100 3:00, 6,200 5400 as il (MD) 11835 3,250 3.385 Protocopy charge 53.815 24s 29,400 Land Survey Expenses (Factory) 22,000 1.000 20,000 ‘3,000 Mesical Exp, 105,856 2035103821 275 Office Exp. (Ofce & Factory) 3178, 3178 . Computer operating Bx. 25,608 25,608 Land Revenue (Ofce& Factory) 31500 31,500 Mise. Office Exp. 59.480 3,000 36,480 63,759 Repair & Maintenance/Elect Line 34,450 25,500 3,980 7/360 Repair & Maintenance/Computer& Sofware 15,000 15,000 Repair & Maintenance/Generl Ofc 231,188 21378 109,810 285,568 Crokeres& Cuteries aco ‘540 500 31,963, Mobile set purchase 8.363 3.369 ‘ Telephone Bil (Offce) 45,107 9.636 347. 25,902 Mobil il (fice & Factory) 282,185 94900 187,385 167.670 Moprtgage - 200,000 Bank Charges and Commission 3e5s15 sass 268,776. 222,764 Office supplies 125,996, 36473 70523 Lega & Professions Exp. 593503 359498234050, 140,225 Repair & Maintenance/Generator 138,630 Repair & Maintenance/Offie Equipment 4200 4,200 Discount onsale 240,000 240,000 ‘nuit Fe fr Corporate Governance Report 20,000 120,000 Fee for Appeal (Income Tox exp} 5.500, - 5,500 11200 Usting Fee 219500 108,500 110,000, 112,380 Total 28023,286 11,032,367 16,990,819 17,994,565 2015-2016 nD |. WikMicace vimireoRahman Mestafa Alam & Co. ‘Chartered Accountants 28.00 INTEREST ON LOAN: TK. 49,647,216 Tan'iSJun'i6— Jan'I6Jun'I6—Jan'5-Dec'5 Ja’ Dec' (18Months) __(6Months) __(12.Months) _ (12 Months) Interest on Loan from Lanka Bangla Finance 2,085,365 20385,365 Interest on Agrani Bank. (Hypo) s7717928 12021504 25,606,420 14,577,680, Excess duties for documentation fr Loan with Langs Bangla 7500 7500 Interest on CB Deventure Loan 9,886,427 9,886,627 13,980,000 Total as6472716 14056869 35,590,387 28,527,500 20.00 DEPRECIATION (OFFICE: TK 3.537.021 Depreciation on Motor Vehicles 2,891,581, 935282 4.956349 1,281,721 Depreciation on B:-Cycle 673 a ‘468 ‘20 Depreciation on Furniture & Fixture 100,285 31423 9,162 75475 Depreciation on Office Equipment 267,591 34,563 183,028 397,548 Depreciation on computer 42209 16,508 25,540 202 Depreciation on Generator 115,720 35,920 73800 28,692 Depreciation on Children Pay ground set 13.916 s13si6 - - Total gssoa.—zaasma——«2a1aaaT «616,068 31.00 NON-OPERATING INCOME: TK, 965,970, Profit on motor car sale : : : 18,000 Fish sole 553,315 54,600 498.715, 228,150 Mise. Sales 45,555 555, 45,000 38,500, Mis. come 2,000 2,000 22,582 Caleium carbonate Sale 360,000 360,000 Profit on Sale of Old Air Condtioner 5,000 5,000 ‘otal 965,970 45255, ss075, 307232 32.00 DEFERRED TAX EXPENSES (INCOME) Tk (7,162,903) Careing Cost of Fred Assets (Wrten Down Value) 621,860,160 621,860,160 629,104,744 634,798,614 Less: Revaluation increase 407814337 407814137 407,814237 407,814,237 Net carrying cost ‘204623. 214,046,023 221,200,607 226,984,477 ess: Land Value 401,181,280 101,181,290 __ 101,181,280 __(89,266,750) a Net carving cost (Net of Land & Land Development) 112,868,733 112,866,733. 120,109,317 137,717,727 bless: Taxbasd WOV estimated) 62221408 62,221,408 70.611.781__—_—72.402.287 Temporary Taxable diferences (2-6) 50,643,329 50,643,329 49,497,536 65,315,480 Deferred tax on depreciation on revaluationincrease Deferred Tax ability on Temporary taxable @25% ze27654 12660832 «13,611,822 17961757 Deferred taxon depreciation on revaluation increase (estimated Tk. 4474,096 (6 months of yar 2016) 3.816892 __4ass24 2.688.368 2,960,502 Deferred taxlabilty on 31.03.2036 30,089,546 —*13,779,356 16310180 20,922,259 Less: Opening Deferred tax ability of 01.01.2016 (27,232,489) (16310,190)(20,922259) (28,481,835) Deferred tax expenses (income) recognised during the period (742.903) (530,834) (612060) (751,676) 33.00 EARNING PER SHARE: TK. 6.08 (2). Basic Earning Per Share, as per 84S. 33, iscaeuated as below: eps = _NEt profit after tx 47939757 __36331,885 31,642,375 __ 36,566,476 Number of Share 97500 7897.50 7,897,500 7,897,500 6.08 207 40 18. Previous year's EPS restated onthe basis of 7897500 shares 38.00 COLLECTION FROM SALE & TRADE DEBTORS: TK. 484,703,172 Grose Sales 291,42675 189,289,400 302,136,775 352,386,781 Miscellaneous Sale 965,970 135,255 ‘350735 "307,232 Debtors: Decrease (Increase) 632837 (4234071) 10,535,208 (4,865,734) loan & Advance: Increase (newt of VAT 8. Tas) Increase) (14013,110) (3,394,905) (618,205) (2.594.295) 44,703,172 172,098,679 312,604,403 348,203,984 35.00 PAYMENT FOR RAW MATERIALS & TRADE CREDITORS.TK.268.245.945. Raw Materials Purchare 255,383,383 90,565,317 164,788,035 210,343,734 Stores & Spares Purchase 2580295 1,842,909 737348 3,380,031 ‘Alum Hydrate sales (4,361,500) (4,671,100) (2,680,500) 2 Packing Materials 1345029, 520,113 auqgi0 1213574, Materalsin Transit: Increase 13328868 3901,767 4,427,101, 327,540 “Wade Creditors Decrease/\inerease) 7 268,245,985 100,159,052 168,086,883 735,214,879 a 7015-201626.00 2700 3800 29.00 40.00 41.00 43.00 Rahman Mostafa Alam & Co. Chartered Accountants ‘CASH PAYMENT FOR SA LARIES 8 WAGES AND EXPENSES: TK. 110,504,409 Dees ver ania Deca (uBMonths) __(6Monhs)__(22 Months) _(12 Months) | Salas & Wages (Facton) vows. 6002417 —sogeBsts 9.714308 ‘Salanies& Wages (fRe] 7sznaso «2770799 agasies1 4.365877 (Gas Electrity Tosms 24917 ggan08 4.282.003 arage award 1036650 4.053200 ©8320 —«9.255.680 Factgor Overheads 1635365 1077142102243 ——B.TI8 S24 ‘aminisratve& Morketing Expenses Net of Sears) 25079520 9814218 15,265 30216572038 Financil Expenses a947316 1405586935, 5804a7 28,527,644 Prior ya's adjustment 935,47 955,340 (20.93) 4008 124 Usb for expenses: Decrease (cease) (24390311) 469245551) (2,265,760) _ 198210 Total aun soatos 33540070 76968339 65,687.88 PAYMENT OF VAT & TAKES: TK. 38,735 281 (2) Payment of var on Sale ramon 9609608 12419285. 13,908,708 VAT Dept 16400000] 5200000] | 0200000] {12500000 VAT paid on port amass) 2499698) 2219285 | 248,708 Var Dedetion rom Sle i = 5 is VAT pai on ca purchase 5 : (0) Payment of tax r7g1e2st 5596989 2019269 11583932 Payment of Taxin Cash @seqe08|[ 1416678) | 447730) | 2500000 Tacpaymenton import 7ss327 || 2523288) saz7oa9)/ 5121198 Tnededucin fom Salebil aseisz3|| 1657023) 1934500) | _3787,794 Total 3873520 14296687 24488556 25,307,636 ‘ACQUISITION OF FIED ASSETS: TK 8,436,705 ‘dition to Fed Asets M4a74479 3279320 4095,159—_16225,405 ‘dein for capital workin Progress ssos2226 © zz7ss 2.835.052 54601,648 Sileot motor vehicle (222000) 45436705 «4506488 «3830221 7O055,051 OAM RECEIVED: TK 270854253, Loan fom Dhaka Chemis : : : (50.000) Loan om general Manager - - : €218000) te Debenture oan ‘7000n,000 170,000,000 : ‘ara Bank (Hyp) 10200856 = 40200664 96978380 Loan from Lanka Banala 2o.000000, = 30,000,000 Loan om Managing Decor a0613489 3.513489 270854153 170.000.000 100,858,153 96,807,340, LOAN REPAID: 1 787,643,963 oan from Prime Finance : : = 10,000,000 Loan from Lanka Bangla Finance 30,000.00 30,000,000 Loan from Agrani Bank CC (Hype) 144,891,280 144,891,280 Loan from Managing Director 18,225,688 18,228,688 19491382 1 Debenture Loan 94,522,995, = _ 4522995 18,526,890 297,643,563 153,120.968 94,572,995 49,018,232 DIVIDEND PAID: TK. 1728,728 Dividend pat nan 16326 1.708402. 2,200,540 anes 16326 1,708,402, 2,200,540 PRIOR YEARS ADJUSTMENT : Th. (2,624,260) ‘Cash cvidend for 2014: appropriation (8,189,000) (3,158,000) \VAT Local Raw Material Purchase (055,840), (055,840) Correction opening dividend payable 147847 : ‘CDBL Expenses adjustment credit 20,733 7 20738 (2,621,260) (waiaeao) 20738 DEPRECIATION ON REVALUTION ADJUSTMENT: Tk, 14,286,205. Depreciation on Revaluation adjustment 14,286,305 4474095 _9812,208, 14286,305 4474095 9,812,209 (@) Depreciation on partial revaluation increas of Plant & Machinery as well as Bulding had Bean charged for 2015 amounting to Tk, 9,812,209 and Tk. 4.474,096 for year 2016 (6 months) adjusted in Change in Equity statement, Details are shown in Sc33 ‘Recommendation fopr Olviden ‘he bord unanimously recommended dividend @ 10% In Stock (Bonus share) and 10% In cash ofthe ald up capital ofthe company forthe year ended on December, 2015, which would be taken into accounts after approval the coming AGM. WATA CHEMICALS LIMITEDRahman Mostafa Alam & Co. CChertered Accountants 44.00 Additional information as per requirement of companyes Act, 1994 (2) Total oumber of factory employees (each received annual salaries & wages tk 36,000 & above ) as 84 nos (©) Total umber of head offce ofcers & employees {cach recehved annual salaries & wages tk 36,000 above) was 24 nos. (2 Payment to Directorsas remuneration & Perquiste inthe year 2014 ae shown at note -29 45.00 Plant Capacity and Ulisation Name Annual attainable Ea of ‘capacity (quantity in cae eral Products ‘M.Ton) {axy w.Ten) % of capacity (Suphwicacd ———S~S~*~S~S~S~S~«BOOO TOROS | TH ‘Alum Sulphate 12,000 3,618.550/ 2,008, 17 ine Sulphate 4500 41735302473 55 ‘Magnesium sulphate 45004312000, 2973 6 46.00 Payment in Foreign Currency and Furren Currency Earned (2) No payment in foreign currency (excent import cost of materashwas made inthe year 2018 (©) No foreign currency was earned inthe year 2014. 47.0 Commission Brokerage and Discount tothe selling agent Company had no selling agents such no payment of commission Srokerage and discount was made 48.00 Contgent Uabiity: ‘Commissioner of Customs, excise and VAT Directorate, Dhaka has raised claim amounting to Tk. 41,427,896 based on thelr aduit ‘objection vide letter dated 11.08 2014. Against this caim, company hs fled appeal with Appellate Commissioner on deposit of amount Tk 4,142,790. The cases sil pending with apllate commissioner. No additional ability had been accounted. 49.00 Related partyand transactions: Related party and transaction are considered inne with BAS-24 asunder (a) Short Term Loan with Managing Director Short Term with Managing Diector (Mr. Narul sam) was ful repaid. Ente loan was fee of interes. (©) 1cBDebenture Loan ‘Apart from above the company made transaction with folowing related partes in nornal course of business and or 2 arm's length basis. The name of related party with whom the company had transactions. IB approved debenture loan Tk. 35 crores to finance BMRE (New Acid Plant). 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Ton) Value (Tk) sale (NetofVAT) | (M.Ton) (Net of VAT) (Wnciuding VAT] | __ (Taka) (Taka) (Taka) Sulphuric Acid 8920.24 99,108,365 12,926,596 86,176,768 5.617.000 54,300,503 ‘Alum Sulphate 2.944.000 61,715,210 8,023,523 53,693,687 1.513.000 27,374,908 Zinc Sulphate 6568.00 180,510,000 ‘ree 180,510,000 4092000 112,530,000 Magnesium Sulphate 7526000 150,097,600 free 180,097,500 4554000 95,710,000 Total fy 2015-206 my Limireo ieRahman Mostafa Alam & Co. ‘Chartered Accountants WATA CHEMICALS LIMITED Schedule of Material in Transit (L.C No. 146) Ot LeNumber & Date 0001/16/01/146, dated 31.01.2016 with ‘Agrani Bank, Principal 8, Motihee|, Dhaka, 02 Opening Date 31032016, 02 Name of Materials :Sulphar Lumps (04 (a) cuantiy(M.Ton) 500 M.Ton (6) Amended Quantity (M.Ton) 477 200 MTon 05. Name of Supplier Marvel oscence FZE Hebel Ali, Ob 05 country of origin Russia 7 Unit Price per M.Ton uss2a5 (8 (a) CRF Value in USS (For SOD MLTon) US$ 72,500 (per US$ = Tk 79.00) (b) CRF Value in USS (Amended 477 M.Ton) USS 69,194 (per USS = Tk 79.00) (09 (a) Equivelent to Taka (Original Quantity) Tk, 5,727,500 (b) Equivelent to Taka (Amended Quantity) Th, 5,466,326 10 (a) Material shipped quantity (M.Ton) 477 200M.Ton (b) CRFValue (For 477.200 M.Ton) s$69,19 (Equivalent Taka 27K. 5 466,326 (Materials arrived at Factory 02.07.2016 eTAus oF cost noni gm Insurance Premium: Crystal Insurance Company Lt 2449900 30.03.2016 24,499.00 (02, Expenses through Agrani Bank CC (Hypo): LLCCcourerChartet 10000 31.03.2016 LLcotherCharget 15000 31.03.2016 VAT on Othe charges 39000 31032016, L.cswitt charges 250000 31.03.2016 \VAT on Commision on LC Opening 3437.00 31.03.2016 LLcopening Commision 2291000 3.032016 10%. Margin 575,000.00 31.03.2016 604,487.00 (03. Expenses through Agrani Bank CD A/c: Le Amendment Charges 30000 17082016, LLeCcourer charges 10000 17.04.2016 Lcswift charges 50000 170042016 VAT on Charges 9000 17042016 \VAT on Amendment charges 450017042016 11035.00 4. xpenses through Agrani Bank CC (Hypo): VAT on Charges 9000 12052016 Local Courier Charges 10000 12.06.2016 swift Charges 50000 12062016, 90% LC Marin __4991,32600 12062016, 892,016.00 Total (0102+03+08) 552,037.00 EE 2015-2016 fy es “a cwemicacs LintitesRahman Mostafa Alam & Co. ‘Chartered Accountants WATA CHEMICALS LIMITED Schedule of Material in Transit (LC No. 223) Schadle-6 01 LeNumber & Date +10001/16/01/223, dated 16.05.2016 with ‘Aerani Bank, Principal Br, Motjhedl, Dhaka. 2 Opening Date 16052016 (03. Name of Materials Alum Hydrate (08 Quantity (M.Ton) 300 MTon 05 Name of Supplier Fist Logistic Group te Suite 8, Ansura Estate, Revelution Avenue, Victoria MAHE, Seychelles, Romania 06 Country of Origin Romania 07 Unit rice per M.T0n ss270 08 CRFValue in uss US$. 81,000 @ Tk. 79/per USS (03. Equivelent to Taka Th 6,389,000 10 (a) Quantty shipped in W.Ton& date 300 MTon (6) CRE Value (for quantity shipped) (6) Equivelon to Take (Matera arived at factory 05.08.2016 DETAILS OF cost Fos (1, Expenses in Cash Insurance Premium: Crystal insurance Company td. 2950000 17.95.2016 29,500.00 (02, Expenses through Agran Bank CC (Hypo): LLCother Charges 10000 16052016, [LC Courier Charges 10000 160.2016 LLcswittCnarges 250000 1605.2016 VAT on € Opening Charges 3.38000 16052016, LCOpening charges 2559600 16052016, VAT on Charges 390.00 16.05.2016 20% LC Margin 539,900.00 160.2016, 672,426.00 Total (292) 701,926.00 fy 2015-206 ED a WikMicace vimireo aWATA CHEMICALS LIMITED Schedule of Material in Transit (LC No. 229) 01 LCNumber & Date (02 Opening Date (03. Name of Materials (04 (a) Quantity (M.Ton)-as per LC (b) Quansty .Ten}-as er Shipment (05. Name of supplier (06 Country Origin (7 Unit rie per MTon (08 (a) CRE Value in USS (For 200 M.Tor} (b)Equivelent to Taka (08 (a) CRF Value for shipped quantity (b) Eauiveent to Taka 10 Fist Shipment: (@) Quantity in Ton () CAFValuein uss (6) CRFValuein Toko (@) Material arcved at fctory 11. Second Shipment: (a) Quantity in wton (0) CBFValvein uss (2 CBFValuein Teka (@) Material arved at factory 12 Second Shipment: (2) Quanttyinwton (b) CAF Valvein uss (6) CRFValuein Toko (@) Mater arcved at fctory 13 Second Shipment: [a Quantity in wton (0) CBFValvein uss (@CAFValuein Teka (@) Material arved at factory DETAILS OF cost 0001/16/01/228, dated 17.05.2016 with ‘arani Bank, Principal Br, Matinee, Ohaka, 17952016 = Alum Hydrate 200 M.Ten 197.255 M.Ton Bark Elegant Industries 61, Block, Bangur Avenue, Kokata-700055, nda nda US$. 305 MTon US$ 61,000 (per US$ = Tk 79.00) Ti 4,819,000 USS 60,162.775 [per U 79.12) 274 4,759,974 49.500 M.Ton US$ 15,097.50 Tk 1,194,363.25, 08.06.2016 158222 M.Ton US$ 17,757.41, 1 1404,736.00, :1406.2016 75.100 M.ton US$ 22,505.50 Tk 1,812,607 40 02.07.2016 £14433 M.Ton USS 4,402,065, Tk 348,247.35 03.07.2016 01, Expenses in Cash Insurance Premium: Crystal insurance Company Lt Insurance Premium: Crystal insurance Company Lt 02. Expenses through Agranl Bank CC (Hypo): LLC courier Charges LLCother Charges VAT on charges Lesswie charges VAT en. Commission LLC Commission on LC Opening charges 10% LC Margin 03. Expenses through Agrani Bank CC (Hypo): VAT on Charges (1s Shipment) For Loca Courier Charges (1st Shipment) Lc wt charge (ist Shipment) 10% LC Margia (Ist Shipment) ED 2015-2016 ( Rahman Mostafa Alam & Co. ‘Chartered Accountants ‘Amount (Tk) 20,000.00 28,000.00 8,000.00 100.00 100.00 390.00 2,500.00 2,892.00 19,276.00 481,900.00 507,358.00 30.00 100.00 500.00 11074,000.00 1,074,690.00 Schedule? wa CHEMICALS LIM ITE 13.05.2026 17.05.2036 17.05.2036 17.05.2036 17.05.2036 17.05.2026 17.05.2036 17.05.2026 17.05.2036 29.05.2016 29.05.2036 29.05.2036 29.05.2016 ‘a 8Rahman Mostafa Alam & Co. Chartered Accountants (08. Expenses through Agrani Bank CC (Hypo: \VAT on Charges 2nd Shipment) 9000 12052016 Local Courier Chareges (2nd Shipment) 10000 12062016, ‘Swit Charges (2nd Shipment) 50000 12062016 YVAT on Charges (2nd Shipment) 9000 12052016 local courier Chareges (2nd Shipment) 10000 12062018, ‘Swift Charges (2nd Shipment) 50000 12062016, ‘90% Margin (2nd Shipment) 1126257400 12062018, 1,263,954.00 05. Expenses through Agrani Bank CC (Hypo): YVAT on Charges Gre Shipment) 3000 16062016 For ntocal Courier Charges (3rd Shipment) 10000 16062016, ‘Swit Charges (3rd Shipment) 50000 16062016, 690.00 (0. Expenses through Aerani Bank CC (Hypo: YVAT on Charges (Sr Shipment) 9000 27.05.2016 \Lctocal Courier charges (3rd Shipment) 30000 27062016 ‘Suit charges (34 Shipment) 50000 27062018, 90% LC Margin (3rd Shioment) 4152850000 27.062016, LAT on Charges (ath Shipment) 9000 27.05.2016 Local Courier Charges (Ath Shipment) 10000 77062018, ‘Swit changes (th Shipment) 50000 27062016, {90% © Margin (th Shipment) 313,00000 27.05.2016 4,942,880.00 (7. xponses through CBF Agent M/s. Jamuna Trading Corporation Vide bill No 25/16 dated 05.06 2016 for clearing 43.509 M.Ton Alum Hydrate ‘rom imported against LCNo. 228 1s Shipment) for Inca 02, Import duty: Custom duty @ 5% 001218, 675.05 6038375 VAT @ 15% on duty 191,626.32, ‘Advance income Taxon 1,216 515.05 @ 5% 60,833.75, Clobal Taxes: Income Taxon C&F Commission 65,00 \VAT on C&F Commission 24750 ‘Document Procesing Charges 30.00 314,736.32 02. Dedown Rent 5,967.00 03. Delivery Expenses 3,200.00 04. Mise. Expenses for appraizement 6500.00, 05. Labour charges for delivery 4,200.00 06. Agency commission @ 0.50% on CRF Value T. 1,216,600 6,083.00, Total 340,686.32 [_ratvance paid Te 310,000 00 0606206) (08. expenses through C&F Agent M/s. Jamuna Trading Corporation Vide bill No. 26/16 dated 13.06 2016 fr clearing 58.222 M.Ton Alum Hydeate ‘om Benapole port & imported from India agsinst LC No. 229 (2nd Shipment) 02. Import duty: Custom duty @ 5% 758278 VAT @ 15%6 on duty 225,391.28, ‘Advance Income Tax 7158278 Cloba Taxes Income Taxon CBF Commission 62921 ‘VAT on C&F Commission 94397 ‘Document Processing Charges 30.00 "370,100.32 02. Dodown Rent 8,520.00 03. Delivery Expenses 3,200.00, 04. Misc. Expenses for appeasement 6,500.00, 05. Labour charges fr delivery 4,200.00 06. Agency commission @ 0.50% on CRF Value Tk. 1483,000 7,155.00 “otal 399,675.42 [ Advance ald T8600 on 15.062016 SD CL Micacs cimireo 205-206 =08, Expenses through CBF Agent M/s. Jamuna Trading Corporation Rahman Mostafa Alam & Co. Chartered Accountants Vide bill No. 2716 dated 18.06.2016 for clearing 75.100 M-Ton Alum Hydrate from Benapole port & imported from india against LC No. 228 (1d Shioment) 0, Import duty: Custom duty @ 5% VAT @ 15% on duty ‘Advance income Tak ‘lobo! Taxes Income Tax on C&F Commission VAT on C8 Commission Document Processing Charges 02, Dadown Rent 03. Delivery Expenses 04. Mise. Expenses fr appraisement 05, Labour charges for delivery 06, Agency commission @ 0.50% on CRF Value Tk. 1,845,905.31, Total ‘Advance paid Tk 640,000 on 29.06 2016 10, Expenses through CRF Agent M/s. Jamuna Trading Corporation 92,295.26 290,730.08, 92,295.26, 7837 anes 30.00 477 235.02 7,360.00 3,200.00 6,500.00 4,200.00 9,230.00 507,925.02 Vide bill No. 28/16 dated 28.06.2016 for clearing 14.433 M-Ton Alum Hydrate rom Benapole port & imported from ine agaast LC No. 229 (th shipment) 03, Import duty: Crom coy 65% OTT sevettenondy Sunt Veron cat conan es pealalortaanie a sd or 2 oadom tne se oe taney cae oa ote per eysonact ico Os. ubor orgs te ery casa) heuer conn 50h cn CAF Wha S47 ia bn or rem 2essennee0) ae a soar orc of 778 en ia asec ay TTT a aa wees ro sect Pr beekp teat ster MME sine LE ne camry nneton 50 a na a Siete aa: oe ee comrabeg aareksnnr vues aaotnoay—aetemaaeeanras —aaseonon i tomo utusm “waaay sour omoo sabereestonnestn vss ‘aeson—seampgo.—atuga—_—spape0 baer oe Goch «eke, pnp © aegeanon arene sve ease © soa arama Aacoce camel bis cnc = sos © tamoovonoo | Sanita oy ca ame te car vec chro. a Seen ears ae as ED 2015-2016 ff N E u ty © 7 w Mi ‘a thsRehman Mostafa Alam & Co. ‘Chartered Accountants WATA CHEMICALS LIMITED Schedule of Material in Transit (LC No. 201) ‘Schedules 01 LcNumber& bate 0001/36/03/202, dated 03.05.2016 with ‘gran Bank, Principal Be, Msiheel, Osa, 02 Opening Date 03.05.2016 03 Name of Material Sulphar Lumps 04 Quantity (M.Ton) 500 M.Ton 05 amet Supplier Marvel io Science F2, Dubal, UAE 05 Country Orgln fuss 07 Unit Price per M.Ton Us$ 135 per M.Ton 08 CAF Value in USS ss 65,500 09 Equivelentto Taka Te 5,332,500 30 (a) Quantity shipped in W.Ton& cate (6) CE Value (for quantity shipped) (6) Equivelant to Take (6) Material rived at factory (e) Material arived date DETAILS OF cost oe 01. Expenses in Cash Insurance Premium: Crystal Insurance Company Lt 22,752.00 03.05.2016 Cost of Adesive Stamp 300.00 03.05.2016, swift Charges 500.00 03.05.2016, Cost of LAF, IMP+TM & & Processing Charges 217000 03052016 24,972.00 02, Expenses through Agrani Bank CC (Hypo): \LCother Charges 100.00 03.05.2016 LC Courier Charges 100.00 03.05.2016 VAT on other Charges 390.00 03.05.2016, Lecswitt Charges 2500.00 03.05.2016 VAT on .€ Commision 3200.00 03.05.2016 LCOpening commission 2133000 03.05.2016 20% LC Morgia 53325000 03.05.2016 ‘560,870.00 Total (242) 585,792.00 2015-206 |) WikMicate LimireoRahman Mostafa Alam & Co, ‘Chartered Accountants WATA CHEMICALS LIMITED Schedule of Material in Transit (L.C No. 200) Schedules 01 LcNumber & date 0003/16/01/200, dated 03.05.2016 with ‘Agrani Bank, Principal, Mtihee, Dhak, 02 Opening Date 03.05.2016 03 Nome of Materials Sulphar Lumps 04 Quantity (M.Ton) 500 M.Ton 05 Name of Supplier Teas investments Ld, Tortols, BV 05. County of Origin Russia 07 Unit Price per Ton Us$ 331 perM.Ton 08 CRF Valuein uss US$ 65,500 @ Tk. 79/-per USS (09 Equivelent to Take Tk, 5,178500 30 {6} Quantity shipped in M.Ton & date 498.212 M.Ton (24.05.2016) (0) CAF Value fr quant shipped) s$ 65,396.77 {el Equivelont to Taka Tk 5,166 346.88 {) Matera rived a factory 498.212 M.ton {e) Material arrives cate 23072016, DETAILS OF cost mea 01, Expenses in ash: Insurance Premium: Crystal Insurance Company it 2207800 03052016 Cost of Adesive Stamp 500.00 03.05.2016 Swift Charges 500.00 02.05.2016 Cost of LCAF, IMP & TM Foxm & Processing 1,000.00 03.05.2016 24,078.00 02, Expenses through Agran Bank CC (Hypo) L.cother charges 1000003052016 LCCourier Charges 100.00 03.05.2016 YVAT on Other Charges 328000 03052015, Lcswit charges 250000 03052015, VAT on Commission 3105.00 03052016. Lc opening Commision 2069800 03.05.2016 10% Lc Margin 518,000.00 03.05.2016 Payment to Zalania Hossain: Commissioner 38,000.00 03.05.2016 155,793.00 (03, Expenses through Agran Bank CC (Hypo): ‘Commision paid to Zakir Hossain (50% payment) ibed to Le 145 and 50% debited to LC 200) 17952016, (04. Expenses through Agran Bank CC (Hypo): VAT on Charges 90.00 30.06.2016 Lc Courier Charges 10000 30.06.2016 ‘Swit Charges 500.00 30.06.2016 90% .CMarein 4sig.161.37 30062015, Excess margin refund (1654) 30062015, 4.689,038.83, Total (1424348) 5293,908.88 Ee 2015-2016 | cwemicacs LititeS20 n 2 3 u 35 16 ” 28 29 20 n 2 2 24 25 26 n 28 29 20 a Rahman Mostafa Alam & Co. WATA CHEMICALS LIMITED Chartered Accountants Schedule of Trade Debtors as on 30.06.2016 30.06.2016 (td Debtors No deta) 3,660,307 13,560,307 Rifa Chemicals 520,000 520,000 Ashugon) Power Station ° 353 Basundhara Paper Mil aasi2 aen73 Dhaka WASA 47,700 1,182,500 Saidebad WASA 6A7a.248 3,623,600 Urea Fertilizer Factory Ltd, 34360 297,860 Urea Ferilizer Factory Lt. -Ghorasal 24360 | 34360 ‘Gorashal Fertile Factory Ud : 213,500 Mujbur Rahman, Srigon) 105,000 105,000 Dohae Chemicals 2 5,000 Tanwoet Paper Mills a 75 Younus Paper Mis 358670 358670 Younus Ofst Paper Mills 73540 73540 MR. Chemicals 111385500, 3,256,000 Mostafa Naim Traders 160,000 160,000 Taraque Enterprise 98,020 56,020 ‘Wast Cher international 75,000 752,500 ‘Green Dot Corporation Lt. 209,500 200,000 Islam Trading 30,000 90,000 MIM. Chemicals 2,000 2,000 Ashugong Fetzer Chemicals Company 152,720 - Tasmia Chemical 7 reo Fertizer Factory Ct, 39,136 - Stone Man Trading House 312500 : Baghaban Wastmone Power tation 27,000 : Chitogong Wasa 4,243,800, : Husain chemical 40,000 : Jamun Fertier Company 58.580 : Palash Transpory/Mobarak Munshi 20,000 : Kernaphull Wate Supply Project, 902,500 : Uttara Chemicals 156,000 : Dierence (2923895) - Total 19,470,769, 15,259,698, WATA CHEMICALS LIMITED Schedule of Deposits against Sales as on 31.05.2016 souepute-13 Asad Trading 44,689,800, 2,156,500 Dhaka Chemicals 201,000 11032,000 Haque Traders 15,000 15,000 sharna Chemicals 2,110,000, 11957,500 Mostafa/Nai Traders 1,400,000 11400,000 Utara Chemicals : 1/485,000 NP. Chemicals 15,000 15,000 Progos International 10,000 10,000 fifa Enterprise 3.800 3.00 ‘Shah Amanat Chemicals 10,000 10,000 Shahjahon Chemicals 5,000 5,000 Potash Transport 2 7 Satck Chemical 102,500 Stone Man Trading House . 7 5. Chemicals/Enak Sons . 7 ‘Wat Chem Internationa ‘MM, corporation 2 Doar Chemicals 165,000 : Padma Power Station 27,000 ‘Tasmia chemicals 34400 : Total 18,955,500 7,988;800 2015-206Rahman Mostafa Alam & Co. Chartered Accountants WATA CHEMICALS LIMITED For the period ended 30th June, 2016 Calculation of Deferred Tax Liability Schedule12.09 (0) Carrying cost of fixed arsets WOV Net of Land value & Revaluation increase): 30052016 | 34122015 | 30062035 \Watten down value 3 30.06.2016 (As per Sehedl-A) 621960160 625,108,744 637,280,684 Les: Revaluation neease aorgigas7 aortas aa7a14,37 Pont & Machinery neesse 353,259.63 | [959259869 | [353,259,909 actor Bulding Increase stss.sc2 | 54663662 | 5t003,682 Other sets value Oecense) (203 368) (io3.es)|__ (203,388 zsoison 221200607 229,466,507 tess Land Valve (001181250) (401,181,290) (100783247) "Net Witten Down Value (except Land Value & Revaluation at on 30.06.2016) sizasa7aa —120,09817 328,603,360 (0) TaxtosedFsed Assets WDV as on 0.062016 ‘sper Tax Depreciation Schedule a3 shown below (inching con during yer 2035) Pant & Machinery DRT ASS] [SO RRO TEN | [SORES RB Factory uldng aagox/| 1276324 | 3,501,520 Motor Vehicle & Beye s3979390/| saan | 6230598 Furiture 8 Fiture 454579 05399 53327 Coffe Equipment (inching computer) aeazeao/| 1493005 | aaaz.ai6 Laboratory Eaipment 78232 so027 760,308 Genertor 62760 78450 93,59 Chileon Pay Ground Equipment 2,378,225 e22a1aoe ——7o6t,7e1 70,592,335 (c) Temporary taxable ference (3) 50613329 49497536 5,001,025 (6) Deterre Tax aby on Temporary Taxable eterence() 12660882 sas 5875022 (©) Deferred tax recognised on dopreciation of revaluation ineease forthe year 2016 6 months) fr Tk 478,096 @ 25%) (Note-1.00) saiesea 2698368 3aans2 (1) Deferred ta abity a on 38.06.2016 (de 3379356 16310390 _—_‘17AS5,788 Computation of Tax based WDV of Fixed Assets on 31.12.2015 (as per Tax depreciation schedule) Accounting year 2015-2016 (Asst year 2016-2017) ‘Opening Depreciation RI von Total Valve onWov s 010120156, Pe 20.06.2015 Plant & Machinery 50650794 1883500 52526294 20% 1as05es9 «2077435 Factory Bung zeae 153720230088 20% 725008 1144036 Motor Vehicles & 8: yee soi 1215500 426¢912 20%, 224982 13979520 Furnture & Faure 05,99 S599 10%, 505204545679 ‘fie Equipment inuding Computer) 4,893,005 344600 2037605 10% 203,765 1,833,840 Laboratory Equipment se0272 021s ozoa ‘578,232 Generator 78.450 76450 20% 35680 62,760 Chlren Piaypround equipment 2373335 2378325 10% 237833 2140492 Total ECOSTORE STE] 5-7 on wa SEED 2015-2016 FE MMMM SNM ccnsicacs wWsit ES ‘aWATA CHEMICALS LIMITED ANNUAL REPORT 2015-2016 SOME PHOTOGRAPHS CHEMICALS Limited 1 ASA 2015-2016CHEMICALS LIND (42 fenn at ——= WkMicacs Limiren Eaw CHEMICALS LIMIisit of BUET Student's ANNUAL I eiCHEMICALSOur Probucts WATA CHEMICALS LIMITED ALUMINIUM SULPHATE Sutpnuric ACD) 1a ZINC SULPHATE . Lassa a Basic CuroMe SULPHATE [Macnesium SutPiaTe a ED |) fe WkMicace Limireo fan33 ANNUAL GENERAL WATA CHEMICALS LIMIT 37d ANNUAL VATA CH EMICALS LIM ITED Ronco s pai eects33d ANNUAL GENERAL M ALS LIMITE] ED |; AeeBAE = WikMicacs cimireo rn——> A a an cwemicacs Lintites1718 (3rd FLOOR), MONIPURIPARA, WATA SANGSHAD AVENUE, DHAKA-1215, CHEMICALS PHONE: 58152001, 58155208 Fax: +8602 58156001 LIMITED PROXY FORM We. raenincai raisin being a member of WATA Chemicals Limited, do hereby ppOINE Mr [Meena toattend and vote on my/our behalf at the 34th Annual General Meeting (AGM) of the Company to be held on 19-December; 2016 {a 12:00 AM at Krishibid Institution Bangladesh, Khamarbari, Farmgate, Dhaka and at any adjournment thereof swine ny [out had hme Day of December, 2016. Signature of Prony Samp Signature the Member 2010. TW 3010 No. I notes No. of shares held 01. A member entitled to attend and vote in the AGM may appoint a Proxy to attend and vote on his/her behalf (02. The Proxy Form, duly filed and stamped must be deposited at the Registered Office ofthe Company, not later than 48 (Forty Eight) hours before the ime fixed for the meeting. (03. Signature of the Member(s} must be in accordance with the Specimen Signature recorded with the Company. (04. As per Article of Association ofthe Company, no person shall act asa proxy unless he himself is a shareholder of the company. (Authorised Signtore) sie WATA CHEMICALS LTD. ‘Signature Verified) ees 17/8 (Std FLOOR), MONIPURIPARA, WATA SANGSHAD AVENUE, DHAKA-1215, CHEMICALS PHONE: 5815201, 58155208 Fax +8602 58186001 LIMITED Way een We dohereby record my/our attendance atthe 24th Annual General Meeting (AGM) of the Company being held on 19 December 2016 at 11.00 AM at Krishibid Institution Gangladesh, Khamarbarl, Farmgate, Dhaka, Name of the Member (s)/Proxyzsees. 010 Not Member I 8010 Noo row Holder I No, of shares held Signature of memiber(s\/Proxy Note: Please present this attendance slp atthe registration counter on or before 11:00 AM on the AGM date,