F-201: Financial Accounting and Reporting

Report on
Golden Harvest Agro Industries Limited: A Brief Financial
Analysis

Prepared for:
Md Sajib Hossain, CFA, ACCA
Assistant Professor
Department of Finance
University of Dhaka

Prepared by:
Team Zero
Section: B
23rd Batch
Department of Finance
University of Dhaka

Date of Submission: May 16, 2018

 Group Profile

The report is a combined effort of the members of:

Team Zero
Section: B
23rd Batch
Department of Finance
University of Dhaka

No. Name of the members ID No. Remarks

01. Tripty Mandal 23-011

02. Ahmed Musa Tanvir 21-105

03. Asif Khan 23-130

04. Fatema Jahan 23-198

05. Rezoana Ahmed Rony 23-206

 Letter of Transmittal
May 16, 2018
Md Sajib Hossain
Assistant Professor
Department of Finance
University of Dhaka

Subject: Submission of the report on “Golden Harvest Agro Industries Limited: A Brief
Financial Analysis.”

Dear Sir:

With due respect, hereby, we submit you our report on “Golden Harvest Agro Industries
Limited: A Brief Financial Analysis” for the course of Financial Accounting and Reporting,
with the course code of F-201.
We are glad to have such a great experience of making the report and have your pleasing
guidance in making this report. We sincerely tried our best to follow your instructions and we
had to work really hard to complete the report. However, we hope and expect that if there is
any undeliberate error arises in the report, you will consider it with generosity.
Finally, we would love to express our gratitude for your support and kind consideration.

Sincerely yours

………..…………….
Ahmed Musa Tanvir
On behalf of
Team Zero
Section: B
23rd Batch
Department of Finance
University of Dhaka
 Table of Contents
EXECUTIVE SUMMARY ................................................................................................................................... I
INTRODUCTION ................................................................................................................................................ 1
OBJECTIVES OF THE STUDY ..................................................................................................................................... 1
ORIGIN OF THE STUDY ............................................................................................................................................. 1
METHODOLOGY ......................................................................................................................................................... 1
LIMITATIONS ............................................................................................................................................................. 1
ORGANIZATIONAL OVERVIEW ................................................................................................................................ 1

FINANCIAL POSITION ................................................................................................................................... 3

HOW DO YOU STAND?............................................................................................................................................... 3

FINANCIAL PERFORMANCE .......................................................................................................................4

DO YOU MAKE PROFIT? .......................................................................................................................................... 4

CHANGES IN EQUITY ..................................................................................................................................... 5

DOES THE PROFITABILITY BENEFITS THE OWNERS?......................................................................................... 5

CASH FLOW ......................................................................................................................................................6

DO YOU MAKE ENOUGH CASH? ............................................................................................................................. 6

INTANGIBLE ASSETS ...................................................................................................................................... 8

CONSOLIDATION ............................................................................................................................................9
CONCLUSION.................................................................................................................................................. 12
REFERENCES ................................................................................................................................................... 13
APPENDIX ..................................................................................................................................................... XIV
APPENDIX 1A ......................................................................................................................................................... XIV
APPENDIX 1B .......................................................................................................................................................... XV
APPENDIX 1C ......................................................................................................................................................... XVI
APPENDIX 2A ........................................................................................................................................................ XVII
APPENDIX 2B ...................................................................................................................................................... XVIII
APPENDIX 2C ......................................................................................................................................................... XIX
APPENDIX 3A .......................................................................................................................................................... XX
APPENDIX 3B ......................................................................................................................................................... XXI
APPENDIX 3C ........................................................................................................................................................ XXII
APPENDIX 4A ....................................................................................................................................................... XXIV
APPENDIX 4B ........................................................................................................................................................ XXV
APPENDIX 4C ....................................................................................................................................................... XXVI
 Executive Summary
Golden Harvest Bangladesh is a group of companies operating in many diversified areas.
Golden Harvest Agro Industries Ltd (GHAIL), the largest publicly traded company of the
group operates in the sector of frozen food and cold chain network. It has investments in
subsidiary companies along with its own business.

The financial position of the company is pretty solid. It is successfully maintaining its current
assets and current liabilities ensuring optimum liquidity and maximum profitability. The equity
base is also strong to support additional debt capital.

The company is also making good profit with lucrative profitability rates. The total equity of
the firm is also growing every year. So far, the company is performing very good.

Well, everything has its weaknesses, so does GHAIL. It has a poor ability to generate cash
flow. It is losing cash every year. Its declining cash-in-hand surely will hinder its performance
as well as its financial base.

The firm recognizes R&D costs as assets when it reaches the development stage, following the
rules. It also prepares consolidated financial statements the group composed of itself and its
subsidiary companies.

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 Chapter #1
Introduction

Objectives of the Study

The purpose of the report is to investigate the reasons behind the changes in Golden Harvest
Agro Industries Ltd.’s consolidated and individual statements of financial position. The report
will also recommend types of all tangibles and intangibles asset and their depreciation. The
report looks into the overall annual report of previous years (2016, 2015 and 2014).

Origin of the Study

This report originated as a requirement of our BBA program under the supervision of our
course teacher, Assistant Professor Md Sajib Hossain, CFA, ACCA, from the Department of
Finance, University of Dhaka. For the course ‘Financial Accounting and Reporting’, with the
course code course F-201, we were assigned to prepare a report on the comparative financial
position, financial performance, cash flow and changes in equity of Golden Harvest Agro
Industries Ltd over a period of three years, i.e. 2013-2016. We have been given adequate
instructions by our course teacher about the way of preparing the report. We applied our
classroom knowledge to gather information and to make this report.

Methodology
The report has been prepared using the annual reports of GHAIL for the years of 2013-2014,
2014-2015 and 2015-2016. The financial statements have been collected from the official
website of the company. The statements have been analyzed properly using Microsoft Excel
Spreadsheets.

Limitations
While preparing the report we face some limitations. Some of them are:

 our lack of experience in the financial analysis of an organization;

 lack of any primary data source;
 being unable to unravel any fabrication of financial information.

Organizational Overview
Golden Harvest is Bangladesh’s one of the leading business groups with diversified interests
in Food, Dairy, Commodity, Information Technology, Logistics, Real Estate, Aviation,
Infrastructure Development and Insurance.
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Golden Harvest has been a pioneering force in the frozen food sector in Bangladesh and is the
country’s first company to develop its own Cold Chain network in collaboration with USAID.
Golden Harvest started its journey as a Commodity Brokerage company and later on expanded
its business and is now a leading force behind various business sectors and employing over
5000 People. Golden Harvest is also the Joint Venture partner of Nippon Express, Asia’s largest
logistics company with network in over 480 locations worldwide.

Golden Harvest strongly believes in giving back to the society and runs a CSR program that
includes Bangladesh Human Rights Foundation, TAC Charitable Hospital, Alvina Samdani
Trust and Samdani Art Foundation that organizes Dhaka Art Summit, the largest non-
commercial South Asian art dedicated event.

Golden Harvest Agro Industries Limited engages in growing, procuring, purchasing,

processing, packaging, warehousing, transporting, importing, distributing, and selling
agriculture-based food and food products in Bangladesh. The company offers frozen food
products of vegetables, ready to eat foods, finger foods, and other products, as well as ice cream
and milk. It is also involved in vegetable processing activities. In addition, the company exports
its products to the United States, Canada, Australia, the Middle East, and the European
countries. Golden Harvest Agro Industries Limited was incorporated in 2004 and is
headquartered in Dhaka, Bangladesh.

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 Chapter #2
Financial Position

How do you stand?

If we look into the common sized Statements of Financial Position of GHAIL for the last three
years, we can see that the firm has a pretty solid financial stand. It has adequate Equity to take
the weight of additional debt financing. Current assets are adequate to pay off the current
liabilities. Same thing goes for the Long-term Liabilities. Let’s have a glimpse of the common
sized financial position of the company for 3 years:

Common Size Financial Positions

(particulars are expressed as the percentage of the Total Assets)
Particulars June 30, 2016 June 30, 2015 June 30, 2014

Non-current Assets 68.03% 70.16% 65.04%

Current Assets 31.97% 29.84% 34.96%
Total Assets 100.00% 100.00% 100.00%
Total Equity 66.60% 67.10% 67.07%
Non-current Liabilities 10.44% 6.96% 6.37%
Current Liabilities 22.96% 25.93% 26.56%
(see Appendix 1A, 1B and 1C)

From the common size financial position of the firm, we can see that the firm is maintain a
Equity-to-Total-Assets ratio of about 66% or 67%. It is obvious that 2/3 of the Total Assets
come from Equity and the rest comes from Debt Financing. The financial position seems pretty
strong. Now if we consider liquidity, the company maintain the Current Assets at a level where
it is slightly higher than the Current Liabilities; but not exceeding too much. This level of
liquidity ensures the ability of the firm to pay off its Current Liabilities and also invest the
maximum portion of its Current Assets to maintain higher profitability. Non-current Liabilities
are also at a moderate level. So, we can easily conclude that the firm is maintaining a pretty
strong financial position for the last three years.

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 Chapter #3
Financial Performance

Do You Make Profit?

In the previous chapter we have seen that the firm has been able to maintain a pretty solid
financial position for the last three years. Now the question is whether it is making enough
profit?

Well, if we take a look of the Common Sized Statement of Comprehensive Income (see
Appendix 2A, 2B and 2C), we will find out that the company is doing good in making profit also.
Let’s have a glimpse of the Common Sized Statements of Comprehensive Income of the
company for the last three years:

Common Size Statement of Comprehensive Income

(particulars have been expressed as the percentage of the Total Revenue)
Particulars 2015-2016 2014-2015 2013-2014
Total Revenue 100.00% 100.00% 100.00%
Cost of goods sold (51.29%) (51.28%) (47.66%)
Gross Profit 48.71% 48.72% 52.34%
Net Profit After Tax 18.31% 17.65% 16.66%
Earnings per share (BDT) 1.27 1.12 0.96
(see Appendix 2A, 2B and 2C)

Now, what do we see from the table? It’s obvious that the firm is making a Gross Profit of
about 50% of its Total Revenue and also making a Net Profit After Tax at a range of 16%-18%.
Both of them indicates that the firm is making a very good amount of profit compared to its
Total Revenue. The firm is also allocating its shareholders with a substantial EPS (earning per
share), which is increasing every year. So, we can conclude that the firm is also a profitable
one as well as it is a firm with a strong financial position.

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 Chapter #4
Changes in Equity

Does the Profitability Benefits the Owners?

In the last two chapter we have seen that GHAIL is maintaining a solid financial position with
a sufficient profitability. Do you remember the ultimate goal of a firm? It’s maximizing the
wealth of the shareholders. Now, the question is whether the shareholders of GHAIL are
getting benefitted from the profit it is making. We will see.

Simply, if we look at the Statement of Changes in Equity, we will find our answer. So, let’s
have a look of the Statement of the Changes in Equity for the last three years:

Statements of Changes in Equity

Particulars 2015-2016 2014-2015 2013-2014

Beginning Balance 1,865,693,029 1,888,123,059 1,866,693,755
(restated)
Ending Balance 2,046,413,004 1,929,712,210 1,888,123,059
Net Changes in Equity 180,719,975 41,589,151 21,429,304
(see Appendix 3A, 3B and 3C)

In the table, we can clearly see that the Total Equity is increasing every year at an increasing
rate. So, the owners surely are getting the benefit of high profitability of the firm. We began
this chapter with a question- whether the firm is serving its ultimate goal; maximizing the
wealth of the shareholders. Now, in a simple sense, we surely can conclude that the firm is
serving on behalf of the interest of the shareholders.

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 Chapter #5
Cash Flow

Do You Make Enough Cash?

In the last few chapters we have seen that GHAIL is a firm which has a solid financial stand
along with pretty high profitability. We have also seen that the firm is successfully serving its
ultimate purpose- maximizing the wealth of the shareholders. Now we will test its performance
with another important criteria- the ability to generate cash flow. Does the firm generate enough
cash flow?

To test this, we will look into the Statement of Cash Flows (see Appendix 4A, 4B and 4C). Let’s
have a look:

Statement of Cash Flow

Particulars 2015-2016 2014-2015 2013-2014

Net cash generated from
operating activities 150,774,100 145,439,006 95,714,693

Net cash used in investment

activities (54,130,252) (146,198,931) (166,490,534)

Net cash provided by financing

(117,058148) (218,280,501) (101,682,043)
activities
Net change in cash and cash
(20,414,300) (219,040,426) (172,457,884)
equivalents
Operating cash flow per share 1.67 1.78 1.17
Operating cash flow to total
24.14% 27.94% 20.28%
revenue ratio
(see Appendix 4A, 4B and 4C)

In the table we can see that the firm is spending more cash then it is generating. Its operating
cash flow to total revenue ratio is somewhat around 25%. It has a negative net change in cash
and cash equivalents of three consecutive years. Clearly, cash-in-hand of the firm is decreasing
every year.

Well, in the previous chapters we have seen that the firm is maintaining a satisfactory rate of
profit and a solid financial position, along with the fact that the firm is increasing the value of
its equity. But now we see that the cash outflow is higher than that of the cash inflow.

Page | 6
It gives us a very clear message that:

 the firm is investing in subsidiaries and assets;

 it is paying off its debts.

Well, investing is good. It indicates that future cash flow is coming. But in this case, we cannot
see any increase in the cash flow for three consecutive years. So, investing cash outflow is not
justifying its bad cash performance. On the other hand, paying off all debts is not good either.
Keeping a certain amount of debt capital is important for lowering the cost of capital. So,
finally, we can conclude that the firm is not performing good enough from the angle of
generating cash flow.

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 Chapter #6
Intangible Assets
Well, we know that lots of discretions can be used in recording intangible assets. We will have
a quick overview of the changes of intangible assets of GHAIL over a period of three years.
Let’s have a look:

Intangible Assets

Particulars BDT BDT

ERP software development cost 11,200,000 11,200,000
Balance at June 30, 2014 11,200,000
Opening balance (at July 01, 2014) 11,200,000
Addition during the year* 598,291
Balance at June 30, 2015 11,798,291
Opening balance (at July 01, 2015) 11,798,291
Addition during the year* 10,027,300
Balance at June 30, 2016 21,825,591

*both of the addition during the year indicates the cost incurred for the ERP system
which is in the development stage. (from notes to the Statements of Financial Position)
(Golden Harvest Agro Industries Ltd., 2014)
(Golden Harvest Agro Industries Ltd., 2015)
(Golden Harvest Agro Industries Ltd., 2016)

We can see that the company is recognizing the cost for the ERP system over the years which
is in development stage. The costs in the research stage have been recognized as expenses. So,
we can conclude that the firm recognizes its R&D expenses as assets when it reaches the
development stage.

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 Chapter #7
Consolidation
By now we know that Golden Harvest Agro Industries Limited has investments in subsidiaries
and associates. We will shortly look into the effects of consolidation in the Statement of
Financial Position and Statement of Profit and Loss for the year 2015-2016.

Statement of Financial Position

as for June 30, 2016
The Company Consolidated
ASSETS
Non-current assets 2,090,389,645 3,573,568,441
Property, plant and equipment 920,157,199 2,646,078,977
Leased assets 15,432,766 57,567,310
Intangible assets 21,825,591 57,896,652
Capital work in progress 437,848,248 737,137,698
Investment in subsidiary companies 695,125,841 -
Biological assets - 74,887,804
Investment in associates - -
Current assets 982,489,878 1,470,822,173
Inventories 121,667,949 320,478,072
Advances, deposits and prepayments 416,619,420 493,053,645
Trade & other receivables 431,920,059 622,758,844
Cash and cash equivalents 12,282,450 34,531,612
Total assets 3,072,879,523 5,044,390,614

Equity and Liabilities

Shareholders' equity 2,046,413,005 2,046,413,005
Share Capital 900,900,000 900,900,000
Share Premium 326,866,054 326,866,054
Revaluation surplus 298,356,679 298,356,679
Retained Earnings 520,290,272 520,290,272
Non-controlling interest - 9,213,602
Total Equity 2,046,413,005 2,055,626,607
Non-current Liabilities 320,898,775 1,283,754,501
Long term loans 260,348,239 1,122,438,336
Deferred tax liability 59,838,515 126,711,069
Lease obligations 712,021 34,605,096
Current Liabilities 705,567,743 1,705,009,506
Account and other payables 42,371,273 182,443,676
Accruals and provisions 112,464,529 223,704,924
Short term loans 450,761,662 1,064,755,756
Current portion of long term loans 99,453,243 224,861,349
Current portions of lease obligations 517,036 9,243,801
Total Equity and Liabilities 3,072,879,523 5,044,390,614
(Golden Harvest Agro Industries Ltd., 2016)

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 Statement of Comprehensive Income
for the year ended at June 30, 2016
The Company Consolidated
Revenue 624,438,657 1,427,568,390
Cost of goods sold (320,284,720) (773,012,955)
Gross profit 304,153,937 654,555,435

Operating expense (97,489,945) (235,091,715)

Administrative expenses (41,536,179) (62,374,698)
Selling band distribution expenses (55,953,766) (172,717,017)
Fair value adjustments of biological
- 1,903,959
assets
Other operating income 14,674,032 60,656,502
Profit from operation 221,338,024 482,024,181

Financial income 385,895 2,859,127

Financial expenses (90,840,300) (247,796,255)
Net profit from operation 130,883,619 237,087,053

Provision for worker's profit (6,230,060) (11,972,717)

participation fund
Income from before share of non-
124,653,559 225,114,336
consolidated companies and income tax
Share of profit/(loss)from associates (300,000) (300,000)
Net profit before tax 124,353,559 224,814,336

Income tax expenses (9,988,949) (49,273,139)

Net profit after tax 114,364,610 175,541,197
- 3,226,798
Non-controllable interest
Net profit after tax attributable to
114,364,610 178,767,995
ordinary shareholders
- -
Other comprehensive income
Share of profit from subsidiaries 64,403,385 -
Total comprehensive income 178,767,995 178,767,995
Number of share used to calculate EPS 90,090,000 90,090,000
Earnings per share (EPS) 1.27 1.98
(Golden Harvest Agro Industries Ltd., 2016)

If we carefully look into the Statement of Financial Position and the Statement of
Comprehensive Income, we will find that following changes are taking place when we are
preparing consolidated statements from the statements of the individual company:

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In the Statement of Financial Position:
 All the assets of subsidiaries are being added to the assets of the company;
 All the liabilities of the subsidiaries are being added to the existing liabilities of the
company;
 Investment in subsidiaries is being removed;
 The total assets of the consolidated identity exceeding the sum of total liabilities of the
consolidated identity and the equity of the principal company is termed as the equity
attributable to the non-controlling interest.
In the Statement of Comprehensive Income:
 All the revenues and expenses of the company and the subsidiaries are added together;
 Effects of intra-group transactions are abolished;
 A portion of the net profit is attributed to the minority owners which is proportional to
their ownership in the subsidiaries;

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 Conclusion
After this brief financial analysis of Golden Harvest Agro Industries Limited, we can sum up
that the company has quite a solid financial position and making profit at a very good rate. The
equity of the shareholders in also increasing every year. But the company has scope of
betterment in the generation of cash flow. Cash is flowing out more than it is flowing in, which
can be proved to be perilous for the company. If the company can improve in this sector, it can
sustain longer as a profit making strong-based company.

In this brief analysis we have also seen that the company records R&D costs as assets when it
reaches the development stage, which justifies our classroom learnings. We also have seen how
consolidating the statements of the subsidiary companies with the holding company changes
the items of the statements of the holding company.

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 References
Golden Harvest Agro Industries Ltd. (2014, June 30). Golden Harvest Reports. Retrieved May
14, 2018, from Golden Harvest BD: http://www.goldenharvestbd.com/wp-
content/uploads/2017/08/GHAIL-Annual-Report-2014.pdf

Golden Harvest Agro Industries Ltd. (2015, June 30). Golden Harvest Reports. Retrieved May
14, 2018, from Golden HArvest BD: http://www.goldenharvestbd.com/wp-
content/uploads/2017/08/GHAIL-Annual-Report-2015.pdf

Golden Harvest Agro Industries Ltd. (2016, June 30). Golden Harvest Reports. Retrieved May
14, 2018, from Golden Harvest BD: http://www.goldenharvestbd.com/wp-
content/uploads/2017/11/GHAIL-Annual-Report-2016.pdf

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 Appendix

Appendix 1A
Common Size Statement of Financial Position
as at June 30, 2016

ASSETS
Non-current assets 2,090,389,645 68.03%
Property, plant and equipment 920,157,199 29.94%
Leased assets 15,432,766 0.50%
Intangible assets 21,825,591 0.71%
Capital work in progress 437,848,248 14.25%
Investment in subsidiary companies 695,125,841 22.62%
Biological assets - 0.00%
Investment in associates - 0.00%
Current assets 982,489,878 31.97%
Inventories 121,667,949 3.96%
Advances, deposits and prepayments 416,619,420 13.56%
Trade & other receivables 431,920,059 14.06%
Cash and cash equivalents 12,282,450 0.40%
Total assets 3,072,879,523 100.00%

Equity and Liabilities

Shareholders' equity 2,046,413,005 66.60%
Share Capital 900,900,000 29.32%
Share Premium 326,866,054 10.64%
Revaluation surplus 298,356,679 9.71%
Retained Earnings 520,290,272 16.93%
Non-controlling interest - 0.00%
Non-current Liabilities 320,898,775 10.44%
Long term loans 260,348,239 8.47%
Deferred tax liability 59,838,515 1.95%
Lease obligations 712,021 0.02%
Current Liabilities 705,567,743 22.96%
Account and other payables 42,371,273 1.38%
Accruals and provisions 112,464,529 3.66%
Short term loans 450,761,662 14.67%
Current portion of long term loans 99,453,243 3.24%
Current portions of lease obligations 517,036 0.02%
Total Equity and Liabilities 3,072,879,523 100.00%

Nubmer of shares to calculate NAV 90,090,000

NAV per share 22.72

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Appendix 1B
Common Size Statement of Financial Position
as at June 30, 2015

ASSETS
Non-current assets 2,017,582,155 70.16%
Property, plant and equipment 900,601,983 31.32%
Leased assets 18,337,212 0.64%
Intangible asset 11,798,291 0.41%
Capital work in progress 438,369,647 15.24%
Investment in subsidiary company 438,369,647 15.24%
Current assets 858,248,717 29.84%
Inventories 92,858,670 3.23%
Advances, deposits and prepayments 398,468,421 13.86%
Trade & other receivables 334,224,876 11.62%
Cash and cash equivalents 32,696,750 1.14%
TOTAL ASSETS 2,875,830,872 100.00%

EQUITY AND LIABILITIES

Shareholders' equity 1,929,712,210 67.10%
Share capital 819,000,000 28.48%
Share premium 408,766,054 14.21%
Revaluation surplus 303,525,145 10.55%
Retained earnings 398,421,011 13.85%
Non-controlling interest 0 0.00%
Non-current liabilities 200,286,272 6.96%
Long term loans 107,499,411 3.74%
Deferred tax liability 91,572,365 3.18%
Lease obligations 1,214,496 0.04%
Current liabilities 745,832,390 25.93%
Accounts and other payables 23,722,811 0.82%
Accruals and provisions 73,683,502 2.56%
Short term loans 607,449,597 21.12%
Current portion of long term loans 40,125,462 1.40%
Current portion of lease obligations 851,018 0.03%
Total equity and liabilities 2,875,830,872 100.00%

Number of share used to calculate NAV 81,900,000

Net asset value per share 23.56

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Appendix 1C
Common Size Statement of Financial Position
as at June 30, 2014

Assets BDT
Non-current assets 1,830,863,739 65.04%
Property, plant and equipment 728,124,907 25.86%
Leased assets 18,080,043 0.64%
Intangible asset 11,200,000 0.40%
Capital work in progress 478,038,445 16.98%
Investment in subsidiary company 595,420,344 21.15%
Current assets 984,243,645 34.96%
Inventories 73,897,614 2.63%
Advances, deposits and prepayments 335,519,222 11.92%
Trade & other receivables 323,089,633 11.48%
Cash and cash equivalents 251,737,176 8.94%
Total assets 2,815,107,384 100.00%

Equity and liabilities

Shareholders' equity 1,888,123,059 67.07%
Share capital 819,000,000 29.09%
Share premium 408,766,054 14.52%
Revaluation surplus 288,465,361 10.25%
Retained earnings 371,891,644 13.21%
Non-controlling interest 0.00%
Total equity 1,888,123,059 67.07%
Non-current liabilities 179,372,781 6.37%
Long term loans 75,520,147 2.68%
Deferred tax liability 103,311,760 3.67%
Lease obligations 540,874 0.02%
Current liabilities 747,611,544 26.56%
Accounts and other payables 33,090,904 1.18%
Accruals and provisions 51,562,062 1.83%
Short term loans 640,907,260 22.77%
Current portion of long term loans 16,887,333 0.60%
Current portion of lease obligations 5,163,985 0.18%

Total equity and liabilities 2,815,107,384 100.00%

Number of share used to calculate NAV 81,900,000

Net asset value per share 23.05

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Appendix 2A
Common Size Statement of comprehensive Income
For the year ended at June 30, 2016

Revenue 624,438,657 100.00%

Cost of goods sold (320,284,720) -51.29%
Gross profit 304,153,937 48.71%
(97,489,945) -15.61%
Operating expense
Administrative expenses (41,536,179) -6.65%
Selling band distribution expenses (55,953,766) -8.96%
Fair value adjustments of biological assets - 0.00%
Other operating income 14,674,032 2.35%
Profit from operation 221,338,024 35.45%
385,895 0.06%
Financial income
Financial expenses (90,840,300) -14.55%
Net profit from operation 130,883,619 20.96%

Provision for worker's profit participation (6,230,060) -1.00%

fund
Income from before share of non-
124,653,559 19.96%
consolidated companies and income tax
Share of profit/(loss)from associates (300,000) -0.05%
Net profit before tax 124,353,559 19.91%
(9,988,949) -1.60%
Income tax expenses
Net profit after tax 114,364,610 18.31%

Other comprehensive income 64,403,385 10.31%

Share of profit from subsidiaries 64,403,385 10.31%
Total comprehensive income 178,767,995 28.63%
90,090,000
Number of share used to calculate EPS
Earnings per share (EPS) 1.27

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Appendix 2B
Common Size Statement of Comprehensive Income
For the year ended at June 30, 2015

Revenue 520,563,813 100.00%

Cost of goods sold -266,945,082 -51.28%
Gross profit 253,618,731 48.72%
-89,257,976 -17.15%
Operating expenses
Administrative expenses -38,941,704 -7.48%
Selling and distribution expenses -50,316,272 -9.67%
Other operating income 50,404,368 9.68%
Profit from operation 214,765,123 41.26%
Finance income 5,824,435 1.12%
Finance cost -105,632,793 -20.29%
Net profit from operation 114,956,765 22.08%
-5,471,942 -1.05%
Provision for workers' profit participation fund
Net profit before tax 109,484,823 21.03%
Income tax expenses -17,617,161 -3.38%
Net profit after tax 91,867,662 17.65%
9,167,750 1.76%
Other comprehensive income
Share of profit from subsidiary 9,167,750 1.76%
Total comprehensive income 101,035,412 19.41%
81,900,000
Number of share used to calculate EPS
Earnings per share (EPS) 1.12

Page | xviii
Appendix 2C
Common Size Statement of Comprehensive Income
For the year ended at June 30, 2014

Revenue 472,077,729 100.00%

Cost of goods sold -224,977,291 -47.66%
Gross profit 247,100,438 52.34%

Operating expenses -92,542,746 -19.60%

Administrative expenses -42,295,539 -8.96%
Selling and distribution expenses -50,247,207 -10.64%
Other operating income 14,886,311 3.15%
Profit from operation 169,444,003 35.89%

Finance income 38,415,224 8.14%

Finance cost -83,446,314 -17.68%
Net profit from operation 124,412,913 26.35%

Provision for workers' profit participation fund -5,922,054 -1.25%

Net profit before tax 118,490,859 25.10%
-39,832,893 -8.44%
Income tax expenses
Net profit after tax 78,657,966 16.66%

Other comprehensive income 18,516,713 3.92%

Share of profit from subsidiary 18,516,713 3.92%
Total comprehensive income 97,174,679 20.58%

Number of share used to calculate EPS 81,900,000

Earnings per share (EPS) 0.96

Page | xix
Appendix 3A
Consolidated Statement of Changes in Equity
For the year ended at June 30, 2016
Individual Firm Consolidated
Particulars Share capital Share premium Revaluation surplus Retained earnings Total Share capital Share premium Revaluation surplus Total
Retained earnings
Balance as at 01.07.2014 288,465,361 288,465,361
819,000,000 408,766,054 371,891,644 1,888,123,059 819,000,000 408,766,054 371,891,644 1,888,123,059
Adjustment for Under Provision for
(48,919,894) (48,919,894)
Income Tax liability
(48,919,894) (48,919,894)
Restated Balance as at 01.07.14 288,465,361 288,465,361
819,000,000 408,766,054 322,971,750 1,839,203,165 819,000,000 408,766,054 322,971,750 1,839,203,165
Deferred tax adjustment on WDV of
20,424,335 20,424,335
revalued assets 20,424,335 20,424,335
Adjustment for deferred tax on
revaluation surplus 2,029,404 2,029,404 2,029,404 2,029,404
Depreciation adjustment on revaluation
(5,364,551) (5,364,551)
surplus 5,364,551 5,364,551
Payment of cash dividend
(81,900,000) (81,900,000) (81,900,000) (81,900,000)
Net profit after tax
76,768,375 76,768,375 85,875,335 85,875,335
Share of non controlling interest
60,790 60,790
Share of subsidiary company
9,167,750 9,167,750
Balance as at 30.06.2015 303,525,145 303,525,145
819,000,000 408,766,054 334,401,830 1,865,693,029 819,000,000 408,766,054 334,401,830 1,865,693,029
Balance as at 01.07.2015 303,525,145 303,525,145
819,000,000 408,766,054 334,401,830 1,865,693,029 819,000,000 408,766,054 334,401,830 1,865,693,029
Deferred tax adjustment on revaluation
surplus 1,951,980 1,951,980 1,951,980 1,951,980
Depreciation adjustment on revaluation
surplus (5,168,466) 5,168,466 (5,168,466) 5,168,466
Issuance of Stock dividend
81,900,000 (81,900,000) 81,900,000 (81,900,000)
Net profit after tax
114,364,610 114,364,610 175,541,197 175,541,197
Share of non controlling interest
64,403,385 64,403,385
Share of subsidiary company
3,226,799 3,226,799
Balance as at 30.06.2016 298,356,679 298,356,679
900,900,000 326,866,054 520,290,271 2,046,413,004 900,900,000 326,866,054 520,290,272 2,046,413,005

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 Appendix 3B
Consolidated Statement of Changes in Equity
For the year ended at June 30, 2015

Individual Firm Consolidated

Share Share Revaluation Retained Share Share Revaluation Retained
Particulars Total Total Total
capital Premium Surplus Earnings capital Premium Surplus Earnings
Balance as at 01.07.2013 780,000,000 408,766,054 293,889,999 384,037,702 1,866,693,755 780,000,000 408,766,054 293,889,999 384,037,702 1,866,693,755
Deferred tax adjustment on revaluation
2,254,625 2,254,625 2,254,625 2,254,625
surplus
Depreciation adjustment on revaluation
-5,424,638 5,424,638 -5,424,638 5,424,638
surplus
Payment of cash dividend -78,000,000 -78,000,000 -78,000,000 -78,000,000
Issuance of bonus share 39,000,000 -39,000,000 39,000,000 -39,000,000
Net profit after tax 78,657,966 78,657,966 97,174,716 97,174,716
Share of non-controlling interest 18,516,713 18,516,713 -37 -37
Balance as at 30.06.2014 819,000,000 408,766,054 288,465,361 371,891,644 1,888,123,059 819,000,000 408,766,054 288,465,361 371,891,644 1,888,123,059

Balance as at 01.07.2014 819,000,000 408,766,054 288,465,361 371,891,644 1,888,123,059 819,000,000 408,766,054 288,465,361 371,891,644 1,888,123,059
Deferred tax adjustment on WDV of
20,424,335 20,424,335 20,424,335 20,424,335
revalued assets
Deferred tax adjustment on revaluation
2,029,404 2,029,404 2,029,404 2,029,404
surplus
Depreciation adjustment on revaluation
-5,364,551 5,364,551 -5,364,551 5,364,551
surplus
Payment of cash dividend -81,900,000 -81,900,000 -81,900,000 -81,900,000
Net profit after tax 91,867,662 91,867,662 100,974,622 100,974,622
Share of non-controlling interest 60,790 60,790
Share of profit from subsidiary 9,167,750 9,167,750
Balance as at 30.06.2015 819,000,000 408,766,054 303,525,145 398,421,011 1,929,712,210 819,000,000 408,766,054 303,525,145 398,421,011 1,929,712,210

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 Appendix 3C
Consolidated Statement of Changes in Equity
For the year ended at June 30, 2014

Individual Firm Consolidated

Share Share Revaluation Retained Share Share Revaluation Retained
Particulars Total Total Total
capital Premium Surplus Earnings capital Premium Surplus Earnings
Balance as at 01.07.2012 350,000,000 219,364,973 388,907,356 958,272,329 350,000,000 219,364,973 388,907,356 958,272,329
Adjustment for deferred tax on revaluation
-62,716,769 -62,716,769
surplus
The company -42,311,406 -42,311,406
Share of subsidiary company -20,405,322 -20,405,322
Adjustment for deferred tax on fixed assets -28,809,690 -28,809,690
The company -17,854,109 -17,854,109
Share of subsidiary company -10,955,559 -10,955,559
Adjustment of non-controlling interest for
41 22 63
deferred tax
Restated balance as at 01.07.2012 350,000,000 156,648,245 360,097,688 866,745,933 350,000,000 156,648,245 360,097,688 866,745,933
Depreciation adjustment on revaluation
-5,743,848 5,743,848 -5,743,848 5,743,848
surplus
Adjustment of non-controlling interest for
18 18
deferred tax
Issuance of ordinary share (IPO) 300,000,000 408,766,054 708,766,054 300,000,000 408,766,054 708,766,054
Issuance of bonus share 130,000,000 -130,000,000 130,000,000 -130,000,000
Net profit after tax 108,307,380 108,307,380
Share of subsidiary company 39,888,786 39,888,786 148,196,246 148,196,246
Adjustment for deferred tax on revaluation
-37,105,315 -37,105,315
surplus
The company -27,959,702 -27,959,702
Share of subsidiary company -9,145,595 -9,145,595
Revaluation surplus on fixed asset during
180,091,001 180,091,001
the year
The company 128,671,642 128,671,642

Page | xxii
Share of subsidiary company 51,419,256 51,419,256
Share of non-controlling interest -103 -80 -183
Balance as at 30.06.2013 780,000,000 408,766,054 293,889,999 384,037,702 1,866,693,755 780,000,000 408,766,054 293,889,999 384,037,702 1,866,693,755
Balance as at 01.07.2013 780,000,000 408,766,054 293,889,999 384,037,702 1,866,693,755 780,000,000 408,766,054 293,889,999 384,037,702 1,866,693,755
Deferred tax adjustment on revaluation
2,254,625 2,254,625 2,254,625 2,254,625
surplus
Depreciation adjustment on revaluation
-5,424,638 5,424,638 -5,424,638 5,424,638
surplus
Payment of cash dividend -78,000,000 -78,000,000 -78,000,000 -78,000,000
Issuance of bonus shares 39,000,000 -39,000,000 39,000,000 -39,000,000
Net profit after tax 78,657,966 78,657,966 97,174,716 97,174,716
Share of non-controlling interest -37 -37
Share of profit from subsidiary 18,516,713 18,516,713
Balance as at 30.06.2014 819,000,000 408,766,054 288,465,361 371,891,644 1,888,123,059 819,000,000 408,766,054 288,465,361 371,891,644 1,888,123,059

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Appendix 4A
Consolidated Statement of Cash Flow
For the year ended at June 30, 2016

Individual Firm Consolidated

Cash flow from operating activities
Collections from customers 641,321,928 1,312,171,429
Payments for operating costs & other expenses (481,389,873) (813,630,903)
Tax paid (9,157,955) (15,426,247)
Net cash generated from operating activities 150,774,100 483,114,279

Cash flows from investing activities

Acquisitions of property, plant and equipment (53,480,710) (626,950,843)
Acquisitions of intangible assets (10,027,300) (45,554,824)
Acquisitions of leased assets (37,936,680)
Capital work in progress (8,412,390) (172,459,117)
Investment in associates (300,000) (300,000)
Advance finance to contract farmers & others 18,090,148 117,231,096
Acquisitions of Biological assets (72,983,845)
Net cash used in investing activities (54,130,252) (838,954,213)

Cash flows from financing activities

Payment against finance lease (836,457) 35,966,246
Borrowings from banks/financial
(25,381,391) 503,909,380
institutions/Sister concern
Payment of cash dividend
Investment in subsidiaries
Finance cost paid (90,840,300) (247,796,255)
Proceed from issuing non-controlling share
Net cash provided by financing activities (117,058,148) 292,079,371

Net changes in cash and cash equivalents (20,414,300) (63,760,563)

Cash and cash equivalents at the beginning of the 32,696,750 98,292,175

year
Cash and cash equivalents at the end of the
12,282,450 34,531,612
year
90,090,000 90,090,000
Number of share used to calculate NOCFPS
Operating cash flow per share 1.67 5.36

Page | xxiv
Appendix 4B
Consolidated Statement of Cash Flow
For the year ended at June 30, 2015

Individual Firm Consolidated

Cash flows from operating activities
Collections from customers 586,569,662 881,571,209
Payments for operating costs & other expenses -420,508,179 -678,249,384
Tax paid -20,622,477 -30,684,316
Net cash generated from operating activities 145,439,006 172,637,509

Cash flows from investing activities

Acquisitions of property, plant and equipment -142,341,023 -512,267,280
Acquisitions of intangible assets -598,291 -1,179,666
Acquisitions of leased assets -173,867 -607,378
Capital work in progress -28,397,861 -182,182,206
Short term investment
Advance finance to contract farmers & others 25,312,112 74,968,013
Net cash used in investing activities -146,198,931 -621,268,517

Cash flows from financing activities

Payment against finance lease -5,639,345 -6,277,951
Borrowings from banks/financial institutions 12,391,637 368,350,889
Payment of cash dividend -81,900,000 -81,900,000
Proceed from issuing non-controlling share 12,500,000
Investment in subsidiaries -37,500,000
Finance cost paid -105,632,793 -170,263,268
Net cash provided by financing activities -218,280,501 122,409,670
-219,040,426 -326,221,338
Net changes in cash and cash equivalents
Cash and cash equivalents at the beginning of the year 251,737,176 424,513,513
Cash and cash equivalents at the end of the year 32,696,750 98,292,175

Number of share used to calculate NOCFPS 81,900,000 81,900,000

Operating cash flow per share 1.78 2.11

Page | xxv
 Appendix 4C
Consolidated Statement of Cash Flow
For the year ended at June 30, 2014

Individual
Consolidated
Firm
Cash flows from operating activities
Collections from customers 497,866,950 699,004,281
Payments for operating costs & other expenses -359,913,117 -428,814,553
Tax paid -42,239,140 -69,266,839
Net cash generated from operating activities 95,714,693 200,922,889

Cash flows from investing activities

Acquisitions of property, plant and equipment -102,867,679 -142,282,392
Acquisitions of intangible assets -11,200,000 -11,200,000
Capital work in progress -173,539,269 -645,475,894
Short term investment 100,000,000 100,000,000
Acquisitions of leasehold assets -369,224
Advance finance to contract farmers & others 21,116,414 -56,006,476
Net cash used in investing activities -166,490,534 -812,165,039
Cash flows from financing activities
Payment against finance lease -6,000,009 -6,221,266
Borrowings from banks/financial institutions 315,763,780 784,469,271
Share premium
Payment of cash dividend -78,000,000 -78,000,000
Investment in subsidiaries -249,999,500
Issuance of ordinary share 500
Finance cost paid -83,446,314 -89,540,165
Net cash provided by financing activities -101,682,043 610,708,340
Net changes in cash and cash equivalents -172,457,884 -533,810
Cash and cash equivalents at the beginning of the year 424,195,060 425,047,323
Cash and cash equivalents at the end of the year 251,737,176 424,513,513

81,900,000 81,900,000
Number of share used to calculate NOCFPS
Operating cash flow per share 1.17 2.45

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