Auditor’s Report & Audited Financial Statements Of BSRM STEELS LIMITED. For the year ended June 30, 2019.rena rn svat A.QASEM& CO, iS eteiten oe oe eae Independent Auditor’s Report To the Shareholders of BSRM Steels Limited Report on the Audit of the Financial Statements Opinion We have audited the financial statements of BSRM Steels Limited(the Company), which comprise the statement of financial position as at 30June, 2019, and the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information, In our opinion, the accompanying financial statements give true and fair view, in all material respects, of the financial position of the Company as at 30June, 2019, and of its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRS). Basis for opinion We conducted our audit in accordance with Intemational Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the International thies Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code) together with the ethical requirements that are relevant to our audit of the financial statements in Bangladesh, and we hhave fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Key audit matters Key audit matters are those matters that, in our professional judgment, were of most significance in the audit of the financial statements for 2018-19. These matters were addressed in the context of the audit of the financial statements as a Whole, and in forming the auditor's opinion thereon, and we do not provide a separate opinion tn these matters. For each matter below, our description of how our audit addressed the matter is provided in that content ‘We have fulllled the responsibilities described in the Auditor’s responsibilities for the audit of the financial statements section of our report, including in relation to these matters. Accordingly, our audit included the Performance of procedures designed to respond to our assessment of the risks of material misstatement of the financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying financial statements EY EY rales tothe global orgeniztion, andlor one ot more of the independent member firms of Ernst & Young Glos! Limited mening wongKey Audit Matter How our audit addressed the key audit matter ‘The impact of the initial application of IFRS 15 on ‘the appropriateness of revenue recognition and related disclosures - See note # 3.12 & #26 to the financial statements. Revenue of BD 61.060 billion is recognized in the income statement of BSRM Steels Limited for the ‘year ended June 30, 2019. This material item is subject to considerable inherent risk due to the complexity of the systems necessary for properly recording and identiying revenue and the high number of, transactions from multiple region from which revenue is being recognized. Against this background, the proper application of the accounting standards is considered to be complex and toa certain extent based | ‘on estimates and assumptions made by management, In light ofthe fact thatthe high degree of complexity, ‘we assessed the Company's processes and controls for recognizing revenue as part of our audit. Furthermore, in order to mitigate the inherent risk in this audit area, ‘our audit approach included testing of the controls and substantive audit procedures, ineluding: We evaluated the Company's accounting policies peeraining 10 revenue recognition and assessed compliance withthe policies in terms of IFRS 15 Revenue from Contracts with Customers. » We identified and tested controls related to revenue recognition and our audit procedure focused on assessing the invoicing and ‘measurement systems up to entries in the general ledger. Examining customer invoices and receipts ‘of payment on a sample basis, » We assessed that the contractual positions and revenue for the year were presented and disclosed in the financial statements Key Audit Matter Tow our audit addressed the key audit matter Accuracy and completeness of disclosure of related | party transactions - See note #10, #208 #38 to the | financial statements, We identified the accuracy and completeness of | disclosure of related party transactions as set out in respective notes to the financial statements as a key audit matter due to the high volume of business transactions with related parties during the year ended 30June 2019. Our procedures in relation to the accuracy and completeness of disclosure of related parties’ transactions included: > Obiaining an understanding of the Company's processes and procedures in respect of identifying felated parties; approval and recording of related party transactions including how management etermines all transactions) balances with related parties are determined at arm's length and entered into in the normal course of business and further fully diselosed in the financial statement, > We tested, on a sample basis, related party transaction’ with the underlying contracts and other documents and for appropriate authorization and epproval for such transaction. We read minutes of shareholder meetings, board meetings and minutes of meetings of those charged with governance in connection with transaction with related parties effected during the Evaluating the completeness of the disclosures through review of statutory information, books and records and other documents obtained during the course of our audit.Other informati included in the Company's 2018-19 Annual Report “Management is responsible forthe other information. The other information comprises the information included in the Annual Report, but does not include the Financial Statements and our Auditor's Report thereon. ‘Our opinion on the Financial Statements of the Company does not cover the other information and we do not ‘express any form of assurance conclusion thereon, In connection with our audit ofthe nancial statements ofthe Company, our responsibilty isto read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements of the Company and the Group of our knowledge obtained in the auditor otherwise appears to be ‘materially misstated, If, based on the work we have performed on the other information obtained prior to the date of the auditor's report, we conclude that there is a material misstatement of this other information, we are required to report that fact, Based on the information read and reviewed, we have nothing to report in this regard, Respons ies of Management and Those Charged with Governance for the Financial Statements ‘Management is responsible for the preparation and fair presentation of the financial statements in accordance with IFRSs, the Companies Act 1994, the Securities and Exchange Rules 1987 and other applicable laws and regulations and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing the Company's ability to continue as a going concem, disclosing, as applicable, matters related to going concern and using the going concer basis of accounting Unless management cither intends to liquidate the Company or to cease operations, (or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Company's financial reporting process. Auditor's responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our ‘pinion, Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arse from fraud or error and are considered material if, individually or inthe aggregate, they could reasonably be expected to influence the evonomic decisions of users taken on the basis ofthese financial statements. ‘As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit, We also: Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or eor, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The isk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, mistepresentations, or the override of internal conte Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are ‘appropriate in the circumstances, but not forthe purpose of expressing an opinion on the effectiveness of the ‘Company's internal contro. Evaluate the appropriateness of accounting polices used and the reasonableness of accounting estimates and related disclosures made by management, Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may ‘ast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a v‘material uncertainty exists, we are required to draw attention in our auditor's report tothe related disclosures in the financial statements or, ifsuch disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern. Evaluate the overall presentation, structure and content ofthe financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation, ‘We communicate with those charged with governance regarding, among other matters, the planned scope and. timing of the audit and significant audit findings, including any significant deficiencies in internal control that ‘we identify during our audit We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that ‘may reasonably be thought to bear on our independence, and where applicable, related safeguards From the matters communicated with those charged with governance, we determine those matters that were of ‘most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected 10 ‘outweigh the public interest benefits of such communication, Report on other legal and regulatory requirements In accordance with the Companies Act 1994 and the Securities and Exchange Rules 1987, we also report the following: i) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit and made due verification thereof, ii) In our opinion, proper books of account as required by law have been kept by the company so far as it appeared from our examination of these books; ‘The statement of financial position and statement of profit or loss and other comprehensive income dealt with by the report are in agreement with the books of account and returns; and iv) The expenditure incurred was for the purposes of the company’s business. A. Qasem & Co. Chartered Accountants Place: Chattogram Date : September 16, 2019,BSRM STEELS LIMITED Statement of Financial Post ‘Asat June 30,2019 As at 30 June 019 ASSETS: Take Take Now-Current Assets: Propet, plant & equipment 4 -23,142,546283 —_9,563,331,987 Imangible Assess 5 48,503,285 27,629,844 Capita work-in-progress 6 Ms804831 2,841, 135.683 Investment in associates 1 347,000,041 __1,562.913,138 ‘Total Now-Current Assets 26,793,863, 440_ —13,995,010,582 (Current Assets Inventories 8 14.980.097.612—14,481,900.688, Trade & Other Receivables 9 10,131,693.870 —— 6,460,423,187 Due fom related companies 10 8.505,984.818 6,970.340.583, ‘Advances, deposits and prepayments " 3976716412 2,954.281,030 Short Teem Investments 2 495,102,221 323,908,621 (Cash and cash equivalents a Total Current Assets Total Assets 45,680,555 312 nourry: Share Capital 1402 3,789,528,000 _3,417,780,000, Revaluation Reserve 7940930.965 —2,613.882,170, Retained Earnings 9.196,763,654_ _6.777,298.362 Total Equity 30,897.219,619 900532 ‘LIABILITIES Now-Current Liabilities: {Long term oa 1503 9,067,948,647——_+1,777,885,668 Defined benefit obligations Gratuity 16 164,439,863, 136,970,002 Defered tax abies 7 7301395,087 57.5. ‘Total Non-Curreat Lis T1.022.783.857_ __3.072.279.686, ‘Current Liabil ‘rade payable 8 3361610352 5,767,311,018, Shor term loan 19 20.457,420,060_19.295.024,003, ‘Curremt portion of Long term loans 1802 2.294041,868——_1,093,625.713, Duct related companies 20 4924790,19¢ —1,340.077.748, Libis for expenses 2 011,064,188 4461 123854 Provision for income tax 2 732845,493 957,113,965 Provision for WPPF and Weifore Fund 23 107,383,636, 108,253,966, Other Kailties 4 293,182,726 289,494,523 Contact abilities 2s 708,843,109 286,350,304 Total Current Lisbilites SS888.181,620_ _29,799.375,004 ‘Total Liabilities $4.910.965,77_ —32,871,654,780 Equity & Liabilities GRB.IS4 796 15.80.5553 The accompanying notes 1 to 44 f ofthese financial statements, —, Matvatte rector od ary A. Qasem & Co. Chartered Accountants Place: Chatogram Date : September 16,2019,BSRM STEELS LIMITED Statement of Profit oF Loss & Other Comprehensive Income For the year ended June 30,2019 For the year ended 30 J Notes 2019 2018 Ts Revenue fom coniaets with ustomer 26 61,060,152,014 _48,289925,736 Cost of goods sold 27 __6,008.238,101) _ (43,410,757, 954) Gross profit for the year 5051913913 4879,167,782 Seling and Distribution Expenses 28 (az27.104692)—(1304,112,525) Administrative Expenses 2» (409.221,690 3.165,833.567 Other Operating come 3» [Net Operating profit forthe year 369,052,974 580,697,858 Finance Costs 312.235.414.696) 039,113,061) Finance Income 2 1,014,034,437 927369378 [Net Profit Before Tax and WPPF and Welfare Fa 2sT6TLT16 ——2,168908,175 Contribution 10 WPPF and Welfare Fund (107,383'536) 108,445.20) 7,040-289,080 | 2,060,488.966 Profit on Bargain Purchase 3 - 10,196,788 Share of profit of associates (Net oft) o 231,876,679 Net Profi before Tax 7308.532,437 Income tax expensex/benefi: (Current Tax (arg.71220 ——_(552,700219) Deferred tax 7 (131,421,082) 44,963,346 Not Profi after Tax 1,728,128,823 | 100,195.58 ‘Other comprehensive income not tobe reclassified to profit or loss Actuarial (0ss¥/gain on defined benefit plans 16 : 6.392.066) Gain on evaluation of land (net of a8) 5340,715313 2 ‘Share of tevauaton reserve of Associate (net of tx) 1.356,704.445 Total comprehensive income fr the year, net of tx Ba2S.S18.S81 1,797 40497 ‘Total comprehensive income attributable to: ‘Owners ofthe company’ 8.428.548.581 797,403,492 45,548,581 _1,797,405,492 Earnings per share (EPS) The accompanying notes 10 44 al pt ofthese financial statements Mab Co tary Signed as per our separate report of same dat Place: Chattogram A. Qasem & Co, Date: September 16,2019, (Chartered AccountantsGIN OT COROT Too0"ss"e89) 90s'srs't SIGOESOFEL dS 6107 ‘0c aunp ye se aouereg pred poop rou aoare pongo pe so waning vonaidap aout sue nj 6107 “2unp O¢ Papua sax amp Joy xe1 Joye 101d 12N donszs ese SPr'rOL'9SE'T : siapossy Jo ansos91 uoREN|eAa1 Jo amy . Pamss] auoys snuog, - wonenjesoy puerT Tes‘OVs 808 tae" s6r'LLL'9 8107 ‘10 Aing v6 se a9ueyeg TES OUSBOBTI — TOPSOTLLED ——_OLVTSWEINT «OO USELIPE 8107 ‘oc sume ye se aouereR Tourer) Tos eves) ; ped puoprasp jours (ov0'z6e'e) (o90'z6e's) - suid young poujop wo ume}(ss ere PBL'Y U6REN OT (eze'rse'r)) qunoure panyeaai pure soo uaastiaq uowetsaidap ut aouarayp SSS'S6L'008'T ——_855'S6L'008'T £8107 ‘sung O€ popu s994 ayy 0 x1 JOYE 1YOId ION ‘pee esO'LET'T Ist'sae‘zs9 6L'S61'veS ‘OOSIE Jo uoR|sinboy ess'sc'ereor —Lecors‘ozs'y = 909°010'rOI'z ooo'osecir'e £102 ‘10 Sing 38 se soueyet nba veo |[ssueres pomeoy|] 2H | | ends aneys sunmogaed 6107 ‘0¢ 2unp papus seas a4 404 Aynbe wy soBuey Jo mous GALATI STAGLS WASABSRM STEELS LIMITED ‘Statement of Cash Flows For the year ended June 30, 2019 aa ss Take “Taka Cash flows from operating activities Receipts from customers agains sales 37 824,569,044 ——47,363,113.218 CCash Paid to Suppliers, Operating and Other Expenses (60,572,087,318) (44,914,462,789) Payment of interest-Net (1.221,380,259)_(1,011,743,683) Income Tax Paid (702,980,574) ___ (684,574,633) Net cash (used in)generated by operating activities G671.878.807) 752,382,113 Cash flows from investing activities ‘Acquistion of property, plant and equipment (8,609,432,909) (395,231,794) Aadition of Capital work-inprogress 2695330813 (1,762,957,118) Aiton of Intangible Assets (25816576) : Proceeds from sale of property, plant and equipment 12,528,408 13,240,109 Increase in short term investments (171,193,600) 230,985,438 Net cash (used in)generated by investing activities (6.098,585,865) _(1,913,993.365) Cash flows from financing activities Dividend paid 41,775,000) ($12,662,500) Receipt (Re-payment of long term loan 8,490,809,134 _1,198,081,650, Receipts(Re-payment of Shor term loan 1,162,396,087 _(1,377,390,041) Loan received from psi to) affliated companies and others 1,8490098,181—2,611,217,873 Decrease in Non-controlling interest (106,755,000) Net cash provided by (used in) financing activities TIIOOSS I 1,612,451,982. Net increase in cash and cash equivalent (abe) 390,065,700 450,790,729 © Opening cash and cash equivalents 524,690,721, 7389991, Closing cash and cash equivalent (+e) 314,786,422 24,690,721 eBSRM STEELS LIMITED [Notes tothe Financial Statemeots ‘As at and for the year ended at 30 June 2019 1.00 Corporate tnformation BBSRM Stes Limited (herein refered to as “BSL’, the company” was incorporated on 20 July, 2002, vide the extiate C- No, 4392 of 2002 a Private Limited Company in Banplatesh under Companies Act 1996. The company was converted ta Public Limited Company on 20 December 2006. The Company sisted with Dhaka Stock Exchange (OSE) and Chitagong Stock xchange (CSE) a6 publi teded company. Trading ofthe shares of the company stared in two sock exchanges fom 18 Samay 2009. ‘The company has setup its rolling mil at 4, Foundetat Indusval Este, Latifpur,Sitakunda, Chitagong and commenced commer prodcton from | Aptil 2008 The registered office of he company i sitte at Ali Mansion, 1207/1099, Sadarghat Road, Citaong, Bangladesh. ‘The Honourable High Cour Division of Supreme Cour of Bagladesh ha approved the amalgamation of BSRM Iron Sel Co, Lid (°BISCO) with BSRM Stels Limited 'BSRM°) on O8 August, 2017 and afer receiving the approval om The Honourable igh Cout Division of Supreme Cour of Bangladesh and order fom the Regsar of loi Stock Companies and Fm, he Board ‘of Directors of BSRM Stel Limited has taken deison to effect the amalgamation from 01 October, 2017 and accordingly a per the provision of sttion 228 & 229 ofthe Companies Act 1994 by wansering al aes and lites of BSRM Iron & Stel Co. Liat ASIM Stes Limited. ‘The main objective ofthe company iso manufacture MS, products by seing up meling and reeling mils and marketing the 2.00 BASIS OF PREPARATION 2201 Statement of Compliance ‘The financial statements ave been prepred in accordance with the (Inerstional Financial Reporting Standards (IFRS), the [Companies Act 1994, he Secures and Exchange Rules 1987 and other applicable las and regulations in angodssh, Cas ows ‘tom operating actives are prepared under dct metho a reserbed bythe Seuris and Exchange Ras 1987 (On 14 December 2017 the Inst of Chartered Accountants of Bangladesh (ICAB) has adopted Intemational Financ Reporting Standards issued bythe International Aecourting Standards Board as IFRSs, As the [CAB previously adopted such standards as Banglades Financial Reporting Standards without ary modiiation, this recent adoption will ot have any impact on the financial statements ofthe Company going forward A umber of new standards and amendments to standards are effective for anal periods begining on or fer 01 Jemiary 2018 dealer aplication Is permite. 2.02 Basis of Reporting ‘The financial statements ae prepared and presented for extemal wsers bythe company in scordance with identified! financial reporting framework. Presentation has been made in compliance with the reqiemens of IAS 1 ~ “Presetation of Financial Statements” The financial statements comprise of 2) A statement of financial position asa 30 June 2019 b) A statement of profi or loss and other compechensve income forthe year ended 30 June 2019 €) A statement of changes in equity forthe year ended 30 June 2019, £8) statement of sh flows forthe yar ended 30 June 2019 «) Notes, comprising summary of nian ecouning policies an explanatory information,2103 Other Regulatory Compliances The company i ako required 10 comply with he eloing mar laws and regulations along with the Companies Act 1994: ‘The come Tax Orinanes, 1984 ‘The Income Tax Rules, 1984 ‘The Value Added Tax Act, 1998 The Vale Added Tax Rules, 1991 The Secures and Exchange Ordinance, 1969 “The Secures and Exchange Rules, 1987 ‘Secuttis and Exchange Commission Act, 193 ‘The Customs Act, 1969 8 c b, E F « H, L ‘These Finacial statements forthe year ended June 30,2019 have boon authorized for issue by the Board of Directors on 1h September, 2019, 2.05 Basi of Measurement ‘Thee financial statements have been prepared ongoing concen bass under the historia cost convention except for some classes of property, plant and equipment which are measured at ealued amount 206 Funetional and Presentation Curreney ‘These fnincial statements are presented in Bangladesh Taka (BDT) which i the company’ functional cureney. All oan information presented in BD Taka hasbeen rounded of the nearest Taka excopt when eherwise Indicated, 2207 Going Concern ‘The Company has adequate esources to continue its operation for fresecable future and hence, the Financial statements have been repre on going concem bss, As per managements assent there sre no meri uncertainties related to events o conditions ‘hich may east sgnfcant doubt upon the company's bility to cominue as gong concen. Use of Estimates and Judgments ‘The prpartion of financial statements in conformity wih IFRS roqies management to make judgments, estimate and assumptions that affect the aplication of accounting policies and the reported amounts of sels, allies, income and expenses Enimates and assumption are reviewed onan ongoing bi The estimates and underlying asumptons are based on past experience and various othe factors tat are blieved tobe reasonable under the ccumstances, the result of which form the basis of making judgments about the carying values of asets and lilies ‘hat are not readily apparent rom other sources. Actual rsults may ifr fom these estimates. Revisions to accountng estimates are recognised inthe period in which the estimate is revised if the revision affects only that ei, onthe period of revision and fue periods ihe revision affects both curent and fture periods In the process of applying entities accountng policies, management has made the following judgements, which have the most, Significant effet onthe amounts recognised inthe nancial statements. Proper plant and equipment ate: 400 Inangible asset Nate: 5.00 Inventories Nate: 8.00 Trade an oer rsevables ate: 9.00 Defined benefit obligations Gratuity Note: 16.00, Deferred taxable Note: 17.00, abies for expenses Nove: 21.00, Provision for income ax Note: 22.00, (Contingent iabilies Note: 40.00,2.09 Investments in Associates ‘An associat san entity ove which the Group hs significant influence, Significh sence isthe power to participate inthe financial and operating policy decisions of the investe, ut snot control o jin conv over those pols, “The company's investment i astocstes is accounted for in the Financial Statements using the Equity Method. Uner the equity method, the investment in an associate is inal recognied at cos, end the carying amount ie increased or decreased to ‘recognize the investors share ofthe prot or lst ofthe invete afer the date of acquisition which i lssified as noneurent ‘asses the statement of financial poston. The invests share of invests’ profit o asi reognized inthe investor's profit er tos. The stament of proto los reflects the company’s share ofthe resus of operations ofthe associate In adion, when thee has licen change recognised ety in the equity ofthe asoclas, the company recognise it shar of any changs, when applicable, fn the statement of shanges in equity. Unreaised gains and losses resuling fom wansactions berween the company ad the soca ae eliminated tthe eteat of the interest in the soci. ‘The flancalstatements of the associate ae prepared forthe sme reporting pcos the Company. 210 Comparative Information ‘The financial statements provides Comparative infrmaton i respec ofthe previous period fr all amount reported inthe curent pesio’s nancial statements. Comparative gure have been rearanged wherever considered necssry to ensure bate ompaailiy with the current pio without easing any impact on the prt and value of ests and ibis a reported inthe Fanci statment. 241 Consistency of presemation Unies otherwise stated, te accountng polices and mathods of computition used in prepeition ofthe financial statements as ‘forthe year ened 30 June 2019 are consistent with these policies and methods appli in preparing te nancial statements ‘rhe yea ended 30 dune 2018, 300 SIGNIFICANT ACCOUNTING POLICIES ‘301 Current versus nomcurrent classification ‘The Company present assets and lables in th statement of fnacil potion based on cuenta suet clasifcaton an assets eurrent when i (© Expected tobe elise or mended sold or consumed nthe normal operating cyte Held primarily forthe parpoe of trading (© Expected tobe realised within twelve months aftr the epting period oF (© Cash orcash equivalent unless rested from beng exchanged or used to sel a iability fora east twelve months arte repring period Allotherases are clasifed as no-cutent, ‘Alibi is eurrent when: © itis expe tbe sted inthe normal operating ele (© Wished primarily for the purpose of trading © Wisduetobesetled within tele months afer the reporting period oF (© There is no unconditional ght to defer the stlement of the ability for a ee twelve months fe the reporting The company classifies aloe Libis as non cient, Deferred ax assets and Hailes are classified a non-current estan bilities, eS08 Property, Pu 300 Fae Value Measurement Fir value isthe price that would be receive f sell anasto paid to wane lability in an ordery transaction betwen market Pariipant tthe messusment date. The fir valve measirement i based onthe presumption tha the ransetion 1 ell he asset ‘ewan the lib takes place either: + Inthe prinipl markt forthe asst or ibility “Inthe absence ofa principal markt in the most advantageous market forthe aketo bility ‘When measuring the fr value ofan ae or ability, the emity es market obsorable daa as far as possible. Fle values are categorie int ferent levels na five hierarchy ed onthe inputs wed in he valuation techniques as olows Level 1: Quote prices (unadjusted) in active markets for idnial assets and ibis Level 2: inputs eter than quoted pices included in Level I that are observable fr the asset or liability, either let (Leas peices) or inet (i.e. dived fom prices), Level Inputs forthe asset rib that re ot based on observable market data he inputs sed to ease the fr valu of an ase or ibility might be categorize in fret levels ofthe fr ale hierarchy ‘she lowest evel input that is signifieant tothe entre measurement, Flue relied disclosures for nancial instruments and non-financial assets th are measured a fi ale or where fi ales are diclosed, are summarized inthe fllowing nots: Property, plant and equipment under revaluation model Note 14 Equipment tens of property, pan and equipments sated a cost, net of accurate depreciation and accumulated impsimen losses, if ny Such cost inlodes the cost of replacing pat ofthe plan and equipment and borrowing costs for longer construction projects if the recognition eters are met ‘The cost of an em of property, plan and equipment comprises: 1s purchase pric, import duty and non-refundable tases (ater dusting trade discount nd cet) © Any cost dirty atibuable tothe acqison ofthe ase, © The cost of sel-construredinstalld tests includes the cost of material, direst abou and any oer costs diel atribuable ‘obras the ass wo the locaton and condton necessary fr tt be capable of operat inthe intended manner andthe os of sismanting ad removing the ems and restoring the site on which he ae locate \When significant pans of plant and equipnent ae reqied wo be placed t interval the Group deprecits thm spare based ‘on ther specific wef lives Likewise, when a major inspeton Is perfomed. its eos is ecogised inthe cayng amount of the plant and egupment asa replacement ifthe recognition ceria ere sate. Al ober fepair and malnonane costs ae recognised in pric or fs as incurred. The preset value ofthe expected cost forthe desommisining ofan ase aer is ses inchded in ‘he cos of he espectiv asset if the ecognition criteria fora provision are met “The cost of replacing or upgrading part of an iter of prope, plant an equipment i recognised inthe caring amount ofthe item iit s probable that the future economic benefits embodied within the pat il low to the company and is cst can be measured ‘lily. The costo the day-to-day serving of prope, plat and equipment are ecorized in pofit or las. &Landis held oma feshold bass and isnot depreciate considering the walimited Hf. In rexpct of all other pope, pt and equipment, deprecation is recognized in statement of prot or loss and other comprehensive income on sight line method over "he estimated useful ves of propery, lam and equipment. Sigiicant parts of individual asset are assessed and i's component has a use lie that i ferent fom the remainder of ht ait that component is depres separately. Asset Category Useful Lives, Plant & Machinery 128 year Motor Vehicle 618 year Fumiture nd Fintures Syear Office Eauipment Sear tory buildings 20 yer Road and Pavements 20 year Equipment ‘year An item of propery, plant and euipnen and any significant part ntly recognised i derecognised upon dispose, at he date "he recipient obtains contro or when no fate economic benefits are expected from is use or disposal. Any sano loss aiing on ‘derecogition ofthe asst (aeulated asthe dfeence between the net disposal proceeds and the caring amount ofthe ask!) it inclded in the tatement of prot or loss when he ask isdrecognied Reva ion of Property, Plant 14 Equipment ‘Lands of the company were revalued by ACNABIN, Chartrod Accountants with asitance fom Pacific Surveyors Lt, BBL ‘Bhaban (Lesc-13), 12 Karwan Bszar Commercial Area, Dhak a8 a 7 August 2019. These asst were revalicd sing the ‘ir ‘market pie att loations and condition. A per evaation repo, the revaluation supisstod at BOT 5 607,062.337. This revaluation has been recognized inthe books ofthe company it Jute 30, 2019. Further disclosure rating to revaluation of and is provide in Ampexte {Property plant and equipment (Revaluation model) Note 400 relation surplus is recorded in OCT and credited to the aset evaluation surplus in equity. However, to the extent ha it revere evaluation dfs ofthe sme aset previously recognised in profit or los, the increase recognised in profit and loss. 2 revaluation deficit i ecogised inthe statement of profit or los, excep to the exert that toffee an existing sp 0 the same asset econied inthe sae revation sp An annus ante from the asst revaluation surplus to retained earnings i made fr the diference been deqreiton based on the revalued carying amount ofthe asset and depreciation based on the aie’ original cost Additionally, accumulated ‘epreciton a the revaluation date eiminated aginst the gross carrying umount of the asst and the net amount is esate 1 the revalued amount ofthe asset, Upon disposal, any revaluation surplus lating to the paricular st Being sod i ranted 9 rained caning, 3.05 Intangible Aset Intangible assets acauired separately ae measured on initial recognition at ast. The cost of intangible ses acquired in a busines ‘combination i ther fi value at he date of acquisition. Following inital recognition, intangible acts are cae cost es any sccumulated amortisation and accumulated impaimnent loss. Interaly generated intangibles, excading capitalised developent ‘ots, are not capitalised an the related expenditure is elected in poi o ss in the petod in which the expendi i inated The usefl ives of intangible asacts are assessed as citer finite or indefinite. 10Intangible assets wth Site lives ae amortized over the wef economic fe and assessed for imprment whenever there is an indication thatthe intangible suet may be pated. The anortsaton period and the amorstion method fran intangible asset ith a fit sf fife ae reviewed at leat a the end of ec reporting period. Changes inthe expect useful fe or the expected Patt of cocsumption of future economic benefits embodied inthe aset ae considered to modi the amortisation period 0° Iehod, a8 approprss, and are ead as changes in accountng estimates. The amortstion expense on intangible ase wih fie lives it recognised inthe statment of profit or loss in te expense category that is consistent with the fnction of the mangle assets Intangible assets with indefinite well lives ate ao mortise, but are etd for mpsiment annul, either ndvidually o atthe cas generating unt level. The assesment of indfite life reviewed anual to eteine whee he indefinite life continues tobe supportable. If ot, the change in useful ie om indefinite to nite fs made on a prospective bass ‘am intangible ase ie recognised upon disposal (Le at the date the recipient obiins cont!) or when no fture economic benefits ar expected fom Hs we or disposal. Any gan or los arising upon drecognitin ofthe asst calculated a the difference btwsen he nt disposal proceeds ad he carrying amount of he assets incided in he statement of proto ss. A summary ofthe intangible assets, 5 Follows “Teade Mark oracle 85 Sonware Tear ) Finite 10 yen) JAmorised ona straight ine Amortised ona ‘Amortsation method used aris straight line bass era snr Acquired Acquired 3.06 Borrowing Costs Borrowing costs directly atibuable tothe soquison eonstrton or prodution ofa ase that nce takes a substantial sid of ime to gt rey for its intended seo sl are capitalized as part ofthe cot ofthese, Al eter baring oss ae "xpensd inthe period in which they occur. Borrowing cost eons of ltrs an cher cst that an entity incurs in connection ‘vith borrowing of und, 3.07 Inventories Inventories re measured atthe lower of eos and net realizable value Cots inured in bringing each product tits present locaton and condition are accounted fe, follows: {Raw mitra purchase cost ona weighted average bis § Fished goods and workin progres: cost of dret matt and labour and a proportion of manuactaring ‘overheads based on the normal operating capo, but excluding borowing cos. [Net elsble value i he estimated sling price inthe ortinary couse of busines, less estimate costs of completion and the tinted costs cesar to make the sale 3.08 Financial struments ‘finns struments ny cont hat gives ie oa financial att of ne entity and financial bili regu istrament of nother entity ‘9 Financia assets ‘The company intalyrecognies loans and receivables and deposits onthe date hat they are oiginate, Al the ancl assets re reeognid ily on the date hich the company bacomea party to the costractua provslons of the insurers. . &309 310 Financia assets are casi ino the following categories: financial ates a se value through profit or los, held to maturity, Touns ad ecelable and avalble-forsale aaa ase. 2 nancial assets classified as at fir value though prof or los i tis eld for trading which acquired orneued pincialy forthe purpose of selling oF epuehasing it in the nearer. Held-o-maury invesments ae nonderivatve financial assis with fixed or determinable payments and fied maturity tat an ‘nty has the postive intetion and ability to hold to maturity. These sels ae inl recognised at fr valu plos my ‘rasan costs. Subsequent inal ecognion, they are measured at smortied cost using he eflesiveinret method ‘Loans ad receivables are nondeivative financial assets with fed ot determinable payments that are not uted in an ative market. Such assets ae recognised intl a ur value pls any directly atibuable transaction cots. Sobwequent tial ‘scopnton, loans and receivables are measure a amortsed cost using the effestive interest method Avallabeforsae financial assets are thove non-dervatve nancial ast that ae designated ae available forsale and ae not Clasifed in anyother ctegoes of nancial asset. Generally, available forsale final ase are recognised nally at it ‘ale pls any dtetyatibutable wansaction cows and subsequent to inal recognition at fur vale othe than impairment losses !ne recognized in thes comprehensive income. 4) Financia Waites Financia iis are classified, a ntl recognition, as Gmail Ubiliies ot fr value plus wansaton eos that ae drety tribuabe othe sue oF the Sania bil. Am emi shall ecognise a financial ability ints statement of financial position when, and only when, heen becomes party tothe eantaetsl provisions of he nerument ‘Loans and borrowings derivatives and payables re recognised slits when the entity becomes pry to the contac and as a consequence, has alga obligton to pay cash. ‘After nil recognition, amenity shall measre ll nail isbilities a amortsed cost wing the eectve interest metho except for financial abilities afi vale through profit or los, nancial ible that arise when transfer of nancial ase does nt ‘qualify for dereogniton,financiel guarantee contracts and commitnets to provide a oa ata below-market nee rae Financia bites that are designated as hedged items are subject to the hedge accounting ‘Cash and cash equivalents Csi and shore depois inthe statement of financial postion comprise ssh at hanks and on hand ad short-term deposits vith amatryof thee mont ress, which are subject oa insignia sk of changes in vale For the purpose ofthe statement of esh flows, cash and cas equivalents consi of cash and sorctem depos, a defined above, nt of outstanding bank overrats as they are considered an integral pt of the company’s cash mangement. Provisions, Contingent lability and C ingen assets Genera! Provisions are recognised when the Company has a present obligation (egal or constructive) as result of past even, itis probable that an culo of resources embodying economic benefits wl be required to ste the obligation snd a lable estimate an be made of te amount of the obligation, When the Company expt same oll ofa provision o be reimbursed, for ramps under an insurance contract, the reimbursement is recognised as Separate ase, bat only when the reimbursement is vill, rain. The expense relating oa prvison i presented inthe saement of proto los net fay enbursement. 2the eet of the time vale of money is material, provisions are discounted using a cutent prea tate tat reflects, when appropriate, the sk specific tothe Hality. When discouig is used, the increase i he provision duet he passage of ime it capri a «Bance ane Contingent abies Contingent ibility isa present obligation tha arses fom past events but is not recognised because It isnot probable that an outow of resources enbodyng ceaomic benefits will be requted ta Stle the obligation and he amount ofthe obligation eannat be messed wih sufientrelibiliy Am amount of Tk. 23,083,915 27 was claimed by Customs, Excise and VAT authority, Bondor Cirle, Narayango) vide nothin. VAT Warehouse (2 Bondorcicle/2012207 ated 03 November, 2014 for wade VAT onsale of 118269 MT Finishes goods ‘The company fled & writ petition 0.10833 of 2018 before the Honourable High Court Division of the Supreme Court of ‘Bangladesh andthe cou stayed the claim n view of above, no provision fo this lnm hasbeen made in he Finacial statmens, Employee Benes ‘The company maintain both defined contribution plan and defined beef plan or its lhe permanent employes. ‘Defined Contribution plan Defined contribution pln sa post employment benef plan under which te Company provides Benefis forall ofits permanent ‘employes. The recognised Employee Provident Fund is being considered as defined contribution plana it meets the recognition ‘itera specified for this purpose. All permanent employees contbute 10% of thei basic salary t the provident fund and the Company also makes equal contibution This fd is recognised hy the National Board of Revenve (NBR), ander the First Sched, Part B of Income Tax Ordinance 1984, The Company recognises contribution o defined contribution pan as an expense wen an employee has rendered required services. The lal and constutve obligation is limited tothe amount it agrees to contrbute othe fund. Obligations are created when they ae ue. Defined beset plan ‘The company mainiains an unfunded gratuity scheme and provision in respect of whichis made annually forthe erployes ‘Gatiy benefit shal be payable onthe basis of company sevice andthe lst drawn basic salary ofthe employee as pe the ‘ollowing abl at th end of tremor, death inservice lasing employnent Service length Benen Less than S yeas of sevice Nil qual oor more than § year of service “Two months lst awa basi slay foreach yar of sevice ‘Workers profi partspation and welfare funds The company also recopised provision for workers profit participation and welfare funds @ 5% of net profit before tmx as per Banglades our lw 2006 Revenue ‘The company bas applied IFRS 15 using the cumulative effet mathod and therefore the comparative information has not been ‘esated and continues tobe report under IAS 18, Under IFRS 1S, revenue is measured based on the consideration pected ina ‘onrat with a ester. The company recognizes revene when sisi a perfomance obistion by transfering contol over goods toa customer. “The company isin the business of providing MS. Bll and MLS. Rod, Revenue from coasts with customers i recognised when ‘cont! af the goods ae transfered tothe estomer aan amount tht eles the consideration whieh he Company expt to Be ‘led in exchange for those goods. The Company has generally conclude that iis the principal in is revenve arangemen' because it pally contol the goods before eanferring tem tthe eustmer. Revenue fom the sale of goods is measured atthe fie valu of the consideration recived or receivable net of Value Added Tax (VAT). Gros tamover comprises local sles of MS. Rod, MS Billet, export of MS. Rod and includes VAT paid tthesas sa The company’s type performance obligations include the folowing When perormance Performance Obligation ices typeally obligation sats ‘etinated Revenue frm contracts with customers: Bangladesh Pointin ime st factory gate The customer can poy the As pet management transaction pice equal the exh approved pices. Selig price in advance oF allowed ‘ere petod of 30 w 60 days. India Poinintime at factory gate The estomer can pay the As pat management transaction pice equal to the cash approved pres seling price in advance oF allowed eet petod of 301060 days. “The Company considers whether there are other promise in he cont that ae separate performance obligation 19 which 2 ponton of the ansacion rice needs to be alloted In detemining the ansaction price for local sakes, the Company considers the ‘fot of variable consideration payable wo the customer “The Company has variable considerations inched inthe contract with customers which are net off aginst the revenie fo -atrminethewanscton pie. The variable onsdeaions are pre-determined. The fect of vaibl considerations on revenue s ‘nly rom coneat With ol customer Earnings Per Share Base engs po share (EPS) i excused by divdag the profit or loss forthe year by the weighed average numb of xdinary shares outstanding during the year. Dit EPS calculated by diving the net potable to orinry equity Roles ofthe Fund bythe weighed average numb fordiary shares oustanding during the yea ‘Segment information For management purposes, the company is organised nt business uns based on its product and has two reporbe segments, as fallow § The MS Rod segment which produces diferent graded Ro¢ and sll he same to several dealers, end uss, ther corporate users and some dcemed export to EPZ based companies. {The MS Billets segment which produess diferent graded Biles and wansfer the sme wo produce MS Rod ‘No operating segments have een ageregated to form the above reportable operating septs. “‘The Company Secretary and General Manager Finance and Accounts i the Chief Operating Dession Maker (CODM) and ‘monitors the operating results ofits business units separately for the purpose of making dessins abou resource allocation and performance assesment. Segment performance is evaluated based on profit or loss, Also, the company's financing (including finance cost and finance income) and income taxes are managed on aguegaely and ae not lloeated 1a operating segments Assets and Lisbilies ofthe company are maintained agaregately due to that, thse ate wot provided to the Chief Operating Desision Make and are not allocated to operating segments. ‘Transfer prices between operating sepmeats are on an ans length basis in manner similar to ransations with hid pats, ‘Year ended MS. Rod MS. Billets Seomneg Adjustments Total 30 Jane 2019 Amount in Mitions Revenue External customers a7348 712 61,060 61,060 Intersegment 2i01 24912491) Tota Revense Tae T6205 3.551 G91) a1 060 Income(Expenses) — es (3,268) (4335) (97803) 2,303 ($5,500) Employee benefits expenses (606) @52) 38) 838) Depreciation and amertisaton (55) 65) 5) Selling and distbuton cost 97) «07 (1072) Adminiseative casts 2) 223) 23) Share of profit of an asocate = a 298298 Segment Profit zt Tale 580 am) 3.58 Recomeilation of profit 209 2018 Segment profit 3si0 S98 Intrseument sales (is) 29) ‘ier operating income 16 4 Finance Costs 2235) 2.039) inane income tole 27 Ceniaon "> WPF an ‘ign con Profit on bargin purchase - 10 Shaw of profit of an ssosiate 298 238 Profit before 2338 208 Geographie torn 201g 201s Revenue from exter Country of Domicile 60.865.630026 | 4,160,129.934 Foreign Couns 194512.988 129,795,805, Tata ioo0.9,014 —W.2895928.737 ‘The revenue infomation above i based on the locations ofthe customers. Revenue fom one eustomer amounted 10 BDT. 12927,719,47 arising fom sales inthe M.S Billets segment whichis 21.79% of tot sles, "Nomcurent ase infrmation has nt presented inthe financial statements and snot avallable secording to the geographical are. L 153:15 Capital management ae a Forthe purpose f the Company's capital management, capital includes issued capital, The primary objective ofthe Company's capital management i 0 maximise the sharholéer value ‘The Company manages capa structure and makes austen in ight of changes in eo nomi codons andthe requlemeas ‘of the fimancial covenants. To maintain or adjust the capital structure, the company may adjust the dividend payment 10 Storcolders, ream capita oshaeholers o sue new shares. The Company monitors capital using a gearing ratio, which is net. debt divided by vr capital pls net bt, The Company has faansal covenants to maintain the gearing ratio 70:30 or btier. The Company incudes within net dt, incest bearing loans and borrowing less cash and cash equivalents. 2019 2018 Inert bearing loan 11361990515, 2,871,181,381 Short erm loan 203857420050 19,295'924003, Less Cath and Cash quivalnts susse20 soason22) Net Debt O.905.S4183 62414663 aay 2n307219619 12808900832 “Toa Capita 20397219619 12,808 900.532 Capital and net debe S1S01373772 4451315195 Gearing Ratio Bs6% 282% Event ater the reporting period [vents afer the rpsting period tht provide eddtona information about the companys postion atthe das of Statement of Financial Position or those tat inca the going concer assumption isnot appropiate are refected in the Financial Statements Evens fer the reporting period tha ae not ajstng events re disclosed in the notes when materia ‘Standards sued Dut nt ye fective FERS 16 Lenses IFRS 16 was isced in January 2016 andi eplaces IAS 17 Leates, RICA Determining whether an Arrangement consis a Lease, S1C-15 Operating Lease-Incentives and SIC-27 Evaluating the Substance of Transactions Involving the Lezal For of a Leas. TRS 16 set out dhe principles forthe revogallon, neasurenent presen and dssosure of aes and reales esses (e scout forall lates under a singe on-blsnce sheet model inl o the accounting for Hance laces under IAS 17. The standard Includes two recognition exemptions for lessees leases of "on-valus asst (ea, personal computa) and shore eases (Le, leases wih lease tem of 12 months oss). At the commencement doo ease, a lesen will recognise lib) to make lease ‘aymen i the ese ibility and an asst represemting the righ to use the undering asst during the lease tem (i. the igh- ‘fs ss, Lessees wl be equied to separately ecognise the intrest expense on the lease liability andthe deprecation expense cote ahofuse asset, esses wl be alo required to remeasure the eas shiliy upon the ocurenceof certain events (eg change inthe lease tem, 8 change in fre lease payments resulting from a change in an index orate used to determine those payments). The lessee will senerallyresgnie the amount of he re-measucmnent ofthe lease lilt as an adjusnent to the righ-o-ae as. Lessor aeountng under IFRS 16 is subtantlly unchanged from toys accounting der IAS 17, Lessors will continue 0 last all eases using the same classification picile as in 4S 17 and distinguish between two types of eases: operating and Tinance leases RS 16, which i effective for annua periods beginning on or afer 1 January 2019, requires lessees and Iessors to make more tensive disclosures thn under IAS 17 16we, Sa aa — ow & vis wut TE — aoe suwcanae rvs PSEC ‘s1oz9o0e 1 sy ANTONY ONIAIVD ETO HTH WCE 6107"20n¢ 0g ve 2.0 eae ~ Torso HISTSUE9 covereoer orsuoreare eset cS wreare SED rg eves oa mse ere t0ress oreussost S00 385 15 siveccete TOTVELE SELF aESGOTAT aor Wass Torssrer) ov Tao (os on TeavLEE SO) weetuw’s 00's cczerows crus aaseor'st roster is wsreecow'el Sur IELS swcisort orreteon Lar esvise'e FREDO aS TPCT score savior vesuzemt rovoneus wiot pur specs Jp amruns, “oe some POI HOMERIC Y= ANGNUATAOA NVI ALEMIONA. OFTTT — orice ves LIF Tor BOP Torreon weTeVOL cor eoreIee ST WECST TGFETOND Le 90'6 vow ereLE —— SLOISE IF etic TFS8L9—— FIFOSEPITT — FLFZIOTSEDL Tosiet Tara DOOR EL Tats GFE LIOZOE (ESTHET 7 Tse oe a Ts896E sav ous'909 sos'eze's ——_os's10'ut 98s'209'311 Ley c10'6te ourseD se sosserec ——onso'se our t9c'ere ous tor 982 ‘sere oOse SorserOE OFF OTST SIF Tore SIS TOF SRST Tow¥sroD > - LEC O) aso'stvt 9s'tes'te wscosr'ole 2p Samp airy Lest ooezee tat ee t07'es6 ‘ste yo 20uren Buwwado, revnar's soesiste — cocurdyer —ueWuuYS —sswecreee't e107 ing 10 wo se ouEE TOT WEALTH —_ONITATS soar TEWTOST — coz sung 9g wo se sume ~ Toos ve) (sex ven) = Tavuee) i860) aecuisice arrests 224 3 Bump supp cis'sones PLSTIO‘SEO'L — g10c"Me 19 Ho 8 oH HOS FEETIOGET re tees6E asc'oce fe sovcrc'ee 1109 Prepayments ura esis sign Tessa aa 1200 Shot Te nesimest InvrnorsinFned Depo Rests no 4os.o.201 sonst Beira weer1201 tnveniens in Fed Dees Resp ames rece inet neon wide onan ross ‘he Cy Se Lmtd tess usin “9.5000 Hab Be inte tenes Dome? ase NCC Bee Limi thre as 158 Ue Conmees Baa tiied La aan "me Commercal Dako Colon PLC LE Maga rowan ——_tsomnan0 nia eg France nt Ue ose denen 347758 {Le Fence Lined eset aassoes ——2717a91 ‘tran Bi Lied 0 LC Mai Soaoo 32887 Steed Cat ak ‘estan awargm —ronso108 [SD Fiane esnen Col eset ‘aims 3aa5es {RC Bank ies LeMeraa dams 0592 [POC BagneshLinid Imam dims a6 ‘A Atk id Lenn oti $3900 ‘aa tema aaonass : nwa Lim Invest SATS 256708 So ated LeNie aise : ‘ba on Li Lene 2y0iss3s 2.7000 na Hon 1340 Cash Cas gates Gain no sess255 gest a0 Cota an a srsnsas sane id Depot Resins as duis syeseaon Se Sa 1901 cain: deme asin sae kay Sopp ino bo Fray oie ssi 250000 Dita te om 2150007 Sitar iwo00 rioo0 oi sino seo Knee ‘sna m6: epee 6238 Mimemingh oe neo mam Jonelalse amat0 ‘seat Baron 409 20913 eel Wate fe on.00 528) ‘Sede agi ae, oa1302 Chat ani: Same aes Brash soem me 8C0) eee ‘Nok i eat ‘sen tamsu imemcoy ha ore ra es Sua ino Led Scrat Sangean eet ascoy hea Enea ee ‘eb ‘hae nd tos tse ond ‘ek nid ead thet mit 0) saat Nara ghd sehen Voom mana ine sco) oie oo ‘seen ined ‘eee ‘net ie 80) Soon) avon nist scoy “Dat Scan tm co) shea Nec ina NCO) soo Neca tinte sod Crete Unt seed Ni sed ‘ona nt ti Seta itewbek ach o8co) oh an Snack sat Sirk tose ewe ‘fected fed “tec hk asco) sos “at ne 0) canons {Connect a 850) oe aa ‘Sten nt vob open ni oy Se 10 one soot eisai (50) a Na an oven Neo poa inn! oad ary ea init ‘See ‘Son bes trond ‘ba ep in| copra sZonaens “aa tae sos Neekin soot son ‘ont ‘sh ns Sood Nc enced poet ont nse ate Sonus ned “oat “Naciy hatin sent snakn ea ‘lank nian ate nl wakes mp bulbs sho inte bank ok reeset bak eve, Accom ‘See Oo ‘ame st et Dee eet ‘eet oe met Dee ae Cpa ‘et eat amet Ost et Dee ime at me Dee me Det ‘at ae ‘Sine Doo meta ‘De me epat ‘ne Dee ‘no Det ime Ost ‘mea ‘ma pat ‘ime Depot ‘na Deo ‘no Det ‘ime Ot et Depa ‘ma eat ‘et Oe ‘met Det met et Geet Dee ‘ne oat cme Det ‘nee ‘me Dot ime Da ‘ine Depot ‘me Dt Ce Dest ‘ne Dopt ‘ino Dost ime Det ‘ine Depot {me Orit me Depot Sine Dot ‘ime Dot et Dot Seopa men Dot caret ‘no Dot Core ep Care eat ‘cme mot Care eat ‘car eat ‘cet et Coe eo ‘Cue Deon SSG5SS S598 95 554 05 FRG GENRES SGEEREGEGEEERRSESEERE SSD gags (one raise, a 2500 oe ves, sis vasa ssn sco sass Bie mains etacies ‘at sea Sara maine ‘a demas vase ssa ss 20 cps sats sean ast epsasie wie1308 Had Dep seas ‘Sameotbanks ume Faring Rate ainterest Abas Us UcMasie Sone % ‘Nem lr an a Ue Marin Sent Ea nk Asin Limi ewan 3 mons 5525% uch Bangla Bank Lined Ue wargis 3 mons som hk Hak Lied Uc wie Sms oun amar Ban iid Le wars 3 mons 30% Morena Lined BGRLC Musi Smosh Somme NEC Bank Lined UC Margin Sens Some evr! Bon itd Uc ware Sons Stame ra Bak Lined corse 3 moans 430550% ‘The Cy Ban Lite UC Main Sens ssa United Commer Bak Li, UC Marin Sens a7 ‘rs Ban Lie Le warn 3 mons ‘som 9 Share Cana: 4D Authorize opt "75000000 Orin tre @ Te 10 en 2Son0000Peteace Shares @ TL. Deck 143.000.00 Orayses @ Tk 0 ach 04,3000 Ory sare T. 0 ech iy pup for sonsieration othe tan ath 21,750.00 Cx shes TR Oech aly pid ps Bom Shores (Fae Je 200) 54251,000 Ory shares @ TK. 10 ah yp ps Hos Shares Fr hepa ended 2010) 19273.0m Orin stares (2 TO aly ld was Bos tes (For er ede 2012), 7.50 Ordinyshares@ Te. 1 ack aly pad 1408 Chinon o shares by holding: ‘ls ter oss Us an 308, Fro 3.01 10000 Fro 10019 20000 From 2001930000 From 300019 40000 rm 5,011 100000 Fron 10 001 1.0.00 "408 Shasblling Posi; Damecststarsbabers: Spon Shareoles (ther Sasol Reid Pari) ‘ter Sasa (Cenes 2 aa Stes (Fore ended 2018) 3300 33 a os a ast uae 3 ro so 100% Novo hares Sas oisox 98.00 +920 900 : Hasn276 = ssn6055, 36,300;810, Sias3.s8 25960987 town y76803, siatigat oars " wasn soaioazt DooeTt —aonns9s sez 3378088 ositw 2950000, ooo. 000- 00.01, 500- L4soo00010 489000000, oso00m0 1 pssne0.00, 1700000 21700000 S2si0.00 542301000 3175.00 - 9 2500 ovot Shares Hating (4) aa wae 359.16 suns 239676 ses 90029 aa Toast oe bua ses asses os 774001500 1801 sa LonastemJoans: Prine Bak Limits tom Bank Lint: Sytem oan DLC Fnanee Limes Meghna Bank Limited Redeemable ere Coupon Band Midas nance Lied ‘Longer fame Maturity anaes ae within oe year Cure portion ue afer more han one ear Nancuent portion Prime Bank Lites Ester Bank Limited: Syne em an Sandud Chartered Rank Syed ters oan Megha Bark Limited Redeemable Zere Coupon Bod Mies Face Linas Pre Ha Limes Este Bank Limited: Syne erm an Sandi Charred Bonk -Syete ta oan Rodeamable Zero Coupon Bod 15065 1507 1508 1509) 1810 sees gma somausire 1.086.280 BORD 612996107 ° eo : 670866 sumooasia Saeostals 102810010 ETERS XCAR aamoansss — onsasm soeoaieny __Lzssest Tiserg9asis: asst ozs asaz7i8810 367.138 : 6742866 smagssaie 12088 asogmam i as ie 2520 si6079 Sss6712508 —055,164280 Sasooesté Imessi —ingo7n307 85997 BESET. TT 815.04 Terms of Prime Bank Iotrest rate 9.75% er annum, Disharsement Te fl disbursement was made on May 29, 2017 Repayments ‘The loan i repayable in qual monthly installment staring from June 28,2017 and each month therefor $ years Securities |. arahagreament for Capital Machinery/Equpment and 01 (one) posta cheque covering ttl value of zara faiity and 6 (6x) nos of post dated cheque covering each installment for tal value of zara Purpose To pay expenditures of contraction work of storage shod, storage be an floor development at Khulna warehouse. IS.S astern Bank Limited: Syndicated term loan Lenders: The company entered into a separate syndicated lan agreement forthe BMRE on 03 Apel 2017 with Eastern Banke Limited the lead aranger and 4 (ou) eter Banks and 2 (two) Financial Institutions ‘Total oun facilities: Tk, 426.500 crore. ‘Total loan faites: USD. 2.500 erore Interest rate:BDT Inert re 8 25%8,5% per rum cleus on que basis and vile depending onthe station of money Interest atesUSD Inte rato 3 months LIBOR 3.75% per annum calelated on quart bass and variable depending on the station ‘of money market Disbursement: “The first disbursement yas made on 19 June 2018, Repayments ‘Thister loan is repayable in 20(oent) equal qual installments commencing from the end of 15th month of he ist raw down date. Securi iL Registered Morgage over the project land measuring 9.6 aresand ll civil constuction thereon supported by reseed General power of Atom. 4 Fixed and oating charge over machinery, plan and equipment ii, Linon shares of BSRM StzlsLimited(owned by directors / shareholders value of which will be 110% of equivalent hit ‘vale ofthe project and measuring 124 eres tha ean othe morgage dt repualry estctions |v. Corporate guaranise ofthe sister concems oH. Akberall & Co, Limite, '¥-_Implementation guararie from the Sponsors ‘i, Demand promissory note from the company Purpose To impor required plant and machinery for installation of Billet Manufacturing Unit and to meet up cst of land evelopment, building and civil contruction, fabrication works a15.06 Terms of DLC Finance Limited “Total foun faites: Th, 300,00,000 Interest rate: Interest ates 9.50% per annum. Disbursement: ‘The fll disbursement was made on Joly 24,2017, Repayments “Theloan is repayable in equal monthly fstallznet starting tom August 242017 and euch month sere for 5 yeas Securities: i. Personal Guarantee li, Post date cheque covering he entire principal amount ii, Corporate guarantee of H.Akberal Co, Li Purpose: To meet expense fo industrial Ind development forthe under implementation melting mil, ivi and elec works and repair and maintenance of machinery 1507 Terms of Jamun: ‘Tota loan faites: Incerest rate: Interest ates 12.50% per annum Disbursement: ‘Theil disbursement was made on January 01,2018 Repayments “The loan is epayable in equal monthly installment starting om January O1, 2018 and each month terete for 1 years Securities: | Documens oft to goods, i Undated cheque frente LIC tit iii Usual charge documents W Personal Guarantee Purpose: import capital machinery 15:08. Terms of Meghna Bank Limited ‘Total loan faites: Th 46,400,000, Iaerest rate Tort ates 11.00% pee anna Disbursement: “The ul disbursement was made on October 01, 2017, Repayments Repayment tobe made 16 equal quarterly installments commencing fom 15th month from he date of disbursement. Securities: 108607 LIC margin 31 Hypotheeation an machinery to be imped trop hank iii Personal Guarante of all deetors of the Company backed by oar resolution fi Corporate Guranee of BSRM Stes id. Us charge documents, Vi Post dated eee Porpose “Toimpon picces 28 MT furnace for Billet maufactuing wit. i 2»1509 Standard Chartered Bank - Syndi Lenders: ‘The company entered ito a separate syndicated loan agreement for Balance Sheet re-aligamest through converting is shor er loan into term oan on 21 Mazch 2019 with Standard Chartered Bank, the lead arranger and S (ive) oer Interest rate Interest rates 9.959% 1.50% per annum calculated on quarterly bass and variable depending onthe situation of money snacket, Disbursement: ‘The frst disbursement of BDT 418 Crore was made on 09 April 2019. Repayments Entiring outstanding inluding the accrue inert thereon shall be epald by 20 (wens) equal quarterly installments stating fom the immediate next quarter end of First Disursement. Any shor fall if any must be repaid with the last inetatlment Securities: Ist ranking pari pass charge on plant and machinery and all fixed assets ofthe company. Personal guarantee ofall the diretors ofthe company. ‘Corporate Guarante of 1-H. AkberaliCo, Lid and 2. BSRM Wires Limite. ‘Other charge documents as per opinion of lenders common counsel and sandr prtie Purpose: Balance shect re-alignment through converting is shor term Ioan int term loan amounting Tk. 700 crore under syndication finance being arranged by SCB.15.10 15.10.01 a a Take Redeemable Zero Coupon Hond ‘Opening Balance 1,102,540,010 1,576,051,890 ‘Add: Interest charged 89,086,448 139,130,142 Les: Interest payment (91,705,840) (137,879,446) Less: Principal payment (520,936,204) (474,162,576) Carrying amount ‘STB.OSAALS 7,102,540,010 Details of the Zero coupon bond ‘The company obtained consent from Bangladesh securities and Exchange Commission (BSEC) vide consent letter reference: BSECICV/201$ dated on 28 Dee 2015 for issuing 2,450,892 nos, of redeemable zero coupon bond of TK. 1,000 each o institutional investors through private placement. ‘Tenure: From 6th month and upto 4 years fom the issue date (TBD). Parpose: Capital expenditure, refinance and equity investment in power project of the group under the name ‘Chittagong Power Company Limited. Subscription and issue: ‘Tota 2,450,568 nos, of bonds were subscribed on 25 April 2016 and 16 May 2016 for Taka 1,999,981,083 and were issued accordingly on those days. Discount rate: The discount rae is 9.5% per year and interest is payable half-year Listing: Unlisted. ‘Transferability Freely transferable subject to the terms and condition of term documents. Redemption: [In oqul instalment starting from the end ofthe 6th month from te issue date and each 6 month thereafter til expiry (4 years). a160 90 vat Defined nef obligations = Gratuity Balance sat OL July, 2018 ‘Ad: Lisi acquied through acquisition of ISCO ‘Aad: Caen seve cost, ‘Ad: Pst sarvie coe Plan amendments ‘Aa nares cost ‘Less: Payment made daring the year Acturilose Costa pan iby as per actuary Deferred Tos Libis Opening balance |Add: Acquisition of BISCO Provided during the ye Investments in stocites ‘Texable deductible temporary difference of PPE and intangible asset (xcuing land) Deferred tx on Revelation Surpus (Land) Deferred inc on revaued potion of Assacioe Provision for Gratuity ‘Tol Adjusted during the year Impact of depreation o evaantionsupias ‘Total Closing Balance Reconciliation of deferred ta labile (assets) Commie gtane anata reciieed GE a ae Poe omy "ieu9806) = Desa ten oe ; Detainee | gamer sioasian Dt ayn ee ee Dee ty en sims soe Revalud portion of Associate “Total deferred tx abilities “Trade Payables BBSRM Stel ReRoling Mis Limited BBSRM Lopsies Limited SRM Wires Limited [BSR Ste Mils Limited [BSRM Recyling Industries Limited [BSI spt Lime thers aoe mi Take 136 970,002 neape : 24983310 : 35.748,860 4319663 : 15388500) 786972 33920066, ToS 736 970,002 Lisa 7s4016 01274007 - 406228008 BOT TEST sos. |] c1s.653.360) 265,347,024 239,41831 : (5367.4) (50,189 7.18638 T9883) EECA] ERLE 5.5085 78170) Taxable! (Dedetily Deferred tx temporary ile! (ants) diterenee Tae sa (164439.863) (41,109,966) 7.952.905 940, 266,347.04 800 886,165 imams 1.396,12285, 239,418,631 1941,906 S238 t6si3.si¢ 12,636,366 Ss 4922.09 3266714210 5657,919387 00,09 : 266,980 266950 24973882 sisi2719, 3361.610382_ ——So7s11.01 Ge9.00 wot rom 1943 ‘Short Toxo Loans Loan aginst tt receipt (LATR) Time lane Demand oan ‘Bank overdraft and cash credit Factoring Loan agains sles invoice Labi for aceptd bil for payment ‘Loan Agains Trust Recsits ATR) Bank Ass Limited Prime Bark Limited bal Bank Limited Shah Islami Bank Limited Utara Bank Limited ‘Time Loans ‘Dhaka Bank Limited PDC Limited ‘aun Bank Limited ‘Midland Bank Limited Prime Bank Limited ‘Shab Islami Bank Limit ‘The Trt Bank Limites Demand Loans Bank Asa Limites BRAC Bank Limited CCommercia! Bank of Cevlon ple Eastern Bak Limited HSBC IFIC Bank Limite "National Credit and Commerce Bank Limited [National Finance Limited Standard Chartered Bonk The City Bank Limited Trost Bank Limited Usa Bank Limited 1901 1992 1903 1906 908 5,125,008 7 ass Feo, 22.965 2019 Taka 233,185,827 2,508 82,988 795,509,968 2272345,148| 22.952,689 128015,147 35.721328 11449052 101,649,171 eo7zase1l 735,705,556 261397222 333,125,507 9.180283 309,916,657 502,283,886 105,111,111 1.827,100,000 120,000,000 299.438962 1397221876 1029717546 20 Taka 117,603,089 2,484,059,755 10,132,768,301 1,892, 114408, 19975377 4.928,302,072 79.295,024.008 eases r0971,768 16,367,476, 37.616 13,301,835, 1,036300302 3444337 661,012.78 IGBTS 100,725,438, 130,850,000, 302,800,000 2304599,310 1024013,889 11034,069,29919.04 Bank overraft and Cash Credit ‘NB Bank Limted-OD (BISCO) ‘Agron Bank LimiedsCC Bink Al Fash Linted-OD Bsc Bank Limtod- OD BRAC Bank Limited-OD BRAC Bank Limited-OD Dhaka Bank Limited: OD Dutch Banga Banik Limied-OD IMC Bank Linited- OD BISCO) Janata Bank Lined CC Sanat Bank Limite OD (BISCO) ‘Mora Tas Bank Lint OD ‘atonal Crat and Commarse Ban Limited CC ‘avon! Cretan Commerce Bank Lined SOD ‘One Bank Limied-OD- (BISCO) Pome Ban Listes: SOD Promir Rank Limited CC Publ Bank Limied- OD ‘pal Bank Limied-c Standard Bank Lime C South Bangla rca & Commerce Bank Lint SOD ‘Stat Bank of rine CC ‘Urtar Bnk Lino: CC 1905 Lilie fr asspi ils for ment (ABE) ‘Avan Bank Lime ‘AFAafh am Bank Limited Bank Al-Fala Limit nk Ast Limi [BRAC Bank Limo Commercial Bank of Coon iy Bank Limied [Dhaka Bank Larted ‘arch Bang Bank Limited ase Bank Limits wusuc {FIC Bank Lied ‘smi ak Bangladesh Limited Jamun Bak Lmtd eran Bank Limited National Bank Limited [NCC Bank Limited (ne Bank Lined Prime Bank Lied Pal Bank Lino Rupa Bank Limited Sandi Chae an Trt Bal Lind United Corner Bak Limited rare Bsn imi 2000 Doe reaed companies [SRM Stel Mis Limited 169.303 1sn.7543m1 385 82085, 36148161 0630190 (09282) s20s4200 168202,01 wngs28s2 srasnsis ors. ws 5260 90495582 6969825) 1082017 137.80.085 23942573 ZEAE HB, 95,700,99) ans) 230,648,798, sigattast 1987.097 (31.802) 22650,21, 121 16.308 97316286 653158 530595 2asa70648 51613230 as0748) 30098010 nian257 (Goss) 2024500 23,503,819, 142.278 587 337300 TR 2uarsts 5400397 40908086 337,703,766, 17.265 1423737786 oss 30.113 smzsiass2 65004536 aa1arests 7.68213 or 197.302.001 2591693088 956.467.139, suzas7 a8 12643 4924700.104 nem aT8s0 56 16025 46 089 058 195: 25868;710 127.989.368 28619121 23538 08 stasis 320.338, ss770539, 217595508, aaron. 10s 2uass7241 151,561.59 45.689.988 153399.800 31070289, aa se07700 ‘These balances represent sr em Hoan arangomcet ave fom rtd companis as and when requieé 1 mest woking copia nest were charged on outstanding balanes Al ansctiors were made tough scout payee ches,21.00 2301 Linbilies for expenses ‘Adversement expenses ‘Ait Foes Brokerage and commission C&P BI and others Carrying expenses Consultancy fs Domiiiary expenses as bil payable Liability against supply of godsiservices Liability against ied asset Liblity for ury drawback Others Priating and Statoneries Rent payables Slary and Allowances Sales promotion expenses “Travelling expenses Opening balance ‘Aad: Acquistion of BISCO ‘Aas: Provision during the yar Les Ajusted with advance income tax paid at source (Closing Balance Provision fr WPPF und Welfare Fund (Opening balance ‘Add: Provide during the year ‘Add: Acquistion of BISCO ‘Less Paid during the year Closing Balance Provision made during the var for WPPF and Welfare Fund, Profi befor tax and WPPF and Weife Fund Cash dividend received for investment in associates Profit applicable for WPF and Welfare Fund CConitution to WPPF and Welle Fund at 5% Take 9.946.485 $98,500 3836547 253,410,187 981,150 2.126493, 21 521,646 108,026,641 101 488.932, 2456383 3240,061 171 64 12962 sans4o B91 1,035,091 FRIIAUEATEY 987,113,988 Ce «78, 712,02 702 980,674 TELSSATS 109,253,966, 107,388,636, 108,253.66) 107385,636, 214767216 mae 107 33.656 aie Take 101,361,232 4so,i00 25,048,040 122KS6t 1a7904392 5397430 113763828 14508409 13938478 ans ona20s 3857211 1723 6633.28, 74910 58,132 Tors ast so7782i3, 191.2406 T0888, 379| $52,700,219 684 574633) ISTA1I5, 130308,597| 105445 209 808.757 13030 105258, 2,168,904, as 108 $45,20500 4301 430101 010 Financial instrament Financial risk management Intemational Financial Renoring. Standard IFRS 7 - Finaneal Instruments: Disclosure - equites disclosure of information relating to both recognized and unrecognized financial instruments, their significance and performance, accounting policies, terms and ‘conditions, net fi values and risk information the company’s polices for contoling sks and exposures “The management has overall esponsibiliy forthe establishment and oversight of the company’s risk management framework. The ‘companys risk management policies are established to idemify and analy the risks faced by the company to set appropriate isk Tints and contos, and Yo monitor risks and adherence to limits. Rsk management plicis, procedures and systems ae reviewed regularly to reflect ehangs in market conditions andthe ompany’s atvtes. This note presents information about the company's ‘exposuee fo each ofthe following risks, the company’s objectives, policies and processes for measuring and managing risk and the ‘companys management of capital. The company has exposure othe following rks from suse of financial instrument, 43.01 Credit ssk 48.02 Liquidity risk 43.03 Market isk Risk management framework “The company management has overall responsibilty fr the establishment and oversight of the Company's risk management framework Tho company’s managcment policies ae established to ienfy and analyze the risks feed by the Company 1 set, ppropriate risk limits and contos and to monitor sks and adherence t limit. Risk management policies, procedure and systems ar eviewod regularly o reflect changes in mtket condition and the company’s activiics Cred risk {Credits isthe risk that a counterpanty wll not meet is obligations under a Finacial instrument or custome contract, leading to a financial loss. The Company is exposed to cet risk from its operating activites (primarily trade receivables) and fom its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and othe nancial instruments Exposure to credit risk “The carrying arnount of financial sets epresents the maximum credit exposure, The maximum exposure to credit risk tthe reporting date was as follows: 20 Taki Investments in FDR (Short term and long tern) W6,67T RSS TORS ‘Advances, deposits and prepayments 3976716412 2984281,030 “rade and ote receivables 10.131,695.870 —— 6,460,428,187 Due fom related companies S508 954818 6 970,340,855. Cash banks 507 531.526 139,06657 FEO18 568,01. __17226,582,532 Ageing of trade and other reeivables ‘The ageing of gross value tthe reporting dae that was nt impaired was a follows: == a Taka Tata efor 3 months 8588455803 $,174964.938, ‘Duc for 310.6 months 799,431,830, 328,352,260 ue for above 6 months 302,252,302 ___276581,060 FOIE, ET VAIEISE. SE 62601 a6 2603 ae Tala 45084400230, 5245 525508 BWI T36 June 30,2018 33487 600.028 6312484708, 20.405.385 TAT 861 308 oon si.uis 209 925.736 48,160,128938 129,795802 29926736 a8249,925.06 mee Total 61,060 Gio a Taka evonns Srna contatis wih customers Lea sales 55985,591031 spor sles S074 50,982 61,060,152,014 “Total esport sls fr the perio was USD 59,432,881 71 agunet expr of 8,686.15 NT a goods Set out below is the isgaregatio of BRM Steel Limite even from contacts with esters ‘Scaments Jane 30,2019 ‘Type of goods treme SO0W 38 994,089,134 tina 4200 7989,144,101 Maxima S00 395.29,028, MS 12,682, 666,064 thes 106,063,689 Total revenue roa contracts with customers Gio60.15.014 Geographical Markets Bangladesh 365,639,008, loa 194512988 Total revenve from contracts with customers 06083014 ‘Timing of revenue recogsition Goods wansfered at postin ime cosa p14 Services transfered overtime : Total revenue from contracts with customers are Se out below the recnelaton ofthe revenue fam conics with customers with he aroun dosed in Nate 26.01 ‘Year ended MS.Rod MS.Bilts Total Segments Adjustments 30 June 2019 Revenue External eustamers aus 32 61.060 Inter etemers 2.091, 2891 21 Faw 1605 sr G1) Contract balan Notes June30,2019 June 30,201 Trae ecivables 9 94690,140138 5,79,898.288, Conrat ses| pi Contac abies 25 705883,107 286,350,304 Trade receivables ae now intrest beating and ae generally on ts of 30060 days Contact asses ae intlyresognsed for revenue earned rerviees as receipt of considerations conditional on sucssful complain of service Upon completion of sevice and aeceptnce byte cuson, the amounts recognised a8 contac ass are reclassified o wade roubles. Conta ibe ineldes shore advances received to deliver MS. Rat the eustaers ”wos x00 na ne nas a a ala Performance Obligations Information about the BSRM Stel Limited’ performance ein is summarised below: MS. Rod The performance obligation i ststed upon delivery ofthe MS. Red othe customers and payment is penraly Be within 30 10 60 days of dlivry. ‘The performance obligation to deliver MS. Rod has two altemative payment options. The customer ean py he wansacton rice el the es sling pie in advance or allowed eo period of 300 6 dys MS. met The perfomance obligation i satsfed upon dsivey ofthe MS lle othe customers and payment is ive frm the comer immediatly Cost otsales (Cow of se Bilt 211281344010 _7,178.56676 Cost of ste MS Rod 2702 3361915,165 — 3595i,548362 (Cost of sles Finished goods procured fom ouside 3703 _aui979926 __20 502716 3 0835,101. —TA10757 958 Cox of sales: ts ‘Opening ook of rp SOTAI0RUR | [TSR ATO IO ‘Ad: Purchase ring the year 1asstoss70 || 720287400 Less: Closing tock of erp c238.217990] |_(3.074,906 084 ‘Raw materials consumption Serap T1390,723862_ $71,555 998 (Opening stock of Direct Consumable T4.465091 | [167 320.706 ‘Ad Parchave during the yar roisatss |] 488,121,559 Less: Closing stock of Dect Consumable ys7ess.200) |_css.s65.000 Diret Consumable Consumption 6779849 S10 977.78 ‘Adi: Farry overhead a0 3074125382 __1.63.881208 Cos of Billet Manufactured TS2N08196 7,882,144 381 Adi: Opening tock of Bill FO 97s6s3id "106, 725,02 Less. Closing stock of Billet FO (oo9n.938) 2368.34) ‘Transfer to Rolling Mls 2303.00.58) (717735 613) (Cos of sales ile, 2251344010 7.1756 76 (Gost of sales MS Rod — Opening tek of ra merit TRGB AD] | FATT ‘Add: Purchase ding the yar 37326,534906 || 36972 004,261 “Transfer fom Meting Shop 20308202 |] 717.735013, Las: Closing stock of aw mateias-Bilet .2.183571,330) |_ 4.136 085.219 Rw materials consumed-Billet 2111, 799,330 38978 013,141 ‘Ada Fetry onthead no8 1328550'576_ 1860299774 Cont of Goods Manufactured 3910339906 TBS 9I8 ‘Adi: Opening tock of finished goods 5090273226 3.206 608,673, ‘Less Move Order fr ProjeeURepair (64.085 554) : Less: Closing stock of ished goods Ss04652.413), _ 6090273226) Cos of sales -owa production BST IS — 35951 68.562 ‘Cost sales: Sinished goods procured from ouside (Opening sock of fined goods WISGT ORE] [D0 eaT aI Ali: Fished gods purchased om oui 43.34.130]] | -_ 370734289 S6i318,8 400,17 08 Less: Move Onder frPrajectRepir 4975.79) @.907.737) Less: Closing stock of finished goods 31,360460) __ 7 967,082) Cos of sales inked goods procured from ouside 1497826 2808.762704, Factory Overheads CCursliowance (Caryingcharges-Finished goods Carrying charges-Raw materials ‘Consuing fess Conveyance expenses Depreciation lec! sore consumption "Etenaioment Fees and enews Ft ond rion Gus (General store consumed rawity Guesthouse expenses Gest house rent Insurance expenses Managerent es ‘Mechanica stae eonsupion Medial expenses Motor ea expenses Othe tore onsution Overime Pape and periodical Postage and telegram Power Priming and staonery Rental expenses Repaid Maintenance Salas and allowances, “Testing chars “Traveling expenses Ustiy expense Waees 400 8 ne Tae 5401671 27593,566 379.947. 038 1,720,168 15918535 574851,689, 85,623,008 033.448 655,487 99,368,306 190,6,078 1.734027 28.152396 4536)126 2595.908 T7583 251358,595, 285 841095 365412 116399 4.550.791, 10,940 s0645 2147892571 6716.22 2923081 Bm. 394323.493, 91782 to.s60412 386078 106015, 503, 75.988 44023,900 17606358 345.a78518 6235.84 wana 407341310 30216960, 670.787 700987 126921759 77 040.112 2238 2 srs sas Hass 427971 109.058 533, a2 3.589.951 ‘490 198,864,107 9.396933 93936 54345 1321835629, 3370395 lesmaa95 35,636,330 287,091,000 mi46s0 sigs 1336088 38,054,999, 399.3509 |2800 Selig and distribution expenses ‘Advererent Bad deer Brokerage and commission car allowance Carrio on sales Conveyance expenses Depreciation retictyexpenses Depot Enteatrent Export charges eos and eels (Generator on & ful rau expenses Immemet expenses Medial expemes ‘Motor yee allowance Piper and periodicals Pring hares Repair and maintenance Royalty expenses Salis and slowances Sales promotion expenss Stationery expenses Testing chars Traveling expenses Warehouse re “0 400 2501 a Take 226,363,831 13233 200 662.38 2394721 00.864420 4396667 26,207 986 4509358 46451946 018913 1,683;520 Ms713 sods ‘o48s4 465,41 4363602 T1639 6.209.607 148,14 92,585,076 124194602 ‘3.081126 81490 arias 93503670 6.189.295 THF 104092 ao Tale sT1919,358 248292 127345811, 591.981 421,560,796 sorgaut 23,703282 wars 21953969 807,260 ‘575940 188,189 oginass 636.16 897894 ass7a3 99,304 anos 139023 sore 1,108,191, $5099 257934 22736618 460,370 5378133 Tinsa Taka 2801 Te ralematk "Xtreme SODW' has been registered in hema of 'H.Akberal & Co, Limited (HAL) fm the depen of Pens, Designs and Trademark of Goverment of Bagladesh under vecion 202) ofthe Trademark Act 2009. The company is paving rovaty tw HACL @ Tk. 150 per MT on its sold quamity fom 01 January 2015 aceordng to Trademark License ‘Ageument between the Company and BACL effective rom the fees date. 2900 Administrative Expenses: ‘Advertisment Expenses 1389780 asian Amortization of angle asset Apes 409.321 Alt es pugs 7355350 Board Mesing expenses 304750 235,475 Car allowance 6129.93 4056.821 Conveyance expense L618 1,836,373 CSR expenses sone2'sss 27947263, Depreciation 400 arin esenaer Director’ remuneration vot 400.000 $2,300,000, Donation and subscriptions “9,300 168.187 cry expenses 2,368,816 19.498 [emer ‘364915 6.18294 Fees and renewals 10,229,640 9477187 Generator expenses 27880 1680 ‘Geatiy expenses 10882283, 3561083 Guesthouse eat 14s9.713, ‘ns410 Insurance expenses 4723 32233 Inert expenses 4.397.000 1487958 Land revenue “one ‘679.495 Leave assistance 1,282,000 1345000 Legal expeses| 136862 vorars ‘Medial expenses 2713884 335,763 Mower ea expenses 4a73316 4193925 Motor ele lowance 417 ‘97.295 ontice ent 13965 784 925,338 Paper and Pediat 13100082 0337 Postage expenses ene 575,408 Priming expenses 1019.41 oro a92 Presson ni consuing foe 12397 949 13784915 Repat and maintenance 6.265744 4am 9 Salis and allowances 208,478,719 175,022,686 Stationery expenses 255.880 120,188 Tepe apes 170,168 $673,186 Taaning expenses 398231 2707992 Traveling expenses 59401103 520332 Fg51597, _—wo221,60 a000 3.00 20 no Detail of Directors remanerai Directory! Name ‘Vie Aihamsain Abbenih Chia Mr. Amc Alihsssn- Managing Dicer Me Zohar Taba Director Mrs Teen Zui Tara Ditetor Other Operating some (Gains cml f non-curca ses Miscellaneous income Tender money Truck Tellor Ret income Other misetlncous income inane Coss, Interest on OD, cath eredt Interest on Sydicate oan Interest on LATR Interest on Demand and Time loan Interest on Te on Bank charges & thers ‘ak Gurantae Commision Interest on redeemale vero coupon bond ‘Agency fxs Foreign exchange loss on tansaton Interest on balance dc a eompanis ‘lnanse income Foreign errency exchange gins) Inees on wade dors Intretinome from FDR Rebate on nest on bak sn Interest or balance de rr ine carps areigncurrensyexshange gains) Realized foreign een ransction gins) Profit o borane oarchna Petesage argued of BSRM ton & Stl Co, Ld Net Astets of BSRM iron & Sel Co, Ld Consideration pai to aqie 5% eae Net Asttsacued Prt on Bangin prchise a ai aid daring the period ae as flaws: Take Taka Grose Income Tas Remuneration __Dedutted Taka Tale 40,300000 T2800 28,350,000 34,000,000, Yo.s00.000 25 200,000 11,400,000 3.420.000 "380,000 660,000 9,000 520,000 34.50.000 78,350,000, (6556,198) 14,988,151 15.0, 165, : 2298) 17750,000 384457 (23737 TG195.80 T4291 221,061,898 136, 46314 172806.993 : 4484510 $4,008,890 rsaqor2.i2s 1384927108 85065638 "38,130,880 wagers 77,123,566, 999.414 hianeTo s9pseaus 139,130,442 2590933320508 789 10,902,130 1864515, 221235525 __264835.160 Tass469 —209.113.061 ano 44471398 4uanaaa 1,798 561 4583351 4416356 6s. 99R073 : 841,00 os3u8im __ 951,825,610 TOrseT, 077 369375 41471398 410144 HAT enh = 3% = 2339035730 z 106,785 100 : (16.951,786 = 00,196,786) (On | October 2017, the Company has sequited the remaining 5% shares representing 5,500,000 shares to complete the ‘enalgamation scheme with BSRM Ion & Stl Co. Lid, thereby tansfering al assets and abilities to BSRM Stes Limited Pursant tothe merge agreement, the Company has peas ensdeation of Tk 1941 pe share which was valued sing the et ase vale methodod Fm Taka 34.00, Share of profiioss) of assoiate (Net ofa) [Net profits) atbtableo the shareholders of sociate 175311103 938,269,828 Percentage of holding 253% 2539% [Net profiles) aibuable to BSRM Steels Lid 297973028 297.973. 035 38.00, Earnings pe Basi earings per share (EPS) Profitable othe ordiaarysharholes 1726128823 1.800,795,358 ‘Number of odiary sare a the yea nd '7s9s2s00 375,982,300 Weighted Average number of shares oustanding ding the year 37592300 __ 373952800, Basi camings pr share (EPS) 10 279 ings per share (EPS) has boun compe by dividing the nt profit ar ax (NPAT) bythe weighted average mumber of ‘ordinary shares outstanding on the rpating dae as per IAS-35: Earnings Per Shar. No died EPS was egured to be ‘nel forthe year since there was no see fo isto, 3600 Net Asst Value Por Share (NAN) “Total Ass 65,808,184,796 45,580,885, Les: Tua Libis (44.910965,177) _G2.871.654.780) Net Asset Value (NAV) ‘097219619 — 12,808 900,592 Number of ordinary snares oustanding during he prod 315952.300 __ 341,798,000, Net Asets Value (NAV) per share Sa srt 37.00 Netoperating cash flow per share Net operating cas ws (From statement of Cash Fos) (sor1s7es07) __7922382.113 ‘Number af ordinary shares oustanding ding the pred ‘315,952,500. 341,775,000 Net operating cashflow per share (2.43 220 LF s3800 Related party tramations During the yea, the company cae uta number of tanscins with reed pas in the noma cous of basins an on Ams Leng st The name of hese reed porte, nature of tansactions, heir ttl ale and lances on repoing das have sens in accordance wih he provision of IAS 24 Reltd panies comprise of empanss wader common owsesip and common marageent contol Oaanding iat neo pares ‘Relat | Natere of Frxmacions | Oulanding zon [Mode of aah Se Rag 7 aie, Balan i Jostens isa Linites Sister Company | Stes oan oe last ice ils Limited ‘asiate Storticmban — | 4924790190] Cr | ute las Liss Limitee sisererpany | Shortie on BBSBHKESH| De | ett ea stent Ms Limited Sir Company | Short tem ban =| be | Preeneee hatter eCo Line Ser Compary | Stet tem sn 10 00648] De lenses Per Compeny Lat | Sister Company | Shortie an 85012869] Dv Joseat wires Lines SinerCorpany | Shortie on 309,862.25 Dr SRM Rese ndwsies Limited | SinerCampany | _ Shatter n + Lo S801 DetalisoLuansacions “Amount owed by ame ofintee companies | Opening balances wot gna Sea ReRaling Mi Un] SAT SST [Or] 1A SROW CARI > sk patties ‘eras |r| —_47.296225) a sea Sts Ni init assoorins) ce] 638712446) = | asn.r0.i98] see opis Limited 94947,738 | Dr 41941120 2as.s88858 - set Mets Lied 72288997 | 228997) HAkberal & Co Lined soon | De 48753930 oom.06.49 - Chiang Power Company id exissia | or 5.161400 ‘86012869 : seat Wires Limited 'a91935 | Dr 250872858 5ov.862282 = laseatReceing indus init | _ 61351204 | bv (61381258 2 ‘These mounts re lasted as Due ean Dus fom elated omnis respectively ee Nos 10 and 20) 300 sonia of et Income 12 June 30 2018 Prat bene Enteres and Tax S302 9TE SBD87 9 Depeciaton 25,055,646 ‘tsneou 77 (crenieyDeerca in Inventories (538196989) 6.164519209) (isreaieyDeeras in Trade Reblables G.67120,.23) (os1378317) (inreaseyDeereas in Advan, Deposit & Prepayment, (c.022435,382) (ass.723375) neat Deecase in Tae Payables (2.0 70,556) 56881086150, ‘neease(Deecss) in Linbilty Fix Eapenses 'sis940 330, 106,582:900 InceasDeercsein Cher Uibiltes 3.688.203 138507307 IncrenstDesens) in Provision oe Oraalty 27400361 31961888 Increas(Denese in Conta Libis 705883107 : Increase(Denease) in Provision oe WEP (105253.960) (035,181,389) (Cast Generated from Operations 2.461.167569) aesasisay leet Pid (6221390259) (011,783,583) Income Tax Pad 07980674 (68457453) Reconciled Net lacome ins 28 2) ‘Ne eas (asd ingnerated by operating activites as per Diret Method (Gar s7E 07, Fass9 40.00 Contingent lables 40.01 Bank guarantees TIC Bank Limited 47653081 84,130,345 sac 339,979 2468 Mercantile Bank Limited 40725.878 43,316050, 15921894 128.778863 4002 Claim against trade VAT by Customs, Excise & VAT authority ‘Claim against trade VAT by Customs, Excise & VAT authority 23053915 25083918 23055915, 25053915 ‘An amount of Tk. 23,053,915.27 was claimed by Customs, Excise and VAT authority, Bondor Cire, Neryangon vide noth no. O4VAT/Warshouse (02)/Bondor circle 012207 dated Sd November 2014 for trade VAT on sie of 115269 MT finished goods. The company fled a wit petition no, 10833 of 2014 before the Hon’ble High Court Division of the Supreme CCout of Bangladesh and the cout stayed the claim. In view of above, ao provision for this claim have been made i the financial statements 41.00 Production Capac Licensed Capacity (In M. Ton} yearly 00,000 700,000 Installed Capacity (In M. Ton yearly 00,000 00,000 Produstion (In M, Ton) 758.405 27034 Capacity wlized- 8) 108.3% 103.5% "The above mentioned production capacity presets the namal production capacity ofthe company ony 2.00 Employees "Number of empoyces whose monthly salary was below Tk. 3000 ‘Nunber of employees whose monthly salary was above TA 3,000, 12s. 74 om fo$5.0 sor 43010 Financia instramens- Finanell risk managemes Intemational Financial Reporting Standard IFRS 7 - Finaneal Instruments Diseloares - equtes disclosure of information relating to both recognized and unrecognized financial instruments, their significance and performance, accountng policies, terms and ‘conditions, nt fair valves and risk information the company’ polices for controling risks and exposures, “The management has overall esponsibility for the establishment and oversight of the company’ risk management framework. The ‘company’s risk management policies are established to identify and analyze the risks faced by the company, to Set appropiate isk Tits and contols, and Yo monitor vsks and adherence to limits. Risk management policies, procedures and systems are reviewed regularly to reflect changes in market conditions andthe company's activites. This note preven infomation about the company’s «exposure to each ofthe following risks, the company's objectives, policies and processes for measuring and managing risk, and the ‘company’s management of eptal. The company has exposure othe following risks fom is use of financial instrument 43.01 Creitsk 4302 Liquidity sk |43.03 Market ise Risk management framework The company management has overall responsibility for the establishment and oversight of the Company's risk management framework The company’s managcment policies ae etablshed to identify and analyze the risks feed by the Company 10 se, pproprine risk limits and contol and to monitor sks and adherence to imi. Risk management policies, procedurs snd systems ar reviewed regularly to reflect changes in market conditions and te company’s activi. Cred risk (Credit risks the isk that a counterparty will not meet its obligations under a financial instrument or customer contract, lading to & financial loss. The Company is exposed to eet risk from ts operating activities (primarily trade receivables) and fom its financing cities, including depois with banks and financial institutions, foreign exchange ansactions and oe financial instrument. Exposure to credit risk “The catying amount of financial sets represents the maximum credit exposure, The manimum exposure oer rik atthe teporting date was as follows my Take Insts in FDRS (Short cm and long tem) Wo,ori ges Fuga ‘Advanes, deposits and prepayments 3976716412 2954281,030 “Trade and otter receivables 10.151,695,870 6 460,425,147 Ds from related companies S505 954818 697040553, (Cash banks 507 331,526, E018 568.091 17326982.852 Ageing of trade and other receivables ‘The ageing of gross value atthe reporting dae that was nt impeired was a follows: 27 efor 3 months SS88455803 5174968938, for 3106 months 799431830 328,352,260 Due for above 6 months 302252502 __276,381,060 Food EF .IVRISS “6on 003 iy vis igi rik the rik th he Company wl encoun dlc n meting te obligations associated wth its aac biltes tha arsed by dtivcing cash, The Companys approach o managing lq oes a faa possible, tha wl lays he sutieentligiity to ect it abies when and bth normal and esd condins, without ncring acsopble ese risking damage tothe Company's epution ‘Theale below summarises te maturity profleof the Companys ancl ablies base on onrastua payment. Conraciual cok ows Nomdervative cari erst ne ‘mount Witla 12 months 1105 years More than years Tia Ta Take Ta Lng ter oe T1361, 9901S 9-10 Fa94 00180 6T DUET 7 “eae payables 3361610392 NA 3361010382 7 : Short term ons 20185720060 t015%4-13.25% — 20A87<20,060 ~ : Linbilis freypenses L011 064,188 NA 101 06.184 S : Defined bene cipal Gstsity Wosasoge tae 6459865, : Provision for WPPF and aawid 1383.38 07383636 Orne ibe NA 293,142,726 - 3 Fit 102.60) — SOT NET Now-leriatve Garnte aacasaa Contra ash owe financial abilities amount Winans Lo Syears More tan Sy ‘Feat. 2008 Taka Tala Tala Ta omar fone TELAT 93%- 100% LO IRTIS——LTI7 SS a = “rae payables 5267311018 NIA Sr67311018 : : ‘Short em fans 19298024003 0.15%4-1325% —19295.24.005 = : Linhiites for expenses 4oLi2ssst NIN 10077748 : Defined tenet Sepaoe Gade 3697m002 10% 136970002 - : ‘Provision or WPPF and atv 109.283,066 109283.96 : rhe ibs sau NA 57334427 - B26 70 isis,107377. TTR Market ik “Market isk isthe rik tht he fi vl future cash Bows of financial instrument wil acta bea of changes in market ‘rics, Financial instruments fected by mak rsh ecude ons and borrowings, deposits an derivative inci inrunens (1) Curreney risk exposure and ts management Foren eueney isk the ik that he far val ofr ach fos of am pone wil tue Resute of changes i sion xchange aes. The Company's exposure to the rk of changes in forcgn exchange rae cates primarily tothe Company's “psraing ates whe evenueo expe seo nein conc) To manage this exon the Canary i adapted eat rik reduction methods based on matching eet and paseo abet and ais, The Company s exposed ori cureey rik rein to prhass, sles ad ther tamstios which ace denarii frelgn aernccs. As at 30 Je 2019, the Company was exposed 1o Fein cureey sk in respect Cnn ible denominated in the lowing etencies: