Anlima Yarn Dyeing LimitedTable of Contents Corporate Philosophy 02 Corporate Profile 03 Business & Products 4 Notice of the 215 AGM 05 Chairperson’ Message 06 Directors’ Report 08 Photo Gallery “4 ‘Audit Committee Report 15 Five Years’ Statistics 16 Key Performance indicators 7 Certificate from CEO & CFO 18 Certificate from Professional Accountant 19 Compliance Report on BSEC's Notification 20 Auditors’ Report 25 Statement of Financial Posi nm 26 Statement of Profit or Loss & Other Comprehensive Income 7 Statement of Changes in Equity 28 Cash Flow Statement 29 Notes to the Financial Statements 30 Proxy Form and Attendance Slip a7 o ‘ANLIMA YARN DYEING LIMITED annual report 201516Corporate Philosophy Vision —w FFT, Our relentless endeavor is towards contributing to the national economic advancement ina global context by enhancing the country’s image as an international provider of quality products and services. Mission sin To strive hard to bea provider of world class textile and garment products and services and position the country in the higher value segment ofthe international textile market Goals To satisfy the customers through technological superiority and synergic synchronization of man and machine tailoring quality products and services to harvest the reward of responsibility. o annual report 201546 Values To create better future for the stakeholders maintaining high standards of integrity, propriety and goodwill in shouldering social responsibilities. ‘To assimilate efficient, innovative and state-of-the-art technology for developing operational infrastructure and to establish linkages and integrations ‘To foster conducive environment to groom-up productive talents and to build up mutually rewarding relationships with employees, clients and the society based on the highest standard of professionalism. Quality Policy Anlima Yatn Dyeing Limited is committed to be a provider of world class textile products and services by offering unrivalled quality and satisfying the customers. ‘The company is continuously striving hard to dye yarn as per International standard by reducing the processing time, delivery lead time and re-dyeing rate. The company also endeavors to make optimum use of dyes and chemicals by reducing wastage and process loss ‘The company is committed to avoid use of dyes and chemicals that are health hazard and harmful for the mankind and environment. In the process the company will ensure required training to enhance productivity and skill ofits human resources, ‘The company will review its performance periodically and take ‘measures to continuously improve quality, work environment and, employee satisfaction. [ANLIMA YARN DYEING LIMITEDCorporate Registered Office Factory Profile + Suite # 4/3, City Heart, 67 Naya Paltan, Dhaka-1000, Ph, +880-2-9349881-4, 9341373, 8317216, Fax: +880-2-8317184 E-mail:info@anlima.com, Web: http//wwwanlima.com + Karnapara, Savar, Dhaka-1340. Ph, +880-2-7745007, 7746095, 7745009 Fax: +880-2-7748614, 7746095 Company Information Year of Incorporation Commercial Operation Product Line Authorized Capital Paid-up Capital Number of Shareholders Stock Exchange Listing Member of Association Professional Membership Number of Employees Sister Concerns Name of the company AnlimaTextile Limited Allied Enterprise (Pvt) Ltd. Anlima Buildtech Limited Precision Energy Limited Anlima Energy Limited [ANLIMA YARN DYEING LIMITED 24th October 1995 30th March 1998 Yarn Dyeing Services, Sewing Thread Tk. 200,000,000 Tk. 178,678,000 3,559 (As on 30% June, 2016) Dhaka Stock Exchange Limited Chittagong Stock Exchange Limited Bangladesh Association of Publicly Listed Companies Bangladesh Textile Mills Association Dhaka Chamber of Commerce and Industry 279 Type of business 100% export oriented knitting, dyeing, finishing and garments manufacturing composite unit. Developer of commercial buildings and complexes. Developer of residential apartments. Power Generation, Power Generation, Auditors IW/S Ahmed Zaker & Co, Audit Committee S.No. Name 1 2 3 Mr. Ahmad Ullah Mr. M. Abul Kalam Mazumdar Mr. Md. Abul Bashar Board of Directors Sl.No. Name 1 Mrs, Hubbun Nahar Hoque Mr. Mahmudul Hoque Mr. M. Abul Kalam Mazumdar Mr. Md. Abul Bashar Mr. Ahmad Ullah Management Team SI.No. Name Mr. Mahmudul Hoque Mr, M. Abul Kalam Mazumdar Mr. Sumayel Muhammad Mallik Mr, Jabed Murad Mr. Mizanur Rahman Chowdhury Mr. M.Jahangir Alam Company Secretary ‘M. Jahangir Alam Chartered Accountants Designation Chairman Member Member Designation Chairperson Managing Director Director Director Independent Director Designation Managing Director Chief Financial Officer Vice President (Production) Vice President (Maintenance) First Asstt Vice President (Marketing) ‘Company Secretary 3 annual report 2015-16Company's Business and Products Anlima Yarn Dyeing Limited was incorporated in 1995 as a public limited ‘company and set up a yarn dyeing plant equipped with latest state-of-the-art technology from Europe. The company is listed in Dhaka and Chittagong stock exchanges. The company, commenced commercial operation in 1998, provides international quality cotton, polyester and filament yarn dyeing services and enjoys reputation as one of the best yarn dyeing houses in the country catering to the higher value export market need. The company is capable of dyeing all types of yarn for country's export oriented knitting and weaving industry and supplying polyester sewing thread to export oriented garments factories. 04, annual report 201546 Products ‘The company’s product line consists of: (Yarn Dyeing Service - for various types of cotton and blended yarn used bby woven and knit textile factories. (Sewing Thread - for use by garments industries under the brand name "AN Thread! The specification of the company’s products are: ‘Yarn Dyeing Service (1 ISO/AATCC/BSTI Standard, I Environment-friendly echo-soft dyes and chemicals. 1 Moisture Content: Cotton 6-79%, PC 4%, CVC 58%, Polyester 0.5-0.7%. 1 Process-weight loss:Cotton- white 5%, colored 3%,TC/CVC- white 4% colored 2%, Polyester 1%, Sewing Thread English Count (NE) - 20/2, 20/3, 40'/2, 405/3,50'/2, 6'5/2,60'/3. GF High tenacity staple fiber of 1.1 D for knot-free yarn. (Accurate length wound on plastic cone with airtight poly-packing. J Tipping-thread that endures enzyme/ hot wash and hypo-chloride/per-oxide bleaching, Quality The company's products offer unrivalled quality coupled with production economy that makes the company an ultimate choice for textile and garments manufacturers. The key quality features are: 1 Azo-free: Azo compound in textile materials are seriously harmful to human health and Anlima's products are Azo-free ensuring total safety against that health-hazard. The products are Oeko Tex Standard 100 certified, I Knot-Free: Knots are detrimental to knitting/sewing speed and productivity. Anlimas thread/yarn are knot-less that ensures higher productivity. 1 Color-Fastness: Anlima’s thread/yarn are color-fast that ensures washing, light, rubbing, bleaching and perspiration fastness. Being absolutely bleach-proof, it prevents all chances of color-bleeding or fading of fabrics 11 Coler-Matching: We offer perfect color matching with computerized facility and offer DTM (Dye to Match) service within 72 hours 1 Needle-Saving: Animas products are immaculately processed saving it from becoming hard or sticky and thus avoiding ‘the extra cost in time and needle-breakage during knitting/weavina/sewing, 11 Yarn-Saving: Weight-loss during dyeing in Anlima is only 1.2% that is 4-596 ess than other competitors resulting in substantial yarn saving. 1 Gliding Efficiency: Anlima's superior and sophisticated lubricating winder ensures better gliding efficiency and lower friction contributing to higher productivity ‘ANLIMA YARN DYEING LIMITED[ANLIMA YARN DYEING LIMITED Notice of the 21st Annual General Meeting Notice is hereby given that the 21% Annual General Meeting of the shareholders of Anlima Yarn Dyeing Limited will be held on Tuesday the December 20,2016 at 10:30 arm. atthe Factory premises, Karnapara, Savar to transact the following business: Agends 1. Tocconfirm minutes ofthe 208 Annual General Meeting held on 20° December, 2015. 2. To receive, consider and adopt the Profit and Loss Accounts of the Company for the year ended June 30, 2016 and the Balance Sheet as at that date together withthe Reports ofthe Directors and the Auditors thereon, 3. To appointelec Directors in accordance with the provisions of the Articles of Association of the Company. 4. Toapprove cash dividend for General Shareholder @ Tk 1.00 per share (10%) and for Directors @ k 0.50 per share (5%) as recommended by the Board 5. To appoint Auditors for the year 2016-17 and fic theirremuneration 6. Totransact any other business of the company, with permission of the Chair. By order of the Board of Directors de October 27,2016 M.Jahangir Alam ‘Company Secretary Notes: (a) The Record Date will be November 20, 2016. The shareholders whose name will appear in the share register of the company or in the depository register on that date wil be entitled to dividend and attend the AGM. (bo) Amember entitled to attend and ote atthe annual general meeting may appoint aproxy to attend and vote on his/her behalf. The proxy form, duly stamped, must be deposited atthe registered ofice ofthe company not later than 48 hours before the time fixed for the meeting, (Members a requested to notify change of addres, ifany,to the company, (d)_ Forthe sake of convenience shareholders ae requested to submit ther queries on the Directors Report/Accounts for the year 2015-16, ifany, atthe Head Office ofthe company atleast one day before the day ofthe General Meeting ‘Admission to the meeting room willbe stritl as per nate (a) above on submission of attendance sip sent with the Annual Report. 05 annual report 201546Chairperson’s Message Distinguished Shareholders, | have the pleasure to warmly welcome you to the 215t Annual General It is my proud privilege to place before you the Annual Report of Anlima Yarn Dyeing Limited for the year 2015-16, annual report 2015-16 Meeting of the Company. Global Economy Growth prospects for the global economy continues to weaken and recent events such as the terrorist attacks around the world, UK's leaving the European Union and the US presidential election has caused elevated levels of uncer- tainty for business. In spite of the decline in growth, the emerging and developing countries have been able to contribute to three-fourth of global economic growth According to World Economic Outlook projection, the global economic growth was 3.1% in 2015, less than previous year. ‘The growth is expected to be 3.2% in 2016 and itis projected at 3.5% in 2017, During the year 2015 the economic growth ‘of USA was 2.4% which is expected to remain same in 2016, at 2.4%, There isa forecast that the growth will rach 2.5% in the year 2017. Increase in employment, increase in income, fallin oil price and restoration of consumer confidence has helped gain economic growth better than expected. Euro Zone's growth in 2016 and 2017 is expected at 1.5% & 1.69% respectively. The economic growth in Japan is expected to stand at 0.5% in 2016 and in 2017 this growths expected to be negative (0.194) (On the other hand, the growth of emerging and developing economiesis expected to increase to 4.1% in 2016 from 4.0% of 2015 and it will reach 4.6% in 2017. The emerging and developing Asian economic growth is projected to 6.4% in 2016 which was 6.6% in 2015. The growth may reach 6.3% in 2017. The economic growth of China is projected to reduce 06.596 in 2016 from 6.9% last year. The growth rate of China is forecast at 6.2% in 2017. Conversely, economic growth rate of India is expected to rise to 7.5% in 2016 from 7.3% of 2015, This growth is projected to be maintained in 2017 also. [ANLIMA YARN DYEING LIMITED[ANLIMA YARN DYEING LIMITED Bangladesh Economy The Bangladesh economy broke its GDP growth trap, Cf 6% for the fist time since independence as it has. already crossed 79 in the current fiscal year. The GDP. growth is expected to stand at 7.11% for the fiscal year 2015-16, remarkable growth from 6.06% and 655% of 2013-14 and 2014-15 respectively. The average growth of last six years was 6.2%, The country’s Sixth Five year plan has ended in the year 2015, During the period there was considerable progress in the employment, agricultural production, inflation and export earnings. These have also helped bring socio-economic stability. The country's poverty has reduced to 12.8% from 17.6%. of previous year. In view of some policy and legal reforms in tax management, the revenue collection during the eight months of 2015-16 has grown to 16.16%. The countty'srate of inflation has come down to 5.61% in April, 2016 against 6.36% of July, 2015. In line with this declining inflation the export is increasing. As a result, the foreign exchange reserve has crossed US$ 30.04 billion in July, 2016. The balance of payment situation has also become favorable, The FDI inflow during 2015-16 reached USS 2.0 billion against USS 1,83 billion in 2014-15. During the year Bangladesh exports inched up 10% to US$ 34.24 billion in 2015-16 against USS 31.21 billion of previous year: The national savings during the period was 30.31% (of GDP against 29.02% of 2014-15. 15" Werld Economic Outlook, Apil2016 and July 2018 Future Prospects The Brexit vote implies a substantial increase in economic, political and institutional uncertainty, which is projected to have negative macroeconomic consequences, especially in advanced European economies. As such, the global growth forecasts were marked down in 2016. The outlook is expected to worsen for advanced economies while it remains broadly unchanged in emerging markets and developing economies. With Brexit stil unfolding, the extent of economic and political uncertainty may rise. Despite the global slow down, the prospect of Bangladesh economy is expected to be good due to politcal stability and massive development activities being carried out. The global Textile importers are also building their confidence in Bangladesh with improvement in the social and environmental compliance. Company Performance The company's sales mostly depend upon the woven and knit textiles export scenario. In view of global economic uncertainty, emergence of new competitors from other South Asian countries and imposition of compliance issues by the RMG importers have caused the sector to face challenges. As a result, the company's sales did not improve as per expectation of management. With the gradual improvement of the Bangladesh's prospect, the company is expected to perform better. Conclusion |, on behalf of the Board convey sincere appreciation to our valued shareholders, regulators, suppliers, financing partners and all other stakeholders for their continued support, Our employees also deserve appreciation for their hard work and dedication to propel the Company towards success. Thanking you, Habba NAvot Hubbun Nahar Hoque Chairperson °7 annual report 2015-16Directors' Report to the Shareholders annual report 201546 Dear Shareholders, We welcome you to the 21% Annual General Meeting of the Company. It is our privilege to place before you the Directors’ Report together with the Audited Financial Statements of the Company for the year ended June 30, 2016 along with the auditors’ report thereon’. 1. Industry Outlook Textile industry in Bangladeshis the largest sector in terms of employment and foreign exchange earnings. During 2015-16 the sector exported USS 28.09 billion worth of woven and knit garments which is 82% of total foreign exchange earnings of the country. The export in 2014-15 was US$ 25.49 billion. The export growth was 10% from previous year. The export from knit garments was US$ 1336 billion effecting growth of 75% over previous year ‘The woven garments export on the other hand was USS 14,74 lion, a growth of 12.8% from previous year? Apart from garments, there are home textile items that fetched export worth USS 753 milion in 2015-16 compared to US$ £04 millon of previous year. The country’s export prospect though stalled to some extent in the past two years, itis gaining momentum. Its expected thatthe sector's growth would continue 2. Operating Performance a. Business Outlook Bangladesh textile sector is primarily the buyers market. In most of the orders the buyers dominate in terms of design, price and other aspects. Due to competition from other countries, Bangladesh is facing huge challenge for sustainable growth, despite competition from Vietnam, Cambodia, India and China. Bangladesh is poised to retain its growth trend. The company management has decided to take some initiative to improve the business of the company. The company’s aggressive marketing strategy will help to increase its market share. ‘mm * The report wore approve bythe Gourd of Drectors on October 27,2016 whichis prepared ma complance wth section 124 ofthe Companies Act 1954 and Bangladesh Secures and Exchange Commision netifaton Ne, SEC/CMRRCD/2006-15834/Admini44 dated Aust, 2012 and other apaiabl as sm xpor Performance for FY 2015-6 Expor Promotion Buren ANLIMA YARN DYEING LIMITEDhase nee Product-wise Performance ‘The company has two product lines: yarn dyeing services and sewing thread. n yarn dyeing the customers provide the yamn and the company 2015-16 2014-15 Particulars provides the dyeing service. In case of sewing thread the company impor’s ‘tay polyester yarn and sels on its own brand. During the year the company Dyeing Thresd Tt! pyeing Thread Total utilized 38.20% of capacity. Lack of orders is the main reason for poor Utilization of capacity. During the year the total production was 1,146 tons, KG almost same as previous year. The yarn dyeing production increased by 2% and the sewing thread declined by 8% from corresponding figures of 857/131) | 208808) [1.148.080 previous year. The cost of goods sold during the year for yarn dyeing service CONT] AES ES) ‘was Tk. 108 per kg and for sewing thread Tk. 321 per kg. In the previous year the costs were Tk. 112 and Tk. 342 per kg in yarn dyeing and sewing thread ‘Sales Revenue (000 Tk) 130,583 86,730 217,313 130,938 97,802 228,740 respectively, The average production cost per ton slightly declined in both Revenue (Tk perk) 3800397187048, 199 the products due to change in product mix. Eero cnr: ooo Sales and Profitability RawMaterials Consumed 45,646«=20316 © 75,962 45,782 | 34197 79,981 Packing Material Consumed 4049 -«2689««6,738««3823««2855 6678 ‘The total revenue eatnings during the year was Tk 217 millin against Tk. Manufacturing Overhead ——«40,033-«26589« «66,622 40,770 30453 71,223 229 millon of previous year. The sales of yarn dyeing was Tk131 millon, Depreciation Tiise4| |) tz-5a6 |) ria oi0 iziocel ators eaise7 Same as previous year. The sewing thread sles revenue declined by 11% pore forsale eee een eye tener cree aces Te ces ence alae fo sles 101,692 67,541 169233 102378 76470 178,848 realization per unit of both the products declined slightly. The average yarn Finished Stock adjustment 616 3,545 4161 (222) 4git 4689 dyeing price was Tk. 138 per kg against Tk. 143 of previous year. In sewing. WIP Stock adjustment - (854) (854) ‘thread the price per kg was 397 against Tk. 411 of previous year. Though the Cost of Goods Sold 102308 70232 172,540 102156 81,381 183,537 company didnot reduce the prices, changein productmixhavecausedthe Co. orceoassaePerkg) 108 aa nag tik aaa 158 average revenue to dedine. Gross Profit 28.275 16498 44,773 28,782 16,421 45,203 ‘The gross proft per kg in yarn dyeing was Tk 30 compared to Tk. 31 of Gross Profit (Tk. Per Kg) 3 Sw previous year In sewing thread the gross profitincreased by 9%6toTk.75 per Administrative Expenses 3726 5796 14522 7,884 «5,889 «13,773 kg from Tk 69 of previous year The administrative expense during the year lng Exar eters at a et eet re erence eee enti foe ee Uese)/102)|—2.761| Ree ee hand have decreased. After deducting all these operating expenses the net Financing Expenses 1,675 Wa 2,787 2,382 1,780 4162 profit of the year is arrived at Tk, 20 million as against Tk, 19.54 million of WPPF & Income Tax. 2,827 1,878 4,705 2,656 1,984 4,640 previous year. Net Profit After Tax 13,388 6,609 19,997 14,091 5,447 19,538 09 [ANLIMA YARN DYEING LIMITED annual report 20151610 3. ‘As mentioned above, the company’s net profit of the year is Tk. 20.0 million ‘Adding prior years retained income the distributable profit is arrived at Tk. 29.40 million. The Board of directors have proposed for cash dividend for the year 2015-16 for General Shareholders @ Tk. 1.00 per share and for Directors @ Tk. 0.50 per share subject to approval in the AGM. If approved, company’s appropriation of profit, Based on the financial performance of 2015-16 would be as below: rofit and its Appropriation Taka in Thousand Particulars 2014-15 Net Profit after Tax 19997 19537 Profit brought from previous year 9374 7705 Proft Available for Appropriation 29371 27282 Proposed Dividend 14015 17,868 Profit Carried Forward 15356 9374 annual report 201546 4, Directors. «a.Retirement and Re-election Mr. Mahmudul Hoque, Director of the Company retires by rotation as per Article 127 and 128 of the Articles of Association of the Company. He being eligible, offers for re-election as Director of the Company. Mrs, Aniqa Haque and Mr. Alwi M. Haque shareholders of the Company, being eligible, offers themselves for election as Directors +. Profile of Directors i. Mr, Mahmudul Haque Mr. Mahmudul Hoque was born in a respectable Muslim family of Chittagong. He obtained Bachelor of Commerce Degree from Chittagong University, He is a born businessman as he started his business since early days of his career. Over the past thirty five years of his business ‘career he gained significant experience in import and export trade, power sector, real estate and textile sector. Apart from Managing Director of the company, Mr. Haque is also the Managing Director of: Anlima Textile Limited, Precision Energy Limited, Anlima Energy Limited, Allied Enterprise (Pvt) Limited and Anlima Buildtech Limited, He is also the sponsor Director of Jamuna Bank Limited and International Holdings Ltd, He is very widely travelled person and visited most ‘countries of the world. He is involved in different social development works through a host of social organizations. ii. Mrs. Hubbun Nahar Hoque Mrs, Hubbun Nahar Hoque was born in 2 respected Muslim family of Sylhet. She obtained Bachelor Degree from a renowned University in Dhaka, Over the past years of her business career she gained significant experience in import and export trade, real estate and textile sector. Mrs. Hoque is also associated with social welfare activities by patronizing different clubs. land social organizations. She is also the Director of Anlima Textile Limited, Precision Energy Limited, Anlima Energy Limited, Allied Enterprise (Pvt) Limited and Anlima Buildtech Limited. il, Mr. M. Abul Kalam Mazumdar Mr. M. Abul Kalam Mazumdar has been in the Board since 1997. He is an MBA from Institute of Business Administration of University of Dhaka and a Fellow (FCMA) and Past President of the [ANLIMA YARN DYEING LIMITEDInstitute of Cost and Management Accountants of Bangladesh. He is also a Certified ‘Management Consultant (CMC) from Australia. Mr. Mazumdar has vast knowledge and experience in corporate sector of Bangladesh. Prior to his joining in the company he served in BJMC, Ministry of Finance and Beximco Group in various fields of corporate management. He also served in various national committees some of which are: Bangladesh Bank's Committee for Selection of Country Credit Rating ‘Agency, Privatization Committee of Ministry of Industry, Pharmaceutical Pricing Committee of Drug Administration, iv. Mr. Md, Abul Bashar Mr, Md, Abul Bashar was born in a respectable Muslim family of Chittagong. He ‘obtained Bachelor of Commerce Degree from Chittagong University. Since 1996 he is involved in the Group and has vast experience in management of the company's affairs. He is also the Sponsor Director of Anlima Textile Limited v, Mr, Ahmad Ullah, Independent Director Mr. Ahmed Ullah is a Master degree holder andis one of the established businessmen (of the country. He isthe sole distributor of Data Color, USA in Bangladesh and markets Data Color branded spectophotometer and other accessories for color lab of textile factories in Bangladesh. He is also one of the sponsors of Korea-Bangladesh export criented joint venture cap manufacturing and exporting factory running its ‘operation since last fifteen years. Besides, he is also involved in social works through different organizations. vi Mrs. Aniga Haque Mrs. Aniga Haque hails from a respectable Muslim family. She is LLM Masters in International Commercial Law and Graduate Diploma in Law. She completed Bar Professional Training Course (BPTC) from Cardiff University, United Kingdom. Prior to this she graduated in Master of Arts in Economics from the University of St. Andrews, Scotland, UK. In the legal practice front, she has considerable experience in Apex Court Chambers, Cardiff and Circuit Court judges in Myrthr Tydfil, Wales. In the corporate management arena, Mrs. Aniga worked for operations, business development, B28 sales, client acquisition and other areas in foreign companies in UK in addition to her exposure in Anlima Group of companies. She has also excellent knowledge of supporting the group company's strategic management programs. [ANLIMA YARN DYEING LIMITED vil. Mr. Alwi M Haque Mr, Ali M Haque was born in a respectable Muslim family in Dhaka. He is completing IB Diploma in UWC Atlantic College, Wales, UK. He qualified in ICGE examinations with Edexcel High Achievers Award. He is young man with friendly disposition, He has keen interest in business affairs and is planning to build his career accordingly. Mr. Haque is also a community worker and did lot of community works for the under privileged, He involved himself in advising and motivating the children for attending the school for ‘education, building awareness about cleanliness, health and hygiene and other community affairs. 5. External Auditors The Directors hereby report that existing auditors Ahmed Zaker & Co, Chartered Accountants, 45 Bijoynagar, Saiham Sky View Tower (2nd Floon, Dhaka-1000, who were appointed as auditors of the company in the twentieth annual general meeting, caried out the audit for the yeat ended 30th June, 2016. Their tenure has expired and being qualified has expressed their willingness to continue fr the ault forthe year 2016-17. The materi placed forthe decision ‘of the honorable shareholders. 6. Audit Committee The audit committee performed as a sub-committee of the Board in order to assist the Board in ‘ensuring and fulfilling its responsibilities. During the financial year 2015-16 the following persons continued as member of the Audit Committee Mr. Ahmad Ullah Chairman iM. M Abul Kalam Mazumdar Member iM Md. Abul Bashar Member Mr M Jahangir Alar ‘Company Secretary The details of the activities of the Audit Committee have been provided in Annexure-A. 7. Declaration of Directors on Financial Statements The Directors are responsible for governance of the Company and preparation of financial statements. They confirm that: 1) The financial statements present faitly the Company's state of affairs, the result of its ” annual report 2015-16‘operations, cash flow and changes in equity with the Companies Act, 1994 and Securities and Exchange Rules, 1987; 2) According to the requirements by law proper books of accounts of the Company have been followed; 3) Appropriate accounting policies have been consistently followed in formulating the financial statements and accounting estimates were reasonable and prudent judgment; 4) The financial statements have been prepared in accordance with the applicable Bangladesh Accounting Standard (BASs) and Bangladesh Financial Reporting ‘Standard (BFRSs) adopted by the Institute of Chartered Accountants of Bangladesh (ICAB) based on International Accounting Standards (IASs) and International Financial Reporting Standards (IFRS); 5) Internal Control System is sound in design and has been effectively implemented and monitored; and 6) There is no significant doubt about the ability of the Company to continue as a going concern 7) The CEO and CFO have certified to the Board that they have reviewed the financial statements and affirm that these statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading, 8) The CEO and CFO have certified to the Board that they have reviewed the financial statements and affirm that these statements together present a true and fair view ‘of the company's affairs and ate in compliance with existing accounting standards and applicable Laws. 9) The CEO and CFO have further certified to the Board that there are, to the best of theirknowledge and belief,no transactions entered into by the company during the year which are fraudulent, illegal or in violation of the company's codes of conduct, 8. Other Regulatory Disclosures ‘+ The Company is aware of it various risks and concerns, mainly from the policy and regulatory fronts, and is prepared to meet those by systematic control. Different type of risk management has been disclosed in Note- 2.29 of financial statements. 2 annual report 20156 + Alltransactions with related parties have been made on a commercial basis and the basis was on the principle of ‘Arms Length Transaction” Details of related party and transactions have been disclosed in Note- 29 of Notes to the Financial Statements, ‘+ As per AS 1 Presentation of Financial Statements, no items of income and expense are to be presented as extraordinary gain or loss’ in the financial statements. As such no extraordinary gain or loss has been recognized in the financial statements; ‘+ No significant variations have occurred between quarterly and final results of the ‘company during 2015-16. ‘+ During the year, the Company has paid Board meeting attendance fees to the directors. The remuneration of Directors has been mentioned in Note- 44 (a) of Notes to the Financial Statements. ‘+ All significant deviations from the previous year in operating results of the ‘Company have been highlighted and reasons thereof have been explained, ‘+ The key operating and financial data forthe last five years have been disclosed in ‘Annexure-B, 9. Certification by the Managing Director and Chief Financial Officer ‘The report of the Managing Director (Chief Executive Officer) and the Chief Financial Officers placed in Annexure-C. 10. Board Meetings and Attendance During the year ended 30th June 2016, a total of five Board Meetings were held. The attendance of the Directors in the meeting are as follows: Name of the Directors Position Attendance the Board Meeting ‘Mrs. Hubbun Nahar Hoque Chairperson 0s ‘Mr. Mahmudul Hoque Managing Director 05 MecM.Abul Kalam Mazumdar Director 0s ‘Mr. Md. Abul Bashar Director 05 ‘Mr. Ahmad Ullah Independent Director 0s |ANLIMA YARN DYEING LIMITED11. Pattern of Shareholding (as on June 30, 2016) Name of Shareholders Status No. of Share Percentage Holding i) Directors: Mr. Mahmudul Hoque Managing Director 5,040,900 28.21% ‘Mrs. Hubbun Nahar Hoque Chairperson 2,665,000 14.91% Mr.M.Abul Kalam Mazumdar Director Nil > Mr. Md. Abul Bashar Director 2500, 0.01% Mr. Ahmad Ullah Independent Director Nil - li) Chief Executive Officer, Chief Financial Officer, Company Secretary, Head of Internal Audit and their spouses and minor children: Mr. Mahmudul Hoque Chief Executive Officer 5040900} 28.21% Mrs, Aniga Haque 360,000 2.019% Me. Ali M. Hague 360000 2.01% Mr.M.AbulKalam Mazumdar Chief Financial Officer Nil - Mr. M.Jahangir Alam Company Secretary Nil - Mr. Mohammad ArifHossain Head of Internal Audit Nil - ii) Executives: ‘Mr. Sumayel Muhammad Mallik Vice President (Production) Nil - Mr. Mohd, Nurun Nabi Asstt. Vice President (A & F) Nil Mr. Zahadul slam First Asstt. Vice President Nil - (Commercial) Mr. Md, Habibur Rahman First Asstt. Vice President (IT) Nil : Mr. Md. Mizanur Rahman Chow. First Asstt. Vice President Nil - (Marketing) iv) Other Related Parties: Parent Company/ Subsidiary | - Nil Associated Companies v) Voting interest: Shareholders holding 10% or more | ~ Nil voting interest in the company ‘ANLIMA YARN DYEING LIMITED 12. Corporate Governance Compliance Report ‘As per Bangladesh Securities and Exchange Commission Notification No. SEC/ CMRRCD/2006-158/134/Admin/44 dated 07 August 2012, the report on Corporate Governance Compliance is annexed in Annexure-D & E. 13. Acknowledgment ‘The Board of Directors express thelr deep appreciation for relentless support from various stakeholders and regulators including Bangladesh Securities & Exchange Commission, Stock Exchanges, Department of Customs and banks. ‘The management is hopeful of thelr support in future also, ‘The Board also expresses their profound gratitude for the performance of the management, officers staffs and workers whose continuing effort hashelped to achieve the present performance. It is hoped that the employees will continue to contribute their effort to run the company in a better way. On behalf of the Board of Directors Habba Ndot Hubbun Nahar Hoque Mahmudul Hoque Chairperson ‘Managing Director B annual report 2015-6Audit Committee Report For the ended year 2015-16 The Anlima Yarn Dyeing Limited has an Audit Committee as Sub Committee ofthe Board, reconstituted as per 8SEC's notification No. SEC/CMRRCD/2006-158/134/Admin/44 dated 7% ‘August, 2012 required as per Corporate Governance Guidelines of Bangladesh Securities and Exchange Commission (SEC). The Audit Committee consists ofthe following persons: Mr. Ahmad Ullah (Independent Director) =Chairman. Mr.M. Abul Kalam Mazumdar -Member Mr. Md. Abul Bashar -Member Mr.M. Jahangir Alam - Company Secretary The Scope of Audit Committee was defined as bellow: ‘The Committee evaluated and recommended to the Board to approve the quarterly, half-yearly and annual financial statements prepared for statutory purpose. The Committee also monitored and oversaw choice of accounting policies and principles, internal control isk management process, internal control, auditing matter, appointing and performance of external auditors. There was observation to carry on a supervision role to safeguard the system of governance, regulatory inspections and independence of statutory auditors, Activities carried out during the year: During the year under review, the Committee members met four times and decided to carry out the following key functions for continuous improvement: a. The Committee found in detail with auditors and members of management and monitored the status of implementation of aut action plans and provided guidance to ensure timely completion of action plans. b. Reviewed the quarterly, half yearly and annual financial statements of the company and recommended to the Board for consideration. . The Committee also approved the audit plan for 2015-16, monitored progress and recommended effective revisions when itis required d. The Committee reviewed the process of appointment and remuneration of external auditors, Ahmed Zaker & Co, Chartered Accountants for the year 2016-17 and made recom- mendation to the Board for approval €e, The Committee had overseen the compliance function, incidence reporting, task of the internal audit, financial report preparation, the external audit report and made recom- mendation for approval Hhusdedlalh ‘Ahmad Ullah Chairman Audit Committee 5 ‘ANLIMA YARN DYEING LIMITED annual report 2015165 Years' Statistics 16 annual report 2015.6 Wee Financial Position: 2ois16 [201815] 201s 14] 2012 7S |_a0TTI2 ‘Authorized Capital (000K 200000] 200,000| 200,000] 200,000] 200,000 Paid up Share Capital (000Tk 178678|__178678| _178678|___178.678| 178,678 Reserves and Surplus ‘000TK 10,965 70,965) 70,965) 35,595 18,074 ‘Shareholders’ Equity (000k 201,146 216231| 215,058| 214273] 196,752 Total Assets (000Tk 455,785| _436,907| 456,860] 499,466) 548,860 Fixed Assets -Comt (00Tk 639,206| 635,387 _635292| 631,863 631,828 Fixed Assets -Written Down Value (000TK 325,558] _341,858| _362,979| 382,188] 406,369, Net Working Capital (00K (o,908)|—(1o8,r14) | (i27,368)| _(157.229)] (172,827), Net Profit for the year (00TK 19997 19537 T5634) 24259| 21344 Results of Operation; 2015-16 201815__—«201S-14_—«-20IZTS__—«20TT-12 Revenue from Sales o0Tk | 217313] 228740] 229870, 242673] 239,971 ‘Gross Profit Margin % 20.60%] _19:76%| 20.98%] _2156%| 21.18% ‘Operating Profit % 12.65% | __1239%| 14.37% | _-1606%| 15.06% Net Profit after Tax % 9.2086 354% Bits] 10.00% 3.89% Earnings per Share Tk Tz 708 7.04] 136 119 "Dividend per Share Tk 1.00) 7.00 1.00 7.00) 1.00) Key Financial Rati BOIS 16—-2OTETS «OTE TA «BOT TS__—«aOTT- TZ ‘Current Ratio Times 05951 04631 04231 0.421 04531 Taventory Turnover Times 453 434 324) 3.06 278 Receivable Tumover Days 13776 775 7680 76.80 Tors Debt Equity Ratio Tk 7228 7822 819 S743 GE Return on Investment % T39% aT F08% 586% 85% Net Assets Value per Share Tk 1126 1114 1204 1198 TOT Market Value of Share (ason 30th June) | __Tk 2830 22.40 23:20 19.40 20.10 Dividend Yield % 35386 FAG% 31% 315% T58% Price Book Value Ratio Times 040 050 052 7 055 ‘Other Information: 2OIS16 2011S _——-a0TS 14 BOI TS_—_—-BOTT-IZ Total Shares No. | 17,867,800| 17,867,800] 17,867,800| 17,867,800] 17,867,800 Total Shareholders No. 3559 4047 4157 4452 4408. Number of Employees No, 279) 284 257 259) 263 ™ General shareholder @Tk 1.00 per share and Directors @TKO350 per share for 2015-16. ANLIMA YARN DYEING LIMITEDKey Performance Indicators Annexure-B (Contt.) 18 16 ra ry 10 5 ‘ANLIMA YARN DYEING LIMITED. annual report 2015.16Certificate to the Board of Directors on Compliance with the Condition no.6 of the Corporate Governance Guidelines of BSEC. 1, We the undersigned, do hereby declare that we have reviewed the financial statement for the year ended on 30 June, 2016 and to the best of our knowledge and belief: a) These financial statements do not contain any materially untrue statement or ‘omit any materia fact or contain statements that might be misleading; b) These statements together present a true and fair view of the company's affairs and are in compliance with existing accounting standards and applicable laws. 2.There are, to the best of our knowledge and belief, no transactions entered into by the Company during the year which are fraudulent, illegal or violation of the ‘company’s code of conduct. Mahmudul Hoque M.Abul Kalam Mazumdar Managing Director Chie! Financial Officer 8 annual report 201516 ANLIMA YARN DYEING LIMITEDShahadat Rashid & Co. ‘pies Om Sona Subie Smt, ORISA Sy SS (CERTIFICATE ON COMPLIANCE: OF CONDITIONS OF CORPORATE GOVERNANCE ‘OF ANLIMA YARN DYEING LIMITED [issued under Condition No.7 of Corprate Governance Guidelines of [SEC vide Notifeation No. SECICMRRCD 2006-58/134/Aamin/a dated 07 August 2012) ‘Wie have examines the compliance of conditions of corporate governance guielne ofthe Bangladesh Securtes and Exchange Commission by Ana Yam Dyeing Lined fr the yest ended 30 June 2016 a1 spulaed in cause 7() of the BSEC Natifeaton No. SECICMRACD/2006-158/134/Admin4 dated 07 August 2012 ‘Tae complance of conditions of corporate governance guidelines stated nthe aforesaid notfeatin and parting ofthe sats of camalancels the responsi ofthe Camaany’s management Our eamation forthe purpose of issuing hs certfeavon waste to the checking of procedures and implementations there, adapted by the company for nung the compliance of conaltons of corporate governance and correct reporting of Compliance statur on the attached statement on the base of evidence gathered and tepresentation received, Ths is 2 serutiny ana verification only and net an expression of ‘pinion or aust on tne Financ Statements ofthe Company. othe bestofourinformationand according tothe explanations given tous, we certfy that 2s teported onthe attached status of complance statement the Company has complied ‘withthe conetions of corporate governance stipulated in the above mentioned BSEC noteaton Date: October 25, 2016 Shahadat Rashid & Co Dhaka, Bangladesh Chartered Accountants 9 annual report 2015-16 ANLIMA YARN DYEING LIMITED.Corporate Governance Compliance Report Status of compliance with the conditions imposed by the Bangladesh Securities and Exchange Commission's Notification No. SEC/CMRRCD/2006-158/134/Admin/44 dated 7th August, 2012 issued under section 2CC of the Securities and Exchange Ordinance, 1969 is presented below: (Report under Condition No. 7.00) ondtion [Compliance Status (Put Vin | Remarks No. Title the appropriate colurmn) | (itary) ‘Complied_ [Nat Compe 1 Board of Directors (BOD) 1 Board size (Board members should not be less than 5 and more than 20) v 12 Tadependent Directors (1D): 1207 Tadependent Director atleast 1/5th of the total number of directors of the company. 2a) Does not hold any share or holds less then 1% shares of the total paid-up shares in the company v TUB) _ | Not connected with any sponsor/dlrector/shareholders who holds 196 or more shares ofthe total paid-up shares on the basis of family relationship v 1.2010. Does not have any relationship, whether pecuniary or otherwise, with the company or its subsidiary/ associated companies v Tati) a)__| Nota member director or officer of any stock exchange v T2line) | Nota shareholder, director or officer of any member of stock exchange or an intermediary ofthe capital market v T21i0f)_ | Nota partner or an executive or was not a partner or an executive during the preceding 3 (three) years of the concemed company's statutory aualt firm v Tati @)__ | Not be an independent director in more then 3 (three) listed companies v T2tinh)_ | Not been convicted by a court of competent jurisdiction as a defaulter in payment of any loan to a bank or a NBFI v 1.20) Not been convicted for a criminal offence involving moral turpitude v 0) Tadependent Director shall be appointed by the board of directors and approved or approval by the shareholdersinthe AGM | __W 12) The post of Independent Director(s) can not remain vacant for more than 90 (ninety) days v 72) Board shal lay down a code of conduct of all board members and annual compliance of the code to be recorded v 72) “Tenure of ofice of an independent director shallbe fora period of (three) years, which may be extended for (one)temony | __v 13 Qualification of Independent Director: 130) Independent Directors shall be Knowledgeable individuel with integrity to ensure compliance with financial, regulatory and corporate law and make meaningful contribution to business v 13) Experienced and educational background of Independent Directors v T3Ui)___| Special cases for relaxation of qualification of Independent Directors WA 20 annual report 201546 WA-WetApphable ANLIMA YARN DYEING LIMITEDCorporate Governance Compliance Report ico a Sole Condition [Compliance status (Put Jin [Remarks No. Tie the appropriate column) | (ifany) ‘Complied [Not Complied] a ‘Appointment of Chairman & CEO, Defining Rules 1S Inclusions in Directors Report to Shareholders: 130) Thdustry outlook and possible future developmentsin the industry V 0) Segment-wise or product wise performance v TSW) Risks and concems TS) Discussion on Cost of Goods sola, Gross Profit Margin and Net Profit Margin TSW) Discussion on continuity of any extra-Ordinary Gain or Loss v TS) Basis for related party transactions: v TS (wi)__| Utilization of proceeds from public issues, rights issues and or through any others WA 75 (will Explanation ifthe financial results deteriorated after the company goes for IPO, RPO, Rights Offer Direct Listing ete WA TS Explanation about significant variance occurs between Quarterly Financial Performance, Annual Financial statements WA TS 00) Remuneration to directors including Independent Directors 75 ()___| The financial statements present falry its state of affairs, result of is operations, cash flows and changes in equity. v TS (xi) Maintenance of proper books of Accounts TS (xii) | Appropriate Accounting Policies and estimates have been applied v 5 (xiv) Followed IAS/BAS/IFRS and BFRS in preparation of Financial statements V 75 (kv)__| Internal Control System has been effectively implemented and monitored v 75 iv) Ability to continue as a going concern v 75 (evil) | Significant deviations from the last years operating result v 5 (xvii) | Key operation and financial summarized data of at least preceding 5 (Five) years v TS (kix)__| Reasons fornot declared dividend WK 5 ba) | Number of Board meetings held during the year and attendance by the Directors 1.5 Goxi)__ | Pattern of Shareholding (Along with name wise details) 1.5 bexi (@)_| Parent/Subsidiary/Associate companies and other related parties v 15 bax (B) | Directors, CEO, CS, CFO, HIA and thelr spouses and minor children v 15 pexi)(e)_| Executive: v 7 bax) (| 1096 or mare voting interest 115 Goxil) | Appointment /reappointment of Directors: 1.5 beni) (@) | Resume of the Directors 1.5 bexil (6) | Expertise in specific functional areas 75 bexil () | Holding of directorship and membership of committees of the board other then this company NAA-Not Applicable ANLIMA YARN DYEING LIMITED annual report 201546Corporate Governance Compliance Report Naika Sodas Conaition Eemplance Status Put Vin [Remarks Ne. Tie the appropriate column) | (any) ‘Complied [Not Compl] A CFO; Head of Internal Audit & CS Ba ‘Appointment of CFO, HiAand CS 2 {FO and CS shal attend the meeting ofthe Board of Directors. 3 ‘Audit committee 300 ‘Auait Committee asthe sub-committee of the Board of Drectors T ti Assistance ofthe Audit Committee to Board of Directors v sti Responsibility ofthe Audit Committee to the Board of Directors v 31 Constitution of the Audit Committee S10 ‘Auait Committee composed 3 (Thvee) members 3.1(i)___ | Members ofthe audit committee have been appointed by the Board of Dectors v 3.1(i)__| Qualified members in audit committee v .1(w)___| Term and conditions of service of audit committee members v B.1(v) | Secretary ofthe audit cornmittee v B:1(vi) | Quorum ofthe audit committee v 52 Chairman of the Audit Committee EFA “The Chairman has been selected by the Board of Directors 52 (i) Role of Audit Committee 2 (ii) Chairman of the audit committee presentin the AGM 33 Role of Audit Committee: B30 ‘Oversee the financial reporting process v 3 (i) Monitor choice of the accounting policy and principals v 3 (i) | Monitor Internal Control Risk Management Process v 53 (w)__[ Oversee hiring and performance of external auditors v 3 (v] | Review the annual financial statements before submission to the board for approval v 53 vil Review the Quarterly and Half Yearly financial statements before submission tothe board for approval v 3:3 (il Review the adequacy of internal audit function v 3 (vil) | Review statement of significant related party transactions v 3-3 (ix) | Review Management letters Letter of internal control weakness issued by statutory auditors v 53) Disclosure about the uses/applications of funds raised by PO/RPO/RIght issue ZN 3.4 Reporting of the Audit Committee: Baa Reporting tothe Board of Directors v annual report 2015.46 NA- Not Applicable ANLIMA YARN DYEING LIMITEDCorporate Governance Compliance Report ‘Condition [Compliance Status Put Vin [Remarks No. Title the appropriate column) | (ifany) ‘Complied_[Nat Compled 541) _ | Activities of audit committee shall be reported to the Board of Directors v 4:1 Ga) | Conflicts of interests 3.4.1 WD(B) | Suspected or presumed fraud of irregularity or material defectin the internal control system v [54-1 Gi)(e)_| Infringement of laws, rules and resolutions v [54:1 GD(@) | Any other matter disclosed to the Board of Directors 342 Reporting to the Authorities v 35 Reporting to the Shareholders and General Investors v a External/Statutory Auditors: ao ‘Appraisal or valuation services of Fairness opinions v ai Financial Information Systems design and implementation v 0) Book Keeping or other service related to the accounting and financial statements tw) Broker-dealer services v aw) ‘Actuarial Services: v aw Tatemal Audit Services avin Services that the audit committee determines v wily ‘Audit fr shall not hold any share ofthe company they audit v 5 Subsidiary Company: 50 ‘Compositions of the Board of Directors to be similar to holding company WA 5 ‘A least Tone) independent director to subsidiary company WR 5 Submission of Minutes to the Roding company WA SW) Review of Minutes of subsidiary company by the holding company WA 5M Review of Financial Statement by the holding company WR 6 Duites of CFO & CEO: 6a) Reviewed the materially untrue statement or omit any material fact of the financial statement v 605) Reviewed about compliance of the accounting standards v ein Reviewed about fraudulent, legal or violation of the company’s code of conduct v 7 Reporting and compliance of Corporate Governance: 7 Obtain certificate regarding compliance of conditions of Corporate Governance Guidelines v ih ‘Annexure attached in the Directors Report NIA-NotApalcable 3 ANLIMA YARN DYEING LIMITED annual report 2015.46_ Financial Report wnt ti NY: ae On. <.-eeAuditors’ Report to the shareholders We have audited the accompanying financial statements of Anlima Yarn Dyeing Limited, which comprise the Statement of Financial position as at June 30, 2016 along with Statement of Profit or Loss & Other Comprehensive Income, Statement of Changes in Equity and Statement of Cash Flows for the year then ended, and a summary of significant accounting policies and other explanatory notes. ‘ANLIMA YARN DYEING LIMITED ‘Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of ‘hese financial statements in accordance with Bangladesh Financial Reporting Standards, Companies Act 1994, The Securities and Exchange Commission's Rules 1987 & other applicable rules & regulations. This responsibility includes designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that ate free from material misstatement, whether due to fraud or error selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances ‘Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Bangladesh Standards on Auditing, those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. {An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or errot. In making those risk assessments, the auditor considers intemal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. ‘We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements give a true and fair view of the financial position of Anlima Yarn Dyeing Limited as of June 30, 2016 and of its financial performance for the year then ended in accordance with Bangladesh Financial Reporting Standards, The Secutities and Exchange Commissions rules 1987 and comply with the Companies Act 1994 and other applicable laws and regulations. We also report that alwe have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit and made due verification thereof; b) 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 those books; ) the company’s Statement of Financial Position, Statement of Profit or Loss & Other Comprehensive Income and Statement of Cash flows dealt with by the teport are in agreement with the books of accounts; 4) the expenditure incurred and payments made were for the purposes of the company’s business for the year. Ainuldabyl Ahmed Zaker & Co. Chartered Accountants Place: Dhaka Dated: October 27, 2016 25 annual report 201516Anlima Yarn Dyeing Limited 26 annual report 2015-16 Notes ASSETS Non-Current Assets Property, Plant and Equipment 3.00 Security Deposits 4.00 Current Assets Inventories 5.00 Sundry Receivables 6.00 Advance to employees & others 7.00 Cash and Cash Equivalents, 8.00 TOTAL ASSETS EQUITY AND LIABILITIES Shareholders’ Equity issued Share Capital 9.00 General Reserve 19.00 Dividend Equalization Reserve 11.00 Retained Earnings 1200 Non-Current Liabilities Term Loan 13.00 Deferred Tax Liability, 1400 Current Li Short Term Loan 15.00 Sundry Creditors 16.00 Other Liablities 17.00 Liabilities for Expenses 18.00 WPPF. 19:00 Provision for Current Tax 20.02 Dividend Payable 21.00 ‘TOTAL EQUITY AND LIABILITIES Net Asset Value per share 2801 ‘The accompanying policies & explanatory notes 1-31 form an integral part of the Financial Statements. ene eae Hubbun Nahar Hoque Mahmudul Hoque M.Abul Kalam Mazifndar ‘Chairperson, Managing Director Chief Financial Officer Statement of Financial Position As on June 30,2016 ‘Amount in Taka 30.06.2016 30.06.2015, 01.07.2014 326,702,793, 343,002,724 364,123,732 325,557,979 341,857,910] [— 362978918 11144814 11144814 129,081,727, 93,904,343. 92,745,320 38,093,292 “42,331,408 56,042,841 83,160,099 49,213,280, 34,442,917 963,838 881,091 1/410,595 5,864,498 1,478,564 848,967, 455,784,520 436,907,067 456,869,052 201,146,246 199,016,551 _197,843,838 178,578,000) [— 178578000 178,678,000 8,162,461 8,162,461 8,162,461 2,802,178 2,802,178 2,802,178 11,503,607 9(373,912 8201.19, 34,648,823 35,872,382 38,912,359 = 95 20: S575047 34,648,823 34,974,180 34,938,715 219,989,451 202,018,134 220,112,855 143,685,232 155,282.67 155,838,609 2,074,628 4,110,043, 2.132431 51,446,055 25,410,841 48,368,320, 16,237,001 71124743, 6.025.871 2327133, 1,150,808 1,131/406 93105,724 6420417 3,601,616 3,113,679 2518604 3,014,602 ou Ma. Abul Bashar Signed as per our separate report of same date Place:Dhaka Date-27th October, 2016 Director Dfirnslaly ‘Ahmed Zaker& Co, MJahangie Alam Company Secretary Chartered Accountants ‘ANLIMA YARN DYEING LIMITEDStatement of Profit or Loss & Other Comprehensive Income Anlima Yarn Dyeing Limited For the year ended June 30,2016 Notes ‘Amount in Taka 2015-16 2014-15 Net Sales Revenue 2200 217,313,142 228,739,935 Cost of Goods Sold 23.00 (172,540,655) (183,537,272) GROSS PROFIT 44,772 ABT 45,202,665 OPERATING EXPENSES Administrative Expenses 2400 (145215512) (13,773,473) Selling & Distribution Expenses 25.00 (2.761032) (8,090,524) Operating Profit 27,488,943, 338,666 Financial Expenses 26.00 (2,787,155) (4,162,003) Profit Before Contribution to WPPF 24,702,785 24,176,663 Contribution to W.PPF (1,176,323) (1,150,809) PROFIT BEFORE TAX 23,526,465 23,025,854 Tax Expenses: Current Tax 20.00 (3,854,327) (3,453,878) Deferred Tax 1400 325,357 (35,465 Net profit after tax for the year 19,997,495 19536511 Other comprehensive income - : Total Comprehensive Income 19,997,495 19,536,511 Earning Per Share 2701 1.12 1.09. Basic Earning Per Share (Restated) ‘The accompanying policies & explanatory notes 1-31 form an integral part of the Financial Statements. Hubbun Nahar Hoque Mahmudul Hoque M Abul Kalam Maziindor Md. Abul Bashar M Jahangir Alam Chairperson Managing Director Chief Financial Officer Director Company Secretary pete een tet ereerre DirmradRabyl Place: Dhaka ‘Ahmed Zaker & Co, Date: 27th October, 2016 Chartered Accountants 7 ‘ANLIMA YARN DYEING LIMITED annual report 2015-16Statement of Changes in Equity Anlima Yarn Dyeing Limited For the year ended June 30,2016 ‘Amount in Taka ShareCapital General Dividend Retained —_Total Equity Reserve Equalization Earnings Reserve Balance as on July 01,2015 178,678,000 8,162,461 2,802,178 9,373,912 199,016,551 Net Profitfor the year : : = 19,997,495 19,997,495 = (17,867,800) (17,867,800) Balance as on June 30,2016 178,678,000 8,162,461 2,802,178 11,503,607 | 207,146,246 ash Dividend (For the year 2015) 2 : For the year ended June 30,2015 ‘Amount in Taka ShareCapital General Dividend Retained -—_Total Equity Reserve Equalization Earnings Reserve Balance as on June 30,2014 178,678,000 8,162,461 2,802,178 25,415,438 215,058,077 Less: Prior year adjustment for deferred tax (17,214,239) (07,214,239) Balance as on July 1,2014 (Re-stated) 178,678,000 8,162,461 2,802,178 8,201,199 197,843,838 Net Profitfor the year - : ash Dividend (For the year 2014) - 19536511 19,536,511 Balance at on lune 30,2015 17e76,000 202,78 feraapeetatie Matmathirome Abul Minder We Ans Besar Kenge Shorea meager ht nanan oer Siete a Cae ee eee eee DEmidPalyl pace Dain hears s Date ocabe 2016 Chartered Accountants annual report 2015-16 ‘ANLIMA YARN DYEING LIMITEDAnlima Yarn Dyeing Limited ANLIMA YARN DYEING LIMITED. Cash Flow from Operating Activitie ash Collection from Customers & others Cash Payment for Cost and Expenses, Cash Generated from Opera Interest paid Income Tax Paid Net Cash Generated from Operations Cash Flow from Investing Activities: Factory Building and Civil Construction Purchase of Plant & Machinery Purchase of Electrical & Office Equipment Net Cash Used in Investing Activities Cash Flow from Financing Activities: Short Term Loan Repayment Long Term Loan Repayment Payment of Dividend Net Cash flow/(used) in Financing Activities Net increase/(D. Cash & Cash Equi se) in Cash & Cash Eq ‘Cash & Cash Equivalent at the beginning of year lent at the closi of year Net Operating Cash Flow per Share Habba Naat. Hubbun Nahar Hoque Chairperson Place:Dhaka Date-27th October 2016 Mahmudul Hoque Managing Director nt Tk. = M.Abul Kalam Mazifndar Chief Financial Officer Signed as per our separate report of same date. Cash Flow Statement For the year ended 30 June, 2016 ‘Amount in Taka Tk. 30.06.2016 30.06.2015, 183,366,323 D4 A99,076 (142,437,298) (164,024,398) 40,929,025 50,474,678 (2,787,155) (4,162,003), (11691020), (635,077) 36,972,849 45,677,598 G7.036) (1,264,607), 2 (2,496,900), (95,350) 13,818,543) 195,350) (9597445) sTsATI) (898,202), (3,075,442) (07,272.725) (18,363,798) 127,768,372) (44,952,651) 5,385,934 629,597 1478564 67. 6,864,498, 64, 2.07 2.56 our Ma. Abul Bashar M Jahangir Alam Director Company Secretary mubabyl ‘Ahmed Zaker & Co, Chartered Accountants 29 annual report 2015-16Notes to the Financial Statements 30 annual report 2015-16 1.1 Legal Status of the Company ‘The Anlima Yatn Dyeing Limited (the’company"),a member of Anlima Group, was incorporated in Bangladesh as a public limited company on October 24, 1995. It went for public issue of shares in 1997 and commenced commercial operation on March 30, 1998. The shares of the company are listed both in the Dhaka and Chittagong Stock Exchanges of Bangladesh. The company employed 279 employees as of June 30,2016. 1.2 Registered office of the company The registered office of the company is located at Suite # 4/3, City Heart, 67, Naya Paltan, Dhaka ~ 1000 and the factory is located at Kamapara, Savar, 1.3 Nature of Business Activities ‘The company owns and operates a 100% export oriented yarn and sewing thread dyeing facilities for use by the knitting, weaving, sweater and garments factories. 2.0 Basis of Preparation and Significant Accounting Policies 2.1 Basis of Measurement of Elements of Financial Position The financial statements have been prepared on the Historical Cost convention basis and therefore, do not take into consideration the effect of inflation. The accounting policies, unless otherwise stated, have been consistently applied by the Company and are consistent with that ofthe previous year. 2.2 Statement on Compliance with Local Laws ‘The financial statements have been prepared in compliance with the requirements of the Companies Act, 1994, The Securities and Exchange Rules, 1987 and other relevant local laws as applicable. 2.3 Statement on Compliance of Bangladesh Accounting Standards The financial statements have been prepared in accordance with the applicable Bangladesh ‘Accounting Standard (BASs) and Bangladesh Financial Reporting Standard (BFRSs) adopted by the Institute of Chartered Accountants of Bangladesh (ICAB) based on International Accounting Standards (IASs) and International Financial Reporting Standards (IFRS) ANLIMA YARN DYEING LIMITED2.4 Going Concern ‘As per BAS-1,a company is required to make assessment atthe end of each year to assess its capability to continue {a5 going concern, Management of the company makes such assessment each year. The company has adequate resources to continue in operation for the foreseeable future and has wide coverage of its liabilities. For this reason, the Directors continue to adept the going concern assumption while preparing the financial statements. 2.5 Accrual Basis The financial statements have been prepared, except ash flow information, using the accrual basis of accounting, 2.6 Reporting Period The Financial year of the company under audit cover for a period of 12 months effective from 01 July 2015 to June 30,2016. 2.7 Revenue ‘As per BAS 18 "Revenue! Revenue is recognized only ‘when it is probable that the economic benefit of such transaction has been derived. Revenue represents the invoice value of goods supplied to customers during the year. Revenue from sale of goods is recognized in the Statement of Profit or Loss & Other Comprehensive Income when the significant risks and rewards of ‘ownership have been transferred to the buyer. Revenue represents invoiced value of yarn dyeing services and ‘sewing thread sales, which are recognized when delivery invoices were made, ‘ANLIMA YARN DYEING LIMITED 2.8 Cash and Cash Equivalent and Statement of Cash Flows Cash and cash equivalents comprise cash in-hand and in current account that ate readily convertible to a known amount of cash, and that are not subject to significant risk of change in value. ‘The Statement of Cash Flows is prepared using the Direct Method as stipulated in Bangladesh Accounting Standards (BAS) No. 7"Statement of Cash Flows! 2.9 Inventories Inventories comprises of Raw materials, Work-in- Process, Finished goods. Raw materials have been valued at the lower of cost and net realizable value in compliance with the requirement of BAS 2 "Inventories The cost is calculated on weighted average method. Work-in-Process has been valued at prime cost basis as required by IAS-2 with proportionate addition of Factory Overheads. Finished goods have been valued at cost of ‘material and other production overhead attributable to bringing the goods to the stage of sale under the convention of BAS-2. 2.10 Property, Plant and Equipment Initial Recognition and measurement Property, plant and equipment are capitalized at cost of acquisition and subsequently stated at cost or valuation less accumulated depreciation in compliance with the requirements of BAS 16: Property, Plant and Equipment. ‘The cost of acquisition of an asset comprises its purchase price and any directly attributable cost of bringing the assets to its working condition for its intended use inclusive of inward freight, duties, non-refundable taxes and un-allocated expenditures etc. Subsequent Costs The cost of replacing part of an item of property, plant and equipments is recognized in the carrying amount of {anitem ifitis probable that the future economicbenefits ‘embodied within the part will flow to the company and its cost can be measured reliably. The costs of the day-to-day servicing of property, plant and equipment are recognized in the statement of comprehensive income as"Repair & Maintenance’ when itis incurred, Depreciation on Fixed Assets Depreciation is provided to amortize the cost or valuation of the assets after commissioning, over the period of their expected useful lives, in accordance with the provisions of BAS 16: Property, Plant and Equipment, Depreciation on addition of fixed asset begins when itis, available for use. Depreciation of an asset ceases at the ‘earlier of the date that the asset is classified as held for sale. Depreciation is charged on all fixed assets except land and land developments on Reducing Balance Method. Rates of depreciation are noted below: Particular of Assets Rate of Depreciation Factory Building and Civil Construction 2.50% Plant and Machinery 667% Electrical Installation 20.00% Furniture and Fixture 20.00% Office Equipment 20.00% Vehicle 20.0086 The gain or loss on disposal or retirement of assets is Included statement of profit or loss & other ‘comprehensive income when the item is disposed off/derecognized 3 annual report 2015-16Notes to the Financial Statements 2.11 Impairment of Assets Al assets, except inventory, arising from construction contracts and financial assets is assessed at the end of ‘each reporting period to determine whether there is any indication that an assets may be impaired. If any such indication exists the company assesses the recoverable amount, If, and only if the recoverable amount of an asset is less than its carrying amount, the carrying amount of the assets is reduced to its recoverable amount, The reduction is an impairment loss ‘An impairment loss is recognized immediately in statement of profit or loss & other comprehensive Income, unless the asset is carried at revalued amount in accordance with another standard, Any impairment loss of a revalued asset is treated as a revaluation decrease, No such assets have been impaited during the year Under audit and for this reason no provision has been made for impairment of assets, 2.12 Foreign Currency Transactions Foreign currency transactions are recorded, on initial Fecognition in the functional currency at the spot ‘exchange rate ruling at the transaction date. ‘Atthe end of each reporting period, in compliance with the provision of BAS 21:The Effects of Changes in Foreign Exchange Rates are determined as under: (a) Foreign currency monetary items are translated Using the closing rate (b) Non-monetary items that are measured in terms of historical costs in a foreign currency are translated Using the exchange rate at the date of the transaction. 2 annual report 20156 (6) Non-monetary item that are measured at fair value in a foreign currency is translated using the ‘exchange rate at the date when the fair value is determined, Exchange differences arising on the settlement of monetary items or on translating monetary Items at rate different from those at which they were translated Cn initial recognition during the period or in previous financial statements is recognized in profit or lossin the period in which they arise, There was no foreign currency balance as on balance sheet date. 2.13 Borrowing Cost Borrowing costs are interest and other costs that an entity incurs in connection with the borrowing of fund and are recognized as an expense in the year in which it 2.14 Risk and uncertainty for use of estimates (Provisions) ‘The preparation of Financial Statements in conformity with Bangladesh Accounting Standards requires ‘management to make estimates and assumptions that affect the reported amounts of revenue and expenses, assets and liabilities and disclosure requirements for contingent assets and liabilities during and the date of the financial statements, Due to inherent uncertainty involved in making estimates, actual result reported could differ from those estimates. In accordance with the guidelines in BAS - 37: Provisions, Contingent Liabilities and Contingent Assets! provisions are recognized in the following situations:~ © When the company has an obligation as a result of past events; © When it is probable that an outflow of resources ‘embodying economic benefits will be requited to settle the obligation;and ‘* Reliable estimate can be made of the amount of the operation. 2.15 Accruals & Deferrals Deferrals and accruals have been made as per the {guidance in BAS- 1 Presentation of Financial Statements. In order to meet their objectives, Financial Statements, except for cash flow statement and related information, are prepared on accrual basis of accounting, Under the basis, the effects of transactions and other events are recognized when they occur (and not when cash or its equivalent is received or paid) and they are recorded in the accounting records and reported in the Financial Statements of the years to which they relate. (Other Payables are not interest bearing and are stated at their nominal value. 2.16 Advances, Deposits and Prepayments Advances are initially measured at cost. After initial recognition advances are carried at cost less deductions for adjustments. Deposits are measured at payment value. Prepayments are initially measured at cost. After initial recognition prepayments are carried at cost less charges to the statement of comprehensive income. 2.17 General Reserve The amount represents reserve created during the tax holiday period from 1998 to 2003. [ANLIMA YARN DYEING LIMITED2.18 Financial Instruments Non-derivative financial instruments comprise accounts and other receivables, cash and cash equivalents, borrowings and other payables and are shown at transaction cost, om ‘An entity recognizes a financial assets or liabilities in its statement of financial position when, and only when, the entity becomes a party to the contractual provision of the instrument and subsequently recognized at their Amortized Cost. ial recognition Bills receivable are recognized at cost or net realizable value from the ordinary course of sales in the market whichever Is lower. Bills receivables from foreign ‘currency transactions are recognized into Bangladeshi Taka using exchange rates prevailing on the closing date of the accounts in accordance with BAS-21:The Effects of ‘Changes in Foreign Exchange Rates. 2.19 Segment Reporting ‘As the Company operates in a single industry segment, s0 no segment reporting is applicable for the Company asper BAS 14:"Segment reporting” 2.20 Related Party Disclosures The information as required by BAS 24:"Related party Disclosure" has been disclosed separately in notes -29 to the financial statements. 2.21 Corporate Tax (2) Current Tax: Provision for current income tax has been made 15% as ANLIMA YARN DYEING LIMITED prescribed in the Finance Act, 2015 on the accounting profit made by the company making some adjustment as per TO 1984 in compliance with BAS-12"Income Tax! Current taxis recognized in statement of profit or loss & ‘other comprehensive income except to the extent that it relates to business combination of item recognized directly in equity. {b) Deferred Tax Deferred tax liabilities are the amount of income taxes payable in future years in respect of taxable temporary differences. Deferred tax assets are the amount of income taxes recoverable in future years in respect of deductible temporary differences, Deferred tax assets and liabilities are recognized for the future tax consequences of timing differences arising between the carrying values of assets, liabilities, income and expenditure and their respective tax bases. Deferred tax. assets and liabilities are measured using tax rates and tax laws that have been enacted or subsequently enacted at the reporting date. The impact on the account of changes in the deferred tax assets and liabilities for the year ended June 30, 2016 has been recognized in the statement of profit or loss & other comprehensive income as per BAS-12 “Income Taxes’ 2.22 Contingent Assets and Liabilities Acontingent asset is disclosed when itis a possible that asset arises from the past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events ‘not wholly within the control of the entity. contingent liability is disclosed when itis a possible obligation that arises from the past events and whose existence will be confirmed only by the occurrence or non-occurrence of fone or more uncertain future events not wholly within the control ofthe entity. The company has no contingent assets or liabilities which require disclosure under BAS- 37.A contingent assets is disclosed as per BAS 37, where an inflow of or economic benefits is probable. A contingent liability is disclosed unless the possibility of an outflow of resources embodying economic benefits is remote, 2.23 Earnings per Share The company calculates Earnings per Share (EPS) in accordance with the requirement of BAS ~ 33:"Earning pper Share? which has been shown on the face of the Statement of Comprehensive income. Basic earnings This represents earings for the period ended June 30, 2016 attributable to the ordinary shareholders..As there was no preference dividend, minority interest or extra ordinary items, the net profitloss for the year has been considered as fully attributable to ordinary shareholders, Weighted Average Number of Ordinary Shares This represent the number of ordinary shares outstand- ing at the beginning of the year plus the number of ‘ordinary shares issued during the year multiplied by a time-weighting factor. The time-weighting factor is the numbers of days the specific shares are outstanding as a proportion of the total number of days in the period. Basic earnings per share This has been calculated by dividing the basic earning by 33 annual report 2015-16Notes to the Financial Statements the weighted average number of ordinary shares outstanding for the period, Diluted Earnings Per Share Diluted EPS is calculated if there is any commitment for issuance of equity shares in foreseeable future, ie, potential shares, without inflow of resources to the Company against such issue. This is in compliance with the requirement of BAS ~33, 2.24 Re-arrangement of figures Previous year's figures have been re-arranged whenever necessary to conform to the current year's presentation, During the year company has rearranged financial statements through restate for rearrangement of net deferred tax liabilities. In the process of restatement for rearrangement of the error as per BAS 8 “Accounting Policies, Changes in Accounting Estimates and Errors" the previous year's financial statements are rearranged. The management of the company also made prior year adjustment for Retained Earnings as per BAS -& Re-Statement While finalizing the financial statements for the year ended June 30, 2016, We have restated the preceding year's 2014 have been re-arranged to comply BAS 12" Income Taxes and in accordance with Para 22,42 & 49 of BAS-8 "Accounting Policies, Changes in Accounting Estimates and Errors’ During the year following accounting policies and errors have been restated in compliance with BAS-8 A) For fair presentation of the Financial Statement, amount for the year 2014 has been restated while 34 annual report 2015-16 calculating the Deferred Tax @15% on differences arising between the carrying values of assets account base and tax base to comply BAS-12"Income Taxes"The required Deferred Tax Liability Tk. 34,938,715 has been recognized in the Statement of Financial Position and Tk. 17,214,239 adjusted with Retained Earnings to consider retrospective effects to previous year's figures. (Details are given in the financial statements notes-14), B) Prior year ertor has been restated in accordance with Para 42 & 49 of BAS-8 “Accounting Policies, Changes in ‘Accounting Estimates and Errors! 2.25 Application of Bangladesh Accounting Standards (BASs & BFRS) The Financial Statements have been prepared in ‘compliance with requirement of BAS as adopted by The Institute of Chartered Accountants of Bangladesh (ICAB) and applicable in Bangladesh. The following BASs are applicable for the financial statements for the period under review: BAS- 1 Presentation of Financial Statements BAS-2 Inventories BAS-7 Statements of Cash Flows BAS-8 Accounting Policies, ‘Changes in Accounting Estimates and Errors BAS- 10 Events after the Reporting Period BAS- 12 Income Taxes BAS- 16 Properties, Plant and Equipment BAS- 18 Revenue BAS- 23 Borrowing Cost BAS. 24 Related Party Disclosure BAS- 32 Financial instruments Presentation BAS. 33 Earning Per Share (EPS) BAS- 39 Financial Instruments: Recognition and Measurement BFRS-7__ Financial Instruments Disclosures BFRS-13 Fair value measurement 2.26 Authorization date for issuing Financial Statements The financial statements were authorized for issue by Board of Directors on 27, October, 2016, 2.27 Reporting Currency The financial statements are prepared and presented in Bangladesh Currency (Taka), which is the company’s functional currency, 2.28. Structure, Content and Presentation of Financial Position Being the general purpose financial statements, the presentation of these financial statements is in accordance with the guidelines provided by BAS 1: “Presentation of Financial Statements’ A complete set of financial statements comprise: i) Statement of Financial Position as at June 30,2016. i) Statement of Profit or loss & Other Comprehensive Income for the year ended June 30,2016, il) Statement of Changes in Equity for the year ended June 30,2016. ‘ANLIMA YARN DYEING LIMITEDiv) Statement of Cash Flows for the year ended June 30, 2016, v) Notes comprising a summary of significant accounting policies and other explanatory information to the financial statements the year ended June 30, 2016. vv) Comparative Statement of Financial Position of July 1, 2014, 2.29 Risk Exposure 229.1 Exchange Rate Risk ‘Anlima Yarn Dyeing Limited is engaged in global trade as it procures its raw materials from overseas markets. Therefore, fluctuations in the related foreign currency rates may affect adversely to the company’s liquidity and profitability and expose a threat to the stability of the Company, Management Perception Anlima Yar Dyeing Limited settles its foreign transaction through US Dollars in case of both export and import. While the value of functional currency fluctuates, the loss or gain on currency fluctuation for export automaticaly sets off against the loss or gain on currency fluctuation for import. As the value of export is always greater than the value of import, some balance is created in the foreign currency transaction Furthermore, the Company is contemplating about setting a system of hedging on foreign currency transactions in the future, Movement in the exchange rate adversely may expose ‘the company to risks of foreign currency loss. ‘ANLIMA YARN DYEING LIMITED. 229.2 Industry Risks (a) Market demand ‘The products of Anlima Yarn Dyeing Limited are sold to international market. The Company's products are inputs to the country’s textile exporters. Their demand: for products mostly depends upon export orders of the textile sector. Any economic recession, changes in tastes and fashions of the consumers, national income and other related factors may cause to decline the market demand of the company products. ‘Management Perception ‘Anlima Yarn Dyeing Limited always gives values to its ‘customers’ satisfaction and changes in tastes and fashion. Therefore its expert team promptly dedicates their creativity and research work to respond any changes in customers demand and product diversifica- tions, (b) Competition Anlima Yarn Dyeing Limited is operating in a free market economy regime. The company might have to face stiff competition from its competitors. ‘Management Perception Bangladesh is the prime source of cheapest garments. in the world, earning comparative advantages for its industries over their global competitors. In addition, the management of Anlima Yarn Dyeing Limited employs their efficiencies, expertise and discretions to minimize the cost ofits products. (€) Rising of Raw Materials costs ‘The cost of yarn and other chemicals are rising gradually and drastically round the year. It may hamper the profitability of the company to a greater extent. Management Perception Anlima Yarn Dyeing Limited is aware of the continuing market situation of its raw materials. The management of Anlima Yar Dyeing Limited believes that long term planning for raw material management, exploring umber of global markets, job wise costing frits finished products and trustworthy relations with the suppliers and mitigate the risk of rising of materials cost 2.29.3 Risks steaming from technological changes Changes in technologies may reduce the cost efficiency of the company. Management perce} Anlima Yarn Dyeing Limited applies the latest technology in the yarn process in the production. The machineries and equipment of the company are also the latest invention in the sector which is imported from renowned manufacturers of the world, 2.29.4 Otherrisk factors (2) Political Unrest Bangladesh is prone to serious untest in the political condition embraced by Strike, Road-Block and many other politicized barriers to the business. Due to these factors it would stem the cost of the product upwards. 35 annual report 2015-16Notes to the Financial Statements ‘Management Percept During the last forty one years of post independence period, Bangladesh has gone through a variety of political situations. But presently, a sound political atmosphere is prevailing in the country. Both the ruling and ‘opposition parties are committed to the betterment of the country. Last democratic national assembly election and local council polls are instances of peaceful political situation in Bangladesh, {(b) Possible slowdown in economic growth in Bangladesh (Our performance and growth are dependent on the sound health of the Bangladesh economy. The economy could be adversely affected by various factors such as political or regulatory action, including adverse changes in liberalization policies social disturbances, terrorist attacks and ther acts of violence or war, natural calamities, commodity and energy prices and various other factors. Any significant change may adversely affect our business and economy significantly ‘Management Perception Bangladesh economy is booming for last few years. Consistent industrial {growth along with increased agricultural production has made the Per Capita Income higher than that of recent years. In addition, favorable government policies and industry friendly policies by other regulatory Bodies have proved to be congenial to the economy of the country {c) Natural calamities Bangladesh is a country where recurrent natural calamities take place ‘every year. It isa serious threat to the business. ‘Management perception This type of situation is totally beyond the control of human being. Though the management of Anlima Yarn Dyeing Limited has a very litle to do with, we can and should have some precaution measures to minimize the damage of the business in such situations. 36 annual report 2015-16 3.00 Property, Plant & Equipment Cost: Opening balance at cost ‘Add : Addition during the year ‘Add : Disposed / Sold during the year Total-A Depreciation: ‘Opening balance Charged during the year ‘Adjusted during the year Total-B Written Down Value (A- 4.00 Security Depo: Bangladesh Telecommunications Company Ltd (BTCL) Mobile Operators (Different Operators) Titas Gas Transmission and Distribution Co. Lt. Rural Electrification Board (REB) Central Depository Bangladesh Ltd. (CDBL) Total 5.00 Inventories This consists of Raw Materials 501 Finished Goods 5.02 Packing Materials 5.03, Work-in Process Total Item wise value and quantity of raw materials stock position are given below: ANLIMA YARN DYEING LIMITED ‘Amount in Taka 30.06.2016 30.06.2015 635387376 635,292,026 3,818,543, 95,350 (639,205,919 __ 635,387,376 639,205,919 __ 635,387,376 293,529,466 272,313,108 20,118,474 21,216,358 313,647,940 ~ 293,529,466 313,647,940 _ 293,529,466 325,557,979 57,910 18,500 18,500 15,000 15,000 459,325 459,325 351,989 351,989 300,000, 300,000 1144814, 7,144,814 33,201,051 34,369,839 3,124,287 7,286,219 913,790 675,350‘ANLIMA YARN DYEING LIMITED 5.01 5.02 5.03 6.00 6.01 30.06.2016 Quantity(Kg)__Value(Tk. Raw Mate Dyes 22,169 15,127,504 Chemicals 67,840 6,945,331 Grey Polyester Yarn 63,985 11128216 Total 753,994 33,207,051. 30.06.2015 Quantity(Kg) _Value(Tk.) 23,151 15,213,368 64,214 6,267,572 69517 12,888,899 156,882 _ 34,369,839 Finished Goods Yarn Dyeing 192,17 Sewing Thread 2,932,110) Total 3,124,287, PACKING MATERIALS Poly Bag -ST (kg) 886 213,105 Plastic Cone (PCs) 281,920 338,304 Paper Cone (PCs) 123,500 148,244 Paper Tube (PCs) 10,700 42,800 Poly Bag - YD (KG) 840. 150,689 Cartoon -ST (PCs) 546 10,781 Textile Wax (PCs) 1,584 9867 Total 419,976. 313,790, Sundry Receivables Opening ‘Add: Sales during the year Less: Received during the year Total Disclosure as per Schedule-xi, Part 1, of The Companies Act, 1994 Maturity less than 6 months Maturity more than 6 months Total Debts considered Good & Secured Debts considered Good without security Debts considered doubtful & bad Debts due by directors or other officers & staffs Debts due from companies under same management, Maximum debt due by directors or officers & staffs at any time 808,774 6,477,445, 7,286,219) 1,200 308,366 78,000 92,539 112500 157,500 6400 25,600 134 27,088 2,850 54,798 1,360 9459 202,444 675,350 49,213,280 34,442,917 217,313,142, __228,739,935, 7266526422 263,182,852 183,366323 __ 213,969,572 83,160,099. __ 49,213,280 183,160,099, 49,213,280 37 annual report 2015-16Notes to the Financial Statements 30.06.2015. 7.00 Advance to employee and Others Employee Loans & Advances Total 963,838, 881,091 091 7.01 Disclosure as per Schedule-XI, Part-I, of The Companies Act, 1994 Maturity less than 6 months 963,838 881,091 Maturity more than 6 months Total 963/838 881,091 Debts considered Good & Secured Debts considered Good without security - Debts considered doubtful & bad - : Debts due by directors or other officers & staffs 963,838, 881,091 Debts due from companies under same management - s Maximum debt due by directors or officers & staffs at any time 5 J 8.00 Cash & Cash Equivalent Cashin Hand 6314012 627,769 ‘Cash at Banks in Current Account 550,486 850,795 Dutch Bangla Bank Ltd. A/C No. - 101-110-25253 289,793 604,865 National Bank Ltd. - A/C No, 0233148219 3,525 4,790} Sonali Bank Ltd.- A/C No. 442633012934 253,493, 236,315 United Commercial Bank Ltd. ~ A/C No. 000111000 97386 3,675 4,825 Total 6,864,498 1478564 9.00 Share capital ‘Authorized Capital: 20,000,000 Ordinary Shares of Tk. 10/- each Issued, Subscribed & Paid-up Capital : 8,438,400 Ordinary Shares of Tk.10/- each fully paid-up in cash by Sponsors 84,384,000. 184,384,000 7,893,205 Ordinary Shares of Tk 10/- each fully 76,932,050 57,533,020 Paid-Up in cash by Institution 17,361,950 36,760,980 Total 178,678,000 178,678,000 No. of Shares Composition of Sharehol Sponsors 8,438,400 8,438,400) General Public 7,693,205, 5,753,302 Institute 1,736,195 3,676,098| Total 17,867,800| | 17,867,800 38 annual report 201546 ANLIMA YARN DYEING LIMITEDANLIMA YARN DYEING LIMITED Distribution Schedule - Disclosures under the Listing Regulations of Stock Exchanges: ‘The distribution schedule showing the number of shareholders and thelr shareholdings in percentage has been disclosed below as per requirement of the Listing Regulations of Dhaka and Chittagong Stock Exchanges: Shareholders range [No.of Shareholders] % of Shareholding Number of Shares * 2015-16 2015-16 2015-16 2014-15 10 500 2,652 6 1,045578| 1,122,392 501 to 5,000 669 7 1,178,426| —_1/980,774 5,001 to 10,000 101 4 751,049 ‘935,067 10,001 to 20,000 57 5 849361 1,083,898 20,001 to 30,000 31 4 774871 702,433 30,001 to 40,000 8 2 271,037 173,692 40,001 to 50,000 8 2 37,840 146,660 50,001 to 1,00,000 7 7 1,278,738 692,829 400,001 to 10,00,000 4 20 3,639,500] 3,328,655 ‘Over 10,00,000 2 43 7701400| 7,701,400 Total 3559 100% 17,867,800 | _ 17,867,800 Performance of Anlima's Shares at Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) during 2015-16 Particulars DSE GSE Code a1 25. Number of shares traded during the year 58,864,980 | 2,705,207 Price Movements: Highest 34 35 Lowest 19 19 Closing Price as on June 30,2016 28 27 Market Capitalization 505,658,740 | 489,577,720 Voting Rights: ‘The rights and privileges of the shareholders are stated in the Articles of Association of the company. 2015 30.06.20' 10.00 General Reserve ‘The amount carried forward from previous year. 8,162,461 8,182,461 Total 8,162,461 162,461 11.00 Dividend Equalization Reserve Balance carried from previous year 2,802,178 2,802,178 Total 2,802,178, 2,802,178, 39 annual report 201546Notes to the Financial Statements 12.00 Retained Earning ‘Opening balance ‘Add: Net Profit after Tax for the year Less: Cash Dividend Total 13.00 Long Term Loan Opening Balance ‘Add: Interest Charged during the year Less: Repayment during the year Net Loan Balance 14.00 Deferred tax Li ‘As at 30 June 2016 Property, plant & equipments exceptland at cost Total taxable temporary difference Tax on business income Closing deferred tax liabilties/{assets)-at cost Total closing deferred tax liabil Opening deferred tax liabilities/(as Total opening deferred tax liabi Deferred tax expense/{income)-at cost Total deferred tax expense/(income) ‘As at30 June 2015 Property, plant & equipments exceptland at cost Revaluation surplus-PPE Total taxable temporary difference Tax on business income Closing deferred tax liabilties/fassets)-at cost Total closing deferred tax labilities/(assets) Opening deferred tax labilties/{assets)-at cost Total opening deferred tax liabilities/(assets) (Restated) Deferred tax expense/{income)-at cost Total deferred tax expense/(income) 40 annual report 2015-16 Carrying amount 305,465,392 305,465,392 Smeune 321,765,323 EH e5 32S 30.06.2016 30.06.2015, 9373912 8,201,199, 19,997,495 19,536,511 29,371,407 27.737,710 17,867,800 898,202 3,973,644 11,798. 519813 ‘910,000 493,457 910,000 Tax base 74,473,241 74A73,281 Taxbase 88,604,124 04124 Taxable/deductible temporary difference 230,992,151 230,992,151 "586 823. 34,974,180 34,974,180 25,357) (325,357) Taxable/deductible temporary difference 233,161,199 T3367 19, 1596 34,974,180 34,974,180 34,938,715 938,715, (25.465), 135,465) [ANLIMA YARN DYEING LIMITED15.00 short Term Loan Cash credit Sonali Bank 145685782, 155284377 Dhaka Bank (550) (1,700) Total Tassesas 155702677 “* These are secured by first charge on the inventories, second charge on the fixed assets of the company and third charge on Apartments (4444 sft) at Conifer Tower. The interest rate applied to the loan is 13.00% per annum, 16.00 Sundry Creditors Sundry Creditors 2,074,628 4,110,043, Total (074,628 4,110,043, 17.00 Other Liabilities Anlima Textile Limited 51,446,055 25,410,841 Total 51,446,055 __ 25,410,841 18.00 Liabilities for Expenses & Provision Salary & Wages Payable 2,562,058 4,485,400 Office Rent Payable - 36,000 Provision for Utilities 1,908,894 2147221 Provision for Audit Fee 57,500 30,000 ‘Other Accrued Expenses 240,844 122396 Provident Fund 4,467,705 303,726 Total 237,001 7124,743, 19.00 WPPF Opening Balance 41,150,809 1,131,406, Add: Addition during the year 41,176,323 1,150,809 72,327,133, 2,282,215, Less: Paid during the year 1,406 Total 2327, 133, 1,150,809, 20.00 Provision for Current Tax 20.01 Current Tax Profit before tax 23,526,465 73,025,854 ‘Add: Accounting Depreciation 20,118,474 21,216,358. Less: Tax depreciation (17,949,426) _ (21,424,722) ‘Taxable income for the year 725,695,513 22,817,490 Rate of Tax: 1596 15% Tax on Business 3854327 3,422,623 ‘Add: Additional Provision Total Provision for the year 3,854,327 a ‘ANLIMA YARN DYEING LIMITED. annual report 2015-16annual report 201516 Notes to the Financial Statements 20.02 Provision for Current Tax Opening Balance ‘Add: Provision during the year Less: Tax Paid Total 21.00 Dividend Payable Opening Balance ‘Add: Cash Dividend Less: Paid During the year Balance on June 30, 2016 22.00 Turnover Yarn Dyeing Charges Sale of Sewing Thread Total 23.00 Cost of Goods Sold Raw Materials Consumed 2301 Packing Materials Consumed 23.02 Manufacturing Overhead 23.03 Depreciation Cost of Goods Manufactured ‘Add: Opening Work-In-Process Less: Closing Work-In-Process Cost of Production ‘Add: Opening Stack of Finished Goods Cost of Goods available for Sale Less: Closing Stock of Finished Goods Cost of Goods Sold 23.01 Raw Material Consumed Dyes 2301.01 Chemicals 23.01.02 Grey Polyester Yarn 23.01.03 Total 30.06.2016 30.06.2015, 6420417 3,601,616 3,453,878 —TT055,495 (635,077), 520417 2518604 3,014,602 17,867,800 17,867,800 20,386,404 — 20,882,402 (17,272,725), _ (18,363,798) 3,113,679) 18,604 Value(Tk.) Quantity(Kg)__Value(Tk.) 130,582,634 913,777 130,937,964 86,730,508 237,673, 97,801,971, 27,313,142, 51,450. _ 228,739,935 © 2015-16 2014-15 75962357 79,980,541 6,737,960 6,677,860 (66,622,148, 71,222,932 19,910,422 20,966,881 169,232,887 8,214 854,164 - TOE 378,723 — 178,848 214 7,286,219 11,975,277 175/664 942 3,124,287, 12,568,524 11,160,614 21,515,661 18,859,993 41,878,172. 7751962,357- ANLIMA YARN DYEING LIMITED.‘ANLIMA YARN DYEING LIMITED 23.01.01 Dyes Opening Inventory ‘Add: Purchase Available for use Less Closing Inventory Consumed 23.01.02 Chemicals Opening Inventory ‘Add; Purchase Available for use Less: Closing Inventory Consumed 23.01.03 Grey Polyester Yarn Opening Inventory ‘Add: Purchase Available for use Less: Closing Inventory Consumed 23.02 Packing Materials Consumed Opening Inventory Add: Purchase Available for use Less: Closing Inventory Consumed Quantity(Kg)__Value(Tk.) 23,151 15,213,368 25,400 12,482,660 48,551 27,696,028 22,169 15,127,504 26,382 12,568,524 64,214 6,267,572 619,642 22,193,420 (683,856 728,460,992 67,840 6,945,331 616,01 721,515,661 69517 12,888,899 223,678 40,117,489 293,195 53,006,388 63,985 11,128,216 229,210 _ 41,878,172 Quantityitg)__Value( The) 2595518956843 123997417139 Tase 6373382 Dis __ 15213368 iea05 Tease 52768741935 457383 163858630 sraos 577368 cia 6267372 $45,595 18,859,393 675931414916 229825 __48033917 Se7s18 62808833 sos? __12 588.99 228,001 __ 49,959,934 2015-16 2014-15 675350 439024 6976400 © 6914,76 7651.50 7353210 913.790, 75,350 3737960 __6577.860 B annual report 201516Notes to the Financial Statements © AmountinTaka 2015- 2014-15 23.03 Manufacturing Overhead Utilities 6257,246 8,240,856 Wages & Salaries 36,720,989 36,758,242 Office Consumable Expenses 776,145 1,950,640 Insurance Premium 4agor2 786,924 Factory Office Refreshment 471,553, 399,850 Conveyance 66,346 49,894 Factory Telephone & Fax 95,950 82,065 Printing & Publication 429,543 398,562 Interest on Working Capital Loan 21,360,304 22,555,899 Total 56,622,148 77,222,932 24.00 Administrative Expenses Depreciation 104,026 74843 Utilities 208,501 155,963 Office Consumable Expenses 161,561 273,452 Fuel Expenses 420,922 621224 Salaries, Allowances & Benefits 8312403, 7,782,409, Employer PF Contribution 1,889,172 11773353 Conveyance & Travelling 189,441 168,037 Office Rent, Rate & Taxes 144,000 144,000 Telephone, Mobile Bill & E-mail 538,110 si9814 Audit Fee 57,500 30,000 ‘Other Professional Fee 23,254 > Donation & Subscription 128,200 45,800 Stationery & Consumables 316,343 208,839, Office Expenses 361,335, 583,448 Office Refreshment 133390 146,786 License Renewal Fee 77035 61,110 ‘Annual Listing Fee 202,181 110,000 AGM. Expenses 1,184,138 774395 Board Meeting attending fee 69,000, Total 14521512 __13,773 ATS 25.00 Selling & Distribution Expenses Depreciation 104,026 174634 Fuel Expenses 695,084 783,501 Delivery Expenses 328414 387,766 Promotional Expenses 119612 183,000 Salaries, Allowances & Benefits 1,369,839 1,369,902 Conveyance & Travelling 111,730 155,721 Telephone & Mobile bill 36,000 Total 3,090,524 44 annual report 20156 26.00 Financial Expenses Bank Charges & Commission Bank Interest Total 2015-16 2014-15, 2,778,745 2254877 8410 1,907,126 2787155 4,162,003, 27.00 Basic Earnings Per Share (EPS) Disclosure Under BAS 33 "Earnings Per Share’ 27.01 Basic Earnings Per Share ‘The Computation of EPS is given below: Net profit for the year Weighted average number of Shares at June 30 ( Note-27.03) Basic EPS. 27.02 Diluted/Adjusted Earnings per Share: Net profit after tax Total existing number of shares Diluted/Adjusted Earning per Share 27.03 Weighted average / Total existing number of shares: ‘Opening number of shares outstanding [considered FV Tk.10 each] ‘Add - Issued during the year 27.04 Number of Outstanding shares ‘Opening number of shares outstanding [considered FV Tk.10 each] ‘Add Issued during the year 28.00 NAV per Shar 28.01 NAV per Share with revaluation: Shareholders’ Equity Number of ordinary Shares Outstanding Net Asset Value-NAV 19,997,495 19,536,511 17,867,800 17,867,800 1.09) 19,997,495 195536,511 17,867,800, 08 17,867,800 17,867,800 17,867,800 17,867,800 201,146,246 199,016,551 17,867,800 17,867,800, 11.26 114 [ANLIMA YARN DYEING LIMITED29.00 30.00 30.01 31.00 ANLIMA YARN DYEING LIMITED Related party disclosures: The details of related party transactions during the year along with the relationship is illustrated below in accordance with BAS 24 Name of the party Relationship with Company Nature of transaction Jul 1S-JunT6 Transacted amount in BDT Jal 4Jun ts Transacted amount in BDT ‘Mis, Hubbun Nahar Hoque Chairman & Shareholder Remuneration Board meeting fee 70,000 5 Mr. Mahmudul Hoque Managing Director & Shareholder | Remuneration ei Ei Board meeting fee 70/000 : MM Abul Kalam Mazumdar | Director Remuneration 1,107,769 Ei Board meeting fee 70,000 Mr.Md Abul Bashar Director & Shareholder Board meeting fee 70,000 : Mr. Ahmed Ullah Tndependent Director Board meeting fee 70,000 Ei MJahangir Alam ‘Company Secretary Board meeting fee 710,000 5 ‘Anlima Textile Limited Related party Tnter Company 31446055 | 25410841 Disclosure of managerial remuneration: The total amount of remuneration paid to the top five salaried Officers of the company during the years as follows ‘Name Designation JuttSJun'16 | Jul Jun'ts ‘Mr-Sumayel Muhammad Malik Vice President (Production) 7,649,000 1,622,400 ‘Mr.M Abul Kalam Mazumdar Chief Financial Officer 1,107,769 1,107,769 ‘Mr.Mohd. Nurun Nabi ‘Asstt Vice President (A &F) 580,500 481,000 Mr.Mé. Habibur Rahman First Asstt, Vice President (7) 580500 481,000 ‘Mr.MD. Mizanur Rahman Chow. First Ast. Vice President (Marketing) 521,000) 481,000 Aggregate amount of remuneration paid to all Officers during the accounting year is as follows : Particulars Nature of Payment Jul tS-Jun't6 | Jul4Jun'ts Directors Board meeting fee 60,000 : Directors Remuneration’ 1,107,769 1,107,769 Officers & Executives Salary, bonus & other allowances 14,411,802, 14,487,800) Event After Reporting Period ( Balance Sheet Date): The board of directors has recommended cash dividend for General Shareholders @ Tk 1 per share and for Directors @ Tk 0.50 Per ‘Share of fk 10 on paid up capital for the year ended June 30,2016 as per approval of Board Meeting held on October 27,2016 subject to the approval in the Annual General Meeting(AGM) 45 annual report 2015-16Notes to the Financial Statements Property, Plant & Equipment As on June 30,2016 (Amount in Taka) cost Depreciation Particulars Addition Totalasat_ _Rateof__ Opening Charged = Totalasat_—_itten Down during the duringthe 30.06.2016 deprecia Balance asat_duringthe 30.06.2016 Valueasat 01.07.2015 year yer Mion 01.07.2015 year 30.06.2016 Land and Land Development 20,092.587 20,092,587 : : 20092587 Factory Building and Civil Construction 168205 460 57,036 69,262,198 «250% © 17.89,794 1.283.490 «19,173,284 50,089,212 Plantand Machinery 513318895 1,264,607 514,583,502 6.67% 246,128,142 17,872,945 264,001,086 250,582,416 Electrical Installation 7,094,539 7094539 200% 6378327 143,282 .521,569, 572970 Furniture and Fixture s4org.744 14019744 20.00% 12,801,702 «243,608 13,045,310 974434 Office Equipment 7077504 121,650, 7,199,154 20.00% 6,261,997 «1724956 484,492 764,662 Vehicle 4578647 2375250 6953897 20.00% 4069505 402693 —4472,198 2,481,699, Total as on June 30,2018 35,387,376 _ 3,818,583 = 539205,979) 293,529,466 _20,118,474 325,557,979 Total as on June 30,2015 5292026 95,350 = Baa7a76 B72s1308 21216358 341,857,970 ‘The depreciation charges during the year has been allocated in the Statement of Profit or Loss & Other Comprehensive Income as below: Head of Recounts Factory] nt] Electrical] Furniture & | Equipment | Vehicle Total Building|_Machinery| Fixture Cost of Sales 12834s0[ 17872905| 143242 | 1aroa| 96248 | 402698| 19910422 ‘Administrative : : : 60902 | 43,124 = | 104026 Marketing E : : 69902 | 43,124 = | 104026 ‘Total 1,283,490| 17,872,945 | 143,242| 243,608 | 172,495| 402,693 20,118,474] 46 annual report 20156 ‘ANLIMA YARN DYEING LIMITEDAnlima Yarn Dyeing Limited Registered Office: City Heart Suite # 4/3,67 Naya Paltan, Dhaka-1000, Ldie,O Aas Wwe ——___of shareholders of Anlima Yarn Dyeing Limited hereby appoint Mr/Mrs/Miss/Ms of {as my/our proxy to attend and vote for me/us on my/our behalf at the 21% Annual General Meeting of the company to be held on Tuesday the December 20, 2016 at 10:30 am. at the Factory premises, Kamapara, Savar, Dhaka, ‘As witness my hand this dayof at, Revenue Stamp Tk.20/- Gignature of the Proxy) ‘Signature of the Shareholder 80/ Folio Dated Signature Verified ‘Rathorized Signatory ‘A member ented to atten and vote a he annual genetal mesting may appoint a proxy to attend and vote in his/her steve The roy form, uly stamped must be deposited a the Registered Offs af the company nat ater than 48 hours before the tine feed Anlima Yarn Dyeing Limited Registered Office: City Heart, Suite # 4/3,67 Naya Paltan, Dhaka- 1000, ars Pye eel | hereby record my attendance at the 21% Annual General Meeting of the company to be held on December 20,2016. Name of the Shareholder/Proxy BO/ Folio No. (Signature of the Shareholder/Proxy} Dated Shareholders attending the meeting in person or by proxy are requested 10 complete theattendance stp and hang rover atthe entanc ofthe meeting hall The respected shorenelder ae requeseatonateREGISTERED OFFICE . Suite # 4/3, City Heart Anlima Yarn Dyeing Limited | 67 Naya Paltan, Dhaka - 1000. Phone: 93498814, 9341373, 8317216 Fax: 88-02-8317184 E-mail: info@anlima.com Web site: httpl/www.anlima.com senuinaga | FACTORY Kamapara, Savar, Dhaka-t340. Phone: 7745007, 7746095, 7745009 Fax: 88-02-7748614, 7746095