2008 annua l report - beximco syntheticsbeximcosynthetics.com/ar_bsl08.pdfcompany profile corporate...

2008 Annual Report

Each of our activities must benefit and add value to the common wealth of oursociety. We firmly believe that, in the final analysis we are accountable to each of

the constituents with whom we interact; namely: our employees, our valuedcustomers, our business associates, our fellow citizens and our Shareholders.

Mission

2 Company Profile

3 Notice of the Eighteenth Annual General Meeting

4 Operational & Financial Highlights

5 Corporate Directories

6 Chairman’s Statement

10 Corporate Governance

12 Report of the Directors’

15 Five Years Statistics

16 Value Added Statement

17 Seventeenth Annual General Meeting

19 Auditor’s Report

20 Balance Sheet

21 Profit & Loss Account

22 Statement of Cash Flows

23 Statement of Changes in Equity

24 Notes to the Financial Statements

Annexed Proxy Form

Contents

2

Beximco Synthetics Limited Annual Report 2008

Company Profile

Corporate Headquarters : 17 Dhanmondi R/A, Road No. 2, Dhaka-1205, Bangladesh, Phone : 880-2-8618220 (7

lines), E-mail : [email protected], Web Site : http://www.beximco.org, Operational Headquarters :

Kabirpur, Savar, Dhaka-1344, Phone : 880-2-7701168-70, Web Site : http://www.beximcosynthetics.com, Factory :

Kabirpur, Savar, Dhaka, Year of Establishment : July 18, 1990, Commercial Production : July 01, 1994, Nature of

Activities : Manufacturing & marketing of Polyester Filament Yarn, namely Partially Oriented Yarn (POY) and Drawn

Texturising Yarn (DTY), Company Status : Public Listed Company, Stock Exchange Listing : Dhaka & Chittagong,

Authorized Capital : 1,000 million Taka, Paid up Capital : 482.155 million Taka, Number of Shareholders : 11,625

3

Notice of the Eighteenth Annual General Meeting

BEXIMCO SYNTHETICS LIMITED17, Dhanmondi R.A, Road No. 2, Dhaka-1205

NOTICE OF THE EIGHTEENTH ANNUAL GENERAL MEETING

Notice is hereby given that the EIGHTEENTH ANNUAL GENERAL MEETING of the Shareholders of BeximcoSynthetics Limited will be held on Tuesday, the 16th June, 2009 at 3.30 p.m. at 1, Shahbag C/A, Dhaka to transactthe following business:

AGENDA

1. To receive, consider and adopt the Audited Financial Statements of the Company for the year ended 31stDecember, 2008 together with reports of the Auditors and the Directors thereon.

2. To elect Directors.

3. To declare 15% Stock Dividend.

4. To appoint Auditors for the year 2009 and to fix their remuneration.

5. To transact any other business of the Company with the permission of the Chair.

By order of the Board,

Dated : 13th May, 2009 (MD. ASAD ULLAH, FCS)Company Secretary

NOTES:

(1) The Record Date shall be on 25th May, 2009. The Shareholders whose names will appear in the Share Registerof the Company or in the Depository Register on that date will be entitled to attend at the Annual GeneralMeeting and to receive the dividend.

(2) A member entitled to attend and vote at the General Meeting may appoint a Proxy to attend and vote in his/herstead. The Proxy Form, duly stamped, must be deposited at the Registered Office of the Company not later than48 hours before the time fixed for the meeting.

(3) Admission to the meeting room will be strictly on production of the attendance slip sent with the Notice as wellas verification of signature of Member(s) and/or proxy-holder(s).

Beximco Synthetics LimitedAnnual Report 2008

4

2008 2007 Changes in 2008

Amount %

Turnover 932,832 790,103 142,729 18.06Profit from operation 122,656 71,335 51,321 71.94Net profit before tax 22,218 (33,563) 55,781 166.20Net profit after tax 18,885 (35,567) 54,453 153.10Earnings per share 3.92 (7.38) 11.30 153.12Stock dividend (%) 15.00 10.00 5 50.00Total Assets 2,988,593 2,324,154 664,439 28.59Shareholders' Equity 2,017,766 850,800 1,166,966 137.16

all figures in thousand Taka except indicate otherwise.


Operational & Financial Highlights

932,8322008

2007

TURNOVER

790,103

2007

2008

EARNING PER SHARE

3.92

(7.38)

2007

2008

NET PROFIT

18,885

(35,567)

5


Corporate DirectoriesBOARD OF DIRECTORS

A S F RahmanChairman & Managing Director

Salman F RahmanVice Chairman

Iqbal AhmedDirectorNominated by New Dacca Industries Ltd.

M A QasemDirectorNominated by New Dacca Industries Ltd.

O K ChowdhuryDirectorNominated by Beximco Holdings Ltd.

Md. Alauddin KhanDirectorNominated by Investment Corporation of Bangladesh(Trustee of Debenture Holders)

Dr. Abdul Alim KhanIndependent Director

Md. Asad Ullah, FCSCompany Secretary

6


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8


OPERATIONS

The year 2008 was characterized by continuedglobal uncertainty arising from both political andeconomic turbulences in different parts of theworld. The business of Polyester Filament Yarn inthe Asian countries also remains unchanged likeprevious year. Continuous price increases of rawmaterials in the international market andshortage of gas supply from Titas GasTransmission & DistributionCompany caused majorproduction losses to theCompany. Beside these, the yearexperienced anotherunprecedented increasing of priceof essential commodities andcontinuous decreasing ofpurchasing power of lower andmiddle class income group likeprevious year also hamper theproductivity and profitability of the company.

In spite of all adverse situations, your company’sperformance in terms of production, turnover andprofitability was considered to be satisfactory. Inthe year 2008, Beximco Synthetics Limited (BSL)

produced 5,725,239 kg of 115 Denier POYFilament Yarn against 5,610,302 kg of previousyear. Full quantity of this POY have beenconverted into 75 Denier Drawn Texturised Yarn(DTY). The total DTY production for the yearwas 5,422,499 kg both in Intermingle and Non-Intermingle form as against 5,416,768 kg of

previous year. During the year underreview, turnover, in terms of

quantity as well as value hasbeen increased significantly.Total turnover grew to Tk.928,87 million from Tk.789.56 million representinggrowth rate of 17.64%compared to 2007. Duringthe year, the Company has

earned a net profit after tax ofTk. 18.89 million as against

losses in the previous year.

MARKETING

Improved network between traders and consumersand impressive after sales service have made itpossible for our marketing team to maintain themarket leaders role. As a result, we have been able

Dear Shareholders,

It gives me immense pleasure to present before you the Eighteenth Annual Report of BeximcoSynthetics Ltd. along with the Audited Financial Statements and the Auditors’ and Directors’Reports thereon, for the year ended December 31, 2008.

Chairman's Statement

9


to keep our market share intact like previous yearunder adverse scenario. Under the presentcompetitive market scenario, your company’syearly sales price was indeed the highest among allbrands in every denier category. This was possiblebecause of our commitment to the customers andcontinuous effort to improve the quality ofproduct and services. Inshallah, we hope to carryon our effort through the year 2009 at the highestpace and efficiency.

HUMAN RESOURCES DEVELOPMENT

In today’s global competition, development ofhuman resource is very high on your Company’spriority list. BSL makes considerable efforts andinvestments in acquiring, developing and retainingthe talented and dynamic professionals. A goodworking environment reflects and promotes a highlevel of loyalty and commitment from theemployees. Keeping this in mind, your Companyhas been always emphasizing the utmostimportance of continuous development of thismost important resource of the Company.

CONTRIBUTION TO NATIONAL EXCHEQUER

During the year under report, BSL contributed anamount of Tk. 75.30 million to the national exchequerin the form of VAT, Duties and Income Tax.

DIVIDEND

Keeping in view the performance of the Company,the Board of Directors has recommended 15%stock dividend (bonus share) for the year ended 31December, 2008.

CONCLUSION

On this occasion, I would like to take thisopportunity to express my sincere appreciation toall our valued customers, government agencies,banks, financial institutions, suppliers and valuedshareholders for their kind support and all outcooperation. With everybody’s support, we areconfident of continuing to grow and make betterprofits in future.

I sincerely thank all of you and look forward toyour co-operation in the years to come.

A S F RahmanChairman

30 April, 2009Dhaka

10

INTERNAL FINANCIAL CONTROL

The Directors are responsible for the Company’s system of internal financial control.Although no system of internal control can provide absolute assurance against materialmisstatement and loss, the Company’s system is designed to provide the directors withreasonable assurance that problems are timely identified and dealt with appropriately.Key procedures to provide effective internal financial control can be described infollowing heads:

Management Structure - The Company is operating through a well definedmanagement structure headed by a Chief Executive Officer (CEO) under whom thereare Senior Mangers for various departments and according to hierarchy, various senior& mid level management staffs. The Chief Executive Officer and the Senior Mangersmeet at regular interval represented also by Administration, Finance, Marketing &Production heads.

Financial Reporting – There are comprehensive management reporting disciplineswhich involve the preparation of annual budgets by all operating departments.Executive management reviews the budgets and actual results are reported againstthe budget and revised forecasts are prepared at regular intervals.

Asset Management – The Company has sound asset management policy, whichreasonably assures the safeguarding of assets against unauthorized use or disposition.The Company also follows proper records and policy regarding capital expenditure.

Functional Reporting – In pursuance with keeping the reliability of financialinformation used within the business or for publication, the management hasidentified some key areas which are subject to monthly reporting to the chairman ofthe board. These include monthly treasury operations, Financial Statements. Otherareas are also given emphasis by reviewing on quarterly basis. These includeinformation strategy, environmental and insurance matters.

STATEMENT OF DIRECTOR’S RESPONSIBILITIES FOR PREPARATION ANDPRESENTATION OF THE FINANCIAL STATEMENTS

The following statement is made with a view to distinguishing for shareholders therespective responsibilities of the directors and the auditors in relation to the financialstatements.

The Companies Act, 1994 requires the directors to prepare financial statements foreach financial year which give a true and fair view of the state of affairs of the Companyas at the end of the financial year and of the profit for the year to the date. In preparingthose financial statements the directors are required:

e

to select suitable accounting policies and the apply them in a consistent manner;

e

to make reasonable and prudent judgements and estimates where necessary;


The maintenance of effectiveCorporate Governance remains a

key priority to the Board ofBeximco Synthetics Ltd.

Recognizing the importance ofit, the board and other senior

management remainedcommitted to high standards of

Corporate Governance. Toexercise about clarity of director’s

responsibilities towards theshareholders, Corporate

Governance must be dynamicand focus to the business

objectives of the Company andcreate a culture of openness and

accountability. Keeping this inmind, clear structure and

accountabilities supported bywell understood policies and

procedures to guide the activitiesof Company’s management,

both in its day-to-day businessand in the areas associated with

internal control have beeninstituted.

Corporate Governance

11

e

to state whether all applicableaccounting standards have beenfollowed, subject to any materialdepartures disclosed and explainedin the notes to the financialstatements;

e

to take such steps as are reasonablyopen to them to safeguard the assetsof the Company and to prevent anddetect fraud and other irregularities;

e

to ensure that the Company keepsaccounting records which disclosewith reasonable accuracy thefinancial position of the Companyand which enable them to ensurethat the financial statements complywith disclosure requirements to theCompanies Act 1994 and theSecurities and Exchange Rules 1987;and

e

to prepare the financial statementson a going concern basis unless it isinappropriate to presume theCompany will continue in business.

BOARD COMMITTEES

The Board – The board is responsible tothe shareholders for the strategicdevelopment of the Company, themanagement of the Company’s assets in away that maximizes performance and thecontrol of the operation of the business.

The board of directors is responsible forapproving Company policy andresponsible to shareholders for theCompany’s financial and operationalperformance. Responsibility for thedevelopment and implementation ofCompany policy and strategy, day-to-dayoperational issues is delegated by theboard to the management of the Company.

Board Structure and Procedure – Themembership of the board during the yearended 31 December 2008 stood at sevendirectors. All directors are equallyaccountable at law to the shareholders forthe proper conduct of the business.

The Company’s Board currently comprisesthe Chairman (who is also ManagingDirector of the Company), Vice-Chairmanand other five directors. Beximco HoldingsLimited and New Dacca Industries Limitednominate three directors & InvestmentCorporation of Bangladesh (ICB), trustee of

the institutional debenture holdersnominate one director. The other Directoris an Independent Director. The name ofthe Directors appears on page 5.

Appraisal Review Board – Appraisalreview board annually appraises theperformances of every level of employeesas per established policy. It determines theannual increment, promotion andparameter of remuneration for all level ofexecutives.

GOING CONCERN

After making enquiries, the directors, atthe time of approving the financialstatements, have determined that there isreasonable expectation that the Companyhave adequate resources to continueoperation for the foreseeable future. Forthis reason, the directors have adopted thegoing concern basis in preparing thefinancial statements.

RIGHTS AND RELATIONS WITHSHAREHOLDERS

Control Rights of Shareholders – Atannual general meeting, shareholdershave rights of participation andsupervision. They have the right to askquestions of and request of informationfrom the board regarding item on theagenda to the extent necessary to make aninformed judgment of the Company’saffairs.

Relations with Shareholders – The annualgeneral meeting are used as an importantopportunity for communication with bothinstitutional and general shareholders. Inaddition, the Company maintains relationswith shareholders through the corporateaffairs secretarial department.

The following information can be addressedthrough the secretarial department:

e

Dividend payment enquires

e

Dividend mandate instruction

e

Loss of share certificate/dividendwarrants

e

Notification of change of address

e

Transfer of shares

The board believes that it is important torespond adequately to all the queries ofboth institutional and general

shareholders. At the AGM the shareholdersare offered an opportunity to raise with theboard any specific question they haveconcerning the Company. In addition,meetings are also held between individualdirectors and institutional shareholders atvarious times during the year.


12

Dear Shareholders,The Directors have pleasure in presenting their report and auditedfinancial statements of the Company for the year ended 31 December2008 together with the auditor’s report thereon in the 18th AnnualGeneral Meeting.

PRINCIPAL ACTIVITY:

The principal activity of the company was production & sales of highquality Polyester Filament Yarn namely, Partially Oriented Yarn (POY) andDrawn Texturising Yarn (DTY).

FINANCIAL RESULTS & APPROPRIATIONS:

The financial results and recommended appropriations are stated below:

Tk. in '000

2008 2007

Net Profit (Loss) after tax 18,885 (35,567)

Prior years’ adjustment 7,537 858Transfer from Tax Holiday Reserve 152,339 -Profit Brought Forward 42,589 121,130

Profit Available for Appropriations 221,350 86,421

Recommended AppropriationsStock Dividend @ 15% (2007: 10%) 72,323 43,832Balance Profit Carried Forward 149,027 42,589

221,350 86,421

DIVIDEND

The Board of Directors have recommended 15% stock dividend for the yearended 31 December 2008 for your approval in the Annual General Meeting.

DIRECTORS

Mr. A B Siddiqur Rahman, Director nominated by New Dacca IndustriesLimited resigned w.e.f. 30.04.2009.

In accordance with Articles 124 & 125 of the Articles of Association of thecompany, Mr. Salman F Rahman retires by rotation and being eligibleoffer himself for re-election.

Mr. M A Qasem being the nominee of New Dacca Industries Limited alsoretires by rotation as per the said Articles and being eligible offer himselffor re-election.

BOARD MEETINGS AND ATTENDANCE

During the year, 5 (five) Board Meetings were held. The attendance recordof the Directors is as follows:

NAME OF DIRECTORS MEETINGS ATTENDED

Mr. A S F Rahman - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1Mr. Salman F Rahman - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1Mr. Iqbal Ahmed - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 5Mr. M A Qasem - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 5Mr. O K Chowdhury - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 5 Mr. A B Siddiqur Rahman - - - - - - - - - - - - - - - - - - - - - - - - - - - - 5Mr. Md. Alauddin Khan (ICB Nominated Director) - - - - - - - - - 2Dr. Abdul Alim Khan (Independent Director) - - - - - - - - - - - - - 1

BOARD AUDIT COMMITTEE

During the year, the Committee was further reconstituted with Dr AbdulAlim Khan, Independent Director as Chairman and Mr. O K ChowdhuryFCA and Mr. M A Qasem, Directors as Members. The Committee reviewedthe Financial Statements for the year ended 31 December 2008 togetherwith Auditors’ Report thereon; and also unaudited Half-yearly Report forthe half-year ended 30 June 2008.

CORPORATE FINANCIAL REPORTING

The Company has compiled with all the requirements of CorporateGovernance as required by the Securities and Exchange Commission.Accordingly the Directors are pleased to confirm the following:

(a) The financial statements together with the notes thereon havebeen drawn up in conformity with the Companies Act 1994 andSecurities and Exchange Rules 1987.These statements presentfairly the Company’s state of affairs, the result of its operations, cashflow and changes in equity.

(b) Proper books of accounts of the Company have been maintained.

(c) Appropriate Accounting Policies have been consistently applied inthe preparation of financial statements and the accountingestimates are based on reasonable and prudent judgment.

(d) The International Accounting Standards, as applicable inBangladesh, have been followed in the preparation of financialstatements.

(e) The systems of internal control are sound and have been effectivelyimplemented and monitored.

(f ) There are no significant doubts upon the Company’s ability tocontinue as a going concern.


Report of the DirectorsFor the year ended 31 December, 2008

13

(g) The profitability of the Company has increased, mainly from additional revenues and lowercosts and expenses.

(h) The key operating and financial data for the last five years is annexed.

(i) The pattern of shareholding is as follows:

NAME WISE DETAILS SHARES HELD

i) Parent/Subsidiary/Associate Companies:New Dacca Industries Limited - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -381,131Beximco Holdings Ltd. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -85,225

ii) Directors, Company Secretary, Chief Financial Officer,Head of Internal Audit and their spouses and minor children:Mr. A S F Rahman, Chairman & Managing Director - - - - - - - - - - - - - - - - - - - - - - - -807,285Mr. Salman F Rahman, Vice Chairman - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -747,418Chief Executive Officer, spouse and minor children - - - - - - - - - - - - - - - - - - - - - - - - - - -NilCompany Secretary, spouse and minor children - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -NilChief Financial Officer, spouse and minor children - - - - - - - - - - - - - - - - - - - - - - - - - - - -NilHead of Internal Audit, spouse and minor children - - - - - - - - - - - - - - - - - - - - - - - - - - - -Nil

iii) Executives: - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -Nil

iv) Shareholders holding ten percent (10%) or more voting interest in the companyMr. A S F Rahman, Chairman & Managing Director (mentioned in Sl. No. (ii) - - - -807,285Mr. Salman F Rahman, Vice Chairman (mentioned in Sl. No. (ii) - - - - - - - - - - - - - -747,418

ICB Unit Fund - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -516,961

CORPORATE GOVERNANCE COMPLIANCE REPORT

In accordance with the requirement of the Securities and Exchange Commission, “CorporateGovernance Compliance Report” is annexed.

AUDITORS

The retiring Auditors, M/S. M. J. Abedin & Co., Chartered Accountants, National Plaza (6th Floor),109, Bir Uttam C.R. Datta Road, Dhaka-1205 have expressed their willingness to continue in officeof the Company and being eligible, offer themselves for re-appointment as Auditors of theCompany for the year 2009.

CONCLUSION

The Directors wish to express their sincere appreciation to all the employees of the Company fortheir contribution and at the same time thank all our stakeholders and customers for theircontinued support.

On behalf of the Board

A S F Rahman Chairman & Managing Director

30 April, 2009Dhaka


14

Corporate Governance Compliance ReportStatus of compliance with the conditions imposed by the Commission’s Notification No. SEC/CMRRCD/2006-158/Admin/02-08 dated

20th February 2006 under section 2CC of the Securities and Exchange Ordinance, 1969: (Report under Condition No. 5.00)

Condition Title Compliance Status ExplanationNo. (Put 4 in the appropriate column) for non-compliance

with the conditionCompiled Not Compiled

1.1 Board’s Size 4

1.2 (i) Independent Directors 4

1.2 (ii) Independent Directors Appointment 4

1.3 Chairman & Chief Executive 4

1.4 (a) Directors Report on Financial Statements 4

1.4 (b) Books of Account 4

1.4 (c) Accounting Policies 4

1.4 (d) IAS Applicable in Bangladesh 4

1.4 (e) System of Internal Control 4

1.4 (f ) Going Concern 4

1.4 (g) Deviations in Operating Results 4

1.4 (h) Key Operating and Financial Data 4

1.4 (i) Declaration of Dividend 4

1.4 (j) Number of Board Meetings 4

1.4 (k) Pattern of Shareholders 4

2.1 CFO, HIA & CS Appointment 4

2.2 Board Meeting Attendance 4

3.00 Audit Committee 4

3.1 (i) Composition of Audit Committee 4

3.1 (ii) Audit Committee Members Appointment 4

3.1 (iii) Terms of Service of Audit Committee 4

3.2 (i) Chairman of Audit Committee 4

3.2 (ii) Audit Committee Chairman’s Qualification 4

3.3.1 (i) Reporting to the Board of Directors 4

3.3.1 (ii) (a) Report of Conflicts of Interest 4

3.3.1 (ii) (b) Defect in the Internal Control System 4

3.3.1 (ii) (c) Suspected infringement of laws 4

3.3.1 (ii) (d) Any other matter 4

3.3.2 Reporting to the Authorities 4

3.4 Reporting to the Shareholders 4

4.00 (i) Appraisal or Valuation Services 4

4.00 (ii) Financial Information System 4

4.00 (iii) Book Keeping or other services 4

4.00 (iv) Broker Dealer Services 4

4.00 (v) Actuarial services 4

4.00 (vi) Internal audit services 4

4.00 (vii) Any other services 4


15

2008 2007 2006 2005 2004

Results of Operations

Revenue (Turnover) Net 932,832 790,103 1,054,245 925,745 870,771Gross Profit 135,981 83,680 182,498 115,300 155,404Operating Profit 122,656 71,335 169,754 98,355 136,385Net Profit / (Loss) Before Tax 22,218 (33,563) 64,268 25,595 51,022Net Profit / (Loss) After Tax 18,885 (35,567) 72,769 24,499 56,610Basic Earning per Share (Tk.) 3.92 (7.38) 16.06 6.43 16.34Cash Dividend per Share (Tk.) - - - 5.00 -Stock Dividend 15.00% 10.00% 15.00% 10.00% 10.00%

Financial Position

Total Assets 2,988,593 2,324,154 2,092,394 1,770,749 1,775,014Fixed Assets - Gross 2,297,244 1,130,777 1,130,656 1,196,595 1,196,414Fixed Assets - Net 1,504,424 361,073 411,078 443,115 515,363Gross Working Capital 1,480,235 1,959,146 1,677,381 1,323,699 1,255,715Net Working Capital 772,995 794,688 825,688 694,475 514,274Authorized Capital 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000Paid up Capital 482,155 438,323 381,150 346,500 315,000Reserve & Surplus 1,535,612 412,478 504,360 459,295 466,296Shareholders' Equity 2,017,766 850,800 885,510 805,795 781,296

Key Financial Ratios, Figures and Market Data

Current Ratio 2.09 1.68 1.97 2.10 1.69Return on Paid-up Capital 3.92% (8.11%) 19.09% 7.07% 16.34%Return on Investment 0.94% (4.18%) 8.22% 3.04% 7.25%Net Asset Value Per Share (Tk.) 418.49 194.10 232.33 232.55 248.03Pay-out Ratio 382.96% (123.30%) 78.57% 212.15% 55.64%Market Price of Share (at DSE) (Tk.) 164.50 96.75 76.66 64.00 144.25Market Price of Share (at CSE) (Tk.) 163.25 95.00 78.38 69.00 146.00Price Earning Ratio (Based on DSE price) (Times) 41.96 (13.11) 4.02 9.05 8.83Price Earning Ratio (Based on CSE price) (Times) 41.65 (12.87) 4.11 9.76 8.94

Others

Number of Shares 4,821,547 4,383,225 3,811,500 3,465,000 3,150,000Number of Shareholders 11,625 10,310 8,972 8,706 8,617

all figures in thousand Taka except indicate otherwise.


Five Years’ Statistics

16

Value Added StatementFor the year ended December 31, 2008

2008 2007

Taka in '000 % Taka in '000 %

VALUE ADDED :

Turnover 932,832 790,103Bought in Materials & Services (679,495) (594,899)

253,337 100.00% 195,204 100.00%

APPLICATIONS :

To National Exchequer-as Duty, Taxes, VAT etc. 75,297 29.72% 44,060 22.57%To Employees-as Salary, Wages and Other Benefits 32,788 12.94% 31,690 16.23%To Providers of Loan- as Interest 99,327 39.21% 104,897 53.74%To Providers of Capital-as Dividend 72,323 28.55% 43,832 22.45%

279,735 110.42% 224,479 115.00%

Depreciation & Retention (26,399) (10.42%) (29,275) (15.00%)

253,337 100.00% 195,204 100.00%


17

The Seventeenth Annual General Meeting (AGM) ofShareholders of Beximco Synthetics Ltd. was held on28th August, 2008 at 3.00 pm at 1, Shahbag C/A,Dhaka. A good number of shareholders attended theAGM. In absence of Mr. A S F Rahman, Chairmanof the Board of Directors of Beximco Synthetics Ltd.,Mr. O K Chowdhury, Director of the Companypresided over the meeting. Verses from Holy Quranalong with its translation in Bengali were recited atthe very outset of the meeting.

The Chairman welcomed the Shareholders in theAGM. With the permission of the Chair meetingstarted and the Shareholders expressed their valuedopinion on the Audited Financial Statements of theCompany for the year ended 31 December 2007 andalso on other affairs.

The Chairman replied to the queries and explainedvarious comments of distinguished Shareholders. He

also gave the hints of future activities of theCompany.

After electing directors, approving the auditedFinancial Statements, 10% stock dividend,appointing auditors and fixing their remuneration bythe Shareholders, the meeting ended with a vote ofthanks to and from the chair.


SeventeenthAnnual General Meeting

Financials

19


AUDITORS’ REPORT TO THE SHAREHOLDERS OF BEXIMCO SYNTHETICS LIMITED

We have audited the accompanying Balance Sheet of the Beximco Synthetics Limited as of December 31, 2008 and the relatedProfit and Loss Account, Statement of Changes in Equity and Statement of Cash Flows for the year then ended. These financialstatements are the responsibility of the company’s management. Our responsibility is to express an opinion on these financialstatements based on our audit.

We conducted our audit in accordance with Bangladesh Standards on Auditing (BSA). Those standards require that we plan andperform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. Anaudit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An auditalso includes assessing the accounting principles used and significant estimates made by management, as well as evaluating theoverall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements prepared in accordance with Bangladesh Financial Reporting Standards (BFRSs), give atrue and fair view of the state of the company’s affairs as of December 31, 2008 and of the results of its operations and its cashflows for the year then ended and comply with the applicable sections of the Companies Act 1994, the Securities and ExchangeRules 1987 and other applicable laws and regulations.

We also report that:

(a) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary forthe purposes 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 ourexamination of those books;

(c) the company’s balance sheet and profit and loss account dealt with by the report are in agreement with the books ofaccount; and

(d) the expenditure incurred was for the purposes of the company’s business.

30 April, 2009 M. J. Abedin & Co.Dhaka. Chartered Accountants

20


Beximco Synthetics LimitedBalance SheetAs at 31 December 2008

ASSETS Notes 2008 2007

Property, Plant and Equipment - Carrying Value 21 1,504,423,768 361,073,094

Cost or Valuation 2,297,244,043 1,130,776,637Accumulated Depreciation 792,820,275 769,703,543

Long Term Security Deposits 22 3,934,971 3,934,971

Total Non-Current Assets 1,508,358,739 365,008,065

Current Assets 1,480,234,662 1,959,146,335

Inventories 23 789,637,475 757,336,700Accounts & Other Receivables 24 514,401,229 1,005,929,079Advances, Deposits & Prepayments 25 174,427,665 188,281,007Cash and Cash Equivalents 26 1,768,293 7,599,549

Total Assets Tk. 2,988,593,401 2,324,154,400

EQUITY AND LIABILITIES

Shareholders' Equity 2,017,766,294 850,800,333

Issued Share Capital 27 482,154,750 438,322,500Revaluation Surplus 28 1,329,335,883 173,718,295Tax Holiday Reserve 29 - 152,338,837Retained Earnings 206,275,661 86,420,701

Current Liabilities 707,239,254 1,164,458,597

Debentures-Current Maturity (Secured) 30 38,428,644 33,305,500Interest Free Block Account-Current Maturity 31 19,184,102 19,350,054Short Term Loan from Banks (Secured) 32 523,967,488 979,880,195Accounts & Other Payables 33 54,984,784 48,762,106Accrued Expenses 34 70,674,236 83,160,742

Non-Current Liabilities 263,587,853 308,895,470

Debentures-Net of Current Maturity (Secured) 35 116,569,265 149,874,764Interest Free Block Account-Net of Current Maturity 36 81,982,184 89,664,983Lease Obligation for Finance Lease 65,036,404 69,355,723

Total Liabilities and Shareholders' Equity Tk. 2,988,593,401 2,324,154,400

The notes are an integral part of the Financial Statements.

Approved and authorised for issue by the board of directors on 30 April, 2009 and signed for and on behalf of the Board:

A S F Rahman Salman F Rahman Md. Rafiqul IslamChairman & Managing Director Vice Chairman General Manager

Per our report of even date.


21


Beximco Synthetics LimitedProfit and Loss AccountFor the year ended 31 December 2008

Notes 2008 2007

Revenue 37 932,831,738 790,103,124

Cost of Revenue 38 (796,850,257) (706,422,975)

Gross Profit 135,981,481 83,680,149

Operating Expenses

Administrative Expenses 39 (9,561,255) (8,907,493)Selling Expenses 40 (3,764,239) (3,437,973)

(13,325,494) (12,345,466)

Profit from Operations 122,655,987 71,334,683

Finance Cost 41 (99,327,085) (104,897,261)

23,328,902 (33,562,578)

Contribution to Workers' Profit Participation / Welfare Funds 42 (1,110,900) -

Net Profit/(Loss) before Tax 22,218,002 (33,562,578)

Income Tax Expense 43 (3,332,700) (2,004,826)

Net Profit/(Loss) after Tax for the year transferred to statement of changes in equity Tk. 18,885,302 (35,567,404)

Earning/(Loss) per share 44 Tk. 3.92 (7.38)






22


Beximco Synthetics LimitedStatement of Cash FlowsFor the year ended 31 December 2008

2008 2007

Cash Flows From Operating Activities :

Collections from Revenue- net 1,424,359,588 476,441,535Cash Paid to Suppliers & Employees (808,106,728) (650,552,748)

Cash Generated from/(Used in) Operations 616,252,860 (174,111,213)

Interest Paid (108,541,402) (92,434,200)Income tax paid (496,066) (11,368,330)

Net Cash Generated from/(Used in) Operating Activities 507,215,392 (277,913,743)

Cash Flows From Investing Activities :

Acquisition of tangible fixed assets (14,771,818) (120,160)

Net Cash Used In Investing Activities (14,771,818) (120,160)

Cash Flows From Financing Activities :

Payment of debentures (28,182,355) (33,305,500)Short term loan (repaid to)/received from banks (455,912,707) 282,582,850Payment of Lease Obligation (14,179,768) (9,053,866)

Net Cash (Used in)/Generated from Financing Activities (498,274,830) 240,223,484

Decrease in Cash & Cash Equivalents (5,831,256) (37,810,419)

Cash & Cash Equivalents at the beginning of the Year 7,599,549 45,409,968

Cash & Cash Equivalents at End of the Year Tk. 1,768,293 7,599,549






23


Beximco Synthetics LimitedStatement of Changes In EquityFor the year ended 31 December 2008

Particulars Share Capital Revaluation Tax Holiday Retained Earnings Total EquitySurplus Reserve

Balance on 01-01-2008 438,322,500 173,718,295 152,338,837 86,420,701 850,800,333

Net Profit after tax transferred from Profit and Loss Account 18,885,302 18,885,302

Tax Holiday Reserve no longer required (152,338,837) 152,338,837 -

10% Stock Dividend for prior period (2007) 43,832,250 (43,832,250) -

Prior Year Adjustment (7,536,929) (7,536,929)

Fixed Assets Revalued in 2008 1,155,617,588 1,155,617,588

Balance as on 31-12-2008 Tk. 482,154,750 1,329,335,883 - 206,275,661 2,017,766,294

Total number of shares 4,821,547Shareholders equity per share Tk. 418.49





24


Beximco Synthetics LimitedNotes to the Financial StatementsAs at and for the year ended 31 December 2008

1. BACKGROUND INFORMATION AND PRINCIPAL ACTIVITIES

Beximco Synthetics Limited (the Company) was incorporated in Bangladesh in 1990 under the Companies Act, 1913 as a PublicLimited Company. It commenced its manufacturing operation in 1994. The company became a listed company in 1993.

The shares of the Company are traded in Dhaka and Chittagong Stock Exchanges of Bangladesh and the debentures of the companywere listed with Dhaka Stock Exchange of Bangladesh.

The registered office of the company is located at House No. 17, Road No. 2, Dhanmondi R/A, Dhaka. The industrial units are locatedat Kabirpur, Savar, Dhaka.

The company operates in a single industry segment. It is engaged in manufacturing and marketing of Polyester Filament Yarnnamely, Partially Oriented Yarn (POY) and Drawn Texturized Yarn (DTY) which it sells in the local market.

2. ACCOUNTING BASIS

The financial statements have been prepared on the Historical Cost basis, as modified to include the revaluation of land, building andplant & machineries which are stated at revalued amount.

Accordingly, historical cost is employed to determine the monetary amounts at which the elements of the financial statements areto be recognised and carried in the balance sheet and income statement.

Under the Historical Cost, assets are recorded at the amount of cash or cash equivalents paid or the fair value of the considerationgiven to acquired them at the time of their acquisition. Liabilities are recorded at the amount of proceeds received in exchange forthe obligation, or in some circumstances (for example, income taxes), at the amounts of cash or cash equivalents expected to be paidto satisfy the liability in the normal course of business.

3. COMPLIANCE WITH LOCAL LAWS AND REGULATIONS

The financial statements have been prepared in compliance with the requirements of the Companies Act 1994, the Securities &Exchange Rules 1987, the Listing Regulations of Dhaka and Chittagong Stock Exchanges and other relevant local laws as applicable.

4. COMPLIANCE OF BANGLADESH FINANCIAL REPORTING STANDARDS

The financial statements have been prepared in accordance with the applicable Bangladesh Financial Reporting Standards (BFRSs)including Bangladesh Accounting Standards (BASs) adopted by the Institute of Chartered Accountants of Bangladesh (ICAB) basedon International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs).

5. PRESENTATION OF FINANCIAL STATEMENTS

This is in accordance with the guidelines provided by BAS 1: Presentation of Financial Statements.

6. REPORTING PERIOD

The financial period of the company covers one calendar year from 1st January to 31st December consistently.

7. APPROVAL OF FINANCIAL STATEMENTS

The financial statements were approved by the Board of Directors on 30 April, 2009.

8. REPORTING CURRENCY

The financial statements are prepared and presented in Bangladesh Currency (Taka), which is the company’s functional currency. Allfinancial information presented have been rounded off to the nearest Taka except where indicated otherwise.

9. COMPARATIVE INFORMATION

Comparative information has been disclosed in respect of the year 2007 for all numerical information in the financial statements andalso the narrative and descriptive information where it is relevant for understanding of the current year’s financial statements.

25


Figures for the year 2007 have been re-arranged wherever considered necessary to ensure better comparability with the current yearwithout causing any impact on the profit and value of assets and liabilities as reported in the financial statements.

10. RISK AND UNCERTAINTY FOR USE OF ESTIMATES AND JUDGMENTS

The preparation of financial statements in conformity with Bangladesh Accounting Standards requires management to makejudgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets,liabilities, income and expenses, and disclosure requirements for contingent assets and liabilities during and at the date of thefinancial statements.

Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisionsof accounting estimates are recognized in the period in which the estimate is revised and in any future periods affected as requiredby BAS 8 : Accounting Policies, Changes in Accounting Estimates and Errors.

11. PROVISIONS

In accordance with the guidelines as prescribed by BAS 37: Provisions, Contingent Liabilities and Contingent Assets, provisions arerecognized in the following situations:

a. when the company has an obligation (legal or constructive) as a result of past events;

b. when it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation ; and

c. reliable estimate can be made of the amount of the obligation.

12. ACCRUED EXPENSES AND OTHER PAYABLES

Liabilities are recognized for the goods and services received, whether paid or not for those goods and services. Payables are notinterest bearing and are stated at their nominal value.

13. GOING CONCERN

The company has adequate resources to continue in operation for the foreseeable future. For this reason the directors continue toadopt going concern basis in preparing the accounts. The current credit facilities and resources of the company provides sufficientfund to meet the present requirements of its existing business.

14. FINANCIAL INSTRUMENTS

Non-derivative financial instruments comprise accounts and other receivables, cash and cash equivalents, borrowings and otherpayables and are shown at transaction cost.

15. IMPAIRMENT

In accordance with the provisions of BAS 36 : Impairment of Assets, the carrying amount of non-financial assets, other thaninventories are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indicationexists, then the asset’s recoverable amount is estimated and impairment losses are recognised in profit and loss account. No suchindication of impairment has been raised till to date.

16. SEGMENTAL REPORTING

No segmental reporting is applicable for the company as required by BAS 14 : Segment Reporting as the company operates in asingle industry segment and within a single geographical segment.

17. STATEMENT OF CASH FLOWS

The Statement of Cash Flows has been prepared in accordance with the requirements of BAS 7: Statement of Cash Flows.

The cash generating from operating activities has been reported using the Direct Method as prescribed by the Securities andExchange Rules 1987 and as the benchmark treatment of BAS 7 whereby major classes of gross cash receipts and gross cashpayments from operating activities are disclosed.

18. RELATED PARTY DISCLOSURES

The company did not carry out any transaction with related parties during the year under review.

Therefore, disclosure of information as required by BAS 24: Related party Disclosures is not applicable.

26


19. EVENTS AFTER THE REPORTING PERIOD

In compliance with the requirements of BAS 10: Events After The Reporting Period, post balance sheet events that provide additionalinformation about the company’s position at the balance sheet date are reflected in the financial statements and events after thebalance sheet date that are not adjusting events are disclosed in the notes when material.

20. SIGNIFICANT ACCOUNTING POLICIES

The accounting policies in respect of material items of financial statements have been set out below:

20.1 REVENUE RECOGNITION

In compliance with the requirements of BAS 18: Revenue, revenue from receipts from customers against sales is recognised whenproducts are dispatched to customers, that is, when the significant risk and rewards of ownership have been transferred to the buyer,recovery of the consideration is probable, the associated costs and possible return of goods can be estimated reliably, and there isno continuing management involvement with the goods.

Receipts from customers comprise sales price against domestic sales.

20.2 PROPERTY, PLANT AND EQUIPMENT

20.2.1 RECOGNITION AND MEASUREMENT

Property, plant and equipment are capitalised at cost of acquisition except land, building and plant & machineries being revaluedand subsequently stated at cost/revalued amount 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 ofbringing the assets to its working condition for its intended use inclusive of inward freight, duties and non-refundable taxes.

20.2.2 PRE-OPERATING EXPENSES AND BORROWING COSTS

In respect of major projects involving construction, related pre-operational expenses form part of the value of assets capitalised.Expenses capitalised also include applicable borrowing cost considering the requirement of BAS 23: Borrowing Costs.

20.2.3 SUBSEQUENT EXPENDITURE

The company recognises in the carrying amount of an item of property, plant and equipment the cost of replacing part of such anitem when that cost is incurred, it is probable that the future economic benefits embodied with the item will flow to the companyand the cost of the item can be measured reliably. Expenditure incurred after the assets have been put into operation, such as repairsand maintenance is normally charged off as revenue expenditure in the period in which it is incurred. In situation where it can beclearly demonstrated that the expenditure has resulted in an increase in the future economic benefit expected to be obtained fromthe use of the fixed assets, the expenditure is capitalized as an additional cost of the assets. All other costs are recognized to the profitand loss account as expenses if incurred. All up-gradation/enhancement are generally charged off as revenue expenditure unlessthey bring similar significant additional benefits.

20.2.4 SOFTWARE

Software are generally charged off as revenue expenditure. Purchased software that is integral to the functionality of the relatedequipment is capitalised as part of that equipment.

20.2.5 DISPOSAL OF FIXED ASSETS

On disposal of fixed assets, the cost and accumulated depreciation are eliminated and gain or loss on such disposal is reflected in theincome statement, which is determined with reference to the net book value of the assets and net sales proceeds.

20.2.6 DEPRECIATION ON FIXED ASSETS

Depreciation is provided to amortise the cost of the assets after commissioning, over the period of their expected useful lives, inaccordance with the provisions of BAS 16: Property, Plant and Equipment. Depreciation is provided on fixed assets except land forthe period in use of the assets. Depreciation is calculated on the cost of fixed assets in order to write off such amounts over theestimated useful lives of such assets. Depreciation is provided at the following rates on straight line basis over the periodsappropriate to the estimated useful lives of the different types of assets:

Factory Building and Other Construction - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 5%Plant and Machinery - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 7.5%Factory Equipment - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 10%Furniture & Fixtures and Office Equipment - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 20%Motor Vehicle - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 20%

27


20.3 BORROWING COSTS

This has been dealt with the requirements of BAS 23: Borrowing Costs.

Borrowing costs relating to projects in commercial operation are recognised as expenses in the year in which they are incurred. Inrespect of projects that have not yet commenced commercial production, borrowing costs are debited to capital work in progress.

20.4 INVENTORIES

Inventories are carried at the lower of cost and net realizable value as prescribed by BAS 2 : Inventories. Cost is determined onweighted average cost basis. The cost of inventories comprises of expenditure incurred in the normal course of business in bringingthe inventories to their present location and condition. Net realizable value is based on estimated selling price less any further costsexpected to be incurred to make the sale.

20.5 ACCOUNTS RECEIVABLES

Accounts Receivables are recognised at cost which is the fair value of the consideration given for them.

20.6 ADVANCES, DEPOSITS AND PREPAYMENTS

Advances are initially measured at cost. After initial recognition, advances are carried at cost less deductions, adjustments or chargesto other account heads.

Deposits are measured at payment value.

Prepayments are initially measured at cost. After initial recognition, prepayments are carried at cost less charges to profit and lossaccount.

20.7 CASH AND CASH EQUIVALENTS

Cash and cash equivalents are carried in the balance sheet at cost and includes cash in hand and with banks on current and depositaccounts which are held and available for use by the company without any restriction. There is insignificant risk of change in valueof the same.

20.8 INCOME TAX EXPENSE

CURRENT TAX

Current Tax has been provided for the year at the reduced tax rate of 15% applicable for textiles industries.

DEFERRED TAX

Deferred tax asset is not recognised as it is probable that future taxable profit will not be available against which temporarydifferences can be utilised.

20.9 LEASE ASSETS

In compliance with the BSA 17: Leases, cost of assets acquired under finance lease along with related obligation have been accountedfor as assets and liabilities respectively of the company, and the interest element has been charged as expenses.

20.10 LEASE PAYMENT

Lease payments made under finance leases are apportioned between the finance expenses and the reduction of the outstandingliability.

20.11 EMPLOYEE BENEFITS

The company has accounted for and disclosed of employee benefits in compliance with the provisions of BAS 19: Employee Benefits.

The cost of employee benefits are charged off as revenue expenditure in the period to which the contributions relate.

The company’s employee benefits include the following:

(A) DEFINED CONTRIBUTION PLAN

This represents recognized contributory provident fund for all its permanent employees. Assets of provident fund are held in aseparate trustee administered fund as per the relevant rules and is funded by contributions from both the employees and thecompany at pre-determined rates.

28


(B) CONTRIBUTION TO WORKERS’ PROFIT PARTICIPATION/ WELFARE FUNDS

This represents 5% of net profit before tax contributed by the company as per provisions of the Companies Profit (Workers’Participation) Act, 1968 and is payable to workers as defined in the said scheme.

(C) GROUP INSURANCE SCHEME

20.12 TAX HOLIDAY RESERVE

This was created out of profit of units enjoying tax holiday status to invest in the same undertaking or in any new industrialundertaking or in stocks and shares of listed companies or in government bonds or securities or for other purposes as required bythe Income Tax Ordinance 1984.

20.13 PROPOSED DIVIDEND

The amount of proposed dividend has not been accounted for but disclosed in the notes to the accounts alongwith dividend pershare in accordance with the requirements of the Para 125 of Bangladesh Accounting Standard (BAS) 1 (Revised 2008): Presentationof Financial Statements. Also, the proposed dividend has not been considered as “Liability” in accordance with the requirements ofthe Para 12 & 13 of Bangladesh Accounting Standard (BAS) 10: Events After The Reporting Period, because no obligation exists at thetime of approval of accounts and recommendation of dividend by the Board of Directors.

20.14 EARNINGS PER SHARE (EPS)

This has been calculated in compliance with the requirements of BAS 33: Earnings Per Share by dividing the basic earnings by theweighted average number of ordinary shares outstanding during the year.

BASIC EARNINGS

This represents earnings for the year attributable to ordinary shareholders. As there was no preference dividend, minority interest orextra ordinary items, the net profit after tax for the year has been considered as fully attributable to the ordinary shareholders.

Weighted Average Number of Ordinary Shares Outstanding during the year

CURRENT YEAR 2008

This represents the number of ordinary shares outstanding at the beginning of the year plus the number of ordinary shares issuedduring the year multiplied by a time-weighting factor. The time weighting factor is the number of days specific shares areoutstanding as a proportion of the total number of days the specific shares are outstanding as proportion of the total number of daysin the period.

EARLIER YEAR 2007

The number of shares outstanding before the bonus issue has been adjusted for the proportionate change in the number of sharesoutstanding as if the bonus issue had occurred at the beginning of earliest period reported (2007) and accordingly, in calculating theAdjusted EPS of 2007, the total number of shares including the subsequent bonus issued in 2008 has been considered as theweighted Average Number of Shares Outstanding during the year 2007.

The basis of computation of number of shares as stated above, is in line with the provisions of BAS-33 “Earnings Per Share”. The logicbehind the basis as stated in said BAS is that the bonus shares are issued to the existing shareholders without any consideration, andtherefore, the number of shares outstanding is increased without an increase in resources generating new earnings.

DILUTED EARNINGS PER SHARE

No diluted EPS is required to be calculated for the year as there was no scope for dilution during the year under review.

20.15 FOREIGN CURRENCY TRANSACTIONS

The financial records of the company are maintained and the financial statements are stated in Bangladesh Taka. Foreign currencytransactions are recorded at the applicable rates of exchange ruling at the transaction date in compliance with the provisions of BAS21: The Effects of Changes in Foreign Exchange Rates.

29


21. PROPERTY, PLANT AND EQUIPMENT: TK. 1,504,423,768

The relevant information in respect of Property, Plant and Equipment as required by the laws,rules and the accounting standards issetout below:

Particulars Land & Land Factory building Plant & Factory Furniture & Motor TotalDevelopment & other Machinery Equipment Office Vehicle

construction Equipment

Historical CostAt 31 December, 2007 17,441,570 133,440,481 758,333,463 21,533,539 18,818,256 7,491,033 957,058,342

Addition in 2008 - - 14,604,618 - 167,200 - 14,771,818

Disposal of Assets in 2008 - - - - - (3,922,000) (3,922,000)

At 31 December, 2008 17,441,570 133,440,481 772,938,081 21,533,539 18,985,456 3,569,033 967,908,160

DepreciationAt 31 December, 2007 - 82,162,081 645,172,851 17,808,057 17,926,528 6,634,026 769,703,543

For 2008 - 6,672,023 18,019,019 1,112,226 463,965 771,499 27,038,732

Adjustment on Disposal - - - - - (3,922,000) (3,922,000)

At 31 December, 2008 - 88,834,104 663,191,870 18,920,283 18,390,493 3,483,525 792,820,275

Depreciated Historical CostAt 31 December, 2008 Tk. 17,441,570 44,606,377 109,746,211 2,613,256 594,963 85,508 175,087,885

Revaluation Surplus in 2004 Tk. 173,718,295 173,718,295Revaluation Surplus in 2008 Tk. 342,849,135 323,913,802 488,854,651 1,155,617,588

Total Revaluation Surplus Tk. 516,567,430 323,913,802 488,854,651 1,329,335,883

Current CostAt 31 December, 2008 Tk. 534,009,000 457,354,283 1,261,792,732 21,533,539 18,985,456 3,569,033 2,297,244,043

Carrying amount at Current CostAt 31 December, 2008 Tk. 534,009,000 368,520,179 598,600,862 2,613,256 594,963 85,508 1,504,423,768

Carrying AmountAt 31 December, 2007 Tk. 191,159,865 51,278,400 113,160,612 3,725,482 891,728 857,007 361,073,094

A. Disclosure on revaluation in the year 2004

In compliance with the requirements of Bangladesh Accounting Standard (BAS) - 16 "Property, Plant and Equipment, followinginformation have been disclosed on revaluation of land:

(a) The effective date of revaluation is 27.12.2004.

(b) An independent professional valuer, M/S G. K. Adjusters Ltd. (Insurance Surveyors, Loss Adjusters, Controllers and Valuers) ofChand Mansion (5th floor), 66, Dilkusha Commercial Area, was involved to carry out the said revaluation.

B. Disclosure on revaluation in the year 2008

(1) In compliance with the requirements of Bangladesh Accounting Standard (BAS) - 16 "Property, Plant and Equipment, followinginformation have been disclosed on revaluation of land, building and plant & machinery:

(a) The effective date of revaluation is 31.12.2008.

(b) An independent professional valuer, M/S. S. F. Ahmed & Co., Chartered Accountants, House 25, Road 13A, Block D, Banani, Dhaka-1213, Bangladesh have revalued the land, building and plant & machinery of the Company as of 31 December 2008, following"current cost method". Such revaluation resulted in a revaluation surplus aggregating Tk. 1,155,617,588.

C. Fixed Assets includes assets under finance lease of Tk. 135,000,000 at cost and Tk. 90,562,500 at written down value.

30


22. LONG-TERM SECURITY DEPOSITS : TK. 3,934,971 2008 2007

This represents the amount deposited with utility providers in respect of :

Bangladesh Telegraph & Telephone Board for Telephone 864,000 864,000Titas Gas Transmission & Distribution Co.Ltd. for Gas Connection 3,070,971 3,070,971

Tk. 3,934,971 3,934,971

23. INVENTORIES : TK. 789,637,475

This consists of :

(a) Raw Material :

Chips 175,397,093 156,742,027Others 7,399,323 8,209,326

182,796,416 164,951,353

(b) Work-in-Process 2,266,000 2,462,680(c) Finished Goods 273,955,569 268,764,332(d) Packing Material 1,229,938 454,360(e) Stores & Spares 209,728,222 213,938,716(f ) Stock-in- Transit 119,661,330 106,765,259

Tk. 789,637,475 757,336,700

24. ACCOUNTS & OTHER RECEIVABLES : TK. 514,401,229

This is unsecured but considered good, and is falling due within one year.

No amount was due by the directors (including Managing Director), Managing Agent, Managers and other officers of the companyand any of them severally or jointly with any other person.

25. ADVANCES, DEPOSITS & PREPAYMENTS : TK. 174,427,665 2008 2007

This consists of :

Advances :

Duty, taxes & clearing charges 92,311,980 88,442,534Advance Income Tax 29,453,473 45,487,445Suppliers 19,612,867 15,582,115Mill Expenses 317,654 187,329

141,695,974 149,699,423

Deposits 14,692,605 18,692,605Prepayments 18,039,086 19,888,979

Tk. 174,427,665 188,281,007

This is unsecured but considered good.

No amount was due by the directors (including Managing Director), Managing Agent, Managers and other officers of the companyand any of them severally or jointly with any other person.

No amount was due by any associated undertaking.

26 . CASH AND CASH EQUIVALENTS : TK. 1,768,293 2008 2007

This consists of :

(a) Cash in Hand 116,341 421,576(b) Cash at Banks :

(i) In Current Accounts 755,904 6,707,939(ii) In STD Accounts 896,048 470,034

1,651,952 7,177,973

Tk. 1,768,293 7,599,549

31


27. ISSUED SHARE CAPITAL : TK. 482,154,750 2008 2007

(A) AUTHORISED :

10,000,000 ordinary shares of Tk. 100/- each Tk. 1,000,000,000 1,000,000,000

(B) ISSUED, SUBSCRIBED AND PAID-UP :

2,990,000 Ordinary Shares of Tk. 100/- each fully paid up in cash 299,000,000 299,000,000(2,000 shares issued in 1990, 18,000 shares issued in 1991 and2,970,000 shares issued in 1993)

10,000 Ordinary Shares of Tk. 100/- each issued inconsideration of value of land acquired (issued in 1993) 1,000,000 1,000,000

150,000 Bonus shares of Tk. 100 each (issued in 2003 by 15,000,000 15,000,000capitalization of retained earnings)




438,322.5 Bonus shares of Tk. 100 each (issued in 2008 by 43,832,250 -capitalization of retained earnings)

Tk. 482,154,750 438,322,500

(C) COMPOSITIONS OF SHARE HOLDINGS:

2008 2007No. of Shares % No. of Shares %

Sponsors 2,021,059 41.92 1,837,328 41.92Public 2,800,488 58.08 2,545,897 58.08

4,821,547 100.00 4,383,225 100.00

(D) DISTRIBUTION SCHEDULE -DISCLOSURES UNDER THE LISTING REGULATIONS OF THE STOCK EXCHANGE :

The distribution schedule showing the number of shareholders and their share holdings in percentage has been disclosedbelow as a requirement of the "Listing Regulations of the Dhaka and Chittagong Stock Exchanges":

Share holdings Range Number of holders % of Share Capital Number of Shares % of Share Capital

in number of shares 2008 2007 2008 2007 2008 2007 2008 2007

1 to 499 10,863 9,721 93.45% 94.29% 646,688 566,393 13.41% 12.92%

500 to 5,000 707 552 6.08% 5.35% 866,389 652,259 17.97% 14.88%

5,001 to 10,000 28 13 0.24% 0.13% 191,322 91,009 3.97% 2.08%

10,001 to 20,000 13 8 0.11% 0.08% 212,089 110,596 4.40% 2.52%

20,001 to 30,000 4 5 0.03% 0.05% 100,897 118,858 2.09% 2.71%

30,001 to 40,000 1 1 - 0.01% 31,416 32,907 0.65% 0.75%

40,001 to 50,000 - 1 - 0.01% - 48,931 - 1.12%

50,001 to 100,000 4 3 0.03% 0.03% 319,991 210,516 6.64% 4.80%

100,001 to 1,000,000 5 6 0.04% 0.06% 2,452,755 2,551,756 50.87% 58.22%

Over 1,000,000 - - - - - - - -

11,625 10,310 99.99 100.00% 4,821,547 4,383,225 100.00% 100.00%

32


(E) MARKET PRICE:The shares of the Company are listed with in the Dhaka and Chittagong Stock Exchanges and quoted at Tk. 164.50 (in 2007: Tk.96.75) per share in the Dhaka Stock Exchange and Tk. 163.25 (in 2007: Tk. 95.00) per share in the Chittagong Stock Exchange on31 December 2008.

(F) OPTION ON UNISSUED SHARES :There is no option regarding authorised capital not yet issued but can be used to increase the issued, subscribed and paid upcapital through the issuance of new shares.

(G) VOTING RIGHTS :The rights and privileges of the shares are stated in the Bye-laws (Articles of Association) of the Company.

28. REVALUATION SURPLUS : TK. 1,329,335,883

This represents the surplus on land revalued in the year 2004 Tk. 173,718,295 and surplus on land, factory building and plant &machinery revalued Tk. 1,155,617,588 in the year 2008.

29 . TAX HOLIDAY RESERVE : NIL

This has been transferred during the year to Retained Earnings as no longer required.

30. DEBENTURE- CURRENT MATURITY (SECURED) TK. 38,428,644

This is redeemable within twelve months from the date of balance sheet.

The debentures are secured by first pari-passu charge by way of an equitable mortgage on the fixed assets of the company i.e. thedebenture holders will rank senior along with Sonali Bank to other creditors on the assets of the company on liquidation/winding up.

31. INTEREST FREE BLOCK ACCOUNT-CURRENT MATURITY TK. 19,184,102

This is payable within twelve months from the date of balance sheet as per decision of the Trustee to the Institutional DebenturesHolders in a meeting held on 10.07.2005.

32. SHORT TERM LOANS FROM BANKS (SECURED) : TK. 523,967,488 2008 2007

This consists of following Bank/Financial Institutions:

Sonali Bank, Local Office, Dhaka - Cash Credit & IBP 480,967,488 726,122,689Bank Asia Ltd., Corporate Branch, Dhaka - IBP - 210,757,506IPDC of Bangladesh Ltd. - Short Term Loan 43,000,000 43,000,000

Tk. 523,967,488 979,880,195

Cash Credit (Hypothecation and Pledged) account is secured against hypothecation of inventories and accounts receivable to thebank and collaterised by pari-passu charge on Company's fixed assets.

33. ACCOUNTS & OTHER PAYABLES : TK. 54,984,784 2008 2007

This is unsecured and represents creditors for:

Goods Supplied 7,512,781 8,520,608Gas and Services 13,406,856 10,417,015Insurance 9,960,341 7,235,370Advance against Sales 9,121,790 7,819,617Others 14,983,016 14,769,496

Tk. 54,984,784 48,762,106

34 . ACCRUED EXPENSES : TK. 70,674,236

This is falling due within one year and represents :

Accruals 16,455,097 12,952,478Provision for Taxation 23,087,668 28,748,078Workers' Profit Participation / Welfare Funds 12,024,059 11,126,761Interest Payable - Finance Lease 3,179,661 9,860,449Interest Payable - Debenture (Current) 15,927,751 20,472,976

Tk. 70,674,236 83,160,742

33


35. DEBENTURE-NET OF CURRENT MATURITY (SECURED) : TK. 116,569,265

This is redeemable after twelve months from the date of balance sheet.

36. INTEREST FREE BLOCK ACCOUNT-NET OF CURRENT MATURITY : TK. 81,982,184

This is payable after twelve months from the date of balance sheet.

37. REVENUE (NET) : TK. 932,831,738 2008 2007

This is made-up as follows :Sales of DTY (5,662,068 kgs.) (in 2007 : 5,352,760 kgs) 928,872,215 789,555,684Less : Sales Commission 13,749,010 11,827,468

915,123,205 777,728,216Sales of Wastage 17,708,533 12,374,908

Tk. 932,831,738 790,103,124

38. COST OF REVENUE : TK. 796,850,257

This is made-up as follows :

Raw Material Consumed (Note - 38.1 ) 651,940,582 549,438,002Packing Material Consumed (Note- 38.2 ) 21,731,482 15,654,838Manufacturing Overhead (Note - 38.3 ) 101,134,018 103,092,329Depreciation 27,038,732 50,125,096Manufacturing Costs for the year 801,844,814 718,310,265Opening WIP 2,462,680 3,468,260Manufacturing Costs to date 804,307,494 721,778,525Closing WIP 2,266,000 2,462,680Cost of Goods manufactured 802,041,494 719,315,845Opening Finished Goods 268,764,332 255,871,462Cost of Goods available for revenue 1,070,805,826 975,187,307Closing Finished Goods 273,955,569 268,764,332Cost of Revenue Tk. 796,850,257 706,422,975

(A) ITEM WISE QUANTITY AND VALUE OF FINISHED GOODS STOCK ARE AS FOLLOWS :2008 2007

Item Quantity in Kgs. Value in Taka Quantity in Kgs. Value in Taka

Opening StockPOY 151,159 14,547,763 160,722 15,769,055DTY 2,086,962 254,216,569 1,972.901 240,102,407

2,238,121 268,764,332 2,133,623 255,871,462Closing StockPOY 151,159 14,547,763 151,159 14,547,763DTY 1,847,393 259,407,806 2,086,962 254,216,569

1,998,552 273,955,569 2,238,121 268,764,332

(B) ITEM WISE QUANTITY AND VALUE OF WORK-IN-PROCESS ARE AS FOLLOWS :2008 2007

Item Quantity in Kgs. Value in Taka Quantity in Kgs. Value in Taka

Opening StockPOY 3,500 161,000 5,000 230,000DTY 30,000 2,301,680 43,000 3,238,260

33,500 2,462,680 48,000 3,468,260Closing StockPOY 4,000 184,000 3,500 161,000DTY 28,000 2,082,000 30,000 2,301,680

32,000 2,266,000 33,500 2,462,680

34


38.1. RAW MATERIAL CONSUMED : TK. 651,940,582 2008 2007


Opening Stock 164,951,353 162,246,886Purchases 669,785,645 552,142,469

834,736,998 714,389,355Closing Stock 182,796,416 164,951,353

Tk. 651,940,582 549,438,002

(A) ITEM WISE QUANTITY AND VALUE OF RAW MATERIAL STOCK ARE AS FOLLOWS :

2008 2007Item Quantity Value in Taka Quantity Value in Taka

Opening Stock

Chips (tons) 1,717 156,742,027 1,871 155,550,180Spin Finish (kgs.) 12,600 2,688,278 9,470 1,909,943Conning Oil (kgs.) 23,856 2,750,624 17,985 1,743,574Antiseptics (kgs.) 60 84,240 270 336,970Paper Tube-POY-Imported (Nos.) 39,030 2,686,184 36,570 2,706,219

164,951,353 162,246,886

Closing Stock

Chips (tons) 1,648 175,397,093 1,717 156,742,027Spin Finish (kgs.) 9,200 2,279,762 12,600 2,688,278Conning Oil (kgs.) 9,821 1,004,565 23,856 2,750,624Antiseptics (kgs.) 60 100,646 60 84,240Paper Tube-POY-Imported (Nos.) 59,064 4,014,350 39,030 2,686,184

182,796,416 164,951,353

(B) ITEM WISE QUANTITY AND VALUE OF RAW MATERIAL IMPORTED/PURCHASED ARE AS FOLLOWS :


Chips (tons) 5,748 637,586,259 5,545 521,649,251Spin Finish (kgs.) 27,000 7,124,608 32,000 6,937,906Conning Oil (kgs.) 33,550 4,300,850 56,325 6,824,454Antiseptics (kgs.) 170 301,574 180 294,831Paper Tube-POY-Imported (Nos.) 53,618 3,610,741 53,584 3,498,499Paper Tube-DTY (Nos.) 2,789,771 16,861,612 2,659,064 12,937,528

669,785,645 552,142,469

(C) ITEM WISE QUANTITY AND VALUE OF RAW MATERIAL CONSUMED ARE AS FOLLOWS :


Chips (tons) 5,816 618,931,194 5,700 520,457,404Spin Finish (kgs.) 30,400 7,533,125 28,870 6,159,571Conning Oil (kgs.) 47,585 6,046,910 50,454 5,817,403Antiseptics (kgs.) 170 285,167 390 547,561Paper Tube-POY-Imported (Nos.) 33,584 2,282,574 51,124 3,518,535Paper Tube-DTY (Nos.) 2,789,771 16,861,612 2,659,064 12,937,528

651,940,582 549,438,002

Raw material consumed are fully imported except DTY Paper Tube.

35


38.2. PACKING MATERIAL CONSUMED : TK. 21,731,482 2008 2007


Opening Stock 454,360 566,893Purchases 22,507,060 15,542,305

22,961,420 16,109,198Closing Stock 1,229,938 454,360

Tk. 21,731,482 15,654,838

(A) ITEM WISE QUANTITY AND VALUE OF PACKING MATERIAL STOCK ARE AS FOLLOWS :


OPENING STOCK

Cartons (Set) 1,186 73,638 5,743 343,267HDPE Bag (Nos.) 14,700 11,373 32,850 25,028Louis tape (Rolls) 2,832 69,382 501 11,861P.P. Band and clip (Kgs.) 13 1,883 - -Adhesive Sticker (Nos.) 1,948,157 250,915 1,272,969 148,657Packing Slip(Nos.) 36,710 33,379 42,830 38,080Cone Bucket (Nos.) 394 13,790 - -

454,360 566,893

CLOSING STOCK

Cartons (Set) 9,335 875,192 1,186 73,638HDPE Bag (Nos.) - - 14,700 11,373Louis tape (Rolls) 309 6,868 2,832 69,382P.P. Band and clip (Kgs.) 12 1,738 13 1,883Adhesive Sticker (Nos.) 1,532,580 334,172 1,948,157 250,915Packing Slip(Nos.) 13,510 11,968 36,710 33,379Cone Buckets (Nos.) - - 394 13,790

1,229,938 454,360

(B) ITEM WISE QUANTITY AND VALUE OF PACKING MATERIAL PURCHASED ARE AS FOLLOWS :


Cartons (Set) 205,900 19,341,470 199,780 12,417,554HDPE Bag (Nos.) 2,477,790 2,170,455 2,493,361 1,929,364Louis tape (Rolls) 30,699 675,915 28,790 705,747P.P. Band and clip (Kgs.) - - 72 10,430Adhesive Sticker (Nos.) 2,370,000 280,220 2,420,000 299,220Packing Slip(Nos.) 45,000 39,000 74,440 68,550Cone Bucket (Nos.) - - 3,184 111,440

22,507,060 15,542,305

(C) ITEM WISE QUANTITY AND VALUE OF PACKING MATERIAL CONSUMED ARE AS FOLLOWS :


Cartons (Set) 197,751 18,539,916 204,337 12,687,183HDPE Bag (Nos.) 2,492,490 2,181,828 2,511,511 1,943,019Louis tape (Rolls) 33,222 738,428 26,459 648,227P.P. Band and clip (Kgs.) 1 145 59 8,547Adhesive Sticker (Nos.) 2,785,577 196,962 1,744,812 196,962Packing Slip(Nos.) 68,200 60,413 80,560 73,250Cone Bucket (Nos.) 394 13,790 2,790 97,650

21,731,482 15,654,838Packing material consumed are fully local purchased.

36


38.3. Manufacturing Overhead : Tk. 101,134,018 2008 2007


Salary and wages 27,668,768 28,137,636Power & Gas 33,851,843 34,319,188Indirect Material (Stores & Spares) 26,787,095 24,657,410Insurance 1,345,436 1,411,201Other Manufacturing Overhead 11,480,876 14,566,894

Tk. 101,134,018 103,092,329

(a) Salary and Wages includes Provident Fund contribution of Tk. 718,209 (in 2007 : Tk. 927,577).

(b) The value of imported stores and spares consumed is Tk. 18,750,967 (in 2007 : Tk. 17,260,187) which is 70% of total stores andspares consumed.

(c) Other manufacturing overhead does not include any item exceeding 1% of total revenue.

39. ADMINISTRATIVE EXPENSES: TK. 9,561,255 2008 2007

This Consists of :

Salary 4,008,549 3,551,234Repairs and Maintenance 8,833 6,360Entertainment 380,863 335,147Stationery 189,346 179,121Books, Newspaper & Periodicals 32,654 132,582Stamp & Postage 56,659 54,386Medical Expenses 144,698 173,960Laundry 940 96Renewal, Rates & registrations 102,800 63,605Listing & Membership Fees 729,069 261,048Training Expenses - 10,200Travelling & Conveyance 231,332 291,272Telephone, Telex & Fax 400,775 323,505Transport Expenses 797,885 740,904Bank Charges & Commission 165,643 160,668Utilities-Electricity, Water & Gas 46,998 33,497Audit Fee 75,000 75,000Legal & Professional Fees 50,000 63,300Trustee Fees 398,194 478,982Group Insurance Premium 303,804 327,266AGM Expenses 1,275,796 1,521,078Security Guard Hire Expenses 109,185 117,580Other Administrative Overhead 52,232 6,702

Tk. 9,561,255 8,907,493

(a) Salary includes Provident Fund contribution of Tk. 163,078 (in 2007 : Tk. 145,522).

(b) The audit fee represents the fees for auditing the accounts of the Company for the year 2008. No other fee was paid to theauditor for any other services.

40. SELLING EXPENSES : TK. 3,764,239 2008 2007

This Consists of :

Transport 3,705,709 3,437,973

Market Research 58,530 -

Tk. 3,764,239 3,437,973

37


41. FINANCE COST : TK. 99,327,085 2008 2007

This is made up as follows :

(a) Debenture interest 15,927,751 20,472,976(b) Interest on Cash Credit (Hypothecation) 41,105,282 40,447,565(c) Interest on Cash Credit (Pledged) 20,677,659 20,184,209(d) Interest on Short Term Loan 8,200,155 8,200,263(e) Interest on Finance Lease 13,416,238 15,592,248

Tk. 99,327,085 104,897,261

42. CONTRIBUTION TO WORKERS' PROFIT PARTICIPATION / WELFARE FUNDS : TK. 1,110,900

This represents 5% of net profit before tax after charging the contribution and such contribution is provided as per provisions of thecompanies profit (Workers' Participation) Act, 1968 and is payable to workers as defined in the said Act.

43. INCOME TAX EXPENSES : TK.3,332,700

This represents current tax expense for the year under review.

44. BASIC EARNINGS PER SHARE (EPS) 2008 2007

(a) Net profit after tax Tk. 18,885,302 (35,567,404)

(b) Weighted average number of shares in issue 4,821,547 4,821,547

(c) Basic EPS ( a/b) (Adjusted EPS of 2007) Tk. 3.92 (7.38)

45. CONTINGENT LIABILITIES

There was no contingent liability as on 31 December, 2008.

46. CAPITAL EXPENDITURE COMMITMENT

(a)There was no capital expenditure commitment but not incurred or provided at 31 December, 2008.

(b)There was no material capital expenditure authorised by the Board but not contracted for at 31 December, 2008.

47. UN-AVAILED CREDIT FACILITY

There was no credit facility available to the Company under any contract, but not availed of as on 31 December, 2008 and 2007 otherthan trade credit available in the ordinary course of business.

48. FOREIGN EXCHANGE EARNED

No foreign exchange was earned against sales. No other foreign exchange was earned or received by the Company during the year2008.

49. PAYMENTS IN FOREIGN CURRENCY

In 2008, the Company remitted foreign currency in respect of the following:

(a) Payment against imported Raw Material & Spares

2008 2007

Foreign Currency in US$ In Taka Foreign Currency in US$ In Taka

8,167,176 567,024,449 6,210,347 433,556,726

(b) No other expenses including royalty, technical expert and professional advisory fees, etc. was incurred or paid by the Companyin foreign currency, during the year 2008.

50. COMMISSION, BROKERAGE OR DISCOUNT AGAINST SALES

(a) Distribution commission of Tk. 13,749,010 (in 2007 : Tk. 11,827,468) was incurred and paid during the year 2008 to thedistributors of the Company.

(b) No other commission, brokerage or discount was incurred or paid by the Company against sales during the year 2008.

38


51. RELATED PARTY DISCLOSURES

No transaction was made during the year under review nor any amount was due to or from as on the balance sheet date.

52. PRODUCTION CAPACITY, ACTUAL PRODUCTION AND REASON OF SHORTFALL 2008 2007

(a) POY 115/230 Denier (Qty. in tons)Installed capacity 8,400 8,400Actual Production 5,725 5,610

(b) DTY 75 (NI) Equivalent Denier (Qty. in tons)

Installed capacity 8,336 8,336Actual Production 5,422 5,417

Production suffered during the year under review because of shortage of gas supply from Titas Gas Transmission & Distribution Co. Ltd.

53. PAYMENT/ PERQUISITES TO DIRECTORS/OFFICERS

(a) The aggregate amounts paid/provided during the year in respect of Officers of the Company as defined in the Security andand Exchange Rules, 1987 are disclosed below :

2008 2007

Basic Salary 2,026,860 2,425,800 House Rent Allowance 851,430 970,320 Other Allowances 584,335 -Provident Fund Contribution 158,586 242,580

Total Tk. 3,621,211 3,638,700

(b) No compensation was allowed by the Company to the Managing Director of the Company.

(c) No amount of money was spent by the Company for compensating any member of the Board for special services rendered.

54. POST CLOSING EVENTS

Subsequent to the balance sheet date, the directors recommended 15% stock dividend (bonus share).

The dividend proposals are subject to shareholders approval at the forthcoming Annual General Meeting.

Except the fact stated above, no circumstances have arisen since the balance sheet date which would require adjustments to, ordisclosure in, the financial statements or notes thereto.


30 April, 2009Dhaka.

BEXIMCO SYNTHETICS LIMITEDRegistered Office : 17 Dhanmondi R/A, Road # 2, Dhaka-1205

PROXY FORM

I/We ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... of ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... being a memberof BEXIMCO SYNTHETICS LIMITED hereby appoint Mr./Mrs/Miss ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ...... ... ... ... ... ... ... ... ... of ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... as my Proxy to attend and vote for me on my behalf at the 18THANNUAL GENERAL MEETING of the Company to be held on Tuesday the 16th June, 2009 at 3:30 pm at 1, Shahbagh C/A,Dhaka and at any adjournment thereof.

As witness my hand this ... ... ... ... ... ... ... ... ... day of June, 2009. Signed by the said in presence of ... ... ... ... ... ... ... ... ... ... ... ...... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ..... ....... ... ... ... ... ... ... ... ... .......

REVENUE............................................... STAMP(Signature of the Proxy) TK. 8.00Date .......................................

........................................................................................................Signature of the Shareholder(s)

............................................... Register BO ID/Folio No. ..............................................................(Signature of witness) Dated .............................................................................................

NOTE : A member entitled to attend and vote at the General Meeting may appoint a Proxy to attend and vote in his/her stead. TheProxy Form, duly stamped, must be deposited at the Registered Office of the Company not later than 48 hours before thetime appointed for the meeting.

Signature verified

...........................................................Authorized Signatory

BEXIMCO SYNTHETICS LIMITEDRegistered Office : 17 Dhanmondi R/A, Road # 2, Dhaka-1205

SHAREHOLDERS' ATTENDANCE SLIP

I hereby record my attendance at the 18TH ANNUAL GENERAL MEETING being held on Tuesday the 16th June, 2009 at 3:30pm at 1, Shahbagh C/A, Dhaka.

Name of Member/Proxy ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ...

Register BO ID/Folio No. .. ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... . holding of ... ... ... ... ... ... ... ... ... ... ordinaryShares of Beximco Synthetics Limited.

...........................................................Signature of Shareholder(s)

N. B. PLEASE PRESENT THIS SLIP AT THE RECEPTION DESK. CHILDREN AND NON-MEMBERS WILL NOT BE ALLOWED AT THE MEETING.

"

CORPORATE HEADQUARTERS

17 Dhanmondi R/A, Road No. 2Dhaka-1205, Bangladesh

Phone : 880-2-8618220 (7 lines)Fax : 880-2-8613470, 8617647

E-mail : [email protected] Site : http://www.beximco.org

OPERATIONAL HEADQUARTERS

Kabirpur, SavarDhaka-1344, Bangladesh

Phone : 880-2-7701168-70Fax : 880-2-7701170

E-mail: [email protected] Site : http://www.beximco.org

FACTORY

Kabirpur, Savar, Dhaka-1344

BANKERS

Sonali Bank Ltd.IFIC Bank Ltd.

INDEPENDENT AUDITORS

M/S. M. J. Abedin & Co.Chartered Accountants

National Plaza (6th Floor)109, Bir Uttam C.R. Datta Road

Dhaka-1205

LEGAL ADVISERS

M/S. Huq & Co.Barristers & Advocates

47/1, Purana Paltan, Dhaka-1000

DAY, DATE & TIME OF AGM

Tuesday 16th June, 2009 at 3.30 p.m.

PROPOSED DIVIDEND

15 % Stock Dividend

www.beximco.org

2008 annua l report - beximco syntheticsbeximcosynthetics.com/ar_bsl08.pdfcompany profile corporate...

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