bata_share.pdf

7/26/2019 Bata_Share.pdf

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Notes

2014 2013

Jun Dec

Taka Taka

Assets

Property, plant and equipment 4 920,717,813 932,544,605

Capital work in progress 5 31,085,261 -

Prepayments of rent 9.1 172,384,000 113,965,000

Total non-current assets 1,124,187,074 1,046,509,605

Inventories 7 2,808,880,470 2,167,843,253

Accounts receivable 8 375,880,889 435,657,233

Advances, deposits and prepayments 9 1,006,912,644 702,987,654

Cash and cash equivalents 10 12,860,506 257,439,710

Total current assets 4,204,534,509 3,563,927,850

Total assets 5,328,721,583 4,610,437,455

Total equity attributable to equity holders of the company

Share capital 11 136,800,000 136,800,000

Reserves and surplus 12 2,254,973,148 2,119,884,143

Total equity 2,391,773,148 2,256,684,143

Liabilities

Deferred liability 13 147,133,361 134,506,744

Deferred tax liability 6 5,200,000 14,500,000

Total non-current liabilities 152,333,361 149,006,744

Creditors for goods 14 789,557,126 460,953,222

Creditors for expenses 15 377,022,557 443,624,893

Creditors for other finance 16 299,957,183 273,340,269

Accrued expenses 17 399,011,478 375,921,784

Provision for tax 18 717,245,130 586,559,130

Unclaimed dividend 201,821,600 64,347,270

Total current liabilities 2,784,615,074 2,204,746,568

Total liabilities 2,936,948,435 2,353,753,312

Total equity and liabilities 5,328,721,583 4,610,437,455

0 -

_________________

Company Secretary Finance Director

________________

Bata Shoe Company (Bangladesh) Limited

Statement of Financial Position (Un-audited)

as at 30 June 2014

Managing Director


2/19

Notes

2014 2013 2014 2013

Jan - Jun Jan - Jun Apr - Jun Apr - Ju

Taka Taka Taka Taka

Revenue 19 3,621,765,518 3,534,338,993 1,678,917,098 1,714,881

Cost of sales 20 (2,219,419,592) (2,283,017,375) (1,022,675,339) (1,116,389

Gross profit 1,402,345,926 1,251,321,618 656,241,759 598,492

Exchange gain/(loss) (237,679) 321,694 (326,784) (1,103

Other income 21 12,273,950 9,458,424 8,425,660 3,786

Administration, selling and distribution expenses (993,254,322) (885,144,498) (490,060,939) (445,509

Profit from operating activities 421,127,875 375,957,238 174,279,696 155,665

Finance income 22 3,793,390 5,852,223 1,747,166 3,002

Finance expenses 23 (3,747,576) (2,990,322) (2,247,576) (1,500

Net finance income/(expenses) 45,814 2,861,901 (500,410) 1,502

Contribution to workers' profit participation fund (21,058,684) (18,940,957) (8,688,964) (7,858

Profit before income tax 400,115,005 359,878,182 165,090,322 149,309Income tax expense:

Current tax 130,686,000 114,804,000 56,178,000 51,633

Deferred tax (9,300,000) 1,700,000 (5,300,000) 1,000

121,386,000 116,504,000 50,878,000 52,633

Profit for the period 278,729,005 243,374,182 114,212,322 96,676

Basic earnings per share (par value Tk 10) 20.37 17.79 8.35

_________________

Company Secretary Finance Director Managing Director


Statement of Profit or Loss and Other Comprehensive Income (Un-audited)

for the period ended 30 June 2014

____________________


3/19

Non-

Reserve on distributable

Share revaluation special General Retained Total

capital of land reserve reserve earnings equity

Taka Taka Taka Taka Taka Taka

Balance as at 1 January 2013 136,800,000 60,631,183 998,620 48,863,000 1,606,707,776 1,854,000,5

Total comprehensive income for 2013Profit for the year - - - - 813,083,564 813,083,5

Transactions with the shareholders

Final dividend for the year 2012 - - - - (143,640,000) (143,640,0

Interim dividend for the year 2013 - - - - (266,760,000) (266,760,0

Balance as at 31 December 2013 136,800,000 60,631,183 998,620 48,863,000 2,009,391,340 2,256,684,1

Total comprehensive income for 2014

Profit for the period - - - - 278,729,005 278,729,0



Interim dividend for the year 2014 - - - - - -

Balance as at 30 June 2014 136,800,000 60,631,183 998,620 48,863,000 2,144,480,345 2,391,773,1

Non-

Reserve on distributable

Share revaluation special General Retained Total

capital of land reserve reserve earnings equity

Taka Taka Taka Taka Taka Taka

Balance as at 1 January 2012 136,800,000 60,631,183 998,620 48,863,000 1,313,782,103 1,561,074,9


Loss on investment in subsidiary - - - - (2,790,630) (2,790,6

Profit for the year - - - - 671,916,303 671,916,3



Interim dividend for the year 2012 - - - - (232,560,000) (232,560,0

Balance as at 31 December 2012 136,800,000 60,631,183 998,620 48,863,000 1,606,707,776 1,854,000,5


Profit for the period - - - - 243,374,182 243,374,1



Interim dividend for the year 2013 - - - - -

Balance as at 30 June 2013 136,800,000 60,631,183 998,620 48,863,000 1,706,441,958 1,953,734,7

for the Period ended 30 June 2013

Particulars


Statement of Changes in Equity (Un-audited)

for the Period ended 30 June 2014

Particulars

Statement of Changes in Equity (Un-audited)


4/19

2014 2013

Taka Taka

Cash flows from operating activities

Cash receipts from customers 3,679,943,222 3,415,405,528

Cash payments to and on behalf of employees (454,139,620) (432,514,392)

Cash payments for deferred liabilities (6,125,926) (16,906,567)

Cash payments to suppliers and contractors for goods and services (3,199,376,685) (2,952,147,302)

Cash generated from operating activities 20,300,991 13,837,267

Income tax paid (171,460,921) (138,524,265)

Net cash from operating activities (151,159,930) (124,686,998)

Cash flows from investing activities

Proceed from sales of property, plant and equipment 724,551 1,864,386

Acquisition of property, plant and equipment (56,655,215) (93,302,142)

Payment for capital work in progress (31,085,261) (2,388,645)

Net cash used in investing activities (87,015,925) (93,826,401)

Cash flows from financing activities

Dividend paid (6,165,670) (6,070,441)

Net cash used in financing activities (6,165,670) (6,070,441)

Net cash increase/(decrease) in cash and cash equivalents (244,341,525) (224,583,840)

Cash and cash equivalents as at 1 January 257,439,710 233,459,170

Effect of exchange rate fluctuations on cash held (237,679) 321,694

Cash and cash equivalents/ (Bank overdraft) as at 30 June 12,860,506 9,197,024

Previous period's figures have been rearranged, wherever necessary, to conform to current period's presentation.


Statement of Cash Flows (Un-audited)

for the period ended 30 June 2014


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1. Reporting entity

2. Basis of preparation

2.1 Statement of compliance

2.2 Basis of measurement


Notes to the Financial Statements

as at and for the period ended 30 June 2014

Bata Shoe Company (Bangladesh) Limited (hereinafter referred to as "Bata"/"the Company") is a public Company

limited by shares. It was incorporated in Bangladesh in 1972 under the Companies Act 1913. The address of theregistered office of the Company is Tongi, Gazipur, Bangladesh. The Company is one of the operating companies of

worldwide Bata Shoe Organization (BSO). The shares in the Company are listed in both Dhaka Stock Exchange (DSE)

and Chittagong Stock Exchange (CSE) and mostly held by Bafin (Nederland) B.V. The financial year of the Company

covers one year from 1 January to 31 December.

The Company is mainly engaged in manufacturing and marketing of leather, rubber, plastic, canvas footwear, hosiery

and accessories items. Manufacturing plants of the Company are situated at Tongi and Dhamrai.

These financial statements have been prepared in accordance with Bangladesh Financial Reporting Standards (BFRS),

the Companies Act 1994, the Securities and Exchange Rules 1987 and other applicable laws and regulations.

2.3 Functional and presentational currency

2.4 Use of estimates and judgements

Note 4 Property, plant & equipment

Note 6 Deferred tax assets / (liabilities)

Note 7 Inventories

Note 13 Deferred liability

Note 18 Provision for tax

Information about critical judgements in applying accounting policies that have the most significant effect on the

amounts recognised in the financial statements is included in the following notes:

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are

recognised in the period in which the estimates are revised and in any future periods affected.

These financial statements have been prepared on historical cost basis except for land at Tongi in the statement of

financial position which was revalued in 1979.

These financial statements are presented in Bangladesh Taka (Taka/Tk) which is both functional and presentational

currency of the Company. The amounts in these financial statements have been rounded off to the nearest Taka.

The preparation of these financial statements in conformity with BFRSs requires management to make judgements,

estimates and assumptions that affect the application of accounting policies and the reported amounts of assets,

liabilities, income and expenses. Actual results may differ from these estimates.


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3. Significant accounting policies

3.1 Foreign currency

Foreign currency differences arising on translation are recognised in profit or loss.

3.2 Financial instruments

3.2.1 Non-derivative financial assets

The accounting policies set out below have been applied consistently to all periods presented in these financial

statements, and have been applied consistently, except the review of useful lives of property, plant and equipment by

management during the year 2011.

Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to

the functional currency at the exchange rate at the date that the fair value was determined. Non-monetary items in a

foreign currency that are measured based on historical cost are translated using the exchange rate at the date of the

transaction.

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity

instrument of another entity.

The Company initially recognises loans and receivables and deposits on the date that they are originated. All other

financial assets are recognised initially on the trade date, which is the date the Company becomes a party to the

contractual rovisions of the instrument.

Transactions in foreign currencies are translated to the respective functional currencies of the Company at exchangerates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting

date are retranslated to the functional currency at the exchange rate at that date.

3.2.1.1 Financial assets at fair value through profit or loss

3.2.1.2 Held-to-maturity financial assets

Financial assets and liabilities are offset and the net amount presented in the statement of financial position when, and

only when, the Company has a legal right to offset the amounts and intends either to settle on a net basis or to realise the

asset and settle the liability simultaneously.

The Copmany classifies non-derivative financial assets into the following categories: financial assets at fair value

through profit or loss, held-to-maturity financial assets, loans and receivables and available for- sale financial assets.

If the Company has the positive intent and ability to hold debt securities to maturity, then such financial assets are

classified as held to maturity. Held-to-maturity financial assets are recognised initially at fair value plus any directly

attributable transaction costs. Subsequent to initial recognition, held-to-maturity financial assets are measured at

amortised cost using the effective interest method, less any impairment losses.

.

The Company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it

transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all

the risks and rewards of ownership of the financial asset are transferred.

A financial asset is classified as at fair value through profit or loss if it is classified as held for trading or is designated as

such on initial recognition. Attributable transaction costs are recognised in profit or loss as incurred. Financial assets at

fair value through profit or loss are measured at fair value and changes therein, which takes into account any dividend

income, are recognised in profit or loss.


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3.2.1.3 Loans and receivables

3.2.1.3.1 Accounts receivables

3.2.1.3.2 Cash and cash equivalents

3.2.1.4 Available-for-sale financial assets

Loans and receivables are financial assets with fixed or determinable payments that are not quoted in an active market.

Such assets are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial

recognition, loans and receivables are measured at amortised cost using the effective interest method, less any

impairment losses.

Loans and receivables comprise accounts receivables and cash and cash equivalents.

Accounts receivables represent the amounts due from institutional customers, export customers etc. Accounts

receivables are stated net of bad debts provision.

Available-for-sale financial assets are non-derivative financial assets that are designated as available for sale or are not

classified in any of the above categories of financial assets. Available-for-sale financial assets are recognised initially at

fair value plus any directly attributable transaction costs. Subsequent to initial recognition, they are measured at fair

Provision for doubtful debts is made based on the Company policy. Bad debts are written off on consideration of the

status of individual debtors.

Cash and cash equivalents comprise cash on hand, cash in transit and cash at bank including fixed deposits having

maturity of three months or less which are available for use by the Company without any restriction. Bank overdraftsthat are repayable on demand and form an integral part of the Companys cash management are included as a component

of cash and cash equivalents.

3.2.2 Non-derivative financial liabilities

3.2.2.1 Trade and other creditors

The company recognises a financial liability initially at fair value less any directly attributable transaction costs.

Subsequent to initial recognition, these financial liabilities are measured at amortised cost using the effective interest

method.

. ,

value and changes therein, other than impairment losses and foreign currency differences on available-for-sale debt

instruments, are recognised in other comprehensive income and presented in the fair value reserve in equity. When an

investment is derecognised, the gain or loss accumulated in equity is reclassified to profit or loss.

Available for sale financial assets comprise security deposits.

The Company recognises all financial liabilities on the trade date which is the date the Company becomes a party to the

contractual provisions of the instrument.

The Company derecognises a financial liability when its contractual obligations are discharged, cancelled or expired.

Financial liabilities comprise trade and other creditors only.


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3.3 Property, plant and equipment

3.3.1

3.3.2 Subsequent costs

3.3.3 Depreciation

Recognition and measurement

Items of property, plant and equipment excluding land are measured at cost less accumulated depreciation and

accumulated impairment losses. Land is measured at revalued amount.

Cost includes expenditures that are directly attributable to the acquisition of assets. The cost of self-constructed assets

includes the following:

- the cost of materials and direct labour;

- any other cost directly attributable to bringing the asset to a working condition for the intended use;

- when the Company has an obligation to remove the asset or restore the site, an estimate of the costs of dismantling

and removing the items and restoring the site on which they are located; and

- capitalised borrowing costs.

When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate

items (major components) of property, plant and equipment.

Any gain or loss on disposal of an item of property, plant and equipment (calculated as the difference between the net

proceeds from disposal and the carrying amount of the item) is recognised in profit or loss.

Subsequent expenditure is capitalised only when it is probable that the future economic benefits associated with the

expenditure will flow to the Company. Ongoing repairs and maintenance is expensed as incurred.

Items of property, plant and equipment are depreciated on a straight-line basis in profit or loss over the estimated useful

Year

2014

Building 40

Plant and machinery 13.33

Motor vehicles 5

Furniture, fixtures and equipment 4-13.33

3.3.4 Capital work in progress

lives of each component. Land is not depreciated.

Addition during the year of property, plant and equipment are depreciated for full year irrespective of date of

acquisition, while no depreciation is charged in the year of disposal.

The estimated useful lives for the current and comparative years of property, plant and equipment are as follows:

Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.

The useful lives and depreciation method of certain type of property, plant and equipment were revised in 2011.

Property, plant and equipment that is being under construction/acquisition is accounted for as capital work in progress

until construction/acquisition is completed and measured at cost.


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3.4 Inventories

3.5 Impairment

3.5.1 Non-derivative financial assets

3.5.1.1 Financial assets measured at amortised cost

3.5.1.2 Available-for-sale financial assets

The Company considers evidence of impairment for financial assets measured at amortised cost at both a specific asset

and collective level. An impairment loss in respect of a financial asset measured at amortised cost is calculated as the

difference between its carrying amount and the present value of the estimated future cash flows discounted at the assets

original effective interest rate.

Impairment losses on available-for-sale financial assets are recognised by reclassifying the losses accumulated in the fair

Inventories except raw material in transit are measured at the lower of cost and net realisable value. The cost of

inventories is based on the first-in first-out principle, and includes expenditure incurred in acquiring the inventories,

production or conversion costs and other costs incurred in bringing them to their existing location and condition. In the

case of manufactured inventories and work in progress, cost includes an appropriate share of production overheads

based on normal operating capacity.

Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of

completion and selling expenses.

A financial asset not classified at fair value through profit or loss is assessed at each reporting date to determine whether

there is objective evidence that it is impaired. A financial asset is impaired if objective evidence of impairment as a

result of one or more events that occurred after the initial recognition of the asset, and that loss events had an impact on

the estimated future cash flows of that asset that can be estimated reliably.

3.5.2 Non-financial assets

3.6 Share capital

3.7 Employee benefits

value reserve in equity to profit or loss. The cumulative loss that is reclassified from equity to profit or loss is the

difference between the acquisition cost, net of any principle repayment and amortisation, and the current fair value, less

any impairment loss recognised previously in profit or loss.

The carrying amounts of the Company's non-financial assets, other than inventories and deferred tax assets, are reviewed

at each reporting date to determine whether there is any indication of impairment. If any such indication exists then the

recoverable amount of the asset is estimated. An impairment loss is recognised if the carrying amount of an asset or its

related cash-generating unit (CGU) exceeds its estimated recoverable amount.

The Company maintains both defined contribution plan and defined benefit plan for its eligible permanent employees.

The eligibility is determined according to the terms and conditions set forth in the respective deeds.

Paid up capital represents total amount contributed by the shareholders and bonus shares issued by the Company to theordinary shareholders. Holders of ordinary shares are entitled to receive dividends as declared from time to time and are

entitled to vote at shareholders' meetings. In the event of a winding up of the Company, ordinary shareholders rank after

all other shareholders and creditors and are fully entitled to any residual proceeds of liquidation.


10/19

3.7.1 Defined contribution plan

3.7.2 Defined benefit plan

Short-term employee benefits

3.8 Provisions

A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The Companys net

obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of future

benefit that employees have earned in return for their service in the current and prior periods.

The Company maintains an unfunded gratuity scheme, provision in respect of which is made annually for the employees

other than managerial staff. Gratuity payable at the end of each year has been determined on the basis of existing rules

and regulations of the Company. Actuarial valuation of the gratuity fund is carried out by a professional actuary.

Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service

is provided. A liability is recognised for the amount expected to be paid under short-term cash bonus or profit-sharing

plans if the Company has a present legal or constructive obligation to pay this amount as a result of past service

provided by the employee, and the obligation can be estimated reliably.

A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a

separate entity and has no legal or constructive obligation to pay further amounts. Obligations for contributions to

defined contribution plans are recognised as an employee benefit expense in profit or loss in the periods during which

related services are rendered by employees.

The Company maintains three contributory provident funds for its permanent employees categorised as managers,

officers and supervisors and workers. The Company also maintains a managerial staff pension fund which was a defined

benefit as contribution plan. These are administered by the Boards of Trustees.

3.9 Revenue

3.10 Lease payments

Payments made under operating leases are recognised in profit or loss on a straight-line basis over the term of the lease.

Lease incentives received are recognised as an integral part of the total lease expenses, over the term of the lease.

At inception of an arrangement, the Company determines whether such an arrangement is or contains a lease. This will

be the case if the following two criteria are met:

- the fulfilment of the arrangement is dependent on the use of a specific asset or assets; and

- the arrangement contains a right to use the asset(s).

A provision is recognised if, as a result of past event, the Company has a present legal or constructive obligation that can

reliably be estimated, and it is probable that an outflow of economic benefits will be required to settle the obligation.

Revenue from the sale of goods in the course of ordinary activities is measured at fair value of the consideration

received or receivable, net of returns and allowances, Value Added Tax and trade discounts.

Revenue is recognised when persuasive evidence exists that the significant risks and rewards of ownership have been

transferred to the customer, recovery of the consideration is probable, the associated costs and possible return of goods

can be estimated reliably, there is no continuing management involvement with the goods, and the amount of revenue

can be measured reliably.


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3.11 Finance income and expenses

3.12 Tax

3.12.1 Current tax

3.12.2 Deferred tax

Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively

enacted at the reporting date, and any adjustment to tax payable in respect of previous years. Bata qualifies as a

"Publicly Traded Company"; hence the applicable tax rate is 27.50 %. It enjoys 10% rebate on income tax payable fordeclaring dividend at more than 20% of paid up capital.

Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for

financial reporting purposes and the amounts used for taxation purposes. Deferred tax is measured at the tax rates that

are expected to be applied to the temporary differences when they are reversed, based on the laws that have been enacted

or substantivel enacted b the re ortin date. Deferred tax assets and liabilities are offset if there is a le all

Finance income comprises interest income on funds invested, interest on shop managers account held with the Company

and foreign exchange gain on translation of foreign currency that are recognised in profit or loss. Interest income is

recognised on accrual basis.

Finance expense comprises interest expense on overdraft, finance lease and interest on shop managers account held with

the Company and foreign exchange loss on translation of foreign currency. All finance expenses are recognised in the

statement of comprehensive income.

Income tax expense comprises current and deferred tax. Income tax expense is recognised in the statement of

comprehensive income except to the extent that it relates to items recognised directly in equity, in which case it is

recognised in equity.

3.13 Earnings per share

3.14 Duty drawback

3.15 Sales proceeds from wastage, scrap etc.

.

enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax

authority on the same taxable entity.

A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences, to the extentthat it is probable that future taxable profits will be available against which they can be utilised. Deferred tax assets are

reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will

be realised.

The Company presents basic and diluted (when dilution is applicable) earnings per share (EPS) for its ordinary shares.

Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company with the

weighted average number of ordinary shares outstanding during the period, adjusted for the effect of change in number

of shares for bonus issue, share split and reverse split. Diluted EPS is determined by adjusting the profit or loss

attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding, for the effects of

all dilutive potential ordinary shares. However, dilution of EPS is not applicable for these financial statements as there

was no dilutive potential ordinary shares during the relevant periods.

Duty drawback claimed on export sales is adjusted against cost of imported raw materials.

Sales of empty drum of chemicals, split leather and other wastage of materials have been adjusted with cost of raw

materials consumed. Income from non-operating activities is recognised as other income.


12/19

3.16 Workers' profit participation fund (WPPF)

3.17 Events after the reporting period

The Company provides 5% of its profit before charging such expense as WPPF in accordance with "The Bangladesh

Labour Act 2006".

Events after the reporting period that provide additional information about the Company's position at the date of

statement of financial position or those that indicate the going concern assumption is not appropriate are reflected in the

financial statements. Events after the reporting period that are not adjusting events are disclosed in the notes when

material.


13/19

4. Property, plant and equipment

4(a) Year 2014

Cost/Valuation

Disposals/ Adjustment Written down

As at Additions transfers As at As at Charged for As at value as at

Particulars 1 January during during 30 June 1 January for disposals/ 30 June 30 June

2014 the period the period 2014 2014 the period transfers 2014 2014

Taka Taka Taka Taka Taka Taka Taka Taka Taka

Land1

86,057,856 - - 86,057,856 - - - - 86,057,856

Building2

377,877,942 1,354,042 - 379,231,984 181,131,213 4,740,400 185,871,613 193,360,371

Plant and machinery 738,770,886 1,259,647 - 740,030,533 442,684,864 24,317,014 - 467,001,878 273,028,655

Motor vehicles 25,008,751 - (1,678,455) 23,330,296 21,376,683 2,668,721 (1,678,455) 22,366,949 963,347

Furniture, fixtures and equipment 611,965,123 54,041,526 (1,237,350) 664,769,299 261,943,193 36,481,777 (963,255) 297,461,715 367,307,584

1,839,680,558 56,655,215 (2,915,805) 1,893,419,968 907,135,953 68,207,912 (2,641,710) 972,702,155 920,717,813

4(b) Year 2013

Cost/Valuation

Disposals/ Adjustment Written down

As at Additions transfers As at As at Charged for As at value as at

Particulars 1 January during during 31 December 1 January for disposals/ 31 December 31 December

2013 the year the year 2013 2013 the year transfers 2013 2013

Taka Taka Taka Taka Taka Taka Taka Taka Taka

Land1

86,057,856 - - 86,057,856 - - - - 86,057,856

Building2

376,199,684 1,678,258 377,877,942 173,370,544 7,760,669 181,131,213 196,746,729

Plant and machinery 715,581,267 34,001,788 (10,812,169) 738,770,886 420,509,650 32,483,177 (10,307,963) 442,684,864 296,086,022

Motor vehicles 25,008,751 - - 25,008,751 19,648,227 1,728,456 - 21,376,683 3,632,068

Furniture, fixtures and equipment 501,033,308 116,959,715 (6,027,900) 611,965,123 210,026,312 57,719,700 (5,802,819) 261,943,193 350,021,930

1,703,880,866 152,639,761 (16,840,069) 1,839,680,558 823,554,733 99,692,002 (16,110,782) 907,135,953 932,544,605

1

2

4.1 Depreciation charged to:

2014 2013

Taka Taka

Cost of goods sold 18,826,994 11,872,931

Administration, selling and distribution

expenses 49,380,918 35,111,331

68,207,912 46,984,262

Depreciation

Depreciation

Land includes Tk. 60,631,183 by revaluation in 1979.

Building includes properties at 24 Bangabandhu Avenue, Dhaka which were purchased in 1985 from the Government of Bangladesh at a cost of Tk 5,344,417. Sale deed is yet to be executed.


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5. Capital work in progress

30 Jun 2014 31 Dec 2013

Taka Taka

Balance as at 1 January - 2,059,472

Add: Addition during the year 31,085,261 36,749,879

31,085,261 38,809,351

Less: Transfer to property plant & equipment during the year - 38,809,351

Closing Balance (note 5.1) 31,085,261 -

5.1 Capital work in progress represent as follows

Plant and machinery 7,095,448 -

Furniture , Fixture & Equipment 23,989,813 -

31,085,261 -

6. Deferred tax assets / (liabilities)

Deferred tax assets is arrived at as follows:

30 Jun 2014 31 Dec 2013

Taka Taka

Balance as at 1 January (14,500,000) (12,300,000)Addition/reduction during the year 9,300,000 (2,200,000)

Closing Balance (5,200,000) (14,500,000)

Carrying

amount on the Taxable/

date of (deductible)

statement of temporary

financial position Tax base difference

Taka Taka Taka

(a) As at 31 March 2014

Property, plant and equipment

(excluding land and certain motor vehicles) 833,938,827 638,096,595 195,842,232

Provision for staff gratuity (note 12) (147,133,361) - (147,133,361)

Provision for bad and doubtful debts (27,990,971) - (27,990,971)

Net taxable temporary difference 20,717,900

Deferred tax liability (5,200,000)

(b) As at 31 December 2013

Property, plant and equipment

(excluding land and certain motor vehicles) 845,586,872 629,033,786 216,553,086

Provision for staff gratuity (net of payment) (134,506,744) - (134,506,744)

Provision for bad and doubtful debts (24,106,081) - (24,106,081)

Net taxable temporary difference 57,940,261

Deferred tax liability (14,500,000)

7. Inventories

Raw materials 456,760,625 414,102,307

Work in process 36,257,710 43,306,956

Finished goods 2,315,862,135 1,710,433,990

2,808,880,470 2,167,843,253


15/19

8. Accounts receivable 30 Jun 2014 31 Dec 2013

Taka Taka

Trade (unsecured) - considered good

Export customers - Non BSO companies 7,683,362 14,961,782

Export customers - BSO companies 27,405,740 5,928,296

Receivables from dealers 307,109,808 375,027,081

Receivables from institutional sale 33,844,526 38,303,981

376,043,436 434,221,140

Others (unsecured) - considered good

VAT claims 1,989,629 249,379

Interest receivable 1,712,250 -

Joint venture commission receivable - 589,838

Duty drawback claim receivable 361,865 596,876

4,063,744 1,436,093

Agents and employees 19,538,389 24,106,081

Total accounts receivable 399,645,569 459,763,314

Provision for doubtful debts (23,764,680) (24,106,081)

375,880,889 435,657,233

9. Advances, deposits and prepayments

30 Jun 2014 31 Dec 2013

Taka Taka

Advances (considered good) to:

Agents and employees 12,094,746 2,729,173

Suppliers against materials and services 5,177,143 8,931,150

17,271,889 11,660,323

Advance income tax 319,874,692 148,413,771

Security and other deposits 624,699,599 441,512,793

Prepayments to landlords (current portion - note 9.1) 45,066,464 101,400,767

1,006,912,644 702,987,654

9.1 Prepayments of rent

Prepayments to landlords 217,450,464 215,365,767

Less: Current portion (note 9) 45,066,464 101,400,767

Non-current portion 172,384,000 113,965,000

10. Cash and cash equivalents

Cash balances:

On hand 668,593 16,325

In transit:

From stores 6,471,639 35,328,276

From depots 1,640,000 490,000

From institutions (92,823) 47,403,691

Balances with banks in:

Current accountsIn Taka (132,677,480) (109,532,576)

In USD 18,084,497 19,420,791

Fixed deposits - 6,000,000

Short term deposits 118,766,080 258,313,203

4,173,097 174,201,418

12,860,506 257,439,710


16/19

11. Share capital

30 Jun 2014 31 Dec 2013

Authorised: Taka Taka

20,000,000 ordinary shares of Tk 10 each 200,000,000 200,000,000

Issued, subscribed and paid up:

2,850,723 ordinary shares of Tk 10 each issued for cash 28,507,230 28,507,230

10,829,277 ordinary shares (including 7,202,400 bonus shares)

of Tk 10 each issued for consideration other than cash 108,292,770 108,292,770

136,800,000 136,800,000

12. Reserves and surplus

30 Jun 2014 31 Dec 2013

Taka Taka

Reserve on revaluation of land 60,631,183 60,631,183

Non-distributable special reserve (note 12.1) 998,620 998,620

General reserve 48,863,000 48,863,000

Unappropriated profit (note 12.2) 2,144,480,345 2,009,391,340

2,254,973,148 2,119,884,143

12.1 Non-distributable special reserve

12.2 Unappropriated profit

Balance as at 1 January 2,009,391,340 1,606,707,776

Profit for the year / Period 278,729,005 813,083,564

Interim dividend - (266,760,000)

Final dividend (143,640,000) (143,640,000)

2,144,480,345 2,009,391,340

13. Deferred liability

30 Jun 2014 31 Dec 2013

Taka Taka

Balance as at 1 January 134,506,744 123,817,664

Add: Provision made during the year/ Period 18,752,543 34,595,523

153,259,287 158,413,187

Less: Paid during the year / Period 6,125,926 23,906,443

Closing Balance 147,133,361 134,506,744

Deferred liability represents provision for staff gratuity.

14. Creditors for goods

Payable to local suppliers 766,344,022 450,535,227

Payable to BSO companies 23,213,104 10,417,995

789,557,126 460,953,222

15. Creditors for expenses

Payable to local suppliers 64,231,545 43,945,078

Payable to BSO companies 312,791,012 399,679,815

377,022,557 443,624,893

This represents 90% of the cumulative post-tax profit in respect of certain categories of income up to 1992 as defined and directed by Bangladesh Bank.

Since 1993, the requirement for continuing to create such special reserve is applicable only to the profit on sale of immovable assets such as land, buildings,

etc.


17/19

30 Jun 2014 31 Dec 2013

16. Creditors for other finance Taka Taka

Workers' profit participation fund 81,757,819 60,699,135

Personal accounts of employees and agents 70,423,430 77,488,548

Security and other deposits 25,394,500 24,794,500

Provident fund 5,538,105 6,983,994

Tax deducted at source 50,185,341 60,933,617

Pension fund 708,550 1,992,092

VAT deducted at source 3,036,568 5,318,418

Salary and wages payable 26,999,240 20,469,098

Others 35,913,630 14,660,867

299,957,183 273,340,269

17. Accrued expenses

Bonus 93,547,938 77,190,000

Utility 16,745,000 9,320,000

Legal & audit fee 1,091,200 1,681,500

Royalty 24,131,810 16,222,717

Joint venture commission 8,183,322 9,953,699

Other accrued liabilities 255,312,208 261,553,868

399,011,478 375,921,784

18. Provision for tax

Current year 130,686,000 338,000,000

Earlier years (net of advance tax) 586,559,130 248,559,130

717,245,130 586,559,130


18/19

19. RevenueHalf year Half year

ended ended

30\Jun\14 30\Jun\13

Taka Taka

Local

Shoe 3,432,667,182 3,398,718,609

Hosiery & accessories 140,906,989 94,853,675Export 48,191,347 40,766,709

3,621,765,518 3,534,338,993

20 Cost of goods soldHalf year Half year

ended ended

30\Jun\14 30\Jun\13

Taka Taka

Opening stock of finished goods 1,710,433,990 1,393,434,546

Add: Cost of goods manufactured (Note 20.1) 2,101,380,299 2,227,549,619

Finished goods purchased 723,467,438 521,105,378

4,535,281,727 4,142,089,543

Less: Closing stock of finished goods 2,315,862,135 1,859,072,168

2,219,419,592 2,283,017,375

20.1 Cost of goods manufactured

Cost of materials consumed (Note 20.1.1) 1,638,369,397 1,788,647,286

Direct wages 281,281,482 288,532,904

1,919,650,879 2,077,180,190

Manufacturing overhead 174,680,175 170,795,869

Difference in work in process:

Work in process at beginning 43,306,956 61,989,523

Work in process at closing 36,257,711 82,415,963

7,049,245 (20,426,440)

Cost of goods manufactured 2,101,380,299 2,227,549,619

20.1.1 Cost of materials consumed

Opening stock of raw materials 414,102,307 433,360,454

Add: Purchase 1,684,276,029 1,809,894,980

Materials available for use 2,098,378,336 2,243,255,434

Less: Sale proceeds of wastage scrap 3,248,314 7,424,817

2,095,130,022 2,235,830,617

Less: Closing stock of raw materials 456,760,625 447,183,331

1,638,369,397 1,788,647,286


19/19

Half year Half year

ended ended

30\Jun\14 30\Jun\13

21. Other income Taka Taka

Gain/(loss) on disposal of property, plant and equipment 450,456 1,244,349

Discount for early payment 11,823,494 8,214,075

12,273,950 9,458,424

22. Finance income

Interest on short term deposit 3,793,390 5,852,223

23. Finance expenses

Interest on personal account 3,747,576 2,990,322

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