Aramitcem 2017 PDF

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Aramit Group is contributing the Port City Chittagong's development activities since
1963 with its various building materials like Cement Sheet , Camel Brand Aramit
Cement, Aramit Aluminium Profiles, Stainless Steel Pipes and Aramit Alu Composite
Panel.
It's a story of developing chiftagong for 53 Years.
Aramit Cement Limited a sister concern of Aramit Group, is situated at 53, Kalurghat
Heavy industrial Estate, P. 0 Mohara, Chittagong, Bangladesh. Aramif Cement
Limited a leading manufacturer of various types of cement in Bangladesh. The
factory was incorporated on 19 August. 1995 as a public company limited by shares,
with the technical collaboration of 2,10,000 MT installed capacity per year. The
production started on 10 th November 1999 and the product brand name was
registered as Camel Brand cement earned the confidence of consumers because
of its quality. Later on, Aramit Cement Limited established and started 2nd unit on 1 st
January 2017 with capacity of 3,00,000 MT per year. Now the total production
capacity is 5,10,000 MT per year.
Aramit Cement Limited imports the best quality clinkers, slag, limestone and gypsum
from renowned miners, exporters & suppliers from Iran, Thailand, China, Japan,
Indonesia and vietnum etc. We strictly control the production by continuous tasting
in our well equipped laboratory by our highly experienced chemists and technicians.
Our production process is computerized which ensure us quality products.
Aramit Cement Limited are the forward looking organization and has expanded it's
business beyond the boarders by exporting to India since 2005. Monthly
consignments are being exported to Tripura & Meghaloya. Aramit Cement is
exporting both Portland Slag Cement (PSC) and Ordinary Portland Cement (OPC, 43
Grade) complying fully with bureau of Indian Standard (BIS).
Aramit Cement Limited are producing Portland Composite Cement (PCC) and
Ordinary Portland Cement (OPC) with Separate Silos & Packing Machines.
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Mission
I I
• Be the first choice of all users.
r Be the Market leader.
- now
To be regarded as the best cement company in the country through quality
innovation, technology, and modern management, thereby contributing to the social
and economic development of Bangladesh.
04. Company Profile
7. Notice of the 21 st Annual General Meeting
8. Board of Directors
9. Directors Report
14. Annexurel&ll
15. Annexure Ill
16. AnnexurelV
17. Annexure-A
22. Directors Report (Bangla)
26. Value added Statement
27. Elements of Total Cost
28. Corporate Governance Report
29. Certificate on Corporate Governance Guidelines
30. Report of the Audit Committee
31. Statement of CEO & CFO on Financial Statements
32. Auditors Report
33. Statement of Financial Position
34. Statement of Comprehensive Income
35. Statement of Cash Flows
36. Statement of Changes in Equity
37. Notes to the Financial Statements
61. Proxy Form

• HISTORICAL HIGHLIGHTS
1.Year of Establishment
2.Technical Collaboration
Agreement with CAMC, China
3.Trial Production
Com any
1995
1995
18 August 1999
Pro File
4. Commercial Production 10 November 1999 • BANKERS
South Bangla Agriculture Bank Limited
• Registered Office & Factory Agrabad Branch, Chittagong.
53, Kalurghat Heavy Industrial Estate Meghna Bank Limited
P.O : Mohara, Chittagong, Bangladesh. Agrabad Branch, Chittagong.
Tel (88 031) 671950, 670473, 670368, 672516 NRB Global Bank Limited
Fax: (88031) 671583 Agrabad Branch, Chittagong.
E-mail : infoJTaramitcement.com.bd Rupali Bank Limited
www.aramitcement.com.bd Sadan Branch, Chittagong.
• Share Office National Credit & Commerce Bank Limited
Green View Apartment, Hat-6/J, 5th Floor (North side) Katungonj Branch, Chittagong.
House-39, Road-24, Gulshan-1, Dhaka-1212 Al-Arafah Islami Bank Limited
Tel: (88-02) 9887176, 9881095. Fax: (88-02) 9851551 Muradpur Branch, Chittagong.
E-mail: sharesaromitgroup.com Basic Bank Limited
Jubilee Road Branch, Chittagong.
• BANKERS Commercial Bank of Ceylon
State Bank of India Agrabad Branch, Chittagong.
Hao plaza Jublee Road, Chittagong. Eastern Bank Limited
Jamuna Bank Limited Chandgaon Branch, Chittagong.
Agrabad Branch, Chittagong.
Sonali Bank Limited
Kalurghat l/E Branch, Chittagong. • INSURANCE
Standard Bank Limited Karnaphuli Insurance Company Limited
Khafungonj Branch, Chittagong. Suraiya Mansion, 30 Agrabad, Chittagong.
Janata Bank Limited Janata Insurance Co. Ltd.
Corporate Branch, Aktaruzzaman Center, Agrabad, Chittagong.
Sk. Mujib Road, Chittagong. Northern General Insurance Co. Ltd.
AB Bank Limited Jubilee Road, Chittagong.
Bahaddarhat Branch, Chittagong. South Asia Insurance Co. Ltd.
Bank Asia Limited Khatungonj, Chittagong.
United Commercial Bank Limited
Bahaddarhat Branch, Chittagong. • AUDITORS
Social Islami Bank Limited Hoda Vasi Chowdhury & Co.
Jubilee Road Branch, Chittagong. Chartered Accountants
First Secyrity Islami Bank Limited Dewar Bhaban (4th Floor), 104, Agrabad C/A, Chittagang.
Mutual Trust Bank Limited FINANCIAL HIGHLIGHTS
Kalurghat l/E Branch, Chittagong.
Islami Bank Limited
Jubilee Road Branch, Chittagong. 1 Authorised Capital Tk 500.00 Million
Pubali Bank Limited
2 Paid-up Capital 1k 338.80 Million
Bahaddarhat Branch, Chittagong.
IFIC Bank Limited 3 Quoted Price per Share
Agrabad Branch, Chittagong. DSE-30.06.2017 1k 37.10
Exim Bank Limited
CSE-30.06.207 1k 36.90
United Commercial Bank Limited DSE-09.11.2017 1k 27.00

Agrabad Branch, Chittagong. CSE-09.11.2017 1k 26.90
Premier Bank Limited
Khatungonj Branch, Chittagong.

Number of
Shareholders
Number of
Shares
Comany
Ta ka
ProFi(e
Sponsors 4 16,199,865 161,998,650
Institutions &
General Public 4319 17,680,135 176,801,350
4,323 33,880,000 338,800,000
SHARE HOLDING POSITION (30.06.201 7)
Number of Number of
Ta ka
Shareholders Shares
Sponsors 4 15,728,353 157,283,530

Institutions &
General Public 4481 18,151,647 181,516,470
4,485 33,880,000 338,800,000
Management Ratios
1-Jul-16 1-Jan-15
to to
30-Jun-17 30-Jun-16
I
12 months 18 months
A) Liquidity & Solvency Ratios
1. Current ratio 0.98 1.00 1.01 : 1.00
2. Acid test ratio 0.94 1.00 0.94 : 1.00
I B) Operating Ratios
1.
1. Cost of sales to sales
2. Operating expenses to sales
C) Profitability Ratios
profit to sales
(yo
79.71
934
20.29

75.01
7.23
24.99

2. Net profit /(loss) before income tax to sales (J/
(4.24) 2.43

3. Net profit /(loss) after income tax to sales (6.46) 1.80

I 4. Earning per share (Basic) Taka (2.97) 0.84
I D) Activity Ratios
1. Inventory turnover ratio
2. Inventory holding period
Times
Month
12.34
0.97

9.18
1.31

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cement Notice of Thiaramit
21't Annual General Meeting
Notice is hereby given that the 21" ANNUAL GENERAL MEETING of Aramit Cement Limited will be
held on Monday, the 11th December, 2017 at 12.00 noon at Chittagong Club Limited, S.S. Khaled Road,
Chittagong to transact the following businesses:
AGENDA
1. To receive, consider and adopt the Directors' Report, Audited Financial Statements and
Auditor's Report thereon for the year ended 30 June 2017.
2. To elect Directors of the company.
3. To appoint Auditors for the financial year 2017-18 and to fix their remuneration.
4. To transact any other business with the permission of the Chair.
By order of the Board
(Syed Kamruzzaman, FCMA)

Chittagong Company Secretary
08 November 2017
NOTES:
uJ
I) The Shareholders whose names will appear in the Share Register of the Company or in the
Depository Register on Record date i.e. Thursday 16 11 November 2017 will be entitled to attend the
Annual General Meeting.
ii) A Member entitled to attend and vote at the Annual General Meeting may appoint a proxy to attend
and vote in his/her stead. The proxy form, duly stamped, must be deposited at the Registered Office
of the Company not later than 48 hours before the time fixed for the meeting.
F-
iii) Members are requested to notify change of address, if any, to the Company before the 'Record
Date"
00
iv) In pursuance of BSEC's Notification No. SEC/SRMI/2000-953/1950 dated 24 October 2000
gazetted on 07 November 2000 as well as BSEC's circular no.SEC/CMRRCD/2009-193/154 dated
24 October 2013, the Company shall hold discussions in Annual General Meeting strictly in
conformity with the provisions of relevant clauses of Companies Act, 1994 and no benefit in cash or
kind, other than in the form of cash dividend or stock dividend, shall be paid to the holders of equity
securities.
v) For the sake of convenience, shareholders are requested to submit their queries on the Directors'
Report and the Audited Financial Statements for period ended 30 June 2017, if any, at the
Registered Office of the Company preferably 3 days before the day of the Annual General Meeting.
vi) Admission to the Meeting Hall will be strictly on production of attendance slip sent with the Annual
Report.

• -w -
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•iii.
Managing Director (CEO)

Mr. S.M. Mrs. Rukhmila Zaman
JibanBima E RaShid BulIdIh& 160 Stand
Rdad, Chittagong:
Director Pr Director
Shukia Das A.K. MIJ4ur Rahman
Deputy Magtng Director
BangladeslVbevelbpmeflt Bank Ltd.
8 B. Rajuk Avenue, Motijheel,
Head Office, Dhaka.
Independent Director Independendent Director

Mr. S. M. Rezaur Rahman Mr. Md. Towhidul Anowar
Managing Director Deputy Managing Director
Sofsys Computing & Data Processing Ltd. Karnafuli Insurance Company Ltd.
MotiJheeel, C/A, Dhaka.
Chittagong.
Director's Report
for the year ended 30 June 2017
Bismillahir Rahmanir Rahim

Honorable Shareholders
It gives me immense pleasure to welcome you all on behalf of the Board of Directors to the 21st Annual
General Meeting of the Company. Now I would formally present before you the Directors' Report,
Audited Financial Statements prepared in accordance with BAS and Auditors' Report thereon for the
year ended 30 June 2017 for your kind consideration and approval.
Preface
Your Company has completed another successful year of commercial operation. During the period, the
Company sold out its product "Camel Brand Cement" both in local market and export to India and
Karnaphully Export Possessing Zone.Management of the Company made tremendous effort to
popularize the Brand both in local and export market overcoming all setbacks and unstable conditions
prevailing there.
Sales volume was much higher during the period as compared to last year but our financial
performance is not satisfactory and the net loss after tax made for the year 2016 -17 is Tk.-
100,665,287.00.
Production
During the period your Company was able to produce a total of 269,747 metric tons of cement which
was 74.93% of installed capacity. However, achievement of production is not up to the mark in respect
of capacity of machinery and present requirement of local market. Productions of the last five years
have been summarized in the following table:
01JuIy2016 01Jan2016 Ol Jan 2Ol5 01 Jan 2015 01 Jan 2014 01 Jan 2013 01 Jan 2012
to to to to to to to
30 June 2017 30 June 2016 31 Dec 2015 30 Jun 2016 31 Dec 2014 31 Dec 2013 31 Dec 2012
Particulars
12 Months 06 Months 12 Months 18 Months 12 Months 12 Months 12 Months

Installed Capacity (In MI) 360,000 105,000 210,000 315,000 210,000 210,000 210,000

Actual Production (In MT) 269,747 119,977 139,603 259,580 101,079 138,784 178,615
It appears from the above that production of cement has been decreasing gradually from the year 2012
to 2014 and increased in the years 2015-16 to 2016-1 7due to increase demand of our product in the
market.
Sales
During the period under review sales comes to 269,747 MT of cement as against 119,977 MT in the
year 2016 (06 months) & 139,603 MT in the year 2015 (12 Months). Accordingly, net turnover in 2016-
17 stands at Tk. 1558.26 million against Tk. 710.44 million in 2016 (06 months) and 863.49 million in
2015 (12 months).Sales activities were accomplished through dealers and large number of non-dealers
throughout the country during the year under review. Moreover, the Company exported 39,220 metric
tons of cement to India and KEPZ during year 2016-2017 against 15,670 & 23,425 metric tons in the
year 2016(6 months) & 2015(12 months). The Company has arranged dealer conference every year at
Tripura, India and KEPZ to explore the market and the export in the year 2017-18 is expected to rise
due to wide change in the sales policy.

Financial Performance
Financial performance of the Company during the year 2016 - 2017 along with previous years are briefly
summarized below:

01 Jul 2016 01 Jan 2016 01 Jan 2015 01 Jan 2015 01 Jan 2014 01 Jan 2013 01 Jan 2012


Particulars 30 June 2017 30 June 2016 31 Dec 2015 30 Jun 2016 31 Dec 2014 31 Dec 2013 31 Dec 2012
Taka Taka Taka Taka Taka Taka Taka
Net Sales 1,558,264,409 710,439,383 863,484,320 1,573,923,703 623,698,928 871,405,186 1,102,097,948

Gross Profit 316,159,274 159,285,958 234,033,315 393,319,273 149,462,391 194,924,637 214,589,039
Trading Profit 170,682,200 112,670,328 166,793,296 279,463,624 102,433,991 139,997,428 163,160,372
Profit before income tax (66,086,945) 16,402,733 21,859,379 38,262,112 15,707,893 54,078,352 70,379,269
Provision for income tax 34,578,342 4,54,443 5,372,361 9,916,804 477,276 10,636,421 19,126,683
Profit after income tax (100,665,287) 11,858,290 16,487,018 28,345,308 15,230,616 43,441,931 51,252,586
Proposed dividend 6,776,000 33,880,000 40,656,000 33,880,000 16,940,000 16,940,000
It can be observed that in the year 2016-17 net loss after income tax stood at Tk.-1 00,665,287.00 against
net profit after income tax at TK.1 1,858,290 in I st six months of the year 2016 and TK.16,487,018 in
the year 2015. In fact with the entry of Dhaka based cement manufacturing companies participated in the
local market of Chittagong region and sold out their product at a very low price which gave a threat towards
dropping of sales value.
Management Discussion
The Board of Directors in every quarter discusses about Cost of Goods sold, Gross Profit Margin, and Net
Profit Margin and takes necessary steps in time. A report on management discussion and analysis is
included in annexure -1.
Risk factors and concerns

The Board has established a risk and control structure designed to manage the achievement of business
objectives. A summary of the most significant risks is included in arinexure-iii.
Credit Rating
Credit Rating Information and Service (CRISL) assigned rating as below:

Long Term Short Term

BBB+ ST-4

Stable Stable
10

Contribution to the National Exchequer

The Company contributed an amount of Tk. - 359,356,409.00 to the National Exchequer in the form of
Customs Duty, Value Added Tax (VAT) and Advance Income Tax during the period from 01 July 2016
to 30 June 2017 under review. Contributions to the national exchequer made under various heads
during the last five years have been mentioned below:
01 Jul 2016 01 Jan 2016 01 Jan 2015 01 Jan 2015 01 Jan 2014 01 Jan 2013 01 Jan 2012
Particulars 3O June 2Ol7 3O June 2Ol6 31 Dec 2015 30 Jun 2016 31 Dec 2014 31 Dec 2013 31 Dec 2012
Taka Taka Taka Taka Taka Taka Taka
Value Added Tax 202,633,794 97,732139 117,277,988 215,010,127 77,297,022 118,343,568 154,995,289
Duties at Import stage 105,305,705 51,377,909 52749,448 104,127,357 55,277,788 24,626,444 51,686,919
Advance Income Tax-Adjustable
51,416,910 24,682,016 23,536,746 48,218,762 33,990,124 38,588,574 47,947,274
/Refundable
Total 359,356,409 173,792,064 193,564,182 367,356,246 166,564,934 181,558,586 254,629,482
Training
Officers, workers and employees of different categories were given scope for participating in various
training courses, workshops and seminars to improve their efficiency and productivity during the year
under review. In-house training programs are also arranged regularly.
Environmental aspect
Honest efforts are being made to keep the surrounding environment pollution free and accordingly
factory premises are always kept clean and hygienic. Disposal of waste are supervised carefully and
plantation of trees are carried out in and around the factory premises regularly.
Rotation of Directors
As per clause 100(a) and 100(c) of the Articles of Association of the Company, one third of the Directors
retire by rotation in every Annual General Meeting. In this Annual General Meeting, Directors namely,
Mr. S. M. Jamal Ahmed and Ms. Shukia Das will retire and eligible for re-election.
Directors' Remuneration
The Chief Executive Officer is paid remuneration as approved by the Board of Directors and subsequently by the
Shareholders in Annual General Meeting (AGM). Other than this, all directors including Independent Directors are
paid attendance fee for each meeting of Board of Directors actually attended by them.
Appointment of Auditors
The existing auditors of the Company M/s Hoda Vasi Chowdhury & Co., Chartered Accountants will retire at this
meeting. They have submitted a written request for re-appointment as auditors of the Company for the year 2017-
18 as per provision of Section 210(1) of the Companies Act, 1994. They are eligible for re-appointment as auditor
for 2017-18. If any other proposal of Chartered Accountants firms are received within the stipulated time will be
placed in the 21 st Annual General Meeting. The honorable shareholders will decide for appointment of auditor for
2017-18.
Dividend
You are well aware that the Company paid 10% Cash interim dividend out of the profit for the year 2015 and 2%
cash dividend out of profit for the year 2016(06 Months) to the honorable Shareholders. During the year under
report, the Board of Directors has not recommended any dividend for the year ended 30 June 2017 due to loss
incurred in the period under report and there are no fund existing in the company to distribute among the
shareholders.
11
Discussion on continuity of any Extra-Ordinary gain or loss
There was no extra-ordinary gain or loss during the year 2016-2017.
Related Party Transaction
Basis of the related party transactions with the company has been elaborated in the audited financial statements
under in note no. 37 in accordance with relevant Bangladesh Accounting Standards (BAS).
Utilization of IPO proceeds and financial results after IPO
Company had no unutilized IPO fund after going IPO.
Significant variance between quarterly and annual financial performance
There was no significant difference between quarterly performance and overall annual performance. Throughout
the year Company was able to maintain a judicious performance both in operational and financial perspective.
Outlook and possible future development
The future of the cement business is very bright because of various development activities undertaken both at
govt. and private sectors in the current year as a result consumption of cement will culminate into a big figure. So
that profit level of the company is expected to rise appreciably if a good volume of cement can be supplied as per
requirement of the govt. projects and demand of the public in general. But growth is depended largely on the politi-
cal situation and other favorable factors. Moreover the rate of urbanization is expanding day by day rapidly which
ultimately transform into the development of Real Estate sector. The house rent in the urban area is extremely on
the higher side which usually haunts the mind of middle class earning people to manage somehow to make invest-
ment in real estate sector to own a living space with their hard earned money and thereby saves a big amount on
account of house rent. As a result a huge volume of cement is expected to consume at various level of construction
in the days to come.
Our Second Unit having a capacity of 1000 MT per day has already started commercial production. As a result our
total production per day shoot up at 1700 MT per day and expected revenue can easily be generated if sufficient
volume of delivery can be made in current year.
Our mission and vision is to develop a strong growth momentum in coming year with a target of occupying a fair
share in the cement market both at home and abroad. We shall also be more focus on customer care through inno-
vation of product and services as well as through optimization of its sales with low profit margin maintaining the
standard quality.
Corporate Governance
In recent times, the issue of Corporate Governance practice has assumed paramount importance as it paves the
way for efficient management of a company through making it accountable and transparent to the shareholders
and then nation as well. In view of this, the Securities and Exchange Commission has issued a number of guide-
lines that are required to be disclosed to the shareholders and accordingly the status report of such conditions have
been summarized in the "Annexure - A" as per the SEC Notification No. SEC/CMRRCD/2006-1 58/1 34IAdmin/44
dated 07 August 2012.
Welfare activities extended to employees
1. Picnic: The management, officers, staff and workers of the Company are enjoying picnic once in every year.
Annual cultural program is held at the picnic spot.
2. Haj program: One person from the permanent employees of the group is sent to perform Holly Haj once in every
year by selection through lottery at the cost of the Company.
Corporate Social Responsibility
1. Blood donation: The management organizes blood donation campaign jointly with "Sandhani" once in a year. The
managers, officers, staff and workers of the Company donate blood to the Sandhani" in factory premises.
2. Relief distribution: As the part of Corporate Social Responsibility, the Company distributed blankets and warm
clothes in winter season to the distressed people. In rainy season relief is also distributed to the flood affected people
of various areas of the country.
12
Subsequent Events
There were no subsequent events between the balance sheet date and the date of this report which could
have significant impact on the financial results of the Company.
Directors' responsibilities statement
Pursuant to the Commission's Notification No SEC/CMRRCD/2006-158/129/Admin/44 dated 07 August 2012 the
Directors confirm that:
a) The financial statements prepared by the management of Aramit Cement Limited fairly presents its state of
affairs, the result of its operations, cash flows and changes in equity.
b) Proper books of account of the Company have been maintained.
c) Appropriate accounting policies have been consistently applied in preparation of the financial statements and
that the accounting estimates are based on reasonable and prudent judgment.
d) International Accounting Standards (lAS) I Bangladesh Accounting Standards (BAS) / International Financial
Reporting Standards (IFRS), as applicable in Bangladesh, have been followed in preparation of the financial state-
ments and any departure there-from has been adequately disclosed.
e) The system of internal control is sound in design and has been effectively implemented and monitored.
f) There are no doubts upon the Company's ability to continue as a going concern and the annual accounts have
been prepared on going concern basis.
g) The significant deviations from last year in the operating results of the Company have been highlighted in the
report and reasons thereof have been explained.
h) The number of Board Meetings held during the year and attendance by each director is disclosed in "Annuxu-
re-Il".
i) The pattern of shareholding is disclosed in "Annexure-IV".
j) A compliance status report with requirements of corporate governance as required by Commission is disclosed
in Corporate Governance Report and its annexure.
Conclusion
In conclusion, the Board of Directors would like to express their gratitude for valuable assistance and support
extended to the Company by the various Government and Non-Government Agencies such as Financial Institu-
tions like Investment Corporation of Bangladesh, Sadharan Bima Corporation, Bangladesh Development Bank
Ltd., Bangladesh General Insurance Company Limited, Karnaphuli Insurance Company Limited, Aramit Limited,
other related organizations, Government Authority, Auditors, Securities and Exchange Commission, Dhaka Stock
Exchange Ltd., Chittagong Stock Exchange Ltd., Central Depository Bangladesh Limited. The Board also
expresses their heartiest gratitude to Utility provider and all the valued Shareholders of the Company for their
investment in the Company.
The Board of Directors would also like to express their special thanks to all grades of employees of the Company
for their dedicated service.
We place on record our appreciation to the dealers, customers and suppliers for their contribution to the success
of the Company.
Allah Hafez.
On behalf of the Board
S.M. Jamal Ahmed

Chairman
Chittagong, 28 October 2017.
13
ANNEXURE -
Management Discussion and analysis:
Management discussion and analysis are stated below in detail to provide the readers with an overview of the
operational results.
Financial Performance

O1 Jul 2O16 Ol Jan 2Ol6 Ol Jan 2Ol5 Ol Jan 2Ol5 01 Jan 2014
to to to to to
Particulars
3O June 2Ol7 3O June 2Ol6

31 Dec 2015 30 Jun 2016 31 Dec 2014
12 Months 06 Months 12 Months 18 Months 12 Months

Taka Taka Taka Taka Ta ka
Cost of Goods Sold 1,242, 105,134 551,153,425 629,481,005 1,180,634,430 474,236,537

Gross Profit 316,159,274 159,285,958 234,033,315 393,319,273 146,462,391
Net Profit (100,665,287) 11,858,290 16,487,018 28,345,308 15,230,616
Cost of Goods Sold
Cost of goods sold means cost of products which was sold during the year. Cost of goods sold contains all the
costs directly related with finished goods for sale i.e. raw materials including all duties and taxes, carrying, handling
and other costs. Cost of goods sold differs with production and sales. Cost of goods sold in 2016-2017 (12 months)
has increased by 2.13% & 7.16% as compared to 2016(6 Months) & 2015(12 Months).
Gross profit to sales
Gross profit is the difference between sales and cost of goods sold. The gross profit margin is one indicator of the
financial health of a business. Larger gross profits are better for business. During the period gross profit to sales
is 20.29 % which is decreased by 2.13% & 6.81% against the year 2016(6 Months) & 2015(12 Months).
Net profit to sales
Net profit is the difference between gross profit and expenses including tax and WPPF. It's showing what the
business has earned or loss during the period. During the period net profit to sales is negative i.e. (6.46
ANNEXU RE-Il
Number of Board and Audit Committee Meeting for the year 2016- 2017
Audit Committee
Board Meeting Meeting
Name of the Directors Position No. of No. of No. of No. of
meeting meeting meeting meeting
held attended held attended
Mr. S. M. Jamal Ahmed Chairman 6 6 - -
Ms. Rukhmila Zaman Managing Director 6 6 - -
Mr. Sakib Aziz Chowdhury Director 6 4 - -
Ms. Nasrin Sultana Director 6 6 - -
Mr. S. M. Rezaur Rahman Independent Director 6 6 3 3
Mr. Md. Towhidul Anowar Independent Director 6 6 - -

Mr. Wahiduzzaman Khandaker Director 6 - - -
Ms. Nasir Uddin Director 6 - - -
14
Risk factors and concerns
Foreign Currency Risk: As ACL is dependent on import for clinker and few other key raw materials, it is
exposed to volatility of exchange rate of Taka against Dollar. Recently, the exchange rate of US Dollar is relatively
volatile and therefore the concern needs to pay comparatively higher price for import which may affect ACL's
profitability.
Interest Rate Risk: The Company has significant bank fund dependency for working capital management and
pays a significant amount of bank interest and charges. The Bangladesh Bank already made a recommendation
for reduction of interest rates to the scheduled banks but the scheduled banks did not curtail the rates as
recommended by the central bank which is affecting the financial performance of the company badly.
Operational Risk: The project of the company is situated at a high land where less amount of flood is recorded.
The factory building has well-built foundation to withstand fire, wind, storm, rain etc. along with good drainage
facility. ACL gets required power from its sister concern namely Aramit Power Limited which generates 4.08 MW
electricity. However, gas supplied by Karnafully Gas Distribution Company Ltd. is not adequate for current
requirement for that reason set-up work of 33 KV sub- station from PDB is going on in the factory premises. On the
contrary, ACL has already developed its human resource base for in-house servicing of plant and machinery. It
also does not possess any major technological risk in near future and there's a little possibility of invention of new
and more cost effective technology in the long run which may cause functional obsolescence of existing plant.
Raw Material Supply Risk: Clinker, slag, Limestone and gypsum are the main raw material for producing
cement. The company does not have any raw material supply agreement with any supplier; however that has not
been a problem since commencement of production due to long standing good relationship with the suppliers. In
general, the company maintains adequate stock of raw materials (mainly clinker) to ensure smooth production. So
far, the company faced no noticeable crisis in arranging the supply need.
Market Risk: There are some multinational giants who produce a huge quantity of cement and their marketing
policy is stronger than local companies. Aramit Cement Limited has taken initiative to increase the production
capacity. However, the cement industry is dependent on growth of development and construction of the whole
economy. Market demand in Bangladesh is estimated to be 25-30 million MT/ annum. Existing producers are
almost ca p able to meet this demand. Under the above backdrop, Aramit Cement Limited needs firm concentration
on ensuring quality in addition to extensive advertising and promotional effort to ensure profitable sustainability in
the market.
Compliance Risk: Cement manufacturing has an impact on the surrounding environment. Cement
manufacturing consumes large quantities of non-renewable raw materials (minerals and fossil fuels). It is also an
important source of CO2 emissions. It deserves mention here that the company has installed Air Pollution Controller
(APC) in order to comply with environmental code. Mixing Ratio of two types of Cement manufactured by the
comoanv is as follows:
Types Clinker Lime Stone & urn
Portland Composite Cement (PCC) 68 29 3
Ordinar y Portland Cement (OPC) 97 Nil 3
Quality Control Risk: Quality indicators of cement produced by the company have been found to be consistent
with the standard requirements of both BOS EN (European) and ASTM (American) standards. BUET made tests
of some quality parameters for Aramit Cement (say for example, compressive strength at 03 days, 07 days & 28
days) that revealed an outstanding value compared to the standard. Details of recent BUET test results (PSI) weigh
against standard are outlined below:
Compressive strength (psi)
Type of Cement 3 days 7 days 28 days
PSI PSI PSI
Portland Composite Cement 3,160 4,580 5610
Ordinary Portland Cement 3,620 5,180 6,540
15
From the above comparison, it can be concluded that the company's product complied all requisites
regarding excellence.
The management of the Company is trying its level best to overcome the above risk factors as far as
practicable for achieving better results in future.
ANNEXURE-IV
Pattern of Share Holding as on 30 June 2017
Shares held by Number of Percent Remarks

Shares held age of
holding
Parent Company - - The company is not subsidiary of
any Company
Represented by -
Aramit Limited 6,534,000 19.29% Mr. S. M. Jamal Ahmed
Ms. Rukhmila Zaman
Bangladesh Development Bank Ltd.

1,936,000 5.71%
Repsenented by -
Mr. A. K. M. Hamidur Rahman
Investment Corporation of Bangladesh 2,186,033 6.45% Represented by—
Ms. Shukla Das
Chief Executive Officer and his spouse and
minor children: Ms. Rukhmila Zaman 5,072,320 14.97%
Company Secretary and his spouse and - -
minor children
Chief Financial Officer and his spouse and - -
minor children
Head of Internal Audit and his spouse and - -
minor children
Executives (Top five salaried persons other
than CEO,CS,CFO,HIA):
1. Mr. Naimul Islam Chowdhury,(CMO). - -
2. Mr. Kamal Miah,(GM,Operation).
3. Mr. Mir Moinuddin Ahmed,(DGM Sales - -
& Marketing).
4. Mr. Mohammed Zaved,(DGM Sales & - -
Marketing).
5. Mr. Md. Mominul Islam, AGM, Quality
Shareholders holding ten percent (10%) or
more voting interest in the company - -
General Public:
Institutions - 5,802,251 17.13%
Others- 12,349,396 36.45%
Total 33,880,000 100.00%1
16

Report of the status of compliance of corporate governance Annexure - A

Status of compliance with conditions imposed by the Commission's Notification No SEC/CMRRCD/2006 -
1 58/I 29/Admin/44 dated 07 August 2012 issued under section 2CC of the Securities and Exchange Ordinance, 1969:
Condition Title Compliance Status Remarks
No (Put in the appropriate (if any)
column)
Complied Not
Complied
BOARD OF DIRECTORS
• I Board Size
1.2 Independent Directors
1.2(i) Number of Independent Director Complied
I .2(ii)(a) Shareholding by Independent Director Complied
1 .2(ii)(h) Family Relationship with Independent Director Complied
I .2(ii)(c) Other relationship with Independent Director Complied
I .2(ii)(d) Membership of Independent Director with Stock Complied
Exchanges
I .2(ii)(e) Shareholding, Directorship or employment of Complied
Independent Director with any Stock Exchanges or
Capital Market Intermediaries _______________
I .2(ii)(f) Association of Independent Director with audit firm Complied
(currently or preceding 3 years)
I .2(ii)(g) Independent Director holding same position in more Complied
than 3 listed companies
1 .2(ii)(h) Bankruptcy of Independent Director Complied
I .2( ii )( I) Criminal Offence involving moral turpitude of Complied
Independent Direct
I .2(iii) Appointment and Approval of Independent Director Complied
by_HOD_ and _AGM
I .2(iv) Vacancy of post of Independent Director for not more Complied
than 90 clays
1.2(v) The Board shall lay down a Code of Conduct of all Complied
Board Members and Annual compliance of the code to
be recorded
In 101" OD Meeting
I .2(vi) The tenure of office of an Independent Dircctor shall Complied
held on 2715 October 2016
be for a period of 3 (three) years, which may be they have been
extended for (one) term only appointed for another 03
years which was approved
by Shareholders n 20'
AGM.
1.3 Qualification of Independent Director
1.3(i) Independent Director shall be a knowledgeable Complied
individual with integrity who is able to ensure
compliance wit financial, regulatory and corporate
laws and can make meaningful contribution to business
1.3(u) Academic Background and Experiences of Complied
Independent Director
1.3(iii) Exemption of requirement of qualification and Complied
experiences Independent Director by the commission
1.4 The positions of the Chairman of the Board and Chief Complied
Executive Officer of the company shall be filled by
different individuals.
1.5 The Directors' Report to Shareholders
Industry outlook and possible future developments in Complied
the industry
I.5(u) Segment —wise or product-wise performance Complied
17
1 .5(iii) Risks and concerns Complied
1.5(iv) A discussion on Cost of Goods sold, Gross Profit Complied
Margin and Net Profit Margin
1.5(v) Discussion on continuity of any Extra-Ordinary gain or Complied
loss
I .5(vi) Basis for related party transactions- a statement of all Complied
related party transactions should be disclosed in the
annual report
1 .5(vii) Utilization of proceeds from public issues, rights issues Complied
and I or through any others instruments
1.5(viii) An explanation if the financial results deteriorate after Complied
the company goes for Initial Public Offering (IPO),
Repeat Public Offering (RPO), Rights Offer, Direct
Listing, etc.
1 .5(ix) If significant variance occurs between Quarterly Complied
Financial performance and Annual Financial
Statements the management shall explain about the
variance on their Annual Report
1.5(x) Remuneration to directors including Independent Complied
Directors
I .5(xi) The financial statements prepared by the management Complied
of the issuer company present fairly its state of affairs,
the result of its operations, cash flows and changes in
equity
I .5(xii) Proper books of account of the issuer company have Complied
been maintained
I .5(xiii) Appropriate accounting policies have been consistently Complied
applied in preparation of the financial statements and
that the accounting estimates are based on reasonable
and prudent judgment
1.5(xiv) International Accounting Standards (IAS)/ Bangladesh Complied
Accounting Standards (BAS) / International Financial
Reporting Standards (IFRS)/ Bangladesh Financial
Reporting Standards (BFRS), as applicable in
Bangladesh, have been followed in preparation of the
financial statements and any departure there - from has
been adequately disclosed
1 .5(xv) The system of Internal Control is sound in design and Complied
has been effectively implemented and monitored
I .5(xvi) There are no significant doubts upon the issuer Complied
company's ability to continue as a going concern. If the
issuer company is not considered to be a going concern,
the fact along with reasons thereof should be disclosed
1 .5(xvii) Significant deviations from the last year s operating Complied
results of the issuer company shall he highlighted and
the reasons thereof should be explained
1 .5(xviii) Key operating and financial data of at least preceding 5 Complied
(five) years shall be summarized.
I .5(xix) If the issuer company has not declared dividend (cash Complied
or stock) for the year, the reasons thereof shall be given
I .5(xx) The number of Board Meetings held during the year Complied
and attendance by each director shall be disclosed
I .5(xxi)(a) Share held by Parent! Subsidiary! Associated Complied
Companies and other related parties (name wise
details)
1.5(xxi)(b) Share held by Directors, Chief Executive Officer, Complied
Company Secretary, Chief Financial Officer, Head Of
Internal Auditor and their spouses and minor children
(name wise details)
18
I .5(xxi)(c) Share held by executives (Top 5 salaried) Complied
I .5(xxi)(d) Share held by shareholders holding ten percent (10%) Complied
or more voting interest in the company (name wise
details)
I .5(xxii)(a) A brief resume of director Complied
I .5(xxii)(b) Nature of his/her expertise in specific functional areas Complied
I .5(xxii)(c) Names of companies in which the person also holds the Partly
directorship and the Membership of committees of the Complied
board
2 CHIEF FINANCIAL OFFICER (CFO), HEAD OF INTERNAL
AUDIT AND COMPANY SECRETARY (CS)
2. 1 The Company shall appoint a Chief Financial Officer Complied
(CFO), a Head of Internal Audit (Internal Control and
compliance) and a Company Secretary (CS). The
Board of Directors should clearly define respective
roles, responsibilities and duties of the CFO, the Head
of Internal Audit and the CS.
2.2 The CFO and the Company Secretary of the companies Complied
shall attend the meetings of the Board off Directors,
provided that the CFO and / or the Company Secretary
shall not attend such part of a meeting of the Board of
Directors which involves consideration of an agenda
item relating to their personal matters
3 AUDIT COMMITTEE
3(i) The company shall have a Audit Committee as a sub- Complied
committee of the Board of Directors
3(u) The Audit Committee shall assist the Board of Complied
Directors in ensuring that the financial statements
reflect true and fair view of the state of affairs off thee
company and in ensuring a good monitoring system
within the business
3(iii) The Audit Committee shall be responsible to the Board Complied
of Directors. The duties of the Audit Committee shall
be clearly set forth in writing.
3.1 Constitution of the Audit Committee Complied
3.1(i) The Audit Committee shall be composed of at least 3 Complied
(three) members
3. 1(u) The Board of Directors shall appoint members of the Complied
Audit Committee who shall be directors of the
company and shall include at least 1 (one) independent
director
3.1 (iii) All members of the audit committee should be Complied
"financially literate" and at least I (one) member shall
have accounting or related financial management
experience.
3. l(iv) The Board of Directors shall appoint the new Complied
committee member(s) to fill up the vacaney(ies)
immediately or not later than 1 (one) month from the
date of vacancy(ies) in the Committee to ensure
continuity of the performance of work of the Audit
Committee
3.1(v) The Company secretary shall act as the secretary of the Complied
Committee
3.I(vi) The quorum of the Audit Committee meeting shall not Complied
constitute without at least 1 (one) independent director
3.2 Chairman of the Audit Committee
3.2(i) The Board of Directors shall select 1 (one) member of Complied
the Audit Committee to be Chairman of the Audit
Committee, who shall be an independent director
W61
3.3 Role of Audit Committee
3.3(i) Oversee the financial reporting process Complied
3.3(u) Monitor choice of accounting policies and principles Complied
3.3(iii) Monitor Internal Control Risk management process Complied
3.3(iv) Oversee hiring and performance of external auditors Complied
3.3(v) Review along with the management, the annual Complied
financial statements before submission to the board for
approval.
3.3(vi) Review along with the management, the quarterly and Complied
half yearly financial statements before submission to
the board for approval
3.3(vii) Review the adequacy of internal audit function Complied
3.3(viii) Review statement of significant related party Complied
transactions submitted by the management
3 .3(ix) Review Management Letters! Letter of Internal Control Complied
weakness issued by statutory auditors
3.3(x) Disclosure by the company to the audit committee on Complied
the utilization of fund raised through IPO!RIPO
quarterly! annually
3.4 Reporting of the Audit Committee
3.4.1(i) The Audit Committee shall report oil activities to the Complied
Board of Directors.
3.4.1(ii)(a) Report oil of interests None
3.4. l(ii)(b) Suspected or presumed fraud or irregularity or material None
defect in the internal control system;
3.4.1 (ii)(c) Suspected infringement of laws, including securities None
related laws, rules & regulations:
3.4.1 (ii)(d) Any other matter with shall be disclosed to the Board None
of Directors immediately
3.4.2 Reporting to the Authorities None
If the Audit Committee has reported to the Board of
Directors about anything which has material impact on
the financial condition and result of operation and has
discussed with the Board of Directors and management
that any rectification is necessary and if the Audit
Committee finds that such rectification has been
unreasonably ignored. the Audit Committee shall
report such finding to the commission, upon reporting
of such matter to the Board of Directors for three times
or completion of a period of six (6) months from the
date of first reporting to the Board of Directors,
whichever is earlier.
3.5 Reporting to the Shareholders & General Investors: Complied
Report on activities carried out by the Audit
Committee, including any report made to the Board of
Directors under condition 3.4.1(1) above during the
year, shall be signed by Chairman of Audit Committee
and disclosed in the annual report of the issuer
company.
4 External/Statutory Auditors Complied
4 (i ) Non-engagement of appraisal or valuation services or Complied
fairness opinions.
4(u) Non-engagement of financial information systems Complied
design and implementation.
4(iii) Non-engagement of book-keeping of other services Complied
related to the accounting records or financial
statements.
4(iv) Non-engagement of broker - dealer services Complied
4(v) Non-engagement of actuarial services Complied
20
5 Subsidiary Company
5(i) Provisions related to the compassion of the Board of Not Applicable
Directors of the holding company shall be made
applicable to the compassion of the Board of Directors
of the subsidiary company.
5(u) At least one ( I ) independent directors on the Board of Not Applicable
Directors of the holding company shall be a directors
on the Board of Directors of the subsidiary company.
5(iii) The minutes of Board Meeting of the subsidiary Not Applicable
company shall he placed for review at the following
Board Meeting of the holding company.
5(iv) The minutes of respective Board Meeting of the Not Applicable
holding company shall state that they have reviewed
the affairs of the subsidiary company also.
5(v) The Audit Committee of the holding company shall Not Applicable
also review the financial statements, in particular the
investments made by the subsidiary company.
6 Duties of Chief Executive Officer (CEO) & Chief
Financial Officer (CFO)
The CEO & CEO shall certify to the Board that they
have reviewed financial statements for the year and that
to the best of their knowledge and belief.
ô( i)(a) These statements don't contain any materially untrue Complied
statement or omit any material fact of contain
statements that might be misleading.
6( i)(b) These statements to gether present a true and fair view Complied
of the company's affairs and are in compliance with
existing accounting standards and applicable laws.
6( ii) There are, to the best of knowledge and belief, no Complied
transactions entered into by the company during the
year which are fraLidulent, illegal or violation of the
company's code of conduct.
Reporting & Compliance of Corporate Governance:
1 7
7(i) The company shall obtain a certificate from a Complied
Professional Accountant/Secretary (Chartered
Aeco LintantsiCost and Management
Accountant/Chartered Secretary) regarding
compliance of conditions of Corporate Governance
Guidelines of Commission and shall the same to the
shareholders along with the Annual Report on a yearly
basis.
7(u) The Directors of the company shall state, in accordance Complied
with the Anncxure attached, in the directors' report
whether the company has complied with these
conditions.
21

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25

Value Added Statement

for the year ended 30 June 2017
Taka in Lac

1-Jul-16 1-Jan-IS

to to

30-Jun-17 30-Jun-16

12 months 18 months
Description
Sources of Funds

Net Turnover 15,582.64 15,739.24

Less: Brought in materials and services 13,234.85) (12.873.74)

Value added 2,347.80 2,865.50

Add: Other Income 5 0.4 5 151.75
2.39825 3,017.25
Applied in the following ways
To Employees

Salary, wages, gratuity & other benefits 1.27925 1,212.71
Contribution to Workers' profit participation & welfare funds 20.14

279.25 1.23284
To Governments

Customs duty 1,053.06 1,041.27

Income Tax 345.78 99.17

Contribution to the national exchequer .398.84 1,140.44
To Provider of Capital

Dividends 67.76 677.60

2,745.85 3.95088
Retained by the Company
To pay for capital expenditure to replace existing assets, to

expand working capital and for growth
Depreciation 726,82 360.5 I
Others
ers
Retains earnings
Opening (358.82) (752.97)
Closing (715.59) 358.82
(347.59) (33.63)
2.398,25 3,017.25
26

Elements of Total Cost

1-Jul-16 1-Jan-15
toto
Percentage Percentage
30-Jun-17 30-Jun-16
12 months 18 months
Taka in lac Taka in lac
Raw Materials
Imported 8,643.21 51.94 8,410.44 53.89
Local - 290.73 1.86
Packing Materials 899.26 5.40 874.87 5.61
Factory Overhead 2,878.58 17.30 2,230.00 14.29
General and Administrative Expenses 442.14 2.66 494.26 3.17
Selling and Distribution Expenses 1,012.63 6.09 644.30 4.13
Financial Expenses 2,41 8.15 14.53 2,543.63 16.30
Others 345.78 2.08 119.31 0.76
16,639.75 100.00 15,607.54 100.00

2017 (12 Months) 2016 (18 Months)
0.76%
Ni
2.08%
4.13% 12
16.30%
6.09% 14.53% 3.17%
2.66%
51.94% 14.29% •4
17.30%
5
".1 5 r;
5.61% 1.86%
5.40%
7
7
Corporate Governance Report
Corporate Governance is to have a mechanism in place for the Board of Directors and other key management staff
to safeguard the shareholders interest and other stakeholders of the Company. Transparency in business transac-
tion and disclosure of information to regulatory bodies as part of its legal obligations constitute sound corporate
governance. Good corporate governance also means conformity to sound ethical principles and a code of conduct
in business dealings.
Board of Directors
Board of Directors is the representative and trustee of the shareholders of the Company. The Board of Directors of Aramit
Cement Limited comprises of six members including Chairman, Chief Executive Officer and the Board also has two
Independent Director in compliance with the corporate Governance Guidelines of BSEC. Board of Directors is performing
the responsibilities, among others, setting the Company's strategic objectives, providing leadership, supervision and
ensuring shareholders' interest.
Audit Committee
Aramit Cement Limited has an Audit Committee as a sub-committee of the Board of Directors. This committee is assisting
the Board of Directors in ensuring that the financial statements reflect true and fair view of the state of affairs of the Com-
pany and in ensuring a good monitoring system within the business. This committee is responsible to the Board of Direc-
tors and its duties and responsibilities are clearly set forth in writing. Audit Committee is reconstituted as per the guidelines
of BSEC.
Audit Committee holds regular meetings on the following major issues:
• To review the financial statements and reporting process and monitor the choice of accounting policies and principles
• To review the business risk management
• To review the internal audit assessment
• To oversight the good corporate practices
• To review the adequacy of internal audit function etc.
A separate report of the audit committee is included.
Chairman and Chief Executive Officer
Chairman and Chief Executive Officer are two separate individuals selected by the Board of Directors of Aramit
Cement Limited. Both are performing defined responsibilities and focusing on the strategic value addition of the
Company.
Directors' Report to the Shareholders
Board of Directors is reporting the performance, annual achievements and status of the Company's activities to the
shareholders. They are also conveying the future plan and outlook of the industry and Company in their report.
Chief Financial Officer, Company Secretary and Head of Internal Audit
Company has appointed two qualified Cost Accountants designated as Chief Financial Officer and Company Secre-
tary. The Chief Financial Officer and Company Secretary regularly advise and assist the Board on financial strategy
and compliance issues of the regulatory bodies. Chief Financial Officer and Company Secretary is also attending
Board Meeting as per Corporate Governance notification of the BSEC. Company's internal audit department is also
headed by a Head of Internal Audit having professional expertise and experiences in the field of internal audit.
Board of Directors clearly defined respective roles, responsibilities and duties of the Chief Financial Officer and
Company Secretary and Head of Internal Audit.
Internal Audit and Control
Aramit Cement Limited established an Internal Audit Department consisting of professional and knowledgeable
employees. Internal Audit Department directly reports to the Board of Directors.
Internal Audit department regularly conducts their audit based on a yearly Internal Audit Plan and checks, verifies
and reviews the compliance of Internal Control Procedure and other regulatory requirements.
External Auditors
External Auditors of Aramit Cement Limited is appointed in every Annual General Meeting (AGM) by the Sharehold-
ers of the Company as per Companies Act, 1994. Company also conforms to the requirement of Bangladesh Secu-
rities and Exchanges Commission in appointing external auditors. External Auditors are not engaged to perform any
of the tasks other than external/ statutory audit.
Certification on the Compliance of Corporate Governance Guidelines of BSEC
A certificate regarding compliance of conditions of Corporate Governance Guidelines of the Bangladesh Securities
and Exchange Commission is included in the annual report.
28
MRHDEY&tO
m rh
Since 1982 Chartered Accountants
Certificate on compliance with conditions of Corporate Governance by

Aramit Cement Limited for the year ended 30 June 2017
We certify
That to the best of our knowledge, information and according to explanations given to us.
Aramit Cement Limited has complied with the requirements of Corporate Governance
Guidelines for the year ended 30 June 2017 as per compliance requirements of the conditions
imposed by the Bangladesh Securities and Exchange Commission's Notification
No,SEC/CMRRCD/2006-158/134/Admin/44 dated 07 August 2012 Issued under section 2CC
of the Securities and Exchange Ordinance. 1969 and
ii. That its report under condition 7(u) of the said notification appropriately reflects the state of
compliance.
Dated : Chittagong 04 November, 2017 tCdAC MRH DEY

Chartercd Accountants
29
aramit cement limited
Report of the Audit Committee
Aramit Cement Limited has an Audit Committee as a sub-committee of the Board of Directors. The Audit Committee
assists the Board of Directors in ensuring that the financial statements reflect true and fair view of the state of the
affairs of the company and in ensuring a good monitoring system within the business. The committee is reporting
to the Board of Directors on performing of the clearly set forth responsibilities defined by the Board of Directors.
Committee Members
The Audit Committee of the Company consists of three members including two Independent Director knowledge-
able about finance and organizational management. The Committee has been reconstituted in line with Bangla-
desh Securities and Exchange Commission's notification on Corporate Governance as follows:
Mr. S. M. Rezaur Rahman - Independent Director - Chairman of Audit Committee
Mr. Md. Towhidul Anowar - Member
Ms. Shukia Das - Member
Main activities of the audit committee are summarized below:
1.Overseeing and monitoring of financial reporting process, adoption of reporting standards and control risk manage-
ment process
Audit Committee is assisting in the oversight of the financial reporting process, including monitoring the adoption
of reporting standards and internal control risks management process to ensure that appropriate financial reporting
process and standards used and adequate activities/ control measures to high risk areas are periodically evaluated
and tested.
2.Review of Periodic Financial Statements
During the year Audit Committee reviewed all periodical financial statements of the company. The review was made
along with the management and other stakeholders. Their reviewed ensure that the financial statements are
prepared in compliance with legal and accounting standards requirements and that the financial statements were
disclosed accurate, reliable and timely information of the Company.
3.Review of Internal Control Assessment
During the year, the committee revised and reviewed the internal control system and internal audit plan with an
emphasis on minimizing of defects, losses and fraud. The committee also reviewed that the internal control was
both adequate and effective.
4. Review of Internal Audit
During the year, the committee reviewed the activities of Internal Audit Department and take necessary action on
the basis of internal audit report.
Reporting of the Committee
On discharging its responsibilities, the audit committee has ensured the followings:
• Financial statements have been prepared and presented in compliance with all laws, regulations and standards
as applicable.
• The system of internal control as well as the financial records has been examined on the basis of the internal
audit findings.
• Proper and sufficient care has been taken for maintenance on adequate accounting records for safeguarding the
Company's interest and for preventing and detecting frauds and other irregularities.
-Appropriate risk control mechanism and Managerial Information Control are in place.
Observations, findings and suggestions of the committee were communicated to the Board of Directors and the
Board of Directors had taken appropriate measures on the report.
(S. M. Rezaur Rahman)

Chairman
Audit Committee
Independent Director of the Board
30
STATEMENT OF CEO AND CFO ON FINANCIAL STATEMENTS
28 11 October, 2017
The Board of Directors

Aramit Cement Limited
53, Kalurghat Heavy Industrial Estate,
P.O. Mohara, Chittagong.
We certify that:-
(I) We have reviewed financial statements for the year ended 30 June 2017 and that to
the best of our knowledge and belief:
a) these financial statements do not contain any materially untrue statement or

omit any material fact or contain statements that might be misleading;
b) these financial statements together present a true and fair view of the
company's affairs and are in compliance with existing accounting standards
and applicable laws;
(ii) There are, to the best of knowledge and belief, no transactions entered into by the
company during the year which are fraudulent, illegal or violation of the company's
code of conduct.

f/,q-t 2,, on
Rukhrnila Zaman Muhammed Shah Alani, FCMA
Chief Financial Officer
Chief Executive Officer
31
Hoda Vas! Chowdhury & Co.
Chartered Accountants
AUDITOR'S REPORT TO THE SHAREHOLDERS
OF
ARAMIT CEMENT LIMITED
We have audited the accompanying financial statements of ARArvIIT CEMENT LIMITED, which composes the
Statement of Financial Position as at 30 JUNE 2017 and the related Statement of Profit or Loss and Other Comprehensive
Income, Statement of Changes in Fquitv and Statement of Cash Flows for the year then ended, and a summary of
significant accounting policies and other explanatory notes.
Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with
Bangladesh Financial Reporting Standards (BFRS), the Companies Act 1994, the Securities and Exchange Rules 1987 and
other applicable laws and regulations. This responsibility includes: designing, implementing, and maintaining internal
control relevant to the preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error; selecting and appl y ing appropriate accounting policies; and making accounting estimates
that are reasonable in the circumstances.
Auditors' Responsibility
Our responsibility is to express an opinion oil financial statements based on our audit. We conducted our audit in
accordance with Bangladesh Standards oil (BSA). Those standards require that we comply \vith ethical
requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor's j udgment, including the assessment of the risks of material
misstatement of the financial statements, whether clue to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entit y's preparation and fur presentation of the financial statements in order to
design audit procedures that arc appropriate in the circumstances, but not for the purpose of expressing an opin " >n on
the effectiveness of the entit y's internal control. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of accounting estimates made b y management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion:
In our opinion, the Financial Statements prepared in accordance with Bangladesh Accounting Standards (BAS) &
Bangladesh Financial Reporting Standards (BFRS), gi ve a true and fair view of the state of the compan y 's affairs as at 30
JUNE 2017 and of the results of its operations and its cash flows for the year then ended and comply with the Companies
Act 1994, the Securities and Exchange Rules 1987 and other applicable laws and regulations.
Further to our opinion in the above paragraph, we state that:
(i) we have obtained all the information and explanations which to the best of our knowledge and belief were
necessary for the purpose of our audit and made due verification thereof;
(ii) in our opinion, proper books of account as required by law have been kept by ARAMIT CEMENT
LIMITED so far as it appeared from our examination of those books;
(iii) the Compan y's Statement of Financial Position, Statement of Profit or Loss and Other Comprehensive
Income and its Statement of Cash Flows dealt with by the report are in agreement with the books of account
and returns;
(iv) the expenditure incurred was for the purpose of the Company's business.

Chittagong, 1 November 2017 Chartered Accountants
32


STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2017
30 Jun 2017 I 3OJun 2016

Taka 1 Taka
ASSETS
NON CURRENT ASSETS 964,432,472 980,640,898
Propert y , lulan t & hquiprneiit 3 884,725,099 152,159,407
Capital Work in Progress 4 40,174,873 788,948,991
Investment 5 39,532,500 39,532,30()
CURRENT ASSETS 1,616,514,851

I nvcnhI ) ries 6 93,376,840 107,898,728

Tra(Ie Receivables 7 1,442,735,906 866,019,791

Advances, I)eposis and Prcpavrncnts 8 486,533,376 392,658,932

l)uc l'rom Associated Companies 9 331,704,495 231,456,525

Other Receivables 10 3,598,955 3,609,648

Cash and Cash I 1uivalcnts 11 25,886,047 14-871-227
TOTAL ASSETS 3,348,288,090 2,597,155,749
EQUITY & LIABILITIES
SHAREHOLDERS' EQUITY 377,940,681 485,381,968
Share Capital 12 338,800,000 338,800,000
Share PI-L.mimil 12.5 84,700,000 84,700,000
Reserves & Surplus (45,35,3 1 2)_ 61,881,968
General Reserve 13 26,000,000 26,000,000
Retained Earnints (7 1,559,319)1 1 35,881,968
NON CURRENT LIABILITIES 541,986,616 509,007,828
l'erni I a an & Lease Finance 14 497,662,762 490,068,622
I )eferred Tax 15 23,484,870 (497,813)
Provision for I mp1ovees' Rctiral Gratuity 16 20,838,984 19,437,019
CURRENT LIABILITIES AND PROVISIONS ,4ZS,,)ttJ, /'.j

,IJZ, /b5,'Ji

(urrcnt Portion of Term I .oan & I casc Finance 17 124,175,149 101,769,739

C urrent 15 rt1 >0 of Redeem al le Dehenrures 18 17,836,805 17,836,805

(redin rsan>.l i\eeruals 19 175,835,340 242,613,903

Provision 1'or TIiC0Ifle 1ix 20

24,402,318

13,806,659

Provision For \\PP & \\'I,' 21 31,335 890,158

Short Term I a Ian 22 2,017,398,385 1,114,111,406

Due to Assoctaicel Companies 23 28,233,018 57,720,441

[_1 ncla me(l I) ivid end 24 40,448,243 54,016,842

TOTAL SHAREHOLDERS' EQUITY & LIABILITIES 3,348,288,090 2,597,155,749

NET ASSET VALUE PER SHARE 32 11.16 14.33
CONTINGENT LIABILITIES AND COMMITMENTS 40
These financial statements should be read in conjunction with the annexed notes
and were approved b y the Board of Directors on 28 October 2017
and were signed on its behalf by
*-,."L
COMPANY SECRETARY DIRECTOR CHIEF EXECUTIVE OFFICER

hittutoni, I rNovernber 2( 17 FIODA VASI CHOWDHURY & CO
33


STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2017
01 Jul 2016 01 Jan 2015

to to
30 Jun 2017 30 Jun 2016
Note(s)
12 Months 18 Months
Taka Taka
Revenue 25 1,558,264,409 1,573,923,703

Cost of goods sold 26 (1,242,105,133) (1,180,604,430)
Gross Profit 316,159,276 393,319,273
Operating Expenses:
General and Administrative Expenses 27 (44,214,398) (49,425,897)
Selling and Distribution Expenses 28 (101,262,670) (64,429,752)
(145,477,068) (113,855,649)
Operating Profit 170,682,208 279,463,624
Financial Expenses 29 (241,814,518) (254,362,874)
Profit before other income (71,132,310) 25,100,750
Other Operating Income 30 5,045,365 13,173,158
Profit before WPP & WF (66,086,945) 40,275,908
Contribution Co) 5% of operating profit to
Workers profit participation & welfare funds 21 - (2,013,796)
Profit before income tax (66,086,945) 38,262,112
Income tax Expenses
Current 20 (10,595,659) (9,565,528)
Deferred 15 (23,982,683) (351,276)
(34,578,342) (9,916,804)
Profit after income tax (100,665,287) 28,345,308
Other Comprehensive Income
Unrealized Gain/ (Loss)
Total Comprehensive Income! (Loss) (100,665,287) 28,345,308
Earning Per Share (EPS):
Basic earning per share 31 (2.97) 0.84
These financial statements should he read in conj unction with the annexed notes
and were approved by the Board of Directors on 28 October 2017
and were signed on its behalf by:
COMPANY SECRETARY
4--,.,L
DIRECTOR
^, q, ^
—20^le
CHIEF EXECUTIVE OFFICER

Chittagong, 1 November 2017 HODA VASI CHOWDHURY & CO
34


STATEMENT OF CASH FLOWS
01 Jul 2016 01 Jan 2015

to to
Note(s) 30 Jun 2017 30 Jun 2016
12 Months 18 Months
Taka Taka ]
CASH FLOW FROM OPERATING ACTIVITIES

(:ash received from customers 7,11,26 981,558,987 1,046,558,144
3 6 817 20 21
Cash paid to suppliers and others (1,459,617,894) (1,331,752,148)
27, 28, 29
Payment for WPP & \VF 22 (890,157) (2,568,947)
I
Net cash inflow (outflow) from operating activities (A) (478,949,064) (287,762,951)
CASH FLOW FROM INVESTING ACTIVITIES

Capital expenditures 3.1 & 4 (56,473,501) (187,885,542)
Short term investment 9 - 1,936,548
Due from associated companies 10 (100,247,970) 14,193,312
Interest earned 31 5,045,365 15,175,158
I
Net cash inflow (outflow) from investing activities (B) (151,676,1 06) (156,580,524)
CASH FLOW FROM FINANCING ACTIVITIES

Due to associated companies 23 (29,487,423) 12,629,739
Short term loan 903,286,979 470,707,235

Long term loan & lease finance 15 & 1$ 29,999,550 247,848,762

Dividends paid 25 (20,344,599) (28,718,156)

Interest paid on short term loan 30 (241,8 14,518) (254,362,874)
Redeemable debentures 19 - (13,320)
Net cash inflow / (outflow) from financing activities (C) 641,639,989 448,091,386

Net increase / (decrease) of cash & cash equivalents (A+B+C) 11,014,819 3,747,911

Cash and cash equivalents at the beginning of the period 14,871,227 11,123,316

Cash and cash equivalents at the end of the period 12 25,886,047 14,871,227

NET OPERATING CASH FLOW PER SHARE 33 (14.14) (8.49)
fliesc financial statements shoukl bu read in conjunction with the annexed notes
and were approved b y the Board of Directors on 28 October 2017
and \VCIC signed on its behalf by:
35
STATEMENT OF CHANGES IN EQUITY
Share General Retained

I Share Capital Total Equity
I Particulars Premium Reserve Earnings
Taka Taka Taka JL Taka Taka

Balance as on 01 July 2016 338,800,000 84,700,000 26,000,000 35,881,968 485,381,968
Cash dividend for 2016 (6 months) - - (6,776,000) (6,776.01)0)

Net loss for the year ended 30 June 2017 - - (100,665,287) (100,665,28)
(107,441,287) (107,44112 87)
Balance as at 30 June 2017 338,800,000 84,700,000 26,000,000 (71,559,319) 377,940,681
Balance as on 01 January 2015 338,800,000 84,709,00)) 26,000,000 75,296,660 324,796,660

Cash dividend for 2014 - - - (33,880,0(10) (33,880,00)))
Cash dividend for 2015 - - - (33,880,0))))) (33,880,000)
Net profit for the period from 01 Jan 2015 - -
- 28,345 311$ 28 345,308
to 30 Jun 2016
(39,414,692) (39,4 4,692)
Balance as at 30 June 2016 338,800,000 84,700,000 26,000,000 35,881,968 485,381,968
These financial statements should he read in conjunction with the annexed notes
and were approved hr the Board of Directors on 2$ October 2017
and 'cre signed 00 us behalf by:
COMPANY SECRETARY
*,L DIRECTOR CHIEF EXECUTIVE OFFICER
36
Notes to the Financial Statements
For the year ended 30 June 2017
I THE COMPANY & IT'S OPERATIONS
The Compan y Was incorporated on 19 August 1995 as a Public Compan y limited b y shares under the Companies
Act 1994 and has been allowed to COflimenCe business from the foregoing date under Section 150(2) of the said
Act. The principal activities of the Company as stipulated to he, are manufacturing of 'Portland' cement and allied
products and marketing thereof. Shares and debentures of the Company were listed with Chittagong Stock
Exchange (CSFi) on 9 September 1998 and with Dhaka Stock Exchange (DSE) on 16 September 1998. The
commercial production of the factory commenced on 10 November 1999.
2 SUMMARY OF SIGNIFICANT ACCOUNTING AND VALUATION POLICIES
2.1 Basis of preparation and presentation of the financial statements
The financial statements have been prepared and the disclosures of information made in accordance with the
rec1uiremcnts of the Companies Act 1994, the Securities & Exchange Rules 1987 and International
Accounting Standard (lAS) and International Financial Reporting Standards (IFRS) adopted by the Institute
Of Chartered Accountants of Bangladesh (1CAB), as Bangladesh Accounting Standard (BAS) & Bangladesh
Financial Reporting Standard(BFRS). The statement of financial position and statement of comprehensive
income have been prepared according to HAS 1: "Presentation of Financial Statement" based on accrual basis
Of accounting following going concern assumption and statement of cash flows according to BAS 7
"Statement of Cash Flows".
2.2 Accounting convention and assumption

The financial statements arc prepared under the historical cost convention method.
2.3 Principal accounting policies

The specific accounting policies have been selected and applied b y the Company's management for significant
transactions and events that have a material effect within the Framework for the Preparation and Presentation
of Financial Statements. Financial Statements have been prepared and presented in compliance with BAS-1:
"Preparation of Financial Statements". The previous year's figures were presented according to the same
accounting principles.
2.4 Application of Standards
The following BAS are applied to the financial statements for the year under review:
HAS 1 Presentation of Financial Statements
BAS 2 Inventories
BAS 7 Statement of Cash Flows
HAS 8 Accounting policies, changes in accounting estimates and errors
BAS 11 Events after the Reporting Period
HAS 12 Income Taxes
BAS 16 Property, Plant & Equipment
BAS 17 Leases
BAS 18 Revenue
BAS 24 Related Party Disclosures
HAS 28 Investments in Associates and joint Ventures
HAS 33 Farnings Per Share
HAS 37 Provisions, Contingent Liabilities and Contingent Assets
37

2.5 Consistency
Unless otherwise stated, the accounting policies and methods of computation used in preparation of
financial statements for the year ended 30 June 2017 are consistent with those policies and methods
adopted in preparing the financial statements for the year ended 30 June 2016.

2.6 Property, Plant & Equipment
Property, Plant & Equipment are accounted for according to BAS 16 "Property, Plant and Equipment" at
historical cost less cumulative depreciation except freehold land and the capital work-in-progress (when
arises) is stated at cost. All assets are depreciated /amortized according to the straight-line method over
their expected useful life. The gain or loss arising on the disposal or retirement of an asset is determined as
the difference between the sales proceeds and the carrying amount of the asset and it is recognized as non-
operating income/ (loss).

2.7 Depreciation of the Non-current assets
Depreciation is provided on straight-line method at the annual rate(s) shown below whereby the cost less
estimated salvage value of an asset is written off over its anticipated service life except that long-term
leasehold land which is amortized annually in such a manner so that by the terminal period the lease value
is fully amortized.
Depreciation Rate
Item of Property. Plant and Equipment
Building & other constructions on leasehold land 5%
Plant & machinery 10%
Electrical installation 15%
Equipment, fittings & computer 15%-20%
Transportation equipment 200/u
Furniture & fixtures 10%
Depreciation is charged on addition from date of acquisition/ addition and no depreciation is charged in
the period of disposal.
2.8 Capital Work-in-Progress

Capital work in progress is stated at cost.
2.9 Investment
This is being investment in unquoted equity shares valued at cost. Market value or intrinsic value of shares
was not considered consistentl y because of non-existence of active market therefor.
2.10 Valuation of Inventories

Inventories are valued as below in compliance with the requirements of BAS 2: "Inventories".

Category Basis of valuation

Raw & Packing Materials Weighted Average Cost

Work in process Average Cost of Material ,, and \ppn priaft
Manufacturing Expenscs

Finished Goods At Cost or net realizahic vduc whichevcr is
lower

Goods-in-transit At Cost
Stores and spares Weighted ;\veraic (,()Sr

38
2.11 Cash and cash equivalents
Cash in hand and cash at banks, which are available for use by the company without any restriction, have been
considered as the cash and cash equivalents for preparation of these financial statements and there was
insignificant risk of changes in value of these current assets.
2.12 Creditors and Accruals

2.12.1 Trade and Other Payable
Liabilities arc recorded at the amount payable for settlement in respect of goods and services received by
the Company, whether or not billed b y the suppliers.
2.12.2 Provision
The preparation of financial statements is in conformity with Bangladesh Accounting Standards (BAS) 37
"Provisions, contingent liabilities and contingent assets" which requires management to make estimates
and assumptions that affect the reported amounts of revenues and expenses, assets and liabilities during
and at the date of financial statements.
i
In accordance with the guidelines as prescribed by BAS 37 provisions were recogn zed in the following
situation
• When the company has a present obligation as a result of past events;
• When it is probable that an out flow of resources embodying economic benefits will be required
to settle the obligation; and
• Reliable estimates can be made of the amount of the obligation.
The provisions are shown in the statement of financial position at an appropriate level with regard to an
adequate provision for risks and uncertainties. An amount recorded as a provision represented the best
estimate of the probable expenditure required to fulfill the current obligation on the statement of financial
position date.
Other provisions are valued at in accordance with BAS 37 Provisions, Contingent Liabilities and
Contingent Assets. Other provisions comprise all realizable risks from uncertain liabilities and anticipated
losses from pending transactions.
2.13 Employees Benefits

2.13.1 Employees' retiral gratuity - note 16
The Company operates an unfunded gratuity scheme and the provision in respect of which is made at the
rate of one month's basic pa y last drawn to cover the potential obligation in respect of all its eligible
employees.
2.13.2 Staff Provident fund
The company maintains a recognized provident fund with contribution @ 10% of basic pay (equally
contributed by the emplo y ee and emplo yer) for all eligible permanent employees. The said fund is managed
by a board of trustees.
2.13.3 Workers' Profit Participation and Welfare fund
During the year of our audit the company has no profit, hence no provision recognizes for workers' profit
participation and welfare fund 5% of net profit before tax as per Bangladesh Labour code, 2006.
2.14 Taxation
2.14.1 The Company was allowed Tax holiday for a period of five years from the date of commencement
of commercial production i.e. 10 November 1999 vide National Board of Revenue's circular ref.
11(11 7)Anu:- 1/2000 dated 18.09.2000. The period of tax holiday of the Company expired in October 2004,
2.14.2 Provision for Current Taxation has been made as per 82C (Part- 1)of Income Tax Ordinance 1984.
2.14.3 Provision for Deferred Taxation has been made at the ruling income tax rate applied on the
in U flt of cn l rary di Ffcrcn cc.
39

2.15 Contingent liabilities and assets

Contingent liabilities are current or possible obligations, arising from past events and whose existence is
due to the occurrence or non-occurrence of one or niorc uncertain future events, which are not within the
control of the company. In accordance with BAS 37 Provisions, Contingent I .iabulitics and Contingent
Assets are disclosed in note - 40 of the financial statements.
2.16 Foreign Currency Translation

2.16.1 The items in foreign currencies are translated & recorded in Taka eurrenevai the rare of exchange
ruling on the relevant transaction date.
2.16.2 Monetary assets or liabilities in terms of foreign currenc y are translated into local eurrenc at the
rate ruling on the date of statement of financial position.
2.17 Revenue
In compliance with the requirements of BAS IS revenue is recognized onl y when:
• The products are invoiced and dispatched to the customers;
• Interest income is accrued on a time basis b y reference to the principal outstanding at the effective
interest rate applicable.
2.18 Statement of Cash Flows

Statement of Cash Flows is prepared pnnctp:illy in accoi-dancc with 13i\S 7" Statement of Cash Flows'' and
the cash flows from operating activities have been presented under direct method as reiiuirecl liv ihe
Bangladesh Securities & Fxcliange Commission (BSN(:) Rule -1987.
2.19 Earning per share

The Company calculates Earning Per Share (IPS) in accordance with BAS 33--1- .arning Per Share'' which
has been shown on the face of Profit and Loss Account and the computation of I PS is stated in note- 31
of the financial statements.
2.19.1 Basic earnings
The Company calculates earnings for the year attributable to the ordinar y shareholders. As there is in
preference dividend, minority interest or extra ordinar y items, the net profit after tax for the Year has been
considered as full y attributable to ordinary shareholders.
2.19.2 Basic earning per share
This has been calculated dividing the basic earnings b y the total number of ordinar y shares outstanding al
the year-end.
2.19.3 Diluted earnings per share
Diluted earnings per share is required to he calculated for the period when scope for dilution exists. No
diluted earnings per share was required to be calculated during the period as there was no convertible shares
for which Basic Farnings Per Share woLild be diluted.
2,20 Certain Accounting Practices

The following expenditures are charged out to revenue as and when incurred
2.20.1 Cost of office supplies, publicit y inatcrials and services on
2.20,2 Charges on account of repairs and tnaintenancc.
2.20.3 Applicable accrual in respect of creditors for supplies or services is considered onl y at the time of
year-end while closing the Compan y's books of account.
2.21 Comparative Information
Comparative Information has been disclosed in respect of the period front 01 Januar y 2015 to 30 June
2016, as per BSFC directive no. SIfC/SRMIC/20 I 1/1240/445 dated 27 April 2015 in connection with
uninfbrni year end of all listed companies pursuant to the provisions of section 2 clause (35) of IT() 198-1
Finance Act- 2015.
Presentation of longer period of comparative information is permitted liv Para 36 'Frequency of
Reporting' of BAS I 'Presentation of Financial Statements'.
Asaresult of the facts stated above, amounts of presented in the financial statement are not entirely
coniparable.
2.22 Reporting Period
'these financial statements cover one financial year from 0! J ulv 2016 to 3)) June 2017 0 n all reported
period s.
EE

30 Jun 2017 30 Jun 2016

Taka Taka
3 PROPERTY, PLANT AND EQUIPMENT
A. Cost
5Opening
04,132,737
Balance 410,810,550
Addition during the year 805,247,619 105,676,720
1,309,380,356 516,487,270
Deletion during the year - (12,354,533)
Closing Balance 1,309,380,356 504,132,737
B. Accumulated Depreciation
3Opening
51,973,330
Balance 328,276,610
Depreciation charged during the year - note 3.2 72,681,927 36,051,253
424,655,257 364,327,863
Adjustment during the year - (12,354,533)
Closing Balance 424,655,257 351,973,330
Written Down Value (WDV) (A-B) 884,725,099 152,159,407
Detail of Property , Plant & Equipment and Depreciation as on 30 June 2017 are shown in the notes 3.1 & 3.2.
41

3.1 Property, Plant and Equipment - at Cost Less Accumulated Depreciation - note 3
I Cost Accumulated Depreciation

Balance Addition Deletion Balance Dep Balance Charged Disposed Balance Written Down
Particulars as on During During as on Rate as on During During as on Value as on
01 Jul 2016 the year the year 30 Jun 2017 01 Jul 2016 the year the year 30 Jun 2017 30 Jun 2017
Taka [ Taka j [ Taka j Taka % Taka ] Taka ] Taka Taka Taka
j[ L J IF ]
Ircehuld Land (303 Decimals) 3,361,9_0 4,112063 - 9,474,039 - 9,474,039
l.ong Term I .easchold Land (357.91 De(7imals) 8,1113810 - 8,111,00)I 5) 1392,798 $1,929 - 1,474,727 6,636,273
1'acturv & Laborator y Building 04,482,667 03,891)339 210,373,206 5" 81)7711,91)6 7,862,916 - 88,633,822 121,739,384
Plant& Slacbincrv 1613099,86 617,645,374 - 778,745,441 1(l" 148,130,1)36 33,042,403 - 181,172,439 397,573,1)1)2
l:ccrrica] installation I5,22,$26 67,288,593 $3,011,419 I5"/ 14,605,772 5,2533034 19,858,806 63,152,613
T : ilamcnt, linings & Computers l)1,2$3,))31 2,558,333- 12,841,414 15 . 2)11 6,947,236 928,291 - 7,875,547 4,965,867
3ransportanon I •(1uipments 196,4133)1)6 7,4"4,943 - 203,889,949 201 98,575,466 25,366,762 - 123,942,228 79,947,721
}SUl.11itL]l.C5 & I ixrurcs2,636,361 277,524 - 2,933,888 1)1/,, 1,55! ,096 146,592 - 1,697,688 1 1,236,200
- As on 30 June 2017 504,132,737 805,247,619 - 1,309,380,356 351,973,330 72,681,927 - 424,655,257 884,725,099
As on 30 June 2016 410,810,550 105,676,720 12,354,533 504,132,737 328,276,610 36,051,253 12,354,533 351,973,330 152,159,407
01 Jul 2016 01 Jan 2015

to to
30 Jun 2017 30 Jun 2016
12 Months 18 Months

3.2 Allocation of depreciation charge - note 3.1 Taka IL Taka
( )pcnlng Balance 351 973,33)) 323,26,6 0'

(;hu'gcd (luring the sear nnte 3.1 1,92- 53,051,255
424.6 55,25 364,32'863
Disposed during rOe scar- n ' ,te 3.! - ()2,354,533)
424,655,257 351,973,330
3.3 Allocation of depreciation Charge- note 3.1

I 1tcn ,cv ()% urhea I - note 26.3 - I 390,) (6$ 34,940,31 5

Genera) and idminircativc- note 2 1,291,853 1,11)1,438
72,681,926 36,051,253

30 Jun 2017 30 Jun 2016

Taka Taka
CAPITAL WORK-IN-PROGRESS
788,948,991 706,740,169
Opcning Balance

Expenditure incurred during the year - note 4.1 48,186,043 88,318,254
837,135,034 795,058,423

Capitalized during the year - note 4.1 (796,960,161) (6,109,432)

Closing Balance 40,174,873 788,948,991
4.1 The break up of Capital Work in Progress - note 4

Expenditure
At . Capitalized
incurred t
Particulars 01 July during the e
during the 30 June 2017
2016
period period
i) Facti rv & I .ahoratorv Building 4,395,406 11 1,854,346 - 6,249,752

1,072,562
vlopment
ii) Sofnvare Dee 19)),) 00 - 1,262,562
iii)I'lransportation Ec 1uipmcnt 4,00,237 35,437,264 H 7,474.943 32,662,558

iv)j F nit 2 Expansion 778,780,786] 10,704,433 789,485,218 1
30 June 2017 788,948,991 48,186,043 796,960,161 40,174,873
30 June 2016 706,740,169 88,318,254 6,109,432 788,948,991
Ihe capital \vorL in progress includes all cost pertinent to the development/construction of Unit-2 and eventually
NN-1-11, d) will he transferred to property, plant & Cc1uipmCntS on the completion of said plant in a manner as intended
he the managemcnt.
43

30 Jun 2017 30 Jun 2016

Taka Taka
5 INVESTMENT
Investment in its Associated Company
Aramit Thai Aluminium Limited - note 5.1 5,000,000 5,000,000
Araniit Power Limited - note 5.2 1,782,500 1,782,500
Aramit Alu Composite Panels Limited - note 5.3 32,750,000 32,750,000
39,532,500 39,532,500
5.1 Aramit Thai Aluminium Limited (ATAL) - note 5

5,000,000
50,000 Shares Cw Tk 100 each at par full y paid-up in cash 5,000,1)01)
50,000 Shares of Tk 100 each at par 5,000,000 5,000,000
i) The Company holds 5% Shares of Ararnit Thai Aluminium Limited
As per Financial position as on 30 June 2016,
• Aramit Thai Aluminium Limited incurred a cumulative loss of Tk 43,451,529 as on 30 june 2016
whereas loss is Tk 64,813,100 for the year ended 30 june 2016.
• Earnings per share (EPS) TIc 21.36
5.2 Aramit Power Limited (APL) - note 5
17,825 Shares Tk 100 each at par fully paid-Up in cash 1,782,500 1,782,500
17,825 Shares of Tk 100 each at par 1,782,500 1,782,500
i) The Company holds 25°/6 Shares of Aramit Power Limited.
As per Financial position as on 30 June 2016,
• Ararnit Power Limited incurred a cumulative loss of Tk 6,251,900 as on 30 June 2016 whereas
profit is Tk 391,078 for the period ended 30 lone 2016.
• Net asset value per share (N AV) TIc 12.32 2015: 6.831
• Earnings per share (E PS) TIc 5.48 [2015: (19.30)]
5.3 Aramit Mu Composite Panels Limited (AACPL) - note 5
327,500 Share Money Deposit in cash 32,750,0)))) 32,750,00))
327,500 32,750,000 32,750,000
i) The Company holds 4920/i Shares of Aramit Alu Composite Panels Limited.
As per Financial position as on 30 june 2016,
• Aramit Alu Composite Panels Limited incurred a cumulative loss of TIc 37,421,697 as on 30 June
2016 whereas loss is TIc 3,374,231 for the period ended 30 June 2016.
• Net asset value per share AV) Tk 43.78 2015: 48.851
• Earnings per share (EPS) TIc (5.07) [2014: (11.31)]
(a) Aramit Thai Aluminium Limited has been incorporated on 14 September 2000 and has commenced its
commercial production on 25 June 2002.The Authorized share capital of the Company is 5,000,000 ordinary
shares @ Tk 100 each and the Issued, Subscribed and Paid up capital is 1,000,00() shares TIc 100 each.
Out of this Aramit Cement Limited Subscribed 30,000 Shares Tk 100 each i.e. share holding poSitioil IS
5°/i. ATAL has issued 2 Rights Shares of face value of TIc 100 each for each 3 shares held by the existing
shareholders on August 29, 2012 as a result ACL now subscribed 50,000 shares ( TIc 100 each.
(b) Aramit Power Limited has been incorporated on 28 June 2004 and has commenced its commercial
production on 25 June 2005.Thc Authorized share capital of the Company is 1,000,000 ordinary shares i
Tk 100 each and the Issued, Subscribed and Paid up capital is 71,300 shares TIc 100 each. Out of this
Aramit Cement Limited Subscribed 17,825 Shares @ Tk 100 each i.e. share holding position is 25L>.
(c) Arai-nit Mu Composite Panels Limited has been incorporated on 31 Aug 2009 and has commenced its
commercial production on 01 Januar y 201 2.The Authorized share capital of the Company is 25,00,000
ordinary shares Ca, Tk 100 each and the Issued, Subscribed and Paid up capital is 665,650 shares Tk 100
each. Out of this Aramit Cement Limited Subscribed 327,500 Shares TIc 100 each.
EV

30 Jun 2017 30 Jun 2016

Taka Taka
6 INVENTORIES
Raw materials- note 6.1 16,366,124 5,806,73
Packing materials 3,639,862 4,086,844
8,656,635
Work-in-process note- 26 2,546,421
Materials in transit - note 6.2 21,129,504 49,708,814
Stores and spares 43,584,715 45,749,912
93,376,840 107,898,728
6.1 Raw Materials note-6
Clinker 4,438,317 214,878
G vpsum 6,463,725 1,401,540
Lime Stone 3,703,143 2,113,575
Slag 1.760,939 2,076,744
16,366,124 5,806,737
62 Materials in transit - note 6

Raw 1" 1 aterials 16,107,323 48,832,536
Spare Parts 5,022,181 876,278
21,129,504 49,708,814
7 TRADE RECEIVABLES
Dealers 293,091,923 211.080,441
Non dealers 1,149,643,983 654,939,351)
1,442,735,906 866,019,791
8 ADVANCES, DEPOSITS AND PREPAYMENTS
476,220,147
:\dvanccs - note 8.1 386,353,858
Deposits - note 8.2 1,246,500 1,246,500
Prepavmcnrs - note 8.3 9,086,729 5,058,574
486,553,376 392,658,932
8.1 Advances - note 8
Advance Income 'lax 218,455,704 156,865,46
Value Added Tax 125,045,015 114,161,649
Advance to supplies 16,260,730 18,286,534
North South Transport Ltd. * 84,427,030 70,226,431
Advance to Employees 4,046,139 4,072,786
Runner Motors Limited - 3,162,468
Rangs Motors Limited - 600,001)
Others I 27,985,529 I 18,978,244 I
476,220,147 386,353,858
* Advance includes a net sum of Tk.844.427,030 being on account payment to North South Transport Limited in
order to help meet there Lease finance obligation to Lessor on account of seventeen trucks. These trucks are
absolutely used for transportation of clinker from port as ve11 as transfer of finished products to dealers and non
dealers of the company.
8.2 Deposits - note 8
Bangladesh Power Development Board 1,200,000 1,200,000
Bangladesh Telccommunicauon Company limited (BTCL) 38,500 38,500
Bangladesh Oxygen Company Limited (Linda BD) 8,000 8,000
1,246,500 11246,500
8.3 Prepayments - note 8
2,341,008 3,384,508
Prepaid Insurance
2,858,741 794,250
Advertisement

\'I'AS,\ 58,332 116,667

Bangladesh Standard and Testing Institute ([ISTI) 5,441,110 526,690
Chittagong Cite Corporation - 92,610
- 69,658
c;eninne Technology and Research Limited (GTR)
387,538 74,191
Others
9,086,729 5,058,574
45

30 Jun 2017 30 Jun 2016

Taka Taka
9 DUE FROM ASSOCIATED COMPANIES
Ararnit Footwear Limited(AFL) - note 9.1 238,576,538 128,881,177
Ararnit Power Limited (APL) - note 9.2 51,212,890 65,172,274
Aramit Thai Aluminium Limited ATAL) - note 9.3 19,491,216 16,268,582
Aramit Steel Pipes Limited(ASPL) - note 9.4 10206392 9482 539
Aramit Mu Composite Panels Limited - note 9.5 12,217,45911 11,651,953
331,704,495 231,456,525
9.1 Aramit Footwear Limited (AFL) - note 9
Opcning balance 128,881,177 1391479,346
Fund extended during the year 440,603,2jJ 290,258,388
569,484,385 429,737,734
Interest earned during the year - note 30 - -
569,484,385 429,737,734
Re-paid / adjusted during the year (330,907,847) (300,856,557)
Closing balance 238,576,538 128,881,177
Short term loan extended by Aramit Cement Limited to Aramit Footwear Limited based on Company's
Board's decision, wherein it was decided to treat the financing provided to API. as short term loan carrying
interest 15.50'h per annum on monthly opening product with effect from 01 Januar y 21)1)6 to 30 September
2010 and interest ) 13 h per annum from 01 October 2010 as per Board's decision dated 30 September 2010
and no interest is charged from 01 january 2011 as per Company's Board's decision dated 13 ( ) crober 2011.
9.2 Aran-it Power Limited (APL) - note 9

75,339,658
Opening balance 65,172,274

Fund extended during the ear 18,990,617 28,105, 61
84,162,891 103,445,319

Interest earned during the year - note 30 2,960,861 5,523,520
$7,123,752 108,968,839

Re-paid / adjusted during the year (35,910,862) (43,796,565)

Closing balance 51,212,890 65,172,274
Represents short term loan extended by Ararnit Cement Limited to Aramit Power Limited earning interest a 15.50"',
annum on monthl y opening product with effect from 1 Januar y 2006 to 30 September 2010, interest (di 13 from 01
October 2011), and which was revised further to 51/ effective from I anuarv 2015.
9.3 Aran-it Thai Aluminium Limited (ATAL) - note 9

Opening balance 16,268,582 11,4811,535

Fund extended during the year 23,50,$)1l 42,655,134
40,019,383 54,135,669

Interest earned during the year - note 9 799,721) 937,158
40,819,1)13 55,072,827

Re-paid / adjusted during the year (21.327,887) (38,804,245)

Closing balance 19,491,216 16,268,582
Represents short term liian extended by Aramit Cement Limited to Aramit Thai Aluminium Limited based on respective
l0'h annum on monthl y opening pi- with effect from 1 January 2(1(11
Compan\s Board's decision carr ying interest (01per
M 30 September 2010, interest 13h from 01 October 2010, and \vhich was revised further to 5 effective from 1 January
2015.

30 Jun 2017
30 Jun 2016
Taka Taka
9.4 Aramit Steel Pipes Limited (ASPL) - note 9
9,482,539 8,569,460
Opening balance
1,751,416
Fund extended during the Near 300,821
9,783,360 10,320,876

Interest earned during the year - note 30 492,588 665,050
10,275,948 10,985,926
(1,503,387)
Re-paid / adjusted during the year (69,556)

Closing balance 10,206,392 9,482,539
Represents short term loan extended by Aramit Cement Limited to Aramit Steel Pipes Limited carrying interest I 5.SOo
per annum on monthl y opening product with effect from 1 Januar y 2006 to 30 September 2010, interest 13% from 01
October 2010, and which was revised further to 5'/o effective from 1 January 2015.
9.5 Aramit Mu Composite Panels Limited (AACPL) - note 9
Opening balance 11,651,953 10,780,837

Fund extended during the year 8,033 48,021
11,659,986 10,828,858
Interest earned during the year - note. 30 595,497 838,279
12,255,483 11,667,137
Re paid / adjusted during the year (35,024) (15,184)
Closing balance 12,217,459 11,651.953
Represents short term loan extended b y Aramit Cement Limited to Aramit Mu Composite Panels Limited carrying
interest dl 13.00", ,(, per annum on monthly opening product with effect from 2011, and which was reviser] further to 5%
effective from 1 January 2015.
10 OTHER RECEIVABLES
3 ,500,000
Insurance claim receivable 3,500,000
Receivable against sale of non current assets 6,050 6,050
(.)tliers 92,905 103,598
3,598,955 3,609,648
11 CASH AND CASH EQUIVALENTS
Cash in hand 295,794 372,978

(:ash at bank - note 11.1 25,590,253 14,498,249
25,886,047 14,871,227
47

30 Jun 2017
Taka
7 30 Jun 2016
Taka
11.1 Cash at Bank: Balances with Schedule Banks - note 11
Bank Branch Name
Typcs I A/c No

AB Bank Limited Bahacidarhat Cl) 413076(1)862000 l8,6l5 191,698

AB Bank Limited Bahad rI arhat BG 413) (76)1862000 2,178,234 2,275,244

AB Bank Limited Bahaddarhat B(; 4130760$62B fl) 5,T4,965

Ai-Arafah Islami Bank Ltd. 3iuradpur C I) 4244 1,243,438

Bank Asia Ltd. Agrabaci CD 00533006486 8,481,397 313

Basic Bank Limited I ubilee Road CD 13 10-0 1 -002630 98,264
)
Commercial Bank of Ceylon Agrabaci CD l00$

Commercial Bank of Ceylon Agrabad STD 1)069 1,320 1,321)

Eastern Bank Ltd. Chanclgaon CD 7128(113950 19.161 IT) 1,332

Exim Bank Ltd. i\grabad Cl) 003 1111103 8404 I 59,138 11,626

First Security Islami Bank Ltd. ;\giabad CI) 0104 111000121)19 -7,800,298 (222,3(11))

IFIC Bank Ltd. Agrahad Cl) 20015576_70(11 96,825 118248

Islami Bank (BD) Limited Babad d arhat Cl) 801000 6 T 5,l 11 43.55))
Jamuna Bank Ltd. Agrahad CI)

00050210)(4659 94(375 5,037,163

Janata Bank Ltd. SK. Mujih Road CI) 003333010859 532,387 289,474

Mutual Trust Bank Limited Kalurghat Industrial State ("I) l$0T 119,292 149,62-

Meghna Bank Limited Agrab ad CL) 2! Iii Ill 001(00231 1,111,201

NCC Bank Limited l"2lmtungonj STD (((1(04(3250)( I 3)35 61,657 247,365

N CC Bank Limited I'lllatLingon) CI) 01(402130000494 613,863 l4,404

NRB Global Bank Agrabad CD ()111 I 0)122208 248,470

Premier Bank Limited Is..hatung oil CD i 1)1 1111100001404 -.95,995 6l3,3'9

Puhali Bank Limited Bahaddarhat (;D 687901037980 556,029 2,316,844

Rupali Bank Ltd. Rupali Sadan CI) 20(1116215 812,825 .)17

3,024,793
Social Islami Bank Limited Jubilee Road CI) 0231330010398 1(16,674

Sonali Bank Limited Kaluighat Industrial State S'll) 0040)1247 3.167,487 134,95"

Standard Bank Ltd. Khatungon) Cl) 00333005161 106,925 337,819

State Bank of India Agrabaci CD (5260003420001 4,014,275 184

State Bank of India Agrabad ERQ 05260003420202 192 192
South Bangla Agriculture Bank
Agrahad 0004111002036 9,216,233
Limited

United Commercial Bank Ltd. Bahaddarhat CD 007 9 Ill (Fl l 148 (33,227,482) 689,66'

United Commercial Bank Ltd. Bahaddarhat ERQ ((0278 3,360 826,686
United Commercial Bank Ltd. Bahaddarhat FAQ 0'911()l((0) )0( 3)038 5,49,930

United Corn mercial Bank Ltd. Iejgaon CD 0438 64,832 3,298

United Commercial Bank Ltd. Bahaddarhat STI) 451,295 442,460

United Commercial Bank Ltd. Agrabad CD (((04111(1)1(50787 7,376 400,986
25,590,253 14,498,249
12 SHARE CAPITAL
12.1 Authorized
30,1)00,0(1(1 ordinary Shares of Tk 10 each 500,000,000 500,000,000
12.2 Issued, subscribed and paid-up

Paid-up in cash
304,4003000
30,440,000 Ordinary Shares of Tk 10 each 3(,)4,400,0()(-)
For consideration <:nher than cash
51)0,1)00 Ordinary Shares of T 10 each 3,000,000 3,000,013)
309,400,000
30,940,000 Ordinary Shares of Tk 10 each 309,400,0)11)
Issued as Bonus Share
2,940,000 Ordinary Share of Tk 10 Each 29,400,00)) 29,400,000
33.880.000 Ordinary Share of Tk 10 Each 338,800,000 338,800,000

12.3 Position of share holding

30 Jun 2017 30 Jun 2016
Name of Shareholders
Sponsors
1Aramit
9.29% Limited 65,340,000 19.29% 65,340,000
Directors & others 14.97% 50,723,200 14.97% 50,723,200
Bangladesh Development Bank Limited 5.71% 19,360,000 5.71°/o 19,360,000
Investment Corporation of Bangladesh 6.45% 21,860,330 7.84% 26,575,450
46.42% 157,283,530 47.82% 161,998,650
General Public
Institutions 17.13% 58,022,510 20.52% 69,528,510
Others 36.45% 123,493,960 31.66% 107,272,840
53.58()/o 181,516,470 52.18% 176,801,350
100.00% 338,800,000 100.00% 338,800,000
12.4 The distribution schedule showing the number of shareholders and their shareholding percentage as on 30 June 2017 is
asfollows: ____________________________________________________________
30 Jun 2017 30 Jun 201J
Range of Holdings I No. of I No. of II % of I % of
[Shareholders Shares Holdings Holdings

1,360 207,721 0.66%

2,568 4,230,706 i1.88°/o

318 2,375,384 5.66%

131 1,946,236 4.21%

36 885,867 2.75/o

26 893,388 1.54%

9 424,790 1.76%

20 1,309,525 4.06%

12 3,448,377 12.30%

5 18,158,006 55.20%
4,485 33,880,000 100.00% 100.00%
[30 Jun 2017 30 Jun 2016

Taka Taka
12.5 SHARE PREMIUM 84,700,000 84,700,000

30 Jun 2017 30 Jun 2016

Taka Taka
13 GENERAL RESERVE
Opening Balance 26,000,000 26,000,000
Transferred during the year - -
Closing Balance 26,000,000 26,000,000
As per 21st Board Meeting dated 20 May, 2001 an aggregate amount of J'aka 30,000,000 was transferred from accumulated profit to
general reserve from which an amount of Taka 4,000,000 had been utilized for the purpose of paying dividend in unavoidable adverse
situation (year 2002) to general shareholder other than sponsor shareholder in pursuant to 31st Board Meeting held on 29 April, 2003.
14 TERM LOAN & LEASE FINANCE
Due within one year - note 17 124,175,149 101,769,739
Due after more than one year - note 14.1 497,662,762 490,068,622
621,837,911 591,838,361
14.1 Due after more than one year - note 14
Fareast Finance & Investment Limited - note 14.1.1 24,148,331 39,126,7 39
International Leasing and Financial Services Limited lLPSL) - note 14.1.2 9,749,602 11,618,904
First Security Islami Bank Limited (FSIBL) - note 14.1.3 463,764,829 439,322,979
497,662,762 490,068,622
14.1.1 Fareast Finance & Investment Limited
17,705,569
Due within one year - note 17 18,401,602
Due after one year - note 14.1 24,148,331 39126,739
41,853,900 57,528,341
The Company has a countervailing lease agreement with Fareast Finance & Investment Limited which is an operating lease with
following particulars:
i) Repayment Term: 36 months
ii) Security:
a) Post dated cheques
b) Charge on Vehicles of Aramit Cement Limited
e Corporate Guarantee by Aramit Limited on behalf of Aramit Cement Limited.
d) Personal guarantee of sponsor directors of Aramit Cement Limited.
14.1.2 International Leasing and Financial Services Limited (ILFSL)

Due within one year - note 17 2,620,402 3,1)31 ,)) 19

Due after one year - note 14.1 9,749,602 11,6)8,904
12,370,004 14,649,923
The Company has a countervailing lease agreement with International Leasing and Financial services Limited which is all operating
lease with following particulars:
ii) Security:
a) Post dared MICR cheques
F) Charge on Vehicles of Aramit Cement limited
c) Personal guarantee of shareholding directors of Aramit Cement limited.
14.1.3 First Security Islami Bank Lin-kited (FSIBL)

Due within one year - note 17 103,849,178 80,337,118

Due after one year note 14.1 463,7 64,829 430,322,979
567,614,007 519,660,097
Short Term Loan. I .TR & Ilvpo with First Securit y lslarni Rank against ccjuitablc mnortgmigc of registered hvpotliecation of stocks (raw
materials imported through FSIBL), others stocks, personal guarantee of directors' and corporate guarantee of associated o mmparsies.
ii) Security:
a) Post dated cheques
h) Hspotheeauon on all plant and machineries and all factory material including smocks.
C) Corporate Guarantcc In- .\ranhir I mm itu-d miii behalf of Aramit Ccnicni Limited.
ci) Personal guaranruc- 0t sjrorisor directors f 'cramii ( cimerut I .ini iled.
50

30 Jun 2017 30 Jun 2016

Taka I Taka
15 DEFERRED TAX
Opening Balance (497,813) (849,089)
Provision made during the year 23,982,683 351,276
23,484,870 (497,813)
Realized during rhc year
Closing Balance 23,484,870 (497,813)
16 EMPLOYEES' RETIRAL GRATUITY

1 9,43 7 ,()19
Provided during the \'ear - note 26.3.1, 27.1 & 28.1 6,772,982 6,800,858
26,210,001 21,204,508
Paid during the year
(5,371,017) (1,767,489)
Closing Balance 20,838,984 19,437,019
17 CURRENT PORTION OF TERM LOAN & LEASE FINANCE

Fareast Finance & investment Limited - note 14.1.1 17,705,569 18,401,602
International l.easing and Financial Services l,imited - note 14.1.2 2,620,402 3,031,019
First Security Islami Bank Limited - note 14.1.3 103,849,178 80,337,118
124,175,149 101,769,739
18 REDEEMABLE DEBENTURES
17,836,805
(;tureilt portion of Redeemable Debenture - note 18.1 17,836,805
17,836,805 17,836,805
18.1 Current portion of Redeemable Debenture - note 18
Principal 2,658,857 2,658,857
Interest 438,652 438,652
3,097,509 3,097,509
Puh lie 14,739,296 14,739,296
17,836,805 17,836,805
19 CREDITORS AND ACCRUALS

I ,iahilities for ( ) ihcr Finance - note I). 1 24,303,407 22,604,846
[.iahilities for Suppliers 123,005,953 214,746,636
l,iabilities for Revenue expenditures 25,871,433 4,607,654
I .iahilincs for Capital expenditures - note 19.2 654,7 4 7 654,747
175,835,540 242,613,903
19.1 Liabilities for Other Finance - note 19

2,045,0011
Security deposit (refundable) from dealers 1,910,00()
Securirv deposit (refundable) from contractors - 1 95,()00
Tax & VAT deduction at source paythie 18,774,010 15,838,822
Provisii 01 I-Or d ulitlul cichts 1.659.312 1,659,312
Fr vkl cut lund (1)1:) 1,616,8 7 5 2,862,450
litsiritic. 208,211 139,262
24,303,407 22,604,846
19.2 Liabilities for Capital Expenditures - note 19

636,565
Plant & machinery 636,365
Frccti( 0 & Installats n 18,182 18,182
654,747 654,747
51

30 Jun 2017
Taka !^n
20 PROVISION FOR INCOME TAX
[
13,806,659 4,241,131
Opening Balance
10,595,659 9,565,528
Provision made during the year
24,402,318 13,806,659
Adjustment made during the year
24,402,318 13,806,659
Closing Balance
Year wise Income Tax assessment status is as follows
Income Year I Assessment Year j Present Status

2012-2013 2013-2014 Assessment Completed
2013-2014 2014-2015 F Assessment Completed
2014-2015 2015-2016 Assessment yet to be completed
2015-2016 2016-2017 Assessment yet to be completed
21 PROVISION FOR WPP & \VF
890,158 1,396,166
Opening Balance
Addition during the year - 2,013,796
49,143
Interest incurred during the year 31,334
921,492 3,459,105
(890,1 57) (2,568,947)
Paid during the year
31,335 890,158
Closing Balance
22 SHORT TERM LOAN

South Bangla Agricultural Bank Limited 112,961,515 -

Bank Asia Limited 111,294,707 33,148,071

Jamuna Bank Limited 71,017,501 123,166,082
35,926,780 44,893,541
State Bank of India

First Security Islami Bank Limited 1,642,154,222 912,903,712

Social Islami Bank Limited 44,043,660 -
2,017,398,385 1,114,111,406
22.1 LTR with Jamuna Bank Limited, Agrabad Branch, Chittagong against Personal Guarantee of Mr. Saifuzzaman
Chowdhurv and Ms. Rukhmila Zaman and Corporate Guarantee of Aramit Group and post dated cheques.
22.2 Term loan and LTR with State Bank of India, Chittagong against equitable mortgage of 0.065 acre of land
belonging to Mr. Saifuzzaman Chowdhurv, corporate guarantee of Aramit Limited, registered hypothecation of
stocks (raw materials imported through SRI), other stocks, receivables, spares, book debts, accessories and other
current assets, plant and machiner y and registered mortgage of project land of the company on first ranking pan-
passu basis with NCCBL.
22.3 Short Term Loan, LTR & Hypo with First Security Islam] Bank against equitable mortgage of registered
hypothecation of stocks (raw materials imported through FSIBL), others stocks, personal guarantee of directors'
and corporate guarantee of associated companies.
52

30 Jun 2017 30 Jun 2016

Taka Taka
23 DUE TO ASSOCIATED COMPANIES

Aramit Limited (AL) - note 23.1 28,233,018 57,720,441
28,233,018 57,720,441
23.1 Aramit Limited (AL) - note 23
45,090,702
119,883,217
Fund received during the year 34,239,795
91,960,236 164,973,919

Interest charged during the year - note 29 2,101,087 4,719,448
94,061,323 169,693,367
(111,972,926)
Re-paid / adjusted during the year (65,828,305)
57,720,441
Closing balance 28,233,018
Short-term loan extended by AL to ACL based on respective Company's Board's decision wherein it
was decided to treat the financing provided to ACT, as short-term loan carrying interest Cd lO% per
annum from January 1996 to August 2005 and thereafter @ 5% computed on the monthly opening
product and further interest @ 13% from 01 October 2010 and furthermore interest @ IO% from 01
January 2011, which as revised further to 5% effective from 1 January 2015.
24 UNCLAIMED DIVIDEND
Opening Balance 54,016,842 14,974,998
Dividend declared
for the year 2014 - 33,880,000
for the year 2015 - 33,880,000
for the period 2016 6,776,000 -
60,792,842 82,734,998
Paid during the year (20,344,599) (28,718,156)
Closing Balance 40,448,243 54,016,842
Year wise breakup
96,180
Interim 2000 96,180
Final 2000 70,740 70,740
Final 2001 538,590 538,590
Final 2002 795,425 795,425
Final 2007 2,693,474 2,693,474
Final 2009 461,446 461,446
Final 2012 3,781,477 3,781,477
Final 2013 6,446,729 6,450,257
Final 2014 10,014,076 10,121,043
Final 2015 11,840,519 29,008,210
Final 2016 (6 Months) 3,709,587 -
40,448,243 54,016,842
53

01 Jul 2016 01 Jan 2015

to to
30 Jun 2017 30 Jun 2016
12 Months 18 Months
I Taka Taka I
25 REVENUE
1,350,889,209
Local sales Net - note 25.1 1,367,970,057
Export sales 207,375,200 205,953,646
1,558,264,409 1,573,923,703
25.1 Local Sales (Net) - note 25
Local (Gross) 1,553,522,590 1,573,165,596
Value Added Tax (VAI) (202,633,381) (205,195,539)
1,350,889,209 1,367,970,057
25.2 Makeup of sales

Dealers 293,091,923 458,072,333
Non dealers:
Non dealers 891,578,030 688,003,284
Institutions and others 166,219,256 221,894,440
Exports 207,375,200 205,953,646
1,265,172,486 1,115,851,370
1,558,264,409 11573,923,703
26 COST OF GOODS SOLD

Raw materials consumed - note 26.1 868,962,445 859,606,651
Packing materials consumed - note 26.2 89,925,632 87,487,098
Factory overhead - note 26.3 289,327,270 220,593,725
Cost of Production 1,248,215,347 1,167,687,474
Opening work-in-process 2,546,421 15,463,378
Closing work-in-process - note 6 (8,656,635) (2,546,421)
Cost of goods manufactured 1,242,105,133 1,180,604,430
Opening finished goods
Cost of goods available for sale 1,242,105,133 1,180,604,430
Closing finished goods - note 6
1,242,105,133 1,180,604,430
26.1 Raw materials consumed - notes 26
5,806,737
Opening inventory 78,389,789
Purchase during the year 879,521,832 787,023,599
Raw materials available for use 885,328,569 865,413,388
Closing inventory - note 6 (16,366,124) (5,806,737)
Consumption of raw materials 868,962,445 859,606,651
Raw materials consumed - Clinker

Opening inventory
214,878 20,226,265
Closing inventory - note 6 (4,438,317) (214,878)
Raw materials consumed - Gypsum

Opening inventory
1,401,540 1,398,228
54

01 Jul 2016 01 Jan 2015

to to
30 Jun 2017 30 Jun 2016
I 12 Months I I 18 Months
Raw materials consumed - Limestone I Taka H Taka I
2,113,575
Raw materials consumed - slag

2,076,744
Closing inventors' - note 6 (1,760,939) (2,076,744)
26.2 Packing materials consumed - notes 26

Opening inventory 4,086,844 2,333,067


Packing materials available for use 93,565,494 91,573,942


Consumption of packing materials 89,925,632 87,487,098
26.3 Factory overhead - note 26

Personnel expenses - note 26.3.1 54,552,638 52,070,870
Depreciation - note 3.3 71,390,068 34,940,815
Electricity 61,299,504 52,853,450
Stores COflSUmptlOn 27,576,940 29,681,585
Vehicle running expenses 60,577,533 36,549,195
Repairs and maintenance 4,079,219 4,518,704
Entertainment 1,013,275 1,224,111
Factory insurance 3,064,563 3,236,382
Rates, taxes & renewal fees 2,313,929 2,056,367
Carrying & handling 1,146,538 1,227,732
Office supplies & stationery 953,698 377,563
Travelling and conveyance 429,308 478,440
Testing fee 468,755 183,145
Generator running expenses 241,670 603,597
Telecommunication expenses 206,632 215,240
Newspapers & periodicals 8,250 13,910
Uniform & Liveries 1,500 356,461
Postage & courier 3,250 6,158
289,327,270 220,593,725
55

01 Jul 2016 01 Jan 2015

to to
30 Jun 2017 30 Jun 2016
12 Months 18 Months
Taka Taka
26.3.1 Personnel expenses - note 26.3

35,100,217
Salary, wages and allowances 28,997,732

Overtime 6,890,042 9,379,276

Bonus 3,099,950 2,988,380

Casual labour 5,510,824 4,784,964

Gratuity - note 16 2,126,627 3,584,955

Provident fund 1,626,584 1,528,527
198,394
Welfare and benefits - 807,036
54,552,638 52,070,870
27 GENERAL AND ADMINISTRATIVE EXPENSES

Personnel expenses - note 27.1 26,007,674 27,698,608
Office rent, rates & renewal fees 4,821,224 5,899,221
iGM expenses 519,896 668,587
Legal & professional fees 1,205,532 1,368,908
Audit fees 100,000 105,000
Depreciation - note 3.3 1,291,858 1,110,438
Telephone & Fax 216,667 319,496
Uniform & Liveries 235,074 194,802
Entertainment 2,620,702 1,882,333
Subscription 76,500 706,00(1
Travelling and conveyance 918,059 2,031,345
Printing & stationeries 1,117,777 1,1 18,551
Office supplies 76,181 33,875
Internet Expenses 29,150 174,917
Donation 377,000 837,000
Repairs and maintenance 272,170 667,905
Advertisement 695,330 937,685
Utility expenses - Dhaka Share office 754,717 524,803
Director's fees 333,400 600,000
Insurance expenses 666,491 402,965
Postage & courier 18,605 52,504
Board meeting expenses 206,089 499,021
Newspapers & periodicals 13,594 17,652
Interest on WPP & WF - note 21 31,334 49,143
44,214,398 49,425,897
27.1 Personnel expenses - note 27

Salary and allowances 18,490,853 20,247,032
Overtime 1,731,218 2,211,302
Bonus 2,037,994 1,935,651
Casual Labour 18,554 281,002
Gratuity - note 16 2,349,098 1,854,167
Provident fund 1,095,985 825,902
Welfare and benefits 283,972 343,552
26,007,674 27,698,608
56

01 Jul 2016 01 Jan 2015

to to
30 Jun 2017 30 Jun 2016
12 Months ] 18 Months I
28 SELLING AND DISTRIBUTION EXPENSES Taka Taka
]
29,157,533
Personnel expenses - note 28.1 19,773,750
27,684,158
Expenses for Export Sales 28,357,255
Advertisement 34,643,622 8,033,732
Entertainment 2,218,372 2,560,109
Office supplies & stationery 1,261,838 999,582
Traveling and conveyance 1,798,944 1,343,545
Telephone expenses 823,522 421,134
Insurance expenses 632,597 189,739
Postage and courier 18,060 16,145
101,262,670 64,429,752
28.1 Personnel expenses - note 28

Salary and Allowances 21,169,449 14,696,506
Overtime 1,346,903 1,268,872
Bonus 2,827,696 1,555,132
Gratuity - note 16 2,297,257 1,361,736
Provident fund 1,379,538 641,531
Welfare & benefits 136,690 249,973
29,157,533 19,773,750
29 FINANCIAL EXPENSES

Bank interest 238,540,398 248,296,634

Interest on loan from Aramit Limited - note 23.1 2,101,087 4,719,448

Bank charges 1,173,033 1,346,792
241,814,518 254,362,874
30 OTHER OPERATING INCOME

interest from Short term loan to
Aramit Power Limited - note 9.2 2,960,861 5,523,520
Ararnit Thai Aluminium Limited - note 9.3 799,720 937,158
Aramit Steel Pipes Limited - note 9.4 492,588 665,050
Aramit Alu Composite Panels Limited - note 9.5 595,497 838,279
4,848,666 7,964,007
Interest income on BG & STD 196,699 711,151
Gain on sale of non current assets - 6,500,000
5,045,365 15,175,158
31 EARNINGS PER SHARE (EPS)

The computation of EPS is given below:
(100,665,287)
Earnings attributable to the ordinary shareholders 28,345,308
Weighted avarage No of ordinary shares outstanding during
the year 33,880,000 33,880,000
Basic Earnings Per Share (2.97) 0.84
The Unit-2 of the company commenced commercial production on 01 Januar y 2017 charging of depreciation as well
as additional marketing expenses contributed to the negative result in earning per share.
57

30 Jun 2017 30 Jun 2016

Taka Taka
32 NET ASSETS VALUE PER SHARE
The computation of NAY Per Share is given below:
2,597,155,749
Total Assets 3,348,288,090
2,111,773,781
Less: Total Liabilities 2,970,347,409

Net Asset Value (NAV) 377,940,681 485,381,968

Number of ordinary shares outstanding during the year 33,880,000 33,880,000

Net Assets Value (NAV) Per Share 11.16 14.33
33 NET OPERATING CASH FLOW PER SHARE

Net Operating Cash Flows (from statement of cash flows) 478,949,064) (287,762,951)

Number of ordinary shares outstanding during the year 33,880,000 33,880,000

Net Operating cash Flows per share (14.14) (8.49)
34 AUDITOR'S REMUNERATION
100,001) 105,000
Statutory Audit Fee - 1-loda Vasi Chowdhury & Co
100,000 105,000
35 ATTENDANCE STATUS OF BOARD MEETING OF DIRECTORS

During the period ended 30 June 2017, there were 6 (Six) Board meeting and 3 (Three) Audit Committee meeting total 9 (Nine)
meetings held. The attendance status of all the meetings is as follows:
Name of the Directo F Representative By Position [ Meeting held Attendance
[flMr. S. M.Jamal Ahmed I Sponsors Chairman 6 6
Ms._Rukhmila Zaman Sponsors Managing Director 6 6
- Mr. Sakib Aziz Chowdhurv
3
- (Retired on 30 January 2017)
F
Aramit Limited
L____________________
Director 4 4
Investment Corporation of
4 M Nasrin Sultana Director 6 6
Bangladesh _____________
Mr. _S. M. Rezaur Rahman j General j Independent Director 9 9
Mr._Md. Towhidul Anowar General Independent Director 6 6
36 REMUNERATION OF DIRECTORS, MANAGERS, EXECUTIVES & OFFICERS

30 Jun 2017 30 Jun 2016
Managing Other Managing Other
Particulars Total Total
Director Executives Director Executives
II ii II Taka Taka ___
Salaries and allowances 2,400,000 74,760,319 77,160,519 3,600,000 45,984,316 49,584,311
Medical expenses -
2,400,000
619,056 619,056
75,379,575 77,779,575
-
3,600,000
1,090,743
47,075,059
"d
l,09(),74.
50,675,059
In 2017 there were 224 number of emplo yees and in 2016 there were 201 number of employees - excluding Managing Director.
The Executive Director has been remunerated on a monthl y lump sum basis.
The Chief Financial Officer (CFO), Chief Marketing Officer (CMO) and General Manager (Operation) are each provided, primarily for
the Company's business, with a chauffeur driven car at the Compan y's cost.
Company (ACL) reimburses the Chief Financial Officer (CFO), Chief Marketing Officer (CMO) and General .\Ianager (Operation)
residential telephone charges up to a set limit as being incurred for the Compan y's business.
58

37 RELATED PARTY TRANSACTIONS

The Compan y carried out a number of transactions with related parties in the normal course of business on arms length basis
Name of the Party Relation

1 Nature of I 30 jun 2017 II 30 Jun 2016 I
I
[N.] Transaction Taka IL Taka J
Sale of Finished
Associated Product, Short-term
1 Aramit Limited - note 23 (57,720,441)
cilities
fa
Company loan tacilines & availed
with interest.
Sale of Finished
Associated Product, Short-term
2 Aramit [outwear L imited - note 9.1 128,881 177
Company loan tacilines
ilities & allowed
fac
without interest.
Short-term loan
Associated facilities, allowed with
3 \iamtt Power limited note 9 2
31,212,890 67 172 274
Company interest and purchase of
services.
Sale of Finished Product,
Aramir Thai Aluminium J.imitcd - Associated -
4 - Short-term loantanlities & 19,491,216 16,268,582
note 9.3 Company allowed with interest.
Short-term loan
- . .
-\ramii. , Siccl Pipes Limited - note 9.4
Associated -
10,206,392 9482 539
ri faeihues and allowed
Company
with interest.
Short-term loan
Aramit Alu Composite Panels Associated -
6 t acilines and allowed 12,217,459 11,651 953
limited - note 9.5 Company
with interest.
-1
North South Transport I ,imited Ass ociaicd Fmancmiz and purchase
- 84427 031)
7 70226431
noic 8.1 Company ot service.
38 NUMBER OF EMPLOYEES
30 Jun 2017 30 Jun 2016
Salary Range
General & Selling and
(Monthly) Factory Total Total
A Distribution
Below Tk 5,51)1) - - - -
ISm Tk 5,301 thru Fk 15,000 75 36 31 142 135
Shove '1k 15,1)0(1 34 21) 28 82 65
Total [ 109 I 56 I 59 P 224 201
01 Jul 2016 01 Jan 2015

to to
30 Jun 2017 30 Jun 2016
12 Months II 18 Months
M. Toi I M. Ton
39 CAPACITY & PRODUCTION
Pr 4 n y u in ( apiicirv
nit-I 210,000 315,000
Litit-2 150,1100 -
360,000 315,000
\ci u;il Pit >4 ucuin 269,47 233.777
(1iji.ii4iv I tilizath ii 4 T4 ,93 74.2l6
59
40 CONTINGENT LIABILITIES AND COMMITMENTS
Commissioner of Customs, Excise & VAT of Chittagong raised a demand against evasion of VAT amounung Tk 33,068,548.12
under litigation no: 08/2012 dated 12 March 2012. To protest against their demand, lots of genuine documents were furnished to
the Customs, Excise & VAT dept. based on which the commissioner passed a verdict (no. 12/2014, dated 26unc 2014) making
the Company liable to pay Tk. 8,155,216 But the Company did not agree to the decision & filed a case to the Appellate tribunal,
Dhaka against thc verdict of Chittagong commissioner.
The Appellate tribunal of Dhaka checked all genuine papers & documents and thereafter sent back the file to the Commissioner
of Customs, Excise & VAT, Chittagong with a request to settle the case repeating the earlier verdict passed by them.
still
Now the case is undecided with the VAT authority at Chittagong Customs, Excise & VAT.
41 EVENT AFTERTHE REPORTING PERIOD
The Board of Directors at their Board meeting held on 28 October 2017 did not ecommencled any dividend for the
shareholders for the year ended 30 June 2017 as the Company incurred loss.
42 AUTHORISATION FOR ISSUE
These financial statements have been authorized for issue b y the Board of Directors of the company on 28.10.2017
43 GENERAL
43.1 Figures appearing in these accounts have been rounded off to the nearest taka.
43.2 Previous year's phrases & amounts have been re-arranged, wherever considered necessary, to conform to the presentation
for the year under review.
43.3 Figure in bracket denotes negative.
*,-,2,L
VA a 2o,

PROXY FORM
mit cement
po
of
I I We
being shareholder(s) of Aramit Cement
Limited and entitled to vote hereby appoint Mr./Mrs./Miss-

21st Annual
as my I our proxy to attend and vote for me /us and on my I our behalf at the
General Meeting of the Company to be held on Monday, 11 December 2017 and adjournment
thereof and the poll that may be taken in consequence thereof.
As witness my I our hand this - - -- - - _day of______________________ 2017.
Signature of Shareholder(s
Signature of Proxy Ivenue
tamp
Folio/B.0 ID No. k 20.00
No. of Shares
Date
Signature of Witness
(Signature of Shareholder (s) must in accordance with specimen signature with the Company)
ATTENDANCE
I hereby record my presence at the 21st Annual General Meeting of Aramit Cement Limited at
Chittagong Club Ltd., S.S Khaled Road, Chittagong on Monday, 11 December 2017, at 12:00 pm.
Full Name of the Shareholder

(in block letter)____________

Register Folio/B.O ID No. holding of Ordinary
Shares of Aramit Cement Limited.
Signature of Shareholder(s)
(SHAREHOLDERS ARE REQUESTED TO HAND OVER THE ATTENDANCE SLIP AT THE ENTRANCE OF THE MEETING HALL)
III I
wftmm
'kl1t ItN QI1 I1C Nm/CMr
c Mtii f'iii rtfl' ici oct
rQ 1 t'15tr C Pw I
-
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(cItfitc c l't3 fim c' c)
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il
C1cIft.i N

Ckcj1c Ct,'ft\ ft1?;
cicjsli1
(t 1 t)
rLB
aramit cement ^
ANNUAL
REPORT
L=MMW,___ -,"Mll
2017
ararnit
cement limited A unit of aramit group
Share Office
53, Kalurghaf Heavy Industrial Estate
P.O : Mohara, Chittagong, Bangladesh Green View Apartment, Flat-6/j, 5th Floor (North side)
Tel (88 031) 671950, 670473, 670368, 672516 House-39, Road-24, Guishan-] Dhaka-] 212
Tel: (88-02) 9887176, 9881095, Fax: (88-02) 9851551
Fax: (88031) 671583
E-mail: shares@aramitgroup.com
E-mail info?aramjtcementcombd
WNw.aramjfcemenfcombd

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HUIWIL r

L aramit cement limited

SHARE HOLDING POSITION (30.06.201 7)

Sponsors 4 15,728,353 157,283,530

21't Annual General Meeting

(Syed Kamruzzaman, FCMA)

Managing Director (CEO)

Independent Director Independendent Director

Bismillahir Rahmanir Rahim

12 Months 06 Months 12 Months 18 Months 12 Months 12 Months 12 Months

12 Months 06 Months 12 Months 18 Months 12 Months 12 Months 12 Months

Taka Taka Taka Taka Taka Taka Taka

Net Sales 1,558,264,409 710,439,383 863,484,320 1,573,923,703 623,698,928 871,405,186 1,102,097,948

Risk factors and concerns

Credit Rating Information and Service (CRISL) assigned rating as below:

Contribution to the National Exchequer

12 Months 06 Months 12 Months 18 Months 12 Months 12 Months 12 Months

Taka Taka Taka Taka Taka Taka Taka

On behalf of the Board

S.M. Jamal Ahmed

Cost of Goods Sold 1,242, 105,134 551,153,425 629,481,005 1,180,634,430 474,236,537

Mr. Md. Towhidul Anowar Independent Director 6 6 - -

Ms. Nasir Uddin Director 6 - - -

Shares held by Number of Percent Remarks

Bangladesh Development Bank Ltd.

Report of the status of compliance of corporate governance Annexure - A

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Value Added Statement

Applied in the following ways

Retained by the Company

To pay for capital expenditure to replace existing assets, to

Elements of Total Cost

Certificate on compliance with conditions of Corporate Governance by

Dated : Chittagong 04 November, 2017 tCdAC MRH DEY

(S. M. Rezaur Rahman)

The Board of Directors

a) these financial statements do not contain any materially untrue statement or

Management's Responsibility for the Financial Statements

ARAMIT CEMENT LIMITED