Audited Report-2019

AUDITORS' REPORTS
&
FINACIAL STATEMENTS
OF
Dragon Sweater & SPinning Limited

For the year ended 30 June 2019
fr-{rq {rd <qr$'qv c$l(

SHIRAZ KHAN BASAK & CO.
CHARTERED ACCOUNTANTS
R K Tower (Level-l0)
86 Bir Uttam C R Datta Road
Dhaka-1205
rx
DRAGON SWEATER & SPINNING LIMITED

Contents
Sl. No. Pirticulars Page No.
01 Audit Reports 1-1
02 statenrent of Financial Position 8
0l Statement ofProllt and Loss and Other comprehensive lncome 9
04 Statement ofChanges in Equily l0
05 Statemenl of Cash Flows tl

05 Notes, comprising a summary ofsignilicant accounting policies and explanatory 1.2-.tl
inlormation
01 Fixed Assets Schedule (Annexture-1) .14
08 Schedule ofTrade Receivable (Annexture-2 & l) l5
0q Schedule of Bills Payable (Annexiure-4) 36
10 Defened Tax Calculation (Annexturc-s) 11
l1 Income Tax Liabilities (Annexture'6) 38

B l{rs4{I${Pll{$,{!9r
(, n associ.dtefirm d,D. N. Suptd &,Associates)
R. K- TOWER L I ]]
86, Bir Uttarn C.R. Datta Road
(312, Sonargaon Road), Dhaka-1205
Tel : 88-02-9635139, lax i88-02-9672006
M(lbile : 0l 552"638228. 011 11 -5207 70
E-mail : shiraz_fca@yahoo.com
Independent Auditor's Rcport

To the Shareholders of
Dragon Sweater & Spinning Limited
Report on the Audit ofthe Financial Statements
Opinion
We have audited the financial statements of Dragon Srveater & Spinning Limited (thc Company), r'hich
comprise the Statement of Fiiancial Position as at 30 June 2019, and Statement of Profit or Loss & Other
Comprchensive Inoorne. Statement of Changes in Equity and Statement of Cash flows for the year thelr
ended. and notes to the financial statcments, including a sumnary of signillcant accounting policies and othcr
erplanalor) inlonnation.
In our opiiion. thc accompan),ing fiDaicial statcments give true and fair view, in all malerial respects, ofthe
financial position of the company as at 30 June 2019, and its financial pertbrmance and its cash flows lor the
year then ended in accordance with lntemaiional Financial Reporting Standards (IFRS), The Companies.Act
1 994, The Securilies and Exchange Rules I I87 and other applicable laws and regul ations.
Basis for Opinion

Wc conducted our audit in accordance with International Standards on Auditing (ISAS). Our responsibilities
under those sta dards are futher described in thc Auditors' Responsibilities tbr the Audit ofthe IinaDcial
Statcmcnts section of our repoll We arc independent of the co m panl in accordance w ith the 'Intenraliona l
Ethics Standards Board lor Accountants' Code of Elhics for Professional Accountants (IESBA code) together
Nith the ethical requirements that are relevant to our audit of the financial statemenis in Bangladesh, and rve
have tulfilled our other ethical respolNibilities in accordance with the IESBA Code. we believe that lhe audil
evidence wc havc obtained is sufficient and appropriate to provide a basis lor our opinion.
Key Audit Matters

Key audit matters are those matlers that, ii our professional iudgmcnt, wcrc of most signiticance in our audit
ofthe financial stalements of the clrrent period. These matters were addressed in the conte\t of our audil of
the finaDcial slatements as a whole, and in fonning our opinion thereon, aDd we do not pro\,ide a sepamte
opinion on these matters.
Risk Our response Io the risk

Revenue Recognition
During the ycar ended 30 June 2019. total repofed In order to obtain the competences. accuracv and
reveDUe is of Tk. 1,921.7?4.538. The company corrcctness of tlle rerenue. \\'e have tested the following
exponcd all products. key control activitics:
The timing ol the revenue recognized and realized

. Calculating the completeness oftotal sales and
ilrcreases the risk ofexposure oIrelenue to loreign
VAT,
exchange fluctuations, . Segregation ot' duties in invoice creation aDd'
modification.
The revenue recognition has bccn considered as . Timing ofrevenue recognition,
key audit matter, since it is one of the ke)
perlormance indicatom of the company and also . Recordi g systen ofre\'enue.
the key finarcial eleDlent \rhich would eventually
increase the inhe.enl risk olthe company. r Verily the bank deposits with invoice, bill of
+ enrry aId or\er Jocu'r'errts cn re.t barr..
1
t
B l{rsA,p.{I*riiP$f{{*99;
(A.n dssociatefinn ofa. 9{. Supta slAssociates)
R, K, TOWER
r
.1 :r)
86, Bir Uttam C.R. Datta Road
Tel 88'02.963i139. Fax: 88-02-9672006
Mobil€ : 01552-63 822 8, 0l1l l-520170
. Verily the respeclive invoices, L/C documents,

Mushak Challan, VAT Retum to confirm the
payment of VAT against exporl sales and
aggregated sales values.
Our substantivc procedures is relating to ihe rerenue

recognition comprises the followingi
. obtaining supporting doounents for expod
transaclions.
. Verify the invoice with the lcdger as sampling
ba.:. and r.l"rcd accounling enrrie..
. Veriry the -ioumals posted in the accounting
systems,
. Veriry the appropriateDess of disclosures

against rclcvant accounting standards.
. Assessing the appropriateness ofthe Company's

accounting policies for revenue recogrlition and
compliance of those policies \!ith applicable
accounting standards,
Pleasc sce Note No. 19.00 to the Statement ofProfil or Loss & Other Comprehensive Income.
Risk Our response to the risk

Valuation of Inventory
As at 30 June 2019, The reponed amount of ln order to obtain the competences accuracy and
in\enroI i. 1,.51 ].)oh,b 0 cld ir' lactorl. correctness oftlle revenue. *,e have tested
Most ofthe inventories are of specialized in nature We verified the appropriateness of management's
and required to be maintained in controlled assumptions applied in calculating the value of the
environment. Regular moDitoriig is required as the inventory as per International Accounting Standard
inventories are material by its value, quantity and (l-A.S) by:
its nature. . Evaluating the desigD and inplementation of
key inventory controls operating across the
On reporting datc, inventories are carried at the factory-
1o\\er ofcost and net realizable value. As such. the . Attend the physical verification olinventory
company applies judgment in determinjng the
counts and reconciling dre couDt results to the
appropriate values of llrventory in accordance *,ith
inventory listing to test the accuracy ofdata.
lnternational Accounting Standards.
r Reviewing the historical accuracy of inveDtory
valuatioD.
. Applying professional skepticism to the
comple,ene.s ol inrcnror) record,rr!. a',...ing
actual and forecast the sales of inventory and
tested dre slow moving/absolute invcntory.
2
R K TOWF.R I .l
B l{rBArT}${ffl{{*99:
rj
(,4n a:sociateJim of a. I't gupta e,lAssociates) Tel : 88'02-9635139. Fax: 88.02-9672006
Mobile : 01552-638228, 01711-520'770
Our substantive procedure in relating to the invcntory

valuation are as follo*s:
. Verify the recording system of inventory and
confinn the opening balance of all items ol
inventory value,
. Vedf) the receiving and consumption of
inventory *,ith Challan. MRR, Import
ilocumenrs on test hrsis
. Test/veriry_ the expon documents rvith finished
goods stock register on test basis.
. Check the accounting records relating to

inventory purchase and finished goods on tesl
basis.
Ple.se see Noto No.8.00 to the financial statemeDts
Risk Our response to the risk

Valuation ofProp€rty, Plant and Equipment
Thc carrling value of the PPE is Tk. In order to obtain the completeness and accuracy ofthe
1,844.852,202 as at 30 June,20l9. The valuation measurement of Property, plat & equjprhent, we have
of PPE excluding land and land development are tested the lollowing key control activities:
measured at cost less accumulated depreciation.
The most s of PPE are revalued a d sholn in the
. Atlends the physical verification offixed assets.
fi nancial statements o1201 7-2018. . Checking the flxed assets register for propcft"v,
plant and equipment.
The uselul lives of PPE items are based on
management's estimates regarding the period over . Assessed the lcgal right and obligations ol
which an asset is expected to bc available tbr use. properly, plant and equipment.
The estimates ofuseful life ollhe assels is a malter
ofjudgment based on tbc experience ol the entiry
. Assessed the control activiiies ot'Property,
with similar assets and also take inlo consideration Plant and Equipment.
the physical condition ofthe assets. . Assessed whether the accounting policies in
relation to the capitalization ofexpenditures are
in compliance with IFRS and found them to be
consislent
Our substantive procedure in relating to the propety.

plant and equipment recognition and measurements are
following:
. Checked thc purchase and adjustments with the
relevant bills and youchers.
. \ eril) lhe hard con) of fired a.5er. regi5rcr
. \eriI llecalculauonDroce55ofdeDreciation.
It .r )r
r
B t{rsr{#\ttf{{*99r
(An associate firm oJa. ,{. quptd 4,Associntes)
K. TOWI|R
Tel | 88'02-9635139, lax :
Mohile : 01552-638228. 01711-520770
8 8-02'9672006
Checked whcthcr the depreciation oi PPE items
$as commenced from the dale ofready to usc
and found the depreciation had been sta ed
Please see Nole No ,1 00 and Annexure No. A to ihe financiai statements
Our response to the risk

Deferred Tax Liabilities
Deferred Tax Liabilitics has been recognized due In order to obtain the completeness and corectness of
to temporary difference oftaxable deprcciation aod dilfered tax, rve have tested the lollowing key control
accounling deprcciation in complianoe of 1AS-12. activitiesl
. A\'e..ed the comp)etene.. and ".crrr"c\ ol'.he

d"la u.ed l'or lhe e.limdlion. -. culrli"n cl
iut ure ta r:rble erpen'e..
. Asse=ed t re ke1 a...rmption.. conr'o1..
recognitior and mea.urenrenl oldc[cr.d ld\
Our proccdure in relaling .o rhc aclcarcd ra\

'ub.lanlirc
rner.urernenr are a, lollou iog,:
. I e.ted rhe Ja.c ..arion ol ra. ba.ed d.or..iatiorr L
dnd baccd dcprcci.r.ion

"ccoJnring
. Verify the procedure ofdeferred tax oalculation
and recognition.
. Assessed the appropdateness ofpresentation
and disclosure against IAS-l2.
Please see Annexure-5 to the financial statements
Our rcsponse to the risk
Long Term Loan

As at 30 June 2019, the repofted ronnt oftotal In order to obtain the completeness and accuracy ofthe
long-term loan is Tk. 129,032,6,13 Cuffent & Non measurement of Long Tean Loan. wc havc tcsted the
current portion). The compan) borowed lund lrom following key control activities:
The Cily bank Ltd. for the purpose of acquisition
ofnon-current assets and \\,orking capital as \\'ell. . Attends ihe actual position ofloan.
The compaly may face ditlicultics due to
. Checking the bank statement.
unfavorable movement in interest rate, monetary . Checking the loan agreement.
policy and adversc variancc between import &
expoft lhat may result ii short-term cash flow
crisis.
L
B fllls'I l$$\ I$f+{,q, R. K. TOWTIR .1. rr)

99; (312, Sonargaon Road), Dhaka-1205
(An dssociatefinn oJa. ,'t qupta $t,,4ssocintes) Tel : 88-02-9635139. IaI : 88-02-9672006
Mobile : 0l552-638228. 01711-520'110
Our substnDtive procedure in relating to the Long Term

I oan re.osiir:on mea.ure-enl. are lullo\\ing:
"nd
. Checked the bank statemenl also with the
opening balance.
. Checked thc rccording ofthe transactiou.
. We verified sanction letter. loan schedule and
bank slatements to collfirm the loan outstanding
and found that the balance had been reported in
the fi nancial statements accurately.
. We also checked the financiai cxpenses and
classification of loan and repayment schedule as
well.
. we checked the recording date of transactions
and found the recording date is in lire wiih the
loan disbursement date. We also confirmcd that
the company has paid its installmeDts !\i1hin due
time.
Pler,e lee \ole \o. l5.00 ro rhc fin-n.i"l .lare'nenr'.
Risk Our rcspons€ to the risk

Recoverability Assessment of Trade Rcccivable
The total amount of tradc receivable is Tk. Our audit procedures ol assess the recoverabilit) of
.1r8.818.8o, lRe.eirable "rom loreign trade receivables including the follo*,ing:
Companies is Tk. 628,185,946 and from Local
Conpanies is Tk. 690,632,9450 at 30 June,2019. . Tested the accuracy ot' ageing ol Trade
Customers i1r diflerent business scgments and recc;!rble:rl )errend on a.ampl< hr,i.:
lurisdictions are subiect to their independent . Evaluating the Cornpany's policy for naking
busincss risk. allorvance for doubtful debts with reference to
Thc total amount ol trade receivable is Tk. the requirements of the prevailing accounting
l.il8.8 8.80r rReceir"bl. lrorr lurergr standardsi
Companies is Tk. 628,185.9,16 and ftom Local . Assessing the classificntion ol lrade receivables
Companies is Tk. 690,632,9450 at 30 June, 2019. in the tradc receivable ageing repofi b]
Customers in different business segments and comparison with sales invoice and other
jurisdictions are subject to their independent underlying documentation on a taste basis;
. lnspectiDg subsequent bank receipts lioln
customers and other relevant underl)ing
documeDtation relating to trade reccivablc
balanccs at 30 June 2019.
PIease see Note No 9.00&l0.00tor|efinrncirl strtenenfs

R. K. TOWER LI
B f{lHqfll$\Plf{f*99r
l)
(An associatefrm ofA. $t €1tpta c:tAssociates)
Tel : 88-02'9635139, lax r 88-02'9672006
Mobile : 01552-638228. 01711-520770
0lher Information
Management is responsible for the other information. The other inlormation comprises,ll ofthe infonnation
in the annual report other than the financial statements and our auditor's repofi thereon The directors are
responsible for the othcr intbrmalion.
Our opirrion on the financial statemenls does not co!er the other infornlalion and we do not exprcss any tbrm
of assurance conclusion thereon.
ln connection with our audit ofthe financial statements, our rcsponsibilily is to read the other information and.
in doing so, oonsider whether the other infomation is materially inconsistcnt with the financial statements or'
our kno\\ledge obtained in thc audit or olherwise appears to be materially misstated. If. based on the work we
have performed, rve conclude that there is a material misstatement ofthis other inlormation \le are rcquired to
repofi that fact.
we havc nothing to repofi in this regard.
Responsibilities of Management and Those Charged with Governance for thc Financial
Statemcnts and Internal Controls
Managemenr is responsible t'or the prepamtion and fair presentation ot'the financial statements in accordance
$ith IFRSs, The Companies Act I994. The Securities and Exchange Rules 1987 and other applicablc larvs and
regulations and lor such iitemal control as nranagement determines is necessary to enable the preparation of
linancial statemenls that are free flom material misstatement, whether duc to tiaud or error. l'he Companics
Act, 1994 rcquire the management to ensure effective intemal audit. internal control and risk nanagcment
functions of the company.
In preparing the financial statements, management is responsible for assessing the company's ability to
contirue as a going concem, disclosing, as applicable, mafters related to going concem and ising the going
concern basis ofaccounting unless management either intends to liquidate the company or to cease operatiol'ls,
or has no realistic altemative but to do so.
Those clrarged with governance are responsiblc for overseeing the company's financial reporting process.
Our objectives are to obtaii reasonable assurance about whether dre financial statements as a rvhole are lree
lrom rnaterial nisstarement. $hether due to flaud or error, and to issuc an alrditor's repot that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guaraDtee lhal an audit conducted in
accordance with lSAs will al*,ays detecl a material misstatement when it exists. Misstatements can arise frol11
fraud or error and are considered material if. individuall) or in the aggregate, they could reasonably be
expect,rd to influence the economic decisions ofusers talien on the basis ofthese financial statements.
Auditor's Rcsponsibilities for the Audit ofthe Financial Statements

As pad of an audit in accordance with ISAS, we cxercise profcssional judgment and maintain professional
skepticism throughout the audit. we also:
. Identilf and assess the risks of material misstatement ofthe financial statements, whether due to fraud or
eror, design and pcrfomr audit proccdures rcsponsive to those risks, and obtain audil evidence that is
sufficient and appropriate to provide a basis lor our opinion. The risk of not detecting a material
misstatement resultiDg lrom fraud is higher than for one resulting from error, as lraud may involve
collusion,forger),intentionalomissions.misrepresentations,ortheoverrideofinternalcontrol.
. Obtain an understanding ot' internal control relevant to the audit in order to design audit procedues that
are appropriete ilr circLrnstances, but not for thc purpose ofexpressing an opinion on the effectiveness of
the compan-v's internal control,
B !{rH4HI$li P$!+{,t
(,An assoctatefirm ofo
99r
9{. Gupta &,Associates)
R
Tel
K. TOWllli L I
: 88-02-9635139.
)l
Iax i88-02-9672006
Mohile : 0l 552"638228. 017 11 -520'1 70
. Evaluate the appropriateness of accoullting policies used and the reasonableness of accounting estimates
and related disclosures made by management.
. ConclLde on the apprcp ateness of management's use ofthe going concem basis accounting and, based
on the audit evidence obtained. wheiher a material uncedainry exists related ro events or conditions that
may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a
material uncefiainq- exists. we are required to draw attention in our auditor's report to the related
disclosurcs in the financinl statements or, if such disclosers are inadequate, to modily our opinion. Our
conclusions are based on the audit evidence obtained up to thc date of our auditor's report. However,
future events or conditions may cause the company to cease to contiDue as a going concem.
. Hvaluate thc overall presentation, sffuclure and content of the financial statements, including the
disclosures. and *,hether the financial statements represent the underlying transactio s and event i11 a
manner that achieves fair presentaiion.
. Obtain sufficient appropriate audit evidence regarding the financial information ofthe cntities or business
activities within the company to express an opinion on the financial statemeots we are responsible lor the
direction, supervision and perfomance oflhe company audit. We solely responsible for our audit opinion.
We communicate with tlrose charged \rith govemancc regarding, among other matters, the planned scope and
timing ofthe audit and signilicant audit findings, including any significant deficiencies in inienral confiol that
we identiry dudng our audit.
Wc also provide those charged with governance with a statement that we have complied rvith relevant ethical
requirements regarding independence, and communicate with them all relationships and other matters that
may reasonably be thought to bear on our independence, and where applicable , related safeguards.
From the matters communicated with those charged rvith govemance, we detemine those matters that were of
most significance in the audit ofthe financial stateme ts ofthe current period and are thereforc thc key audii
matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our rcport because tho advcrse consequences oi doing so would reasonably be expected to
outweigh the public iDterest benefits ofsuch communication.
Rcport on oth€r Legal and Regulatory Requirements

llraccordance $ith The Cornpanies Act 199,1, and The Securities and Exchange Rules 1987 and relevant
notifications issues b), Bangladesh Securities and Exchange Commission, we also report that:
a) We have obtained all the infonnation and explanations which to d1e bestofour knowledge and belief
were necessary for the purpose ofour audit and made due verification thereof:
b) In our opinion, proper books ofaccounts, records and other statutory books as required by law have
been kept by the company so lar as it appeared lrorn our examinations ofthose books;
c) The Statement of Financial Position, StatemeDt of Profit or Loss & Other Comprehensive Income and
Statement ofcharges in Equity and Statement of Cash Flows ofthe Company dcalt with by the repo(
are in agreement with the books ofaccounts and rctums; and
d.) The expenditure incured was for the purpose ofthe Company's business.
Dated: Dhaka: Khan, FCA

October 29, 2019 ncipalPartner
Shimz Khan Basak & Co.
Chartered Accountants
Shiraz Khan Easak & Co.
DR{CON SWEATER & SPINNING LIMITED

Statement of Financial Position
As at 30 June 2019
30 June 2019 30 June 2018

Parliculars
ASSETS
Non-Current Assets 1.056.601,,116 1.850.027.025.
Property. Plant & Equipmenj 4 I r.os2.204,8r 7 ll 1,844,852,202 |
s I l.le8.see ll s.t;+,g::
Intangible Asseis
Capiral work-in-Prcgress uI ll I
Current Assefs 2,028,159,983 r,645,759,214

Short-Tenn lnvestmenl in FDR
'7 4,542,409 4,349,243
Inveniories 8 514,296,610 398,911,951
Trade Receivable from Foreign Companies 9 628,185,916 534,8?8,311
Tradc Receivable from Local Companies l0 690,612,915 533 ,14t ,',721
,^dvance, Dcposit & Pre-paymenr ll 45,685,1i9 31,817,913
Cash & Cash Equivalents t2 144,8 r6,73.1 r41,994,073
TOTAL ASSETS .r.68,r.763.398 3.495.786.269
EQUITY AND LIABILITIES

Shareholders'Equity 3.098.909.529 2.903,348,851
Share Capiial l3 f l.JJtssroooloolf r.Jrr-Jrr,soo,oool
Retained Eamings I rro.o+r.:0,1 ll r,8o.ss8.6(]9 I
Reserve for Revaluation 14 I rqs.soz.r6o ll ooo.:qo.:4: I
Non-Currenf Liabilities 3a1,77 4,982 432,675,039

Long Term Loan 15 f rjiJro.ssilf il-ct.66?l
Defened Tax Liabilily I rs.os+.roz ll
qr.r+:,v: I
Current Liabi,ities 201,078,887 62.379

159,',t
Bills Payable l6 5,142,t94 8,273,818

Liabilities for Expenses l7 27,037,183
Long Term Loan Net Currenl Potion t5 29.912,058 33,493.t6'l
Provision for lncome Tax t8 143.322.111 958.212
TOTAL EQUITY AND LIABTLITIES ___!,!!1J6J,198 ---!12!J!f2!e

Net Assets value CNAV) per share 25 19.53 18.29
Managing Direclor Chairman
Signed in leflns ofour separate rcpofi on even dale.
Dated: October 29, 2019

Place: Dhaka
Shiraz Khan Basak & Co.
DRAGON SWEATER & SPINNING I,IMITED

Statement ofProfit or Loss and Other Comprehensive Income
30 June 2019 30 June 2018

Particulars Note
Taka Taka
Revenue l9 1 ,92t ,',7 7 4,538 1 .646,647

,68',7
Cost ofCoods Soid 20 (1,,+36,583.659) (1,197,818,232)

Gross Profit (GP) 485,r90,87S 489,828,415
Operating Expenses 2t (151,4r 5,301) (104,s42,27 6\
Financial Expenses 22 (31,112,905) (38,378,827)

Non-Opemting Income 23 17,396,021 8.412.691
Profit Before Tax and WPPF 317,058,698 3ss,320,003
Worker's Profit Participation Fund (WPPF) Expcnses ( rs,098.033) ( r6,920,000)
Profit before Tax 301,960,664 338,,100,003
Tax Expenses:
Current Tax 18 (s2,363 ,96t) (4s,528,230)
Deferred Tax Incomc/(ExpeDses) Annx-5 12,088,975 4,070,238
Prolit for the ycar 261,685,679 296,912,011
Other Comprehensive Income:
Revaluation Surplus 8',7 6,932.127
Defened Tax Expenses (8s,184,127)
Total Comprehensive Income 261.645,679 ___!q!!JgqJ!1
Basic farnings Per Share (EPS) 24 1.65 1.87
The annexed notes form are ar integral pan ofthe Statement ofPrcfit or Loss and Other Comprehensive
Income.
Company Secretary c
br
;----v'l^--
-)
il./.4-,4k
Managing Director Chairman
Sigred in terms ofour separate rcport on even date.
Dated: October 29,2019 ak & Co.

PIace: Dhaka
DRA.GON SWEATER & SPINNING LIMITED

Statement ofChanges in Equiqv
Ordinary Sharc Revaluation Retained

Totrl
CaDital SurDlus Earninss
Balance as ofl Jul) 2018 1,.122 500,000 900.290,2D. 680,558,609 2,901,148,851
Cunent Year Revaluation Surplus
Defened Tax Expenses
Re\ aluation Surptus realized (Anne\ure- | ) (r01.428,0-6) 104.,128,076
Addirion ,lurng rhe period 264,500,000 161,685 67q 526,185,679

1,587,000,000 795,862,166 1,016,672,16,1 3,429,511,529
fess Di\ idend Pa d drrinq the pcriDd (330,625,000) (330,62s,000)
Balance as at 30 Jrne 2019 1,587,000,000 795-862-t66 116-011.364 3,098,909,529
For the vear ended 30 June 2018
Ordinary Sharc Revaluation Retained

Particulars
CaDital SurDlus
Balance as of I Julv 2017 1,150,000,000 128,033,847 531,224,993 t,815,258,840
Currenr Year Revaluation Sumlus 816,932,',727
Deferred Tax Expenses (85,784,727) (85 ,7 84,121)
Revaluation Surplus realized (Annexurc- I ) (r8 8q t,605) 18,8q1,60i
Addilion during the period 172,500.000 296.912.011 .169,411 0r r
Sub-Total 1,.122,500,000 900,290,212 8s3,0s8,609 3,075,848,851

Less:Divident Paid during dre period (r72,500,000) (172,500,000)
Ralance as at 30 June 2018 1,322,500,000 o00,200,242 680,558,6Uq 2.903.3,18.851
Company Secretary
.- F,,
6-'*--/'.}.^-*"
Manasinq Dir€ctor
il.4Chairman
a.,4,-
Signed jn tenns oloul separatc rcpor't on even date.
Dated: October 29,2019 ifa'rKha nBtrsak & Co.

Placer Dhaka
10
shiraz Khan Basak & co.
Statement of Cash Flows

For the vear ended 30 Junc 2019
30 June 2019 30 Jure 2018
Particulars Note
Taka Taka
A, Cash Flolvs from Operating Activities
Cash Receipt fiom Custome$ 30.00 1 ,619 ,a4',7 ,546 1 .472.063 ,s 46
Cash Receipt from Non-Operating Income 7,899,085 8,412,691
Cash Paid to Suppliers and Others i1.00 (1,533,735,446) (1 ,266,1 60,992)
Foreign Exchange Cain/(Loss) 652.481 II73.552
Cash Gen€rated from Operations 32.00 154,663,673 212,511,692
Cash Paid for Financial Expenses (34.r r2.90s) (38,378,827)
lncomc Tax Paid 12,532,842 I l.157.588
Net Cash Flo$s from Operating Activities I08.0t 7 926 163,005,277
B. Cash Flows from Investing Activities

FDRInvestment (193, r66) (209,014)
Investment for Non-current Assets (135,146,445)
liteest Received from FDR 193,166
lnteest Received from SND 721.926
Net Cash used in Investing Activities 321,926 (135.355,,159)
C. Cash Florvs from Financing Activities:

Long Term Loan Net ofCunent Portion (35,811,082) (18.7s 1,842)
Long Teml Loan Current Potio (3,s81,108) (r,875,r 84)
Cash Paid for Dividend 66.r25.000
Net Cash used in Financing Activities (105,517,190) (20,627 ,027\
D. Net Increase ir Cash & Cash EquivElents (A+B+C) 2,822,661 1,022,191

Opening:
Cash & Cash Equivalents 141,826.170 134.827,005
Foreign Currency Account t6'7.902 144.21',7
Closingr
Cash & Cash EquiYalents 114,648,a31 141.849,796
Iorcign Cunency Account 161.902 114.21',l
F. CEsh & Cish trquivalents at end ofthe year (D+E) 14,1,816.73,1 1,11.994.073
Nct Operating Cash Flows Per Share 26.00 0.68 1.03
The annexed notes form are an integral part ofthe Statement ofCash Flo\rs.
Company Secretary
l,ffiv^
Dire'l6t
fut
6-\a-,--?h<- .il. /.4".1*
Manlging Directol Chrirman
Datedr October 29, 2019

:-,..
Place: Dhaka
71
" .r -

Notes, comprising a summary of significant accounting policies and explaratory informatior
For the year endcd 30 June 2019
1.00 The Background and -A.ctivities ofthe Company:
l.0l Lcgal Status olthc Company:

Dragon Sweater & Spinning Limited was incorporated on June 16. 1999 as a 'Private' Company
limited by Shares, Registered under the Companies Act 1994 as adoptcd in Bangladesh vide
ce ificale of iDcolporation No. C-37951 (2251)/99. Dragon Srveater & Spinning I"imited ivas
convefted into a Public [.imited Company as on 131h January 2012. The Company's registered olfice
is situated at 25/2. DIT Road, Malibagh Cho*dhury Pnm. Dhaka and its factor) is located at
Chardul. Miah Bazar. Chowddagaram. Comilla.
1.02 Principal Activities of the Company:

The company has been incorporatcd with the primary objcctive of getting iDvolved to promote,
established and conduct tcxtile, yarn and acrylic spinning mills in Bangladesh and to unde(ake all
other business in connection therewith. Dragon Sweater & Spinning l,imited ruDs the business of
producing Spinning and manufactur;ng and exporting ofreadymade swcater, pull over and $caring
apparels oiall kinds out ofwool, cotton. synthetic, fibers, acrylics and others to establish a modem
Sweater Faclory or manufacturing Swcate. shift and pullo!er of acrylic cotton, \!ool, silk, jute, flex,
synthetic. and/or an-v f'abric yaln for mcn, $omen, boys. and girls and marketing the samc in the
foreign market.
f.03 Summary ofsignificant Accounting and Yaluation Policies:

The principal accounting policies have been consistentl! applied to ali the years presentcd, unless
other wise staled. The specific Accotlnting Policies selected and applied by the compan)'s
managenent for signifioant transactions and events that have a material effcct wjthin the frame\!ork
of International Accounting Standard (IAS)_1 "Presentation of Financial Statements" in
prepamlion and presentation offinancial statenrenls. Compared to thc prcviolts period. there \!ere no
significant changcs in the accounling and valuation principles alfecting lhe fiuancial position and
pcrfbrmance ofthe compan-r. Accounting and valuation methods are disclosed for reasors ofclariR
2.00 Basis ofFinancial Statements Prcparation and Presenlxtion:
2.01 AccountingStandard:
The financial statcments of the company have been Ixepared in accordance with Intenrational
Financial Repotung Standards (IFRS) which include Inlemational Accounting Stendards (lAS).
2.02 -A.ccountingConvention:
'lhc finarcial statements are prepared under thc historical cost convcntion. Thc company classilied
the expenses using dre lLrnctioll of expenses method as per IAS-1.
2.03 Lcgal Compliance:

The financial statenlents have bccn prepared and the disclosures of information have been rnade in
accordance with the requirements ofthe Conpanies Act 199,1, The Securities and Exchange Rules
1987, IASs and lFRSs. On the basis ofthosc regulations lntcrnational Accounting Standards (lAS)
& lntemational Financial Repoding Standards (I|RS) \!ere applied at lhe date of financial
siatemenis.
2.04 Accounting Estimates. Assumptions and Judgmcnts:
The preparation ofthe financial siatements in conformity rvith IFRS requires the
accounting estimates. It aiso requires managcmcnt io exercise its judgment in thc proccss
applying thc company's accounting policies. Therefore the managemeDt has fu lfi iTed
requirements for ration and prescntation offlnancial statements ofthc company.
12
Chartored Accountants
2.05 Reporting Framcwork and Compliance Thercof:
Thc F'inancial sralemenr have been prepared in comprianoe $ith rhe requirements ofrhe co,rpanies
Act 1994, the Securilies & Exchange Rules I987 and other relevant looal la*,s as applicable, and ir
accordance \!irh the rnlemationar Financial Reporting standards (rlrRSs) aird International
Accounting Srandards (lAS).
2.06 Presentalion ofFinancialStatementsl

'flre preseniatior ofthesc financial statements
is in accordance \\ith the guidelines providcd b),lAS
i: r'Prcs€ntation olFinancial Statements,,. The Financial Statement comprises:
i) AStatementolliinancialPositionasar30June20lS:
ii) A Statcmenl of Profit or Loss and Other Comprehensive Income lor the year ended 30 June
2019r
iii) A Starement of Changes in Equily for the year ended 30 June 2019;
iv) A Slatenrent ofCash Flows lor the year ended 30 June 2019; and
v) Notes. comprising a summan, olsignificant accounting policies and explanatory
information.
2.01 Applicstion of Standardsl
'I'he
following IASs are appricable for the financiar statemcnls ofthe company for the period under
audir:
Name of tho accountirg standards Status of

Ref. No.
ApDlication
PresentalioD of Financial Staternents IAS-] cable
Inventories 1AS.2 App cable
Slatement ofCash Flous IAS.7 Applicable
Accounting Policies. Changes in Accounting Estimates and
Errors IAS-8 Applicable
Events After thc Reporting Period IAS-10 Applicable
Income Taxes IAS-12 Appl
Propert), PIant and Equipment IAS-16 Applicable
Revenue IFRS.15 App cable
Emplo)ee Benefits IAS-19 Applicable
I he !,tlects ol Ctanges in Foreign Exchange Rates IAS.2] Applicable
Borro\\ing Cosls __ IAS-2J Applicable
Related Party Disclosure IAS-24 Applicable
Errninqs Per Share (EPS ) IAS-33 Applicable
Impairment ofAssets IAS-36 Applicable
Pror isron.. Corrirgenr I iab;tirie. andtoninEninierr IAS.]7 Applicablc
Intangible Assets
IAS.]8 Applicable
2.08 Reporting Pedod:

The finaDcial sratement co\ers from I July 2018 ro 30 June 2019.
2.09 Date ofAutho zation:

The Board ofDirectors has authorized these flnancial slatements on October
29. 2019.
2.10 Functional and Presentation Currencyi
O,lli**, Staremerrs are prepared and presented in Bangladesh Currency (raka), though the
I,l:
major sales and purchase activities werc carried out in US Ooif*. no*,gn
"rri.,,";ril.
il rlc.rpp:cab'e .rres ot (\chargerrrli..gaLrha date. Al. fi.,dr.iil i-rbimarion ore 7b-ed\i.\
rorr rJed oll ro h. n(,,re,l Lr(.r c\c<ft uhereindi.a ed orterui"e.
Dhara J '
t'l ,---/.9
Chartered AccouIrtants
2"11 Going Concern:

It was revie$ed by the management; thcre \rere no significant going concern threais available in tie
operation of fic comPanY.
3.00 SignificaotAccountingPoliciesl
The accounting policies in respect ofmaterial items olfinancial statemcnts have been set out belo$i
3.01 RevcnueRecognitionl
ln compliance with the requirements of IFRS 15: "Reve[ue fiom contrlcts with customers" a
performance obligation is satisfied by transiening the prenised good or service to ihe cusiomer. The
good or sen ice is transfered when the customer obtains control ofthe promised good or service. An
indicalor ofthis is when thc clrstomer l'Ias the risk and reward olorvnership.
Rerenue from sales is erclusive oiVAl'.
J.02 Propenl. Plants and Fquipmenr.:
3.02.1 Recognition and Measurement:

This has becn stated a1 cosl or revalued amount less accumulated depreciation in compliancc with
the requirem ents of IA S 1 6 i "P roPer8, Plant ard Equipment" The cost of acqu isition of an asset
comprises its purchase price ard an)' direclly attributable cost ol bringing ihe assets to its working
condition fbr its intended use inclusive of inward freighl, dutics and norr_refundable taxes
3.02.2 Pre-Operating Erpenses and Borrowing Costs:

Intercsl and other erpcrrscs incurred by lhe company in respect olborrowing offund are rccognjzed
as expenses in the year ir which they incurred unless the activities are necessary to prepare lhe
qualirying assets for its intc.ded use are in progress. Expenses capitalized also inclrde applicable
borrorving cost considering the requiremeDt oflAS 23: "Borrowing Costs".
3.02.3 Subseqnent Costs and Mainlenance Activities:

The company recognizes in the canyirg amount ofan ilem of propcl1y, plant and equipment drc cost
of replacing pan of such an item \\'hen the cosl is incurred. it is probable that the fulure economic
benefits embodied \\ith the jtem will flo\\ to the company and the cost ofthc item can be Dreasured
reliably. Expenditure incuned aller the assets have bccn put into operatioD, such as repair and
maintenance is nonnally charged off as revenue oxpenditure in the year in which it is incurred. In
situalion where it can be clearly dcmonstrated that the expenditurc has resulted in an iDcrease in lhc
future economic bencfit expected to be obtained tiom the use of fixed assels. the expenditure is
capitalized as an additional cost of the assets. AII othcr costs are charged to the profit and loss
account as expenses if inourred. AII up-gradation/enhancement are generall,v charged off as reYenue
cxpendhure unless they bring similar signifioant additional bencflts.
3,02,,1 Softllare:
Soft\lare is generally charged offas revenue expenditure. Customized softNare lhat is intcgral to the
functionaliB ot' the related equipment is capitalized as part ot that equipment. Which is locall)
developed cuslomizcd software with the technical assistaDt of Welech lndia Limited.
3.02.5 Disposal of Fixtd Assetsl

On Disposal of I"ixed Assets, thc cost and accunrulated depreciation are eliminated and gain or loss
on such disposal is reflected in the Statement of Comprehensive Income, \lhich is detennined with
referencc to the net hook value ofthe asscts and net sales proceeds.
3.02.6 Depreciation of Fix€d Assefs:
Deprecialion is calculated using 'Reducing Balance Method' over lhe estimatcd usctul life ol each
item ofproped.v, planl and equipments. Depreciation has been charged on addition ofproperry, plant
and equipments during ihe period when the assets are ready lor use. Depreciation has been ch
on disposal ofassets as per IAS-16 Para-55. Rate(s) ofdepreciation of assets considering thei
ri, e, are :. lol ou.: Ih"
t4 \\a...
Categon Rrtc
Land & Land De\elopment 0%
Building 10%
Plant & Machinery 15%
Ceneralor 154/o
Boiler
Washing Machine 15%
Weight Nlnchine r5%
Cleaning Machire 15%
l'ransfonner 10%
Furniture & Irixtlrre & Decoration t0%
Offlce Equipmenls 1Ao/o
Cooker;cs 20%
Air Compressor 10%
Water & Gas lnstallation 10%
Computer & Accessories 20%
Telephone & PABx 10%
Electdc Installation l0%
Fire Fighting'r 10%
C.C. Camem 20%
Mok) Vehiclcs t5%
3.02.7 Intangible assets and amortizatiofl:

lnlangible assets comp.ise the value of computer soft$'are. lnlangible asscts acquired separately are
measured oD initial rccognition at cost and are carricd at cost less amortization and impaiment
losses if any. Amo(ization is calculated using the Reduc;ng Balance Method at 15% to write-offthe
cost of intangible assets.
3.02,8 Revaluation ofProperty, Plant and Equipment:

The company revalucd its Propefty, PlaDt and Equipment (Land, Building and Plant Machineries) in
the ycar ended 30 June 2018 by Ata Khan & Co., Chartered Accountants dated on 03 August 2018
to reflect the fair value (prevailing market price) oftlrosc classes ofasscls. "They applied "Current
Cost Method" to determine tlre fair value of those assets which are in compliance with IA5-16
"Propeily, Phnt and Equipment". Revaluation Surplus has arisen Tk. 876,932,727 The increase
in the canying amount of revalued assets is recognized in the separate component of equity under
the head "Revaluation Surplui'.
3.03 Valuationoflnventory:
Inventories are canied a1 the lower ol cost and net realizable \alue as prescribed by IAS-2:
"Inventories". Cost is determined on weighted average cost basis. The cost of inventories
comprises ol expenditure incured in the normal course of business in bringing the inventories to
thcir present locatioD ard condition. Net realizablc valuc is bascd on cslimated selling price less any
further costs expected to be incurred to make the sale.
3.04 Finarciillnstrumentsi
A Financial instrument is any contract that gives rise to a financial asset olone entity and a financial
liabiliq or equiR ofanother entity.
t5 ffi
3.0,{,1 Financial Asscts:

Financial asset. of tllc co,npanv inchrde cash and cash cquivalenls. accounts receivable and otllcr
recei\rables.
The company initiall! rccognizes receivable on the date thcy are originated. All other financial
assets are recognized initially on the dale at which the company becomes a party to thc contractual
provisions ofthe transaclion. The company derecognizes a financial assct when, and only when, the
contfactual ights of probabilities of receiving the cash flo*s fron the assel expire ot' it transfer the
riglrts to receive the conlractual cash flows on the financial asset in a transaclion in whlch
substantiall) all rhe risk and re\}ards ofo\\oership ofthe financial assels arc transferred.
3.04.1 (a) Accounts Rcceivable:

Bills receivables arc rccogniTed at cost or nct realizable value fron lhe ordinary course of sales in
th€ market vhicheyer is lower. Bills rcceivables fro]n foreign curenc) transactions are recogrized
into Bangladeshi Taka Lrsirrg exchange rales prcvailing on the closing date of the accounts in
accordance $ith IAS-21: "The Effects of Changes in Forcign Exchange Rates".
3.04.1 (b) Advances, Deposits and Prepayments:

Advances are initiali), measured at cost. Afler iiitial recognition- advances are caffied ai cost less
deductions. adlusrments or charges to other account heads. Deposits are lneasured at payment value.
Prepayments are initially measured al cost. Aller initial recognition. prepaynrents arc caffied at cost
less charges to profit ard loss account.
3.01.1 (c) Cash and Cash Equivalents:

Cash and Cash Equivalents are carried in the Slatement of Financial Position at cost and inolude
cash iD hand and \\,ith banks on current and deposit accounts, rvhich are held and a\'ailable for usc
by thc company *ithout any rcstiction. There is insignificant risk ofchange in value ofthe samc.
3.0:1.2 Financixl Liabilit) :

Financial liabilities arc rccognized initialll on the lmnsaction datc at which thc compan"v becomes a
parry to the contraclual pro|isions of the liability. The cornpany derecognizes a financial liability
when ils conlraclual obligations are discharged olcanceled or etpire.
Financial Iiabilities include payable for expenses, liability for capital expenditure and other cu ent
liabililies.
3.04.2 (a) Accounts Payable:

I-iabilities are recorded al the amount payable for settlement in respect of goods and services
received by the company.
3.05 Impairmcnt:
a) Financial Assots:
Accounts receivable and other receivables are assessed at eacll reporling date to determine whelher
there is arly oblecti\e cvidcncc of impainnent. Financial asscls arc impaired if objective evidence
indicates that a loss event has oocurred after the initinl recognilion of the asset, and that the loss
elenr had a negative effect on lhe estimated future cash flows of that asset. that can be estimated
reliably. Objective e,'idence that fiDancial assets are impaired oan include def'ault or delinquency b)
a debtor, indicatiors that a debtor or issuer will enter bankruptcy, e!c.
hl Non-Financial Acsets:
An asset impairld lvhen ils caraying amouni exceeds its recovemble amount. The company assesses
at each repoiling date \\'hether there is any indication that an asset may be impalred. Il any such
indication exisls, the compan) eslinlales the recoverable amounl of the asset. The recoverable
amount of an asset is the higher of its fair ralue less costs to sell and its value in use. Carqing
amount of the asset is reduced to its recoverable amolrnt by rccognlzing an inpainnent loss if. aDd
only if, the recovcrablc amount of the asset is lcss than its carrying amount. Impairment loss is
recognized imrnedialely in profit or loss, unless the asset is carried at revalued auqut. Any
impainnent Ioss ola rclalucd asset shall be treated as a rcvalLration decrease
fv*\-\
Sl \?
orr"r"
i6 a\,/P
Chartercd Accountants
1.06 Prcvisions:
A provision is recognized in the stalement ol financial position wheD the company has a legal or
constrncli!e obligation as a result ofa past eveni. it is probable that an outflow ofeconomic benefiis
$ill bc rcquired to seltle the obligation and a reliable estimate can be made o[ the amount of the
obligation. Provision is ordinarily measured at the best estimate ollhe expenditurc required to settle
the presenl obligation at the date ofstalement oflinancial position. where the elfect of time valuc ot'
money is material, the amount of provjsion is measured a1 lhe prescnl valuc ofthe expenditures
expected to be required to scttle the obligatioD.
3,07 Taxation:
Income tax expense is recognized in profit and loss account and accounted for in accordance \r'ith
lhe requirements of IAS l2: "Income Taxes"
a) Tax deducted b) the authorized Bank on proceeds realizcd lrom 0l July 2018 to 30 June 20I9
\vas considered as miDimum lax undcr section 82(C).
b) Current Ta\r
As per secliorl 53BBBB ofthe Income'Iax Ordinance 198,1 tax has been deducted al source
lrom expoft proceeds @ 0.65% tiom 01" July, 20 l8 a d the deducted amount is treated as the
Ininimum tax under section 82(C).
c) Deferred Tax:
Deferred tax arises due to temporary diflercncc deductible or taxable for the evenls or
transaction \\hich is recognized in the Stalernent of profit or ]oss and other comprehensir,e
lncome. A temporary difference is thc difference between the tax bases of an asset or liabiliry
and its carrying amount/repoded amounl in the Statement of Financial Position. Deferred tax
assets or liabili|{ is the amounl oI income tax recoverablc or payable io future periods
recognized in lhe cune0t pcriod. Therefore, delerred tax policy has been adopled by tlre
management during the period.
3.08 Borrorling Costs:

This has beeD dealt with the requirement ofIAS 23: "Borro\viDg Costs".
Borrowing oosts relaling in commercial operation are recognized as expenses in the year
10 projects
in $lrich thcy are incurred. In respect of pro_jects lhat have not yet corllmenced commercial
production. borrowing costs arc dcbited to capital work in progress.
3.09 fmployeeBcnefits:
The cornpany takiig initiativc to maintain contribution plan for its eiigible permanent e:nployees in
compliance \\,ith the provisions oflAS l9: "Bmployee Benefits".
As per Section 212 of Bangladesh Labor Act 2006. which states that in sub-section 2 "Thc
Go\'ernment may. by notification in the official Gazette apply this chapter to such other companies
as it may specify thereiri " And in sub-seclion 3 "Not$ ith stand in g anything ooDtained in sub-section
(1) and (2), in industfial sector which is hundred percent export oricntcd or which is hundred percent
foreign in\,es1ed, the go\emmenL may, by rules, for the beneficiaries working in such sectors, from
sector-wise a central t'und consolidating buyers and owners. tund management board, detemine
amount ofdonetion aod procedure lor recovery thereol adopt rules lor Lrsing money ofthat fund and
relevant other necessary rules. Pro\'ided that, such board, may very prior approval of go,rernment
adopt regulations lbr tho plrrpose ofthis scction."
3.10 Statenlent ofCash Flowsr

The Statelnent ofCash Irlow has been preparcd in accordance wilh the requirenrents of IAS 7:
'rstatement of Cash Flo\r's". The cash generated from operating activities has been reported using
the Direct Method as prescribed by the Securities and Exchange Rules 198? and as thc bcnchmark
lre:rlrre'l or lAc '. ul-ereb\ rnaior cllcce. ol Jross ca.h reLeipt\ ''r,d tsro\\ cdr ll
operating acti\ tles rre di<loseLl
11
3.11 Earnings pcr Share ([PS):

Tlre Company calculates Eamings per Share (EPS) in accordancc \\'ith IAS_l3i "Earnings per
Share" wh;ch has bccr sho*n at dre boltom ot'the Statement ofComprehensive Income.
Basic Earnings (Numerator):

This represents earnings lor the year attributable to ordinary sharcholders. As there was no
preference dividend. minorily inicrest or extra ordinar) itcms, the net profit after tax for the period
has been considercd as 1irlly atlribulablc to the ordinan shareholders
Wcighted Averago Number ofOrdinary Shares outstanding during the period (Denominator):
This represents thc number of ordinary shares outstanding at thc beginning of the period plus the
number of ordinar) shares isslred during the pcriod multiplied by a time-weighting factor is the
number ofdays the specific shares are oulstanding as a proportion ofthe total number of days in thc
year.
3.12 ForeignCurrencyTransactions:
Thc financial reoords of thc company are naintaincd and the financial statements are stated in
Bangladeshi Taka. Foreign currency transactioDs zlre recorded at thc applicable rates of exchange
ruling at the tranlaction datc.
The rnajor actir,irics ol the company \terc carried out in USD bu1 recordcd and reported in
Bangladesh Taka as this is the rcporting curreDcy.
Thc impoft acti,'ities $ere rot subject to any exchangc fluctuation. Only the unencumbered portions
of export bills wcre subject to erchange fluctuation which was deah tlrrough Statement of
Comprellensive Income olthe sntity. Foreign currency tmnsaction is rccorded at the applicable rates
of e\change ruling at the transaction da1e.
Among ihe moneta$ assets and Iiabilities denominated in foreign currencies at the reporting datc.
oDI] rhe export retention quoia accounts $crc translated at the applicable rates ofexchange ruling at
that date. Exchangc dillcrence on such lranslation was alslr dcalt through the StatemeDt of
Comprehensi!c Income.
'lhe nonctal,-! assets and liabilities. ifany, denominated in lbreign currencies at the reporting daie
are translated a1 rhe applicable rates ol excharges ruliig at that date. Exchange differences are
charged oft' as revenue expenditure / gain in compliance with the provisions ol'lAS 21: The Etfects
ofchanges in Foreign Lxchangc Rates.
3.13 SegmentReporting:
No segmenl repofiing is applicable for the company as rcquired by "IFRS - 8: "Opcrating
Segments" as the company operates in a single indusrry segnlent and rvithin as geographical
segment.
3.11 Er ent\ afier lhe Rcpurtirg Pcriod:

In compliance \\,ith thc rcquirements oflAS 10: "Events after the Reporting Period". provided
additiorlal infonnation about fhe company\ position at the statement ot' financial position date are
reflecled in the financial staicments and events after the statement ollinaDcial position date that are
not adjusiing evenls are disclosed in thc notes when matcrial.
J.l5 Related Party Disclosures:

lhe compan) cerried out a number of transactions $i1h relaled parlies in lhe nomal coursc of
bosiness and on arms' length basis. fhe information as required by IAS 2,{: "Related Part,
Disclosures" has been disclosed in a separate note to thc accounts.
3,16 Comparative information and General:

Comparative figurcs have been rearranged wherever considered necessary 1()
coDrparabilitt lvith the curent period \rithout causing an) impact on the profit and
and liabilily as reported in the flnancial statement.
l8
30 June 2019 30 June 2018
Taka Taka
4.00 Propcrtl-, Plrnt & Equipment
At Cost/Valuation
Opening Balance 2.760.291,619 1,579,007.572
Add: Current year Revaluation Sulplus 8 7 6,932,12',7
Addition dxring the period 304,3s4,320
2,760,291,619 2,7 60.294,619
Accumulated Depreciation
opening Balance 915,4.:12,416 823,4,15.969
Charged during the p€rlod 192,641,386 91.996,44',7
1,108,089,802 9rs,442,116
Written Down Value 1.652.20,1.817 1.8,14.852.202
Thc company revalued its Propeft)-, Plant and Equipment (Land. Building and Planl Machineries) in the year
ended 30 JlLne 2018 b) Ata Khan & Co., Cha ered Accountants d ated on 03 August 201 8 to reflect the fair
value (prevailing marke! price) ofthose classes ofassets. "They applied 'Current Cost Method" lo detemire
the fair value of those assets which are in compliance wilh IA5-16 Propedy. Plant and Equipment".
Revaluation Surplus has arisen Tk. E76.912,727.
The details oflhe abo!e ls givcn ii Annexure-1.
5.00 htangiblc Asscts
Opening Baiance 21.59r,000 23,591.000

Addition du ng the period
23,591,000 23,591,000
Accumulat€d Amortization
openirg Balance 18.416,177 t'7,542,9',73
Charged during the period 1',l6,223 9]],204
19!r 92,101 18.416,t77
Written Down Valtre __--___{J9!i9e ____5,1-Z!,!2L
The dctajls ollhc abov. is gilcn in Annexu.e"l
6.00 Capital Works-in-Progress

Buildinss
Securit-v Building
Drain Llne
Planl & Machin€ri€s

Spare Pafts
7_OO Short-Term InYestment in FDR

FDR No.
4122020500005 Cily Bank Ltd. 1,478,086 1,4t4,437
4122020502046 City Bank Ltd. r,178,086 t,4t4,437
:1122020486005 Cit]-Bank Ltd. 588,684 565,7',71
485200539800r Cit]-Bank Ltd. 3I4,568 301.022
485 75306001 Cii-\Bank Ltd. 283.317 271.118
4851175306002 Cily Bank Ltd. 399,668 382,458
________!;n4!e __-!;12243
The abovc FDR arc kcpt as licn with Cit) Bank Ltd.
Raw Nlarc als 20.01 368814,785 274.852,685

Packing Malcrials 20.02 68,718.524 51.425 142
20.00 4.214,547 ,1,15,1,876
Iinished Goods 20.00 72,548.75,1 68,545,2,18
____11{i26,!.!0 _____!9!pllp5l
30 June 2019 30 Jrne 2018

Taka Taka
Trade Receivable ( Foreign)
271,s36,068
Lidt 235,487,548 254,875,480
Goldcn Tuch 168,547,878
Cenlex 215l:lI 25i
619,716,679 s26,111,s18
Exchange Gain/(Loss) 8.409.267 8.466.',763
____-62!J!5J4!_ _ll4dl!J-U
9.01 ExchangeGain/(Loss)
Rereivrhl€ In USD Rate Receivable In Receivable Itr
Current Market Rate s7,434,153 84.50 628,185,946 5l4 878,1 L 1
Average Rate $7,43,1,153 83.37 61.9 .1',7 6,679 526.41r.5,18

Exchange Gaini(l-oss) 8,409,267 8,466,763
Bills receivable have been stated at their nominal value. Bills receivable arc accrued in the ordinary
course of business. All receivables have been considered as good and realizable. Trade Receivable
is a monetary items. so exchange gain or loss has been recognized to profit or loss in accordance
lvith IAS 21. Para-28.
Receivable Agcirrg repofi is given belo$:
Partv Not more than Above 90 davs Total

Wal-Man
Lidl 235,,187,548 235,,18?,548
Golden Tuch I68.547.878 168.547.878
Tolal: 404,035,426 40,{,035,,126
10.00 Tradc Rccci\ rble from Local Companies

Dragon Sweater (BD.) I-td. i77,9?t.831 280,233,825
CD Acrylic Bangladesh l.td. 82.11r,601 52,053,691
Imperial Sweater (BD ) I-td. 210.5:17.513 201.454.208
690.632.945 533,141,724
'fhis is considercd as fully secured and guaranteed payment by export letter of credit opening bank
against export order and is considered good & realizable within one year as per the terms of export
letter of credit. The classification of receivables as required by the Schedule XI of the Companies
AcL l9g4 irc givcn bclo\\':
st. Particulars Amount in Taki

Rcccivablcs considcrcd good in respect ofwhich the
I 628,185,946 514.878.3 r 1
comnanv is fullv secured
Receivables due by directors or other officers &
I] 6q0.612,o45 533,741,124
stalls
Totrl: 1.318.818.891 !.068.620.034
A schedule ofbills receivable is given in Annexure-2 & 3.
20
30 June 2019 30 June 2018

Taka Trka
11.00 Advance, Dcposit & Pre-payment
1t 0l ,14,735,339 30,867,941
r 1.02 q50 000 950.000
Deposiis
____15,6!5J3e 3l 8r7.q43
11.01 Advancc
Advance lncome Tax r 1.01A 10,841,,125 18,310,582
Advance Salary to Staff 7.548,,150 6,854,200
Ad!ance against Expenses r l.01B 5.09,1,894 1,454,591
Advance lor Fire Fightirg's t,24u.570 1.248.570
,{4,735,339 30,867,943
11.01A Advance Income Tax

Advance Tax under Section 5l-BBBB 30,719,,135 18,227,901
Advance Tax fl on SND 40,696 20,851
Advance Tax fiom FDR 83.294 61,831
30,843,425 18,310,582
11.01B Advance sgainst Ixpenses

Advance agaiust Facrcr)- Supply & Chemicals r,245.800 895 7fi0
Advance ageins! Repair & Mainlenance ofMachineries 745,870 651,420
Advance against License Rene!!al s.17,855 654,820
AdYance against Commercial Work 854,71,{ 754,E7s
Advance against [,ab Test r,345.875 t,245.816
Advance against Compliance Audit l:ee 354.780
s.0s,t.891 ,1,15,{,591
11.02 Deposits
Deposit !rith PDB 250,000 250,000
Deposit lvith DESA 150.000 150,000
Deposit \\,ith T&T 50,000 s0,000
Deposit \\'ilh CDBL 500.000 500.000
950.000 950,000
12.00 Cash & Cash Equivalents

Cash in Hand 9,15,87? 1,258,763
Cash at Bank I4t 870 857 140,735,310
____14491-0fl.1 ____u.!,29{13
Cash in hand represent a substantial amount as all most ofall the transactions were made in cash.
We could not verified ihe cash in hand at the ended ofthe year as our audit was post dated.
12.01 Cash at Bank

Cash at Bank I43,870 857 140,735,310
143.870 1,10,735,310
Bank Name
The Cit) Bank Ltd. (CD A/c) 6
The Cit] Bank Lld. (IC Aic) 169,507 t67,902
Bank Asia Ltd. (CD A/c) 71.245,805 15.689.542
South Bangla Agricullure Bank 12,151,826 6,1,875,985
National Bank Ltd. I111 I 874
143,8?0,857
Bank balances have been confirmed wilh the bank stateDlents and also reconciled.
21
30.Iune 2019 30 June 2018
Taka Taka
13.00 Share Capital

13.01 Authorized Capital
300,000,000 Ordinarl Shares ofTk I0 each 3,000,000,000 1,500,000.000
13,02 Issued, Subscribed and Paid up Capital

158,700.000 Ordinary Sharcs ofTk I0 each lull) paid up 1,587,000,000 1,322,500.000
The shareholding position ofthe company are as undcrl
Name ofShareholders No. of Shares {%)

Mostafa Colam Quddus 3,548,035 2.236% 35,480,350 29,566,960
Mostaf'a Quamrus Sobhan 26.061.822 16.426% 260.618.220 292,231,850
Tasnia Quamrun Anika 3,195,386 2.0 r 3% I 1.951.860 26,628,220
Shafia Sobhan Chowdhury 3,433,,136 2.163% 14,314.160 28,611,970
Fazlutun Nessa 3.133,,136 2.1630/0 r4,314.160 28.611.970
Fauzia Quamrun Tania 11,17i,608 1.167% I r3.736.080 94,780,070
CD Spirning Mills Limited ll, l5 8 0.021% 33 1,5 80 276,320
CD Acrylic Bangladcsh Ltd. 11,15 8 0.021% 331.580 276,320
Muzaffar Ahmcd 0.000% 661,250
Mrs Sadia Akhter 200,000 0.1260/0 2.000.000 2,000,000
Mrs Nasima Ferdous 200,000 0.126% 2.000,000 2,000,000
A. S. Shahudullluquc Bulbul 200.000 0.126% 2,000.000 2,000,000
'l'anzila Irerdous 200,000 0.126% 1,000.000 2.000.000
Mohammad Zahir i20,000 0.016% 1,200,000 1,150,000
Zaed Bin 7.ahif I10,000 0.069% 1.100,000 1,000,000
Fahmida Kamal 0.000% 1,000,000
IPE Capital Limired 69.000 0.043% 590 000 575,000
I_leritagc Capilal Managcmenl Limitei 0.000% 575.000
Pandemic liisheries LiDriled 0.000% 20,000,000
Pandemic Trade lnlernational 161,300 0.142% 1.613.000 20,000,000
Dr. Tamanna Nlostailz 0.000% 20,000,000
A. K. M. Sajedur Rahman 0.000% 20,000.000
NRB EquiO Management I-imited :,:so 0.001% u r.ioo r 0,000,000
Mohammed Ashraful Huque 200,000 0.126% 2,000.000 2,000,000
M. Shefaque Ahmed r,100.000 0.693% l r,000.000 10,000,000
Molla Abdul Hakim 0.000% 1,000,000
Farid Ahmed 0.000% r,000.000
Mohammad Ziaul Ilossain 0.000"/; 1,000,000
A. K. Mosrafizur liahnlan 0.000"2 20,000,000
Dragon 3,240,000 2.0120 32.400,;00 27.000,000
Sonali Lile 2,082,s00 1.3120h 20,825,000 20,200,000
Md. Arifur 0.000% 800,000
N,IR,S.M, 10.000 0.006% t00.000 700,000
Md 0.000% 400,000
Md. Raihan 15,870 0.010% r s8,;00
0.000% 670,000
Md. Al-Anin 0.000% 1,330,000
Hoda Ali 1.000,000 0.630% t0,000,000 10,000,000
All Remaining 670.941 62.17 5% 986.709..110 622,322,820
700 100.00% r,s87,000,000 1,322,500,000
22
14.00 Revaluation Resene

The compan), revalued its Property. Plant and Equipmenl (Land. Building and Plant Machireries) in
the year ended 30 June 20l8 by Ata Khan & Co., Chartered Accountants dated on 03 Augusl 2018 to
reflect thc lair value (prevailing market price) ofthose classes ofassets. "They applied "Cunent Cost
Method" to dctermine the fair valuc of those assets \lhich are in compliance with IAS-16 Propcrty,
Plant and Equipment". Revajuation Sutplus has arisen Tk. 876,932,727.
Building 85,828,679
Plant & lvlachinel--\ 114,860,596
Generalor 2,00/,253
Boiler 2.07 t,62t
Washing Machine 92,130
Cleaning Machine 1,411,099
'lransformer
Alr Compressor
Water & Gas Inslallation 5,14,563
Electric Installation 849,856
Motor Vehicles 615,370
Adjustment
Opening Addition during the Adjustment T,r
of Deterrcd
Balance year
Erpenses
900,290,242 04,428,016 795,862,165 900,290,242
15.00 Long Term Loan

Opening Balauce 368.424,833 389,0s1,860
Addi Interest during the period 14,r07.810 38,312,971
Lessr Paid during the period (73,s00,000) (59,000,000)
Closing Balance 329,032,643 368,424,833
Current Poftion (29,912,058.) (13,493,167)
Closing Balance 299.120,s84 334.931,667
Note: Long'lerm Loan amount to be paid in 11 (Eleven) years by 22 (Twenqv fwo) half yearly
installments. Nlorlgaged 64 dccimals land along with all structurcs constructed or io be constructed
thereon. siruated wilhin Disrrict-Comilla. PS & SR. Office- Chor,'ddagram under Comilla
Collectorate, Touzi r,\o. 252, J.LNo. 30, Mouza- Chandul.
)1
30 Jun€ 2019 30 June 2018
16.00 Bills Payable

M/S. Acrive Ziper 542.817 1,,{58,782
M/S. Labib Dyeing 1,245,758 2,658,540
N4/S. Nice Cotton 62s,481
M/S. Rcdwan packaging 214.185 875,482
M/S. S.B.t.rade 954.854 245.815
M/S. Zhansiiagar t.478.785
s,062,486 8,136,415
Exchangc (Cain)/Loss 79.908 137,403
___lJ4al2l ____-021i{t-E_
16.01 Exchange (Gain)/Loss

Payablc ln I USDRate I Pa)xlrleln F,,,bl" I',
USD I I BDT BDT
Current Market Rate $60,857 84.5 0 5, t42.394 8,273,818
Average Rate $60.857 83 rg 5,062,486 8,136,,+15
Exchange (Cain)/Loss 79,908 137,403
Bills Payable is a nooctary items, so cxchange gain or Ioss has been recognized to profit or loss in
accordance *,ith TAS-21. Para-28.
A schedule of bills payablcs is given in Annexurc-4.
Payable agcing rcpod is given belo$:

Parn Name Total
than 90 days
M/S. Active Ziper 542.811 542 811
M/S. Labib Dyeing 1,245,758
M/S. Nice Cotton 625,48',7 62s,487
M/S. Redrvan packaging 2t4,785 214,785
M/S. S.B.Tradc 954,85,1 95,{.854
M/S. Zhangjiagan 1,478,785 1,4?8,78s
Totalr 5,062,486 5,062,,186
17.00 Liabilities for Expenses

Audit fee 12s,000 125.000
Salarics, Wages & Relnuneration ,1.208,754 6.312.450
Fuel, Water aDd Power 2,985,475 3,334,733
Renl & Others 28s,000 285,000
Worker's Profit Paticipation Fund (WPPF) 15.098-0r3 16,920,000
_22Ju.262 ___21,!lzJ!3
18,00 Provision for IncorneTax

Opening Balance 90,958,212 45,429,983
Addr Addirion during the period (Anncx-6) 52,363,961
113,322,173 90,958,2r2
Less: Adiustment during the period
The details ofthe above is given in Annexure-6

__!!e.yL
24
Shlraz Khan Basak & Co.
Julv'18 to July'r7 to
,Iune'19 Taka .Iune'18 Takr
19.00 Revenue
t,92I,774,538 1 .687 .646.647
1,')21,774,518 1,687,646,641
20.00 Cost of Goods Sold

Raw Materials Consumed 20.01 18i,290,784 687,959,780
Packing Materials Consumcd 20.02 311,945,112 286,519,939
1,105,235,956 914,479,719
Addi \\ ork in Process'Opening 8.00 4,151.876 I 875 842
r,r09,390,832 978,355,561
Less: Work in Process-Closing 8.00 1.214.54',7 4,154.8',76
Total Consumption 1,105,176,285 97:t,200,685
Add: Manufacturing Ovcrhead 20.03 162.028,233 145,436,738
Addi Depreciation (Annexure-l) l'13,382,641 82,796,802
Cost ofProduction 1,,140,587,165 1,202,134,225
Add: Finished Goods-Opening 8.00 68,545,248 63,929,255
1,509,132,,113 1,266,363,480
Lessr Finished Coods - Closing 8.00 72.548,754 68,545,248
1,136,583,659 1,197,818,232
20.01 Rarv Materials Consum€d
opening Slock 8.00 274,852,685 230,355,368
Addr Purchase during the period 881,252,88,1 732,157,091
Raw Materials Available for Produclioll 1,156,105,569 962,812,46s
Less: Closing Stock 8.00 368.8r,1,785 21 4,852.,685
781,29t,784 687,959,780
20.02 Packing Materials Consumed
Opening Slock 8.00 51,,125.142 1,".11"/,213
Add: Purchase during the period 335,238,554 290,767,808
Materials Available for Paoking 386,663,696 337,945,081
Less: Closing Stook 8.00 68,718.521 51,425.142
311,945,112 286,519,939
20.03 Manufacturing Overhead
Salary & Wages 90,,105.978 78.109.562
Fucl Watcr & Powcr 40,914,630 35.143.065
Factory Lease Rent r.758.000 1,500,000
Lab test Charges 5,987.044 s,916,924
Store & Sparcs Expcnscs t,636,861 3,8I4,1,11
Repairs & Maiffenance t.1t5,886 t,i82,571
Chemical Expenses 5,140,127 5,044,6 r 5
Sccurit_v SeNice Charges 2.352.000 2.352,000
Uniforn & Liveries 761,833 696,239
Medical Expelses 509,I90 ,187,538
Carriage InNard 1.151,712 4,017,594
Garments PriDting & Washing Expenses 682,1s4
Import Material Ulilizalion Declaration E\penses 728,068 851,186
C & F Charges 1,06i,61l 1.483,509
Entertainmcnt 909.581 1,388,927
Other O!erh.rd 229,2',16 l46,sr3
162,028,213
Shiraz Khan Basak & co.
July'18 to July'17 to
.I'rne'19 Taka Jun€'18 Taka
21.00 OperatingErpenses
Distribution & Selling 21.0t 51,817,442
Administrative Expenses 21.02 99,597,859 14 542 999
___.!5-1L!5J9-r ___l-q4d{2,216_
21.01 Distribution & Selling

Salaries & Welfare 8,664,529 6,155,041
B/L, Air Freight Charges s,3 i 5,395 4.367,029
Advertising Expcnses 161,,187 441.520
lranspiralo'r a"d H. rJl rp f\n.n.e. 4.716,515 3
"281.142
Repair & N{airrlcnance 2,918..152 r.814.945
Sales Promotion Erpenscs 6.i l:1,900 5,224,25 |
Iiaveling Expenses 4,',l94.120

Courier & Handling Charges 3.901,954 2,467,058
Buyers Ente{ainnlent j,969,576 3,266,238
L/C Charges & Comrrission 3.552,102 2,461,022
Misc.Irxpenscs 2.61 1,91 I
Exchange Gain,'Loss (7,155,808)

Dcpreciation (Annexure- I ) 1.fl52.o48 r.8:i9.929
51,817,.142 29,989,211
21.02 AdministrativcErpenses
Salary & AIlor._arrccs 50,0t0.145 36,1'14.681
Remuneration 1,224,000 1.221.000
Iloard Meeting Fcc 2l 02A 240.000 320,000
Postage & Telecommunication 993,228 1,071,412
Repair & Maintcnance 1.75t,1)2
Vehicle E\penses /GSP 2.630,935 1.655,323
Electricit-\, Fuel & lb\\'er s rJr r0l 3,889,089
Prinling & Stalioncr) 1.188.t3 r r.487.028
Donation & Olhers r.553,621 2,087,062
Enterlail]ment 611.466 s60,295
Insurance r.970,920 1,970.920
Commercial Audit Fees 825,000 135,000
Audit Fec r 25.000 125,000
Office Rent 1.920,000 r.920.000
Conveyance 2.616.132 1.629,366
Renewal& License Fee 2.415,05,1 3,25 r,966
Lcgal & Prolissional Charges 3,27 4,42t 3,062,941
Security Ser\ ice Charges 1,500,000 1,140,000
BTN{A Expenses 496,9s1 455,46,1
Dcprcciation (Annexure-l) 15,'11 1,791 7,359,716
Amodizdtiolr (Annexure-1) 7',762)1 913,204
99 597,859 74,552,999
21.02A Board l'lccting Fec

Mr. Mostala Quam|us Sobhan Chairman 30,000 40,000
Mr. Mostalo Colam Quddus Managing Director 30,000 40,000
Mrs.'lasnie Quamrun Anika Director 30,000 ,10,000
Mrs. Shafia Sobhan Chowdhury Dircctor 30,000 40,000
Mrs. Fazlutun Nessa Director i0.000 40,000
Mrs. Fauzia Quamrun Tani Director 30,000 ,10,000
A. M. Saidur Ralrmar Independent Director '10 000 40,000
M. Jinnat Ali Mian lndependent Director 30.000 40.000
26 2,10,000 320,000
E
Shiraz Khan Basak & co.
Cha rte r-ad Acco u nta nts
Julv'18 to July'17 to
Junerl9 Taka June'18 Taka
22.00 FinancialExpcnses
Bank Charpe & Commission 5,095 5,854
Interest on Long Term [,oan 34.t07.810 38,3',72,973
34.112.90s ____l!,11!,!27
23.00 Non-Opcrating Incomc

FDR Interest 193, r 66 209,014
SND lnterest Receive 321,926 161,604
Exchange Cai (Loss) 8,981,847
Scrap Sales 7.899.085 8.042.073
_____u_J25p4
24.00 Basic Earnings Per Share (BEPS) -8Arr.611

(a) Profit Afler Tax (Tk.) 261,685,679 296,912,011
(b) Nunbcr ol Ordinart Shares outstanding duringthe period 158,700,000 158.700.000
1.65 1.87
25.00 (a) Nct Assct Valu€ (NAD Per Share

Share Capital 1,587,000,000 1,322,500,000
Retained Earnings '/16.04'7.364 680,558,609
Reserve Ior llcvaluation 795,862,t66 900,290,242
Net Assct Value (NAV) 3,098,909,529 2,903,348,8s1
Number ol Lrr.'in-r) sl,a'e' 1s8,700,000 r s8,700,000
18.29
26,00 Nel Operaiirg Cash Flo\v Per Sharc CNOCFPS)

Nei Operrii rg Cash FIolvs -19-5I
108,017,926 163,005,27 7
Number oi Ordinary Sharcs Outstanding I58,700,000 I58,700,000

Net Openlirg Cash Flows Per Share 1.03
27.00 Events Aller Reporting Period (IAS-10) -___0:6r

There was fo signifioant event that has been occuned between Balance Sheet date and the date on
which thc financial statement are authorized fbr issue.
21
chartered Accountants
:8.00 Oth.r Commihnents, Contingencie5 !nd Relev.nt Inlornation
28.01 Quantity ryise schedul..s rcquired und€r Para l, Schedule XI, Pfut ll ofth. Complnies Act, 199.1
Qumlity wise schedules of sals. n\ material consumed and opening and closing nock .f nnished Soods relatirg lo the
llnancial staremints for the ).ar eided 30 Junc 2019 as requned unde.l,ara 3. Schedule XI. Pan II ofthe Companies Act 199,r
are gircn bclolr:
0l-nr-2018 to 30 06 2019 0l-07-20ti to 30-06 2018
lxport Sales 6,107.658 1.92r.174.518 4.718,710 1,687,646.6117
6.107,658 r,12r,774,538 4,7t8,7t0 1,687,6d6,6.{7
(b) Rr$ Materisls Consu m ed in Qu.ititi.s (Lb,

lll lune 2019 I .10 June 2018
T^k, I Tak,
1.002.458 916.251
'1-66\.29'1 5,804,013
Ra\r Material a!ailablcforconsunrprion 8,661,7s5 6,710,261
r,r 24.5 r4 1.002..15E
Ra* NlareialConnrncd 7,5.19,24r 5.?37,806
(c) Particul.ru in respect olOp€ning Stock, Sales.nd Closing Stock ofEinish Goods
('lu\ints SIurk Sal.s
Quantitl (in Quantii (in Quantity (in

(in Taka) (in Taka)
July-18 to Jun. 19 216.915 68,545.248 215.t16 12,5,18.75,1 !..)2t771,5r8

200..r0-< bt,.)2r 255 2tr.at5 68 54t 218 r." t8.- l0 r.r8- 4.16 d.1r
(d) Prrti.ulas in R.spcct olOpcning Stock.nd Closing Stockollnrentories
Quantiiy Quantity
(in Tak.) (in T.ka)
1.002.,158 1. r24.514 368.81.1.78i
r6..1E2.417 5 t.J25. t42 20.887.089 68.718.52.1
15.r,8-o 2t,rl8 .1,2D !l?
216.915 68.545,248 235,548 72.5r18.754
Ihfornalion as p.r rcquiremort ofPar. 8, Sch.dule XI, Part II. ofThe Cofrpanis Act, 1994
Dlsdosure und{ Para 8, Schcd!le XI- Pat II ollhe Conrpaiies Act. 199{ arc.s lndcr:
881.2i2.8E.{ 88 t,152.88.1 "8",2r(r,-8r

A.cessories & f[ .! lli.2t8 ti4 335,238.551 317.945.172 9591
r,216,.191,.138 1,216,{91,,118 1,r05,235.q56
28
't
Shiraz Khan Basak B Co.
28.03 Number otEmployecs
[mp]o],ee Position rs a130 June 2019
Office Staff Total
Salary Range Hcad Office Employce
5,300
Above 5,300 r08 45 362 i15
l0,t 162
28.0:l CrDacity Utilization

Details ofCapacily has given below:
FullCaprcitl Installcd
6.918"000 pcs pcr year o,q18,000 6,107,658 88%

6,570,000 lbs per year 6,570,000 6,0r4,875 92v"
Spjrmirs
28.05 Capital trxpcnditure Commitment
2019_
28.06 DirectorJ Interest in Contrach with the Company

Therc was no rransaction resutring in DirectorJ intcrcst with the Compan)r and no leasing facilities have beeD made available to Lhe Directors.
28.07 For€ign Remittances

No remiftances was made h foreign currcncy on account ofdividend, royalry. t€chnical expets, prolessional advinn lccs" interest, etc.
28.08 Rclated prrtJ disclosures

i) Related P,riY Transactions
paties, nalure ofthese transactions and their total valuc have been sel out:
a) Company under common directorship
Dr. or Addition d uring Transaction Value in Taka
Cr. Rclation shiD 0I-07-2018 during the year 30 Jun€ 2019
x
6r\> Dragon Sseater (BD) Ltd.
Dr. 280,23t,825 12,1,875,489 27 Bt,..l8l 27,135..183 177,qr1.831
a
! ts/".,
X4tr;tP;/-/
LD Acrj lir (sD) Lrd. l)r 52,051,691 r45.,187,542 115,129,63) I t5 42q,6t2 82, t l 1,601 Chuqe/ LCl
Imperial Sweater (BD.) Ltd. Dr. 20t,451 208 85.457,452 56,364,147 56,364"147 230.5,17,5t1
533,141,721 355.820,483 lq8!.)2r)!262 19a-929.262 6eu!632,945

29
Nrmc of 1lr, l'1r-tY Dr. NEture of Nature of Transactions Outstanding as

Transaclions Rclation ship during the Year at 30 June 2019
Common
Dragon Sweater llD. Ltd. alr Olfice Rent l,o2lr.o00 160.000
Management
Total: t,q20,0[0 I60,000
No provision lor bad debts \las made for related party transactions since fie lransaction are made
agaiisl contracr rnd are regular or realised lully in subsequent )ears
b) Dir€(tors' l'L,rrunernlron &F

Name ofthc I r{v N:rture of Nature of Transactions Outstanding as
Transactions Relationship during the Year at 30 th June
2019
Mostafa Quamft s Sobhan Remunemtion Chairnran 270.000 20,000
Mostrfa Gola.r ,)r ddus RemuneratioD. Managing Director 294,000 22,000

Fees and & I)irector
Factory Rent
Fauzia Quafr rnia Remunemlion Director 750.00t) 60 000
rOneration)
Iiazlutun Nessl D 10.000
Tasnia Quanlrtl 'nika D 30.000
Shafia Sobhan (l rowdhur) Fees D 30,000
A. M.Saidur Rl,n I-ees Independent 10,000
Director
M. Jinnal Ali : .r Independent 30,000
Director
TotaI 1,,161,000 102.000
ii) Particulxrs I llirectors ofDrrgon Swearer & Spinning Ltd. as at 30 June 2019
Name ofl BOD ofDragon S$eater & Entiti€s lvh€rc they have interests
Mostala Quanr Chairrnan Rupr nsurance Company Ltd.
Mostala Golr' ddus Managing Director & Director Rupa nsurance company L1d.
Fazlutun N,rs! t) Rupal nsurance Company I-td.
Fauzia Qua r, D Rupa nsurance Company L1d.
J a"r ir Quir .nika D Sonali l.ife Insurance Compan), L1d
Shafia Sobl , .rdhu D Rupali ln \u rr nce Cornpan\ LId.
30
ihiraz Khan Basak & Co.
29.00 Disclosure as per Requir€ment ofSchedule XI, part II, para 4 ofComplnies act 199:l
Payment to direciors during thc year liom I st Jul] 201 8 to l0 th June 20 19.
Director Remun€ration & Fees

Djrector are entitied to Tk. 5,000 as Board Meeting fec for attending each Board Meeting as per
Articles of Association. Managing Director's monthly rcmuneration is Tk. 22,000 nnd Chaiman's
remuneration is Tk. 20.000.
This is made uo m lollolvs

lvleeilng
Name ofBoard of S:rlary & Factory Amount in
Position Attending
I)irectors Benefits Rent Taka
Mostala Quamrus Sobhan Chailman t0.000 240,000 270.000
Mostafa Colam Ouddus Manegins Drreetor & :i0.000 261.000 1.758.000 2.052.000
Fru,ia Onamflrn Tania Director 30,000 720,000 750,000
Fazlutun Nessa 30.000 10.000
Tasnir Ouemrun Anika Director 30.000 30.000
S}afia Sobhan Choudhun Dircctor 10,000 30.000
A. N{.Saidur Rahman I deDendeni Dircctor :10.000 i0.000
M Jn ar AIi Mian IndeDendent Director 30,000 i0.000
Total 240.000 t.224.i0li r.7s8.000 3.222.n00
The number of Board Meeting end Thc Attendance of Directors During the ),ear lrom I st Jyly 2018 to
30 Junc 2019 i,ere as lollorvs:
Shareholdinss bv Desisnirtion Meeting H€ld

Mostala Ouanrus Sobha Chairman 6 6
Mostafa Colam Ouddus Nlanaqine Dlrector 6 6
Fauzia Quamrun Tania Director 6 6
Director 6 6
Iasnir Quamnrn Anika Dircctor 6 6
Shafia Sobhan Chorvdhun 6 6
A. M. Saidur Rahmao Indeperdent D 6 6
M. Jiinat Ali Mia! IndeDendcnt D rector 6 6
31
shiraz Khan Basak & Co.
29.01 Particulars of Audit Committe€
An audit committee has becn formed by the board ofdircctoN ofthe company in its Board Meeting
held on October 10. 2016. The commiftee constituted with a chairman and two membels. At 30 the
June 2019, the members ofthe commiftee \tere as followsl
Statrs with Educational

Name Position
Committee Oualification
M JinnatAli Mia lndepenent Director Chairman M.A.(Eco)
Managing Director &
Mostafa Golam Quddus Memher M Com
Director
Fauzia Quamrun Tania Director Member M.A.(MatI)
S.M. Khaja Hossan Company Secretary Secretary M. Com
During the year ended June 30, 2019, the followings number of meetings ol the audit commiltee
held rvith the company's Senior Management lo considcr ard review the company's financial
statements and risk management.
Me€tinp Date of meetins

1 28-Oct-l8
2 13-Nov- I 8
25-Feb-l9
4 28-Mav-19
29.02 lncomc Tax Arressment St:rlus
Accountins Year Assessment Yea! Assessment Status

2014-2015 2015-2016 Assessment complete
2.015-20t6 2016-2017 Assessmerlt complete
2016-20t 7 2017-20r 8 Assessment complete
20r 7-2018 2018-2019 .\ssessment complete
32
Shkaz Khan Basak & Co.
July'181o
.I'rne '19 Taka
30.00 Cash Receipts from Customers
Opening Balance ofAccounts Receivable lrom Foreign Customer 9.00 526,411,548
Add: Sales during the period 19.00 1 ,921 ,7 7 L ,538
Add: Opening Receivable fro Inter-Company 9.00 533,'1 41 ,',724
Closing Receivable from Inter-Company 900 (690 ,632,7 45)

Add: Ioreign Cur.ency Loss Gain 8,329,360
Closing Balance ofAccounts Receivable from Foreign Custonrer 9.00 (619 ,77 6,679)
1 ,679,841,1 46
31.00 Ca\h paid lo Supplier. and Others:

Cost ofCoods Sold 20.00 (1,436,583,659)
Add: Clossing lnventories 16.00 (514,296,6r0)
Add: Accounts Pa)able 8.00 (8,136,415)
Less: Opeening Inventories 16.00 398,977,951
Less: Closing Accounts payable 8.00 5,062,486
Oporating Expenses 10.00 ( 151,415,301)
Add: Closing Advance & Prepayments 10.00 (14,84r,9r4)
Addi Oprenig Accruals r 7.00 (10,117,183 )
Less: Opening Advance & Prcpayments r3,507,361
Add: Accruals 7,604,229
Lessi Amortization 7',7 6,223
Add: Paid WPPF (16,920,000)
Less: Depraciation 192,647,386
(1,533,735,446)
32.00 Calculation ofCash Generate from operation

Profit hefore Tax 301,960,66,+
Add. Finance Cost 34,r 12,905
Add. Depreciation 192,647,386
Add. Amortization 1'/6,223
Less; Inventory Increase (1 15,3I8,659)
less: Debtors Increase( Local) (156.891,221)
less: Debiors Increasc( Ioreign) (93,16s,11r)
Less: Trade payable Decrease (3,073,929)
Less : Advance Incrcase (1,334,553)
Less : Liabilities for Expenses Decrease (4,134,920)
Lcss : Investment Income from (SND) (32t,926)
Less : Investment Income from (FDR) ( 193,166)
Cash Generate From Operation 1s4,663,673
33
DRAGON SIVEATER & SPINNING I,IMI'I'I]D
Fixed Assets s.hedulc
As rt l0.Iun€ 21119
hbigibl.^seb: Inhnsilrreind\ a( l* s dtreda.rl l5%sq yd.
)4
Dragon Sweater & Spinning Limited

Schcdule of Trade Recei\able (Forcign)
As at 30.Iune 2019
Anncxure -2
Addition during Rcalized during Balance as on

Particulars thc year 30-06-2019
01-07-2018
Walmart I- Lji6.068 2? 1,536.068
r idi 254,875,4rJ0 187,548 952 506,u16,88.t 235,187,548
Golden Tuch 548,758.784 380,210,906 168,547,878
lvlichcl & Klidet I I 5,,185 754 115,485,754
KSL 25-+,874.587 254,874,587
Centex 230.527.707 1,1.786,451 215.141.253
ABSIX 84.s78,754 84.518,-54
Snh-Totrl s26,,111,5,r8 1,921,11 4,538 1,828,409,407 o19,716,619
Marked ro Market Cxini(Loss) 8,466.763 E,100.267
Totrl s34,878,311 r,921,774,538 r,828,,{09,107 628.185.9,r6
Dragon Swcater & Spinning I-imited

Schednlc ofTrad€ Receivtble from Local Companies
As at 30.lune 2019
Anncxure - 3
(Ahlout1l itt Taka.

Balancc as on Addition during Adjustm€nt Brhnce as on
Prrticulars
01-07-2018 durint' the vear 30-06-2019
Drason Sweeter (BD.) lld. 280,2t3,82s 124,875,489 27,135,483 ..t77.o7i,81I
C D Acn lic (BD) Ltd. 52.053.691 11i.487,542 I r 5.429.632 82,111,601
lmperial S\\eater (BD ) Ltd. 201.454.208 85.157.-152 56.361,147 210.547,513
Total: 533,111.121 3ss.820.483 198,929,262 6q0,632,9,15
The above Inter Company were creatcd to procure mtv matcrials for the cornpany and it is also executing
expofis orders on bchalf ofthe conrpanics under the comrnon o$nership. Since, the transaclions among the
companies are regular in nature and, there[ore. no provision for bad debts is rcquired.
Annexure - 4
Dragon S*eater & Spinning Limited
Schedule of Bills Payable
As at 30th June 2019
Amount il Taka
Balance as on Addition Realized during Balance trs on

Particulars
01-07-2018 during the year the year 30-06-2019
M, S. Dae\ u Baneladcsh 245,787,545 24s.787.5,+5

M/S. Acti\e Ziper 1,458,782 254,875.485 255.79 r,450 542.8 t7
M/S. AIiIEntemrise
I{/S. Evemay Yam 21,548.756 2I ,548,756
M/S.Knit Cotton 248.795,842 24*.7q5,842
M/S.Labib Dyeins 2,658,540 15,t,787,584 I56,200,166 1.245,758
M/S.Libern,Poh Zone I1.25,1.875 13,254,875
N4/S. Marubeni CoDoration 54.754.875 51.754.815
M/S Monica Rutton
M/S Muna Entemri.e
M S. Nahar SDinnine
M/S. Nice Cotlon 2r.s89,654 23,505,418 625,487
M/S. Nova Accessories
M/S. Padma tradins 18,457,878 I8,457,878
M/S. Redwan packaging 875.482 5,248,754 5,909,451 214.185
N{/S. S.B.Trade 24s,875 6,857,547 6.I48, i68 'r54 854
M/S. Zhanqiiasan 356,485 110,s32,643 169.410.343 1,,178,785
Sub-T0talr 8,136,.115 t,216,4S1,438 1,219,565,367 5,062,486
Exchangc Gain/(Loss) r37.403 74,q08
Totrl: 8.273.818 1,216,491,438 1,219,565,367 5,r42,r94
35
DRAGON SWEATER & SPINNING LIIIIITED

Deferred Tax Calculation
As at 30 June 2019
Anlrexure-5
Deferred tax assetyliabiliry recognized in accordance with the provision of IAS's- 12. is arrived as follows:
Particulars Alnount ir BDT

30 June 2019 30 June 2018
9',7 .',7 43 .i',72
Deferred Tar Liabilitv /fAssets) as on 30 June 2019 85.654-197 97.743.372

I crease/fDecr€ase) of Deferred Tax
As !r 30 June 2019
1.400.103.415 71.2 r8.7 ]8 '728.884,67

Fixed Asseh fAt Cost less Accumulated 6 7
Temnoran difference for lease Assets

I5-098-033 098.033
Net temporary diflereoce 671-218.738
ApDlicable Ta\ Rate
Defcrred Tax Liabilitry'(Asset) Clo
Def€rred Tax Liabilitv/(Asset) ODenitr
Mov€ment of Deferred Tax:

Transfer to other Comprehcnsive Income
Dele-red I :rr r ln.omet I \pence. I ran.ler Io P{- (r2,088,975.)
As at 30 June 2018
Particulars Carryins Tax Base TemDbrary
Fixed Assets (At Cost less Accumulated 1 .593 .52',7 .024 '7
62.0',7 8,922 831.448.102
Ternooran difference for lease As\ets
Liabilifl ro EmDlo\ees | 6.920-0001 16.920.000)
Net temDorarv difference 1.576,607,024 162-074.922 814.528.102
ADDIicable Tax Rate 12%
Deferred Tax Liabititv/(Asset) Clositrs 97 -743.312
Opening Defcned Tax Liability/(Asset) 16,028,883
Delcrred Tax during thc yerr-DT Income 481.714.489',|
As at 30 June 2017
Particulars Carn ins Tax Base TeInLorary
Fr\cd Assets (At Cost less Accumulated 661 .209.628 528,990,236 I18.2 r9.192
Temoorarv difference for lease Assets
Liability to EnDlovees (4.645.368) (4.645.368)
Net temnoran' differ€ncc 662-564-260 528.990.236 133.574.023
ADDIicable Ta-x Rate 12%
Deferred Tax Liabilitv/(Asset) 16.028.883
37
Shiraz (han Basak & Co.
Dragon Sweater & Spi[ning Limited

Income Tax Liabilities
As at 30.Iune 2019
Amount in BDT
Particulars 01 July 2018 to 0t July 2017 to
30 Jrne 2019 30 June 2018
Computatioo olTotal lncome
Accountins Profit belore other Income and Tax 284,564,641 329,987.312

Add: Other Inadmissibl€ AlloBances
Accountinq DeDreciation 192.,61',7 .386 91,996,447
Less: It€ms lor SeDarate Consideration
DeDreciation as ocr 3rd Schedule 77,087,403 60.r 08.285
Total Taxrble Income 400,124,623 361!875!47,1
Rate t2% 124/,,
A. TlI on Total Taxable lncome 48.014.955 ,13.425.057

Other Income 1',7.396.024 8.412.691
Ratc )5%
B. Tax from Oth€r Itrcome 4,349,006 2,103,173
Total Tar ExDenses (A+B) 52,363,961 45,528,230
38

Audited Report-2019

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AUDITORS' REPORTS

Dragon Sweater & SPinning Limited

fr-{rq {rd <qr$'qv c$l(

DRAGON SWEATER & SPINNING LIMITED

Sl. No. Pirticulars Page No.

01 Audit Reports 1-1

02 statenrent of Financial Position 8

0l Statement ofProllt and Loss and Other comprehensive lncome 9

04 Statement ofChanges in Equily l0

05 Statemenl of Cash Flows tl

08 Schedule ofTrade Receivable (Annexture-2 & l) l5

0q Schedule of Bills Payable (Annexiure-4) 36

10 Defened Tax Calculation (Annexturc-s) 11

l1 Income Tax Liabilities (Annexture'6) 38

Independent Auditor's Rcport

Basis for Opinion

Key Audit Matters

Risk Our response Io the risk

The timing ol the revenue recognized and realized

. Verily the respeclive invoices, L/C documents,

Our substantivc procedures is relating to ihe rerenue

. Veriry the appropriateDess of disclosures

. Assessing the appropriateness ofthe Company's

Risk Our response to the risk

Our substantive procedure in relating to the invcntory

. Check the accounting records relating to

Ple.se see Noto No.8.00 to the financial statemeDts

Risk Our response to the risk

Our substantive procedure in relating to the propety.

Please see Nole No ,1 00 and Annexure No. A to ihe financiai statements

Our response to the risk

. A\'e..ed the comp)etene.. and ".crrr"c\ ol'.he

Our proccdure in relaling .o rhc aclcarcd ra\

. I e.ted rhe Ja.c ..arion ol ra. ba.ed d.or..iatiorr L

dnd baccd dcprcci.r.ion

Please see Annexure-5 to the financial statements

Our rcsponse to the risk

Long Term Loan

86, Bir Uttam C.R. Datta Road

Our substnDtive procedure in relating to the Long Term

Pler,e lee \ole \o. l5.00 ro rhc fin-n.i"l .lare'nenr'.

Risk Our rcspons€ to the risk

PIease see Note No 9.00&l0.00tor|efinrncirl strtenenfs

we havc nothing to repofi in this regard.

Auditor's Rcsponsibilities for the Audit ofthe Financial Statements

Rcport on oth€r Legal and Regulatory Requirements

Dated: Dhaka: Khan, FCA

DR{CON SWEATER & SPINNING LIMITED

30 June 2019 30 June 2018

Current Assefs 2,028,159,983 r,645,759,214

TOTAL ASSETS .r.68,r.763.398 3.495.786.269

EQUITY AND LIABILITIES

Reserve for Revaluation 14 I rqs.soz.r6o ll ooo.:qo.:4: I

Non-Currenf Liabilities 3a1,77 4,982 432,675,039

Current Liabi,ities 201,078,887 62.379

Bills Payable l6 5,142,t94 8,273,818

TOTAL EQUITY AND LIABTLITIES ___!,!!1J6J,198 ---!12!J!f2!e

Managing Direclor Chairman

Signed in leflns ofour separate rcpofi on even dale.

Dated: October 29, 2019