PACIFIC SPINNING MILLS LIMITED

JATRAMURA, RUPGONJ, NARAYANGONJ

STATEMENT OF FINANCIAL POSITION AS AT JUNE 30, 2021

PARTICULARS NOTES TAKA-30.06.2021 TAKA-30.06.2020

ASSETS :
NON-CURRENT ASSETS :
Property, Plant & Equipment 04.00 429,786,811 251,183,555
Preliminary Expenses 36,295 36,295
Pre-Production Expenses 156,800 156,800
429,979,906 251,376,650

CURRENT ASSETS :
Inventories 05.00 10,888,276 347,191,222
Trade and Other Receivables 396,487,457 -
Advance, Deposit & Prepayments 112,978,000 69,845,000
Advance Income Tax 3,193,054 206,007
Cash & Cash Equivalents 06.00 7,588,850 6,965,060
531,135,637 424,207,289

TOTAL ASSETS 961,115,543 675,583,939

EQUITY & LIABILITIES :

EQUITY :
Share Capital 07.00 34,000,000 34,000,000
Retained Earnings 223,317,320 182,645,534
257,317,320 216,645,534

NON-CURRENT LIABILITIES :
Bank Loan 08.00 693,587,564 448,347,035
693,587,564 448,347,035

CURRENT LIABILITIES :
For Expenses 5,376,864 7,354,150
Provision for Tax 4,833,795 3,237,220
10,210,659 10,591,370

TOTAL EQUITY AND LIABILITIES 961,115,543 675,583,939

0 -

MANAGER DIRECTOR MANAGING DIRECTOR

Signed in terms of our separate report of even date.

Date : November 21, 2021 SHAFIQ MIZAN RAHMAN & AUGUSTINE

CHARTERED ACCOUNTANTS
 71,645,000.00

396,487,456.73
396,487,456.00
 PACIFIC SPINNING MILLS LIMITED
JATRAMURA, RUPGONJ, NARAYANGONJ

Total De
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED JUNE 30, 2021
###
Less: L/C
PARTICULARS NOTES TAKA-30.06.2021 TAKA-30.06.2020
Less: Tr
Sales 815,068,593 768,531,932
Less: Cost of Production 09.00 733,561,734 691,678,739
Gross Profit 81,506,859 76,853,193
Add: Other Income (MTDR Interest Received) 383,830 560,125
81,890,689 77,413,318
Less: Administrative and Selling Expenses 10.00 5,811,397 5,600,302
76,079,292 71,813,016
Less: Financial Expenses 11.00 30,705,304 66,365,187
Comprehensive Income / (Loss) before tax 45,373,988 5,447,829
Less: Tax Adjustment 206,007 3,030,000
45,167,981 2,417,829
Less: Tax Deducted at Source on MTDR Interest Received 38,383 56,013
45,129,598 2,361,816
Less: Tax Paid 56,617 1,500,000
45,072,981 861,816
Less: Provision for Tax (Turnover+Turnover) 4,833,795 3,237,220
Comprehensive Income / (Loss) 40,239,186 (2,375,404)
###
###
TO SUM-UP : ###
Business Income 40,239,186 (2,375,404)
House Property Income (Note # 12.00) 432,600 432,600
40,671,786 (1,942,804)
 PACIFIC SPINNING MILLS LIMITED
JATRAMURA, RUPGONJ, NARAYANGONJ

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED JUNE 30, 2021

Particulars Share Capital Retained Earnings Total Taka

Balance as on 01.07.2020 34,000,000 182,645,534 216,645,534

Comprehensive Income/(Loss) for the year - 40,671,786 40,671,786

Balance as on 30.06.2021 34,000,000 223,317,320 257,317,320

Balance as on 01.07.2019 34,000,000 184,588,338 218,588,338

Comprehensive Income/(Loss) for the year - (1,942,804) (1,942,804)

Balance as on 30.06.2020 34,000,000 182,645,534 216,645,534

 PACIFIC SPINNING MILLS LIMITED
JATRAMURA, RUPGONJ, NARAYANGONJ

STATEMENT OF CASH FLOW FOR THE YEAR ENDED JUNE 30, 2021

PARTICULARS TAKA-30.06.2021 TAKA-30.06.2020

CASH FLOW FROM OPERATING ACTIVITIES :

Comprehensive Income / (Loss) during the year 40,671,786 (1,942,804)
Depreciation during the year 38,610,014 38,519,316
79,281,800 36,576,512
Change in Working Capital :
Increase/(Decrease) in For Expenses (1,977,286) (3,209,100)
Increase/(Decrease) in Provision for Tax 1,596,575 3,237,220
(Increase)/Decrease in Inventories 336,302,946 162,336,061
(Increase)/Decrease in Trade & Other Receivables (396,487,457) 84,553,133
(Increase)/Decrease in Advance, Deposits & Pre-Payments (43,133,000) 376,950
(Increase)/Decrease in Advance Income Tax (2,987,047) 2,823,993
(106,685,269) 250,118,257
Net Increase/(Decrease) in Operating Activities : (27,403,469) 286,694,769
CASH FLOW FROM INVESTING ACTIVITIES :
(Increase)/Decrease in Property, Plant & Equipment Addition (217,213,270) (38,942,276)
(Increase)/Decrease in Preliminary Expenses - -
Net Increase/(Decrease) in Investing Activities : (217,213,270) (38,942,276)
CASH FLOW FROM FINANCING ACTIVITIES :
Increase/(Decrease) in Share Capital - -
Increase/(Decrease) in Bank Loan 245,240,529 (247,493,758)
Net Increase/(Decrease) in Financing Activities : 245,240,529 (247,493,758)
NET CASH & BANK BALANCE INCREASE/(DECREASE) : 623,790 258,735
OPENING CASH & CASH EQUIVALENTS : 6,965,060 6,706,325
CLOSING CASH & CASH EQUIVALENTS : 7,588,850 6,965,060
 PACIFIC SPINNING MILLS LIMITED
JATRAMURA, RUPGONJ, NARAYANGONJ

SCHEDULE OF PROPERTY, PLANT & EQUIPMENT AS AT JUNE 30, 2021 SCHEDULE - A/1

ADDITION / DEPRECIATION
BALANCE AS AT TOTAL AS AT W. D. VALUE AS AT W. D. VALUE AS
PARTICULARS (SOLD) DURING RATE DURING THE
01.07.2020 30.06.2021 30.06.2021 AT 30.06.2020
THE YEAR % YEAR

Land 42,337,146 - 42,337,146 0% - 42,337,146 42,337,146

Building 21,042,829 - 21,042,829 5% 1,052,141 19,990,688 21,042,829
Machinery (New) 180,263,330 217,213,270 397,476,600 20% 36,052,666 361,423,934 180,263,330
Electrical Installation (Old) 20,006 - 20,006 20% 4,001 16,005 20,006
Electrical Installation (New) 1,129,701 - 1,129,701 20% 225,940 903,761 1,129,701
Furniture & Fixture 14,859 - 14,859 10% 1,486 13,373 14,859
Office Equipment 13,576 - 13,576 10% 1,358 12,218 13,576
Generator 5,903,699 - 5,903,699 20% 1,180,740 4,722,959 5,903,699
Car 458,409 - 458,409 20% 91,682 366,727 458,409

251,183,555 217,213,270 468,396,825 38,610,014 429,786,811 251,183,555

Allocation of Depreciation :
Cost of Production 38,607,170
Administrative & Selling Expenses 2,844
38,610,014
62,611,212.00

16,803,277.00
 PACIFIC SPINNING MILLS LIMITED
JATRAMURA, RUPGONJ, NARAYANGONJ

NOTES TO THE FINANCIAL STATEMENT FOR THE YEAR ENDED JUNE 30, 2021

01.00 Reporting Entity

01.01 Company Profile

PACIFIC SPINNING MILLS LIMITED is a private Ltd. Company with an incorporation on 01 August, 1999
vide registration no. C-38276(234)/99 under Companies Act, 1994.

01.02 Nature of Business

The main activities of the company were concentrated in spinning mills, textile mills, sizing mills, weaving
mills, dyeing & finishing, new industry establish, leasing and others service business.

02.00 Basis of Preparation

The financial statements of the company under reporting have been prepared in accordance with a
going concern concept under historical cost convention and basically on accrual basis of accounting
except for Interest income on balances with other banks and financial institutions in accordance with
generally accepted accounting principles and after due compliance with International Accounting
Standards/International Financial Reporting Standards so far adopted in Bangladesh as Bangladesh
Accounting Standards/ Bangladesh Financial Reporting Standards by the Institute of Chartered
Accountants of Bangladesh, the Companies Act, 1994 and other applicable laws & regulations.

02.01 Reporting Period

The financial statements cover one year from 01 July, 2020 to 30 June, 2021.

03.00 Significant Accounting Policies

Principal Accounting Policies
The accounting policies set out below have been applied consistently to all periods presented in this
financial statements.

03.01 Property, Plant and Equipment:

a. Recognition and Measurement:

In compliance with IAS-16 (Property, Plant & Equipment) items of property, plant and equipment (PPE),
excluding land, are initially measured at cost less accumulated depreciation and accumulated impairment
losses, if any. Land is measured at cost. The cost of an item of PPE comprises its purchase price, import
duties and non-refundable taxes, after deducting trade discount and rebates and any costs directly
attributable to bringing the assets to the location and condition necessary for it to be capable of operating
in the intended manner.

b. Capitalization of Borrowing Cost:

Finance cost that are directly attributable to the construction of plants are included in the cost of those
plant & machinery in compliance with IAS-23: Borrowing Cost, allowed alternative treatment.

c. Subsequent Costs:
The cost of replacing part of an item of property, plant and equipment is recognized in the carrying
amount of the item if it is probable that the future economic benefits embodied within the part will flow to
the Company and its cost can be measured reliably. The cost of the day to day maintaining cost on PPE
are recognized in the income statement as incurred.

d. Depreciation:
Depreciation is recognized in the Statement of Comprehensive Income on a reducing balance method on
all item of property, plant & equipment.
e. Retirements and Disposals:
An asset is derecognized on disposal or when no future economic benefits are expected from its use and
subsequent disposal. Gains or losses arising from the retirement or disposal of an asset is determined as
the difference between the net disposal proceeds and the carrying amount of the asset and is recognized
as gain and loss from disposal of asset under other income in the Statement of Comprehensive Income.

03.02 Advances:
Advances are initially measured at cost. After initial recognition advances are carried at cost less
deductions, adjustments or charges to other account heads such as PPE or inventory etc.

03.03 Cash & Cash Equivalents:

For the purpose of Balance Sheet and Cash Flow Statements, Cash in hand and Bank balances
represent cash and cash equivalents considering the IAS-1 “Presentation of Financial Statements” and
IAS-7 “Cash Flow Statement”, which provide that Cash and Cash equivalents are readily convertible to
known amounts of Cash and are subject to an insignificant risk of changes in value and are not restricted
as to use.

03.04 Bills Receivables:

Bills receivables consists of unpaid bills receivables from enlisted dealer and unbilled revenue
recognized at the statement of financial position date.

03.05 Provisions:
A provision is recognized on the balance sheet date if, as a result of past events, the Company has a
present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of
economic benefits will be required to settle the obligation.

03.06 Income Tax:

The corporate tax rate for private limited company is applied.

03.07 Revenue recognition:

In compliance with the requirements of IFRS-15 “Revenue”, revenue is recognized only when:
* The services are invoiced and dispatched to the customers; and
* Interest income is recognized on accrual basis.

03.08 Financial Expenses:

Financial expenses comprises interest expenses on all bank charges, commission & others. All
borrowing costs are recognized in the income statement using effective interest method.

03.09 Events after Reporting Period:

Events after reporting period that provide additional information about the Company's position at the
balance sheet date are reflected in the financial statements. Events after reporting period that are not
adjusting event are disclosed as off statement of financial position items.

04.00 PROPERTY, PLANT & EQUIPMENT :

PARTICULARS TAKA-30.06.2021 TAKA-30.06.2020

Balance as on 01.07.2020 251,183,555 250,760,595

Add: During the year 217,213,270 38,942,276
468,396,825 289,702,871
Less: Depreciation during the year 38,610,014 38,519,316
W.D.Value as on 30.06.2021 429,786,811 251,183,555
05.00 INVENTORIES :

PARTICULARS TAKA-30.06.2021 TAKA-30.06.2020

Raw Materials 6,579,572 339,350,657

Finished Goods 2,132,156 4,640,403
Packing Materials 2,176,548 3,200,162

10,888,276 347,191,222

06.00 CASH AND CASH EQUIVALENTS :

PARTICULARS TAKA-30.06.2021 TAKA-30.06.2020

Cash in Hand
Cash at Bank :
First Security Islami Bank Ltd., A/C # 0108 1110007758 72,792 6,301
Dutch-Bangla Bank Ltd., A/C # 1191100002059 39,453 411,803
Uttara Bank Ltd., A/C # 1248 12200212714 30,306 41,369
IFIC Bank Ltd., A/C # 1198427929001 666,611 67,196
FSIBL, MTDR A/C # 0108 24600026846 6,742,613 6,400,166
EXIM Bank Ltd., A/C # 00211100117401 37,075 38,225

7,588,850 6,965,060

07.00 SHARE CAPITAL : TAKA-30.06.2021 TAKA-30.06.2020

Authorised Capital :
1,000,000 Ordinary Shares of Tk. 100.00 each 100,000,000 100,000,000

Issued, Subscribed and Paid-Up Capital :

340,000 Ordinary Shares of Tk. 100.00 each fully paid 34,000,000 34,000,000

08.00 BANK LOAN :

PARTICULARS TAKA-30.06.2021 TAKA-30.06.2020

Bai-Murabaha (Hypo), First Security Islami Bank Ltd. 413,378,605 333,041,624

Bai-Murabaha (TR), First Security Islami Bank Ltd. 184,365,677 35,597,736
L/C Outstanding 95,843,282 79,707,675

693,587,564 448,347,035
09.00 COST OF PRODUCTION :

PARTICULARS TAKA-30.06.2021 TAKA-30.06.2020

Opening Stock of Raw Materials 339,350,657 500,617,550

Purchase of Raw Materials 178,975,860 392,526,125
Salary & Wages 12,076,000 8,072,000
Electricity Bill 22,592,931 13,925,428
Powder & Chemical 543,800 138,921
Petrol, Mobil & Greece 1,280,302 760,224
Spare Parts 361,307 305,935
Repair & Maintenance 61,732 70,673
Gas 126,435,134 59,300,525
Insurance 4,791,023 1,114,080
C&F 5,469,187 8,669,991
Depreciation 38,607,170 38,516,156
730,545,103 1,024,017,608
Less: Closing Stock of Raw Materials 6,579,572 339,350,657
723,965,531 684,666,951
Add: Opening Stock of Finished Goods 4,640,403 5,273,185
728,605,934 689,940,136
Add: Opening Stock of Packing Materials 3,200,162 3,636,548
731,806,096 693,576,684
Less: Closing Stock of Finished Goods 2,132,156 4,640,403
729,673,940 688,936,281
Less: Closing Stock of Packing Materials 2,176,548 3,200,162
727,497,392 685,736,119
VAT 5,542,204 5,494,536
Land Rent 180,000 210,000
Purchase of Packing Materials 342,138 238,084
733,561,734 691,678,739
###

10.00 ADMINISTRATIVE AND SELLING EXPENSES :

PARTICULARS TAKA-30.06.2021 TAKA-30.06.2020

Directors Remuneration & Allowances 1,740,000 1,740,000

Salary & Allowances 2,500,000 2,500,000
Stationery & Printing 31,287 40,102
Postage & Stamps 12,785 10,560
Travelling - -
Entertainment 219,830 206,800
Newspaper & Periodicals 1,910 1,980
Office Rent 168,000 168,000
Telephone, Mobile & Internet Bill 148,000 125,000
Licence & Renewal 45,200 45,200
Office Maintenance 36,723 32,886
Medical Expenses 312,670 233,200
Fire Insurance - -
Repair & Maintenance 98,726 132,320
 Petrols & Mobil 316,920 211,200

PARTICULARS TAKA-30.06.2021 TAKA-30.06.2020

Uniform & Liveries 19,722 17,511

Audit Fees 25,000 25,000
Legal Fees 15,000 10,000
Misc. Expenses 116,780 97,383
Depreciation 2,844 3,160

5,811,397 5,600,302

11.00 FINANCIAL EXPENSES :

PARTICULARS TAKA-30.06.2021 TAKA-30.06.2020

Bank Interest :
First Security Islami Bank Ltd. 29,054,640 65,801,893
Bank Charge & Commission 1,650,664 563,294

30,705,304 66,365,187

12.00 HOUSE PROPERTY INCOME : (Jatramura, Rupgonj, Narayangonj)

PARTICULARS TAKA-30.06.2021 TAKA-30.06.2020

Rent Received :
1st Floor Shop 9 X 3,500 X 12 378,000 378,000
2nd Floor Shop 8 X 2,500 X 12 240,000 240,000
618,000 618,000
Less: Repairing Charges 30% 185,400 185,400
432,600 432,600