GHAIL-Financial-Statements-2020.pdf - Golden Harvest
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Auditor's Report and Financial Statementsof
Golden Harvest Agro Industries Ltd.
For the year ended 30 fune 2O2O
Shanta Western Tower, Level-S186, Gulshan- Link Road, Tejgaonl/A,
Dhaka- 12 0 B, Bangladesh
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TABLE OF CONTENTS
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Particulars Page No.
L Auditor's Report L-7
2 Consolidated Statement of Financial Position 8
3 Statement of Financial Position 9
4Consolidated Statement of Profit or Loss and Other
Comprehensive lncome10
5Statement of Profit or Loss and Other Comprehensive
lncome11,
6 Consolidated Statement of Changes in Equity 12
7 Statement of Changes in Equity 13
8 Consolidated Statement of Cash Flows L4
9 Statement of Cash Flows 15
10 Notes to the Financial Statements 1,6-62
71, Segmental information 63
L2 Other information 64-67
13 Statement of Cash at Bank [Annexure-A] 68
Sl. No.
Tfr<m €s ffi 'flffiMABS &J Partners
Chartered Accountants
lndependent Auditor's RePort
To the Shareholders of Golden Harvest Agro lndustries Limited
Report on the Audit of the Consolidated Financial Statements
Qualified OPinion
We have audited the consolidated financial statements of Golden HarvestAgro lndustries Limited (the
company) and its subsidiary (the Group), which comprise the consolidated statement of financial
position as at 30 June 2020, and the consolidated statement of profit or loss and other
comprehensive income, consolidated statement of changes in equity and consolidated statement of
cash flows for the year then erlded, and notes to the consolidated financial statements, including a
summary of significant accounting policies'
ln our opinion, except for the effects of the matters described in the Basis for Qualified Opinion
section of our report, the accompanying consolidated financial statements present fairly, in all
material respects, the consolidated financial position of the company as at 30 June 2020, and its
consolidated financial performance and its consolidated cash flows for the year then ended in
accordance with lnternational Financial Reporting standards (lFRSs), the Companies Act 1994, the
Securities and Exchange Rules 1987 and other applicable laws and regulations'
Basis for Qualified OPinion
L. Reference to Note # 25.02 to the consolidated financial statements, provision for workers Profit
participation Fund (wPPF) of Taka 2L,72L,729 has been provided bythe company and the same
is shown under the head of "Employees Welfare Fund, Bangladesh Workers Welfare Fund and
Workers Profit Participation fund" of Taka 3,175,464, laka 3,290,240 and Taka 15'256'025
respectively as current liabilities in the consolidated financial statements as on 30 June 2020'
However, the amount has not been distributed yet with a proportion of 80:10:10 among these
funds as per the Labor Act 2006 as amended in 2013'
2. Reference to Note # L4A.02 to the financial statements, the company has provided a total
amount of Taka g16,825,508 as loan to Sister Concerns which is shown under the head of "Other
Receivables" as current assets in the financial statements as on'30 June 2020' However, the
Company has not taken any approval of Shareholders in the Annual General Meeting (AGM) for
the said loans to the Sister Concerns.
We conducted our audit in accordance with lnternational Standards on Auditing (lSAs)' Our
responsibilities under those standards are further described in the Auditor's Responsibilities for the
Audit of the Consolidated Financial Statements section of our report. We are independent of the
Company in accordance with the lnternational Ethics Standards Board for Accountants'Code of
Ethics for professional Accountants (IESBA code) and the lnstitute of Chartered Accountants of
Bangladesh (ICAB) Bye Laws. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our qualified opinion'Corporate Office:SMC Tower (7th Floo033, Banani C/A, Road 17
a A rnember or Bl3[3]?J3:fr:i3111"u?u'.4.B. Lr - ---!- *rcR-n"-oR?1?65-46
Motijheel Branch Office :
2l,Pwana Paltan Line (4th & 7th Floor)
Dhaka-i 000, Bangladesh
Phone : +88-02-58315469/58315471
Fax : t88-02-9332936
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MABS &J PartnersChartered Accountants
Emphasis of Matters
Without modifying our opinion, we report as follows:
1,. As disclosed in Note # 42.A5 to the consolidated financial statements, the Company temporarily
closed its Head Office for at least 2.5 months in response to COVID-19 while Factory operation
had been continuing at a very limited scale just to keep the machineries running. At this point,
the Company has financially affected by the ongoing COVID-19 pandemic on the Company's
business, results of operations, financial position and cash flows for the year ended 30 June
2020. However, management's evaluation of the events and conditions and management's
plans to mitigate these matters has been described in the Note # 42.05. Our opinion is not
modified in respect of this matter.
Z. No physical verification of the company's inventories as disclosed in Note # 12 to the
consolidated financial statements was conducted by us and by the company as on 30 June 2020
considering health and safety issues due to Corona Pandemic. However, to confirm the
inventories as at 30 June 2020, we have applied alternative audit procedures subsequently
during our field audit works as per the guidelines issued by the lnternational Federation of
Accountants (tFAC) and The lnstitute of Chartered Accountants of Bangladesh (ICAB) in this
regard. Our opinion is not modified in respect of this matter.
3. Reference to Note # 37 "Earning per Share" of its financial statements, the management of the
Company has explained the reasons for decrease in EPS from Taka 1.93 in the previous year to
Taka 0.04 this year. Our opinion is not modified in respect of this matter.
4. As per IAS 01 (Para-38), an entity present comparative information in respect of the preceding
period for all amounts reported in the current period's financial statements. An entity also
includes comparative information for narrative and descriptive information if it is relevant to
understanding the current period's financial statements. However, the Company has
consolidated one subsidiary company named Golden Harvest Dairy Limited in its consolidated
financial statements for the Financial Year 2019-2020. On the other hand, the comparative
financial information shown for the corresponding Financial Year 2018-2019 with the
consolidation of two subsidiaries named Golden Harvest Dairy Limited and Golden Harvest lce
Cream Limited. Hence, previous year's financial information is not fully pertinent in respect to
the financial information of the current period's consolidated financial statements as Golden
Harvest lce Cream Limited was not excluded from previous year's consolidation and
comparatives.
A member of
Lffit NexiaH
Dhaka
MABS &J PartnersChartered Accountants
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the consolidated financial statements of the current period. These matters
were addressed in the context of our audit of the consolidated financialstatements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters. ln addition
to the matters described in the Basis for Qualified Opinion section, we have determined the matters
described below to the Key Audit Matters to be communicated in our report. For each matter below
our description of how our audit addressed the matters provided in that context.
Risk Our response to the risk
Revenue recognition
We have reviewed the Company's revenue
recognition policies, accounting guidelines and
disclosures to assess conformity with IFRS 15
"Revenue from Contract with Customers". We
have tested relevant internal control used to
ensure the completeness, accuracy and timing of
revenue recognized including sales during the year
end to ensure cut off has been properly
maintained. We have applied analytical and
substantive procedure to establish, whether any
revenue had been recognized where no
corresponding accounts receivables or proceeds
have been recorded in the general ledger.
Property, Plant and Equipment (PPE)and Capital Work in Progress (CWIP)
Our audit included the following procedure:
We assessed whether the accounting policies in
relation to the capitalization of expenditures are
in compliance with IAS and found them to be
consistent.
o We inspected a sample of invoices and
supporting documents to determine
whether the classification between capital and
revenue expenditure was appropriate.
o We evaluated whether the useful lives
determined and applied by the management
were in line with historical experience and the
market practice.
The carrying value of the Group's Property,
Plant and Equipment (PPE) was Taka
7,722,216,242 and Capital Work ln Progress
(CWIP) was Taka 487,654,465 at 30 June 2020.
Expenditures are capitalized if they create new
assets or enhance the existing assets, and
expensed if they relate to repair or
maintenance of the assets. Classification of the
expenditures involves judgment. The useful
lives of PPE items are based on management's
estimates regarding the pericd during which
tl-e assets or its significant components will he
,:eC. The estimates are based on historical
A rnember of
3 Dhaka6S\ N exia
At the year end the Company reported the net
sales revenue of Taka 885,193,111 are
recognized when the Company transfers
control over goods to the customer or satisfies
the performance obligation to a customer.
Sales have decreased than the previous year
due to the effect of COVID 19. Recognition of
the revenue of Golden Harvest Agro lndustries
Limited (GHAIL) has been considered
significant to our current year audit due tosignificant decrease comparing to last fewyears.
Please see Note # 27 "Revenue" of its
consolidated fina ncia I statements.
MABS &J PartnersChartered Accountants
We evaluated the assumPtions
management in the determination of useful
lives to ensure that these are consistent with
the principles of IAS 16. "Property, Plant and
Equipment".
We compared the useful lives of each class of
asset in the current year to the prior year to
determine whether there were any significant
changes in the useful lives of assets, and
considered the reasonableness of changes
based on our knowledge of the business and ]
the industrY.
We verified records e.g. contractor bills, work
orders and certification of work performed by
the specialized personnel to ensure that the
assets under construction or pending
installation and not yet ready for intended use
are classified as work in progress' We also
verified the date on which the assets are
moved from the capital work in progress
account to the property plant and equipment
(the date on which the asset is ready for
intended use), so that the depreciation on
property, plant and equipment may be
computed correctlY.
We reconciled the movement of capital work
in progress from opening to closing, specifically
verifying additions during the year, capital
assets completed during the year and
impairment of any opening capital work in
progress items.
We checked whether the depreciation of PPE
items was commenced timely, by comparing the
date of the reclassification from capital work in
progress to ready for use, with the date of the act
a
o
a
a
made by
of completion of the work.
consideration the physical condition of the
assets.
ln considering the Valuation of capital work in
progress to PPE, the management needs to
ensure the assets under construction or
pending installation and not yet ready for
intended use are classified as work in progress'
An appropriate system needs to put in place to
capture all directly identifiable costs, which can
be capitalized, to be so accumulated to capital
work in progress whilst expenses which are
identified and charged to revenue in the
normal course.
The valuation of PPE was identified as a key
audit matter due to the significance of this
balance to the financial statements and that
there is significant measurement uncertainty
involved in this valuation'
Please see Note # 5.OO "Property, Plant and
Equipment" and Note # 9.00 Capital Work in
Progress" to its consolidated financial
statements.
experience and market practice and take into
Measurement of Deferred Tax LiabilitYWe obtained an understa
design and tested the operational effectiveness of
the company's key controls over the recognition
and measurement of DTAs and DTLs and the
ns used in estimating the comPanY's
nding, evaluated the
assumptio
The comPany reports net
to totaling Taka 89,461,260 as at 30 June 2020'
Significant judgment is required in relation to
deferred tax liabilities as it is probable that the
will be reduced against which
deferred tax liabilitY
taxable Profit
A member ofDhaka6S\ Nexia
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MABS &J PartnersChartered Accountants
Other Matter
The consoridated financiar statements of Gorden Harvest Agro rndustries Limited and its subsidiaries
(the Group) for the year ended 30 June 2019 were audited by S' F' Ahmed & co'' chartered
Accountants who expressed an unmodified opinion on those statements on 30 October 2019'
Other lnformation
Management is responsible for the other information. The other information comprises all of the
information in the Annuar Report other than the consofidated financiar statements and our auditors'
reportthereon.ThedirectorSareresponsiblefortheotherinformation.
our opinion on the consolidated financial statements does not cover the other information and we
do not express any form of assurance conclusion thereon'
rn connection with our audit of the consoridated financial statements, our responsibility is to read
the other information and, in doing so, consider whether the other information is materially
inconsistentwiththeconsolidatedfinancialstatementsorourknowledgeobtainedintheauditorotherwise appears to be materially misstated'
Responsibilities of Management and Those Charged with Governance for the Consolidated
Financial Statements
Managementisresponsibleforthepreparationofconsolidatedfinancialstatementsinaccordancewith lFRSs, the companies Act 1994, the security and Exchange Rules 1987 and other applicable
laws and regulations and for such internal control as management determines is necessary to enable
thepreparationofconsolidatedfinancialstatementsthatarefreefrommaterialmisstatement'whether due to fraud or error'
ln preparing the consolidated financial statements, management is responsible for assessing the
company's ability to continue as a going concern, disclosing, as applicable''matters related to going
concern and using the going concern basis of accounting unless management either intends to
lt;idate the company or to cease operations, or has no realistic alternative but to do so'
--rse charged urith governance are responsible for overseeing the company's financial reporting
5
future taxable income.
We also assessed the completeness and accuracy
of the data used for the estimations of future
taxable income.
We involved tax specialists to assess key
assumptions, controls, recognition and
measurement of in the consolidated financial
statements
recognized over a number of Years'
Please see Note # 22 "Detened Tax Liability"
to its consolidated financial statements'
differences can bethe taxable temPorarY
Dhakaffi Nexia
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MABS &J PartnersChartered Accountants
Auditor's Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor's report
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with lSAs will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in
the aggregate, they could reasonably be expected to influence the economic decisions of users taken
on the basis of these financial statements.
As part of an audit in accordance with lSAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
to fraud or error, design and perform audit procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Company's internal control.
accounting estimates and related disclosures made by management.
accounting and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the Company's ability to
continue as a going concern. lf we conclude that a material uncertainty exists, we are required to
draw attention in our auditor's report to the related disclosures in the financialstatements or, if
such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor's report. However, future events or conditions
may cause the Company to cease to continue as a going concern.
including the disclosures, and whether the financial statements represent the underlying
transactions and events in a mannerthat gives a true and fairview.
We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with
relevant ethical requirements regarding independence, and to communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence, and
'",' he re a pplica ble, related safeguards
A member of
6DhakaN Nexia.-4
MABS & J PartnersChartered Accountants
From the matters communicated with those charged with governance, we determine those matters
that were of most significance in the audit of the financial statements of the current period and are
therefore the key audit matters. We describe these matters in our auditor's report unless law and
regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh the public interest benefits of
such communication.
Report on Other Legal and Regulatory Requirements
ln accordance with the Companies Act 1994 and the Securities and Exchange Rules 1987, we also
report the following:
a) We have obtained all the information and explanation which to the best of our knowledge and
belief were necessary for the purpose of our audit and made due verification thereof;
b) ln our opinion, proper books of account as required by law have been kept by the Company so
far as it appeared from our examination of those books;
c) The statement of financial position and statement of profit or loss with the report are in
agreement with the books of account and returns; and
d) The expenditure incurred was for the purpose of the Company' ness
1
Dated: Dhaka, 28 October 2020 N Uddin Ahmed
Senior Partner
MABS & J Partners
Chartered Accountants
A member of
s
7Nexia
Golden Harvest Agro lndustries Limited
Consolidated Statement of Financial Position
As at 30 June 2020
Particulars
ASSETS
Non-current assets
Property, plant and equipment (PPE)
Right-of-use (ROU) assets
lntangible assets
Biological assets
Capital work in Progresslnvestment in associates
Current assets
I nventoriesAdvances, deposits and prepayments
Trade and other receivables
Cash and cash equivalents
TOTAL ASSETS
EQUITY AND LIABILITIES
Shareholders' equitY
Share capitalShare premiumRevaluation surPlus
Retained earnings
Non controlling interest (NCl)
Total shareholder's equitY
Non-cu rrent liabilitiesLong term loans
Deferred tax liabilitY
Lease liabilities
Current liabilitiesAccounts and other PaYables
Accruals and ProvisionsShort term loans
Current portion of long term loans
Current portion of Lease liabilities
TOTAL EQUITY AND LIABILITIES
Number of share used to calculate NAV
Net asset value Per share
Amount in BDT
30-Jun-20 30-Jun-19Notes
14,285,263 4,
5
6
7
8
9
L7
L2
13
74
15
ilz,ros,gso 7,7 48,446,475
76
17
18
19
20
27
22
23
24
25
26
27
23
38
5,03 2,270 844,738,9813,243,482,842
7,942,464,852256,689,455
25,855,925
57,
2L5,837,62L LL9,909,790
15.01 20.01
The occompanying notes form on integrol part ofthis finonciol stotements ond ore to be read in coniunction
,,"\1Di,hV Director Director
tI
Chief Financial OfficerSigrted in terms of our separote report of even dote onnexed'
Dated; Dhaka
October 78,2020
Nasir Uddin Ahmed FCA
Senior Partner
MABS & J Partners
Chartered Accountants
8
1,722,21-6,242
27,935,08959,792,72093,015,304
487,654,46572
3,965,7s7,209703,729,286
82,205,577702,260,L41480,L38,313
1
40 34,786
502,198,548324,364,384
7,036,082,679
907,889,797662,956,578
1,058,693,308370,722,926
2,!58,376,210
216,395,92895
7,799,097,90028,668,754
279,946,668
973,745,50989,467,260
59,247,9321.58,437,027
599,647,243255,887,449
678,797
85,377,376310,280,s15
7,225,486,792633,797,796
,582
Secretary
rt
-
Golden Harvest Agro lndustries Limited
Statement of Financial PositionAs at 30 June 2020
Particulars
ASSETS
Non-current assets
Property, plant and equipment (PPE)
Right-of-use (ROU ) assets
lntangible assets
Biological assets
Capital work in Progress (CWIP)
lnvestment in subsidiary companies
lnvestment in associates
Current assets
I nventoriesAdvances, deposits and prepayments
Trade and other receivables
Cash and cash equivalents
TOTAL ASSETS
EQUITY AND LIABILITIES
Shareholders' equitY
Share capital
Share premiumRevaluation surPlus
Retained earnings
Total shareholder's equitY
Non-current liabilitiesLong term loans
Deferred tax liabilityLease liabilities
Current liabilitiesAccount and other PaYables
Accruals and ProvisionsShort term loans
Current portion of long term loans
Current portion of Lease liabilities
TOTAL EQUITY AND LIABILITIES
Number of share used to calculate NAV
Net asset value Per share
Amount in BDT
30-Jun-20 30-Jun-19Notes
7A
5A6A
8A9A10
tt
72413A
74415A
Chief Officer
Signed in terms of our seporote report of even date onnexed'
Dated, Dhaka;
28 October 2020
743,O84
5,148,906,560 4,!75,74L,999
,79
937,
780
5J48,90q560 4,775,74L,999
275.837.527 L79p0e_J_99_
15.01 20.01
Nasir Uddin Ahmed FCA
Senior PartnerMABS & J PartnersChartered Accountants
76
77
18A19A
2LA22423A
24425426A2tA23A
38A
The occompanying notes form on integral port of this finonciol stdtements ond ore to be reod in coniunction
€,2 "Dr*\"i
\{Financial
o
7,482,308,88427,935,08959,792,720
450,358,528!5,096,872
7,302,927,39331,038,98849,852,97913,699,777
397,015,754704,377,772
499,943,834323,349,766
7,763,448,s83
399,026,142295,237,1].0736,449,28723\,495,523
2,158,316,2_70
21.6,395,928139
1.,199,097,90028,668,7s4
279,946,668
845,7'.J"4,589
92,758,072680,779,960707,852,338
797
58,924,737757,272,984541.,894,637212,289,237
43,632,211.
746,674,435555,045,051234,607,436
Dhaka
Secretary
3,240,034,179 2,399,343,86L-
\
Golden Harvest Agro lndustries LimitedConsolidated Statement of Profit or Loss and Other Comprehensive lncome
For the year ended 30 June 2020
Particulars
Revenue
Cost of goods sold
Gross profit
Operating expenses
Admin istrative expenses
Selling and distribution expenses
Other operating income
Fair value adjustments of biological assets
Profit from operations
Finance income
Finance expenses
Net profit from operation
Contribution to WPPF
lncome before share of non-consolidated companies
and income taxShare of profit / (loss) from associates
Net profit before tax
lncome tax expenses
Net profit after tax
Non controlling interest (NCl)
Net profit after tax attributable to ordinary shareholders
Other comprehensive income
Total comprehensive income
Number of share used to calculate EPS
Notes
27
28
29
30
31
8.01.01
885,193,111(517,424,493)
2,244,720,323(1.,229,082,s87l.
367,768,6L8 L,0L7,037,742
9,230,353
77,840,039
63,723,132
18,072,083
32
33
€ ,Xr(J*Q *ffi,,n**,
185,935,557
77,889,545(185,682,227l.
773,369,5L7
6,483,206(433,s2s,364)
L9,L42,875
(L,176,1441
346,327,?59
(16,495,001)
17,966,728
(70,222,454)
329,832,358
34
20
7,744,273
.1.,403,557
6,340,7L5
1,225,747
329,832,358(73,s80,877)
255,25L,481
(73,412,370)
7,565,963 242,839,LLL
7,56F!89? 242,839,17L
191,395,001 125,905,280
Earnings per share(EPS) 0.04
The occompanying notes form an integrol port of this financiol stotements and ore to be read in conjunction therewith.
37 1.93
,;kQ:*
ctriet rin5iatofficer
Director
Signed in terms of our separote report of even dote onnexed,
Dated; Dhaka
October 28,2020
\l
Uddin Ahmed FCA
Senior Partner
MABS & J PartnersChartered Accountants
Amount in BDT
2019-2020 20L8-20L9
(46,s00,993) (67,143,635)
10
Secretary
Golden Harvest Agro lndustries LimitedStatement of Profit or Loss and Other Comprehensive lncome
For the year ended 30 June 2020
NotesParticulars
Revenue
Cost of goods sold
Gross profit
Operating expenses
Administrative expenses
Selling and distribution expenses
Other operating income
Fair value gain from biological assets
Profit from operations
Finance income
Finance expenses
Net profit from operations
Contribution to WPPF
lncome before share of non-consolidated companies
and income tax
Share of profit from subsidiary
Share of profit / (loss) from associates
Net profit before tax
lncome tax expenses
Net profit after taxProfit after tax attributable to Ordinary Shareholders of the
Company
Other comprehensive income
Total comprehensive income
27A284
29430A
314
8.A1.1
32A33A
352,758,053
72,686,708
2,774,970
4L8,794,232
49,708,!09
2,622,687
838,L60,294(485,392,247)
872,705,727
(4s3,911,49s)
L64,202,68377,889,545
(7s7,393,209)
350,531,3351,905,691
(787,442,4s31
24,699,OLg
(7,776,744)
L70,994,574
(8,742,599)
23,s22,87s
(3,675,4471
(10,222,4541
L62,85L,975
770,035,47035
36
34A
g,624,9g0
(2,059,116)
272,887,445
(30,048,33s)
7,555,963 242,839,7L0
7,565,863 242,839,770
7,565,963 242,839,LLo
Earnings per share (EPS) 37A 0.04
The accomponying notes form on integral port of this finonciol stotements and are to be reod in conjunction therewith.
1.93
OirN,. _k_ Director{ ,2, U:'"-'-*uDirector&
a).w
Finaniia tChief lOfficer3 ;'ec ;", ierms of our seporote report of even dote onnexed.
l-:::r 28,2020Nasir Uddin Ahmed FCA
Senior Partner
MABS & J PartnersChartered Accountants
Amount in BDT
20L8-20L920L9-2020
(43,681,548) (40,180,635)
11
ny Secretary
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Particulars
Cash flows from operating activities
Collections from customers and others
Payments for operating costs and other expenses
Tax paid
Net cash generated from operating activities
Cash flows from investing activitiesAcquisitions of property, plant and equipment
Acquisitions of intangible assets
Acquisitions / proceed from Biological assets
Capital work in progress
Proceed from disposal of PPE
Advance against flat purchase
Advance against land purchase
lnvestment in associates
Advance finance to contract farmers, sister concern & others
Net cash used in investing activities
Cash flows from financing activitiesPayment against finance lease
Borrowings f rom ba n ks/financial institutions
Finance cost paid
Right share issue cost
lssuance of right share
lssue of ordinary shares
Payment of cash dividend
lssue Cost of ordinary shares
Net cash provided from financing activities
Net changes in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Disposal of subsidiary company
Cash and cash equivalents at the end of the year
Golden Harvest Agro lndustries LimitedConsolidated Statement of Cash Flows
For the year ended 30 June 2020
Notes
40
Amount in BDT
2019-2020 2018-2019
887,625,465(7s0,274,823]'
(7s,70L,3921
2,755,143,442(1,686,90s,789)
(49,689,424],
121,7o9,25O 418,548,229
(47,307,Ls7],
(1.4,924,4931
23,628,521(268,477,773],
345,600
(411,519,908)
(3,774,ss21
.78,763,769)
(32,631,8s3)
(121,s00,000)
(1s,300,000)
217,475,960
(33,6ss,038)
(22,s88,s37],
1356,972,877l, 1445,953,522l.
(7,787,9161
(244,244,343)
(L84,267,8691
(33,328,s39)
298,694,290(432,008,90 1)
( 12 1,898)
ss0,000,000
(234,960)
888,272,750
(4s,494,741)
407,078,482
777,814,849
370,122,926(136,702,989)
405,234,786
Number of share used to calculate NOCFPS
Net operating cash flow per share (NOCFPS)
The accomponying notes form on integral port of this finonciol stotements ond ore to be read in conjunction therewith.
382,999,993
370,L22,926
191,39s,001 125,905,280
39 0.64 3.32
Oir. r.
{, Z" (;\n^-H^"u^DDirector -K:rDirector
.rir
L'e1 lrnanctal
I -:::'lt 2C20
Dhaka
Officer
14
n\-l
Secretary
355,594,699
74,528,227
Pa rticu la rs
Cash flows from operating activities
Collections from customers and others
Payments for operating costs & other expenses
Tax paid
Net cash generated from operating activities
Cash flows from investing activities
Acquisitions of property, plant and equipment
Proceed from disPosal of PPE
Proceed from disPosal of CWIP
Acquisitions of intangible assets
Acquisitions / proceed from Biological assets
Proceed from disposal of leased assets
Capital work in Progress
I nvestment in associates
Advance finance to contract farmers & others
Net cash used in investing activities
Cash flows from financing activities
Payment against finance lease
Borrowi ngs f rom banks/financial institutions/Sister concern
Share premium
Payment of cash dividend
Right share issue cost
lssuance of right share
Finance cost paid
Net cash provided from financing activities
Net changes in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Number of share used to calculate NOCFPS
Net operating cash flow per share (NOCFPS)
Director
Golden Harvest Agro lndustries LimitedStatement of Cash Flows
For the Year ended 30 June 2020
NotesAmount in BDT
20t9-2020 2018-2019
841.,144,629
(712,9s6,267],
(t5,701,392)
867,389,407
(674,639,970\
(26,420,806)
40A LLz,486,97O 160,328,631
(41,786,287],
345,600
(74,924,493)
L5,874,747
(268,477,773)
(33,6ss,038)
(23,206,027)
(1.7,077,096\
(46,270,907)
(14,700,000)
(6,239,049)
(7,187,9761
(2s6,198,188)
(45,494,74L\
888,272,7s0
155,978,850)
(8,s90,6s3)
359,537,487
(12 1,898)
(180,6s8,080)
170,156,850423,413,656
777,505,378
231,495,523
229,062,407
2,433,Lt6
191,395,001 125,905,280
39A 0.s9
The occompanying notes form an integral part of this financial statements ond ore to be reod in coniunction therewith'
OirN,t,'r,, ,K,,Ma rector
k.Chief
Dated; Dhaka
October 28,2020
I Officer
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_____--1849q991- _______231.?48l,szZ_
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Gotden Harvest Agro lndust'ries LimitedNotes to the Financial Statements
For the Year ended 30 June 2020
Reporting entitY
Group ProfileGolden Harvest Agro Industries Limited was incorporated on August 10,2oo4 as a private limited
company; vide Reg. No.-C-53850 (515\/2OO4under the companies Act, 1994 and converted to public
limited company on 30 June 2010. The Group has been listed to both the Dhaka stock Exchange Ltd'
andChittagongStockExchangeLtd.on04lVlarch2Ol3.Theprincipalplaceofbusinessandtheheadoffice of the Group are at Shanta western Tower, Level # 5, Space code # 502' 186' Gulshan'
Tejgaon Link Road, Tejgaon lndustrial Area, Dhaka-1208. The registered office and factory is located
at Bokran, Monipur, Bobanipur, Gazipur Sadar' Gazipur'
Nature of Business ActivitiesThe Company owns and operates the business of growing, procuring' purchasing' processlng'
packaging, warehousing, transporting, exporting, importing, distributing and selling agriculture
based food, food products, vegetable processing. As perthe object clause of the Memorandum the
Company could also establish any industrial piocessing unit based on agro based raw materials
products within the country and export the same or meet local demand'
Subsidiarysubsidiary is entity controlled by the Golden Harvest Agro lndustries Limited. An investor controls
an investee when it is exposed to, or has rights, to variable returns from its involvement with the
entity and has the ability to affect those returns through its power over the entity'
Golden Harvest Dairy Limited
Golden Harvest Dairy Limited has incorporated on 18 February 2015, vide Reg' No'-C-127268/t5
under the companies Act, L994 as a private limited company. Golden Harvest Agro lndustries
Limited acquired 75.o0%of shares of Golden Harvest Dairy Limited'
The objectives of the company will process Liquid Milk and milk based product like butter' cream'
cheese, yogurt, etc. The project will not be for milk collection only it will support in meat processing
and calf selling.
AssociatesTwo associates are the entities in which Golden Harvest Agro lndustries Limited (GHAIL) has
significant influence whereby the parties that have control of the arrangement have rights to the
net assets of the arrangement. GHAIL uses the equity method to account for its investment in
associates and in its financial statement in accordance with IAS-28 "lnvestment in Associates and
Joint Ventures". Golden Harvest lce Cream Limited and Golden Harvest QSR Limited are the
associates of the GrouP.
Golden Harvest lce cream Limited (Previous name was Golden Harvest sea Food and Fish
Processing Limited)
c: cen Harvest lce cream Limited formerly known as Golden Harvest sea Food and Fish Processing
- -rted was incorporated on January 05, 2005, vide Reg' No'-C-55601(22851105 under the
,3c-canies Act, 1994. The objectives of the Group are to carry out the business' promote &
:s:a: ish factories, distribution ice cream, ciairy and allied products in Bangladesh and setting
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ventures and business is in connection therewith. Golden Harvest Agro lndustries Limited is holding
45% of shares of Golden Harvest lce Cream Limited'
Golden Harvest QSR Limited
Golden Harvest Q5R Limited has incorporated 04 February 2015; vide Reg. No.-C-128718/201,6
under the companles Act, 1994 as a Private Limited company' Golden Harvest Agro lndustries
Limited acquired 3o.oo%of shares of Golden Harvest QSR Limited. Investment is initially recognized
at cost and subsequently measured at equity method'
1.3 Date of Authorization for issue
The financial statements of Golden Harvest Agro industries Ltd. for the year ended 30th June 2020
were authorized for issue in accordance with a resolution of the Board of Directors on 28th October
2020
L.4 RePorting Period
The reporting period of the Group has covered one year from 1" July 2019 to 3Oth June 2020'
2. Basis of Preparation of Financial Statements
2.L Statement on Compliance with Local Laws
The financial statements have been prepared in compliance with the requirements of the
companlesAct,lgg4,securitiesandExchangeRules,lg8Tandotherrelevantlocallawsasapplicable.
2.zstatementonComplianceofFinancialReportingStandardsThe financial statements have been prepared in accordance with lnternational Financial Reporting
Standards (IFRS).
2.3BasisofMeasurementofElementsofFinancialStatementsMeasurement is the process of determining the monetary amounts at which the elements of the
financial statements are to be recognized and carried in the statement of financial position and
profit or loss and other comprehensive income. The measurement basis adopted by Golden Harvest
Agro lndustries Limited is historical cost except for land, building and plant and machinery which
are stated at revalued amount, inventories are at the lower of cost and net realizable value and
marketable securities are at market value. Under the historical cost, assets are recorded at the
amount of cash or cash equivalents paid or the fairvalue of the consideration given to acquire them
at the time of their acquisition. Liabilities are recorded at the amount of proceeds received in
exchange for the obligation, or in some circumstances (for example, income taxes), at the amounts
of cash or cash equivalents expected to be paid to satisfy the liability in the normal course of
business.
2.4 Basis of ConsolidationGroup accounts are prepared on the basis that the parent and subsidiaries are a single entity as per
=RS-1C "Frnancial Statements". This reflects the economic substances of the group arrangement'
r^- -r^! ^ financial statements include the financial statements of GHAIL and subsidiaries that ittr : uuP
:c -rro s. GHAIL prepares financial statements using uniform accounting policies for like transactions
a-: :ther events in similar circumstances. Consolidation of an investee shall begin from the date
:-: ,-,jestor obtains control of the investee and cease when the investor loses control of the
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GHAIL presents non-controlling interests in the statement of financial position within equity'
separately from the equity of the owners of GHAIL' Changes in GHAIL ownership interest in a
subsidiary that do not result in losing control of the subsidiary are equity transactions (i'e'
transactions with owners in their capacity as owners)'
Consolidation Procedures
with those of its subsidiaries'
parent's portion of equity of each subsidiary'
relating to transactions between entities of the group (profits or losses resulting from
intergroup transactions that are recognized in assets, such as inventory and fixed assets' are
eliminated in full). lntergroup losses may indicate an impairment that requires recognition in
the financial statements.
Loss of control of Subsidiaries
lf GHAIL loses control over its subsidiaries, GHAIL:
position.
andforanyamountsowedbyortotheformersubsidiaryinaccordancewithrelevantlFRSs.
controlling interest.
lnvestment in subsidiaries and associates in GHAIL separate financial statements
when GHAIL prepares separate financial statements, the GHAIL using the equity method for
investment in subsidiaries and associates:
2.5
2.6
Going Concern
At each year end management of the group makes assessment of going concern as required by IAS-
1. The company has adequate resources to continue in operation for the foreseeable future and has
wide coverage of its liabilities. For this reason, the directors continue to adopt going concern
assumption while preparing the financial statements'
Accrual Basis of Accounting
GHAIL prepares its financial statements, except for cash flow information, using the accrual basis of
accounting. since the accrual basis of accounting is used, GHAIL recognizes items as assets'
,abirities, equity, income and expenses (the erements of financiar statements) when they satisfy the
definitions and recognition criteria for those elements in the framework'
Functional and presentation currency
The financial statements are prepared and presented in Bangladesh Taka/BDT, which is the Group's
functional currency. The Group earns its major revenues in BDT and all other incomes/expenses and
transactions are in BDT and the competitive forces and regulations of Bangladesh determine the
sale prices of its goods and services. Further, the entire funds from financing activities are
Dhaka
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generated in BDT.
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Foreign cu rrency translationForeign currency transactions are booked in the functional currency of the Group at the exchange
rate ruling on the date of transaction. Foreign currency monetary assets and liabilities are
retranslated into the functional currency at rates of exchange at the balance sheet date. Exchange
differences are included in the income statement.
2.8 Materia lity and AggregationEach material class of similar items is presented separately in the financial statements. ltems of a
dissimilar nature or function are presented separately unless they are immaterial
2.9 OffsettingGHAIL does not offset assets and liabilities or income and expenses, unless required or permitted by
an IFRS.
z.LO Comparative lnformation and Rearrangement thereofComparative information has been disclosed in respect of the previous year for all numerical
information in the financial Statements and also the narrative and descriptive information when it is
relevant for understanding of the current year financial statements. Previous year figure has been
re-arranged whenever considered necessary to ensure comparability with the current year's
presentation as per IAS-8:" Accounting Policies, Changes in Accounting Estimates and Errors"
2.tL Use of Estimates and JudgmentsThe preparation of financial statements in conformity with lnternational Financial Reporting
Standards requires management to make judgments, estimates and assumptions that affect the
application of accounting policies and the reported amounts of assets, liabilities, income and
expenses and for contingent assets and liabilities that require disclosure, during and at the date ofthe financial statements.
Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions of accounting estimates are recognized in the period in which the
estimate is revised and in any future periods affected as required by IAS 8: "Accounting Policies,
Changes in Accounting Estimates and Errors"
ln particular, significant areas of estimation uncertainty and critical judgments in applying
accounting policies that have the most significant effect on the amounts recognized in the financial
statements include depreciation, amortization, impairment, net realizable value of inventories ,
accruals, taxation and provision.
2.72 Changes in Accounting Policies, Estimate and Errors
The effect of a change in an accounting estimate shall be recognized prospectively by including it inprofit or loss in:
a t the period of the change, if the change affects that period only; orb the period ofthe change and future periods, ifthe change affects both.
Tc the extent that a change in an accounting estimate gives rise to changes in assets and liabilities,
or i-elates to an item of equity, it shall be recognized by adjusting the carrying amount of the related
asset, liability or equity item in the period of the change.
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2.L3
Changesinaccountingpo|iciesandmaterialpriorperioderrorsshallberetrospectivelycorrectedinthe first financial statlments authorized for issue after their discovery by:
(a) restating the comparative amounts for the prior period(s) presented in which the error occurred;
or(b)iftheerroroCCurredbeforetheearliestpriorperiodpresented,restatingtheopeningbalances
of assets, riabirities and equity for the earliest prior period presented'
Structure, Content and Presentation of Financial Statements
The Financial Statements of Golden Harvest Agro lndustries Ltd., as at and for the year ended 30
June 2020 comprise the group and its subsidiar'ls namery Gorden Harvest Dairy Ltd. and also Golden
Harvest lce Cream Ltd. & Golden Harvest QSR (together referred to as the 'Group' as per IFRS-10
Financial statements) as per IAS 2g lnvestment in Associate. Being the general-purpose financial
statements, the presentation of these financial statements is in accordance with the guidelines
provided by lAs 1: "Presentation of Financial statements"' A complete set of financial statements
comprise
i)
ii)ilr)
iv)v)
Statement of financial position as at 30 June 2020;
Statement of profit o.. io5 and other comprehensive lncome for the year ended 30 June 2020;
Statement of changes in equity for the year ended 30 June 2020;
Statement of cash flows foithe year ended 30 June 2020; and
Notes comprising a summary of significant accounting policies and other explanatory
information to the accounts for the year ended 30 June 2020'
Summary of Significant Accounting Policies
The accounting policies set out below are consistent with those used in the previous year'
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with
the policies adopted by the Golden Harvest Agro lndustries Limited'
Changes in accounting Policies
The Group changes its accounting policy only if the change is required by an IFRS or results in the
financial statements providing reliable and more relevant information about the effects of
transactions,othereventsorconditionsontheGroup,sfinancialposition,financialperformanceorcash flows. changes in accounting policies is to be made through retrospective application by
adjusting opening balance of each affected components of equity i'e' as if new policy has always
3
been aPPlied.
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3.1 lmplementation of IFRS 16'Lease'lmplementation of IFRS 16 and its relevant assumptions and disclosures IFRS 16: "Leases" has come
into force on l- January 2019, as adopted by the lnstitute of Chartered Accountants of Bangladesh
(;CAB). Golden Harvest Agro lndustries Limited applied IFRS 1-6 where the Company measured the
lease liability at the present value of the remaining lease payments, discounted it using incremental
borrowing rate at the date of initial application, and recognized a right-of-use asset at the date of
the initial application on a lease by lease basis.
Right-of use Assets:
The Company recognizes right-of-use assets at the date of initial application of IFRS 16. Right-of-use
assets are measured at cost, less any accumulated depreciation. Right-of-use asset is depreciated on
a straight-line basis over the lease term. The right-of-use asset is presented under property, plant
and equipment.
Lease Liabilities:At the commencement date of the lease, the Company recognizes lease liability measured at the
present value of lease payments to be made over the lease term using incremental borrowing rate of
9% at the date of initial application. Lease liability is measured by increasing the carrying amount to
reflect interest on the lease liability, reducing the carrying amount to reflect the lease payments.
lnterest on the lease liability in each period during the lease term shall be the amount that produces
a constant periodic rate of interest on the remaining balance of the lease liability.
lmplementation of IFRS 9'Financial lnstruments'The Group has applied IFRS 9 'Financial lnstruments' with effect from 1't July 2018. IFRS 9 introduces
new requirements forthe classification and measurement of financial assets and financial liabilities
and impairments for financial assets. Details of these new requirements as well as their impact on
the Group's consolidated financial statements are described below. The Group has adopted IFRS 9
retrospectively but with certain permitted exceptions as detailed below:
Classification and measurement of financial assets
The date of initial application was 1't July 2018. The Group has not applied the requirements of IFRS
9 to instruments that were derecognized prior to 1't July 2018 and has not restated prior years. Any
difference between the previous carrying amount and the revised carrying amount at lst July 20L8
has been recognized as an adjustment to opening retained earnings at 1st July 2018.
All flnancial assets that are within the scope of IFRS 9 are required to be measured at amortized cost
c r f a lr ,,,a lue, with movements through other comprehensive income or the income statement on the
:as s of the Group's business modelfor managing the financial assets and the contractual cash flow::,'acteristics of the financial assets.
IFRS t had the following impact on the Group's assets:
. --: Group's trade receivables were all classified as financial assets measured at amortized cost
*-::. ltS 39. Under IFRS 9, the business model underwhich each portfolio of trade receivables held
-: j :-.:r'r assessed. The Group has a portfolio of trade receivables that is being managed within a
:-) -:ss model whose objective is to collect contractual cash flows, and are measured at amortized
::s: --erewerenomaterial changesincarryingvalueoffinancial assetsasaresultofthesechanges- ^-=:s-'errent basis.
Dhaka
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. IFRS g requires an expected credit loss (ECL) model to be applied to financial assets rather than the
incurred credit loss model required under IAS 39. The expected credit loss model requires the Group
to account for expected losses as a result of credit risk on initial recognition of financial assets and to
recognize changes in those expected credit losses at each reporting date. The Group recognizes a
loss allowance on trade receivables based on lifetime expected credit losses.
Implementation of IFRS 15 'Revenue from Contracts with Customers'
The Group has applied IFRS 15 'Revenue from Contracts with Customers' with effect from 1 July
2018. IFRS 15 provides a single, principles-based approach to the recognition of revenue from all
contracts with customers. lt focuses on the identification of performance obligations in a contract
and requires revenue to be recognized when or as those performance obligations are satisfied.
The Group has adopted IFRS 15 applying the modified retrospective approach. IFRS 15 did not have a
material impact on the amount or timing of recognition of reported revenue. ln accordance with the
requirements of IFRS 15 where the modified retrospective approach is adopted, prior year results
have not been restated.
Changes in accounting estimatesEstrmates arise because of uncertainties inherent within them, judgment is required but this does
not undermine reliability. Effect of changes of accounting estimates is included in profit or loss
a cco u nt.
Correction of error in prior period financial statementsThe Group corrects material prior period errors retrospectively by restating the comparative
amounts for the prior period(s) presented in which the error occurred; or if the error occurred
before the earliest prior period presented, restating the opening balances of assets, liabilities and
equity for the earliest prior period presented.
3.2 Property, Plant and Equipment
lnitial Recognition and MeasurementAn item shall be recognized as property, plant and equipment if, and only it is probable that futureeconomic benefits associated with the item will flow to the entity, and the cost of the item can be
measured reliably IAS 16.
Property, plant and equipment are initially recognized at cost and subsequently land, buildings &
civil constructions and plant & machineries are stated at fair value. The property, plant and
equipment are presented at cost/fair value, net of accumulated depreciation and/or accumulated
impairment losses, if any. The cost of an item of property, plant and equipment comprises its
purchase price, import duties and non-refundable taxes, after deducting trade discount and
rebates, and any costs directly attributable to bringing the asset to the location and condition
necessary for it to be capable of operating in the intended manner. The cost also includes the cost
of replacing part of the property, plant and equipment and borrowing costs for long-term debt
availed for the construction/lmplementation of the PPE, if the recognition criteria are met.
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The cost of replacing part of an item of property, plant and equipment is recognized in the carrying
amount of an item if it is probable that the future economic benefits embodied within the part will
flow to the Group and its cost can be measured reliably. The costs of the day-to-day servicing ofproperty, plant and equipment are recognized in the profit and loss account as 'Repair &Maintenance 'when it is incurred.
Subsequent MeasurementProperty, Plant and equipment are disclosed at cost less accumulated depreciation consistently over
years. On 30 June 2009, 30 June 20L1 and 30 June 2013. Land and land developments, building and
other constructions and Plant and Machinery have been revalued to reflect fair value (prevailing
market price) thereof following "Current Cost Method".
Depreciation on Property, Plant and EquipmentDepreciation is provided to amortize the cost or valuation of the assets after commissioning, over
the period of their expected useful lives, in accordance with the provisions of IAS 16: Property Plant
and Equipment. Depreciation of an asset begins when it is available for use, i.e. when it is in the
location and condition necessary for it to be capable of operating in the manner intended by
management. Depreciation is charged on all property, plant and equipment except land and land
developments on reducing balance method at the following rates:
Particular of Assets Rate of Depreciation
Buildings and other constructions 25%Plant & Machinery s.o%
Office Equipment 10%
10%
Vehicle 10%
Freezer 10%
Revaluation of Propefi, Plant and Equipment of Golden Harvest Agro lndustries LimitedThe group made revaluation of the Group's Land and Land developments, Buildings and Plant and
Machinery as of 30 June 2009, 30 June 2011 and 30 June 2013 to reflect fair value thereof in termsof Depreciated current cost thereof. The revaluation has conducted by Ata Khan & Co, Chartered
Acco u nta nts.
The increase in the carrying amount of revalued assets is recognized in other comprehensive
income under the head revaluation surplus. Other Fixed Assets were kept outside the scope ofrevaluation works. These are expected to be realizable at written down value (WDV) thereofmentioned in the statement of financial position of the Group.
Ca pita I work-in-progressCapital work in progress represents the cost incurred for acquisition and construction of items ofproperty, plant and equipment that were not ready for use at the end of 30 June 2019 and these
r^rere stated at cost. In case of import components, capital work in progress is recognized when
risks and rewarCs associated with such assets are transferred to the Group, i.e. at the time ofshipment is confirmed by the supplier.
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3.4 lntangible Assets
RecognitionThe recognition of an item as an intangible asset requires GHAIL to demonstrate that the item
meets the definition of an intangible asset and the recognition criteria. An intangible asset is
recognized as an asset il and only if:
flow to GHAIL; and
MeasurementAn intangible asset is measure at cost less any accumulated amortizations and any accumulated
impairment losses. Subsequent expenditures are likely to maintain the expected future economic
benefits embodied in an existing intangible asset rather than meet the definition of an intangible
asset and the recognition criteria. ln addition, it is often difficult to attribute subsequent
expenditure directly to a particular intangible asset rather than to the business as a whole'
Therefore, expenditure incurred after the initial recognition of an acquired intangible asset or after
completion of an internally generated intangible asset is usually recognized in profit or loss as
incurred. This is because such expenditure cannot be distinguished from expenditure to develop
the business as a whole.
Separately acquired intangibles
The cost of a separately acquired intangible asset comprises:
trade discounts and rebates;
lnternally generated intangible assets
The cost of an internally generated intangible asset is the sum of expenditure incurred from the
date when the intangible asset first meets the recognition criteria. The cost of an internally
generated intangible asset comprises all directly attributable costs necessary to create, produce,
and prepare the asset to be capable of operating in the manner intended by management.
Research Phase
No intangible asset arising from research (or from the research phase of an internal project) is
recognized. Expenditure on research (oronthe research phase of an internal project) is recognized
as an expense when it is incurred.
Development Phase
An intangible asset arising from development (or from the development phase of an internal
project) is recognized in IAS-38, "lntangible assets".
The Group's intangible assets include computer software development (ERP), Design, construction
and development of products, Augmented Reality.
lnternally generated brands, mastheads, publishing titles, customer lists and items similar in
substance are not recognized as intangible.
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\,Recognition of an exPense
ln some cases, expenditure is incurred to provide future economic benefits to an entity, but no
intangible asset or other asset is acquired or created that can be recognized. For example,
expenditure on research is recognized as an expense when it is incurred, except when it is acquired
as part of a business combination. Other examples of expenditure that is recognized as an expense
when it is incurred include:
Past expensesExpenditure on an intangible item that was initially recognized as an expense is not recognized as
part of the cost of an intangible asset at a later date.
Reva luation of intangiblesThe revaluation model requires an intangible asset shall be carried at a revalued amount, being its
fair value at the date of the revaluation less any subsequent accumulated amortization and any
subsequent accumulated impairment losses. However, fair value shall be measured by reference to
an active market. The revaluation model does not allow the revaluation of intangible assets that
have not previously been recognized as assets; or the initial recognition of intangible assets at
amounts other than cost.
AmortizationThe depreciable amount of an intangible asset with a finite useful life shall be allocated on a
systematic basis over its useful life. Amortization begin when the asset is available for use, i.e.
when it is in the location and condition necessary for it to be capable of operating in the manner
intended by management. Amortization cease at the earlier of the date that the asset is classified
as held for sale and the date that the asset is derecognized. An intangible asset with an indefinite
useful life is not amortized.
Amortization of the intangible asset with a finite useful life is calculated using the reducing balance
method to write down the cost of intangible assets to their residual values over their estimated
useful lives as follows:
Particulars Rate
Software (at develo ment ) 10%
Design, construction and development of plgqllE 10%
Augmented Reality LO%
Derecognition of intangible assets
The carrying amount of an item of intangible assets is derecognized on disposal or when no future
economic benefits are expected from its use or disposal. The gain or loss arising from the
derecognition of an item of intangible assets is included as other income in profit or loss when the
item is derecognized. When the revalued assets are disposed of, the respective revaluation surplus
ls transferred to retained earnings.
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3.5 BiologicalAsset
Recognition and measurementBiological asset is a living plant or animal. Biological asset is measured at fair value less costs to sell,
both on initial recognition and each reporting date. Cost to sell includes sale commission and
regulatory levies but exclude transport to market. Transport costs are in fact deducted from market
value in order to reach fair value. The gain on initial recognition and from a change in this value is
recognized in profit or loss. The interest on the loan taken out to finance the acquisition is not a
cost to sell. The milk is agriculture product and is recognized initially under IAS-41- at fair value less
cost to sell. (at this point it is taken into inventories and dealt with under IAS-2). The gain on initial
recognition should be recognized in profit or loss.
3.5 lmpairment of Assets
Recognizing and measuring impairment loss
lf the recoverable amount of an asset is less than it's carrying amount, the carrying amount of the
asset is reduced to its recoverable amount. That reduction is an impairment loss. An impairment
loss on a non-revalued asset is recognized in profit or loss. However, an impairment loss on a
revalued asset is recognized in other comprehensive income to the extent that the impairment loss
does not exceed the amount in the revaluation surplus for that same asset. Such an impairment loss
on a revalued asset reduces the revaluation surplus for that asset.
GHAIL assesses at the end of each reporting period whether there is any indication that an asset
may be impaired. lf any such indication exists, GHAlLestimate the recoverable amount of the asset.
lrrespective of whether there is any indication of impairment, GHAIL tests:
P an intangible asset with an indefinite useful life or an intangible asset not yet available for use
for impairment annually
Capitalization of Borrowing Cost
Borrowing costs directly attributable to the acquisition, construction or production of an asset thatnecessarily takes a substantial period of time to get ready for its intended use or sale are capitalized
as part of the cost of the asset. All other borrowing costs are expensed in the period in which theyoccur in accordance with IAS 23: "Borrowing cost". Borrowing costs consist of interest and othercosts that an entity incurs in connection with the borrowing of funds.
RecognitionGHAIL capitalizes borrowing costs that are directly attributable to the acquisition, construction orproduction of a qualifying asset as part of the cost of that asset. GHAIL recognizes other borrowingcosts as an expense in the period in which it incurs them.
Borrowing costs eligible for capitalizationThe borrowing costs that are directly attributable to the acquisition, construction or production of a
qualifying asset are those borrowing costs that would have been avoided if the expenditure on thequalifying asset had not been made.
To the extent that GHAIL borrows funds specifically for the purpose of obtaining a qualifying asset,
GHAIL determines the amount of borrowing costs eligible for capitalization as the actual borrowing
costs incurred on that borrowing during the period less any investment income on the temporaryi nvestment of those borrowings
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Commencement of capitalizationGHAIL begins capitalizing borrowing costs as part of the cost of a qualifying asset on the
commencement date. The commencement date for capitalization is the date when the GHAlLfirst
meets all of the following conditions:
Cessation of capitalizationGHAIL ceases capitalizing borrowing costs when substantially all the activities necessary to prepare
the qualifying asset for its intended use or sale are complete.
3.8 Financial instruments
3.8.1 Financial assets
Investment in sharesThe Group has elected to designate equity investments as measured at Fair Value through Other
Comprehensive lncome (FVTOCI). They are initially recorded at fair value plus transaction costs and
then remeasured at subsequent reporting dates to fair value. Unrealized gains and losses are
recognized in other comprehensive income. On disposal of the equity investment, gains and losses
that have been deferred in other comprehensive income are transferred directly to retained
ea rnings.
Dividends on equity investments and distributions from funds are recognized in the income
statement when the Group's right to receive payment is established.
lnvestment in fixed deposit receiptFixed deposit, comprising funds held with banks and other financial institutions, are initiallymeasured at fair value, plus direct transaction costs, and are subsequently measured at amortized
cost using the effective interest method at each reporting date. Changes in carrying value are
recognized in profit.
Trade receivablesTrade receivables are measured in accordance with the business model underwhich each portfolio
of trade receivable is held. The Group has a portfolio of trade receivables that is being managed
wrthin a business model whose objective is to collect contractual cash flows, and are measured at
an"ortized cost. Trade receivables measured at amortized cost are carried at the original invoice
a . o u nt less a llowa nce for expected credit losses.
!',:e:teC credit losses are calculated in accordance with the simplified approach permitted by IFRS
3 -s ,rg a pi'ovision matrix applying lifetime historicalcredit loss experience to the trade receivables.
-f-: expected credit loss rate varies depending on whether and the extent to which settlement of
:-::rade receivables is overdue and it is also adjusted as appropriate to reflect current economic
:i.,Ji:ions and estimates of future conditions. For the purpose of determining credit loss rates,
:-si3mers are classified into groupings that have similar loss patterns. The key drivers of the loss
'.:. ?t? the nature of the business unit and the location and type of customer
When a trade receivable is determined to have no reasonable expectation of recovery it is written
off, firstly against any expected credit loss allowance available and then to the income statement'
subsequent recoveries of amounts previously provided for or written off are credited to the income
statement.
Cash and cash equivalents
Cash and cash equivalents comprise cash in hand, balances with banks and financial institutions' and
highly liquid investments with maturities of three months or less when acquired' They are readily
convertible into known amounts of cash and are held at amortized cost under the hold to collect
classification, where they meet the hold to collect "solely payments of principals and interests" test
criteria under IFRS 9. Those not meeting these criteria are held at fair value through profit and loss'
3.8.2 Financialliabilities
BorrowingsAll borrowings are initially recorded at the amount of proceeds received, net of transaction costs'
Borrowings are subsequently carried at amortized cost, with the difference between the proceeds'
net of transaction costs, and the amount due on redemption being recognized as a charge to the
income statement over the period of the relevant borrowing.
Trade payables
Trade payables are recognized initially at fair value. Subsequent to initial recognition they are
measured at amortized cost using the effective interest method.
lmpairment of financial assets
IFRS g requires an expected credit loss (ECL) model to be applied to financial assets rather than the
incurred credit loss model required under IAS 39. The expected credit loss model requires the Group
to account for expected losses as a result of credit risk on initial recognition of financial assets and to
recognize changes in those expected credit losses at each reporting date. The Group recognizes a
loss allowance on trade receivables based on lifetime expected credit losses.
3.9 lnventories
Measurementlnventories are measured at the lower of cost and net realizable value
Cost of inventoriesThe cost of inventories comprises all costs of purchase, costs of conversion and other costs incurred
in bringing the inventories to their present location and condition.
Cost formulasThe cost of inventories is assigned by using the first-in, first-out (FIFO) cost formula. GHAIL shall use
the same cost formula for all inventories having a similar nature and use to the entity.
The FlFo formula assumes that the items of inventory that were purchased or produced first are
sold first, and consequently the items remaining in inventory at the end of the period are those
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Recognition as an expense
When inventories are sold, the carrying amount of those inventories is recognized as an expense in
the period in which the related revenue is recognized. The amount of any write-down of inventories
to net realizable value and all losses of inventories is recognized as an expense in the period the
write-down or loss occurs. The amount of any reversal of any write-down of inventories, arising
from an increase in net realizable value, is recognized as a reduction in the number of inventories
recognized as an expense in the period in which the reversal occurs.
Trade and Other Receivables
Trade and other receivables are stated at their estimated realizable amounts inclusive of provisions
for bad and doubtful debts
Cash and Cash EquivalentsCash and cash equivalents consist of cash in hand and with banks on current deposit accounts and
short-term investments (FDR for the period of 1 to 3 months) which are held and available for use
by the Group without any restriction. There is insignificant risk of change in value of the same.
Calculation of Recoverable AmountThe recoverable amount of an asset or cash-generating unit is the greater of its value in use and its
fair value, less cost to sell. ln assessing value in use, estimated future cash flows are discounted to
their present value using a pre-tax discount rate that reflects current market assessments of the
time value of money and the risks specific to the asset. A cash-generating unit is the smallest
identifiable asset group that generates cash flows that are largely independent from other assets
and groups.
Provisions, accruals and contingencies
Recognition
ProvisionsA provision is recognized when:
settle the obligation; and't a reliable estimate can be made of the amount of the obligation.
lf these conditions are not met, no provision is recognized
AccrualsAccruals are liabilities to pay for goods or services that have been received or supplied but have
nct been paid, invoiced orformally agreed with the supplier, including amount due to employees.
Contingent LiabilitiesGtAIL does not recognize a contingent liability. A contingent liability is disclosed, unless the
ccsslbility of an outflow of resources embodying economic benefits is remote.
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Contingent Asset
GHAIL does not recognize a contingent asset. Contingent assets usually arise from unplanned or
other unexpected events that give rise to the possibility of an inflow of economic benefits to
GHAIL.
MeasurementThe amount recognized as a provision is the best estimate of the expenditure required to settle the
present obligation at the end of the reporting perlod.
Changes in provisionsprovisions is reviewed at the end of each reporting period and adjusted to reflect the current best
estimate. lf it is no longer probable that an outflow of resources embodying economic benefits will
be required to settle the obligation, the provision is reversed.
Use of provisionsA provision is used only for expenditures for which the provision was originally recognized. Only
expenditures that relate to the original provision are set against it. Setting expenditures against a
provision that was originally recognized for another purpose would conceal the impact of two
different events.
Future operating losses
Provisions are not recognized for future operating losses. Future operating losses do not meet the
definition of a liability and the general recognition criteria set out for provisions.
Events Occurring after the Reporting Period
All material events after the statement of financial position date have been considered where
appropriate; either adjustments have been made or adequately disclosed in the note no. 41.09 of
financialstatements.
Earnings Per Share (EPS)
MeasurementBasic EPS
GHAIL calculates basic earnings per share amounts for profit or loss attributable to ordinary equity
holders of the parent entity.
Basic earnings per share has been calculated by dividing profit or loss attributable to ordinary
equity holders of the parent entity (the numerator) by the weighted average number of ordinary
shares outstanding (the denominator) during the period.
The Group's diluted earnings per share is same as basic earnings per share
Dividend distribution on ordinary share
Dividend distribution to the Group's shareholders is recognized as a liability in the group's financial
statements in the period in which the dividends are approved by the Group's shareholders
lncome StatementsFor the purpose of presentation of the lncome Statement, the function of expenses method is
adopted, as it represents fairly the elements of the Group's performance
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3.19
3.20
RevenueThe core principle of IFRS 15 is that an entity will recognize revenue to depict the transfer of
promised goods or services to customers in an amount that reflects the consideration to which the
entity expects to be entitled in exchange for those goods or services. This core principle is
delivered in a five-step model framework as follows;
i. ldentify the contract(s) with a customer;
ii. ldentify the performance obligations in the contract;
iii. Determine the transaction price;
iv. Allocate the transaction price to the performance obligations in the contract; and
v. Recognize revenue when (or as) the entity satisfies a performance obligation. However,
the comply has complied with the applicable requirements of IFRS 15 in recognizing
revenue.
Moreover, the entity assesses whether it transfers control over time by following prescribed
criteria for satisfying performance obligation. lf none of the criteria is met then the entity
recognizes revenue at point of time at which it transfers control of the goods to the customer.
Revenue is measured net of value added tax, trade discount, returns and allowances (if any). ln
case of cash delivery, revenue is recognized when delivery is made and cash is received by the
Company
Expenses
All expenditure incurred in the running of the business and in maintaining the properfy, plant &
equipment in a state of efficiency is charged to revenue in arriving at the profit/(loss) for the year.
Finance lncome and Expenses
Finance income comprises interest income on funds invested. lnterest income is recognized as it
accrues in profit or loss.
Finance costs comprise interest expense on borrowings, unwinding of the discount on provisions,
changes in the fair value of financial assets at fair value through profit or loss, and losses on
hedging instruments that are recognized in profit or loss. Borrowing costs that are not directly
attributable to the acquisition, construction or production of a qualifying asset are recognized in
profit or loss using the effective interest method.
The interest expense component of finance lease payments is allocated to each period during the
lease term so as to produce a constant periodic rate of interest on the remaining balance of the
liability.
Employee Benefits:The Company maintains provident fund for its eligible permanent employees. The eligibility is
determined according to the terms and conditions set forth in the respective agreements/trust
d eeds.
The Company has accounted for and disclosed employee benefits in compliance with the provision
of IAS 19: Employee Benefits
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The cost of employee benefit is charged off as revenue expenditure in the period to which the
contributions relate.
Workers' Profit Participation Fund (WPPF)
The Group provides applicable rate of its profit before tax after charging contribution to WPPF in
accordance with the Bangladesh Labor Act, 2006 (Amended up to 2015).
TaxationThe tax expense for the period comprises current tax and deferred tax. Tax is recognized in the
income statement, except in the case it relates to items recognized in other comprehensive
income or directly in equity. ln this case, the tax is also recognized in other comprehensive income
or directly in equity.
Current taxThe current income tax charge is calculated based on tax laws enacted or substantively enacted at
the balance sheet date. Management periodically evaluates positions taken in tax returns withrespect to situations in which applicable tax regulation is subject to interpretation. lt establishes
provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.
Deferred taxPrinciple of recognitionDeferred tax is recognized as income or an expense amount within the tax charge, and included in
the net profit or loss for the period.
Exceptions to recognition in profit or loss
Deferred tax relating to items dealt with as other comprehensive income (such as a revaluation) is
recognized as tax relating to other comprehensive income within the statement of profit or loss
and other comprehensive income.
Deferred tax relating to items dealt with directly in equity (such as the correction of an error orretrospective application of a change in accounting policy) is recognized directly in equity.
Deferred tax resulting from a business combination is included in the initial cost of goodwill
Taxable temporary differenceA deferred tax liability is recognized for all taxable differences, except to the extent that thedeferred tax liability arises from:
combination; and at the time of the transaction, affects neither accounting profit nor taxableprofit (tax loss).
Revaluations to fair value - property, plant and equipmentThe revaluation does not affect taxable profits in the period of revaluation and consequently, the
tax base of the asset is not adjusted. Hence a temporary difference arises. This is provided for in
full based on the difference between carrying amount and tax base. An upward revaluation is
therefore given rise to a deferred tax liability.
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Non-depreciated revalued assets
lf a deferred tax liability or deferred tax asset arises from a non-depreciable asset measured using
the revaluation model in IAS 16, the measurement of the deferred tax liability or deferred tax
asset shall reflect the tax consequences of recovering the carrying amount of the non-depreciable
asset through sale, regardless of the basis of measuring the carrying amount of that asset'
Accordingly, if the tax law specifies a tax rate applicable to the taxable amount derived from the
sale of an asset that differs from the tax rate applicable to the taxable amount derived from using
an asset, the former rate is applied in measuring the deferred tax liability or asset related to a non-
depreciable asset.
Revaluations to fair value - other assets
IFRS permit or require certain other assets to be revalued to fair value, such as certain financial
instruments and investment properties. lf the revaluation is recognized in profit or loss (e.g. fair
value through profit or loss instruments, investment properties) and the amount is taxable /allowable for tax, then no deferred tax arises as both the carrying value and the tax base are
adjusted. However, if the revaluation is recognized as othercomprehensive income (e'g' available-
for-sale instruments) and does not therefore impact taxable profits, then the tax base of the asset
is not adjusted and deferred tax arises. This deferred tax is also recognized as other
comprehensive income.
Deductible temporary difference
A deferred tax asset is recognized for all deductible temporary differences to the extent that it is
probable that taxable profit will be available against which the deductible temporary difference
can be utilized, unless the deferred tax asset arises from the initial recognition of an asset or
liability in a transaction that:
is not a business combination; and
at the time of the transaction, affects neither accounting profit nor taxable profit (tax loss)
Unused tax losses and unused tax credits
A deferred tax asset is recognized for the carry forward of unused tax losses and unused tax
credits to the extent that it is probable that future taxable profit will be available against which the
unused tax losses and unused tax credits can be utilized'
Statement of Cash Flows
The statement of cash flows has been prepared in accordance with the requirements of IAS 7:
statement of cash Flows. The cash generating from operating activities has been reported using
the Direct Method as prescribed by the Securities and Exchange Rules, 1987 and as the benchmark
treatment of IAS 7 whereby major classes of gross cash receipts and gross cash payments from
operating activities are disclosed.
Related Party Disclosures
The Group carried out a number of transactions with related parties. The information as required
by IAS 24: "Related party Disclosure" has been disclosed in a separate note to the accounts (Note-
41.3).
3.24
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3.26 Segment Reporting
Segmental information is provided for the different business segments of the Group. Business
segmentation has been determined based on the nature of goods provided by the Group afterconsidering the risk and rewards of each type of product.
Since the individual segments are located close to each other and operate in the same industrial
environment, the need for geographical segmentation has no material impact.
The activities of the segments are described on notes 40 in the Notes to the FinancialStatements.The group transfers products from one industry segment for use in another. lnter-segment
transfers are based on fair market prices.
Revenue and expenses directly attributable to each segment are allocated to the respective
segments. Revenue and expenses not directly attributable to a segment are allocated on the basis
of their resource utilization, wherever possible.
Assets and liabilities directly attributable to each segment are allocated to the respective
segments. Assets and liabilities, which are not directly attributable to a segment, are allocated on
a reasonable basis wherever possible.
Segment capital expenditure is the total cost incurred during the period to acquire segment assets
that are expected to be used for more than one accounting period.
All operating segments' operating results are reviewed regularly to make decisions aboutresources to be allocated to the segment and assess its performance and for which discretefina ncial information is available.
4
4.L
Risk Exposure
Financial risk managementGHAIL's activities are exposed to a variety of financial risks. The Company's financial riskmanagement centered upon using various tools and to manage exposure to risk, particularly creditrisk, liquidity risk, market risk, currency risk and interest rate risk. Similar to general risk
management, financial risk management requires identifying its sources, measuring it, and plans
to address them. Taking risk is in the core of the financial business, and operational risk is an
inevitable consequence of being in business. GHAIL's aim is therefore to achieve an appropriatebalance between risk and return and minimize potential adverse effects on GHAIL's financialperformance.
GHAIL's risk management policies are designed to identify and analyze these risks, to setappropriate risk limits and controls, and to monitor the risks and adhere to limits by means ofprudent risk management policies and application of reliable and up-to-date information systems.GHAIL regularly reviews its risk management policies and systems to reflect changes in products,markets, and emerging best practices.
Credit riskCredit risk is the risk that counterparty will not meet its obligations under a financial instrument orcustomer contract, leading to a financial loss. The senior management of GHAIL carefully manages
its exposure to credit risk. Credit exposures arise principally in receivables from customers' existing
4,2
4.3
4.4
in GHAIL's asset portfolio. The credit risk management and control are controlled through the
credit policies of GHAIL's which are updated regularly. The company is also exposed to other creditrisks arising from balances with banks which are controlled through board approved counterparty
limits.
Liquidity riskLiquidity risk is defined as the risk that the Company will not be able to settle or meet its
obligations on time or at a reasonable price.
The Company's approach to managing liquidity is to ensure, as far as possible, that it will always
have sufficient cash balances or liquid and marketable assets to meet its liabilities when fall due,
under both normal and stressed conditions, without incurring unacceptable losses or risking
damage to the Company's reputation. Typically, management ensures that it has sufficient cash
and cash equivalent to meet expected operational expenses, including the servicing of financial
obligation through preparation of the cash forecast, prepared based on time line of payment ofthe financial obligation and accordingly arrange for sufficient liquidity/fund to make the expected
payment within due date.
Industry Risks
Industry risk refers to the risk of increased competition from foreign and domestic sources leading
to lower prices, revenues, profit margin, and market share which could have an adverse impact on
the business, financial condition and results of operation. Frozen foods industry in Bangladesh is
an emerging sectorwith vast local demand for its different product lines. Locally produced frozenproducts now play a significant role in this sector, which has been dominated by imports in thepast.
However, the infrastructure required forthis industry is inadequate in Bangladesh, as can be noted
below:
No organized collection centers for agricultural produce exist in Bangladesh; as a result, there isa high fluctuation in prices both for the growers and for processors.
Absence of Cold Storage or Cold Chains although the whole process of collection, processing
and distribution depends on cold temperature maintenance due to the nature of the finishedproduct.
Golden Harvest Agro lndustries Ltd has established its brand name in Frozen Food market with itsquality products, range of products and customer services. However, to develop an infrastructure,both public and private sector participation is required. This is the focal point of Golden Harvest's
future expansion plans. To eliminate fluctuation in prices both for the growers and for theprocessors, Golden Harvest will organize collection centers to eliminate intermediary cost for boththe parties. Deploying 15,000 refrigerators with 24 cold storages at -3O-degree Celsius nationwide,Golden Harvest will have infrastructure backbone of Cold Chain which will ensure proper supply ofFrozen Foods all over the country through its 50-temperature controlled transport.
Market riskMarket risk is the risk that any change in market prices, such as foreign exchange rates and
interest rates will affect the Company's income or the value of its holdings of financial instruments.The objective of market risk management is to manage and control market risk exposures withinacceptable parameters, while optimizing the return.
a
a
Dhaka
4,5
(i) Currency risk
The company is not exposed to currency risk on revenues because goods are sold in local market
with local currency and there is insignificant purchase of machineries, parts and equipment.
(ii) Interest rate risklnterest rate risk is the risk that the future cash flows of a financial instrument will fluctuate
because of changes in market interest rates. GHAIL again has limited exposure to interest rate
since it borrows primarily in fixed interest rate, and further, interest rate are fully hedged at
project levels too.
4.6 Reporting foreign currency transactions
lnitial recognitionA foreign currency transaction is recorded, on initial recognition in the functional currency, by
applying to the foreign currency amount the spot exchange rate between the functional currency
and the foreign currency at the date of the transaction.
Su bsequent measurementA foreign currency transaction may give rise to assets or liabilities that are denominated in a
foreign currency. These assets and liabilities is translated into GHAIL's functional currency at each
reporting date. However, translation depends on whetherthe assets or liabilities are monetary or
non-monetary items:
Monetary itemsForeign currency monetary items outstanding at the end of the reporting date are translated using
the closing rate. The difference between this amount and the previous carrying amount in
functional currency is an exchange gain or loss.
Exchange differences arising on the settlement of monetary items or on translating monetary
items at rates different from those at which they were translated on initial recognition during the
period or in previous financial statements is recognized in profit or loss in the period in which they
arise.
Non-monetary itemsNon-monetary items carried at historic cost are translated using the exchange rate at the date ofthe transaction when the asset arose (historical rate). They are not subsequently retranslated in
the individual financial statements of GHAIL. Non-monetary items carried at fair value are
translated using the exchange rate at the date when the fair value was determined. The foreign
currency fair value of a non-monetary asset is determined.
When a gain or loss on a non-monetary item is recognized in other comprehensive income, any
exchange component of that gain or loss is recognized in other comprehensive income.
Conversely, when a gain or loss on a non-monetary item is recognized in profit or loss, any
exchange component of that gain or loss is recognized in profit or loss.
Dhaka
!
Measurement of financial assets
Financial assets can be monetary or non-monetary and may be carried at fair value or amortized
cost. Where a financial instrument is denominated in a foreign currency, it is initially recognized at
fair value in the foreign currency and translated into the functional currency at spot rate. The fair
value of the financial instrument is usually the same fair value of the consideration given in the
case of an asset or received in the case of a liability.
At each year end, the foreign currency amount of financial instruments carried at amortized cost is
translated into the functional currency using either the closing rate (if it is a monetary item) or the
historical rate (if it is a non-monetary item). Financial instruments carried at fair value are
translated to the functional currency using the closing spot rate.
Exchange differencesThe entire change in the carrying amount of a non-monetary fair value through other
comprehensive income financial asset, including the effect of changes in foreign currency rates, is
reported as other comprehensive income at the reporting date.
A change in the carrying amount of monetary fair value through other comprehensive income
financial assets on subsequent measurements is analyzed between the foreign exchange
component and the fair value movement. The foreign exchange component is recognized in profit
or loss and the fair value movement is recognized as other comprehensive income.
The entire change in the carrying amount of financial instruments measured at fair value through
profit or loss, including the effect of changes in foreign currency rates, is recognized in profit or
loss.
Dhaka
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Go
o
EU
c
aa
ai-i-"
al eu
c
Eis=ooE6co
Erz6!=6
EE E6= OE6.
o
-oEO9o.eio
ooo
oco
!
6o@io=E"Gi6-
6l
Foao
.gq
oE
EoG
=
a
Ea
l2l----14)1111211t=
E14t,11l._11l=)11111411l11111)1|l---1111141-2at
*-li lN !o II IN 6ll-lo6ll6lmdllP16ml
[_]- "l
doorso-oG
oGr
G
rioorsood,
oor
o
,
t,
a-
Amount in BDT
3GJun-20 30-Jun-19
8. Biological assets
Dryer
Milkable Cows
Heifers
Calves
Bull
8,010 Details are as follows:
Carrying amount
Add: Purchase Costs
Less: Transfer/ Sales
Add / (Less): Fair
value adjustments
Calves Heifers Milkable Cows Dryer Bull
1,787,350
59,973,286
22,539,57L
4,867,238
13,092,696102,260,r4L
4,867,238
(4,86s,24O\
2,306,983
22,s39,571
(11,898,338)
3,877,949
59,973,286
3,765,872
7,717,399
7,787,350
(L,498,s751
809,225
L3,092,696
13,455,665
126,O44,2601
3,734,482
Total
702,260,74!
13,455,665
(40,s4o,s47],
17,840,039
14,519,L82 70,850,5s7 1,098,001 93,015,304l-tl-ra11l=l=t:
8,01.01 Fair value
Calves Heifers Milkable Cows Dryer Bull
7,798,752
(389,s26)
6,201,O82
(2,466,600l
Total
28,40s,244Changes in Fair Value
Less: Cost to sell
3,672,405(1.,3Os,422],
5,840,776
(1.,962,827],
It,552,229(4,440,8301
3,877,949 7,17t,399 809,226 t7,840,039
Biological assets
Heifers
Bull
8A.01 Details are as follows:
CarryinB amount
Less: Transfer/ Sales
Add / (Less): Fair value adjustments
8A,01.01 Fair value adjustments
Changes in Fair Value
Less: Cost to sell
Capital work in progress
Opening balance
Addition during the period
Transferred to property, plant and equipment
Dlsposa I for subsidiary companY
C-apital work in progress
Spening Balance
,Addition during the PeriodTransferred to property, plant and equipment
Investment in subsidiary companies
Golden Harvest lce Cream ltd. (Note: 10.01)
Golden Harvest Dairy Ltd. (Note: 10.02)
8Ab,b 1u, bb4
7,089,113
L3,699,777
Heifers
2,655,224
(1,392,970],
2,295,562
(t,382,er'.61
4,950,786
(2,775,816)
6,610,664(7,872,9L8) (8,001,829) (1s,874,747\
972,71,6 2,t74,970
912,7L6 2,L74,970
o
407,375,t44
78,763,]69
487
397,
685,539,459
18,772,253704,3L7,7t2
Bull Total
10.
42
450,358,528
,1,098,001
70,850,557
1"4,5t9,182
2,308,98L
4,238,583
4,238,583
( 10,s6s,20s)
nao 11
480,138,313
268,477,773
(27s,734,3991
(4s,827,2221
397,OL5,754 350,804,247
268,477,773 46,210,907
(215,L34,3991
480,138,313
I
10.01.
10.02. Golden Harvest Dairy Ltd.
Opening balance
Share of net loss after tax of subsidiary
11. lnvestment in associates
Golden Harvest lce Cream ltd. (Note: 11.01)
Golden Harvest QSR Ltd. (Note: 11.02)
Co d Chain Bangladesh Ltd. (Note: 11.03)
11.01. Golden Harvest lce Cream ltd.opening balance
Share of net profit after tax of associates
11.02. Golden Harvest qSR ttd.I nvestment
Add: Deposit for share
Less: Attributable Share of Loss ofAssociate
11.03. Cold Chain Bangladesh [td.Opening Balance
Add: lssuance of Share
Disposal for subsidiary company
l1 lnventories
Finished goods
Raw materials
Packing materials
Medicine
Work in process
Stores in transit
Golden Harvest lce Cream ltd.
Opening balance
Adjustment for changes of tax rates
Restated opening balance
lssue Cost of Ordinary Share
Adjustment for changes of shareholding position on retained earning
Adjustment for changes of shareholding position on revaluation surplus
Share of net profit after tax of subsidiary
Share of change of revalued amount of PPE
Transfer to investment in associates
Amount in BDT
30-Jun-20 30-Jun-19
685,539,459 851,853,929(7,122,716)
685,539,459 8so,73L,213(los,732],
(277,987,8331
(s7,620,s72l,
11o,284,238
232,086
68s,s39,459
L8,772,253
{3,67s,44L1
19,027,02L(248,768],
15,096,812 18,772,253
675,3t7,OO5
48,355,038 74,700,OOO
600,000
723,672,043 15,300,000
685,539,459
(10,222,454\
675,3L7,OOs
300,000
48,355,038
300,000
300,000
74,700,000
300,000
14,700,000
Golden Harvest QSR Limited (GHaSR), an associate company (30% share) of Golden Harvest Agro lndustries Limited, owns 49%
share of Jubilant Golden Harvest Limited (JGHL), and rest 51% share is owned by Jubilant Food works Limited (JFL), a listed
company in lndia. JGHL is a joint venture company between Jubilant Food works and Golden Harvest is operating Domino's Pizza
resta urant in Bangladesh.
600,000
(600,000)600,000
600,000
t3,984,465
395,451,920
345,850,2s3
153,897,600
89,554
425,667
12,174,204
217,607,792
186,4L4,307
90,033,339
765,245
Dhaka,i3
502,198,s48 907,889,797
I
685,539,459
Share of accumulated loss of associates during the year is Tk. 8,350,110 Fk. 27,833,700 x 30%) including business loss of Jubilant
Golden Harvest Ltd.
a
-
-aJ
{
Amount in BDT
30Jun-20 30Jun-19
L2A.
13.
f5A.
L4.
14.01
lnventories
Finished goods
Raw materials
Packing materials
Work in process
Stores in transit
Advances, deposits and prepayments
Advance to contract farmer, suppliers & service providers
Advance against FIat purchased
Advance for Land purchases
Advance taxes
AdVance VAT
Advance office rent
Right Share lssue Cost
Other deposit
Lease deposits
Advances, deposits and prepayments
Advance to contract farmer, suppliers & service providers
Adva nce taxes
Advance VAT
Right Share lssue Cost
Other Deposit
Lease deposits
Trade and other receivables
Trade receivables (Note: 14.01)
Other receivables (Note: 14.02)
211,60t,t92184,588,355
89,785,484
173,9L7,797
759,326,728
60,244,938
13,968,803 s,536,685
399,026,t42
276,452,875
35,365,401
11,873,598
299,6L2,968
736,412,078
121,500,000
79,658,744
17,086,845
3,752,004
121,898
2,294,904
2,5t7,74!s98,930
73,580l----l.---l-,1-,1:l.-l=L---l)-14l.lt1l.l.
662,956,578
This is unsecured and considered good.
,a t The maximum amount due from the suppliers & service providers.
,c) Noamountwasduebythedirectors,managingagent,managersandotherofficersofthecompanyandanyofthem severally
or- jointly with any other Person.
275,438,257
35,36s,401
11,873,598
598,930
73,580
253,065,256
f a 20f (?-)
11,873,598
727,898
598,930
1,177,796
323,349,766
349,877,536
686,265,743
766,077,905
292,675,403
Trade receivables
Sales receivables 349,877,536349,8L7,536
Schedule of Trade Receivable
Account Name Upto 90 days Upto 180 days Over 180 days 2020
Go den Harvest Agro lndustries Ltd. L2r,745,772 773,792,902 110,830,516 346,369,190
Go den Harvest Dairy Ltd 3,448,346 3,448,346
20t9
304,687,971.
2,896,365
-h s ls unsecured, considered good except for the portion of doubtful debtors and is falling due within one period. Classification
s:heduie as required by schedule Xl of Companies Act 1994 are as follows:
Dhaka
r{ .+
!
324,364344
1,036,082,679 1,058,693,308
766,017,90s766,0L7,905
J
-
Amount in BDT
3OJun-20 30Jun-19
113,577
292,s61,886
t4.OZ Otherreceivables
I nterest receivable
nter company transaction (Note: 14.02'01)
14.02.01 lnter company transaction
Samdani Art Foundation
Golden Harvest Foods Ltd.
Golden Harvest lnfoTech Ltd.
Golden Harvest Developers Ltd.
Golden Harvest QSR Ltd.
Cold Chain Bangladesh Ltd
14A. Trade and other receivables
Trade receivable (Note: 14A.01)
Other receivable (Note: 14A.O2l
14A,01 Tradereceivables
Sales receivables
14A.02 Otherreceivableslnterest receivable
lnter company transaction (Note: 14A.02.01)
14I.02.01 lnter company transaction
Gc den Harvest Dairy Ltd.
3c 'len Harvest lnfoTech Ltd.
3c cen Harvest DeveloPers Ltd.
S;'r.Ca ni Art Foundation
Gc Cen Harvest Foods Ltd.
Cc den Harvest QSR Ltd.
This is unsecured, considered good and is falling due within one period
85,635,279
189,536,028
74,664,379
336,175,572
zt,u!,")61>
2s,802,809
84,9s3,001
6A,776,708
88,820,539
5,789,000
292,567,886
346,359,190
8L7,079,393
304,687,977
43]-,761,310
1,163,448,583
304,687,971
346,359,190 304,687,97t
253,885
437,76L,31O
817,079,393 437,761-,310
L30,874,250
189,535,028
74,6@,379
744,988,424
84,953,001
60,t76,70827,079,829
25,802,80985,635,279
336,77s,572
Sl. No. Pa rticulars
Consolidated
amount in BDT
2020
consolidatedamount in BDT
2019
Accounts receivable considered good in respect of which the
company is fully secured
Accounts receivable considered good in respect of which the
company holds no security other than the debtor personal security349,817,536 766,077,905
ilt Accounts receivable considered doubtful or bad
IVAccounts receivable due by any director or other officer of the
company
Accounts receivable due by Common management
The maximum amount of receivable due by any director or other
officer of the company
Total 349,8L7,536 766,OL7,90s
Dhaka
-r is ls unsecured and considered good.
45
816,825,508 43L,761,31O
253,885
686,011,258
686,265,L43 292,675,403
586,011,258
88,820,539
15.
15A.
l-b.
Cash and cash equivalents
Cash in hand:
Cash in hand at head office
Cash in hand at factory and depot office
Cash at bank
Fixed Deposits with Banks (Maturity within 1to 3 months)
Fixed Deposits are lien against LC margin
Cash and cash equivalents
Cash in hand:Cash in hand at head officeCash in hand at factory and Depot officeCash at bank
Fixed Deposits with Banks (Maturity within 1to 3 months)
Details of cash at bank is given at annex-A
Share capital
Authorized share capital
250,000,000 ordinary shares of BDT 10 each
lssued, subscribed and paid up capital
5E,750,000 ordinary share @ Tk. 10 each fully paid-up against cash
56,L59,79A bonus share @ Tk. 10 each
5,000,000 ordinary share @ Tk. 10 each fully paid-up against acquisition
of shares of Golden Harvest lce Cream Limited
Right share issue 89,932,342 @ 10
The above balance has been received from the following
32.88
Oth e rs
67.72
100.00
Amount in BDT
30-Jun-20 30-Jun-19
27 727
L33,177,346
243,730,000
309,747,9s3
37,657,94s
405,234,786 370,122,926
243,730,000
403,000,901 231,495,523
2,500,000,000
587,s00,000
621,552,790
50,000,000
899,323,420
587,500,000
s5 1,s97,900
50,000,000
2,t58,376,zLO L,L99,097,900
33.03 70,960,270 39,609,825
7,557,38254,596,82624,745,757
66.97 LM,877,35L 80,299,965
100.00 215,837,62L 119,909,790
1,202,306 984,753
Designation% of Shares No. of Shares
30-Jun-20 30-Jun-19 3GJun-20 30Jun-19
Directors
Enamuzzaman Chowdhury
Mr. Matthew Graham Stock
Mr. Ahmed Rajeeb Samdani
Mr. Ahmed Mehdi Samdani
Ms. Nadia Khalil ChoudhuryMr. Azizul Huque
Mr. Moqsud Ahmed Khan
Mr. Mohius Samad Choudhury
Chairman
Director
Managing
Director
Sponsor
Director
Director
Director
Director
2.00
21.94
o.22
2.OO
2.26
2.46
2.00
2.00
27.94
0.38
2.OO
2.26
2.46
2.O0
4,316,750
47,347,464
472,371.
4,3!6,7504,877,261
5,372,924
4,316,750
2,398,795
26,304,147
449,878
2,398,t952,709,590
2,957,62s
2,398,79s
Foreign investorslnstitutionsGeneral shareholders
0.6240.1926.3t
1.6039.0826.28
7,339,75386,748,O2756,789,571
Ohaka
46
I
I
.,-q
Name
Range with shareholding position:
1 to 499
500 to 5,000
5,001 to 10,000
10,001 to 20,000
20,001 to 30,000
30,001 to 40,000
40,001 to 50,000
50,001 to 100,000
100,001 to 1,000,000
Total
Shareholdi ition of Golden Harvest lce Cream Ltd:
Name
rfr- Ahned Rajeeb Samdani
Golderi Harvest Agro lndustries Ltd.
Ofrers
Shareholding position of Golden Harvest Dairy Ltd:
t7. Share premiumShare premium received
Bonus Share
IPO expenses:
lncome tax (3% on premium)
IPO cost
Exchange gain / (loss)
18.
too%
Amount in BDT
30-Jun-20 30-Jun-19
so3,479
4,443,882
2,275,612
3,083,852
2,737,697
L,328,O17
7,465,637
4,222,929
20,844,599
7L9,9O9,79O
LOO% 1,000,000,000 1,000,000,000
25.O0%
75.00%
L00%
25.00%
75.00%
roo%
12,500,000
37,500,000
12,500,000
37,500,000
50,000,000
450,000,000(408,766,Os4],
450,000,000(380,097,900)
L54
Revaluation surplus
Opening balance
Adjustment for changes oftax ratesAdjustment for changes of shareholding position on revaluation surplusDepreciation on revaluation surplus transferred to retained earningsDepreciation of the companyDepreciation of Golden Harvest lce Cream Ltd.
2!9,946,668
2!6,395,928
The Company revalued its lands, buildings, and plant & machinery as of 30 June 20L3 by its Valuer, Ata Khan & Co, CharteredAccountants following "Current cost method", resulting in a revaluation surplus at BDT 128,671,642 for Golden Harvest Agrolndustries Ltd. and BDT 51,419,359 for Golden Harvest lce Cream Ltd. which include non controlling interest part BDT 103.
283,376,706(1,122,7L6],
(s7,62O,s12)
3,550,
Range of holdings
ln number of shares
No. of shareholders % of shareholders Number of shares
30-Jun-20 30-Jun-19 30Jun-20 30-Jun-19 30-06-20 30-Jun-19
UUU,UUL
4,491.
5,013
672
375754
80
56
122
777
24
5,43L
5,133
406
260
102
46
35
75
64
L7
0.406
0.454
0.055
0.034
0.014
0.007
0.006
0.011
0.011
0.002
0.469
0.444
0.035
o.o22
0.009
0.004
0.003
0.006
0.006
0.001
543,257
6,894,2334,676,829
5,659,348
3,909,14t2,849,934
3,022,675
9,03s,921
32,839,OO2
146,407,287
11,054 Ll,s7o 1.00 1.00 215,837,621
% of SharesValue of shares
@ BDT 10
30Jun-19 30-Jun-20 30-Jun-19
Designation
30Jun-203.00%
45.OO%
52.00%
Chairman
Parent
company
Sha reholders
3.O0%
45.00%
52.O0%
30,000,900
449,999,100
520,000,000
30,000,900
449,999,700
520,000,000
Name Designation% of Shares Value of shares @ BDT 10
30-Jun-20 30-Jun-19 30-Jun-20 3GJun-19Mr. Ahmed Rajeeb Samdani
Golden Harvest Agro lndustries Ltd
Chairman
Parent
company
(13,s00,000)
(2s,927,7421
(13,s00,000)
(2s,927,742)
(3,sso,74ol
7
(3,668,e96)
Dhaka
47
-
-J
a
18A.
19.
20.
27.
Revaluation surplus
Opening balance
Adjustment for changes of tax rates
Adjustment for changes of shareholding position on revaluation surplus
Depreciation on revaluation surplus transferred to retained earnings
Depreciation of the company
Depreciation of Golden Harvest lce Cream Ltd.
Retained earnings
Opening balance
Deferred tax adjustment on depreciation of revalued amount of PPE
Cash Dividend Paid
Depreciation on revaluation surplus transferred
lssue Cost of Share lssue
Adjustment for changes of shareholding position
Stock Divldend lssue
Net profit after tax
Share of non-controlling interest
Retained earnings
Cpening balance
Deferred tax adjustment on depreciation of revalued amount of PPE
Cash Dividend Paid
Ad.justment for changes of shareholding position on retained earnings
lssue Cost of Right Share lssue
De preciation on reva luation surplus transferredStock Dividend Issue
Net profit after tax
Non controlling interest
Opening balance
Adjustment for changes of tax rates
Share of Net profit after tax for the period (GHICL)
Share of Net profit after tax for the period (GHDL)
Adjustment for changes ofshareholding position on retained earnings
Adjustment for changes of shareholding position on revaluation surplus
Share of deferred tax adjustment on revaluation Surplus
Issue Cos of new Share lssue
lssuance of new share (GHICL)
Disposal for subsidiary company
Long term loans
Golden Harvest Agro lndustries LimitedCorporate Bond
I P DC Fi na nce Ltd
Mercantile Bank Ltd., Term Loan-Agri
Mercantile Bank LimitedMercantile Bank Limited
Community Bank LimitedIPDC Finance Ltd
Golden Harvest lce Cream Limited
Syndicated Loan ( UCBL and Standard Bank Limited)
United Commercial Bank Ltd., Term Loan-2
Standard Bank Ltd.
Agrani Bank Limited
CAPM Venture Capital & Finance Ltd
Amount in BDT
30Jun-20 30-Jun-19
2t9,946,668 283,3t6,706(1,,122,776l.
(s7,620,s721
(3,668,996)
(9s7,8141
216,39s,928 219,946,668
865,262,04L 951,631,139
951,631,139
1,183,583(s6,209,976],
3,550,740(tt,t72,s68l
(31.,286,736l.
6,340,7L67,225,747
951,631,139
1,183,581(s6,209,976]l
920,797,70L1,455,O84
4,626,870(10s,7321
(217,98L,8331
256,251,487(73,412,37O)
920,797,7411 aqq nRd
{217,981,833)(1Os,732)
4,626.810{t7,772,s68\
3,ss9,740(37,286,7361
7,565,863 242,839,770865,262,04L 951,631,139
844,138,98L 6,342,OM(7,372,270],
L3,495,293(82,9231
277,981.,833
57,620,572283,660
(729,2281
550,000,000
(L,225,747],
(837,881,s64)
5,O32,27O 844,138,981
470,722,740588,775,436344,375,99395,211,5388,937,980
(3,ss1,74ol,
392,20L,250223,14L,622
705,561,322179,37L,908
9,26L,536
96,535,792
51,330,395 47
377,801,2s0211,442,824to7,304,728t67,766,30470,2L4,635
48
11
J
Amount in BDT
30Jun-20 30-Jun-19
Golden Harvest Dairy Limited
Standard Bank Ltd., Term Loan -1
Standard Bank Ltd., Term Loan -2
Current maturity of long term loan
2,575,656,649
(633,797,796l,
973,74s,509 L,942,464,8s2
The above term loan is for the dairy project for which two drawdown has been made against one term loan. So two loan has been
created.
Terms and conditions of Long Term Loan:
172,229,t32
- Glpil.:so I
L1L,764,782 |
L,229,632,9s8
(2ss,887,4491
a)
b)
Golden Harvest Agro lnd. Ltd. ln Note 21A
Golden Harvest lce Cream Ltd.
Syndicated loan,Unlted Commercial Bank Ltd. Term loan-1
S:andard Bank Ltd
:ur:ent maturity of long term loan
c Golden Harvest Dairy Ltd.
S:andard Bank Ltd., Term Loan -1
S:andard Bank Ltd., Term Loan -2
21J'. Long term loan
Corporate Bond
IPDC Finance Ltd
Mercantile Bank Ltd., Term Loan- Agri
Mercantile Bank Limited
Mercantile Bank Limited
Community Bank Limited
PDC Finance Ltd
a..r'rent maturity of long term loan
306,411,459
172,229,L32 15 166
61,064,350
t11,164,787
392,20r,250
223,t4L,622705,561,,322
179,377,908
9,261,536
96,535,79251,330,395
377,80L,2sO
2L\,442,824707,304,728
757,766,304
t0,274,635
47,457,655
L,057,403,826(2L2,289,237l,
91s,387,396(234,607,4361
845,114,589 680,779,960
53,964,s8284
c1 qA.4 q!,
ParticularsRate ofInterest
TenureRepayment
TermSecurity
Standard Bank Ltd,Term Loan-1 9.00% 5 Years60 Monthlyinsta llment
The loans from banks are secured by
Registered mortgaged 300 decimal
land and Building & machineries
situated within Fatehpur, Goainghat,
Sylhet. The loans are also secured by
personal guarantee of all directors ofthe Company.
Standard Bank Ltd, Term Loan-2 9.00% 5 Years60 Monthlyinstallment
Dh!l€
toa9
470,722,t40l- 119fos"6oo
| :so,sre,s+r(164,37O,587\
J
Amount in BDT
30Jun-20 30Jun-19
Terms and conditions of term loan:
The Company is enjoying term loan facility against imported machineries and House building loan has taken for expansion of
Factory Building from Mercantile bank, Gulshan Branch. Terms and Conditions of the loan is as below:
Particu la rsRate oflnterest
TenorRepayment
TermSecurity
Mercantile Bank Ltd, HP-2 9.OO% 5 Years
Monthly(Starting from
22 May 2015)
a. Hypothecation of the caPital
machineries and stock in trade,
b. Personal guarantee of all the
d i rectors
c. Post dated cheques
d. Registered mortgage supported by
registered IGPA favouring the bank
against all bank facilities on 99.00
decimal land with factory building
Mercantile Bank Ltd, HBL 9.00% 5 Years
Monthly(Starting from
24 October2074)
l,lercantile Bank Ltd., Term Loan- Agri 9.00% 5 Years
LTR is for 90
Days (RM and
PM)
I'lercantile Bank Ltd., Term Loan 9.O0% 7 Years
Monthly(Starting from25 December
2018)
Mercantile Bank Ltd., Term Loan 9.O0% 5 Years
Monthly(Starting from31 July 2018)
IPDC Finance Ltd. 74.s0% 5 Years Quarterly
1. Ranking charge on altftoating
assets of GHAIL duty registered with
RJSC. 2. Personal Guarantee (PG) ofthe all directors of GHAIL. 3. Post
Dated Cheques. 4. Other Usual
Charge documents.IPDC Finance Ltd. 1,4.50% 5 Years
Monthly(Starting from22 April 2018)
Fully redeemable Non-convertible,
Unsecured Corporate Bond
Floor-70%
Ceiling-11.5%
Margin-3%
7 Years
At the end of Years 2, 3, 4, 5,6 & 7 at the rate of 15%
for the first 4 years and 20% for the last two years ofissue size respectively
22 Deferred tax liabilityOpening balance
Adjustment for changes oftax rates
Adjustrnent during the period on fixed assets at cost
Less : During the period on revaluation
During the period on business loss
D sposal od subsidiary company
Deferred tax liability
Opening balance
Adjustment during the period on fixed assets at cost
Less : During the period on revaluation
256,689,455 223,584,535
2,494,924
32,369,O41
17,738,74s],(2O,2991
(13,970,743l.
(1,183,s80)
(937,7s7l.
(1s1,196,11s)
707,852,338
|.L3,97O,746l,(1,183,s80)
100,609,367
8,465,970(7,222,999)
6rr
92,758,O72 LO7, 338
,
l.---1411
111414l---
89,46L,250 2s6,689,455
Dhaka
23.
23A.
24,
244,
25.
25.01
Lease obligations
National Finance Limited
Union Capital Limited
lndustrial Promotion and Development Company Ltd
Hajj Finance Ltd
BD Finance lnvestment Ltd.
United Finance Ltd.
Current maturity of lease obligation
Lease obligations
BD Finance lnvestment Ltd
United Finance Ltd.
Current maturity of Iease obligation
Accounts and other payables
Sundry creditors for goods & service
Undistributed refund warrantSecLrity deposits for freezer
V'rlthholding tax and VAT
u ndistributed dividendBank interest payable
Accounts and other payables
Sundry creditors for goods and service
Undistributed refund warrantSecurity deposits for freezer
Withholding tax and VAT
Bank interest payable
Undlstributed dividend
Accruals and provisions
Salaries and wages
Utility bills
Audit fees
Mobile phone bill
TA/DA and incentive
Provision for tax (Note: 25.01)
Provision for WPPF (Note - 25.02)
Provislon for others
Provision for income tax0oening balance
L3,,er) /Under provision for previous periods
Tax during the period
Tax paid during the period
Disposal od subsidiary company
Provision for workers profit participation fund
Employees welfare fund (Note: 25.02.01)
Bangtadesh workers welfare fund (Note: 25.02.02)
Workers profit participation fund (Note: 25.02.03)
Amount in BDT
30Jun-20 30-Jun-19
678,791.
6,149,545
3,686,737
8,729,43317,082,s68
9,065,358
6,819,866
(rPDC)
678,791
(678,797\
51,533,507
(2s,677,s82)
25,855,925
678,79t 7,046,8416,819,8667,865,707(s,7s1,4441
2,1L5,263
34,515,681
s,278,7431 qrq ?zq
9,620,289
5,903,977
52,t52,2205,278,743
16,u5,0821,794,054
3,229,647
59,247,932 8s,317,316
34,280,463
5,278,743
3,929,249
9,537,770
30,593,200
5,278,743
3,832,240
679,367
79,054
s,903,977
58,924,t37
6,2t9,777
7,L93,617
517,500
3,620
530,003
722,705,692
27,727,729
5,445,689
L7,824,618
2,900,239
632,500
277,557
7,626,884
244,075,630
37,266,967
17,682,726
L58,437,027 310,280,515
244,075,630
76,252,059
(8,728,623)(128,893,37s)
223,834,067
448,523
40,783,61.4
(20,990,s7s)
122,70s,692
3,t75,4643,290,240
4,618,555
5,38r'.,026
27,264,379
51
2L,721,729 37,266,961
t,
678,797(678,791],
-I
-,,
Amount in BDT
30-Jun-20 30Jun-19
25.02.07 Employees welfare fund
Opening balance
Addition during the year
lnterest charged for the YearDisposal of subsidiary comPanY
Closing balance
25,02.02 Bangladesh workers welfare fund
Opening balance
Addition during the year
lnterest charged for the YearDisposal of subsidiary comPanY
Closing balance
25.02.03 Workers profit participation fund
Opening balance
Addition during the year
lnterest charged for the YearD sposal of subsidiary companY
C ostng balance
25A.
25A.01
25A.02
25A.02.01 Employees welfare fundOpening balance
Addition during the year
Interest charged for the year
Closing balance
25A.02.02 Bangladesh workers welfare fund
Opening balance
Addition during the year
Interest charged for the year
Closing balance
4,618,556
717,614
213,338(1.,774,O4s)
2,767,913
L,649,500207,r43
3,1.75,464 4,618,ss6
5,384,026777,6L4
227,346(2,432,746l,
3,473,977
L,649,500
260,549
3,290,240 5,384,026
27,264,379
940,915
998,729
(13,947,9981
13,085,864
13,195,001
981,515
Ls,256,O25 27
Accruals and provisions
Salaries and wages
Utility bills
Audit fees
TA/DA and incentive
Provision for income tax (Note: 254.01)
Provision for WPPF (Note - 25A.02)
Provision for others
Provision for income taxOpening balance
(Over) /Under provision for previous periods
Provlsion for the period
Tax paid during the period
Provision for workers profit participation fund
Employees welfare fund (Note: 25A.02.01)
Bangladesh workers welfare fund (Note: 25A.02.02)
Workers profit participation fund (Note: 25A.02.03)
s,756,625
1,793,677
460,000
530,003
122,714,621
2t,72r,7295,336,389
5,985,562
984,485,450,000
602,35s
114i87138219,172,472
4s96,469t57,2L2,984 146,614,435
114,873,382 105,29\,017
428,398
21,753,967
(12,000,000)
15,969,862
18,728,623l,
t22,L14,62L
3,775,464
3,290,24075,256,025
2,U4,57L2,957,279
13,316,381
729 t9,112,172
1,888,505
814,260
1.47,645
2,8M,51t
2,951,279
777,614
227,346
7,987,925
874,260
749,O94
Oh.k
52
3,290,240 2,95L,279
2,844,5L7
t!7,6L4213,338
{,
Amount in BDT
30-Jun-20 30-Jun-19
25A.02,03 Workers profit participation fund
Opening balance
Addition during the Year
lnterest charged for the Year
Closing balance
26.
25.0L
26.02
25,03 Golden Harvest Dairy timitedStandard Bank Limited
264,
26A.01
6,327,723
6,514,O79
474,579
Short term loan
Golden Harvest Agro lndustries Limited (Note: 26'01)
Golden Harvest lce Cream Limited (Note -26.021
Golden Harvest Dairy Limited (Note - 26.03)
Golden Harvest Agro lndustries limitedMercantile Bank Limited-CC HYPo
Mercantile Bank Limited-STl
Standard Bank Ltd.
Union Capital Limited
N4ercantile Bank Limited-Block lnterest
N,lerca ntile Bank Limited-LATR
Golden Harvest lce Cream limitedUnrted Commercial Bank Ltd.-SOD
Standard Bank Ltd CC
Fareast Finance & lnvestment Ltd.
United Commercial Bank Ltd.-UPAS LC
Hajj Finance Limited
Standard Bank Ltd LC
54L,894,6-37
57,746,6L2
555,045,051
618,839,582
51,601 ,550
599,64L,243
319,153,306
206,787,297
9,743,367
343,734,495
85,299,529
110,985,586
a)
b)
Terms and conditions of Short Term Loan:
Golden HarvestAgro lnd. Ltd. ln Note 26A
Golden Harvest Limited
Short term loan
Golden Harvest Agro lndustries Limited (Note: 26A.01)
Golden Harvest Agro lndustries Limited
l,'ercantlle Bank Limited-Cc HYPo
','erca ntile Bank Limited-STL
5::ndard Bank Ltd.
L,rlon Capital Limited
lrlercantile Bank Limited-Block lnterest
lllercantile Bank Limited-LATR
55s,045,0s1
434,288,082
40,088,575?1 a6q q.4?
16,138,824?? qnn ni'Y')
64,354,258
518, 839,582
57,746,612 s1,601,550
57,746,672 51,601,560
541,894,531 555,045,051
s4L,894,637 555,045,051
319,153,306
206,187,297
9,743,367
343,734,495
85,299,529
110,985,586
6,810,661 15,o25,44t541,894,63L 555,045,051
Pa rticu larsRate oflnterest
Tenor Security
Standard Bank Ltd., CC- HYPo 9.00% Revolving
The loans from banks are secured by Registered
mortgaged 3OO decimal land and Building &
machineries situated within Fatehpur, Goainghat,
Sylhet. The loans are also secured by personal
guarantee of all directors of the company .
Ohaka
53
13,316,381
940,915
998,72913,316,381
L,225,486,t92
75,025,M7
Amount in BDT
30-Jun-20 30Jun-19
885,193,111 2,240,720,323
885,193,111 2,240,120,323
27.
AL
&
Sales revenue
Sales (Local)
Sa les revenue
Sa les (Local-Frozen Unit)
Sales (Local-Dairy Unit)
Cost of goods sold
Raw and packing materials:
Opening stock (Note: 12)
Purchase (Note: 28.01)
Closing stock (Note: 12)
Manufacturing expenses (Note: 28.02)
Tota I manufacturing cost
Add: Beginning work in process inventory (Note: 12)
Less: Ending work in process inventory (Note: 12)
Opening stock offinished goods (Note: 12)
Less: Adjustment against Freezer Purchases
Closing stock offinished goods (Note: 12)
Purchase
Raw materials
Packing materials
Foreign currency exchange loss/(gain)
610,0s3,082
228,107,272
526,77r,703
345,984,624
838,L6O,294 872,705,727
227,426,417
559,7M,160
329,861,169
1,371,463,73L
78O,57L,777
(276,612,897\7,700,924,300
(499,837,4A7)
503,958,286 1,201,085,893
77r,OM,979
578,807,894 7,372,OgL,872
532,552
s78,807,894 1,372,624,424(42s,667],
578,807,894
173,917,797
1,372,798,757
252,335,745
752,725,685(23,70O,OOOI
1,624,534,5O2
729,O25,685
(217,50L,t92\7,624,534,502
(395,457,92t1
517,424,493 L,229,O82,581
,a nl
477,802,834
8L,347,926
7,770,O23,848
200,337,504
701.,779
ss9,L44,760 L,371,O63,13L
ParticularsRate oflnterest
Tenor Repayment Term
Mercantile Bank Limited-Cc Hypo 9.OO% Working Capital
a. Hypothecation of the capital machineries and stock
in trade,
b. Personal guarantee of all the directors
c. Post dated cheques
d. Registered mortgage supported by registered IGPA
favouring the bank against all bank facilities on 99.00
decimal land with factory building
Standard Bank Limited-SoD 9.OO% 1 Year
1. Personal Security of directors. 2. Registered
mortgage of 214.04 decimal land along with single
storied industrial building at sreepur, Gazipur
54
Amount in BDT
30Jun-20 30Jun-19
28.O2
284.
Manufacturing expenses
Salary and allowance
Factory maintenance
Traveling, conveya nce, tour
Utilities and generator fuel
Office communication
Carriage inward
lnsurance premium
Entertainment
Office stationery
Health Safety Measure
Cleaning and security services
Vehicle fuel
Miscellaneous expenses
Depreciation of lease assets (Note: 5.01)
Depreciation of fixed assets (Note: 5.01)
Lntangible Assets Amortizations (Note: 7'01)
Cost of goods sold
Raw and packing materials
Cpening stock (Note: 12A)
Purchase (Note: 28A.01)
C osing stock (Note: 12A)
Manufacturing expenses (Note: 284.02)
Cost of goods manufactured
opening stock offinished goods (Note: 12A)
Less: Adjustment against Freezer Purchases
Closing stock offinished goods (Note: 12A)
Opening stock
Purchase
Closing stock
Manufacturing expenses
Cost of goods manufactured
Opening stock of finished goods
-.ss: Adjustment against Freezer Purchases
: oslng stock offinished goods
32,839,t727,780,894
282,895
16,832,372
238,9s6
27t,785618,081
265,530
306,155
1,,023,33L
628,063
3,621
270,209
64,744,9954,381.,258
7,023,328
30,438,O42
733,320
221,457
2,044,895
369,004
7,277,704
746,595
63,615
606,837
1,o12,679
63,94!,24919,010,6s9
527,945L7t,OO4,979
219,571,666 t34,O80,734
554,588,3s 1
750,99L,204 588,569,085
(219,s7 7,666)
476,6L7,36s
70,758,277
469,097,4L9
63,046,345
546,775,642773,917,797
532,t43,766o( (aq qrn
720,693,433 627,829,286
596,993,433 627,829,286(773,917,797]I
279,577,666
395,443,775 735,976,363
6Ls,OL4,84t
(274,373,8391
t35,976,363
340,647,002
65,470,486
t35,976,363
4,687,79t
406,111,488
1
14o,664,L54
3,225,472
576,803,867
(23,700,000)
143,889,566
553,103,857
(2o7 (4,s26,22s],
139,363,341
!cst of Goods sold reported in the statements includes TK 8,944,568 as abnormal loss due to: a) damage of perishable raw
^1;terials, b) expiry of usable life of raw material. This happened during lock down period of COVID-19.
unitFrozen unit
55
74,849,608
(274,373,839)
453,911,495
14
Etj;LJ, Amount in BDT
30Jun-20 30-Jun-19
28A.01 Purchase
Raw materials
Packing materials
28A.02
29.
Raw materials
Packing materials
Manufacturing expenses
Salary and allowance
Factory maintenance
Traveling, conveya nce, tour
Utilities and generator fuel
Offlce communication
Carriage Inward
lnsurance premium
Ente rtainment
Office stationery
Health Safety Measure
Cleaning and security services
Miscellaneous expenses
Depreciation of fixed assets (Note: 5A.01)
I ntangible Assets Amortizations (Note: 7A.01)
Salary and allowanceFactory maintenanceTraveling, conveyance and tourUtilities and generator fuel
Office communicationCarriage lnwardlnsurance premium
Entertainment
Offlce stationery
Health Safety Measure
Cleaning and security services
Miscellaneous expenses
Depreciation of fixed assets (Note: 5A.01)
lntangible Assets Amortizations (Note: 7A.01)
Administrative expensesDirector remunerationSaiary and allowancelealth Safety MeasureCfflce maintenance-raveling, conveyance, tourLltlLlties and generator fuelCfflce communicationlnsurance premiumEnte rta inmentFees, taxes and renewalPrcfessional and legal feesP,udit fees
Advertisement & publicity
Office stationery
453,077,904
78,341,634
502,568,267
s2,o20,084
554,s88,351
326,488,667
68,9s4,508
126,589,237
9,387,726
30,079,646
1,561,864
2s9,260
16,182,583
226,009
L76,520
618,081
251,403
762,766
7,023,337
568,148
277,165
18,302,955
527,945
29,465,037
t,330,775
257,O82
71,,807,726
174,790
777,250
961.,504
106,774
224,756
37o,ll26
2A2,rA\
18,034585
63,@.6,346
28,479,9337,463,936
225,84375,657,924
206,599776,520518,081
24t,O25
152,195
7,023,331.
462,245
207,253
16,087,556
527,945
7,659,77397,92833,417
524,6s919,310
70,378
70,57!
105,503
9,912
2,215,400
4,687,791
4,900,00024,239,944
789,886159,334784,2976s2,72!76L,525207,467446,340
2,970,3601,479,07s
517,500
177,654
930,087
14,407,25030,251,764
274,5257,256,5871,088,576L,928,673
830,764583,309
3,432,0462,285,672
828,000
34,279
1,7r4,562
Frozen unit unit
Frozen unit u nit
56
It
531,419,538
395,443,175 135,976,363
70,158,277
6s,470,486
Postage and courier chargesCleanig, Security and sanitationTraining and conferenceAGM expensesBank chargesVehicle fuelMiscella neous expenses
Depreciation of fixed assets (Note: 5.01)
Depreciation of right of use assets (Note: 6.01)
Intangible Assets Amortizations (Note: 7.01)
Administrative expenses
Director remuneration
Salary and allowance
Health Safety Measure
Offlce maintenance
Travelrng, conveyance, tourUtl ities a nd generator fuel
Office communication
lnsurance premium
Ente rtain ment
Fees, taxes and renewal
Professional and legal fees
Audit fees
Advertisement and publicity
Office stationery
Cleaning, Security and Sanitation
AGM expenses
Bank charges
Vehicle fuel
Miscella neous expenses
Depreciation of fixed assets (Note: 5A.01)
Depreciation of right of use assets (Note: 64.01)
lntangible Assets Amortizations (Note: 7A.01)
Director remuneration
Salary and allowance
Health Safety Measure
Offlce maintenance
Traveling, conveyance and tourUtllitles and generator fuel
Offlce communication
lnsurance premium
Entertain ment
Fees, taxes and renewal
Professional and legal fees
Audit fees
Advertisement and publicity
Offlce stationery
Cleaning, Security and Sanitation
AGM expenses
Bank charges
Vehicle fuel
Amount in BDT
30-Jun-20 30Jun-19
2,220494,420
6,730
L87,640732,O97
t,132,324513,488526,444
3,9!7,8771,811,035
L,338,2611,,447,682
685,1241,367,147
1,425,267
262,8t5527,945
46,s00,993 67,743,635
(a) Auditors' fees represents audit fee for auditing the accounts for the period ended 30 June 2019. Auditors were not paid any
other fees.
(b) The Company did not pay any remuneration to any Director who was not an officer of the Company.
(c) No board meeting attendance fee was paid to the directors of the Company.
29A.4,900,000
21,8s9,544
789,886
159,334
772,387
6s2,72L
730,O70
207,461
446,340
2,970,360
7,419,015
460,000
777,654
929,sO7
494,420
7,338,267
1,,336,490
498,338
7,3sO,641
7,398,479
262,87s
527,945
8,450,000
20,852,577
152,385
354,095
508,s33
584,955
189,594
277,U52,917,084
575,000
w,328
732,097
333,585
70,gsL
246,716
7,512,t23292,077
43,681,548 40,180,635
4,900,000
20,982,194
789,886
159,334
736,607
6s2,727
730,O10
201 ,467446,340
2,970,360
1,4L9,O15
460.000
777,654
929,507
494,420
1.,338,267
7,336,490
498,338
877,350
35,774
Frozen unit unit
E,7
L--t-)'l-]j {t
uD
U
J
a,
ta
a
a
J
Miscellaneous exPenses
Depreciation of fixed assets (Note: 5A.01)
Depreciation of right of use assets (Note: 5A'01)
lntangible Assets Amortizations (Note: 74.01)
Selling and disffibution expenses
Salary and allowance
Office maintenance
Traveling, conveyance and tour
Utilities and generator fuel
Office communication
Carriage outward
lnsurance premium
Entertainment
Offlce rent
Advertisement and PublicitY
oifice stationeryDostage and courier charges
irea th Safety Measure
Cleaning and security services
Tr-ainrng and conference
Trade promotion expenses
Bad Debts
Goods Damage
Trade fair expenses
Vehicle fuel
Distribution promotion expenses
Research and development expenses
Miscellaneous expenses
Depreciation of right of use assets (Note: 6'01)
Depreciation of fixed assets (Note: 5.01)
lntangible Assets Amortizations (Note: 7.01)
Selling and distribution expenses
Salary and allowance
Office maintenance
Traveling, conveyance and tour
Office communication
lnsurance premium
Entertainment
Office rentAdvertisement and PublicitY
Office stationery
Postage & courier charges
Health Safety Measure
Cleaning, Security and Sanitation
Training and conference
Trade promotion expenses
Bad Debts
Goods Damage
Tr-ade fair expenses\Jehicle fuel
Distribution promotion expenses
Research and development expenses
lvl iscellaneous expenses
Depreciation of right of use assets (Note: 64.01)
Depreciation of fixed assets (Note: 5A.01)
lntangible Assets Amortization (Note: 74.01)
Amount in BDT
30{un-20 30Jun-19
7,350,64t1,398,419
262,815
527,94542,768,424
30.
30A.
1,145,742
41,,600
151,250
157,385
48,235
7,038,2s7
460,8s9
6,220
1,0s4,332
133,207
422,333
30,100,5 19
28,734,366
73,797,622
22,828,L94
201,790
647,558
6,678,952
3,887,631
L09,283
477,172
2,847,O84
42,569,534
6,108,113
3,784,536109,283
373,055
2,841,O84
42,543,O34
44,265,920
3,850,764
1,688,011
8,796,032
3,372,339
280,895
2,507,O34
883,943
9,338,612
2,761,906
7,303,822
3,490
335,673
677,646
10,990,M8
2,083,406
t3,223,19!7,832,291
220,767
390,199
7,838,706
725,347,272
21,996,894198,140
643,558
1,136,998
751,250
157,38548,235
7,019,957
456,319
5,785
7,054,332
733,207
422,333
30,100,519
28,734,366
73,797,622
77,407,646
72,701
191,311
878,472
790,717
81,009
140,280
875,762
315,831
3,490
72,217
324,777
1,329,280
2,083,406
3,786,992
2,877,475
175,736
152,000
3,156,759
43,223,O78
2,606,784
79,813,051
58
159, 745,500
91,3,124
3,929,40L 4,921,237----ffi AWIrf------zszIle-F05
Amount in BDT
30Jun-20 3O-Jun-19
Salary and allowance
Office maintenance
Traveling, conveyance and tour
Office communication
lnsurance premium
Entertainment
Office rentAdvertisement and publicity
office stationery
Postage and courier charges
Health Safety Measure
Cleaning, Security and Sanitation
Training and conference
Trade promotion expenses
Bad Debts
Goods Damage
\/ehicle fuel
Distrlbution promotion expenses
Research and development expenses
lv1 sceilaneous expenses
Depreciation of fixed assets (Note: 54.01)
Depreciation of right of use assets (Note: 6A.01)
lntangible Assets Amortization (Note: 7A.01)
Other operating income
Scra p sa le
Freeze rentFactory rent
Insurance received
Gain on cow sales
Gain/(Loss) on sale of biological assets
Gain/(Loss) on disposal of non current assets (Note: 31.014)
Other operating income
Scrap sale
Freeze rentFactory rentGain on cow sales
lnsurance received
Gain/(Loss) on disposal of non current assets
Finance income
lnterest income from STD
lnterest income from FDR
21,013,818
L98,740
626,t11.
7,131,827
751,250
152,997
48,235
989,1.4t
450,321
5,785
1,054,332
133,207
422,333
30,100,519
28,734,366
73,797,622
s,506,959
3,609,660
109,283
373,055
42,543,034
2,847,084
3,929,407
17,547
5,777
4,388
30,815
s,998
501,154174,876
51.
31A.
L2,247,920
9,398,060
1,440,000
1,861,908
2,088,006
(3,4s6,3ss)
(14,343,186)
37,932,5U77,578,000
4,277,906
4,OO0,642
63,723,132
72,24t,920
9,398,050
7,440,OOO
2,088,006
1,861,908
(14,343,185)
24,779,775
77,578,OOO
L,440,OO0
4,OOO,642
L349,7s2
12,686,708
Scrap sale represents: Sale of various Scrap and Wastage including Chicken wings, skin, head and leg etc., and factory
construction Scrap. Here most of Other operating lncome is from sale of Chicken wastage.
Gain/(Loss) on disposal of non-current assets: The company disposed of 960 retail freezers and incurred loss of tk L4,343,186.
The freezers were damaged during the lock down period when the retailers abandon their premises leaving the freezers behind
without electricity. The contents inside the freezers were rotten during this period and the freezers were beyond further use and
repair. As the business premises were left unattended, flash flood happened during this lock down period also damaged another
good number of freezers.
72,836,809 5,920,030
563,776
unitFrozen unit
32..
59
t7, 6,483,206
L;rj
983,O76
t,723,032
I
Amount in BDT
30-Jun-20 30Jun-19
324.
334.
Finance income
lnterest income from STD
lnterest income from FDR
Finance expenses
lnterest on Short Term Loan
lnterest on Agri Loan
lnterest on Term Loan
lnterest on right of use assets
lnterest income from sister concern
lnterest on Corporate Bonds
lnterest against Workers Profit Participation Fund
Finance expenses
interest on ShortTerm Loan
nterest on Agri Loan
nterest on Term Loan
nterest on right of use assets
n:erest income from sister concernlnierest on Corporate Bonds
ln:erest against Workers Profit Participation Fund
lncome tax expenses
Current tax expense (Note: 34.1)
Deferred tax
Reconciliation of accounting profit to income tax expenseProflt before taxEffective tax rateTax effect on profit before taxTax effect on deductible expense for tax purposes
Tax effect on non deductible expense for tax purposesTax effect on capital gainTax effect on total statutory incomeTax effect on utilization oftax losses
lncome tax on current period profitTax on lce Cream Unit on Business income(Over) /Under provision for previous periodsMinimum tax be paid for lce Cream Unit
lncome tax charge for the period
Reconciliation of accounting profit to income tax expense
Profit before tax (Frozen Unit)
Effective tax rate
Profit before tax (Dairy Unit)
Effective tax rate
Tax effect on profit before tax (Frozen Unit)
Tax effect on others income (Frozen Unit)
Tax effect on profit before tax (Dairy Unit)
Tax effect on deductible expense for tax purposes
Tax effect on non deductible expense for tax purposes
Minimum tax effect on (Frozen Unit)
Tax effect on total statutory income
(Over) /Under provision for previous periods
lncome tax charge for the period
12,836,809
5,052,736
1,,865,267
40,43077,889,545 1,905,691
33.79,624,995
13,965,955
85,947,782
268,926(31,803,2441
36,250,000
7,433,4t3
724,134,060
18,789,27L
246,749,117
8,788,770
34,2t5,OOO
185,682,227
79,624,995
13,955,955
57,652,754268,926
(37,8O3,2441
36,250,000
7,433,4t3
66,612,38878,789,272
59,s13,3411,,547,733
34,215,O00
765,319
34L6,252,O59
(14,848,s03)47,732,13532,348,742
73,580,877
34.0117,966,728
o%(3,250,977]|75,677,448
(31,238)3,856,826
329,832,3580%
il,809,55955,630,750
(82,34s,22913,482,746
34.A
34A.01
16,252,059 42,577,235
16,252,Osg 42,577,235(7,221,3881
448,5235,427,767
L6,252,O59 4t,232,737
Tax is calculated using tax rates enacted for the period of assessment. The profit from Agro lndustries are taxed at 25%. and The
profit from Dairy Industries are taxed at L5%.
lncome tax expensesCurrent tax expenses (Note: 34A.01) 75,969,862 27,582,365
Deferred tax (73,91O,746],
2,059,176
(93,161,093)
25%
86,707,7t5
74.O7%
(23,290,2731.
7,644,063
t2,7t3,036(31,238)
L5,677,448
3,856,826
(12,819,660)
25%
124,657,835
74.180/.
(3,204,91s)
12,753,4sO
t7,671,821(24,s48,482)
14,999,947
3,482,746
15,959,862 21,L53,967
428,398
6C
1s,969,862 21,s82,36s
-
L8L,442,453
8,465,970
''l <
35.
5tA
01Jul-19 Opening Balance
16-lan-20 Right Shares
16-Jan-20 Bonus Share
30Jun-20 Closing Balance
Calculation of Adjusting Factor:
Fair/Market value before right sh;
Exercise Price
Theoretical Ex-right fair value per share
Adjusting factor for right issue
38.
36.
37
Share of profit from subsidiary
Net profit/Loss after tax during the period (GHICL)
Net profit/Loss after tax during the period (GHDL)
Non Controlling lnterest (GHICL)
Non Controlling lnterest (GHDL)
Share of profit from associate
Net profit/Loss after tax during the period (GHICL)
Non Controlling lnterest (GHICL)
EarninB Per Share
Basic and diluted earning per share
Profit attributable to the ordinary shareholders
Number of ordinary shareholders in the period end
Basic and diluted earning per share
Amount in BDT
30Jun-20 30Jun-19
(4,900,s88)
r23,779,53L
(331,691)
(13,49s,293)
82,923
13,675,44t1 L!O,O35,470
(22,7L6,s64],
12,494,7L0
0.04 1.93
(1O,222,4s41
7,565,863 242,839,11,1,
125,905,28019
During pandemic COVID - 19 crisis and General Holiday declared by Government, production and sales became totally frustrated.
Rested EpS up to 3rd Quarter of 2OL9-202O was Taka O.5O in respect of the restated EPS of the 3rd quarter of 2078-2079 was Taka
0.86. Sales were increased by Taka 76,702,500 against the same period of the previous period though sale of Taka 740,775,468.
Eut due to pandemic Corona Virus (COVID - 19) digester which is unavoidable and beyond our control, the company is unable to
continue consistency in sales and production process. As a result, net income after deduction of tax decreased which causes the
slgnrfcant deviation in EPS.
Earning per share
Basic and diluted earning per share
Proflt attributable to the ordinary shareholders
Number of ordinary shareholders in the period end
Basic and diluted earning per share
7,555,863
191,39s,001
247,839,n4125,905,280
0.04 1 02
179,909,790
89,932,342
209,842,t325,99s,490
215,837,622
0.s5
0.45
1.05 1.36
1.36
93,233,233 rL9,909,790
5,995,490
98,761.,768191,395,001 125,905,2801.00 1.05
1
o.75
26
10
26
7.5
!.75 33.5
79.14
1.36
Net Assets Value Per Share (NAV)
Total Assets
Less: Total Liabilities
Less: Non controllable interest
Net Assets Value
Number of ordinary shares outstanding during the period
Net Assets Value Per Share (NAV)
Net Assets Value Per Share (NAV)
Total Assets
Less: Total Liabilities
Net Assets Value
Number of ordinary shares outstanding during the period
Net Assets Value Per Share (NAV)
s,382,165,660
2,L37,099,211.
5,032,270
7,748,446,475
4,504,963,633
844,138,981
3,240,034,179 2,399,343,861
275,837,627 1L9,909,790
15.01 20.01
5,148,906,560
1,908,872,387
4,775,7 ',J.,999
7,776,398,738
3,240,034,779 2,399,343,861
215,837,62L L19,909,790
Date Pa rticulars No of Share Time Bonus Factor
AdiustingFactor for right
issue
Outstanding
share 2020
38A
6'1
15.01
Outstanding
share 2019
20.01
Amount in BDT
30Jun-20 30-Jun-19
39.
39A
40.
40A
Net operation cash flow per share
Net operation cash flow from statement of cash flow
Number of ordinary shares outstanding during the period
Net operation cash flow per share
Net operation cash flow per share
Net operation cash flow from statement of cash flow
Number of ordinary shares outstanding during the period
Net operation cash flow per share
Reconciliation of operating cash flows with net profitProfit before tax
Adjustment for non cash items
Depreciation
Amortization
Contribution to WPPF
Share of profit/loss from associates
Adjustment for separate consideration
Finance cost
Gain/(Loss) on disposal of non current assets
Fair value adjustments of biological assets
Changes in current assets and liabilitiesI nve nto ri es
Advances, deposits and prepayments
Trade and other receivables
Accounts and other payables
Accruals and provisions
Payment against WPPF fund
Tax paid
Net cash flows from operating activities
Reconciliation of operating cash flows with net profitProfit before tax
Adjustment for non cash items
Depreciation
Amortization
Contribution to WPPF
Share of profit/loss from subsidiary
Sha re of profit/loss from associates
Adjustment for separate consideration
Finance cost
Gain/(Loss) on disposal of non current assets:
Fair value gain from biological assets
Changes in current assets and liabilitiesI nventories
Advances, deposits and prepayments
Trade and other receivables
Accounts and other payables
Accruals and provisions
Tax paid
Net cash flows from operating activities
72L,709,250
191,395,001
4L8,548,229
125p1s,2800.54 3.32
1,12,486,970
191,395,001
760,328,631.
72s,90s,280
0.59 L.27
7,744,273 329,832,358
66,L09,3s24,98s,292
7,L76,744
1o,222,454
785,707,28L
L7,799,547(17,840,039)
(707,429,299)
1,226,7L4(42,487,08s)
t4,736,772(9,933,ss9)
(7s,701.,392],
203,868,815
4,921,237
15,495,001
433,s2s,364
(18,072,083)
(313,9s3,092)
Iq 7?q ?,qdi
( 1ss,183,221)
(34,882,276)
11.,424,9M
72L,,709,250
(49,689,424\
418,548,229
9,624,980 272,887,M5
65,348,308
4,985,292
1,776,144
3,675,44770,222,454
1.57,4L2,263
74,343,186(2,774,970].
(101,039,s90)
1,226,7L4(47,93s,1O4)
\s,291,926(9,968,082)
(7s,70L,3921
66,218,565
2,606,784
8,742,599(17o,o35,47O)
181,423,399
(2,622,6871
(168,190,826)
(6,26s,8941
(62,330,L271
(140,613)
5,056,850(26,42O,8061
Ohaka
o/_
1.60324,63r
41 Segmental information:
The Groups operational segments are frozen snacks, dairy and ice cream. The operational segments results are
as follows:
ParticularsFrozen Snacks and
Dairy ProductDairy Total
Revenue from sales
Expe nses
Segment result
Capital expenditure,Additions to property, plant and equipment,Addltions to right of use (ROU) asset
,Additions to intangible asset
Other segment information
Other operating income
Fair value adjustments of biological assets
Finance income
Finance expenses
Provision for income tax
Share of profit from subsidiaries
Depreciation expenses
Segment assets
Non-current assets
Current assets
Segment liabilitiesNon-current liabilitiesCurrent liabilities
L49,34L,0O5 1o,524,L57 159,865,162
256,320,686 1_14,870 256,435,556
L4,924,493 14,924,493
838,160,294
688,819,289
47,032,877
36,508,660
885,193,111
725,327,949
12,686,708
2,174,970
77,889,545
757,393,209
2,059,!16(3,675,4471
62,244,409
15,665,059
28,289,Otg(655,560)
767,044
12,686,708
77,840,039
77,889,545
785,682,227
1,403,556(3,675,441)
63,005,453
5,148,906,560
2,759,763,476
_____2389,743,08!_
!,908,872,381937,872,60L
970,999,780
382,466,918
373,575,354
8,951,564
5,531,373,478
3,132,678,834
2,398,694,648
362,337,837
728,630,92r
233,706,976
2,271,210,218
7,066,5O3,522
1,204,706,696
Oh.ka
63
42
42.01
Amount in BDT
30-Jun-20 30Jun-19
Other information
Contingent liabilities and commitments
Contingent liabilitiesThe Group confirms that there are no case filed against the Group which is not disclosed which would have been a material
impact on the financial position of the Group. There was no Contingent Liabilities as on 30 June 2020.
Capital expenditure commitment
Capital expenditure commitment for machineries and raw material at 30 June 2020 were as under:
Term loan commitment Consolidated The Company Dairy
At 30June 2020the company had annual commitment underTerm Loan as set out below:
Term loan principal due within l year 255,887,448
Term loan principal due within 2 to 5 years 973,745,510
Term loan principal due above 5 years
Finance lease commitment Consolidated
212,289,237
845,1,1,4,589
The Company
43,598,21,7
128,630,921,
Dairy
At 3O June 2020 the company had annual commitment under right of use assets as set out below:
Lease assets expires within L year 678,791 678,791,
-:ase assets expires within 2 to 5 years
42.02 Related party transactionsThecompany hasenteredintotransactionswithotherentitiesthatfall withinthedefinitionof relatedpartyascontainedinlAS-
24 "Related Party Disclosures". Total transactions of the significant related party as of 30 June 2020 are as follows:
Name of Company RelationshipNature of
TransactionOpeningBalance
Addition/(Adjustment)
Closing
Balance
Golden Harvest Dairy
Ltd.
Subsidiary
company
Current account with sister
concern1,44,988,424 (1-4,774,174\ 130,81,4,250
Golden Harvest Foods
Ltd.
Common
DirectorCurrent account with sister
concern25,802,809 59,832,470 85,635,279
Golden Harvest
lnfoTech Ltd.
Common
Director
Current account with sister
concern84,953,001 104,583,027 189,536,028
Golden Harvest
Developers Ltd.
Common
Director
Current account with sister
concern60,L76,708 14,487,57t 74,664,379
Golden Harvest QSR
Ltd.
Associate
company
Current account with sister
concern88,820,s39 247,355,033 336,175,572
Samadhi ArtFou ndation
Common
DirectorCurrent account with sister
concern27,079,829 (27,019,829)
Total 43L,76,-,310 38s,064,198 816,825,508
Transaction for capital
Transaction with man
Common
Director
Capital Expenditure for landl I
developments and factoVl Iconstruction. I I
89,722,663Braintrain Studio Ltd.
30-Jun-20No. Particulars
\4anagerial remuneration paid or payable during the year to the directors, including
ranaging directors.
3o ;en Harvest Agro lndustries Limited
:-,,, cther perquisite or benefits in cash or in kind stating, approximate money value
,,, rere applicable.
l:-er allowances and commission including guarantee commission::rsions etc.
(i) Pensions
li)Payments from a provident funds, in excess of own subscription and interest thereonlll)Gratuities
4,900,000
(a)
(b)
(c)
(d)
(e) Share Based payments
30Jun-19
8,450,000
64
42.03 euantitative details of opening stock, purchases/ production, consumption/sales and closing stock of raw materials and
finished goods:
Golden Harvest Agro lndustries Ltd.
Item
Opening
stock
Purchases/
Production
Unit Kg
7,682,145875,544
L,047,727
588,805
Kg
Raw materials:Fortheyear 30June2020
Fortheyear 30June2019
Finished goods:
Snacks
For the year 30 June 2020
For the year 30 June 2019
Kg
Kg
7,38L,739
8,997,304
2,547,563
3,012,251
Golden Harvest Dairy Ltd.
Consumption /Sales
Kg
7,155,050
8,190,704
2,324,2442,553,336
Consumption/Sales
Kg
950,925
818,693
797,166746,344
Closing Stock
Kg
70,40r68,063
42.04 Capacity utilization
Golden Harvest Agro lndustries Ltd.
Frozen Production
Dairy production
ItemCapacity in KG
Per Year
Utilization in KG
Average Per year
2,787,204360,3s9
%
87.87%
s3.95%
%
2,489,000
668,000
Golden Harvest Dairy Ltd.
ItemCapacity in KG
Per Year
Utilization in KG
Average Per year
Milk Production(Quarterly) 1,512,000 797,1,66 52.72%
{2.05 lmpact of COVID-19
As the COVID-19 pandemic is complex and rapidly growing, the Company's plans as described below may change. At
this point, the company cannot reasonably estimate the duration and severity of this pandemic, which have or could
have a material adverse impact on the company's business, results of operations, financial position and cash flow.
Risk Factors
The company's business had been financially affected by the ongoing COVID-19 pandemic. ln December 2019, COVID-
19 emerged and had subsequently spread worldwide. The World Health Organization declared COVID-19 a pandemic
resulting government of Bangladesh and private entities in the country assigning various restrictions. Following
measures were commonly applied: travel restrictions, restrictions on public gatherings, stay at home orders and
directions, isolating people who might have been exposed to the virus. ln an effort to mitigate the spread of COVID-
19, and taking into consideration the guidelines from the government of Bangladesh, effective March 19, 2020, the
Company closed its Head Office for at least 2.5 Months and operated its factory activities at a minimum level.
Closing
Stock
Kg
1,908,8s4
1,,682,145
1,277,0407,047,72t
ItemOpening stock
Purchases/
Production
Unit
68,053
22,240
Kg
Raw Materials:For the year 30 June 2020
For the year 30 June 2019
Finished Goods:
Forthe year 30 June 2020
For the year 30 June 2019
Kg
Kg
9s3,263854,515
797,166746,344
*6
Dhelra65
Ks
,t, Golden Harvest Agro lndustries and its subsidiary companies and business segments has been affected adversely due
the spread of COVID-19. Sales declined by 8% during 3rd quarter and 42% during 4th quarter, as a result EPS also
reduced by 97.80% in the year compared to corresponding previous year.
From the very beginning of the lockdown condition, demand of certain products have been decreasing. On the top of
this, because schools are closed from middle of March, majority of products do not have any demand as they are
largely used as school tiffin. Hotel, Restaurant, Caf6/Catering (HORECA) channel were our major consumers. All hotels,
restaurants, cafe and catering across the country were closed from the day of lock down and sales from that channel-
category reduced zero. Even though, retail shops, which sold our products, used to remain open for limited time of the
day. Again, due to Govt. decision these shops could allow only limited number of customers at a time as health safety
measure,
Effect of COVID-19 on ice cream industry in Bangladesh, is not comparable with any other industry, nor with any other
country. Golden Harvest lce Cream Limited, an associate company of Golden Harvest Agro lndustries Ltd. also suffered
immensely. A vested interest group in Bangladesh raised false alarm against consumption of ice cream, circulating thatice cream consumption triggers the risk of COVID-19. The group had been using loudspeakers, social-media, hand-
leaf ets and word of mouth to spread these unfounded rumors. Our cold distribution vans also faced resistance from
the rumor mongers and even delivery men were assaulted in some places bythem. As a result, in the current state ofconfusion and uncertainty, general public started believing in those rumors and ice cream consumption fell drastically.
Parents, out of fear, literally not buying ice creams for their children, the main consumers being school going children.
Supply chain broke down, rendering our product distribution difficult and expensive. On the other hand, sourcing ofraw material became very hard. Because of shortage of raw material for certain items, we were bound to stopproduction of such items. We fell short of packaging materials since March 2020 and stopped production of some
SKUs.
Also, in April & May 2020 country was fully locked down. As a result huge amount of raw materials, packing materials
and finished goods lost their shelf life. Due to restricted movement of International maritime vessels it was notpossible to import prime raw materials for lce cream.
Despite very low sales, the company has been paying salaries, utilities, rentals and other operational expenses from
the scanty reserye. Receivables remained uncollectable as well.
Operation of our business very largely depends on consistent cash flow. During the COVID-19 period cash flow had
been erratic and unreliable. As a result general operating activities were hampered.
Mention should be made here that sustainability in frozen food processing business is ensured through regularmanufacturing activities. During the lockdown period manufacturing activities were hampered. This resulted in
reduced cash flow and lack of capital investment. Due to these factors company's debt servicing also became irregular.Overall financial result was unsatisfactory and the dividend payment was also not possible. Earnings per share also
reduced to nothing.
As a prudential move and in order to augment growth and profitability the company has been reviewing its futurefinancial position in perspective. The company is reducing the expenses and applying financial austerity. lt is expected
that these corrective measures would ensure growth and profitability and the company will regain its position toresume dividend payment.
{2.06 Employeedetails:
At the end of the period there were 580 employees in the group and 552 employees in the Company at a remuneration of BDT
3,000 per month and above.
42.07 Rounding offArnounts appearing in these financial statements have been rounded off to the nearest BDT and, wherever considered
necessary.
Dhaka
bb
t,
la
a-
42.08 Event after reporting period
1. Due to the COVID-19 pandemic the business has been affected adversely. There was no substantial disposable income during
the current year for declaration of dividend. Therefore, the board of directors in its 139th Board Meeting held on 28 october
2020, had declared no dividend. Besides this, the board of directors also considered it appropriate to hold some amount of
retained earnings as reserve fund for this uncertain period and also consider expanding into new market opportunities including
export resulting out of COVID 19 situation'
2. The company has collected intercompany receivables of fK351,776,623 and utilized the fund for repayment of some loans
andmeetingoperationalworkingcapitalrequirementsduringCoVlD-19pandemic.
DirN,L,'2,, *^fio,,.o.,Director
nSecretary
Chief Officer
Dhaka
67
sl
No.Name of Bank Account No. 30-Jun-20
1. First Security lslami Bank Ltd sN D-1 12 13 100000610 5,3LO,024
2 First Security lslami Bank Ltd sN D-112 13 100000s62 7,729
3 First Security lslami Bank Ltd sN D-010113 100009403 43,799
4 Agrani Bank Limited 02000L449231-4 9,310
5 Mercantile Bank Limited 1L2913125970557 3,575,29O
6 Dhaka Bank Ltd 2151000012069 3,850.00
7 Shahjalal lslami Bank Ltd 4057 1,1100000068 37,964
8 Meghna Bank cD-110111100000138 1,660
9 AL-ARAFAH ISLAMI BANK LTD sN D-1641220000129 4,540.!O
10 Mercantile Bank Ltd cD-1,129L1,107033338 6,338
1.1. Bank Asia Ltd cD-0s633000010 3,048
1,2 Community Bank Ltd cD-001030274L10L 747,330
13 NRB Global Bank Limited 01r.30002906s8 592,582
1.4 Standard Bank Limited 01736000297 2,100,105
15 United Commercial Bank Ltd. cD-09s 1101000003351 315
76 United Commercial Bank Ltd. sN D-0951301000000356 3,926,349
1.7 United Commercial Bank Ltd 0951301000001348 1"83,887
18 Habib Bank Ltd cA-2627070000228
19 Standard Bank Limited sBL-01736000303 L16,231_,709
20 The Premier Bank Ltd 0178 13100000063 28,836
Sub-Total 132,7L4,063
1. Standard Bank Ltd FDR 152,337,500
2 Standard Bank Ltd FDR 91,392,500
Sub-Total 243,730,OO0
Total 376,444,063
Golden Harvest Agro lndustries LimitedStatement of Cash at Bank
Ason30 lune2O2O
Golden Harvest Dairy Ltd.Statement of Cash at Bank
As on 30 June 2020
[Annexure-A]
30-Jun-19
59,784
954,84663,367
L,077,996
30-Jun-19
1_,894,766
7,613
217,344,323
L,334,601_
16,632
4,L70
1,,243,585
325,827
660
737,052
378,855
975
29,378
222,7t8,3L7
222,719,3L7
sl.
No.Name of Bank Account No. 30-Jun-20
1. Mutual Trust Bank Limited Current Account 812,608') Standard Bank Limited Current Account 187,008
3 The Premier Bank Ltd Current Account 63,668
Total L,O63,284
Dhaka
68
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