GHAIL-Financial-Statements-2020.pdf - Golden Harvest

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

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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.


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

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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

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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


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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

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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


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

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Secretary

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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



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

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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

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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


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


NotesParticulars

Revenue

Cost of goods sold

Gross profit

Operating expenses

Administrative expenses



Fair value gain from biological assets

Profit from operations

Finance income

Finance expenses

Net profit from operations


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&

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Finaniia tChief lOfficer3 ;'ec ;", ierms of our seporote report of even dote onnexed.

l-:::r 28,2020Nasir Uddin Ahmed FCA

Senior Partner


Amount in BDT

20L8-20L920L9-2020

(43,681,548) (40,180,635)

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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


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

Dhaka

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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

Dhaka

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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

2.7

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.

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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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Subsequent Costs

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 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.

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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


Advance to contract farmer, suppliers & service providers

Adva nce taxes

Advance VAT

Right Share lssue Cost

Other Deposit

Lease deposits


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 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 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



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


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


Non controlling interest

Opening balance


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


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


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


lnterest charged for the YearDisposal of subsidiary comPanY

Closing balance

25.02.03 Workers profit participation fund

Opening balance


lnterest charged for the YearD sposal of subsidiary companY

C ostng balance

25A.

25A.01

25A.02

25A.02.01 Employees welfare fundOpening balance


Interest charged for the year

Closing balance

25A.02.02 Bangladesh workers welfare fund

Opening balance


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


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)


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


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



Factory maintenance

Traveling, conveya nce, tour


Offlce communication

Carriage Inward

lnsurance premium

Ente rtainment

Office stationery




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





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 right of use assets (Note: 6.01)

Intangible Assets Amortizations (Note: 7.01)

Administrative expenses

Director remuneration



Offlce maintenance

Travelrng, conveyance, tourUtl ities a nd generator fuel


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



lntangible Assets Amortizations (Note: 7A.01)

Director remuneration



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


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 right of use assets (Note: 5A'01)

lntangible Assets Amortizations (Note: 74.01)

Selling and disffibution expenses


Office maintenance

Traveling, conveyance and tour



Carriage outward

lnsurance premium

Entertainment

Offlce rent

Advertisement and PublicitY

oifice stationeryDostage and courier charges

irea th Safety Measure


Tr-ainrng and conference

Trade promotion expenses

Bad Debts

Goods Damage

Trade fair expenses

Vehicle fuel

Distribution promotion expenses

Research and development expenses


Depreciation of right of use assets (Note: 6'01)


lntangible Assets Amortizations (Note: 7.01)



Office maintenance



lnsurance premium

Entertainment

Office rentAdvertisement and PublicitY

Office stationery

Postage & courier charges



Training and conference


Bad Debts

Goods Damage

Tr-ade fair expenses\Jehicle fuel

Distribution promotion expenses


lvl iscellaneous expenses



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


Office maintenance



lnsurance premium

Entertainment

Office rentAdvertisement and publicity

office stationery

Postage and courier charges



Training and conference


Bad Debts

Goods Damage

\/ehicle fuel

Distrlbution promotion expenses


lv1 sceilaneous expenses


Depreciation of right of use assets (Note: 6A.01)

lntangible Assets Amortization (Note: 7A.01)


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)


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


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


Proflt attributable to the ordinary shareholders

Number of ordinary shareholders in the period end


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



Total Assets

Less: Total Liabilities

Net Assets Value



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




Net operation cash flow from statement of cash flow



Reconciliation of operating cash flows with net profitProfit before tax

Adjustment for non cash items

Depreciation

Amortization


Share of profit/loss from associates

Adjustment for separate consideration

Finance cost

Gain/(Loss) on disposal of non current assets


Changes in current assets and liabilitiesI nve nto ri es





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


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





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



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


concern84,953,001 104,583,027 189,536,028

Golden Harvest

Developers Ltd.

Common

Director


concern60,L76,708 14,487,57t 74,664,379

Golden Harvest QSR

Ltd.

Associate

company


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


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


Finished Goods:

Forthe year 30 June 2020


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

GHAIL-Financial-Statements-2020.pdf - Golden Harvest

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