Green Group
No.
NameID No.
1.
Shekh Forid104431
2.
Munia Sirat104447
3.
Anamika Mandal104457
4.
Asif Ahmed104483
5.
Md. Al Hadi104493
6.
Tahsina Azad104513
7.
Jouthy Pandit Keya104535
8.Faisal Ahamed Hanjala
104545
9.Shahnaz Hossain
104557
Table of Contents
No.Name of the contents Page no.
01.About Keya Cosmetics Ltd.3
02.Determination of Business Profit, Capital Profit, Divisible
Profit, Dividend and Interim Dividend of Keya Cosmetics Ltd.6
03.Discussion about the type of their audit report.8
04.The list of the significant that are not included in Keya
Cosmetics Ltd financial statements but included in the notes to the
financial statement which may affect the decision of prospective
investors.11
05.List of the Accounting principles and assumptions that Keya
Cosmetics Company LTD. Used.12
06.List of the any CSR activities that the company has performed
and the amount.16
07.The commentary of the quality of disclosure that the Keya
Cosmetics Ltd. has disclosed in their Annual Report.19
08.Recommendation.24
01. About Keya Cosmetics Ltd.
Introduction:Keya cosmetics ltd. is a well known concern of
Khaleque group of industries. Originating in 1996, as a public
limited company registered with the office of the registrar of
joint stock companies and firms with a paid up capital of tk. 240
million and authorized capital of tk. 700 million, Keya cosmetics
ltd. is one of the leading cosmetics manufacturing company in
Bangladesh. Located at jarun-konabari, Gazipur covering an area of
28,800sft, the company began its production in 1997 with a
state-of-art manufacturing facility and has a strong workforce of
744 people.Company Keya Cosmetics Ltd. has been converted as a
Public Limited Company in the year 1999. Initial public offering of
shares (IPO) was done in 2001 and the company was listed with Dhaka
& Chittagong Stock Exchange in the year 2001. The company has
been giving hand some dividends to the shareholders every year for
which the shares of the company are in high demand in the market
and value of shares are going up.Putting together a strong
marketing team and recruiting and retaining employees with the
needed experience, Keya cosmetics Ltd has developed a set of
abilities that enable good marketing strategy execution. Keya
cosmetics ltd is always trying to push down authority to lower
managers and front line employees. Taking care of budgeting
requirements, creating strategy supportive policy, initiative
mechanism for continuous improvement, reward system and corporate
culture etc are important elements of its marketing strategy. Keya
Cosmetics Ltd uses full market coverage strategy which attempts to
serve specific customer groups with specific products.Keya Beauty
Soap is a renowned Brand in Bangladesh as well as in India and huge
exports are being done regularly in India, Bhutan & Middle
East. In recognition of exceptional export performance of Cosmetics
the Government of Bangladesh has honored Mr. Abdul Khaleque Pathan
with export Trophy for consecutive 3 years 2002-2003, 2003-2004
& 2004-2005. Keya Soap is a Brand Ambassador Globally as the
Soaps are exported in innumerable countries as a baggage item.
Mission:Care you in befitting manner with our continuous
improved products that feel you better.
Vision: Keya Cosmetics Ltd. aspires to become the leading
cosmetics and toiletries manufacturing company in Bangladesh with
diverse product portfolio and instill long-term brand loyalty
towards its product in addition to its commitment to be a part of a
Bangladeshi & various other countries male and female in
increasing number.
Objectives:No compromise with quality is the key objective of
Keya cosmetics ltd. They are passionate to serve high quality
Cosmetics and Toiletries, Detergent Powders, Glycerin Products and
Soap Noodles (Sodium Salt of Palmitic Acid), the major raw
materials of Beauty and Laundry Soap within affordable price; we
are committed to serve our best towards the stakeholders.
Commitments: To support activities for the protection of
environment To maintain ethical standards of products quality that
care human skin, hair, tooth in all respect. To participate in
economic development of the country by the paying to the government
exchequer as income tax, vat, import duty and supplementary. To
develop a good management team and reward employees in a fair
manner. To develop a positive relationship with the shareholders by
paying regular good dividend.
Strategy:Keya cosmetics Ltd has always been trying to maintain
three types of strategy. A. Products benefit strategy B. Image
developing strategy C. Product positioning strategy.
Market share of major toiletries and cosmetic firms of
BangladeshSl. No.CompanyBrand NameYearly Market Share on Toilet
Soap (Fig in Crore)
1Unilever (BD). LtdLuxTk. 31243.33%
2Square (Toiletries Division)Meril Beauty Soap486.66
3Keya Cosmetics Ltd.Keya Beauty Soap7210.00%
4Aromatic Cosmetics Ltd.Aromatic Beauty Soap486.66%
5Lily Cosmetics Ltd.Lily Beauty Soap7210.00%
6Kohinoor Chemical Co.Tibet Beauty Soap7210.00%
7Marks & Allys Ltd.Camelia Beauty Soap608.35%
8Others 365.00%
Total Market720 Core100%
02. Determination of;
Business ProfitParticularsTk.
Net turnover2,405,182,974
Gross turnover2,749,675,737
VAT ABD S/Duty(344,492,763)
Less: Cost of Goods Sold1,881,706,044
Gross Income593,476,930
Less: Operating Expenses:248,061,753
Selling, Distribution and Adm. Exp115,176,797
Financial Expenses130,297,580
Issue Expenses2,587,376
Operating Income/ Business Profit345,415,178
Capital ProfitParticularsTk.
Premium received on the issue of shares.739,944,940
Capital Profit739,944,940
Divisible ProfitParticularsTk.
Net turnover2,405,182,974
Gross turnover2,749,675,737
VAT ABD S/Duty(344,492,763)
Less: Cost of Good Sold1,881,706,044
Gross Income593,476,930
Less: Operating Expenses:248,061,753
Selling, Distribution and Adm. Exp115,176,797
Financial Expenses130,297,580
Issue Expenses2,587,376
Operating Income/ Business Profit345,415,178
Non Operating Income35,638,514
Net Income Before WPP and WF381,053,692
Allocation of WPP and WF(18,290,577)
Net Income Before Tax362,763,114
Provision for Income Tax(97,932,226)
Net Income/ Divisible Profit264,830,888
Dividend10% Stock Divided was declared by the company on
existing 147,988,988 ordinary shares.The dividend amount will
be:Particulars
No. of Ordinary Shares 147,988,988
10% of Ordinary Shares14,798,898.8
Per Share Tk.10
Stock Dividend amount Tk.147,988,988
Interim DividendKeya Cosmetics Ltd did not declare any interim
dividend in this period.
03. Type of the Audit Report of Keya Cosmetics LimitedG. KIBRIA
AND CO.Chartered Accountants Auditors ReportWe have audited to
accompanying Statement of financial position of KEYA COSMETICS
LIMITED as of June 30, 1012 and the related Statement of
Comprehensive Income, Statement of Cash Flow and Statement of
Changes in Equity for the year then ended. The preparation of these
financial statements is the responsibility of management and. Out
responsibility is to express and independent opinion on these
financial statement based on our audit.We conducted our audit in
accordance with Bangladesh Standards on Auditing (BSA). Those
standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on test
basis, evidence supporting the amount and disclosures in the
financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis
for our opinion.In our opinion, the financial statement prepared in
accordance with Bangladesh Accounting Standard (BAS), give a true
and fair view of the state of the companys affairs as of June 30,
1012 and of the results of its operations for the year then ended
and comply with company act, 1994 and other applicable laws and
regulations.We also report that: We have obtained all the
information and explanations which to be best of our knowledge and
belief were necessary for the purpose of our audit and made due
verification there of. In our opinion, proper books of account as
required by law have been kept by the company so far as it appeared
from examination of those books. The companys statement of
financial statement position and statement of comprehensive income,
statement of cash flow and statement of changes and equity dealt
with by the report are in agreement with the books of accounts and
returns.
Place: Dhaka G. KIBRIA AND CO.Date: 23 Oct 2012 Chartered
AccountantsAn audit report can be classified by five types
according to their nature. They are 1. Standard Unqualified Audit
Report2. Unqualified Audit Report with Explanatory Paragraph.3.
Qualified Opinion.4. Adverse Opinion.5. Disclaimer of Opinion.The
audit report of Keya Cosmetics Ltd. as June 30, 1012 has some
definite indications by which we can easily identify which type of
audit report it is. These are given below-
In the audit report of Keya Cosmetics Ltd we can quote from the
Introductory Paragraph that-We have audited to accompanying
Statement of financial position of KEYA COSMETICS LIMITED as of
June 30, 2012 and the related Statement of Comprehensive Income,
Statement of Cash Flow and Statement of Changes in Equity for the
year then ended.After analyzing the quotation of Introductory
Paragraph it can be said that the all the statements like Statement
of financial position, Statement of Comprehensive Income, Statement
of Cash Flow and Statement of Changes in Equity are included in the
financial statement and also dealt with the report are in agreement
with the books of accounts and return.
Then we can see in the Scope Paragraph that-We conducted our
audit in accordance with Bangladesh Standards on Auditing (BSA).
Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements
are free of material misstatement.From this part of the scope
paragraph we can understand that the three general standards have
been followed in all respects on the engagement by the auditor and
also find reasonable assurance that the financial statements are
free of material misstatement.
There is an another important portion in the scope paragraph
stating that-An audit includes examining, on test basis, evidence
supporting the amount and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion. This part of scope
paragraph also described that the auditor accumulated the evidence
on test basis for supporting the amount and disclosures in the
financial statements. It also described that all accounting
principles and significant estimation made by management have been
assessed.
Then from the opinion paragraph we can quote In our opinion, the
financial statement prepared in accordance with Bangladesh
Accounting Standard (BAS), give a true and fair view of the state
of the companys affairs as of June 30, 1012 and of the results of
its operations for the year then ended and comply with company act,
1994 and other applicable laws and regulations.We can realize from
the paragraph that the report is made by maintaining Bangladesh
Accounting Standard (BAS) and the financial statements gives a true
and fair view of the state of the companys affairs as of June 30,
1012 and it complies with the companies laws and regulation.
We can also see that there is no explanatory paragraph after the
opinion paragraph. If there is any explanatory paragraph it will be
shown after the opinion paragraph. At the end of the discussion,
after evaluating the whole audit report we can understand that the
report has fulfilled all the conditions to be a Standard
Unqualified Audit Report. Those conditions are, all financial
statements are included in the financial statements, three
standards have been followed on the engagement, sufficient evidence
has been accumulated, and the financial statements are presented in
accordance with generally accepted accounting principles (GAAP), no
explanatory paragraph or modification of the wording of the report.
This audit report is involved with these five conditions. So we can
call this report a Standard Unqualified Audit Report.
04. Significant Events not included in Financial Statements but
in the Notes Basic Earnings:The earnings of Keya Cosmetics Ltd. are
for the period attributable to ordinary shareholders. As there was
no preference share there was no preference dividend, minority
interest, or extra ordinary items, the net profit after tax for the
period has been considered as fully attributable to the ordinary
shareholders. This type of opportunity will attract on the
investment decision of prospective investors in this company.
Contingent Liability:In the financial statement there is non
contingent liability of Keya Cosmetics Ltd. But the note states
that there is no contingent liability as on 30.06.2012 except L/C
liabilities. If there is a contingent liability of L/C it will
greatly affect the decision of prospective investors. These types
of investors do not want to involve with this risk. The company
should disclose the contingent liability of L/C and how is the
amount. Then the investors compare this amount with the liquidity
of the company. Through this way the investors understand that the
company has or has not the ability to reduce this type of
liability.
Addition of Assets:An amount to Tk. 62.45 million has expensed
for a land development during the year 2011-2012. But the edition
of land and land development includes the development cost of land
which was under process of registration and said land shown as
advance against land. For under process of registration, the
company still does not get the ownership of this asset. In any case
the process of registration has been prohibited; the company will
be stacked with a great problem. Because balance of the period is
38,256,268 and addition during the period is 62,456,301. If it
happens the balance of land and land development will go into minus
figure. The divestment decision of prospective investors in this
company is in high risk.
Bad debt and provision for bad debt:There is no such debt in
this respect as on 30 June 2012. The company does not make any
provision for doubtful debts as on 30 June 2012, because of the
fact that sales/export are being made on regular basis with fixed
maturity dates. The debtors occurred in the ordinary course of
business are considered good and secured. This much affect the
prospective investors decisions.05. Accounting Principles,
Assumptions and Method Used
Assumptions
1.Going Concern
2.Economic Entity
3.Monetary Units
4.Time PeriodKeya Cosmetics Company LTD. has adequate resources
to carry out its operational existence for the foreseeable future.
It is therefore appropriate to adopt going concern basis in
preparing the financial statements.As a public limited company Keya
Cosmetics LTD. must follow this principle.Transaction denominated
in foreign currencies are translated into Bangladesh Taka and
recorded at rates of exchange ruling on the date of transaction in
accordance with IAS-21 The Effects of Changes in Foreign Currency
Rates.The company used the time period of1st July 2011 to 30th June
2012.
Principles
1.Historical cost
2.Revenue recognition
3.Matching
4.Full disclosureCompanys financial statements have been
prepared in accordance with the going concern principle and
Historical Cost convention the significant basis under mercantile
accounting system.The revenue are recognized after satisfying all
the conditions for revenue recognition as provided in IAS-18
Revenue Recognition Sales through the distributors are recognized
at the time of delivery from depots whether or not billed. Other
sales are recognized at the time of delivery from factory godown.To
establish brand name and capture market share the company had to
spend in advertising and publicity during the year which has been
charged to Income Statement as selling expenses in the current
year.
Company disclosed its necessary information.
Constraints
1.Materiality
2.Cost benefits analysis
3.Industry practice
The financial statements of Keya Cosmetics LTD. Company have
been prepared inconformity with the provisions of the Companies Act
1994, the Securities and Exchange Rules 1987, Accounting Standard
(IAS) which is adopted by the Institute of Chartered Accountants of
Bangladesh and the relevant rules and regulations. So it is not
materially misstated.The financial statements have been prepared in
accordance with the going concern principle and Historical Cost
convention the significant basis under mercantile accounting
system.Fixed Assets are stated at their historical cost less
accumulated depreciation in accordance with IAS 16 Property, Plant
and Equipment. Cost represents cost of acquisition or construction
and capitalization of pre production expenses including interest
during construction periodNo depreciation is charged on land and
land development. In case of disposal of fixed assets, no
depreciation is charged in the year of disposal. Depreciation of
all properties is computed using the reducing balance method in
amount sufficient to write off depreciable assets over their
estimated useful economicLives. The annual depreciation rates
applied to the principal categories are: Factory Building 5% Plant
and Machinery 10% Other Machinery 10% Laboratory Equipment 10%
Electrical Equipment 15% Office Equipment 15% Furniture and fixture
10% Vehicles 20% Fire Fighting Equipment 15% Software Development
15% Other Assets 15%Depreciation has been charged to factory
overhead and administrative overhead on usages basis
consistently.Inventories comprise Raw Material, Packing Material,
Work in Progress, Finished Goods, stationery and spare parts. All
these are stated at the lower of the cost and32net realizable value
in accordance with IAS-2 Inventories after due allowance for any
obsolete or slow moving items. The cost of inventories is assigned
by using weighted average cost formula. Net realizable value is
determined after deducting the estimated cost of completion and/or
cost to be incurred for affecting the sale from sale price.
Keya Cosmetics Limited is engaged in production of several kinds
and size of soap, saving cream, toothpaste, coconut oil and other
cosmetics items since its incorporation. During the year 2010-2011,
the Company took over, under a Scheme of Amalgamation, erstwhile
Keya Detergent Limited, another publicly listed Company(Producing
several kinds and size of detergent powder) and Keya Soap Chemicals
Limited, a private Company (producing soap noodles), the backward
linkage industry of Keya Cosmetics Limited of Keya Group.
Method
1. DepreciationDepreciation of all properties is computed using
the reducing balance method in amount sufficient to write off
depreciable assets over their estimated useful economic lives.
Depreciation has been charged to factory overhead and
administrative on usage basis consistently.
IAS used by Keya Cosmetics Ltd.:For Fixed AssetsIAS 16
For InventoriesIAS 02
For Cash Flow StatementIAS 07
For Foreign Currency TranslationIAS 21
For Revenue RecognitionIAS 18
For Earning Per ShareIAS 33
For Cash Flow StatementIAS 07
For Proposed DividendIAS 10
06. Corporate Social ResponsibilityCorporate
Governance:Effective working plans of Corporate Governance Collide
various unusual complexities. Granted line of strategys adhering to
success of any corporate house. Hardeles to satisfied all
stakeholders and continuing pressure to increase sales net revenue,
profitability. Above all payment of good dividend to the
shareholders. Keya Cosmetics limited is committed to good corporate
Governance practices. The Companys philosophy is to achieve
business excellence and optimize long term shareholders value on a
sustained basis by ethical business conduct. The company is
committed to transparency in all its dealings and places strong
emphasis on business ethics. Looking after the welfare of multiple
stakeholders is a fundamental shared value of the company Board of
Directors, management and employees. This value system translates
into institutionalizing structures and procedures that enhance the
efficacy of the Board and inculcates a culture of transparency,
accountability and integrity across the company. Company initiative
towards this eng include- driving professionalism of the board,
create fair and transparent process and reporting systems and go
beyond mandated corporate Governance Code requirements of
Securities and Exchange Commission.
Foundation of Integrity and Control:Keya Cosmetics Ltd. has a
strong history of operating with integrity throughout the Company
at all levels, both internally and externally. Keya Cosmetics Ltd.
actions and the actions of all Keya Cosmetics Ltd. employees are
governed by Keya Cosmetics Ltd. purpose, Values and Principles.
Keya Cosmetics Ltd. commitment to operate responsibly is reflected
in the steps we have in place to ensure rigorous financial
discipline and Corporate Governance. We have an active and highly
experienced Board of Directors, with members who understand their
role in providing strong corporate governance. Keya Cosmetics Ltd.
Audit Committee exclusively guided by Independent Directors, with
appropriate financial skills to provide good oversight. The Audit
Committee also meets regularly in private session with Companys
independent auditors, G Kibria & Co. We maintain strong
internal controls. Keya Cosmetics Ltd. rigorous business process
controls include an ongoing program of audit, self-assessment, and
internal and external audits to ensure compliance with all relevant
regulations and standards.
Size, Composition and Functioning of the Board:The Board of
Directors is the highest level of authority in the Organizational
structure in Keya Cosmetics Limited. The Board is responsible for
the overall direction and is ultimately accountable to the
shareholders for the activities, strategies and performance of the
Company. The membership of the board during year ended as on
30-06-2012 stood at 04 directors. All directors are equally
accountable as per law to the shareholders for the proper conduct
of the business. The quorum for the board is at least three
directors present in person.The prime concern of the Board is to
ensure that the overall activities of the business are conducted
responsibilities and with focus on long-term value creation. The
board meets as and when required to transact matters placed before
then that requires Boards approval and or direction. Board reviews
the overall activities of the business and where necessary
strategic guidelines are given for onward implementation.
Executive Committee:Next to the Board there is Keya Cosmetics
Ltd.s members Executive Committee for close monitoring of business
performance and to provide operational guidance. The scope of word
of the committee includes but not limited to review of business
performance, approval of budget, evaluation and recommendations of
the Executive Committee provide significant input to enable the
Board to take well-informed decisions.
Management Committee:The responsibility to implement Board and
Executive Committee meetings decisions and supervisions of
day-to-day business affairs of the company lies with the management
committee. They are also responsible for achieving the business
plan. The committee consists of functional heads of different
operation/business segments.
Audit Committee: An audit committee has been constituted with
Keya Cosmetics Ltd. members for ensuring good governance practices.
The audit committees of the Board help Keya Cosmetics Ltd. meetings
during the year and examined the coverage of internal and external
audit.
Internal Control:Keya Cosmetics Ltd. employs sound system of
internal control including internal financial control to ensure
compliance of its activities with the desired objectives. Over the
year we have successfully implemented a well-designed corporate
management structure with clearly defined responsibility,
delegation of authority and proper accountability. Keya Cosmetics
Ltd. has an appropriate organizational structure manned with
qualified professionals for properly carrying Keya Cosmetics Ltd.
planning, executing, controlling and monitoring functions of each
of the business subunits. The company has a specially assigned team
to carry out financial audits of different segments of the
business. The Chief Financial Officer who reports to the Chairman
heads the team. After corporate review of the report necessary
corrective actions are taken.
Shareholder Relations:The company has about 23,450 nos.
shareholder as on November 15,2012 (as per record date). The
directors place high importance on maintaining good relationships
with the shareholders and ensure to keep them informed of
significant company developments. The company formally reports
quarterly to the SEC, DSE & CSE summarized Financial Position,
Comprehensive Income, Changes in Equity and Cash Flows from which
shareholders are well in form about the financial health of the
company. Annual General Meeting is an important opportunity to meet
and communicate with shareholders. Every shareholder or his/her
duly authorized representative has the right to attend such
meeting. It provides the forum for discussion of the business its
future prospects and other matters of interest and concern to the
shareholders. In addition, the company has a full fledged corporate
affaires secretarial department who addresses different issues like
dividend payment enquiries, share transfer, loss of share
certificate/dividend warrants, maintain liaison with Central
Depository Bangladesh Limited etc.
Social commitment:Keya Cosmetics Ltd. gives top most priority
about bonding at various take of social working areas. It allows
fresh in experience manpower and opportune them to make themselves
experience as well as valuable manpower. As part of the social
commitment, the company provided monitory assistance to the
organizations to the social height and Keya Cosmetics Ltd.
sponsored popular magazine Eattadi which is being telecasted
through Bangladesh Television and through which financial help are
being rewarded to real poor and helpless people selected from all
over Bangladesh.
The amount of CSR activities can not be determined by the annual
report.07. The quality of disclosure disclosed in Annual ReportThe
quality of disclosure that the Keya Cosmetics Ltd. has disclosed in
their annual repot of 2011-2012 is satisfactory. They have fully
disclosed all the important cases in their annual report according
to schedule, company act. The important disclosure of the annual
report is given below.
Disclosure as per requirement of Schedule XI, Part II of the
Company Act. 1984:a. Disclosure as per requirement of Schedule XI,
Part II, Note 5 of Para 3: Employee Position for Keya Cosmetics
Limited (As at 30th June 2012).
Salary RangeHead OfficeFactoryWorkerTotal Employee
Below Tk.3000
Above Tk. 300054.0092.00463.00609
Total54.0092.00463.00609
b. Disclosure as per requirement of Schedule XI, Part II, Para
4:
DesignationRemunerationFestival BonusTotal Payment
Chairperson
Director1,074,559.3889,546.621,164,106.00
Managing Director2,761,798.15230,149.852,991,948.00
Director
Total3,836,357.54319,696.464,156,054.00
Period of payment to Directors is from 1 July 2011 to 30 June
2012. The above Directors of the company did not take any benefit
from the company other than the remuneration and festival bonus.
Expense reimbursed to the managing agent - Nil Commission or other
remuneration payable separately to a managing agent or his
associate - Nil Commission received or receivable by the managing
agent or his associate as selling or buying agent of other concerns
in respect of contracts entered into such concerns with the company
- Nil The money value of the contracts for the sale or purchase of
goods and materials or supply of services, entered into by the
company with the managing agent or his associate during - Nil Any
other perquisites or benefit in cash or in king stating Nil Other
allowances and commission including guarantee commission Nil
Pensions, etc. Pensions - Nil Gratuities - Nil Payment from
Provident Fund - Nil Compensation for loss of office - Nil
Consideration in connection with retirement commission - Nil
c. Disclosure as per requirement of Schedule XI, Part II, Para
7: Details of production capacity utilization.
Particulars
License Capacity
Installed Capacity in MTActual Production in MT from 1st July
2011 to 30th June 2012Capacity Utilization from 1st July 2011 to
30th June 2012Capacity Utilization from 1st July 2010 to 30th June
2011
Annual Production CapacityNot mentioned in the
License33,600.0027,183.3780.9081.06
d. Disclosure as per requirement of Schedule XI, Part II, Para
8: Raw Materials Spare Parts, Packing Materials and Capital (the
value of imported raw materials is calculated on CIF basis).
Items Raw Materials Spare PartsPacking MaterialsTotal
Import 630,386,440--630,386,440
Purchase in Tk.
Local1,087,564,46340,165,89323,546,5211,151,276,877
Total 1,717,950,93040,165,89323,546,5211,781,663,317
Consumption in
Tk.1,595,829,63235,684,56120,564,5121,652,078,705
% of Consumption of total purchase92.89%88.84%87.67%-
% of Consumption of total purchase115.81%74.44%82.67%-
The company has not incurred any expenditure in foreign currency
for the period from 1st July 2011 to 30th June 2012 on account of
royalty, know-how, professional fee, consultancy fees and interest.
Foreign exchange earning USD 21, 87,871.13 equivalents of BDT
181,451,928/- in respect of export has been calculated on FOB
basis. The company has not earned any foreign exchanges for
royalty, know-how, professional fees and consultancy fees. The
value of export from the period from 1st July 2011 to 30th June
2012.
e. Disclosure as per requirement of Schedule XI, Part II, Para
3:Requirements are the turnover, commission paid to selling agents,
brokerage and discount of sales, other than the usual trade
discount, the value of the raw materials consumed, giving item-wise
as possible, the operating and closing stocks of goods produced. In
the case of trading companies, the purchase made and the opening
and closing stocks, opening and closing, in the case of other ,
work-in-process, provision for depreciation, interest on
debentures, etc. These requirements stats from Para 3(i)(a) to
3(vi). Compliance status of disclosure of Schedule XI, Part II,
Para 3 is given on these requirements.
Requirements underCompliance status of Disclosure of Schedule
XI, Part II, Para 3
3(i)(a) The turnover Complied
3(i)(b) Commission paid to selling agentsNot Applicable
3(i)(c) Brokerage and discount of sales, other than the usual
trade discout.Not Applicable
3(i)(d)(i) The value of the raw materials consumed, giving
item-wise as possibleComplied
3(i)(d)(ii) The opening and closing stocks of goods
producedComplied
3(i)(e) In the case of trading companies. The purchase made and
the opening and closing stocks.Not Applicable
3(i)(f) In the case of companies rendering or supplying
services, the gross income derived from services rendered or
suppliedNot Applicable
3(i)(g) Opening and closingNot Applicable
3(i)(h) In the case of otherNot Applicable
3(i)(i) Work-in-progress, whichComplied
3(i)(j) Provision for depreciation,Complied
3(i)(k) Interest on the debentureNot Applicable
3(i)(l) Charge for income taxComplied
3(i)(m) Reserved for repayment of share capital and repayment of
loansNot Applicable
3(i)(n)(i) Amount set aside or proposed to be set aside or
proposed to be set aside, to reserves, but not including provisions
made to meet any specific liability, contingency or commitment,
know to exist at the date as at which the balance sheet is made
up.Not Applicable
3(i)(n)(ii) Amount withdrawn from above mentioned reserveNot
Applicable
3(i)(o)(i) Amount set aside to provisions made for meeting
specific liabilities, contingencies of commitmentNot Applicable
3(i)(o)(ii) Amount withdrawn from above mentioned provisions, as
no longer requiredNot Applicable
3(i)(p) Expenditures incurred on each of the following items,
separately for each item: (i) consumption of stores and spare
partsNot Applicable
(ii) Power and Fuel (iii) Rent (iv) Repairs of Buildings (v)
Repairs of Complied
Machinery (vi) (1) Salaries, wages and bonus (2) Contribution to
provident and other funds (3) Workmen and staff welfare expenses to
the extent not adjusted from any previous provision or reserve.Not
Applicable
f. Subsequent Disclosure of events after the Balance Sheet Date
Under IAS 10:There is no non-adjusting post balance sheet event of
such importance, non disclosure of which would affect the ability
to the users of the financial statements to proper evaluation and
decision.
g. Disclosure as per requirement of Schedule XI, Part 1 (A.
Horizontal Form) of Companies Act. 1994 Accounts Receivables:In
regard to sundry debtors the following particulars shall be given
separately:- Debt considered good in respect of which the company
is fully secured. The debtors occurred in the ordinary course of
business are considered good and secured. Debt considered good for
which the company hold on security other than the debtors personal
security. There is no such debt in this respect as on 30 June 2012
Debt considered doubtful or bad. The company does not make any
provision for doubtful debts as 30 June 2012, because of the fact
that sales/export are being made on regular basis with fixed
maturity dates. Debt due by directors or other officers of the
company. There is no such debt in this respect as on 30 June 2012.
Debt due by Common Management. There are no amount due form sister
company under common management as on 30 June 2012. The maximum
amount due by directors or other officers of the company. There is
no such debt in this respect as on 30 June 2012.
08. Recommendation After analyzing the Annual Report 2011 - 2012
of Keya Cosmetics Ltd. we will give our recommendation in 3
categories. At the very first part we will show the positive
attitude of this Annual Report which is very important for the
shareholders and the prospective investors. After that the probable
limitations will be discussed which much affect the investors
decisions. And at the last part of the recommendation the present
condition and the future prospect of Keya Cosmetics Ltd. will be
shown.
Positive Attitude:This Annual Report states the Corporate
Milestones, Corporate Directory, Information of Share, Financial
Presentation of the Financial Highlights, Corporate Social
Responsibility, Directors Report to the Shareholders, Procurement
and Distribution, Compliance Report, Audit Committee Report,
Auditors Report and the Financial Statements and Notes to the
financial statement. According to Auditors report, the financial
statements of Keya Cosmetic Ltd are prepared in accordance with BAS
and give a true and fair view of companys affairs.
The results of operations are complying with the Company Act
1994 and other applicable laws and regulations. All the statements
are free from material misstatement. Auditing work is also done
according to BSA. Thats why the auditor gives and unqualified audit
opinion. In the notes of the report some important events are shown
such as bad debt, provision for bad debt, purchase of fixed assets
and the contingent liability. This report clearly narrates those
events in the notes of the financial statements. It says that all
debtors are secure thats why there is no bad debt and no provision
is made. So, the disclosure quality of this annual report is
satisfactory.
Probable Limitations:We find that the company does not clearly
state about their contingent liability. At note- 48: it narrates
that there was no contingent liability. But in note 32: it stats
that there was no contingent liability as on 30.06.2012 except L/C
liabilities. Thats why these two notes make conflict with each
other. This type of information creates critical problem among the
shareholders and the prospective investors. The decisions of
prospective investors will be greatly affected by it.
Another limitation is, there are some probable limitations of
this annual report. First one is the addition of land and land
development is shown in the financial statement but the fact is the
registration of this land is under process. However it is true that
the company do not get the real ownership of this fixed asset. So,
this type of asset should not be regarded as the fixed asset in the
financial statement.
The Future Prospect of this Company:The legacy of Global
Financial crisis consequence by deep economic recession has created
a down trend on growth rate for the emerging as well as developed
countries of the world and this has brought up humiliating effect
on financial market and capital market both home and abroad. To
cope with the above scenario, the management of the company
materialized amalgamation of Keya Cosmetics Ltd, the long cherished
desired or shareholders and successfully completed rights shares
offer settled to inflowing Tk. 1,479,889,880.00 by 30th June, 2012
the last day of financial year for payment of bank loans and
working capital.
In consideration of quantity of shares i.e. total shares in the
year 2010-2011 was 61,152,474 on the contrary total shares in the
year 2011-2012 is 147,988,988 which is 142% more than previous
year. With prudent management decisions, all indicators and
financial health of the company are in the right track. Net
Turnover, Net Profit before tax, Payment to the national exchequer
as income tax and shareholders equity were Tk. 1,784.04 million,
Tk. 354.91 million, Tk. 86.53 million and Tk. 1,531.30 million
respectively. On the other hand in the year 2011-2012 indicators
are Tk. 2405.18 million (net turnover), Tk. 362.76 million (net
profit before tax), Tk. 97.93 million (provision for payment to the
national exchequer as income tax) and Tk. 3253.83 million
(shareholders equity) respectively.
In socio-economic development and welfare of the consumer the
company pays the govt. Exchequer income tax, vat, import duty and
supplementary and maintain ethical standards of products quality by
continuously improving the products. Save the environment
motivating by this motto the company support activities for the
protection support activities for the protection of environment.
For the equal benefit of the society the company provides CSR
activities. As part of the social commitment, the company provided
monitory assistance to the organizations to the social height and
sponsored popular magazine. Through it financial help are being
rewarded to real poor and helpless people selected from all over
Bangladesh.
As shareholders are the key of the company, Keya Cosmetics Ltd
declare 10% stock dividend to develop a positive relationship with
the shareholders and by rewarding employees the company maintain a
good management team and employer-employee relationship.
References Annual Report 2011 2012 of Keya Cosmetics Ltd. Web:
keyagroupbd.com Office of The Keya Cosmetics Ltd. Navana Tower
(14th Floor)Suit-A, Plot # 45Gulshan-1, Dhaka-1212 Phone: 9896973,
9899537 Md. Saheenur Rahman,Asst. General Manager, Dhaka Office.
Email- [email protected] Accounting Principles Weygandt. Kieso.
Kimmel Intermediate Accounting Kiso. Weygandt. Warfield Audit
Mannual ICAB.
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