Notes JUNE'11 JUNE'10 - New Asia Group · · 2012-05-23Notes JUNE'11 JUNE'10 Taka Taka ... Titas Spinning & Denim Company Ltd. ... open - end yarn per annum. As per decision of

Malek Siddiqui Wali

Chartered Accountants

Notes JUNE'11 JUNE'10

ASSETS : Taka Taka

Non-Current Assets: 2,532,496,868 2,143,474,910

Property, Plant and Equipment 4 1,686,139,968 1,763,458,010

Investment in Subsidiary Company 5 243,480,000 180,090,000

Share Money Deposit to Subsidiary Company 6 602,876,900 199,926,900

Current Assets : 4,722,005,044 18,782,534,144

Inventories 7 1,932,774,214 844,148,180

Accounts Receivable 8 777,543,982 629,187,317

Interest receivable 9 - 10,315,871

Advances,Deposits and Pre-payments 10 1,436,202,154 677,831,055

Cash and Cash Equivalents 11 575,484,695 16,621,051,720

TOTAL ASSETS : 7,254,501,912 20,926,009,054

SHAREHOLDER'S EQUITY AND LIABILITIES :

Shareholder's Equity : 4,806,251,122 20,169,468,389

Share Capital 12 1,600,000,000 1,200,000,000

Share Premium 13 1,500,000,000 900,000,000

General Reserve and Surplus 14 705,897,385 643,815,792

Reserve for Re-valuation of Fixed Assets 15 1,000,353,737 1,050,477,013

Share Money Deposit (IPO) 16 - 16,375,175,584

Non-Current Liabilities: 115,714,958 -

Long Term Loan 17 115,714,958 -

Current Liabilities : 2,332,535,831 756,540,664

Short Term Loan 18 136,047,801 212,805,180

Liabilities for refundable IPO Share money 19 14,971,455 -

Security Deposit Against Sales 20 - 6,000,000

Acceptance Liabilities 21 2,045,647,341 432,575,037

Creditors and Accruals 22 124,900,493 105,160,447

Unclaimed Dividend 23 10,968,740 -

TOTAL SHAREHOLDER'S EQUITY AND LIABILITIES : 7,254,501,912 20,926,009,054

Net Assets Value Per Share (NAV) 30.16 36.64

Par Value Tk.10

The annexed notes 1 to 33 form an integral part of these financial statement

sd/- sd/- sd/- sd/- A.Matin Chowdhury A.F.M. Zubair B.K. Chaki Syed Saiful Haque

Managing Director Director Chief Financial Officer Company Secretary

As per our report of same date

sd/-Dhaka (Malek Siddiqui Wali)

October 27,2011 Chartered Accountants

AS AT 30th

JUNE 2011

MALEK SPINNING MILLS LIMITEDBALANCE SHEET

Malek Siddiqui Wali



Taka Taka

Sales 24 3,509,105,802 1,978,824,374

Cost of Goods Sold 25 3,309,616,599 1,692,886,994

Gross Profit : 199,489,203 285,937,380

Operating Expenses 26 61,628,145 34,720,085

Financial Expenses 27 79,041,915 68,991,737

Loss on Sale of Assets 28 - 497,835

Operating Profit : 58,819,143 181,727,723

Add: Other Income 29 83,364,891 83,278,349

Less: Other Expenses 30 3,977,119 67,064,623

Net Operating Profit : 138,206,915 197,941,449

Provision for Contribution to WPPF 31 6,581,282 9,897,072

Profit before Tax : 131,625,634 188,044,377

Provision for Income Tax : 32 29,667,317 31,854,745

Net Profit for this period 101,958,317 156,189,632

(Transferred to the Statement of Changes in Equity)

Earnings Per Share (EPS) 33 0.64 1.51

Par Value Tk.10

Weighted Average No. of Shares Outstanding.

The annexed notes 1 to 33 form an integral part of these financial statement.

sd/- sd/- sd/- sd/- A.Matin Chowdhury A.F.M. Zubair B.K.Chaki Syed Saiful Haque



sd/-Dhaka ( Malek Siddiqui Wali )


MALEK SPINNING MILLS LIMITEDINCOME STATEMENT

FOR THE YEAR ENDED 30TH

JUNE 2011

Malek Siddiqui Wali


JUNE'11 JUNE'10

Taka Taka

CASH FLOW FROM OPERATING ACTIVITIES :

Collection from Turnover & Accounts Receivable 3,360,749,137 1,906,529,719

Payment for Raw Materials, Indirect Materials and other expenses (2,668,364,316) (1,744,207,735)

Collection from Other Income 83,364,891 72,962,478

Payment for Operating Expenses (58,021,100) (33,110,086)

Payment for Other Expenses (3,977,119) (67,064,623)

Payment for Income Tax (30,239,638) (38,160,047)

Payment of Financial Expenses (79,041,915) (68,119,355)

Net Cash Provided by Operating Activities 604,469,940 28,830,351

CASH FLOW FROM INVESTING ACTIVITIES :

Acquisition of Fixed Assets (25,048,057) (156,502,379)

Sale of Fixed Assets - 1,112,300

Investment to Subsidiary Company (466,340,000) -

Net cash used in Investing Activities (491,388,057) (155,390,079)

CASH FLOW FROM FINANCING ACTIVITIES :

Bank Loan Receipt/(Repayment) 38,957,579 (524,370,236)

Liability for Refundable IPO Share Money 14,971,455 -

Redemption of Share Money Deposit (16,375,175,584) 16,375,175,584

Dividend Payment (79,031,260) -

Advance, Deposit and Prepayments. (758,371,099) (477,755,515)

Issuance of Share Capital 400,000,000 500,000,000

Share Premium received 600,000,000 750,000,000

Net Cash provided by Financing Activities (16,158,648,908) 16,623,049,833

Increase/(Decrease) in Cash and Cash Equivalents (16,045,567,025) 16,496,490,104

Cash & Cash Equivalents at 1st July 2010 16,621,051,720 124,561,616

Cash and Cash Equivalents at 30th

June 2011 575,484,695 16,621,051,720

Net Operating Cash Flow Per Share (NOCFPS) 3.79 0.28

Par Value Tk.10






MALEK SPINNING MILLS LIMITEDCASH FLOW STATEMENT


JUNE 2011

Malek Siddiqui Wali


Balance as on 1st July 2010 1,200,000,000 1,050,477,013 643,815,792 900,000,000 16,375,175,584 20,169,468,389

Net Profit during the Period - - 101,958,317 - 101,958,317

Issuance of Share Capital 400,000,000 600,000,000 1,000,000,000

Share Money Deposit (16,375,175,584) (16,375,175,584)

Reserve for Revaluation of

Fixed Assets- (50,123,276) 50,123,276 - -

Dividend for 2009-2010 (90,000,000) (90,000,000)

As on 30th

June 2011 1,600,000,000 1,000,353,737 705,897,385 1,500,000,000 - 4,806,251,122

Balance as on 1st July 2009 700,000,000 1,121,891,469 416,211,705 150,000,000 2,388,103,174

Net Profit during the Period - - 156,189,632 - - 156,189,632

Issuance of Share Capital 500,000,000 750,000,000 1,250,000,000

Share Money Deposit - - 16,375,175,584 16,375,175,584

Reserve for Revaluation of

Fixed Assets (71,414,455) 71,414,455 - -

As on 30th

June 2010 1,200,000,000 1,050,477,013 643,815,792 900,000,000 16,375,175,584 20,169,468,389







JUNE 2010

Total

Reserve for

Revaluation of

Fixed Assets

Total Particulars Share Premium Share Money

Deposit Share Capital

Reserve for

Revaluation of

Fixed Assets

General

Reserve and

Surplus

MALEK SPINNING MILLS LIMITED

Share Capital Particulars

General

Reserve and

Surplus

STATEMENT OF CHANGES IN EQUITY


JUNE 2011

Share Premium Share Money

Deposit

MALEK SPINNING MILLS LIMITED NOTES TO THE FINANCIAL STATEMENTS

AS ON 30TH

JUNE 2011

1. COMPANY AND ITS ACTIVITIES:

Malek Spinning Mills Limited was incorporated as a Private Limited Company on 2nd November, 1989

under Companies Act 1913. It was converted into Public Ltd. Company in the year 2008. The share of

the company is denominated from Tk.100/- to Tk.10/- per share as on 14th September, 2008. Its

subsidiary companies are Salek Textile Limited, Newasia Synthetics Limited, J.M. Fabrics Limited and

Titas Spinning & Denim Company Ltd. All of the companies are incorporated with registrar of joint

stock companies and firms, Dhaka, except J.M. Fabrics Limited which is registered with RJSC

Chittagong, Bangladesh under Companies Act 1994. Registered office of the Company is at 117/A,

Tejgaon I/A, Dhaka-1208 while Factories are situated at Shafipur, Kaliakoir, Bhawal Mirzapur, Gazipur

& Mahna Bhabanipur, Gazipur respectively.

Malek Spinning Mills Limited had floated its 4,00,00,000 shares of Tk. 10/- each at Tk. 25/- each

including premium of Tk. 15/- per share to General Public through Initial Public Offering (IPO) after

obtaining concent from Securities and Exchange Commission (SEC) vide their letter no. SEC/CI/IPO-

118/2010/462 dated April 15th 2010.

The Company had changed its utilization of IPO proceed after approval from the share holders in the

Annual General Meeting (AGM) held on 27th December 2010 in compliance of the condition No-7 of

part –B of the IPO consent order for SEC. After changing the utilization of IPO proceeds the Company

acquired 99.98% share of JM Fabrics Limited and 90% share of Titas Spinning & Denim Company Ltd.

2. NATURE OF BUSINESS:

The Company has got the capacity of 63,624 spindles to spin high quality Cotton hosiery yarns by using

modern machinery including state-of-the-art yarn testing laboratory. Annual production capacity of the

company is 12,600,000 Kgs and Salek Textile Limited is well equipped with 10 (ten) Schlafhorst Auto

Coro Machines with 360 rotors each, having a total rated production capacity of 14,621,000 Kgs. of

open-end yarn per annum. As per decision of the Board of Directors meeting held on 3rd April 2011 the

implementation of the project Newasia Synthetics Limited (NSL) have been shelved and necessary

price sensitive information have been published.

JM Fabrics Limited is engaged in the production of 100% export oriented Garments and Knit Fabrics

having a production capacity of 8 (Eight) M.Tons of Knitted Fabrics and 18(Eighteen) Lines of Cutting

and Sewing operation with all facilities, storage etc.

Titas Spinning & Denim Company Ltd. is engaged in the production of 100% export oriented

Denim/Fabrics/Garments with capacity of 15,000 yards per day.

3. SIGNIFICANT ACCOUNTING POLICIES:

3.1 Basis of Accounting:

The financial statements of the company under reporting have been prepared under historical cost

convention in a going concern concept and on accrual basis in accordance

with generally accepted accounting principles and practice in Bangladesh in compliance with the

Companies Act 1994, The Securities and Exchange Rules 1987, Listing Regulations of Dhaka

Stock Exchange Ltd (DSE) & Chittagong Stock Exchange Ltd. (CSE) and International

Accounting Standards (IAS) as adopted by the Institute of Chartered Accountants of Bangladesh

(ICAB), as Bangladesh Accounting Standard (BAS).

3.2 Principal Accounting Policies:

Specific accounting policies were selected and applied by the company‟s management for

significant transactions and events that have a material effect within the framework of BAS-1

“Preparation of Financial Statement” in preparation and presentation financial statements. The

previous year‟s figures were presented according to the same accounting principles.

3.3 Basis of Consolidation:

The consolidated financial statements incorporate the financial statements of the company and

entity controlled by the company. Control is achieved where the company has the power to govern

the financial and operating policies of an entity so as to obtain benefits from its activities.

Where necessary, adjustments are made to the financial statements of subsidiaries to bring their

accounting policies into line with those used by other member of the group.

All intra group transaction, balances, income and expenses are eliminated in full on consolidation.

Minority interests in the net assets of consolidated subsidiaries are identified separately from the

group equity therein.

These consolidate financial statements have been prepared in consolidation with the audited

accounts of the company and the audited accounts of Salek Textile Limited, Newasia Synthetics

Limited, J.M. Fabrics Limited and Titas Spinning Denim Company Ltd. for the Year ended

June 30, 2011

3.4 Percentage of Holding on Subsidiary Company:

Name of Company Total No. Shares Total Holding Percentage of Holding

Salek Textile Ltd. 999,000 899,100 90%

Newasia Synthetics

Ltd.

937,150 901,800 96.23%

JM Fabrics Ltd. 6,25,000 6,24,900 99.98%

Titas Spinning &

Denim Co. Ltd.

10,000 9,000 90%

3.5 Application of Bangladesh Accounting Standards (BAS):

The following BASs are applicable for the financial statements for the year under review

BAS – 1 Presentation of Financial Statement

BAS – 2 Inventories

BAS – 7 Cash flow Statement

BAS – 8 Accounting Policies, Changes in Accounting Estimates and Errors

BAS – 10 Event after the Balance Sheet Date

BAS – 12 Income Tax

BAS – 14 Segment Reporting

BAS – 16 Property, Plant & Equipment

BAS – 17 Leases

BAS – 18 Revenue























June 30, 2011




Newasia Synthetics

Ltd.

937,150 901,800 96.23%

JM Fabrics Ltd. 6,25,000 6,24,900 99.98%

Titas Spinning &

Denim Co. Ltd.

10,000 9,000 90%











BAS – 17 Leases

BAS – 18 Revenue

BAS – 19 Employee Benefits

BAS – 21 The effect of Changes in Exchange Rate

BAS – 23 Borrowing Cost

BAS – 24 Related Party Discloser

BAS – 27 Consolidated Financial Statements and Accounting for Investment in Subsidiary

BAS – 33 Earnings per share

BAS – 36 Impairment of assets

BAS – 37 Provisions, Contingent Liabilities and Contingent Assets

BAS – 38 Intangible Assets

3.6 Recognition of Property, Plant & Equipment and Depreciation:

Property, Plant & Equipment are stated at cost less accumulated depreciation in accordance with

BAS - 16 “Property, Plant & Equipment “. Cost represents cost of acquisition or construction and

include purchase price and other directly attributable cost of bringing the assets to working

conditions for its intended use, but do not include any capitalized borrowing cost. During Financial

year 2007-2008 the Company Revalued the Assets as per Board Resolution dated on 05.12.2007. No

depreciation is charged on land and land development. Depreciation on all other fixed assets is

computed using the reducing balance method in amount sufficient to write-off depreciable assets

over their estimated useful life. Expenditure for maintenance and repairs are expenses; major

replacements, renewals and betterment are capitalized. The cost and accumulated depreciation of

depreciable assets retired or otherwise disposed off are eliminated from the assets and accumulated

depreciation and any gain or loss on such disposal is reflected in operations for the year.

The annual depreciation rates applicable to the principal categories are:

Building 5%

Plant & Machinery 7.5%

Generator 10%

Furniture & Fixture 10%

Motor Vehicles 15%

Office Equipments 15%

Electrical Installation 15%

Gas Line Installation 15%

Fire Installation 15%

Loose Tools 15%

Depreciation has been charged to cost of goods sold & administrative expenses consistently.

The board of directors has approved the change in depreciation policy considering the notional life

of Assets, the depreciation rate of Plant & Machinery and Generator have been changed from 10% to

7.5% and 15% to 10% respectively as approved by the board of directors meeting held on

02.10.2011.

3.7 Inventories:

Inventories comprise of Raw Materials, Raw Materials in Transit, Work-In-Process, Finished Goods and

Stores and Spare Parts. They are stated at the lower of cost or market or net realizable value in accordance

with the Para of 21 & 25 of BAS-2 “Inventories” after making due allowance for any obsolete or slow

moving item. The cost of inventories is assigned by























June 30, 2011




Newasia Synthetics

Ltd.

937,150 901,800 96.23%

JM Fabrics Ltd. 6,25,000 6,24,900 99.98%

Titas Spinning &

Denim Co. Ltd.

10,000 9,000 90%











BAS – 17 Leases

BAS – 18 Revenue

BAS – 19 Employee Benefits

BAS – 21 The effect of Changes in Exchange Rate

BAS – 23 Borrowing Cost

BAS – 24 Related Party Discloser

BAS – 27 Consolidated Financial Statements and Accounting for Investment in Subsidiary

BAS – 33 Earnings per share

BAS – 36 Impairment of assets

BAS – 37 Provisions, Contingent Liabilities and Contingent Assets

BAS – 38 Intangible Assets

3.6 Recognition of Property, Plant & Equipment and Depreciation:

Property, Plant & Equipment are stated at cost less accumulated depreciation in accordance with

BAS - 16 “Property, Plant & Equipment “. Cost represents cost of acquisition or construction and

include purchase price and other directly attributable cost of bringing the assets to working

conditions for its intended use, but do not include any capitalized borrowing cost. During Financial

year 2007-2008 the Company Revalued the Assets as per Board Resolution dated on 05.12.2007. No

depreciation is charged on land and land development. Depreciation on all other fixed assets is

computed using the reducing balance method in amount sufficient to write-off depreciable assets

over their estimated useful life. Expenditure for maintenance and repairs are expenses; major

replacements, renewals and betterment are capitalized. The cost and accumulated depreciation of

depreciable assets retired or otherwise disposed off are eliminated from the assets and accumulated

depreciation and any gain or loss on such disposal is reflected in operations for the year.

The annual depreciation rates applicable to the principal categories are:

Building 5%

Plant & Machinery 7.5%

Generator 10%

Furniture & Fixture 10%

Motor Vehicles 15%

Office Equipments 15%

Electrical Installation 15%

Gas Line Installation 15%

Fire Installation 15%

Loose Tools 15%

Depreciation has been charged to cost of goods sold & administrative expenses consistently.

The board of directors has approved the change in depreciation policy considering the notional life

of Assets, the depreciation rate of Plant & Machinery and Generator have been changed from 10% to

7.5% and 15% to 10% respectively as approved by the board of directors meeting held on

02.10.2011.

3.7 Inventories:

Inventories comprise of Raw Materials, Raw Materials in Transit, Work-In-Process, Finished Goods and

Stores and Spare Parts. They are stated at the lower of cost or market or net realizable value in accordance

with the Para of 21 & 25 of BAS-2 “Inventories” after making due allowance for any obsolete or slow

moving item. The cost of inventories is assigned by

using weighted average cost. Net realizable value is determined after deducting the estimated cost of

completion and/or cost to be incurred for affecting the sale from sales price.

3.8 Trade Debtors:

These are carried at original invoice amount, they are unsecured and considered good and

collectible.

3.9 Cash and Cash Equivalents:

According to BAS-7 „Cash flow Statements‟ cash comprises of cash-in-hand and demand deposits.

BAS-1 „Presentation of Financial Statements‟ provides that cash and cash equivalents are not

restricted in use. Considering the provisions of BAS-7 and BAS-1, Cash in hand and Bank balances

have been considered as cash and cash equivalents

3.10 Creditors and Accruals :

Liabilities are recognized for amounts to be paid in the future for goods and services received,

whether or not billed by the supplier.

3.11 Income Tax :

The corporate tax rate for Textile Sector is 15%. Provision has been made and calculated on the above

basis, which is adequate under Income Tax Ordinance 1984. There is no deferred tax liabilities due to

not having any difference between tax based asset and accounting base asset.

3.12 Cash Flow Statement :

Cash Flow Statement is prepared in accordance with BAS-7 under direct method as outlined in the

“Securities and Exchange Rules 1987”.

3.13 Risk and Uncertainties for use of Estimates in Preparation of Financial Statements :

The preparation of financial statements in conformity with the international accounting standards

requires management to make estimates and assumption that affect the reported amounts of assets and

liabilities and disclosure of contingent assets and liabilities at the date of affecting financial

statements and revenues and expenses during the reported year. Actual results could differ from those

estimates. Estimates are used for accounting of certain items such as long-term contracts; depreciation

and employees benefit plans, taxes, reserves and contingencies.

3.14 Compliance with Local Laws :

The financial statements have been prepared in compliance with requirements of the Companies Act

1994, Securities and Exchange Rules 1987 and other relevant local laws and rules.

3.15 Compliance with Bangladesh Accounting Standards:

The financial statements have been prepared in compliance with requirement of BAS as adopted by

The Institute of Chartered Accountants of Bangladesh (ICAB) and applicable in Bangladesh.

3.16 Contingent Liabilities and Assets:

Current or possible obligations or assets arising from past events and whose existence is due to the

occurrence or non-occurrence of one or more uncertain events which are not within the control of

the group.

3.17 Transaction with Related Parties:

In the period under review the company has transactions with related party in the normal course of

business. They are as follows:

Business Transactions:

S.L Related Parties Nature of

relationship

Nature of Transaction Balance as at

30.06.2011

1 Knit Asia Limited Common Director Yarn Sales 1,093,887,440

2. Salek Textile Limited Subsidiary Share Money Deposit 189,926,900

Investment in equity 89,910,000

Advance 654,564,475

3. Newasia Synthetics

Limited

Subsidiary Share Money Deposit 10,000,000


Advance 303,790,823

4. J.M. Fabrics Limited Subsidiary Share Money Deposit 308,750,000


Advance 159,941,729

5. Titas Spinning &

Denim Company Ltd.


Investment in equity 900,000

Advance 246,500,000

3.18 Reporting Year:

Financial statements of the company cover from 1st July 2010 to 30th June 2011.

3.19 Reporting Currency and Level of Precision:

The figures in the financial statements represent Bangladesh Currency (Taka), which have been

rounded off to the nearest Taka except where indicates otherwise.

3.20 Comparative Information:

Comparative information have been disclosed in respect of year June 2010 for all numerical

information in the financial statements and also the narrative and descriptive information when it is

relevant for understanding of the current years financial statements. Figures of the year 2010 have

been rearranged whenever considered necessary to ensure comparability with the current year.

3.21 Foreign Currency Translation :

Transactions in foreign currencies are translated into Bangladeshi Taka at the Exchange rate

prevailing on the date of transactions in accordance with BAS- 21 “The Effects of Changes in

Foreign Exchange Rate.” Bank deposit in foreign currency has been translated into taka at the year

end at the rate of exchange ruling on that date

3.16 Contingent Liabilities and Assets:

Current or possible obligations or assets arising from past events and whose existence is due to the

occurrence or non-occurrence of one or more uncertain events which are not within the control of

the group.

3.17 Transaction with Related Parties:

In the period under review the company has transactions with related party in the normal course of

business. They are as follows:

Business Transactions:

S.L Related Parties Nature of

relationship

Nature of Transaction Balance as at

30.06.2011

1 Knit Asia Limited Common Director Yarn Sales 1,093,887,440

2. Salek Textile Limited Subsidiary Share Money Deposit 189,926,900


Advance 654,564,475

3. Newasia Synthetics

Limited



Advance 303,790,823

4. J.M. Fabrics Limited Subsidiary Share Money Deposit 308,750,000


Advance 159,941,729

5. Titas Spinning &

Denim Company Ltd.


Investment in equity 900,000

Advance 246,500,000

3.18 Reporting Year:

Financial statements of the company cover from 1st July 2010 to 30th June 2011.

3.19 Reporting Currency and Level of Precision:

The figures in the financial statements represent Bangladesh Currency (Taka), which have been

rounded off to the nearest Taka except where indicates otherwise.

3.20 Comparative Information:

Comparative information have been disclosed in respect of year June 2010 for all numerical

information in the financial statements and also the narrative and descriptive information when it is

relevant for understanding of the current years financial statements. Figures of the year 2010 have

been rearranged whenever considered necessary to ensure comparability with the current year.

3.21 Foreign Currency Translation :

Transactions in foreign currencies are translated into Bangladeshi Taka at the Exchange rate

prevailing on the date of transactions in accordance with BAS- 21 “The Effects of Changes in

Foreign Exchange Rate.” Bank deposit in foreign currency has been translated into taka at the year

end at the rate of exchange ruling on that date

3.22 Revenue Recognition:

The Company recognizes revenue when risk and rewards associated with ownership has been

transferred to buyer, which satisfied all the condition for the revenue recognition as provided in

BAS-18 „Revenue Recognition.‟

3.23 Responsibility for Preparation and Presentation of Financial Statements:

The Board of Directors is responsible for the preparation and presentation of Financial Statements

under Section 183 of the Companies Act 1994 and as per the provision of „The Framework for the

Preparation and Presentation of Financial Statements‟ issued by the International Accounting

Standards Board (IASB).

3.24 Components of the Financial Statements:

According to the Bangladesh Accounting Standard BAS-1 „Presentation of Financial Statements‟

the complete set of Financial Statements includes the following components:

i. Balance Sheet as on 30th June 2011.

ii. Income Statement (Profit & Loss Account) for the year of 1st July 2010 to 30th June 2011.

iii. Cash flow Statement for the year of 1st July 2010 to 30th June 2011.

iv. Accounting Policies and Explanatory Notes.

3.25 Earnings Per Share:

Earnings per share (EPS) is calculated in accordance with the Bangladesh Accounting Standard

BAS-33 “Earnings per share”.

i) Basic Earnings per Share:

Basic earnings per share is calculated by dividing the net profit or loss for the year

attributable to ordinary shareholders by the weighted average number of ordinary shares

outstanding during the year.

ii) Diluted Earnings per Share:

No diluted Earnings per share was required to be calculated for the year under review as

there was no scope for dilution of Earnings per Share for the year.

3.26 Share Premium:

The balance in share premium account shall be utilized in accordance with provisions of the

Companies Act 1994 and as directed by the Securities and Exchange Commission in this respect.

3.27 Lease Assets:

In Compliance with the BAS-17, Leases, cost of assets acquired under finance lease along with

related obligation has been accounted for as assets and liabilities respectively of the company.

3.22 Revenue Recognition:

The Company recognizes revenue when risk and rewards associated with ownership has been

transferred to buyer, which satisfied all the condition for the revenue recognition as provided in

BAS-18 „Revenue Recognition.‟

3.23 Responsibility for Preparation and Presentation of Financial Statements:

The Board of Directors is responsible for the preparation and presentation of Financial Statements

under Section 183 of the Companies Act 1994 and as per the provision of „The Framework for the

Preparation and Presentation of Financial Statements‟ issued by the International Accounting

Standards Board (IASB).

3.24 Components of the Financial Statements:

According to the Bangladesh Accounting Standard BAS-1 „Presentation of Financial Statements‟

the complete set of Financial Statements includes the following components:

i. Balance Sheet as on 30th June 2011.

ii. Income Statement (Profit & Loss Account) for the year of 1st July 2010 to 30th June 2011.

iii. Cash flow Statement for the year of 1st July 2010 to 30th June 2011.

iv. Accounting Policies and Explanatory Notes.

3.25 Earnings Per Share:

Earnings per share (EPS) is calculated in accordance with the Bangladesh Accounting Standard

BAS-33 “Earnings per share”.

i) Basic Earnings per Share:

Basic earnings per share is calculated by dividing the net profit or loss for the year

attributable to ordinary shareholders by the weighted average number of ordinary shares

outstanding during the year.

ii) Diluted Earnings per Share:

No diluted Earnings per share was required to be calculated for the year under review as

there was no scope for dilution of Earnings per Share for the year.

3.26 Share Premium:

The balance in share premium account shall be utilized in accordance with provisions of the

Companies Act 1994 and as directed by the Securities and Exchange Commission in this respect.

3.27 Lease Assets:

In Compliance with the BAS-17, Leases, cost of assets acquired under finance lease along with

related obligation has been accounted for as assets and liabilities respectively of the company.

3.28 Subsequent Disclosure of Events occurring after the Balance Sheet date:

Share Money Deposit of Tk. 18,99,26,900 have been converted into Share Capital by allotment of

18,99,269 ordinary shares of Tk. 100/- each of Salek Textile Limited on 19th July 2011 in favour of

Malek Spinning Mills Limited

3.29 Impairment of Assets:

The company reviews the recoverable amount of its assets at each reporting date. If there exist any

indication that the carrying amount of assets exceeds the recoverable amount, the company

recognizes such impairment loss in accordance with BAS-36 “Impairment of Assets”.

3.30 Borrowing Cost:

The company Capitalizes borrowing cost for new project such as interest on term loan and other

related fees/Charges for the period till to commencement of commercial operation and charges the

cost to revenue account as financial expenses after commencement of commercial operation.

3.31 Research, Development and Experimental Costs:

In compliance with requirements of BAS-38 “Intangible Assets” research, development and

experimental cost usually absorbed as revenue charges and when incurred, as being not that much

material in the company‟s and /local Context .

3.32 Credit Facility Not Availed:

There was no credit facility available to the company under any contract, other than trade credit

available in the ordinary course of business.

3.33 Segment Reporting:

As there is a single business and geographic segment within the company operates as such no

segment reporting is felt necessary.

3.34 General Comments & Observations:

a. Previous year‟s figures have been regrouped / reclassified wherever considered necessary to

confirm to current year‟s presentation. Figures have been rounded off to the nearest taka, as the

currency represented in this financial statement.

b. All shares have been fully called and paid up.

c. There was no preference share issued by the company.

d. The company has not incurred any expenditure in foreign currency against royalties and

technical fees.

e. Auditors are paid only statutory audit fees.

f. No foreign exchange remitted to the relevant shareholders during the year under audit.

g. No amount of money was expended by the company for compensating any members of the

Board for special service rendered.

h. No brokerage was paid against sales during the year under audit.

i. There was no bank guarantee issued by the company on behalf of directors.

3.35 Attendance Status of Board Meeting of Directors:

During the year from 01.07.2010 to 30.06.2011 there were fourteen Board Meetings were held.

The attendance status of all the meetings is as follows:

Name of Directors Position Meeting Held Attended

Mr. A. Matin Chowdhury Managing Director 14 14

Dr. Shamim Matin Chowdhury Director 14 14

Mr.A.F.M Zubair Director 14 11

Mr.Azizur Rahim Chowdhury Director 14 14

Ms. Saima Matin Chowdhury Director 14 7

Mr.Moshiur Rahman Director 14 14

Mr. M. Sekander Ali Independent Director 14 11

For board meeting, attendance fees were not paid to the directors of the Companyon per

resolution of Board Meeting dated as on September 30, 2008 none of the Directors are taking any

Remuneration for attending Board of Directors Meeting.

3.36 Discloser as per requirement of Schedule XI, Part II of Company Act 1984

A. Discloser as per requirement of schedule XI, part II, Note 5 of Para 3

Employee Position for Malek Spinning Mills Ltd. (as per 30th

June 2011)

Salary Range Officer & Staff Worker Total Employee

Head Office Factory

Below 3,000

Above 3,000 57 204 1343 1604

Total 57 204 1343 1604

Employee Position for Salek Textile Ltd. (as per 30th

June 2011)


Head Office Factory

Below 3,000 -

Above 3,000 17 148 437 602

Total 17 148 437 602

JM Fabrics Limited (as per 30th

June 2011)


Head Office Factory

Below 3,000

Above 3,000 8 81 1562 1651

Total

Titas Spinning & Denim Co. Ltd. (as per 30th

June 2011)


Head Office Factory

Below 3,000 -

Above 3,000 5 42 132 179

Total 5 42 132 179

Discloser as per requirement of schedule XI, part II, Para 4

Payment to Directors (From 1ST

July 2010 to June 30th

2011)

Particulars Amount

MSML

Amount

STL

Remarks

Mr. A.Matin Chowdhury Managing Director 13,00,000 - Remuneration

Mr. A.F.M Zubair Director 27,95,000 13,00,000 Remuneration

Mr.Azizur R. Chowdhury Director 9,10,000 - Remuneration

TOTAL 50,05,000 13,00,000

A. Discloser as per requirement of schedule XI, part II, Para 7

Detail of Production Capacity Utilization

Particulars Licence

Capacity

Installed

Capacity

Actual

Production

2010-2011

Capacity

Utilization

2010-2011

Annual Production

Capacity of Yarn in

KG.

Not Mentioned

in the Licence

1,26,00,000 1,12,83,075 89.55%

C. Discloser as per requirement of schedule XI, part II, Para 8

Value of Raw Cotton, Spare Parts, Packing Materials and Capital Machinery (BDT)

Particulars Local

Purchase

Import Total

Purchase

Consumed

Raw Cotton - 3,34,27,14,929 3,34,27,14,929 3,03,15,27,455

Spare Parts - 2,22,54,538 2,22,54,538 6,34,19,731

Packing Materials 2,81,37,662 - 2,81,37,662 2,81,37,662

Capital goods - 66,83,941 66,83,941 -

3.35 Attendance Status of Board Meeting of Directors:

During the year from 01.07.2010 to 30.06.2011 there were fourteen Board Meetings were held.

The attendance status of all the meetings is as follows:

Name of Directors Position Meeting Held Attended

Mr. A. Matin Chowdhury Managing Director 14 14

Dr. Shamim Matin Chowdhury Director 14 14

Mr.A.F.M Zubair Director 14 11

Mr.Azizur Rahim Chowdhury Director 14 14

Ms. Saima Matin Chowdhury Director 14 7

Mr.Moshiur Rahman Director 14 14

Mr. M. Sekander Ali Independent Director 14 11

For board meeting, attendance fees were not paid to the directors of the Companyon per

resolution of Board Meeting dated as on September 30, 2008 none of the Directors are taking any

Remuneration for attending Board of Directors Meeting.

3.36 Discloser as per requirement of Schedule XI, Part II of Company Act 1984

A. Discloser as per requirement of schedule XI, part II, Note 5 of Para 3

Employee Position for Malek Spinning Mills Ltd. (as per 30th

June 2011)


Head Office Factory

Below 3,000

Above 3,000 57 204 1343 1604

Total 57 204 1343 1604

Employee Position for Salek Textile Ltd. (as per 30th

June 2011)


Head Office Factory

Below 3,000 -

Above 3,000 17 148 437 602

Total 17 148 437 602

JM Fabrics Limited (as per 30th

June 2011)


Head Office Factory

Below 3,000

Above 3,000 8 81 1562 1651

Total

Titas Spinning & Denim Co. Ltd. (as per 30th

June 2011)


Head Office Factory

Below 3,000 -

Above 3,000 5 42 132 179

Total 5 42 132 179

Discloser as per requirement of schedule XI, part II, Para 4

Payment to Directors (From 1ST

July 2010 to June 30th

2011)

Particulars Amount

MSML

Amount

STL

Remarks

Mr. A.Matin Chowdhury Managing Director 13,00,000 - Remuneration

Mr. A.F.M Zubair Director 27,95,000 13,00,000 Remuneration

Mr.Azizur R. Chowdhury Director 9,10,000 - Remuneration

TOTAL 50,05,000 13,00,000

A. Discloser as per requirement of schedule XI, part II, Para 7

Detail of Production Capacity Utilization

Particulars Licence

Capacity

Installed

Capacity

Actual

Production

2010-2011

Capacity

Utilization

2010-2011

Annual Production

Capacity of Yarn in

KG.

Not Mentioned

in the Licence

1,26,00,000 1,12,83,075 89.55%

C. Discloser as per requirement of schedule XI, part II, Para 8

Value of Raw Cotton, Spare Parts, Packing Materials and Capital Machinery (BDT)

Particulars Local

Purchase

Import Total

Purchase

Consumed

Raw Cotton - 3,34,27,14,929 3,34,27,14,929 3,03,15,27,455

Spare Parts - 2,22,54,538 2,22,54,538 6,34,19,731

Packing Materials 2,81,37,662 - 2,81,37,662 2,81,37,662

Capital goods - 66,83,941 66,83,941 -

Malek Siddiqui Wali


JUNE'11 JUNE'10

4. FIXED ASSETS:Tk.

Details of Fixed Assets and Depreciation as at 30th

June 2011 are shown in the Annexure- 1.

This is arrived at as follows:

COST:

Cost as at 01.07.2010 1,796,065,025 1,641,755,646

Addition this year 25,048,057 156,502,379

1,821,113,083 1,798,258,025

Less: Sales/Adjustment - 2,193,000

Total Cost as at 30.06.2011 1,821,113,083 1,796,065,025

Accumulated Depreciation as at 01.07.2010 1,083,084,029 1,014,307,662

Less: Adjustments during this year - 582,865

Add: Depreciation for this year 52,242,824 69,359,233

Total Depreciation as at 30.06.2011 1,135,326,852 1,083,084,029

Written Down Value as at 30.06.2011 685,786,230 712,980,996

REVALUATION:

Revaluation of Fixed Assets as at 01.07.2010 1,050,477,013 1,121,891,469

Less: Depreciation for this year on Revaluated Assets 50,123,276 71,414,455

Written Down Value of Revaluated Assets as at 30.06.2011 1,000,353,737 1,050,477,013

Total Written Down Value as at 30.06.2011 1,686,139,968 1,763,458,010

Allocation of depreciation charges for the period has been made in the accounts as follows:

i) Factory Overhead 98,759,055 139,163,689

ii) Administrative Overhead 3,607,045 1,609,999

Total 102,366,100 140,773,688

-

5. INVESTMENT IN SUBSIDIARY COMPANY: Tk.

i) Salek Textile Limited (899,100 Shares of Tk.100/- each) 89,910,000 89,910,000

ii) Newasia Synthetics Limited (901,800 Shares of Tk.100/- each) 90,180,000 90,180,000

iii) J.M Fabrics Limited (624,900 Shares of Tk. 100/- each) 62,490,000 -

iv) Titas Spinning & Denim Co. Ltd. (9,000 Shares of Tk. 100/- each) 900,000 -

243,480,000 180,090,000

6. SHARE MONEY DEPOSIT TO SUBSIDIARY COMPANY: TK. 602,876,900

i) Salek Textile Limited 189,926,900 189,926,900

ii) Newasia Synthetics Ltd. 10,000,000 10,000,000

iii) JM Fabrics Ltd. 308,750,000 -

iv) Titas Spinning & Denim Co. Ltd. 94,200,000 -

602,876,900 199,926,900

7. INVENTORIES: Tk.

This consists of as follows :

i) Raw Materials Note: 7.A 553,485,960 242,298,486

ii) Stock-in-Transit Note: 7.B 1,014,491,796 303,819,087

iii) Work-in-Process Note: 7.C 83,553,971 57,900,914

iv) Finished Goods Note: 7.D 216,027,797 133,749,810

v) Stores and Accessories Note: 7.E 65,214,690 106,379,883

Total 1,932,774,214 844,148,180

243,480,000

Amount in Taka

MALEK SPINNING MILLS LIMITEDNOTES OF FINANCIAL STATEMENT

AS AT 30TH

JUNE 2011

1,686,139,968

1,932,774,214

Malek Siddiqui Wali


JUNE'11 JUNE'10

Amount in Taka


AS AT 30TH

JUNE 2011

7.A RAW MATERIALS : Tk.

Raw Materials Inventory accounted as follows:

JUNE'11 JUNE'10

Raw Cotton USA 1,458,000 1,740,150 553,485,960 242,298,486

Raw Cotton Indian - - - -

Total 1,458,000 1,740,150 553,485,960 242,298,486

7.B STOCK IN TRANSIT : Tk.

Stock in Transit Inventory accounted as follows :

JUNE'11 JUNE'10

Raw Cotton USA 13,709,349$ 4,365,217$ 1,014,491,796 303,819,087

Total 13,709,349$ 4,365,217$ 1,014,491,796 303,819,087

7.C WORK-IN-PROCESS : Tk.

Work-In-Process Inventory accounted as follows :

Particulars JUNE'11 JUNE'10

Direct Materials 216,405 469,343 82,151,666 47,403,650

Direct Labour - - 235,881 1,835,775

Factory Overhead - - 1,166,423 8,661,489

Total 216,405 397,256 83,553,971 57,900,914

7.D FINISHED GOODS INVENTORY:Tk. 216,027,797

Particulars

JUNE'11 JUNE'10

Total Kg 1,445,804 569,484 216,027,797 133,749,810

- -

S.L. Yarn Count Qty (Kg) Qty (Kg)

1 20k 18,200 - 2,640,196 -

2 22K 5,950 11,745 867,230 2,571,236

3 24K 338,362 38,976 49,154,234 8,773,427

4 25K - 19,718 - 4,465,550

5 26K 10,259 15,180 1,492,020 3,469,079

6 28K 17,702 4,621 2,574,494 1,056,035

7 30K 632,333 276,812 92,524,229 63,259,729

8 32K 61,264 47,091 9,127,258 11,052,543

9 34K 36,052 11,536 5,371,113 2,810,488

10 40K - 59,342 - 15,760,548

11 20C 23,800 5,000 3,693,522 1,204,502

12 22C 9,750 1,513,103 -

13 24C 9,750 31,784 1,530,395 7,547,147

14 25C 418 65,611 -

15 26C 16,210 2,587,505 -

16 28C 7,557 8,751 1,212,980 2,162,013

17 30C 191,483 26,878 30,735,090 6,640,452

18 32C 19,606 12,050 3,173,055 2,977,061

19 34C 5,602 906,633 -

553,485,960

1,014,491,796

Quantity in KG

Amount in US$

Quantity in KG

83,553,971

Quantity in KG

Malek Siddiqui Wali


JUNE'11 JUNE'10

Amount in Taka


AS AT 30TH

JUNE 2011

20 40C 41,506 6,859,129 -

Total Kg 1,445,804 569,484 216,027,797 133,749,810

7.E STORES & ACCESSORIES: Tk. 65,214,690

Stores and Accessories is accounted as follows :

Spare Parts & Accessories 65,214,690 106,379,883

65,214,690 106,379,883

8. ACCOUNTS RECEIVABLE: TK.

A/C Receivable occurred in the ordinary course of business.

777,543,982 629,187,317

a) The A/C Receivable are secured against confirmed Export L/C

9. INTEREST RECEIVABLE ON STD A/C - 10,315,871

Interest receivable from IPO Share Money Deposit.

10. ADVANCE, DEPOSITS & PRE-PAYMENTS: Tk.

This is comprised as follows :

Advance against construction materials, suppliers and others 20,569,156 19,934,385

Advance to Employees against Salary - 8,000

Advance to Sikder Construction against Land Purchase 9,000,000 9,000,000

Advance to Salek Textile Ltd. (Subsidiary Company) 654,564,475 464,176,844

Advance to Newasia Synthatics Ltd. (Subsidiary Company) 303,790,823 154,470,423

Advance to J.M Fabrics Ltd. 159,941,729 -

Advance to Titas Spinning & Denim Co. Ltd. 246,500,000 -

Advance against Office Rent (Haji Mansur Ali) 4,000,000 -

Security Deposit to United Leasing Co. Ltd. 101,887 -

Security Deposit on REB 178,875 178,875

Security Deposit on Titas Gas T&D Co. 7,038,761 7,038,761

Advance Income Tax Note:10.A 30,016,448 22,523,767

Security Deposit to CDBL 500,000 500,000

1,436,202,154 677,831,055

a) All the advances & deposits amount is considered good and recoverable.

b) In the opinion of Directors, all current assets, investments, loans and advance have, on realization in the ordinary course of

business, a value at least equal to the amount at which they are stated in the Balance Sheet.

c) There is no agreement amount due from Directors or officers of the Company.

d) Advance against construction materials, supplies and others consist of advance to Ata Enterprise, Burlingtons Ltd., Sikder

Construction and various party for construction materials, supplies and other Indirect materials procurement.

10.A. ADVANCE INCOME TAX: Tk. 30,016,448 This is as follows:

(i) Advance Income Tax paid (Against Export Proceeds) 11,679,959 954,439

(ii) Advance Income Tax paid (Against Yearly Income) 10,000,000 13,241,493

(iii) Advance Income Tax paid (Against Interest Income) Note: 29 8,336,489 8,327,835

Total- 30,016,448 22,523,767

11. CASH AND CASH EQUIVALENTS: Tk. 575,484,695This consists of as follows:

A. Cash in Hand at Head Office 180,000 180,000

B. Cash at Banks :

AB Bank Limited- STD Account: 4005.767482.430 211,546 211,990,756

BRAC Bank STD A/C: 150510 1,724,664 11,100,113,776

BRAC Bank A/C:150120 (Dividend) 11,686,208 -

1,436,202,154

777,543,982

Malek Siddiqui Wali


JUNE'11 JUNE'10

Amount in Taka


AS AT 30TH

JUNE 2011

Dhaka Bank Ltd.- Margin Account: $39,14,423.74 285,752,933 12,059,527

Eastern Bank Ltd.- Margin Account : US$ 8,31,988.03 60,735,126 14,534,295

Eastern Bank FC A/C: (Deposit-NRB IPO) 1,901,570 405,688,085

Eastern Bank STD A/C: BDT-(Deposit-IPO) # 0068 20,333,712 4,853,404,237

HSBC Bank-Margin A/C 001-007475-091 : US$ 26,31,629.81 192,108,976 7,538,559

HSBC CD A/C: 001-007475-011 - 7,401,433

One Bank Ltd.- Margin Account : US$ 811.59 59,246 10,832

Shahjalal Islami Bank Ltd.CD A/C: 4005 1110000252 8 20,448 2,800,074

Trust Bank Ltd.CD A/C: 0003-0210006613 752,504 4,835,374

Trust Bank Limited- Margin Account: $ 243.29 17,760 494,772

575,304,695 16,620,871,720

575,484,695 16,621,051,720

Note:

a) Cash balance is physically verified and Bank balances are reconciled and found in order.

b) Export proceeds are realised in the Margin A/C and is utilized for Payment of Deferred L/C Payment for Raw Cotton.

c) Foreign Exchange Rate in different Banks as on 30.06.2011 are as HSBC Tk.73.00, Eastern Bank Ltd Tk.73.00,

One Bank Ltd Tk.73.00, Dhaka Bank Ltd. Tk.73.00 and Trust Bank Ltd. Tk.73.00

d) Deposited with BRAC Bank ltd and Eastern Bank Ltd are IPO share subscription money.

12. SHARE CAPITAL : Tk.

This is made-up as follows:

Authorised Capital :

20,00,00,000 Shares @ Tk. 10/- each 2,000,000,000 2,000,000,000

ISSUE, SUBCRIBED AND PAID-UP CAPITAL:

160,000,000 Ordinary Shares @ Tk.10/- each issued and paid up at par cash. 1,600,000,000 1,200,000,000

1,600,000,000 1,200,000,000

Percentage of Share Holding Position of different share holders are as follows:

S.L Name of Share Holder No.of Share Holding Amount Amount

1 Mr.A.Matin Chowdhury 110,400,000 110,400,000

2 Dr.Shamim Matin Chowdhury 110,000,000 110,000,000

3 Ms. Saima Matin Chowdhury 124,000,000 124,000,000

4 Mr.Azizur R.Chowdhury 153,600,000 153,600,000

5 Mr.A.F.M. Zubair 70,000,000 70,000,000

6 Mr.Shyan Zubair 32,000,000 32,000,000

7 Paragon Poultry Ltd. 100,000,000 100,000,000

8 Private Placement (Institutional) - - 500,000,000

9 General Public 90,000,000 900,000,000 -

TOTAL 1,600,000,000 1,200,000,000

Classification of shareholders by holding:

Distribution schedule of each class of equity security setting out the number of holders and percentage as at 30.06.2011

SL Holdings Percentage

1 2,200 0.001%

2 21,801,300 13.626%

3 5,045,500 3.153%

4 4,460,500 2.788%

5 2,616,000 1.635%

6 1,507,000 0.942%

7 1,688,500 1.055%

8 5,762,500 3.602%

9 19,007,500 11.880%

10 98,109,000 61.318%

160,000,000 100%

13. SHARE PREMIUM: 1,500,000,000 150,000,000

% of Holding

76

25,717

63

21

41

56.25%

2.00%

6.90%

6.88%

500 to 5,000 shares

37

297

10220,001 to 30,000 shars

40,001 to 50,000 shares

30,001 to 40,000 shares

9.60%

7.75%

4.38%

160,000,000

6.25%10,000,000

0.00%

1,600,000,000

No. of Holders

Total

7,000,000

100%

100,001 to 1,000,000 shares

Range of Holdings

11,040,000

Over 1,000,000 shares

11,000,000

3,200,000

12,400,000

15,360,000

Less than 500 shares 11

24409

5,001 to 10,000 shares 660

10,001 to 20,000 shares

50,001 to 100,000 shares

Malek Siddiqui Wali


JUNE'11 JUNE'10

Amount in Taka


AS AT 30TH

JUNE 2011

This represents issuance of 10,000,000 ordinary shares in September 2008 for Tk.25 each including premium of Tk. 15/- each

in compliance with The Securities and Exchange Commission (SEC) consent No.SEC/CI/CPLC (PVT.)-95/06/337 dated on

30.06.2008 and further Placement issuance of 50,000,000 ordinary shares October 2009 for Tk.25/- each including premium

of Tk.15 each in compliance with The Securities and Exchange Commission (SEC) consent No. SEC/CI/CPLC(PVT.)-95/

14. GENERAL RESERVE AND SURPLUS: Tk.

This is arrived as follows:

Balance as per last accounts 643,815,792 416,211,705

Add: Net Profit for this year 101,958,317 156,189,632

745,774,109 572,401,337

Add: Depreciation/Adjustment of Reserve for Revaluation of Fixed Assets 50,123,276 71,414,455

Less: Declared Cash Dividend 90,000,000 -

705,897,385 643,815,792

15. RESERVE FOR RE-VALUATION OF FIXED ASSETS: Tk. 1,000,353,737

This calculation is arrived as follows:

Balance as on 01.07.2010 1,050,477,013 1,121,891,469

Less: Depreciation for this year on Revaluated assets 50,123,276 71,414,455

Written Down Value as at 30.06.2011 1,000,353,737 1,050,477,013

Note: Details of Adjustment of Reserve for Re-valuation of Fixed Assets is given in the Annexure-1

16. SHARE MONEY DEPOSIT (IPO) -

This is arrived as follows :

Total - 16,375,175,584

17. LONG TERM LOAN: Tk.


Eastern Bank Limited 112,844,912 -

United Leasing Co. Ltd. 2,870,046 -

Total 115,714,958 -

Less: Current Portion of Long Term Loan - -

115,714,958 -

18. SHORT TERM LOAN : Tk.


A. Import Loan:

Eastern Bank Ltd 11,497,591 57,821,988

One Bank Ltd 5,927,635 26,759,729

Dhaka Bank Ltd - 2,129,570

17,425,226 86,711,287

B. Overdraft:

Eastern Bank Ltd A/C:180 & 011 43,590,214 77,707,741

Dhaka Bank Ltd OD A/C: 207.175.23 25,300,320 27,462,269

One Bank Ltd OD A/C: 16426008 19,334,546 18,862,809

HSBC OD A/C: 001-007475-011 25,667,818 -

115,714,958

705,897,385

dated on June 03, 2009 and further issuance of IPO of 4,00,00,000 ordinary shares on July 2010 for Tk. 25/- each including

Premium of Tk. 15/- each in compliance with the Securities and Exchange Commission (SEC) consent No. SEC/CI/IPO-

118/2010/462 dated April 15, 2010.

136,047,801

Malek Siddiqui Wali


JUNE'11 JUNE'10

Amount in Taka


AS AT 30TH

JUNE 2011

Citibank N.A OD A/C: G010000200558006 4,729,677 2,061,074

118,622,575 126,093,893

136,047,801 212,805,180

Note: The above Import Loan and Overdraft loans are secured against hypothecation of Stocks and Book Debts.

19. LIABILITIES FOR REFUNDABLE IPO SHARE MONEY : Tk. 14,971,455


Eastern Bank FC A/C: (Deposit- NRB IPO) 1,901,570 -

Eastern Bank STD A/C: BDT (Deposit IPO) 13,069,885 -

Total 14,971,455 -

20. SECURITY DEPOSIT AGAINST SALES: - 6,000,000

21. ACCEPTANCE LIABILITY FOR RAW COTTON & MACHINERY:Tk.2,045,647,341


A. Raw Cotton:

Eastern Bank Limited 702,776,637 82,643,075

Dhaka Bank Limited 387,749,991 111,905,623

Trust Bank Limited - 81,966,587

HSBC 955,120,713 27,799,792

2,045,647,341 304,315,076

B. Machinery:

Eastern Bank Limited - 128,259,961

- 128,259,961

2,045,647,341 432,575,037

Note:

i) Acceptance liability represents the deferred payment of L/C for Imported Raw Materials for the period of 180 Days.

22. CREDITORS AND ACCRUALS: Tk.


Gas Bill Payable 4,263,680 10,328,577

Electricity Bill Payable 113,036 223,516

Audit Fees Payable 75,000 75,000

Legal Fees Payable - 60,000

Office Rent Payable - 163,080

Salary & Wages Payable 7,340,699 6,269,490

Tax Deduction at Source 213,400 -

Income Tax Payable Note: 22.A 29,667,317 24,039,638

Contribution to WPPF Payable 57,065,940 50,484,658

Directors Remuneration Payable 321,062 385,000

Accounts Payable for Goods Supplies & Others 25,840,360 12,259,105

Accrued Interest - 872,382

124,900,493 105,160,447

a) Accounts Payable for Goods Supplies and others represents regular suppliers of packing materials, ball-bearing, belts, fuel

& lubricants, stationary items and others.

b) All accounts payable were paid on regular basis.

c) Factory Salary and Wages payable for the month of 30th June 2011

22.A. PROVISION FOR INCOME TAX: 29,667,317


124,900,493

Malek Siddiqui Wali


JUNE'11 JUNE'10

Amount in Taka


AS AT 30TH

JUNE 2011

Balance as per Last Account: 24,039,638 31,989,834

Add : Additional Income Tax paid: 6,200,000 -

Add : Provision made for this year: Note: 33 29,667,317 31,854,745

59,906,955 63,844,579

Less: Payment for Current year Note: 22.A-1 - 38,160,047

Less: Payment/adjustment for Last year 30,239,638 1,644,894

Total Payment/Adjustment for this year: 30,239,638 39,804,941

Total 29,667,317 24,039,638

Tk. - 872,382

23. DIVIDEND PAYABLE: TK. 10,968,740 -

24. SALES: Tk.

Export Sales 3,509,105,802 1,978,824,374

3,509,105,802 1,978,824,374

25. COST OF GOODS SOLD: Tk.


Raw Material Consumed Note: 25-(A) 3,031,527,455 1,396,476,339

Direct Expenses Note: 25-(B) 60,704,588 54,308,342

Factory Overhead Note: 25-(C). 325,315,600 286,982,899

Total Manufacturing Cost 3,417,547,642 1,737,767,580

Work-in-Process- Opening 57,900,914 54,298,593

Cost of Goods available for Use 3,475,448,556 1,792,066,173

Work-in-Process- Closing 83,553,971 57,900,914

Cost of Production 3,391,894,586 1,734,165,260

Finished Goods- Opening 133,749,810 92,471,545

Cost of Goods Available for Sales 3,525,644,396 1,826,636,805

Finished Goods- Closing 216,027,797 133,749,810

Cost of Goods Sold: 3,309,616,599 1,692,886,994

25- (A) RAW MATERIALS CONSUMED: Tk.

This is accounted as follows:

Opening Inventory Raw Materials 242,298,486 257,270,930

Add: Purchase during the period 3,342,714,929 1,381,503,895

Less: Closing Inventory of Raw Materials 553,485,960 242,298,486

Raw Materials Consumed 3,031,527,455 1,396,476,339

25- (B) DIRECT EXPENSES: TK.

Direct Labour/Wages 60,288,884 54,159,694

Overtime Wages 415,704 148,648

60,704,588 54,308,342

25- (C) FACTORY OVERHEAD:Tk.

Factory Salary and Allowances 28,938,926 23,352,863

Electricity Charges 1,554,216 4,028,337

Gas Charges 58,132,802 54,827,627

Repairs & Maintenance 33,679,366 15,536,730

Packing Materials 28,137,662 22,097,690

Fuel & Oil 6,143,138 9,552,082

Insurance Premium 2,223,766 2,223,766

325,315,600

60,704,588

3,031,527,455

3,309,616,599

3,509,105,802

Malek Siddiqui Wali


JUNE'11 JUNE'10

Amount in Taka


AS AT 30TH

JUNE 2011

Stores & Accessories consump. Note: 26( C)-i 63,419,731 11,819,987

Entertainment 1,499,478 1,598,315

Telephone, Mobile & Fax 176,777 184,053

Statonery Charges 623,516 562,904

Printing Charges 265,777 95,402

Other Carrying Charges 80,054 70,845

Office Expenses 420,208 56,043

Vehicles Maintenance 683,971 1,415,200

Conveyances 35,927 39,716

House Rent for Worker Shed 443,950 357,650

Medical Expenses 23,005 -

Miscellaneous Exp. 74,275 -

Depreciation Note: 4 98,759,055 139,163,689

Total Factory Overhead- 325,315,600 286,982,899

25 ( C)-i STORES AND ACCESSORIES CONSUMED: Tk. 63,419,731

Opening stock of Stores & accessories 106,379,883 100,722,206

Add: Purchase during the year 22,254,538 17,477,664

Less: Closing Stock of Stores & Accessories 65,214,690 106,379,883

Total Consumed- 63,419,731 11,819,987

26. OPERATING EXPENSES: Tk.

This is arrived at as follows:

Salaries & Allowances 12,703,037 10,913,361

Festival Bonus 889,647 921,275

Director's Remuneration 5,005,000 5,005,000

Fees, Forms & Others 852,719 465,055

Audit Fees 75,000 75,000

Legal Fees - 60,000

Printing & Stationary 2,930,434 883,754

Telephone,Mobile & Internet Expenses 1,227,608 1,154,382

Postage & Stamp 137,014 34,984

Vehicle Maintenance 3,574,095 3,328,929

Miscellaneous Expenses 4,978,323 2,267,923

Office Rent 353,340 326,160

Rate & Taxes 234,000 472,247

Carriage Outward 2,459,075 1,979,470

Consultancy Fees - 403,347

Entertainment 623,368 263,880

Office Expenses - 355,838

Fuel for Head Office Generator 764,200 669,700

Advertisement & Publicity Expenses - 31,920

Security Charges 276,527 -

Gardening Expenses 13,409 73,579

Travelling & Conveyance 1,521,684 859,457

Uniform / Livery Security - 262,402


Books and periodicals - 3,409

Medical Expenses 32,590 64,140

Credit Rating Charges - 300,000

Software Maintenance Expenditure 20,000 758,000

61,628,145

Malek Siddiqui Wali


JUNE'11 JUNE'10

Amount in Taka


AS AT 30TH

JUNE 2011

Depreciation Note: 4 3,607,045 1,609,999

61,628,145 34,720,085

27. FINANCIAL EXPENSES: Tk.


i. EASTERN BANK LTD.:

Interest on Long Term Loan 4,616,345 312,179

Interest on Short Term Loan 28,806,713 5,230,953

Interest on Overdraft 3,297,001 8,348,896

Bank Charges & Commission 5,277,470 1,967,531

Export L/C Negotiation Commission 173,459 811,062

Interest on Bill Discount 3,245,600 5,983,049

Total = 45,416,587 22,653,669

ii. HSBC:

Interest on Short Term Loan - 2,181,636

Bank Charges & Commission 468,519 273,094

Export L/C Negotiation Commission 2,003,230 915,502

Interest on Overdraft 551,853 1,340,194


Total = 7,070,309 7,034,987

iii. DHAKA BANK LTD.:

Interest on Long Term Loan - 2,729,897

Interest on Short Term Loan 5,578,422 716,863


Bank Charges and Commission 5,359,145 1,319,074

Export L/C Negotiation Commission 2,332,428 733,941


Total = 18,698,137 12,396,810

iv. ONE BANK LTD.:


Interest on Short Term Loan - 712,833


Bank Charges & Commission - 85,336



Total = 4,917,038 8,986,336

v. TRUST BANK LTD.:



Bank Charges and Commission 367,836 21,680


Interest on Bill Discount 389,669 2,027,677

Total 1,937,458 5,101,381

vi. SHAHJALAL ISLAMI BANK LTD.:


Bank Charge and Commission 1,958 3,000

Export L/C Negotiation Commission - 51,399

Interest on Bill Discount - 217,771

Total 1,958 5,523,316

vii. CITIBANK NA:




79,041,915

Malek Siddiqui Wali


JUNE'11 JUNE'10

Amount in Taka


AS AT 30TH

JUNE 2011

Total 934,834 4,372,495

viii. IPDC:

Interest on Term Loan - 2,768,780

Total - 2,768,780

ix. UNITED LEASING CO. LTD.:

Interest on Lease Finance 36,933 142,727

Total 36,933 142,727

x. AB BANK LTD


Total 12,156 11,236

xi. BRAC BANK LTD


Total 16,506 11,236

Total Financial Expenses- 79,041,915 68,991,737

28. LOSS ON SALE OF FIXED ASSETS: Tk. Nil

Written down value of Cars: - 1,610,135

Sale Price - 1,112,300

Total Loss on Sale of Fixed Assets: - 497,835

29. OTHERS INCOME : Tk.

Interest Received from FDR A/C with Eastern Bank Ltd. - 2,218,536

Interest Received from FDR A/C with Dhaka Bank Ltd. - 947,222

Interest Received from Dividend A/C with BRAC Bank Ltd. 791,593 -

Interest Received from STD A/C with AB Bank Ltd. 1,783,517 35,142,628

Interest Received from STD A/C with BRAC Bank Ltd (IPO) 54,851,711 33,507,885

Interest Received from STD A/C with Eastern Bank Ltd (IPO) 25,938,071 11,462,079

83,364,891 83,278,349

30. OTHER EXPENSES (Non Operating Exp.): Tk.

AGM Expenses 3,412,659 -

Advertisment & Publicity Expenses of Financial reports. 564,460 -

3,977,119 67,064,623

31. PROVISION FOR WORKER'S PROFIT PARTICIPATION FUND:

Provision for Contribution to WPPF 6,581,282 9,897,072

6,581,282 9,897,072

Note: This represents 5% of net profit before tax of the company and is payable to workers as per provision defined

in the Labour Law 2006.

32. INCOME TAX (CURRENT TAX) PROVISION: Tk.

Tax Tax

i) On operating Income 15% 7,835,679 25,774,598

ii) On Net other Income 27.50% 21,831,637 6,080,147

Total 29,667,317 31,854,745

Note- Corporate Tax rate for Textile Sector is 15%

83,364,891

79,387,772

131,625,634

52,237,861

29,667,317

3,977,119

Operating Income

Malek Siddiqui Wali


JUNE'11 JUNE'10

Amount in Taka


AS AT 30TH

JUNE 2011

33. BASIC EARNINGS PER SHARE (EPS): Tk. 0.64

The computation of EPS is given below:

(a) Net Profit after Tax for the period 101,958,317 156,189,632

(b) Number of Total Share (Weighted Avg.) Note: 33(B) 159,342,466 103,561,644

Basic Earnings per Share (a/b): 0.64 1.51

33.(B) WEIGHTED AVERAGE NO.OF SHARES OUTSTANDING:

For the period from 1st July 2010 to 30th June 2011:

1st July 2010 to 6th July 2010 120,000,000 6 1,972,603

7th July 2010 to 30th June 2011 160,000,000 359 157,369,863

159,342,466 Total

Date outstandingShares

outstandingWeighted ShareDays

Malek Siddiqui Wali


ANNEXURE : 1

AS ON

01.07.2010ADDITION ADJUSTMENT

AS ON

30.06.201101.07.2010 THIS PERIOD ADJUSTMENT

AS ON

30.06.2011

(A)-

1 Land and Land Development 69,736,276 69,736,276 0% - - - 69,736,276

2 Factory Building 312,163,793 1,107,580 313,271,373 5% 205,621,928 5,382,472 211,004,400 102,266,973

3 Plant and Machinery 1,217,598,973 6,683,941 1,224,282,914 7.5% 757,612,278 35,000,298 792,612,576 431,670,339

4 Lease Assets (Plant and Machinery) 12,753,116 12,753,116 10% 2,423,092 1,033,002 3,456,094 9,297,022

5 Electrical Installation 46,981,626 73,000 47,054,626 15% 29,114,238 2,691,058 31,805,297 15,249,329

6 Tubewell and Water Pump 2,463,406 2,463,406 15% 1,814,214 97,379 1,911,593 551,813

7 Furniture and Fixtures 3,011,440 74,378 3,085,818 10% 1,206,202 187,962 1,394,164 1,691,654

8 Office Equipments 7,465,191 1,242,328 8,707,519 15% 3,513,301 779,133 4,292,434 4,415,085

9 Gas Line Installation 7,733,554 2,884,830 10,618,384 15% 2,992,808 1,143,836 4,136,645 6,481,740

10 Loose Tools and Equipment 1,254,088 1,254,088 15% 1,101,355 22,910 1,124,265 129,823

11 Motor Vehicle 14,321,899 12,982,000 27,303,899 15% 9,801,826 2,625,311 12,427,137 14,876,762

12 Telephone (PABX) Installation 400,000 400,000 15% 321,250 11,812 333,063 66,937

13 Crockaries and Cutlaries 50,777 50,777 15% 31,932 2,827 34,758 16,019

14 Generator 99,877,786 99,877,786 10% 67,370,413 3,250,737 70,621,150 29,256,636

15 Fire Installation 253,100 253,100 15% 159,191 14,086 173,277 79,823

Total of "A" 1,796,065,025 25,048,057 - 1,821,113,083 1,083,084,029 52,242,824 - 1,135,326,852 685,786,230

AS ON

01.07.2010ADDITION ADJUSTMENT

AS ON

30.06.201101.07.2010 THIS PERIOD ADJUSTMENT

AS ON

30.06.2011

(B)-REVALUATION OF FIXED ASSETS :

1 Land 337,982,604 - - 337,982,604 - - - - - 337,982,604

2 Building & Civil Construction 146,872,234 - - 146,872,234 5% 14,320,043 6,627,610 - 20,947,652 125,924,582

3 Machineries 715,978,047 - - 715,978,047 7.5% 136,035,829 43,495,666 - 179,531,495 536,446,552

Total of "B" 1,200,832,885 1,200,832,885 - 150,355,872 50,123,276 - 200,479,148 1,000,353,737

GRAND TOTAL ( A+B) 2,996,897,910 25,048,057 - 3,021,945,968 1,233,439,900 102,366,100 - 1,335,806,000 1,686,139,968

Depreciation Charged to:

Operating Expenses 3,607,045

Factory Overhead 98,759,055

Tk. 102,366,100

REVALUATED FIXED ASSETS SCHEDULE AS ON 30TH

JUNE 2011

RATE

RATE

COST DEPRECIATION

MALEK SPINNING MILLS LIMITEDFIXED ASSETS SCHEDULE AS ON 30

TH JUNE 2011

WRITTEN DOWN

VALUE AS ON

30.06.2011

COST DEPRECIATION WRITTEN DOWN

VALUE AS ON

30.06.2011

PARTICULARS

PARTICULARS

Malek Siddiqui Wali



Taka Taka

ASSETS :

Non-Current Assets : 4,759,544,212 3,270,596,908

Property, Plant and Equipment 1.1 4,670,958,362 3,240,254,822

Capital Work-in-Progress 2.1 52,445,198 -

Pre-operating Expenses 3.1 21,719,065 12,315,103

Trial and operation Loss 4.1 14,421,587 18,026,983

Current Assets : 6,003,049,525 19,229,869,735

Inventories 5.1 3,197,764,748 1,274,585,216

Accounts Receivable 6.1 1,934,101,539 1,140,280,454

Interest Receivable 7.1 - 10,315,871

Advances,Deposits and Pre-payments 8.1 111,816,728 131,446,214

Cash and Cash Equivalents 9.1 759,366,510 16,673,241,980

TOTAL ASSETS : 10,762,593,737 22,500,466,643

SHAREHOLDER'S EQUITY AND LIABILITIES:

Shareholder's Equity : 4,858,569,829 20,318,927,399

Share Capital 10.1 1,600,000,000 1,200,000,000

Share Premium 11.1 1,500,000,000 900,000,000

General Reserve and Surplus 12.1 640,273,871 748,437,099

Tax Holiday Reserve 13.1 117,942,221 44,837,703

Reserve for Re-valuation of Fixed Assets 14.1 1,000,353,737 1,050,477,013

Share Money Deposit 15.1 - 16,375,175,584

Minority Interest 16.1 17,180,575 30,131,556

Non Current Liabilities: 1,069,420,517 472,942,709

Long Term Loan 17.1 1,069,420,517 472,942,709

Current Liabilities : 4,817,422,816 1,678,464,977

Short Term Loan 18.1 643,841,642 367,801,166

Current Portion of Long Term Loan 19.1 249,384,914 250,601,084

Security Deposit against Sales 20.1 - 6,000,000

Acceptance Liabilities 21.1 3,082,214,258 787,245,693

Credirors and Accruals 22.1 813,518,856 250,643,934

Unclaimed Dividend 23.1 10,968,740 -

Loan from Directors 24.1 2,522,950 16,173,100

Liabilities for refundable IPO Share money 25.1 14,971,455 -


Net Assets Value Per Share (NAV) 30.49 38.08 Par Value Tk.10

The annexed notes 1.1 to 36.1 form an integral part of these financial statement.






MALEK SPINNING MILLS LIMITEDCONSOLIDATED BALANCE SHEET

AS AT 30TH

JUNE 2011

Malek Siddiqui Wali



Taka Taka

Sales 26.1 6,648,709,202 3,439,506,873

Cost of Goods Sold 27.1 5,994,995,712 2,862,863,727

Gross Profit : 653,713,490 576,643,146

Operating Expenses 28.1 88,082,946 43,079,955

Financial Expenses 29.1 297,231,447 213,717,629

Amortization of Trial and operation Expenses 30.1 3,605,397 4,506,746

Loss on Sale of Fixed Assets 31.1 - 497,835


Add : Other Income 32.1 83,369,833 83,278,349

Less: Other Expenses 33.1 3,977,119 67,064,623


Provision for Contribution to WPPF 34.1 21,258,279 16,235,799


Provision for Income Tax : 35.1 32,061,335 31,854,745


Transferred to Tax Holiday Reserve 73,104,517 34,229,123

Net Profit after Tax Holiday Reserve 217,762,284 248,735,040

Minority Interest 16,855,266 12,677,453

Net Profit Balance 200,907,019 236,057,587

(Transferred to the Statement of Changes in Equity)

Earnings per Share (EPS) 36.1 1.72 2.73

Par Value Tk.10

The annexed notes 1.1 to 36.1 form an integral part of these financial statement.

sd/- sd/- sd/- sd/-A.Matin Chowdhury A.F.M. Zubair B.K. Chaki Syed Saiful Haque







JUNE 2011

CONSOLIDATED INCOME STATEMENT

Malek Siddiqui Wali


JUNE'11 JUNE'10

Taka Taka


Collection from Turnover & Bills Receivable 6,044,552,986 3,033,122,500

Collection from Other Income 83,369,833 72,962,478


Payment for Operating Expenses (80,685,577) -

Payment for Other Expenses (3,977,119) (67,064,623)


Payment for Income Tax (30,239,638) (38,160,047)

Net Cash provided by Operating Activities 864,147,781 20,816,222


Acquisition of Fixed Assets (580,617,964) (407,238,845)

Acquisition of Capital work in progress 134,010,532 -

Disposal of Fixed Assets - 1,112,300

Pre-operating expenses (10,298,036) (7,923,430)

Invenstment to Sub-sidiary Co. against Share Capital (466,340,000) -



Bank Loan Receipt/(Repayment) (442,561,612) (625,998,685)

Loan from Directors (184,717,303) -

Advance Deposit & Prepayments 41,976,765 (73,191,040)

Issuance of Share Capital 400,000,000 500,000,000

Share Premium Received 600,000,000 750,000,000

Liability for refunable IPO Share Money 14,971,455 -

Dividend Payment (79,031,260) -

Redemption of Share Money Deposit (16,236,225,584) 16,375,175,584

Net cash used in Financing Activities (15,885,587,539) 16,925,985,859

Increase/(Decrease) in Cash and Cash Equivalents (15,944,685,226) 16,532,752,106

Cash & Cash Equivalents at 1st July 2010 (MSML, STL & NSL) 16,673,241,980 140,489,874

Cash & Cash Equivalents at 1st July 2010 (J.M. & TITAS) 30,809,756 -

16,704,051,736 140,489,874


June 2011 759,366,510 16,673,241,980

Net Operating Cash Flow Per Share (NOCFPS) 5.42 0.20

Par Value Tk.10






MALEK SPINNING MILLS LIMITEDCONSOLIDATED CASH FLOW STATEMENT

FOR THE ENDED 30TH

JUNE 2011

Malek Siddiqui Wali


Share Share

Premium Money

Deposit

Balance as on 1st July 2010 1,200,000,000 1,050,477,014 44,837,703 748,437,098 900,000,000 16,375,175,584 20,318,927,399

Balance as on 1st July 2010

(J.M. & TITAS) (324,861,522) (324,861,522)

Net Profit during the period - - - 200,907,019 - 200,907,019

Isuance of Share Capital 400,000,000 400,000,000

Isuance of Bonus Share

(J.M.) (12,498,000) (12,498,000)

Profit & Loss appropriation

A/C-Titas (Adjustment)68,166,000 68,166,000

Share Money Deposit - (16,375,175,584) (16,375,175,584)

Reserve for revaluation

Fixed Assets - (50,123,276) - 50,123,276 - -

Tax Holiday Reserve - - 73,104,517 - 73,104,517

Share Premium 600,000,000 600,000,000

Dividend for 2009-2010 (90,000,000) (90,000,000)

As on 30th June 2011 1,600,000,000 1,000,353,737 117,942,221 640,273,871 1,500,000,000 - 4,858,569,829

(0)

Share Share

Premium Money

Deposit

Balance as on 1st July 2009 700,000,000 1,121,891,469 10,608,580 440,965,056 150,000,000 2,423,465,105

Net Profit during the period 236,057,587 236,057,587


Share Money Deposit 16,375,175,584 16,375,175,584

Reserve for revaluation -

Fixed Assets (71,414,455) 71,414,455 -

Tax Holiday Reserve 34,229,123 34,229,123

Share Premium 750,000,000 750,000,000

As on 30th June 2010 1,200,000,000 1,050,477,014 44,837,703 748,437,098 900,000,000 16,375,175,584 20,318,927,399







General Reserve

and Surplus Particulars Share Capital

Reserve for

Revaluation of

Fixed Assets

Total Tax holiday

Reserve Particulars Share Capital

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY


JUNE 2010

Tax holiday

Reserve


JUNE 2011

General Reserve

and Surplus

Reserve for

Revaluation of

Fixed Assets

Total

Malek Siddiqui Wali


JUNE'11 JUNE'10

1.1 CONSOLIDATED FIXED ASSETS: Tk. 4,670,958,362

Details of Fixed Assets and Depreciation as at 30th

June 2011 are shown in the Annexure-1.1

This is as follows:

COST:

Cost as at 01.07.2010 4,707,140,866 3,038,036,155

Addition this year 580,617,964 407,238,845

5,287,758,830 3,445,275,000

Less: Sales/Adjustment - 2,193,000

Total Cost as at 30.06.2011 5,287,758,830 3,443,082,000

Accumulated Depreciation as at 01.07.2010 1,317,534,604 1,045,414,256

Less: Adjustments during this year - 582,865

Add: Depreciation for this year 299,619,602 208,472,800

Total Depreciation as at 30.06.2011 1,617,154,206 1,253,304,191


REVALUATION:

Revaluation of Fixed Assets as at 01.07.2010 1,050,477,014 1,121,891,469

Less: Depreciation this year 50,123,276 71,414,455


Total Written Down Value 4,670,958,362 3,240,254,822

Allocation of depreciation charges for the year has been made in the accounts as follows:

Factory Overhead 342,345,509 277,654,839

Administrative Overhead 7,397,369 2,232,416

349,742,878 279,887,255

2.1 CONSOLIDATED CAPITAL WORK-IN-PROGRESS: 52,445,198 -

3.1 CONSOLIDATED PRE-OPERATING EXPENSES: 21,719,065 12,315,103

Preoperating expenses consists of Name registration cost, Market survey cost, Feasibility study cost, consultancy

cost, salary and other.

4.1 CONSOLIDATED TRIAL AND OPERATION LOSS:TK. 14,421,587

Balance as per Last Accounts 18,026,983 22,533,729

Less: Adjustments with current year profit 3,605,397 4,506,746

14,421,587 18,026,983

5.1. CONSOLIDATED INVENTORIES : Tk. This consists of as follows :

i) Raw Materials 1,131,727,289 383,131,379

ii) Stock-in-Transit 1,019,273,167 542,283,911

iii) Work-in-Process 114,312,963 77,078,574

iv) Finished Goods 859,315,250 162,370,057

v) Stores and Accessories 73,136,079 109,721,295

3,197,764,748 1,274,585,216

6.1 CONSOLIDATED ACCOUNTS RECEIVABLE : Tk. 1,934,101,539

MALEK SPINNING MILLS LIMITEDNOTES OF CONSOLIDATED FINANCIAL STATEMENT

AS AT 30TH

JUNE 2011

Amount in Taka

3,197,764,748

Malek Siddiqui Wali


JUNE'11 JUNE'10


AS AT 30TH

JUNE 2011

Amount in Taka

Trade debtors occurred in the ordinary course of business are unsecured but considered good.

i) Malek Spinning Mills Ltd. 777,543,982 629,187,317

ii) Salek Textile Ltd. 807,844,260 511,093,136

iii) JM Fabrics Ltd. 96,815,863 -

iv) Titas Spinning & Denim Co. Ltd. 251,897,434 -

1,934,101,539 1,140,280,454

7.1 CONSOLIDATED INTEREST RECEIVABLE: - 10,315,871 Interest Receivable on IPO share money deposit

8.1 CONSOLIDATED ADVANCE, DEPOSIT AND PRE-PAYMENTS: Tk. 111,816,728 111,816,728 This comprises as follows :

Advance against construction materials, Suppliers & Others 32,570,588 23,150,321

Advance to Employees 5,000 8,000

Advance to Sikder Construction (for Land purchase) 9,000,000 9,000,000

Security Deposit on REB 178,875 178,875

Security Deposit on Titas Gas T&D Co. 17,178,761 9,627,261

Advance against Income Tax Note: 8.1-A 36,867,601 22,523,767

Advance to Fire Insurance Premium Paid 1,860,193 1,366,474

Security Deposit to CDBL 500,000 500,000

Advance to CEGIS(Centre Environment & Geographics) 410,000 250,000

Advance to M/S Maznu Traders(For Land purchase) 73,073 43,308,000

Advance to M/S Maznu Traders(For Land Development) 300,000 -

Advance against Office Rent (Haji Mansur Ali) 7,593,750 -

Security Deposit to United Leasing Co. Ltd. 101,887 -

Security Deposit against LC margin 689,000 -

Advance to Sharif & Brothers(Land Purchase-Ashugonj) 4,488,000 -

Advance to others(Factory building construction) - 100,000

Advance to others(For Land purchase) - 21,433,516

111,816,728 131,446,214

8.1-A. CONSOLIDATED ADVANCE INCOME TAX:


Advance Income Tax paid (Against Export Proceeds) 18,506,618 954,439

Advance Income Tax paid (Against Yearly Income) 10,000,000 13,241,493

Advance Income Tax paid (Against Interest Income) 8,336,983 8,327,835

Advance Income Tax paid (Against Vehicle Fitness) 24,000 -

Total 36,867,601 22,523,767

9.1 CONSOLIDATED CASH AND CASH EQUIVALENTS: Tk. 759,366,510This is made-up of the followings:

A. Cash in Hand at Head Office 786,289 277,490

C. Cash at Banks :

AB Bank Ltd. STD A/C: 4005-767482-430 (MSML) 211,546 211,990,756

Brack Bank STD A/C: 150510 (Deposit with IPO) MSML 1,724,664 11,100,113,776

BRAC Bank (Dividend) A/C: 150120 (MSML) 11,686,208 -

CITI Bank N.A A/C :G010000200622006 (STL) 7,376,963 -

Dhaka Bank Ltd A/C : 207.100.6276 (STL) 2,905,174 3,216,095

Dhaka Bank USD Margin A/C:0032 (STL) 1,012,803 -

Dhaka Bank Ltd A/C : 207.100.6643 (NSL) 2,901,783 34,106,724

Malek Siddiqui Wali


JUNE'11 JUNE'10


AS AT 30TH

JUNE 2011

Amount in Taka

Dhaka Bank Ltd.- Margin Account: (MSML) 285,752,933 12,059,527

Eastern Bank CD A/C: 5745 (NSL) 97,936 99,436

Eastern Bank Ltd. - Margin Account : USD (MSML) 60,735,126 14,534,295

Eastern Bank USD Margin A/C:0311738 (STL) 61,081,406 11,873,515

Eastern Bank CD A/C: 01011060020990 (STL) 294,475 411,259

Eastern Bank FC A/C-(Deposit-NRB IPO) MSML 1,901,570 405,688,085

Eastern Bank STD A/C: BDT (Deposit IPO) MSML 20,333,712 4,853,404,237

HSBC Bank CD A/C: (NSL) 88,386 100,011

HSBC Bank CD A/C:001-007475-011 (MSML) - 7,401,433

HSBC Bank USD Margin A/C: 091 (STL) 33,142,986 2,100,679

HSBC Bank-Margin A/C:091 USD (MSML) 192,108,976 7,538,559

Islami Bank-CD A/C: 010049410(Titas) 10,035,554 -

Islami Bank-Margin A/C: 59(Titas) 1,529,316 -

Islami Bank-FC A/C: 80 (USD)(Titas) 1,363,391 -

One Bank- Margin Account : USD (MSML) 59,246 10,832

Pubali Bank-CD A/C: 3311-901-12209(Titas) 17,848 -

Shahjalal Islami Bank A/C : 11100000252 8 (MSML) 20,448 2,800,074

Trust Bank CD A/C : 0003-0210006613 (MSML) 752,504 4,835,374

Trust Bank Ltd A/C: 0003-0210009816 (STL) 2,544,511 185,052

Trust Bank Ltd - Margin A/C: 5005000431(MSML) 17,760 494,772

Trust Bank Ltd - Margin A/C: 5025000028(STL) 862,559 -

Trust Bank Ltd.- CD A/C: (NSL) 1,852,208 -

Sonali Bank-CD A/C-JM 70,841 -

UCBL- FC Margin-JM 53,184,910 -

UCBL- Banani Branch-JM 2,216,064 -

UCBL- ERQ A/C, Banani Branch-JM 696,413 -

758,580,220 16,672,964,490

759,366,510 16,673,241,980

10.1 CONSOLIDATED SHARE CAPITAL : 1,600,000,000 1,200,000,000

11.1 CONSOLIDATED SHARE PREMIUM:

i) Malek Spinnig Mills Limited 1,500,000,000 900,000,000

It represents 10,00,00,000 ordinary shares of Tk.25 each including premium of Tk.15 each.

12.1 CONSOLIDATED GENERAL RESERVE & SURPLUS : Tk.640,273,871


Balance as per last accounts 423,575,577 440,965,057

Less: Issuance of Bonus Shares 12,498,000 -

Add: Net Profit during this year 200,907,019 236,057,587

611,984,595 677,022,644

Add: Depreciation of Reserve for Revaluation of Fixed Assets. 50,123,276 71,414,455

Less: Declared Cash Dividend 90,000,000 -

Add: P/L Appropriation A/C (Adjustment) 68,166,000 -

640,273,871 748,437,098

13.1 CONSOLIDATED TAX HOLIDAY RESERVE: TK. 117,942,221

Opening Balance 44,837,703 10,608,580.00

Add: Provided during this year 81,227,241 38,032,359

Malek Siddiqui Wali


JUNE'11 JUNE'10


AS AT 30TH

JUNE 2011

Amount in Taka

Less: Minority Interest on Tax Holiday Reserve 8,122,724 3,803,236

Closing Balance 117,942,221 44,837,703

14.1 CONSOLIDATED RESERVE FOR RE-VALUATION OF FIXED ASSETS: Tk. 1,000,353,737

Revaluation of Assets are as follows:

Particulars

Land 337,982,604 337,982,604

Building and Civil Construction 146,872,234 146,872,234

Plant and Machinery 715,978,047 715,978,047

1,200,832,885 1,200,832,885

Less:Depreciation of Reserve for Re-valuation of Fixed Assets 200,479,148 150,355,872

1,000,353,737 1,050,477,013

Note: Detail of Adjustment of Reserve for Re-valuation of Fixed Assets is given in the annexed Annexure-1.1

15.1 SHARE MONEY DEPOSIT : -

Share Money Deposit (IPO) - 16,375,175,584

16.1 MINORITY INTEREST: TK. 17,180,575

Paid-up Capital 13,635,000 13,525,000

Retained Earnings (9,559,116) 11,624,589

Tax Holiday reserve 13,104,691 4,981,967

17,180,575 30,131,556

Note: This represents minority interest of Salek Textile Limited, Newasia Synthetics Limited, J.M. Fabrics Limited and

Titas Spinning & Denim Company Ltd.

17.1 CONSOLIDATED LONG TERM LOAN: Tk.=


i) Eastern Bank Limited 404,487,979 194,348,635

ii) Dhaka Bank Limited 168,938,521 316,488,683

iii) Trust Bank Limited 57,110,218 91,206,475

iv) HSBC 181,000,000 121,500,000

v) Islami Bank-A/C:19009 341,422,010 -

vi) Islami Bank-A/C:32408 37,450,867 -

vii) Islami Bank-A/C:32206 14,715,598 -

viii) Islami Bank-A/C:35411 2,706,395 -

ix) UCBL 108,103,797 -

x) United Leasing Co. Ltd. 2,870,046 -

1,318,805,431 723,543,793

Less: Current Portion of Long Term Loan Note: 19.1 249,384,914 250,601,084

1,069,420,517 472,942,709

18.1 CONSOLIDATED SHORT TERM LOAN: Tk.


A. Import Loan:

Eastern Bank Ltd (MSML) 11,497,591 57,821,988

Eastern Bank Ltd (STL) 99,468,876 45,900,000

Islami Bank Ltd.(Titas) 195,098,171 -

One Bank Ltd (MSML) 5,927,635 26,759,729

Dhaka Bank Ltd (MSML) - 2,129,570

643,841,642

1,069,420,517

Malek Siddiqui Wali


JUNE'11 JUNE'10


AS AT 30TH

JUNE 2011

Amount in Taka

Dhaka Bank Ltd (STL) 89,607,096 35,889,049

401,599,369 168,500,336

B. Overdraft:

Eastern Bank Ltd A/C: 01012050000180 & 11 (MSML) 43,590,214 77,707,741

Eastern Bank Ltd A/C: 01012040000780 (STL) 13,252,147 21,950,129

Eastern Bank Ltd A/C:(JM) 141,016 -

Citi Bank N.A A/C: G010000200622006 (STL) - 18,942,725

CITI Bank N.A A/C: G010000200558006 (MSML) 4,729,677 2,061,074

Dhaka Bank Ltd A/C: 207.175.23 (MSML) 25,300,320 27,462,269

United Commercial Bank Ltd.(J.M.) 46,440,144 -

Islami Bank Ltd. (Titas) 56,681,683 -

One Bank Ltd A/C: 16426 008 (MSML) 19,334,546 18,862,809

HSBC OD A/C :(JM) 1,500,139 -

HSBC OD A/C : 001-007475-011(MSML) 25,667,818 -

HSBC A/C: 001-241389-011 (STL) 5,604,568 32,314,083

242,242,273 199,300,830

643,841,642 367,801,166

19.1 CONSOLIDATED CURRENT PORTION OF LONG TERM LOAN : TK. 249,384,914

Eastern Bank Ltd. 85,342,532 86,558,702

Dhaka Bank Ltd. 95,484,592 95,484,592

HSBC 40,500,000 40,500,000

Trust Bank Ltd. 28,057,790 28,057,790

249,384,914 250,601,084

Note- According to Bangladesh Accounting Standard (BAS) 1 "Preparation of Financial Statements", Current portion of Long Term

Loan that are due for settlement within twelve month after the balance sheet date are current liabilities, therefore, the above

amount has been shown in current liabilities.

20.1 SECURITY DEPOSIT AGAINST SALES: TK. - 6,000,000

21.1 CONSOLIDATED ACCEPTANCE LIABILITIES: TK. 3,082,214,258


A. Raw Materials :

i) Eastern Bank Limited 812,450,646 167,778,630

ii) HSBC 1,225,087,325 106,914,738

iii) Islami Bank Ltd. 100,594,838 -

iv) Trust Bank Ltd - 118,463,295

v) UCBL 99,305,510 -

vi) Dhaka Bank Limited 828,774,819 265,829,068

3,066,213,138 658,985,732

B. Machinery :

i) UCBL 16,001,120 -

ii) Eastern Bank Ltd. - 128,259,961

16,001,120 128,259,961

3,082,214,258 787,245,693

22.1 CONSOLIDATED CREDITORS AND ACCRUALS : TK. 813,518,856


i) Gas Bill Payable 9,950,009 12,704,471

ii) Electricity Bill Payable 137,818 223,516

Malek Siddiqui Wali


JUNE'11 JUNE'10


AS AT 30TH

JUNE 2011

Amount in Taka

ii) Telephone Bill Payable 276 -

iii) Audit Fee Payable 162,500 95,000

iv) Legal Fee Payable 10,000 85,000

v) Office Rent Payable 21,100 163,080

vi) Tax Deduction at Source 942,626 -

vii) VAT Payable 42,512 -

viii) Income Tax Payable 22.1-A 32,061,335 24,039,638

ix) Salary & Wages Payable 21,462,291 8,065,765

x) Contribution to WPPF Payable 80,046,216 58,787,937

xi) Director's Remuneration Payable 708,712 485,000

xii) Security Money of Various Party - 2,491,733

xiii) Accounts Payable for Goods Suppliers & Others 369,605,489 44,063,992

xiv) Accounts Payable for Waste Cotton Purchase 104,195,705 86,386,434

xv) Interest accrued 22.1-B 194,172,268 13,052,367

813,518,856 250,643,933

22.1-A. CONSOLIDATED PROVISION FOR INCOME TAX: Tk. 32,061,335


Balance as per Last Account 24,039,638 31,989,834

Add : Additional Income Tax paid: 6,200,000 -

Add: Provision made for this year Note: 36.1 32,061,335 31,854,745

62,300,973 63,844,579

Less: Payment Current year - 38,160,047

Less: Payment Last year Balance 30,239,638 1,644,894

Total Payment and Adjustment 30,239,638 39,804,941

32,061,335 24,039,638

22.1-B. INTERST ACCRUED: Tk. 194,172,268

Accrued Interst on Import Loan:

One Bank Limited - 872,382

Dhaka Bank Limited - 395,506

Islami Bank Ltd. 26,158,148 -

26,158,148 1,267,889

Accrued Interest on Long Term Loan:

Eastern Bank Limited - 1,077,830

Trust Bank Limited - 2,666,894

Dhaka Bank Limited - 8,039,754

Islami Bank Ltd. 168,014,120 -

168,014,120 11,784,478

194,172,268 13,052,367

23.1 UNCLAIMED DIVIDEND: 10,968,740 -

24.1 CONSOLIDATED LOAN FROM DIRECTOR: 2,522,950 16,173,100

It represents temporary loan taken for day to day expenditure.

25.1 Liabilities for refundable IPO Share money: 14,971,455 -

26.1 CONSOLIDATED SALES:Tk. 6,648,709,202

Malek Siddiqui Wali


JUNE'11 JUNE'10


AS AT 30TH

JUNE 2011

Amount in Taka

Sales comprises of the following :

Export Sales 6,648,709,202 3,439,506,873

6,648,709,202 3,439,506,873

27.1 CONSOLIDATED COST OF GOODS SOLD: Tk. 5,994,995,712

This is as follows :

Raw Material Consumed Note: 27.1-A. 5,552,506,810 2,292,236,956

Direct Expenses Note: 27.1-B. 211,893,329 68,728,982

Factory Overhead Note: 27.1-C. 910,788,893 496,383,769

Total Manufacturing Cost 6,675,189,032 2,857,349,706

Work-in-Process- Opening 80,974,279 72,724,343

Cost of Goods available for use 6,756,163,311 2,930,074,049

Work-in-Process- Closing 114,312,963 77,078,574

Cost of Production 6,641,850,348 2,852,995,475

Finished Goods- Opening 212,460,614 172,238,309

Cost of Goods Available for Sales 6,854,310,962 3,025,233,784

Finished Goods- Closing 859,315,250 162,370,057

Cost of Goods Sold : 5,994,995,712 2,862,863,727

27.1-A. CONSOLIDATED RAW MATERIALS CONSUMED: Tk. 5,552,506,810

Particulars:

Opening Inventory of Raw Materials 417,014,557 374,050,838

Add: Purchase of Raw Materials 6,267,219,543 2,301,317,497

Less: Closing Stock of Raw Materials 1,131,727,289 383,131,379

Raw Materials Consumption : 5,552,506,810 2,292,236,956

27.1-B. CONSOLIDATED DIRECT EXPENSE:Tk.Direct Labour/Wages 210,667,977 68,410,121

Overtime Wages 1,225,352 318,861

211,893,329 68,728,982

27.1-C. CONSOLIDATED FACTORY OVERHEAD: Tk. 910,784,093Factory Salary and Allowances 42,670,631 29,178,230

Electricity Charges 1,969,423 4,028,337

Gas Charges 116,357,699 83,171,888

Agriculture Expenses 20,415 39,994


Packing Materials 54,965,927 44,370,712

Fuel, Oil & Lubricant 17,494,298 12,506,981

Insurance Premium - Fire 10,581,787 3,590,240

Stores & Accessories consump. Note:27.1(C)-i 174,408,775 12,191,255

Entertainment 5,668,693 2,212,083

Telephone, Mobile & Fax 600,075 184,053

Statonery charges 1,248,283 956,437

Printing Charges 326,714 564,024

Other Carrying Charges 5,373,813 106,171

Other Overhead Expenses 13,904,033 105,829

Sub-contract Expenses 50,033,256 -

C&F agent commission 3,060,079 -

Lab test & Inspection charges 1,326,049 -

Rent, Rates & Taxes 51,250 -

Vehicles Maintenance 2,122,399 1,841,078

211,893,329

Malek Siddiqui Wali


JUNE'11 JUNE'10


AS AT 30TH

JUNE 2011

Amount in Taka


Miscellaneous 123,045 22,385

Conveyance 3,328,739 59,452

House Rent for Worker Shed 443,950 357,650

Depreciation Note: 1.1 342,345,509 277,654,839

910,784,093 496,383,766

27.1(C )-i. CONSOLIDATED CONSUMPTION OF STORES AND ACCESSORIES: Tk. 174,408,775

Opening Stock of Stores and Accessories 109,721,295 101,410,318

Add: Purchase during the year 137,823,559 20,502,232

Less: Closing Stock of Stores and Accessories 73,136,079 109,721,295

Stores and Accessories Consumed 174,408,775 12,191,255

28.1 CONSOLIDATED OPERATING EXPENSES : Tk. 88,082,946


Salaries & Allowances 19,442,363 11,913,155

Festival Bonus 2,454,079 953,847

Director's Remuneration 9,300,000 6,305,000

Fees, Forms & Others 1,448,528 679,755

Audit Fees 202,500 95,000

Legal Fees 90,500 85,000

Printing & Stationary 3,294,111 936,254

Telephone,Mobile & Internet Expenses 1,497,103 1,165,840

Postage & Stamp 213,943 34,984

Vehicle Maintenance 3,603,495 3,328,929

Miscellaneous Expenses 6,710,835 2,936,393

Office Rent 2,431,644 326,160

Rates & Taxes 324,000 742,846

Carriage Outward, C&F & Sample charges 6,078,687 6,060,880

Consultancy Fees - 423,347

Travelling & Conveyance 1,681,521 896,207

Entertainment 858,956 263,880

Office Expenses 12,165 355,838

Fuel for Head Office Generator 1,170,071 669,700

Advertisement/ Publicity Expenses 27,480 31,920

Security Charges 276,527 -

Gardening Expenses 13,409 73,579

Uniform / Livery Security 58,190 262,402

Repairs & Maintenance and IPO Exp. 19,442,880 1,176,874

Books and periodicals - 3,409


Software Maintenance Expenditure 20,000 762,200

Credit Rating Charges - 300,000

Depreciation Note: 1.1 7,397,369 2,232,416

88,082,946 43,079,955

29.1 CONSOLIDATED FINANCIAL EXPENSES : Tk. 297,231,447


i. EASTERN BANK LTD.:

Interest on Long Term Loan 19,584,471 28,761,337




Malek Siddiqui Wali


JUNE'11 JUNE'10


AS AT 30TH

JUNE 2011

Amount in Taka

Export L/C Negotiation Commission 1,198,515 1,406,437


TOTAL 85,709,779 68,394,801

ii. HSBC:




Bank Charges & Commission 560,978 1,033,746



TOTAL 28,256,580 30,819,736

iii. DHAKA BANK LTD. :







TOTAL 66,188,674 59,845,939

iv. ONE BANK LTD. :


Interest on Short Term Loan - 712,833


Bank Charges & Commission - 85,336



TOTAL 4,917,038 8,986,336

v. TRUST BANK LTD. :





Interest on Bill Discount 464,563 2,027,677

TOTAL 2,275,053 6,434,441

vi. SHAHJALAL ISLAMI BANK LTD. :




Interest on Bill Discount - 217,771

TOTAL 1,958 5,523,316

vii. CITIBANK NA :





Bank Charges & Commission 1,154,558 226,085

Interest on Bill Discount - 5,317,079

Malek Siddiqui Wali


JUNE'11 JUNE'10


AS AT 30TH

JUNE 2011

Amount in Taka

TOTAL 1,586,942 30,790,317

viii. IPDC:

Interest on Term Loan - 2,768,780

TOTAL - 2,768,780

ix. Islami Bank:

Interest on Long Term Loan 59,955,178 -

Interest on Short Term Loan 29,185,907 -

Bank Charges & Commission 2,634,427 -

Export Bill Negotiation Commission 8,938,804 -

100,714,316 -

x. UNITED LEASING COMPANY:

Interest on Lease Finance 36,933 142,727

TOTAL 36,933 142,727

xi. AB BANK LTD :


TOTAL 12,156 11,236

xii. BRAC BANK LTD

Bank Charges and Commission 16,506 -

16,506 -

xiii. Sonali Bank:


Interest on Bill Discount 1,240,557 -

4,702,036 -

xiv.Prime Bank:

Bank Charges and Commission 1,175 -

1,175 -

xv. UCBL:

Interest on Overdraft 899,720 -

Interest on Term Loan 22,541 -

Interest on Bill Discount 470,129 -


2,812,301 -

297,231,447 213,717,629

30.1 AMORTIZATION OF TRIAL AND OPERATION EXPENSES: 3,605,397 4,506,746

31.1 LOSS ON SALE OF FIXED ASSETS : Tk.

Written down value of Cars : - 1,610,135

Sale Price - 1,112,300

Total Loss on Sale of Fixed Assets : - 497,835

-

Malek Siddiqui Wali


JUNE'11 JUNE'10


AS AT 30TH

JUNE 2011

Amount in Taka

32.1 CONSOLIDATED OTHER INCOME: Tk.

Interest Income from FDR A/C with Eastern Bank Ltd. - 2,218,536

Interest Income from FDR A/C with Dhaka Bank Ltd. - 947,222

Interest Received from Dividend A/C with BRAC Bank Ltd. 791,593 -

Interest Income from STD A/C with AB Bank Ltd. 1,783,517 35,142,628

Interest Income from STD A/C witth BRAC Bank Ltd. 54,851,711 33,507,885

Interest Income from STD A/C witth Eastern Bank Ltd. 25,938,071 11,462,079

Interest Received from CD A/C- Dutch-Bangla Bank Ltd 4,942 -

83,369,833 83,278,349

33.1 CONSOLIDATED OTHER EXPENSES: Tk.AGM Expenses 3,412,659 -

Advertisment & Publicity Expenses 564,460 67,064,623

3,977,119 67,064,623

Provision for Contribution to WPPF(MSML) 6,581,282 9,897,072

Provision for Contribution to WPPF(STL) 13,537,874 6,338,727

Provision for Contribution to WPPF(JM) 1,139,123 -

21,258,279 16,235,799

35.1. CONSOLIDATED INCOME TAX PROVISION : Tk. 32,061,335

On operating Income 10%,15% 10,227,844 25,774,598

On other Income 27.5%, 37.5% 21,833,491 6,080,147

TOTAL 32,061,335 31,854,745

36.1 CONSOLIDATED BASIC EARNINGS PER SHARE (EPS): 1.72

This is as follows:

(a) Consolidated Net Profit. 274,011,536 282,964,163

(b) Number of Total Share (Weighted Avg.) 159,342,466 103,561,644

Basic Earnings per Share (EPS) a/b 1.72 2.73

(26,077,984)

79,392,714

3,977,119

53,314,731

83,369,833

34.1 CONSOLIDATED PROVISION FOR WORKER'S PROFIT PARTICIPATION FUND:

Malek Siddiqui Wali


ANNEXURE : 1.1

AS ON 01.07.2010 ADDITION ADJUSTMENT AS ON 30.06.2011 AS ON 01.07.2010 THIS YEAR ADJUSTMENTS AS ON 30.06.2011

A. Malek Spinning Mills Ltd., Salek Textile, Newasia Synthetics Ltd., Titas Spinning & Denim Co. Ltd & JM Fabrics Ltd.

1 Land and Land Development 280,777,931 329,016,502 - 609,794,433 - - - - 609,794,433

2 Factory Building 798,534,940 119,292,752 - 917,827,692 5% 225,659,097 34,608,430 - 260,267,526 657,560,166

3 Plant and Machinery 3,205,065,928 87,246,561 - 3,292,312,489 10% 935,231,132 224,041,370 - 1,159,272,502 2,133,039,987

4 Lease Assets(Plant and Machinery) 12,753,116 - - 12,753,116 10% 2,423,092 1,033,002 - 3,456,094 9,297,022

5 Electrical Installation 114,225,098 264,802 - 114,489,900 10%,15% 40,660,103 10,667,942 - 51,328,045 63,161,855

6 Tubewell and Water Pump 9,610,308 575,000 - 10,185,308 10%,15% 2,915,838 981,476 - 3,897,313 6,287,995

7 Furniture and Fixtures 10,233,143 1,905,228 - 12,138,371 10% 1,670,118 1,018,550 - 2,688,667 9,449,704

8 Office Equipments 10,257,374 3,289,218 - 13,546,592 15% 3,897,127 1,383,070 - 5,280,197 8,266,395

9 Gas Line Installation 19,007,896 6,124,750 - 25,132,645 15% 4,980,191 3,022,868 - 8,003,059 17,129,586

10 Loose Tools and Equipment 11,573,415 935,337 - 12,508,752 15% 1,640,994 1,106,012 - 2,747,007 9,761,745

11 Motor Vehicle 24,538,107 31,934,500 - 56,472,607 15% 10,572,598 4,975,360 - 15,547,958 40,924,649

12 Telephone (PABX) Installation 445,104 - - 445,104 15% 328,016 17,563 - 345,579 99,525

13 Crockaries and Cutlaries 50,777 33,314 - 84,091 15% 31,932 7,824 - 39,756 44,335

14 Generator 209,814,629 - - 209,814,629 15% 87,365,177 16,742,049 - 104,107,226 105,707,403

15 Fire Installation 253,100 - - 253,100 15% 159,191 14,086 - 173,277 79,823

Total of "A" 4,707,140,866 580,617,964 - 5,287,758,830 1,317,534,604 299,619,602 - 1,617,154,206 3,670,604,624

ANNEXURE : 1.1

As on 01.07.2010 ADDITION ADJUSTMENT As on 30.06.2011 As on 01.07.2010 THIS YEAR ADJUSTMENT As on 30.06.2011

B. REVALUATION OF FIXED ASSETS :

1 Land 337,982,604 - - 337,982,604 - - - - - 337,982,604

2 Building & Civil Construction 146,872,234 - - 146,872,234 5% 14,320,043 6,627,610 - 20,947,652 125,924,582

3 Machineries 715,978,047 - - 715,978,047 10% 136,035,829 43,495,666 - 179,531,495 536,446,552

Total of "B" 1,200,832,885 1,200,832,885 - 150,355,872 50,123,276 - 200,479,148 1,000,353,738

GRAND TOTAL ( A+B ) 5,907,973,751 580,617,964 - 6,488,591,715 1,467,890,476 349,742,878 - 1,817,633,354 4,670,958,361

Depreciation Charges to:

Factory Overhead 342,345,509

Operating Expenses 7,397,369

Tk. 349,742,878

MALEK SPINNING MILLS LIMITED AND ITS SUBSIDIARIES


CONSOLIDATED FIXED ASSETS SCHEDULE AS ON 30TH

JUNE 2011

COSTRATE

DEPRECIATION WRITTEN DOWN

VALUE AS ON

30.06.2011

SL

CONSOLIDATED REVALUATED ASSETS SCHEDULE AS ON 30TH

JUNE 2011

COST

RATE

DEPRECIATION WRITTEN DOWN

VALUE AS ON

30.06.2011

PARTICULARS

PARTICULARSSL

Malek Siddiqui Wali


JUNE'11 JUNE'10

Taka Taka

ASSETS :

Non-Current Assets: 1,230,559,586 1,347,457,694

Property, Plant and Equipment 1,216,138,000 1,329,430,711

Trial and Operation Loss 14,421,587 18,026,983

Current Assets : 2,015,314,380 966,507,682

Inventories 1,088,693,730 430,437,038

Advance, Deposit and Pre-Payments 9,535,514 7,170,910

Accounts Rceivable 807,844,260 511,093,136

Cash and Cash Equivalents 109,240,877 17,806,598

TOTAL ASSETS : 3,245,873,966 2,313,965,376


Shareholder's Equity : 536,723,039 265,965,568

Share Capital 99,900,000 99,900,000

General Reserve and Surplus 305,776,127 116,245,897

Tax Holiday Reserve 131,046,912 49,819,671

Share Money deposit 189,926,900 189,926,900

Non-Current Liabilities:

Long Term Loan 204,306,892 472,942,709

Current Liabilities : 2,314,917,135 1,385,130,200

Short Term Loan 207,932,688 154,995,987

Advance from Malek Spinning Mills Ltd 654,564,475 464,176,844

Current Portion of Long Term Loan 249,384,914 250,601,084

Acceptance Liabilities 820,665,448 354,670,656

Creditors and Accruals 382,369,610 144,512,529

Loan from Director - 16,173,100


Net Assets Value Per Share (NAV) 537.26 266.23

Par Value Tk.100






SALEK TEXTILE LIMITEDBALANCE SHEET

AS AT 30TH

JUNE 2011

Malek Siddiqui Wali


JUNE'11 JUNE'10

Taka Taka

Sales 2,142,516,143 1,460,682,499

Cost of Goods Sold 1,736,228,572 1,169,976,733

Gross Profit : 406,287,571 290,705,766

Operating Expenses 9,815,998 8,359,871

Financial Expenses 108,570,832 144,725,892

Amortization of Trial and Operation Loss 3,605,397 4,506,746


Provision for Contribution to WPPF 13,537,874 6,338,727


Provision for Income Tax : - -


Transferred to Tax Holiday Reserve 81,227,241 38,032,359


(Transferred to the statement of Changes in Equity.)

Earnings per Share (EPS) 271.03 126.90

Par Value Tk.100






SALEK TEXTILE LIMITEDINCOME STATEMENT


JUNE 2011

Malek Siddiqui Wali


JUNE'11 JUNE'10

Taka Taka


Collection from Turnover & Bills Receivable 1,845,765,019 1,126,592,781



Payment for Income Tax - -


Net Cash Provided by Operating Activities 149,478,336 (48,861,668)


Acquisation of Fixed Assets (12,978,698) (195,456,165)

Acquisition of Capital work in progress - -



Advance, Deposits and Pre-payments (2,364,604) (3,798,401)

Bank Loan Received/(Repayment) (216,915,286) (64,280,912)

Loan from Directors (16,173,100) -

Advance from Malek Spinning Mills Ltd. 190,387,631 319,599,980

Net cash provided by Financing Activities (45,065,360) 251,520,667

Increase/(Decrease) in Cash and Cash Equivalents 91,434,279 7,202,834

Cash and Cash Equivalents at 1st July 2010 17,806,598 10,603,763


June 2011 109,240,877 17,806,598

Net Operating Cash Flow Per Share (NOCFPS) 149.63 (48.91)

Par Value Tk.100






SALEK TEXTILE LIMITEDCASH FLOW STATEMENT


JUNE 2011

Malek Siddiqui Wali


Particulars Share Capital Tax Holiday

Reserve

Retained

Earnings Total

Balance as at July 01, 2010 99,900,000 49,819,670 116,245,897 265,965,568

Issuance of Shares Capital - - - -

Net Profit during this Period - 189,530,230 189,530,230

Tax Holiday Reserve - 81,227,241 - 81,227,241

As on 30th

June 2011 99,900,000 131,046,912 305,776,127 536,723,039


Reserve

Retained

Earnings Total

Balance as at July 1, 2009 99,900,000 11,787,311 27,503,725 139,191,036


Net Profit during this Period - 88,742,172 88,742,172

Tax Holiday Reserve - 38,032,359 - 38,032,359

As on 30th

June 2010 99,900,000 49,819,670 116,245,897 265,965,568







JUNE 2010

SALEK TEXTILE LIMITED



JUNE 2011

Malek Siddiqui Wali


JUNE'11 JUNE'10

Taka Taka

ASSETS :

Non-Current Assets : 395,058,820 159,681,203

Pre-Operating Expenses 21,719,065 12,315,103

Capital Work in Progress - -

Property Plant & Equipment 373,339,755 147,366,100

Current Assets : 12,523,886 99,475,177



TOTAL ASSETS : 407,582,706 259,156,380



Share Capital 93,715,000 93,715,000

Share Money Deposit 10,000,000 10,000,000

Current Liabilities : 303,867,706 155,441,380

Advance from Malek Spinning Mills Ltd. 303,790,823 154,470,423

Creditors & Accruals 76,883 970,957

TOTAL SHAREHOLDER'S EQUITY AND LIABILITIES : 407,582,706 259,156,380

Net Assets Value Per Share (NAV) 111 111

Par Value Tk.100

sd/- sd/- sd/- sd/-Dr. Shamim Matin Chowdhury A.Matin Chowdhury B.K. Chaki Syed Saiful Haque



sd/-Dhaka (Malek Siddiqui Wali)


NEWASIA SYNTHETICS LIMITEDBALANCE SHEET

AS AT 30TH

JUNE 2011

Malek Siddiqui Wali


JUNE'11 JUNE'10

Taka Taka


Net Cash Provided by Operating Activities - -


Acqusition of Fixed Assets (225,973,655) (55,280,300)

Acquisition of Capital work in progress -

Pre-operating Expenses (10,298,036) (7,923,430)

Net Cash used in Investing Activities (236,271,691) (63,203,730)


Advance, deposits and pre-payments 57,507,943 (64,891,516)

Issuance Share Capital - 93,500,000

Share Money Deposit - (90,000,000)

Advance from Malek Spinning Mills Ltd 149,320,400 153,654,412

Net Cash provided by Financing Activities 206,828,343 92,262,896

Increase/(Decrease) in Cash and Cash Equivalents (29,443,348) 29,059,166



June 2011 4,940,313 34,383,661






NEWASIA SYNTHETICS LIMITEDCASH FLOW STATEMENT


JUNE 2011

Malek Siddiqui Wali


Particulars Share Capital Share Money

Deposit

Balance as on 1st July 2010 93,715,000 10,000,000 103,715,000

Share Money Deposit - -

Isuance of Share Capital - -

As on 30th June 2011 93,715,000 10,000,000 103,715,000

Particulars Share Capital Share Money

Deposit

Balance as on July 01, 2009 215,000 100,000,000 100,215,000

Share Money Deposit (90,000,000) (90,000,000)


As on 30th June 2010 93,715,000 10,000,000 103,715,000






NEWASIA SYNTHETICS LIMITEDSTATEMENT OF CHANGES IN EQUITY


JUNE 2011

Total


JUNE 2010

Total

JUNE'11 JUNE'10

Taka Taka

ASSETS :

Non-Current Assets: 831,265,857 711,102,378

Property, Plant and Equipment 778,820,659 524,646,648

Capital Work-in-Progress 52,445,198 186,455,730

Current Assets : 289,223,678 123,527,453

Inventories 117,124,084 25,734,056




TOTAL ASSETS : 1,120,489,535 834,629,831



Share Capital 62,500,000 50,000,000

General Reserve and Surplus 20,441,268 12,552,818

Share Money deposit 308,750,000 264,000,000


Long Term Loan 353,103,797 389,207,420


Short Term Loan 48,081,299 43,757,206

Advance from Malek Spinning Mills Ltd. 159,941,728 -

Acceptance Liabilities 115,306,630 51,760,462


TOTAL SHAREHOLDER'S EQUITY AND LIABILITIES : 1,120,489,535 834,629,831

Net Assets Value Per Share (NAV) 144.07 125.11 Par Value Tk.100

sd/- sd/- sd/- sd/- A.Matin Chowdhury Azizur R.Chowdhury B.K.Chaki Syed Saiful Haque

Chairman Managing Director Chief Financial Officer Company Secretary


sd/-Dhaka Dus Chowdhury Dutta & Co.


J.M. FABRICS LIMITEDBALANCE SHEET

AS AT 30TH

JUNE 2011

JUNE'11 JUNE'10

Taka Taka

Sales 622,914,863 335,256,371

Cost of Goods Sold 583,972,774 306,224,158

Gross Profit : 38,942,089 29,032,213



Loss on Sale of Assets - 364,167


Add: Other Income 4,942 12,191


Provision for Contribution to WPPF 1,139,123 -


Income Tax : 2,394,018 703,067


Less: Transferred to Tax Holiday Reserve - -



Earnings per Share (EPS) 35.42 11.26

Par Value Tk.100

sd/- sd/- sd/- sd/-A.Matin Chowdhury Azizur R.Chowdhury B.K. Chaki Syed Saiful Haque





J.M. FABRICS LIMITEDINCOME STATEMENT


JUNE 2011

JUNE'11 JUNE'10

Taka Taka


Collection from Turnover & Bills Receivable 596,881,653 264,473,718

Payment for Raw Materials, Indirect Materials and other expenses (527,275,778) (255,229,735)

Collection from other income 4,942 -





Acquisition of Fixed Assets (314,776,301) -

Disposal of Capital work in progress 134,010,532 (186,455,730)

Net cash used in investing activities (180,765,769) (186,455,730)


Advance, Deposits and Pre-payments (14,992,854) (1,831,926)

Bank Loan Received/(Repayment) (31,779,530) 50,631,007

Loan from Directors - -

Share money deposit 44,750,000 164,000,000


Net cash provided by Financing Activities 157,919,344 212,799,081

Increase/(Decrease) in Cash and Cash Equivalents 33,280,133 9,982,662



June 2011 56,743,227 23,463,094

Net Operating Cash Flow Per Share (NOCFPS) 97.50 (32.72)

Par Value Tk.100






J.M. FABRICS LIMITEDCASH FLOW STATEMENT


JUNE 2011


Reserve

Retained

Earnings Total

Balance as at July 01, 2010 50,000,000 12,552,818 62,552,818


Issuance of Bonus Shares 12,500,000 (12,500,000) -

Net Profit/(Loss) during this period - 20,388,450 20,388,450

Tax Holiday Reserve - - - -

As on 30th

June 2011 62,500,000 - 20,441,268 82,941,268


Reserve

Retained

Earnings Total

Balance as at July 1, 2009 50,000,000 6,924,679 56,924,679


Net Profit during this period - 5,628,139 5,628,139

Tax Holiday Reserve - - -

As on 30th

June 2010 50,000,000 - 12,552,818 62,552,818







JUNE 2010

J.M. FABRICS LIMITED

STATEMENT IN CHANGES IN EQUITY


JUNE 2011

JUNE'11 JUNE'10

Taka Taka

ASSETS :

Non-Current Assets: 616,519,979 675,181,806

Property, Plant and Equipment 616,519,979 675,181,806

Capital Work-in-Progress - -

Current Assets : 328,779,563 207,163,892

Inventories 59,172,721 62,135,384




TOTAL ASSETS : 945,299,542 882,345,698


Shareholder's Equity : (400,400,028) (373,902,591)

Share Capital 1,000,000 1,000,000

General Reserve and Surplus (401,400,028) (374,902,591)

Tax Holiday Reserve - -

Share Money deposit 94,200,000 -


Long Term Loan 396,294,870 726,828,812


Short Term Loan 251,779,854 229,810,287

Advance From Malek Spinning Mills Ltd 246,500,000 -

Acceptance Liabilities 100,594,838 -


Loan from Directors 2,522,950 171,067,153

TOTAL SHAREHOLDER'S EQUITY AND LIABILITIES : 945,299,542 882,345,698

Net Assets Value Per Share (NAV) (40,040) (37,390)

Par Value Tk.100




sd/-Dhaka K.M. ALAM & CO.


TITAS SPINNING & DENIM COMPANY LTD.BALANCE SHEET

AS AT 30TH

JUNE 2011

JUNE'11 JUNE'10

Taka Taka

Sales 374,172,394 323,701,421

Cost of Goods Sold 365,177,766 328,190,086

Gross Profit : 8,994,628 (4,488,665)



Loss on Sale of Assets - -

Operating Profit : (102,237,437) (97,024,868)

Add: Other Income - -

Net Operating Profit : (102,237,437) (97,024,868)

Provision for Contribution to WPPF - -

Profit before Tax : (102,237,437) (97,024,868)

Provision for Income Tax : - -

Net Profit for this period (102,237,437) (97,024,868)

Less: Transferred to Tax Holiday Reserve - -

Net Profit Balance (102,237,437) (97,024,868)


Earnings per Share (EPS) (10,223.74) (9,702.49)

Par Value Tk.100






TITAS SPINNING & DENIM COMPANY LTD.INCOME STATEMENT


JUNE 2011

JUNE'11 JUNE'10

Taka Taka


Collection from Turnover & Bills Receivable 241,157,177 261,863,832

Payment for Raw Materials, Indirect Materials and other expenses (76,206,401) (243,699,431)





Acquisation of Fixed Assets (1,841,253) (44,196,207)

Disposal of Fixed Assets - -

Acquisition of Capital work in progress - -

Net cash used in investing activities (1,841,253) (44,196,207)


Advance, Deposits and Pre-payments 14,047,619 (13,880,622)

Bank Loan Received/(Repayment) (232,824,375) 119,393,826

Loan from Directors (168,544,203) 15,129,954

Share money deposit 94,200,000 -


Net cash provided by financing activities (46,620,959) 120,643,158

Increase/(Decrease) in cash and cash equivalents 5,610,736 2,465,045



June 2011 12,957,398 7,346,662

Net Operating Cash Flow Per Share (NOCFPS) 5,407.29 (7,398.19)

Par Value Tk.100






TITAS SPINNING & DENIM COMPANY LTD.

CASH FLOW STATEMENT


JUNE 2011

Page- 4


Reserve

Retained

Earnings Total

Balance as on 1st July 2010 1,000,000 (374,902,591) (373,902,591)


Profit & Loss appropriation A/c

(Adjustment) 75,740,000

Net Profit/(Loss) during this Period - (102,237,437) (102,237,437)

Tax Holiday Reserve - - - -

As on 30th

June 2011 1,000,000 - (401,400,028) (476,140,027)


Reserve

Retained

Earnings Total

Balance as on 1st July 2009 1,000,000 (277,877,723) (276,877,723)


Net Profit during this Period - (97,024,868) (97,024,868)

Tax Holiday Reserve - - -

As on 30th

June 2010 1,000,000 - (374,902,591) (373,902,591)







JUNE 2010

TITAS SPINNING & DENIM COMPANY LTD.



JUNE 2011

Notes JUNE'11 JUNE'10 - New Asia Group · · 2012-05-23Notes JUNE'11 JUNE'10 Taka Taka ... Titas Spinning & Denim Company Ltd. ... open - end yarn per annum. As per decision of

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