APPOLLO ISPAT COMPLEX LIMITED Statement of … · Cost Depreciation Written Down ... the carrying amount of assets or liabilities affected in future periods. ... 1994 and the Bangladesh

30th Sep' 2017

3 30th June' 2017

Application of Funds

Non-Current Assets 4,860,781,776 4,811,878,401

Property, Plant and Equipment 3.00 2,862,069,376 2,884,022,386

Capital Work-in-process 4.00 1,998,712,400 1,927,856,015

Investment 5.00 100,381,538 100,381,538

Current Assets 7,636,958,316 7,588,072,483

Inventories 6.00 1,885,552,166 2,073,061,052

Trade & Other Receivables 7.00 2,964,350,668 2,933,494,369

Advances, Deposits and Prepayments 8.00 2,757,213,203 2,561,727,721

Cash and Cash Equivalent 9.00 29,842,278 19,789,340

TOTAL ASSETS 12,598,121,629 12,500,332,422

Source of Funds:

Shareholders Equity 7,872,335,029 7,845,909,815

Share Capital 10.00 3,542,000,000 3,542,000,000

Share Premium 11.00 1,200,000,000 1,200,000,000

Revaluation Surplus 12.00 1,141,578,189 1,141,578,189

Retained Earnings 13.00 1,988,756,840 1,962,331,626

Non-Current Liabilities 978,474,250 1,064,368,064

Long Term Borrowings 14.00 889,878,204 992,428,084

Long Term Liabilities for Deferred Taxes 20.00 88,596,046 71,939,980

Current Liabilities 3,747,312,350 3,590,054,543

Short Term Borrowings 15.00 2,064,756,653 1,914,143,972

Bank Overdraft 16.00 267,630,104 284,054,401

Current Portion of Long Term Borrow 14.00 755,337,329 802,396,307

Liabilities for Expenses 17.00 102,760,705 55,858,170

Trade & Other Payables 18.00 15,883,080 16,368,582

Provision for Income Tax 19.00 384,925,714 370,565,287

Other Provisions 21.00 156,018,765 146,667,825

TOTAL EQUITY AND LIABILITIES 12,598,121,629 12,500,332,422

CONTINGENT LIABILITIES & COMMITMENT

Net Asset Value (NAV) 30.00 22.23 22.15

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Chief Financial Officer Chairman

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Company secretary

Dated: 11th November, 2017

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Director

APPOLLO ISPAT COMPLEX LIMITED

Statement of Financial Position

As on 30 Sep' 2017

Amount in TakaNotesParticulars

The accounting policies and other notes from 01 to 34 form an integral part of the

Financial Statements. The Financial Statements were authorized for issue by the

Board of Directors on 11.11.2017 and signed on its behalf by :

Managing Director

1

Net Turnover 22.00 1,247,664,353 1,761,298,970 5,714,343,956

Cost of Sales 23.00 (1,017,499,350) (1,332,071,619) (4,603,973,529)

A.Gross Profit 230,165,003 429,227,351 1,110,370,427

Operating Expenses:

Administrative Expenses 24.00 (32,533,190) (32,520,162) (134,903,485)

Selling and Distribution Expenses 25.00 (15,818,722) (8,307,831) (44,716,524)

B.Total Operating Expenses (48,351,913) (40,827,992) (179,620,010)

C.Profit from Operating Activities (A-B) 181,813,090 388,399,359 930,750,417

Financial Expenses 26.00 (148,581,763) (119,941,510) (420,600,360)

Net Profit from Operation 33,231,328 268,457,849 510,150,058

Non Operating Income 27.00 28,496,401 31,003,037 169,844,209

Profit before Gratuity and WPPF Fund 61,727,729 299,460,886 679,994,267

Provision For Gratuity 21.01 (1,262,774) (4,851,713) (7,571,303)

Provision for Workers Profit Participation Fund (WPPF) 21.02 (3,023,248) (14,730,459) (33,621,148)

Profit Before Income Tax 57,441,707 279,878,714 638,801,815

Taxation (Expenses)/Income 28.00 (31,016,492) (63,297,358) (160,076,486)

Net Profit after Tax 26,425,214 216,581,356 478,725,329

7.87%

Basic Earning per share (Taka) 29.00 0.07 0.67 1.35

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Chief Financial Officer Chairman

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Company secretary Director


30th June 2017

These financial statements should be read in conjunction with the annexed notes from 1 to 34

Notes July'16 to Sep'16

Managing Director

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Statement of Profit or Loss and Other Comprehensive Income

For the Period of ended 30th September 2017

Amount in Taka

July'17 to Sep'17Particulars

2

Cash Flow from Operating Activities:

Cash receipts from customers and others 1,216,808,055 1,879,607,421 5,206,004,600

Cash receipts from others income 28,496,401 31,003,037 169,844,209

Cash payments for suppliers, employees and others (997,615,815) (1,841,152,399) (5,258,719,061)

A) Net Cash used in Operating Activities 247,688,641 69,458,059 117,129,749

Cash Flow from Investing Activities:

Purchase of property, plant and equipment (2,610,974) (69,787,819) (34,515,380)

Capital Work in Process (70,856,385) (23,521,663) (114,406,285)

B) Net Cash used in Investing Activities (73,467,359) (93,309,482) (148,921,665)

Cash Flow from Financing Activities:

Dividend Paid (166,107) - (135,839,966)

Borrowing Costs/Finance Costs (148,581,763) (119,941,510) (420,600,360)

Increase/(Decrease) in bank overdraft (16,424,297) 19,191,580 85,300,293

Increase/(Decrease) in short term borrowings 150,612,680 240,534,263 866,804,308

Increase/(Decrease) in long term borrowings (149,608,858) (101,532,333) (363,818,002)

C) Net Cash Flow from Financing Activities (164,168,344) 38,252,000 31,846,274

Net increase in Cash and Bank Balances (A+B+C) 10,052,938 14,400,577 54,358

Cash and Bank balances at beginning of period 19,789,340 19,734,983 19,734,982

Cash and Bank Balances at end of Period 29,842,278 34,135,560 19,789,340

Net Operating Cash Flows per share-NOCFPS 0.70 0.22 0.33


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Chief Financial Officer Managing Director Chairman

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July'17 to Sep' 17

Amounts in Taka

July'16 to sep'16Particulars

30th June' 2017


Statement of Cash Flows

For the Period of ended 30th September, 2017

3

Particulars Revaluation Reserve Total Equity

Balance as at 01-07-2016 3,220,000,000 1,200,000,000 1,966,606,296 1,141,578,189 7,528,184,485

Net Profit after Tax 216,581,356 216,581,356

Increased in Paid up capital

Adjustment of Dividend

Less:ReversalTax benefit on Unabsorbed

Closing Balance (30-09-2016) 3,220,000,000 1,200,000,000 2,183,187,652 1,141,578,189 7,744,765,841

Balance as at 01-07-2017 3,542,000,000 1,200,000,000 1,962,331,626 1,141,578,189 7,845,909,815

Net Profit after Tax 26,425,214 26,425,214

Increased in Paid up capital

Adjustment of Dividend

Less:ReversalTax benefit on Unabsorbed

Closing Balance (30-09-2017) 3,542,000,000 1,200,000,000 1,988,756,840 1,141,578,189 7,872,335,029


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Chief Financial Officer

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Statement of Changes In EquityAs on 30 Sep' 2017

Managing Director

Share Capital Share premium Retained Earnings

Chairman

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4

Balance as on

01.07.2017 Addition Revaluation Disposal

Total Cost as at

30.09.2017

Rate

%

Balance as on

01.07.2017

Charge

During the

Period

Disposal Accumulated Dep.

as on 30.07.2017

Land and Land Development 1,630,328,144 - - - 1,630,328,144 - - - - - 1,630,328,144

Land and Land Development (NOF) 273,745,870 - - - 273,745,870 0% - - - - 273,745,870

Plant and Machinery 1,972,361,127 2,471,999 - - 1,974,833,126 10% 1,435,167,662 13,491,637 - 1,448,659,298 526,173,828

Factory Building 673,006,888 - - - 673,006,888 10% 415,727,961 6,431,973 - 422,159,934 250,846,954

Office Building 61,416,480 - - - 61,416,480 10% 38,295,709 578,019 - 38,873,728 22,542,752

Office Building (Rangs Bhaban) 16,000,000 - - - 16,000,000 10% 16,000,000 - - 16,000,000 -

Factory Office Equipment 1,766,910 - - - 1,766,910 10% 1,098,677 16,706 - 1,115,383 651,527

Gas Generator 43,682,397 - - - 43,682,397 10% 23,696,550 499,646 - 24,196,196 19,486,201

Water Installation 6,781,951 - - - 6,781,951 10% 4,765,146 50,420 - 4,815,567 1,966,384

Telephone Installation 4,657,549 5,200 - - 4,662,749 10% 2,659,745 50,075 - 2,709,820 1,952,929

Gas Installation 4,658,425 - - - 4,658,425 10% 3,212,537 36,147 - 3,248,684 1,409,741

Electric Installation 153,072,325 - - - 153,072,325 10% 49,698,714 2,584,340 - 52,283,054 100,789,271

Vehicle and Transport 25,768,850 - - - 25,768,850 10% 12,432,242 333,415 - 12,765,657 13,003,193

Tools and Equipment 15,485,011 - - 15,485,011 10% 9,639,906 146,128 - 9,786,034 5,698,977

Office Equipment 5,872,932 49,825 - - 5,922,757 10% 2,837,084 77,142 - 2,914,226 3,008,531

Furniture and Fixture 6,580,615 - - - 6,580,615 10% 4,523,345 51,432 - 4,574,776 2,005,839

Air Condition 11,094,945 - - - 11,094,945 10% 4,394,586 167,509 - 4,562,095 6,532,850

Other Assets 4,573,384 83,950 - - 4,657,334 10% 2,681,553 49,395 - 2,730,948 1,926,386

- 4,910,853,803 2,610,974 - - 4,913,464,777 2,026,831,417 24,563,984 - 2,051,395,401 2,862,069,376

A) Allocation of Depreciation

Factory overhead 23,335,784

Administrative overhead 1,228,199

24,563,984


Schedule of Property, Plant and Equipments

As at 30 Sep' 2017

Category of Assets

Cost Depreciation Written Down

Value as on

30.09.2017

Annexure- A

Fig. in Taka

Annexure- A

5

1.00 Reporting Entity and its Activities:

1.01 Legal forms of the Entity:

1.02 Nature of Business Activities:

1.03 Factory Operations:

2.00

2.01

2.02

The preparation of Financial Statements requires management to make judgments, estimates and assumptions

that affect the reported amounts of revenues, expenses, assets & liabilities and the accompanying disclosures.

Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to

the carrying amount of assets or liabilities affected in future periods. Actual results may differ from these

estimates and under lying assumptions are reviewed on an ongoing basis.

This comprises Statement of Financial Position, Statement of Profit or Loss and Other Comprehensive Income,

Statement of Changes in Equity, Statement of Cash Flows, Notes to the Financial Statements covering accounting

policies. This is prepared under the historical cost convention and in accordance with the requirements of the

Companies Act, 1994 and the Bangladesh Accounting Standards (BASs) adopted by the Institute of Chartered

Accountants of Bangladesh (ICAB) as well as those standards, disclosures recommended by BASs & BFRSs and

as applicable to this Company. The Board of Directors are responsible for preparing and presenting the financial

statements including adequate disclosures, who approved and authorized for issue of this financial statements.

The preparation of the financial statements in conformity with the Bangladesh Accounting Standards (BASs)

requires Board of Directors to make estimates and assumptions that affect the reported amounts of revenues and

expenses, assets and liabilities at the date of the reporting period.

Due to the inherent uncertainty involved in making estimates, actual result could differ from those estimates.

The Company is engaged in manufacturing and marketing of CR Coil, GP Coil ,CI (Corrugated Iron) Sheet of

different thickness, ranging from 0.120 mm to 0.420 mm, under its well established brand " Rani Marka Dheutin"

which is used mainly in rural and semi-urban areas of Bangladesh for construction of traditional houses and

fencing and raw materials of Colour coated CI Sheet Industries.

Appollo Ispat Complex Limited started its journey by setting up its factory at Shimrail, Siddhirgong, Narayangang

and went into commercial production in its 1st modern and sophisticated Continuous Galvanizing Line (CGL) in

early July 1997 and 2nd CGL early 2002 and Cold Rolled Manufacturing unit in January 2005.

To meet the growing market demand management intends to further expand its operation through introducing a

new environment friendly product named Non Oxidized Furnace (NOF) C.I Sheet with a production capacity of

60,000 MT.The project is expected to go into commercial production from June, 2017.

The factory comprises of land measuring 1675.05 decimals, around 13 buildings like factory buildings (CGL, NOF

CGL & CRM) different factory sheds, office building and guest house etc. constructed in different years and plant

and machineries like CGL, CRM, Effluent Treatment Plant, Boiler, Acid Regenerating Plant, Corrugation Machine,

Sharing Machine, Softener Plant, DM Plant, Dryer Machine, EOT Crane, Compressor, Gas Generator and Cooling

Machine etc. were purchased from different countries viz India, Japan, Germany etc.

Significant Accounting Policy for the Presentation of the Financial Statements:

The specific accounting policies selected and applied by the company’s management for significant transactions

and events that have material effects within the framework of Bangladesh Accounting Standard (BAS-I)

“Presentation of Financial Statements”, in preparation and presentation of financial statements have been

consistently applied throughout the year and were also consistent with those used in earlier years.

Corporate Financial Statements:

Use of Estimates and Judgments:

APPOLLO ISPAT COMPLEX LIMITEDNotes to the Financial Statements

As at and for the year ended 30 Sep 2017

The Registered Office of the company is located at 407, Tejgaon Industrial Area,(4th Floor) Dhaka-1208. The

industrial units are located at Shimrail, Siddhirgonj, Narayanganj, Dhaka.

Appollo Ispat Complex Limited (hereinafter referred to as "AICL"/"Appollo"/"the company") is a public limited

company was incorporated in Bangladesh on December 31, 1994 as a "private company" limited by shares.

Subsequently, the company was converted into "Public Company" limited by shares vide special resolution passed

in Extraordinary General Meeting held on March 30, 2010.

The Company listed with both Dhaka Stock Exchange Ltd. and Chittagong Stock Exchange Ltd. on December 24,

2013.

6


As at and for the year ended 30 Sep 20172.03 Going Concern:

2.04

2.05 Reporting Period:

2.06 Reporting Currency:

2.06 Segmental Reporting:

2.07

2.08 Comparative Information and Re-arrangement Thereof:

2.09 Compliance with BAS:

BAS 1

BAS 2

BAS 7

BAS 10

BAS 12

BAS 16

BAS 18

BAS 19

BAS 21

BAS 23

BAS 24

BAS 25

BAS 33

BAS 34

BAS 36

BAS 37

Events after the reporting period

Income Taxes

Property, Plant and Equipment

Revenue

Employee Benefits

The related BFRS are also complied for the preparation of this financial statements.

Related Party Disclosures

The Effects of Changes in Foreign Exchange Rates

Provisions, Contingent Liabilities and Contingent Assets

Earnings Per Share

The figures in the financial statements represent Bangladesh currency (Taka), which have been rounded off to the

nearest integer.

No segmental reporting is applicable for the company as required by BAS 14: Segment Reporting as the company

operates in a single industry segment and within a single geographical segment.

Fundamental Accounting Concepts/ Assumption:

The financial statements have been prepared under historical cost convention on Accrual concept and such other

convection as required by BAS-1 and BFRS for fair presentation of financial statements.

The following BAS is applicable to the financial statements for the year under review:

This report is the1st Quarter of the financial period of 1st July' 2017 to 30th September; 2017.

The company has adequate resources to continue its operation for the foreseeable future. For this reasons the

directors continue to adopt going concern basis in preparing the accounts. The current credit facilities and

resources of the company provides sufficient fund to meet the present requirements of its existing business.

Foreign Currency Transactions:

The financial statements are presented in Taka/Tk./BDT, which is company's functional currency. Transactions in

foreign currencies are recorded in the books at exchange rate prevailing on the date of the transaction. Monetary

assets and liabilities are converted at the rates prevailing at the statement of financial position date. Non-monetary

assets and liabilities denominated in foreign currencies, stated at historical cost, are translated into Bangladeshi

Taka at the exchange rate ruling at the date of transaction. Exchange differences arising on the settlement of

monetary items or on translating monetary items at the end of the reporting period are recognized in profit or loss

as per BAS-21 "The Effects of Changes in Foreign Exchange Rates".

Investment

Comparative Information has been disclosed for all numerical information in the financial statements and also the

narrative and descriptive information where it is relevant for understanding of the current period's financial

statements. Comparative figures have been re-arranged wherever considered necessary to ensure better

comparability with the current period without causing any impact on the profit and value of assets and liabilities as

reported in the financial statements.

In accordance with the provisions of BAS-34: Interim Financial Reporting, Comparative information has been

disclosed for all numerical information in the financial statements and also the narrative and descriptive

information where it is relevant for understanding of the current period's financial statements.

Comparative figures have been re-arranged wherever considered necessary to ensure better comparability with

the current period without causing any impact on the profit and value of assets and liabilities as reported in the

financial statements.

Presentation of Financial Statements

Inventories

Statement of Cash Flows

Borrowing Costs

Impairment of Assets

Interim Financial Reporting (For Quarterly Reporting)

7



2.10

2.11 Net Profit Before Tax:

2.12 Regulatory Compliance:

The Companies Act, 1994

The Income Tax Ordinance, 1984

The Income Tax Rules, 1984

The Customs Act 1969

2.13

2.13.1

These are capitalized at cost of acquisition and subsequently stated at cost less accumulated depreciation. The

cost of acquisition comprises of purchase price, including import duties and non-refundable Taxes and any directly

attributable cost of bringing the assets to its state of its intended use. Expenditure incurred after the assets have

been put into operation, such as repairs and maintenance is normally charged off as revenue expenditure in the

period in which it is incurred. In situation where it can be clearly demonstrated that the expenditure has resulted in

an increase in the future economic benefit expected to be obtained from the use of the fixed assets, the

expenditure is capitalized as an additional cost of the assets.

Revaluation of Property, Plant & Equipment (PPE):

PPE have been stated at cost other than Land which revalued amounts in accordance with BAS: 16 Property ,

Plant & Equipment. The Land as on 30 June 2012 have been revalued at fair market value as per decision of the

board of directors. The revaluation of assets has been made at present market value. Increase in the carrying

amount arising on revaluation are credited to “Revaluation Surplus” under share holders equity.

distribution of such surplus to the shareholders is restricted.

i) Effective date of revaluation to the Financial Statements 30-06-2012.

ii) Land has been revalued by A. Wahab & Co. Chartered Accountants a Govt. approved independent valuer.

iii) Revaluation surplus of Land & Land development has been transferred to Revaluation Reserve and

Events after the Reporting Date:

In compliance with the requirements of BAS 10: Events after the reporting period, post events that provide

additional information about the company's position at the reporting date are reflected in the financial statements

and events after reporting date that are not adjusting events are disclosed in the notes when material.

Net Profit Before Tax for the year were not materially affected by:

(b) Circumstances of an exceptional or non-recurring nature;

(c) Changes of credits relating to prior years; and

(d) Changes in accounting policies.

The Financial Statements have been prepared in compliance with the following laws and regulations:

The Value Added Tax (VAT) Act, 1991

The Value Added Tax (VAT) Rules, 1991

(a) Transaction of a nature not usually undertaken by the company;

Securities and Exchange Rules, 1987

Securities and Exchange Ordinance, 1969

Securities and Exchange Commission Act 1993

Recognition and measurement of Tangible Fixed Assets:

8



2.13.2

Land & Land Development Nil

All other Fixed Assets 10%

2.13.3

2.13.4 Capital Work in Process:

2.13.5

2.13.6 Impairment of Assets:

2.13.7 Subsequent Costs:

2.14 Inventories:

Nature of Inventories

Raw Materials

Work-in Progress

Chemicals, Stores and Spares

Finished Goods

Capitalization of Borrowing Costs:

As per the requirements of IAS /BAS- 23 ''Borrowing Cost'', directly attributable borrowing cost are capitalised

during construction period for all qualifying assets. A qualifying asset is an asset that necessarily takes a

substantial period of time to get ready for its intended use or sale. The borrowing costs that are directly

attributable to the acquisition , construction or production of a qualifying asset are those borrowing costs that

would have been avoided if the expenditure on the qualifying asset had not been made. All other borrowing cost

are recognized in profit or loss in the period in which they are incurred.

All fixed assets have been reviewed and it was confirmed that no such fixed assets have been impaired during the

year and for this reason no provision has been made for Impairment of assets as per BAS-36.

Inventories are measured at the lower of cost and net realizable value as prescribed by BAS-2. The cost of

inventories is based on the weighted average method, and includes expenditure incurred in acquiring the

inventories, production or conversion costs and other costs incurred in bringing them to their existing location and

condition. In the case of manufactured inventories and work-in-progress, cost includes an appropriate share of

production overheads based on normal operation capacity.

Depreciation of Tangible Fixed Assets:

Derecognition:

Depreciation Methods, useful lives and residual values are reviewed at each financial year end and adjusted if

appropriate.

Cost Formula

Weighted Average Cost

Material cost Plus Proportionate conversion cost based on percentage of

completion.

Weighted Average Cost

Valued at cost or net realizable value whichever is lower

The cost of replacing part of an items of property, plant and Equipment is recognized in the carrying amount of the

item if it is probable that the future benefit embodied within the part will flow to the company and its cost can be

measured reasonably. The costs of the day to day servicing of Property, Plant and equipment are recognized in

the profit & loss as expenses.

No depreciation is charged on Land and Land Development and Capital Work in Process (CWIP) as the land and

land development has ultimated useful life and the Capital Work in Process has not yet been started commercial

operation.

Depreciation on fixed assets other than Land & Land Development have been computed during the year using

the reducing balance method. Depreciation of an asset commences when the asset is available for use and

ceases at the earlier of the date the asset is classified as held for sale and the date the asset is derecognized.

After considering the useful life of assets as per BAS-16, the annual depreciation rates have been applied as

under which is considered reasonable by the management.

An item of Property, Plant and Equipment is derecognized upon disposal or when no future economic benefits are

expected from its use or disposal. Any gain or loss on derecognition of an item of property, Plant and Equipment is

determined as the difference between the net disposal proceeds and the carrying amount of the asset and is

recognized in profit or loss.

Capital Work in Process consists of unfinished work of NOF project and capital inventory. The major civil works

are completed and erection of prefabricated steel structure building has already completed, the commission and

errection of capital machinery has already started and expected to complete.Commercial production may resume

end of June 2017. Spare Parts expected to be used for more than one year are treated as Capital work in

process. Capital Work in Process is recognised when risks and rewards associated with such assets are

transferred to the company.

9



2.15 Trade Debtors:

2.16 Cash & Cash Equivalents:

2.17 Income Tax:

2.17.1 Provision For Income Tax:

2.17.2 Deferred Tax:

2.18 Revenue Recognition:

2.19 Employee Benefits:

a)

b)

i) Staff Gratuity:

ii)

iii) Annual Leave Encashment

The Company decided to operate for workers a 'Workers Profit Participation and Welfare Fund' as per section-234

of Bangladesh Labor Act-2006 and provision has been made during the period.@ 5% of the profit before charging

such expense.

Defined Contribution Plan (Provident fund):

The company adopted a policy to establish a contributory Provident Fund (CPF) scheme under the defined

contribution plan. The fund will be operated by a separate board of trustees after approval by the NBR as per

Income Tax Ordinance, 1984. All eligible employees will contribute @ 5% of their basic pay to the fund. The

company also will contribute equal of employees contribution to the fund. The fund will be managed under Trust

Rules. Necessary steps has been taken for constitution of the fund.

Defined Benefit Plan :

The Company Operates gratuity scheme, and provision in respect of which is made annually covering all its

eligible employees. Provision for Gratuity has been made for all eligible employees for current year equivalent to

two basic pay.

Workers Profit Participation & Welfare Fund:

The Company provides annual leave encashment benefit to all permanent employees under short term

employees benefit obligations. Annual leave encashment benefit obligations are measured on an undiscounted

basis . Provision is created for the amount of annual leave encashment under salary and allowance based on the

latest basic salary.

Revenue from the sale of goods is measured at the fair value of the consideration received or receivable, net of

returns, trade discounts and volume rebates exclusive of VAT as per BAS-18. Revenue is recognized when the

significant risks and reward of ownership have been transferred to the buyer, recovery of the consideration is

probable, the associates costs and possible return of goods can be estimated reliably & there is no continuing

management involvement with the goods sold. Transfer of risk and rewards occurs for the sale of goods when the

product is delivered along with dispatch documents and invoices to customers.

Appollo Ispat Complex Ltd.is maintaining both defined contribution plan and defined benefit plan for its eligible

permanent employees. The eligiblity is determined according to the terms and conditions as mentioned in the

respective deeds.The defined contribution plan and defined benefit plan are funded.

According to BAS 7 'Statement of Cash Flows' cash comprises of cash in hand, demand deposits and Cash

equivalents which are short term highly liquid investments that are readily convertible to Cash and which are

subject to an insignificant risk of changes in value. BAS 1 ``Presentation of Financial Statements'' provides that

Cash & Cash Equivalents are not restricted in use. Considering the provision of BAS 7 & BAS 1, Cash in Hand &

Bank Balances have been treated as Cash & Cash Equivalents.

The company has decided to adopt policy of reorganization of deferred tax in accordance with the Bangladesh

Accounting Standard (BAS)-12. Deferred tax is provided using the liability method for temporary difference

between the carrying value of fixed assets as per accounts and the corresponding income tax written down value.

Deferred tax is calculated at the effective Income Tax rate.

Trade debtors are carried at original invoice amount less an estimate made for doubtful debts based on a review

of all outstanding amounts at the year end.

Provision for taxation has been made as per rates prescribed in Finance Act 2016 and the Income Tax

Ordinance,1984 on the profit made by the company. As per BAS-12" Income Taxes'' income Tax provision has

been made during the year as the company earned taxable income.

10



2.20 Financial expenses/ Borrowing cost:

2.21 Statement of Cash Flows:

2.22 Provisions:

a.

b.

c. Reliable estimates can be made of the amount of the obligation.

Dividend

2.23 Earnings Per Share:

2.24 Components of Financial Statements:

• Statement of Financial Position as on 30 Sep' 2017

• Statement of Profit or Loss and other Comprehensive Income for the Period ended 30 Sep '2017

• Statement of Cash Flows for the Period ended 30 Sep'2017

• Statement of Change in Equity for the Period ended 30 Sep' 2017

• Accounting Policies and explanatory notes to the financial statements.

2.25 Responsibility for preparation and presentation of Financial Statements:

2.26 Risk and uncertainties for use of estimates in preparation of financial statements:

when it is probable that an outflow of resources embodying economic benefits will be required to settle the

obligation; and

The company recognizes a liability to make cash dividend when the distribution is authorize and the distribution is

no longer at the discretion of the company. As per the corporate laws in Bangladesh, a distribution is authorized

when it is approved by the shareholders in the Annual General Meeting (AGM). A corresponding amount is

recognized directly in equity.

This has been calculated in compliance with the requirements of BAS 33: Earnings Per Share is the basic

earnings dividing by the weighted average number of ordinary shares outstanding the end of the year.

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 Committee (IASC).

Statement of Cash Flows is prepared principally in accordance with IAS 7 as adopted by ICAB as BAS 7

“Statement of Cash Flows” and the cash flows from the operating activities have been presented under direct

method as prescribed by the Securities and Exchange Rules, 1987 and considering the provision of paragraph 19

of IAS 7 which provides that “enterprises are encouraged to report cash flows from operating activities using the

direct method”.

In accordance with the guidelines as prescribed by BAS-37: Provisions, Contingent Liabilities and Contingent

Assets, provisions are recognized in the following situations:

when the company has an obligation ( legal or constructive) as a result of past events;

Finance expenses/ Borrowing cost comprise interest expenses, financial charges and exchange differences

arising from foreign currency borrowings on bank loan, finance lease and other borrowings. Borrowing costs are

recognized as expenses in the period in which they incurred and capitalized the same that incurred before

commencement of commercial operation.

The preparation of financial statements in conformity with the International Accounting Standards requires

management to make estimates and assumption that affect the report, amounts of assets and liabilities and

disclosure of contingent assets and liabilities at the date of the financial statements and revenue and expenses

during the period reported. Actual results could differ from those estimates. Estimates are used for accounting of

certain terms such as long term contracts, provision for doubtful accounts, depreciation and amortization,

employees benefit plans, taxes reserves and contingencies.

11

3.00 Property, Plant and Equipment :

These have arrived at as under:

Cost (Opening Balance) 4,910,853,803 4,873,651,142

Add: Revaluation surplus of land - -

4,910,853,803 4,873,651,142

Add: Addition during the period 2,610,974 42,315,380

Adjustment/disposal - 5,112,719

Total Cost 4,913,464,777 4,910,853,803

Less: Accumulated Depreciation (Opening Balance) 2,026,831,417 1,917,948,264

Add: Charged during the period 24,563,984 108,883,152

Total 2,051,395,401 2,026,831,417

Written down value : (WDV) 2,862,069,376 2,884,022,386

4.00 Capital Work-in-Process:

This amount consists as follows:

Opening Balance (4.01) 1,927,856,015 1,813,449,730

Add: Addition during the year (4.02) 70,856,385 114,406,285

1,998,712,400 1,927,856,015

Less: Adjustment during the year - -

Total 1,998,712,400 1,927,856,015

4.01 Opening Balance (4.01) :

Machineary Work-in Progress 1,097,486,582 1,040,970,604

Building & Other Work-in-Prog. 830,369,433 772,479,126

1,927,856,015 1,813,449,730

4.02 Addition during the year :

Machineary Work-in Progress 66,119,507 56,515,978

Building & Other Work-in-Prog. 4,736,878 57,890,307

Total 70,856,385 114,406,285

5.00 Investment:


Un-Quoted

Palash Spinning Mills Ltd. Notes # 5.01 100,000,000 100,000,000

Phoenix Holdings Ltd. Notes # 5.02 381,538 381,538

Total 100,381,538 100,381,538

5.01

5.02

6.00 Inventories :

Finished goods 725,293,170 674,391,938

Work in Process 904,362,273 877,899,640

Raw Materials 206,282,003 466,067,862

Spare Parts 49,614,720 54,701,612

Total 1,885,552,166 2,073,061,052

7.00 Trade & Other Receivables :

a) Trade Receivable :

Opening balance 2,895,150,853 2,384,179,898

Add: Sales during the period 1,247,664,353 5,714,343,956

4,142,815,206 8,098,523,854

Less: Adjustment/recovery (1,181,510,330) 5,203,373,001

Total Trade Receivable 2,961,304,876 2,895,150,853

30th June' 2017

(i) The Company by way of transfer acquired 225,000 ordinary share of at a cost of Tk.100,000,000 each @ Tk. 444.44 each including a premium of Tk.

344.44 of Palash Spinning Mills which is 45% of total share. There is no commercial operation of Palash Spinning Mills.

The above Inventories are as per Physical counting made and valued by the inventory team consists of management staff. Inventories in hand have been

valued at lower of cost and net realizable value as per BAS-2.


(ii)The Company acquired 15,000 ordinary shares out of 50,000 shares of Tk.100 each of Phoenix Holdings Ltd. which is 30% of total shares. The said

company incurred loss of Tk. 3,728,207 up to 30-06-2017. Due to reported Loss upto 30.06.2017 Appollo Ispat Complex Ltd. has recognized 30%

Holding Loss which is equivalent of Tk. 11,18,462 by this reason Investment stands at Tk. (15,00,000-11,18,462)= Tk. 381,538.

Amounts in Taka

APPOLLO ISPAT COMPLEX LTD

30th Sep'2017

Notes to the Financial Statements

1



b) Other Receivable:

Insurance Receivable 2,239,721 38,343,516

Interest Receivable 806,070 -

Total Other Recievable 3,045,792 38,343,516

Total Trade & Other Receivables :

(A+B) 2,964,350,668 2,933,494,369

A district wise break down given below:

B. Baria 79,306,374 79,806,374

Bagerhat 90 90

Barisal (5,279,362) 1,878,828

Bhola 69,506,985 71,730,325

Bogra 593,059,505 686,624,122

Borguna 984,716 5,177,996

Chandpur 47,388,942 47,388,942

Chittagong 2,148,407 2,148,407

Chuadanga 23,529,314 52,079,182

Comilla 48,736,001 53,632,511

Dhaka 1,085,163,041 1,085,163,041

Dinajpur (42,342,258) 202,877

Faridpur (24,215,324) (1,711,294)

Feni 685,936 685,936

Gaibandha 94,831,605 96,387,825

Gazipur 88,782,942 89,241,762

Gopalgonj (1,470,335) 229,415

Jamalpur 50,517,491 53,014,951

Jessore 62,651,431 64,332,066

Jhalokati (34,486,856) 741,784

Jhenaidah 256,493 3,408,770

Khulna 27,323,830 41,548,380

Kishorgonj 3,073,433 6,078,761

Kurigram (1,587,323) 108,359

Kustia (2,242,339) 1,847,021

Lalmonirhat (13,013,681) 58,034

Madaripur 1,083,081 1,061,021

Magura 472,177 472,177

Manikgonj (21,880,470) 236,730

Mymensingh 1,758 9,746,179

Munshigonj (38,749,282) 1,758

Naogaon (2,980,026) 515,381

Narail (165,750) 2,324,836

Narayangonj 5,827,610 6,928,810

Natore 13,205,327 1,943,507

Netrokona 1,943,507 2,790,050

Nayabazar 22,556,161 26,523,350

Nilfamary 2,276,040 59,378,751

Noakhali 44,682,191 4,507,071

Norshingdhi 2,306,771 16,146,172

Others (Trade Debtors) 496,790,769 (15,289,073)

Suspenses A/c (Trade Debtors) 41,239 46,354

Pabna 33,771,980 4,907,428

Panchagar (3,045,522) 77,550,642

Potuakhali 404,941 2,585,193

Pirojpur (3,909,357) 404,941

Rajbari (8,621,444) (342,887)

Rajshahi 126,380,943 1,962,311

Rangpur 42,731 114,892,905

Satkhira 291,988 291,988

Sariyatpur 21,464,529 7,731

Sherpur (74,515) 35,864,541

Sirajgonj 46,354 (534,845)

Sylhet 117,449,576 136,027,716

Tangail (11,716,415) (56,269,840)

Thakurgaon 10,216,225 18,551,939

Zinjira (2,117,298) 113,552

Total 2,961,304,876 2,895,150,853

30 Sep'2017 30 June' 2017

Amounts in Taka

2



8.00 Advances, Deposits and Prepayments :


Advances Note-8.01 2,575,933,981 2,415,464,302

Deposits and Investments Note-8.03 181,279,222 146,263,418

2,757,213,203 2,561,727,721

8.01 Advances :

Against goods and services 343,939,927 368,591,217

Against Salary 10,566,944 9,998,927

Against Land purchase 398,698,214 336,785,714

Advance Building Construction for NOF - 286,500

Advance for Preliminary & Pre-Operating Expense (NOF) 18,292,367 12,606,294

Advance Income Tax Note-8.02 533,939,135 499,655,610

Factory current account 17,364,021 1,560,249

Material in Transit 795,591,615 852,581,374

L/C margin 456,141,476 332,951,752

VAT current account 630,402 182,665

Bank Gurantee Commission 769,880 264,000

2,575,933,981 2,415,464,302

8.02 Advance Income Tax :

Opening Balance 499,655,610 339,966,313

Add: Addition during the year 34,283,525 159,689,297

533,939,135 499,655,610

Less: Refund during the year - -

Less : Adjusted after Tax Assessment - -

-

Closing Balance 533,939,135 499,655,610

8.03 Deposits and Investments:

FDR with Eastern Bank Ltd. 59,659,908 59,659,908

CDBL 500,000 500,000

FDR with South East Bank Ltd. 3,803,312 3,803,312

FDR with IFIC Bank Ltd. 85,500,275 50,796,106

FDR with Jamuna Bank Ltd. 414,000 414,000

Deposit Against GAS cylindar 60,000 60,000

Security deposit with Titas Gas,WASA, DESA & Custom 31,341,728 31,030,093

Total 181,279,222 146,263,418

9.00 Cash and Bank balances :


Cash in Hand 456,117 374,896

Cash at Bank (Notes-9.01) 29,386,161 19,414,444

29,842,278 19,789,340

Amounts in Taka

30 June' 2017 30 sep'2017

3



30 Sep'2017 30 June' 2017

9.01 Cash at Bank:

Agrani Bank Ltd Tejgaon Br. A/c No-02-699597 55,394 268,615

AB Bank Ltd Kawran Bazar Br. A/c No-4002-750680-000 47,435 201,772

AB Bank Ltd Kawran Bazar Br. A/c No-STD 750680-430 1,081

Al-Arafah Islami Bank Ltd Motijheel A/c No 0151020015224 750,701 221,672

Al-Arafah Islami Bank Ltd Jatra Bari A/C No 200078491 230,032 230,032

Bank Asia Ltd Scotia Br. IPO STD-00736-764 5,300,607 5,420,322

Bank Asia Ltd Scotia Br. A/c No-00736-495 287,956 368,356

Basic Bank Ltd karwan bazar A/cNo-3110-01-180 43,893 133,308

BRAC Bank Ltd Gulshan Br. A/c No-1501200130284001 130,491 14,110

BRAC Bank Ltd Kawran Bazar Br. A/C No-1540100130284001 80,317 80,317

City Bank Ltd Po Motijheel A/c No-872001 700,906

City Bank Ltd Motijheel A/c No-3102004872002 2,028,331 728,331

Dutch Bangla Bank Ltd Dilkusha A/c No-10112-2704 146,246 1,657,485

Dutch Bangla Bank Ltd /Local KB A/c No-11053 124,989 124,989

Dhaka Bank Ltd K.Bazar Local A/c No-02071-6359 3,504,934 3,351,647

Dhaka Bank Ltd ( Motijheel) 567,000 -

Eastern Bank Ltd Sonargoan Br. A/c No-105106-8112 2,557,956 1,557,956

Exim Bank Ltd Motijheel A/c No-001111-11871 119,405 277,405

First Security Bank Ltd Mohakhali Br. A/c No-0103131-518 374,057 161,260

Islami Bank BD Ltd Mohakhali A/c No-205019109-1007 1,639,668 298,669

Islami Bank BD Ltd Gandria A/c No-5107 5,000 5,000

IFIC Bank Ltd K.Bazar A/c No-1017124260001 56,882 16,665

Jamuna Bank Ltd Dhilkusha A/c No-0195 790,136 1,300,505

Janata Bank Ltd Farmgate Br. A/c No-008036-173 67,468 70,168

Mercantail Bank ( Motijheel) 120 -

Mutual Trust Bank Ltd Motijheel Br. A/c No-0002-0210010672 2,529,600 48,767

Mutual Trust Bank Ltd Dhanmondi Br. A/c No-01875 10,000 10,000

National Bank Ltd Dhilkusha Br. A/c No-3379 17,284 167,284

National Bank Ltd Dhilkusha Br. A/c No- New Ipo 10,000 10,000

National Bank Ltd K Bazzar A/c No. 1048-662855 2,214,544 72,387

NCC Bank Ltd Dhanmondhi Br. A/c No. 00100210010127 1,685 1,865

NRB bank A/c No 22067 10,000 10,000

One Bank Ltd Dhilkusha Br. A/c No. 0010016238007 100,691 199,474

Prime Bank Ltd K.Bazzar A/c No 11331030018756 293,150 72,545

Primier Bank Ltd Gulshan Br. A/c No-0102111-7477 2,867 2,867

Pubali Bank Ltd Tejgaon A/c No. 0017 2,360 2,360

Pubali Bank Ltd Tejgaon A/c No. 2369901009161 1,642,777 295,335

Rupali Bank Ltd Green Road A/c No. 0414024-15 276,211 388,687

Southeast Bank Ltd Dhanmondhi Br.-25 A/c No. 0012111-9826 42,808 4,386

Southeast Bank Ltd Dhanmondhi Br. A/c No. 0012131-939 21,429 21,429

Shajalal Bank Ltd Motijheel Br. A/c No. 4001111-6337 182,520 147,941

Social Islami Bank Ltd Motijheel Br. A/c No. 0021330037219 3,868 503,868

Social Islami Bank Ltd Panthopath Br. A/c No. 015136-979 154,274 -

Sonali Bank Ltd A.H.M Br. A/c No. 1634536-97 19,097 102,795

Sonali Bank Ltd Tejgaon Br. A/c No. 012424-236 167,710 167,710

Sonali Bank Ltd Motejheel Br. A/c No. 8235 4,940 5,000

Sonali Bank Ltd RJC Motejheel Br. A/c No 131303-6 234,499 59,917

State Bank Of India A/c No. 0516030202-1 6,430 6,430

United Commercial Bank Ltd Mohakhali Br. A/c No. 0781301-176 160,564 356,422

United Commercial Bank Ltd Naya Bazar Br. A/c No. 000125 55,690 55,690

Uttara Bank Ltd A.H.M Br. A/c No. 102412200212361 1,610,160 212,704

Total 29,386,161 19,414,444

10.00 Share Capital :

Authorized Capital : Tk.

500,000,000 Ordinary share of Tk.10 each. 5,000,000,000 5,000,000,000

Issued, Subscribed and paid up

Capital:


250,000,000 Ordinary Share of

Tk.10 each, fully paid up in cash

2,500,000,000 2,500,000,000

Bonus Share Note:10.01 1,042,000,000 1,042,000,000

3,542,000,000 3,542,000,000

Amounts in Taka

4



30 Sep'2017 30 June' 2017

10.01 Bonus Share capital:


375,000,000 375,000,000

345,000,000 345,000,000

Bonus 2015-2016 : 32,200,000 Bonus Share@ Tk.10 each. 322,000,000 322,000,000

*Bonus 2016-2017 : 35,420,000 Bonus Share@ Tk.10 each. 354,200,000

1,042,000,000 1,042,000,000

10.02 A distribution schedule of the above shares is given below:

A. Director's Shareholding

30 Sep' 2017 30 June' 2017

% of Holding % of Holding

Deen Mohammad 11,646,096 Chairman 3.29 3.29

Mohammad.Shoeb 8,812,496 Vice Chairman 2.49 2.49

Md. Ansar Ali 7,084,000 Managing Director 2.00 2.00

Abdur Rahman 7,084,000 Dy Managing Director 2.00 2.00

M.A Majid 8,994,852 Director 2.54 2.54

Md Rafique 7,084,000 Director 2.00 2.00

Md. Abu Kaiser - Ind. Director 0.00 0.00

Ms. Roxshana Begum 7,084,376 Sponsor 2.00 2.00

Evana Fahmida Mohammad 7,084,376 Sponsor 2.00 2.00

Late Md.Mozammel Haque* - Sponsor 0.00 0.00

Md.Sirajul Haque 9,677,877 Sponsor 2.73 2.73

Murshida Hossain 49,588 Sponsor 0.01 0.01

Md. Mustafijul Huque 470,624 Sponsor 0.13 0.13

75,072,285 21.20 21.20

B. Other Shareholders

30 June' 2017

% of Holding

Above 5 % shareholding: Shareholders - -

Below 5% shareholdings Shareholders 78.80% 78.80%

Total 78.80% 78.80%

Grand Total (A+B) 100.00% 100.00%

Classification of Shareholders by holding

No. of holders % of Holding No. of holders % of Holding

Less than 500 Shares 8,275,344 32,951 2.34 35,690 2.53

501to 5000 Shares 27,042,962 12,453 7.64 13,144 8.05

5,001 to 10,000 Shares 22,530,303 2,905 6.36 3,049 6.68

10,001 to 20,000 Shares 25,911,052 1,746 7.32 1,838 7.70

20,001 to 30,000 Shares 16,396,718 646 4.63 691 4.95

30,001 to 40,000 Shares 10,643,687 298 3.00 335 3.39

40,001 to 50,000 Shares 11,097,670 238 3.13 255 3.35

50,001 to 100,000 Shares 26,403,430 357 7.45 372 7.80

100,001 to 1,000,000 Shares 62,218,031 246 17.56 251 17.74

1,000,001 to above Shares 143,680,803 29 40.56 33 37.81

354,200,000 51,869 100 55,658 100

11.00 Share Premium :

100,000,000 Ordinary Shares of Tk.12 each, 1,200,000,000 1,200,000,000

fully paid up in cash 1,200,000,000 1,200,000,000

12.00 Revaluation Surplus :

This is as per last Account

*Land & Land Development 1,141,578,189 1,141,578,189

1,141,578,189 1,141,578,189

*The revaluation of Land has been done on June 30, 2012 by A.Wahab & Co. Chartered Accountants , A member Firm of Lading Edge Alliance.

*N.B: In compliance with listing regulation 2015, Late Md.Mozammel Haque as sponsor sharehoder,

has been removed from the sponsor shareholder list.

Amounts in Taka

No. of Shares

Bonus 2013-2014 : 37,500,000 Bonus Share@ Tk.10 each.

Bonus 2014-2015 : 34,500,000 Bonus Share@ Tk.10 each.

For the Financial Year 2016-17 Board of Directors of the company proposed Dividend: 10% Stock; with due approval at 23rd Annual General Meeting

held on 23rd December 2017.

30 Sep' 2017

Status with the

Company

Name

Name

As on June 2017

Amounts in Taka

Total

Status with the

Company

As on Sep 2017

30 Sep' 2017

Holdings No. of Shares

30 June' 2017

5



13.00 Retained Earnings:


Balance brought forward Note-13.01 1,962,331,626 1,966,606,296

Add. Profit for the period 26,425,214 478,725,330

Add:Unabsorbed Carry Forwrded u/s 42(6) - -

1,988,756,840 2,445,331,626

Less:ReversalTax benefit on Unabsorbed Dep.allowance Carry Forwrded u/s 42(6)

(Since this amount has been Considerd as per Assessment in the New

TAX Liabilities ( BAS-8,Para 36)

Less: Cash Dividend paid to Share Holder as per approval at 22nd Annual General Meeting.

from 32,20,00,000 shares @5% - (161,000,000)

- (322,000,000)

Balance carried forward 1,988,756,840 1,962,331,626

14.00 Long Tern Borrowings:


Due within one year Due after more than

one year Due within one year

Due after more

than one year

Jamuna Bank Ltd. 120,630,000 192,069,882 120,630,000 214,681,372

Southeast Bank Ltd - - 3,624,107 -

IFIC Bank Ltd. 228,383,328 146,219,658 228,383,328 191,524,496

Mercantile Bank limited 60,087,072 107,345,314 60,000,000 117,124,492

Mutual trust Bank limited 51,783,804 12,452,490 51,783,804 22,239,379

Phoenix Finance & Investment 93,968,124 280,025,454 93,968,124 264,505,386

GSP Finance Company Ltd 13,960,956 24,652,253 13,960,956 27,985,066

GSP Finance Company Ltd(Lease) 41,489,129 - 13,960,956 30,762,633

NCC Bank limited 60,000,000 10,414,186 100,404,000 5,189,452

Islamic Finance & Investment Ltd 69,554,916 78,717,615 55,593,960 106,248,201

Social Islami Bank limited 15,480,000 37,981,352 60,087,072 12,167,607

755,337,329 889,878,204 802,396,307 992,428,084

15.00 Short Term Borrowings:


Jamuna Bank Ltd ( TR ) 306,037,036 305,269,295

Mutual Trust Bank Ltd 130,703,000 129,838,311

IFIC Bank Ltd (TR) 323,640,948 227,501,313

IFIC Bank Ltd (Deferred) 177,464,060 165,372,314

GSP Finance Company Ltd. 350,957,098 356,267,117

Southeast Bank Ltd 171,432,712 100,799,915

Phoenix Finance & Investment Ltd 150,273,611 169,484,069

Time loan with Jamuna bank Ltd. 151,446,572 152,819,972

MIDAS Finance Ltd. 100,751,616 101,791,666

Union Capital Ltd. 202,050,000 205,000,000

Total 2,064,756,653 1,914,143,972

16.00 Bank overdraft:

This consist of the following:

Jamuna Bank 60,520,382 61,622,160

AB Bank Ltd Kawran Bazar Br. - 2,996,571

City Bank Ltd Po Motijheel - 13,488,638

Janata Bank Ltd Bangshal Br. 1,655,533 1,378,143

Social Islami Bank Ltd Panthopath Br. - 137,788

IFIC Bank Ltd 205,454,189 204,431,101

Total 267,630,104 284,054,401

Less: Amount Transferred to Share Capital as Bonus Share of 322,00,000 (10% Stock Bonus) @ Tk. 10

each with due approval at 22nd Annual General Meeting.

30 sep' 2017 30 June' 2017

This represent the present outstanding balances of the above term loans. The above loans are secured by personal guarantee of the director of the

company and the pari passu sharing agreement between banks on fixed and floating assets of the company. The interest rate of this loans are varying

from 10%-13%. The Payment of installment were being made regularly.

30 June 2017

Amounts in Taka

Name of Bank

1,645,215,533 1,794,824,391 Total Long Term Borrowings

Total

As on 30 Sep, 2017

6



17.00 Liabilities for Expenses :


Audit fee 80,000 330,000

Electricity 7,221,670 4,560,835

Gas 47,749,091 18,406,088

Salary and Allowances** 24,712,703 13,295,828

Wages and Salary 6,725,301 3,652,617

AIT payable 482,647 527,017

Income Tax Deducted at source from Salary 592,836 276,143

VAT Deducted at source 4,983,909 4,885,044

AGM Expenses 2,398,685 2,398,685

Telephone 454,981 441,168

Contribution to Providend fund 7,358,883 7,084,745 -

102,760,705 55,858,170

17.01 Salary, wages & allowance Payable

18.00 Trade & Other Payables:


Trade Payables 6,453,365 6,562,815

Other Payables 9,429,715 9,805,767

15,883,080 16,368,582

18.01 Trade Payables:

AK Traders 3,721,666 2,770,756

Airtech 37,500 493,500

Ator Banu Traders - 143,450

Encon 187,110 -

Eastern Chemical 75,482 23,289

MD Steel Casting Indus. 20,000

Hilfu We Engoneering - 160,000

Happy Int. 1,620

Mofizul Islam Technical Boaring 120,400 120,400

Motaleb Iron Store 30,000

National Steel Corp. 203,277 203,277

Sensotec Automation & Control 50,400

Divine IT (50,000) 20,000

Prime Technologies 12,000 12,000

S.B Rubber Industries 169,200 169,200

Rafi Ent. - 140,000

Pakard Eng. Ltd. - 12,225

Royal Rubber Insd. 572,096 675,904

S Construction 687,434 38,603

Sunrise chemical 348,680 1,210,471

Surat Ali Enterprise 162,120 162,120

Department of Mechanical Eng. BUET 156,000 156,000

6,453,365 6,562,815

18.02 Other Payables:

Dividend Unpaid 4,930,185 5,096,292

IPO Applicant (Refund warrant with Bank Asia) 4,499,530 4,619,475

Satcom IT Ltd - 90,000

9,429,715 9,805,767

30 June' 2017

The company pays salary & allowance on accrual basis i.e. current's month salary is accrued for the month and it is paid on following month.

Amounts in Taka

30 Sep' 2017

7



19.00 Provision for Income Tax :

Opening balance 370,565,287 210,488,801

a)Provision made during the Period 14,360,427 160,076,486

384,925,714 370,565,287

20.00 Liabilities for Deffered Tax :

This has been arrived as under;

Carrying Value of Fixed Assets 957,995,362 979,948,372

As Tax Base 456,595,384 547,783,634

Temporary Difference 501,399,978 432,164,738

Addition not included Tax Base (147,015,795) (144,404,821)

Net Temporary Difference 354,384,183 287,759,917

Deffered Tax Liabilities @ 25% 88,596,046 71,939,980

Deferred Tax Liability/Expenses -

Deferred Tax Asset/Income during

the Period

16,656,066 376,032

21.00 Other Provisions:

Provision For Gratuity : Note-21.01 24,626,674 24,566,240

Note-21.02 96,431,432 93,408,184

Provision for Bad Debts : Note-21.03 34,960,659 28,693,400

156,018,765 146,667,825

21.01 Provision For Gratuity :

Opening balance 24,566,240 17,684,181

Add. Addition made during the period 1,262,774 7,571,303

Less: Gratuity Paid (1,202,340) (689,244)

Total 24,626,674 24,566,240

The Company made provision for gratuity equivalent to two months basic pay for all elegible employee during the year.

21.02


Opening balance 93,408,185 78,505,890

3,023,248 33,621,148

-

(18,718,854)

Total 96,431,432 93,408,185

The Company made provision for Workers Profit Participation Fund (WPPF) @ 5% of the profit before charging such expense .

21.03 Provision for Bad Debts:


Opening balance 28,693,400 32,174,198

Add. Addition made during the period 6,842,258 2,567,612

35,535,659 34,741,810

Less: Recovery during the year 575,000 6,048,410

Closing balance 34,960,659 28,693,400

(80% of Tk.35,097,851=2/3rd of 28,078,281)

Amounts in Taka

30 sep' 2017

Provision for Workers Profit Participation Fund ( WPPF) :

Provision for Workers Profit Participation Fund ( WPPF) :

30 June' 2017

The company has decided to adopt policy of reorganization of deferred tax in accordance with the Bangladesh Accounting Standard 12 (BAS). Deferred

tax is provided using the liability method for temporary difference between the carrying value of fixed assets as per accounts and the corresponding

income tax written down value. Deferred tax is calculated at the effective Income Tax rate Prevailling at balance sheet date.

30 June' 2017

Add. Addition made during the period

Amounts in Taka

30 sep' 2017

Less: Paid during the year as per rule

8



22.00 Net Turnover :


111

CI Sheet 1,175,432,588 1,345,250,096 4,258,499,044

CR Coil 18,762,365 255,343,698 1,029,364,756

GP Coil 46,222,125 148,580,000 363,566,100

Ridge 7,247,164 12,125,176 62,914,057

Total 1,247,664,353 1,761,298,970 5,714,343,956

23.00 Cost of Goods Sold :

This has been arrived as under;

Work in process ( opening) 877,899,640 994,516,675 994,516,675

Add. Raw Material Consumed 992,580,221 1,252,146,014 4,149,435,721

Total Work in Process 1,870,479,861 2,246,662,690 5,143,952,396

Less: Work in Process (Closing) 904,362,273 982,585,645 877,899,640

Total Consumption 966,117,588 1,264,077,045 4,266,052,756

Add: Factory Overhead 102,282,994 92,453,083 383,199,087

Cost of Production 1,068,400,582 1,356,530,128 4,649,251,843

Add: Finished Goods (Opening) 674,391,938 629,113,625 629,113,625

Finished Goods Available 1,742,792,520 1,985,643,753 5,278,365,468

Less: Finished Goods (Closing) 725,293,170 653,572,134 674,391,938

1,017,499,350 1,332,071,619 4,603,973,529

23.01 Raw Material Consumed :

A. Opening Stock of Raw Materials

HR Coil 367,520,752 428,327,659 428,327,659

Zinc Ingot 74,520,103 314,302,885 314,302,885

Chemical 24,027,007 20,967,799 20,967,799

Spare parts 54,701,612 45,737,021 45,737,021

520,769,474 809,335,364 809,335,365

B. Add: Raw Material Purchased

HR Coil 399,512,350 979,314,026 2,652,513,907

Zinc Ingot 296,177,005 207,358,022 1,013,249,664

Chemical 16,802,834 48,223,603 135,373,680

Spare parts 15,215,282 17,457,212 59,732,579

727,707,470 1,252,352,863 3,860,869,830

C. Raw Material available for Consumption (A+B) 1,248,476,944 2,061,688,227 4,670,205,195

D. Less: Closing Stock of Raw Materials

HR Coil 172,731,007 503,556,807 367,520,752

Zinc Ingot 15,416,646 218,876,037 74,520,103

Chemical 18,134,350 30,537,899 24,027,007

Spare parts 49,614,720 56,571,470 54,701,612

255,896,723 809,542,213 520,769,474

Raw Material Consumption

HR Coil 594,302,095 904,084,878 2,713,320,814

Zinc Ingot 355,280,462 302,784,870 1,253,032,446

Chemical 22,695,491 38,653,503 132,314,472

Spare parts 20,302,174 6,622,763 50,767,989

992,580,221 1,252,146,014 4,149,435,721

23.02 Factory Overhead :


Depreciation 23,335,784 25,354,817 103,438,995

Loss on Damaged Assets - 25,293,578 5,112,719

Electricity 19,011,555 1,283,156 106,277,526

Electric lighting & fittings 3,261,905 9,391,957 6,127,983

Gas Bill 11,277,194 152,901 40,709,846

Entertainment 212,702 1,570,817 2,528,269

Insurance Premium on Fire and RSD 1,008,548 - 4,903,996

Other Production Materials - 61,435 767,537

Office maintenance factory 106,911 504,505 965,728

Labour and carrying charge 159,209 329,129 4,603,025

Medical Expenses 39,700 75,508 173,378

Repair and Maintenance 13,737,120 2,641,108 26,725,700

Travel & conveyance 19,912 14,424 108,966

Postage & courier 23,174 17,813 36,029

Salary and Allowances 24,775,474 10,189,532 37,032,299

Telephone 7,151 2,000 66,700

Wages and Allowances 5,306,655 15,570,402 43,620,391

102,282,994 92,453,083 383,199,087

July'16 to Sep'16

Amounts in Taka

Amounts in Taka

July'16 to Sep'16 30 June' 2017

a) Salary and Allowance includes salary and allowances, bonus and leave pay / Notice pay.& Wages and allowances includes Wages and overtime.

July'17 to Sep'17 30 June' 2017

b) Repair and Maintenance includes Factory maintenance, Forklift maintenance, Generator maintenance, Machinery maintenance, Boiler Machine

maintenance, Factory building maintenance, Crane maintenance and Vehicle maintenance.

July'17 to Sep'17

9



Amounts in Taka

24.00 Administrative Expenses :


Audit Fee - 500,250 945,000

Accounting software expenses 15,000 15,000 475,450

AGM Expenses - - 3,530,491

Bond Stamp 2,530 3,300 24,895

Board Meeting Expenses 45,000 75,000 255,000

Business Development 674,077 167,500 2,139,960

Canteen Expenses 249,743 193,117 852,990

Consultancy & sevices charge 807,995 166,500 951,000

Conveyance 300,760 305,099 823,341

Director Remuneration 2,886,000 2,802,960 8,970,000

Depreciation 1,228,199 1,334,464 5,444,158

Donation 287,925 347,000 756,786

Electricity 125,000 75,000 395,000

Entertainment 443,998 479,528 2,652,304

Fees and Professional Charges 516,997 239,267 2,107,811

Tour &Travels Expenses 147,506 689,759 726,028

Gift & Presentation - - 1,210,820

Iftary Allowances 240 - 11,400

Legal Fee 391,780 309,351 1,996,331

License and Renewal & Fitness Fee 173,220 165,850 2,155,791

Liveries and Uniform 107,800 52,000 87,720

Miscellaneous Expenses 214,570 26,056 423,762

Medical Expenses 134,241 14,715 113,151

Newspaper and Periodicals 8,968 6,225 32,914

Office Rent including Garage Rent 1,125,471 995,820 4,080,807

Office Refreshment Expenses 63,609 64,621 215,162

Plantation 26,120 19,775 146,474

Postage and courier 22,628 3,323 327,102

Printing 175,850 66,005 441,781

Rent Rates and Taxes 709,592 899,867 1,640,500

Repair and Maintenance 1,343,021 1,388,909 5,459,667

Salary and Allowances including PF contribution 19,735,904 20,335,468 80,587,469

Stationery expenses 42,847 20,945 158,970

Stock exchange &fees /CDBL exp/BO A/c fees - 338,845

Telephone & Internet 497,999 747,488 2,664,534

Training Expenses 28,600 10,000 237,584

Traveling & Conveyance - 1,522,488

Total 32,533,190 32,520,162 134,903,485

24.01 Key Management Personnel Compensation:

Short term employee benefits (Salary and other allowances) 6,076,500 5,025,000 22,161,500

Post employment benefits ( provident fund, gratuity etc.) 382,395 360,750 1,452,045

6,458,895 5,385,750 23,613,545

Key management personnel includes employees of the rank of Deputy Managers (DGM), DGM equivalent and above.

25.00 Selling and Distribution Expenses :


Advertisement 111,400 399,915 7,273,696

Bonus - - 1,598,698

Delivery charges 1,292,395 1,344,608 5,629,368

Entertainment 286,592 79,283 595,265

Other Expenses 33,546 50,423 51,823

Traveling & Conveyance expenses 221,259 211,350 250,297

Salary & Allowance 4,927,440 2,342,640 6,388,160

Sales promotion expenses 2,033,432 1,079,470 20,085,677

Bad debts 6,842,258 2,707,612 2,567,612

Telephone/Mobile & Internet Expenses 70,400 92,530 275,929

15,818,722 8,307,831 44,716,524

26.00 Financial Expenses :


Bank Charge & Commission 1,125,300 122,667 4,059,815

Bank Gurantee Commission 1,007,980 954,270 1,198,700

Exchange Rate Fluctuation Loss 1,774,273 123,594,681 6,473,814

Interest on bank Loan 144,674,210 (4,730,108) 408,868,031

148,581,763 119,941,510 420,600,360

Note: Salary and allowances includes Bonus, overtime and Leave pay. Repair and Maintenance includes maintenance of air condition, maintenance of

office and maintenance of vehicles. Fees & Professional Charge includes Professional fees, Fees & Fines, Renewal fees.

Note: Salary and allowances includes , Bonus,overtime and Leave pay.

July'16 to Sep'16 30 June' 2017 July'17 to Sep'17

10



27.00 Non Operating Income :


Scrap sales and Others 11,632,995 28,562,351 104,847,029

Other Income-InterestReceived/Receivable Note: 27.01 636,206 2,440,686 4,326,701

CR& GP Processing Charges 16,227,200 - 60,765,330

Profit/(Loss) on Investment Note: 26.02 - (94,851)

Gain on sale of Investment - -

28,496,401 31,003,037 169,844,209

27.01 Income from Bank Interest :

Interest on Dividend Account - 147,907.37 210,834

Interest on IPO Account - - 158,662

Interest on FDR A/C 1,617,544 2,292,779 3,957,205

1,617,544 2,440,686 4,326,701

27.02 Loss on Investment:

a) Phoenix Holding Ltd:

Share of Holding (Loss for the year ended 30 June 2017. Tk.316,170 @ 30%) - - 94,851

Total Loss on Investment - - 94,851

28.00 Taxation:

Current Tax Expenses 14,360,427 69,969,679 159,700,454

Tax Provision adjustment as per Assessment order (Note: 28.01) -

Deferred Tax (Income)/Expenses Note: 19.00 16,656,066 (6,672,321) 376,032

Tax (Expenses)/Income 31,016,492 63,297,358 160,076,486

29.00 Earning Per Share :

The composition of earning per shares (EPS) is given below:

Profit after taxation 26,425,214 216,581,356 478,725,330

Number of ordinary shares at the period end 354,200,000 322,000,000 354,200,000

Weighted Average number of ordinary shares outstanding 354,200,000 322,000,000 354,200,000

Earning per share * 0.07 0.67 1.35

Number of ordinary shares Considering the 2015-16 Stock Dividend 354,200,000 354,200,000 354,200,000

0.07 0.61 1.35

30.00 Net Assets Value Per Share :

The composition of net assets value per share is given below:

Total Assets 12,598,121,629 11,870,127,340 12,500,332,422

Non-Current Liabilities plus Current Liabilities 4,725,786,600 4,125,361,498 4,654,422,608

Net Assets Value including Revaluation Surplus 7,872,335,029 7,744,765,842 7,845,909,814

Number of ordinary shares at the year end 354,200,000 322,000,000 354,200,000

* Net Asset Value (NAV) including Revaluation Surplus 22.23 24.05 22.15

Restated Net Assets Value (RNAV) per Share 22.23 21.87 22.15

30 June' 2017

Amounts in Taka

30 Sep' 2017 July'17 to Sep'17

EPS for the period ended has been restated based

This has been calculated in compliance with the requirements of BAS 33: Earning per share is the basic earning dividing by the weighted average

number of ordinary shares outstanding the end of the year.

11



31.00 Cash flow per share from operating activities

Net Operating Cash Flows Per Share - NOCFPS 0.70 0.22 0.33

The composition of cash inflow/(outflow) value per share is given below:

a) Operating cash inflow/outflow during this period Tk. 247,688,642 and as on 30th September 2016: Tk. 69,458,059

b) Weighted average number of ordinary shares at the close of business 354,200,000 (2016: 322,000,000)

32.00 Related parties transaction

Relationship Nature of Transaction

Outstanding/Advan

ce value

Common Shareholder Term Loan 524,267,189

Common Shareholder Insurance Nil

Common Shareholder Office Rent Nil

Common Shareholder Land Purchase 190,000,000

33.00 Employees

Permanent Provisional Total No of

Employee

Below Basic Tk.

6000

Officer 152 3 155 10

Staff 100 - 100 31

Workers 232 - 232 63

Total 484 3 487 104

34.00 Approval of the Financial Statements:

The Company had 484 Permanent and 03 provisional employees as on 30 June 2017 ( 2016:453) and a varying number of seasonal and temporary

workers (about 150) as required. The table given below shows the segregation of those employees.

These financial statements were authorized for issue in accordance with a resolution of the company's board meeting on 11th November 2017.

Eastern Dyeing and Calendaring Works Ltd.

Phoenix Insurance Company Ltd.

The name of the related parties and nature of these transactions have been set out in accordance with the provisions of BAS-24. Related parties

disclosure are given below:

Name of the parties

Phoenix Finance and Investments Ltd.

As per Bangladesh Accounting standards (BAS) 24 "Related party Disclosure" , Parties are considered to be related if one of the party has the ability to

control the other party or exercise significant influence over the other party is making financial and operating decision. APPOLLO ISPAT COMPLEX Ltd

carried out transaction in the ordinary course of the business on an arm's length basis at commercial rate with its related parties. During the year, the

company carried out transactions with related parties.

Tiger wire ( Re-rolling) Mills Ltd.

Particulars

12

Documents

APPOLLO ISPAT COMPLEX LIMITED Statement of … · Cost Depreciation Written Down ... the carrying amount of assets or liabilities affected in future periods. ... 1994 and the Bangladesh