Вы находитесь на странице: 1из 25

Ref.

No-SB/1102/2015

Dated: April 29, 2015

AUDITORS REPORT TO THE SHAREHOLDERS


We have audited the annexed Statement of Financial Position of ACTIVE FINE CHEMICALS LIMITED, as on
December 31, 2014 and its Statement of Comprehensive Income, Cash Flow Statement and Statement of Changes
in Equity for the year ended as on that date together with the accompanying Notes thereto.

Respective Responsibilities of the Management:


The preparation of this Financial Statement is the responsibility of the companys management.

Respective Responsibilities of the Auditors:


Our responsibility is to express an independent opinion on this Financial Statement based on our audit.

om

Scope:

ab
d.
c

We conducted our audit in accordance with BSA. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and significant estimates made by
management as well as evaluating the overall financial statement presentation. We believe that our audit provides
a reasonable basis for our opinion.

Opinion:

(i)
(ii)

(iii)

(iv)

La

We also report that:

nk

In our opinion, the Financial Statements are prepared and maintained according to the Bangladesh Accounting
Standard (BAS) and reported in accordance with the Bangladesh Financial Reporting Standard (BFRS), give a true
and fair view of the state of the companys affairs as of December 31, 2014 and of the results of its operations and
its cash flows for the year then ended and comply with the Companies Act, 1994.

We have obtained all the information, explanations and documents which to the best of our knowledge
and belief were necessary for the purpose of our audit and made due verification thereof.
The Company management has followed relevant provision of law and rules in managing the affairs of
the Company and that proper books of account, records and other statutory books have been properly
maintained.
The Statement of Financial Position and Statement of Comprehensive Income, Statement of Changes in
Equity are in agreement with the said books of account maintained by the Company and examined by us
while the Cash Flow Statement conforms with the presentation laid out in the Bangladesh Financial
Reporting Standard (BFRS); and
The expenditure incurred and payments made were for the purpose of the Companys business for the year.

Dated Dhaka
April 29, 2015

SHAFIQ BASAK & CO.


CHARTERED ACCOUNTANTS

ACTIVE FINE CHEMICALS LIMITED


STATEMENT OF FINANCIAL POSITION
As at 31st December, 2014

Amount (In Taka)


Notes 31st December 2014 31st December 2013

ASSETS:
Non-Current Assets:
Property, Plant and Equipments at Carrying
Value

1,258,084,851

909,579,060

Product Development Cost

20,614,667
20,614,667

23,559,619
23,559,619

Investment

302,900,000

172,704,257

Current Assets:
Inventories
Advances, Deposits and Prepayments
Accounts Receivable
Cash and Cash Equivalents

5
6
7
8

1,577,429,128
392,828,786
60,429,093
667,119,275
457,051,974

634,245,832
292,576,456
41,743,967
284,451,238
15,474,171

ab
d.
c

TOTAL ASSETS

om

Intangible Assets:

3,159,028,645

1,740,088,768

10
11
12

2,758,596,616
1,018,170,000
950,850,000
493,374,800
109,452,272
186,749,543

1,292,912,291
690,000,000
315,230,291
110,329,984
177,352,016

13
14

84,046,306
45,200,376
38,845,930

43,000,421
17,425,921
25,574,500

15
16
17
18

316,385,724
58,725,760
185,654,308
57,071,159
14,934,496

404,176,056
259,452,733
86,624,186
38,337,561
19,761,576

3,159,028,645

1,740,088,768

SHARE HOLDERS' EQUITY & LIABILITIES:


Shareholders' Equity :

nk

La

Share Capital
Share Premium
Retained Earnings
Revaluation Surplus
Tax Holiday Reserve

Non-Current Liabilities:
Deferred Tax Liability
Long Term Loan

Current Liabilities:
Short term Loan
Provision for Current Tax
Liabilities for Expense & Services
Liabilities for Other Finance
TOTAL SHARE HOLDERS' EQUITY AND LIABILITIES

Sd/Md. Zia Uddin


Chairman

Sd/S.M Saifur Rahman


Managing Director

Sd/Md. Mahbubur Rahman


Company Secretary

ACTIVE FINE CHEMICALS LIMITED


STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
For the year ended 31st December, 2014

Notes

Particulars

Amount in Taka
2014

2013

Net Turnover

19

1,395,039,566

1,227,110,415

Cost of Goods Sold

20

(784,003,794)

(698,448,597)

Gross Profit

611,035,772

528,661,818

Operating Expenses

(67,503,702)

(76,782,246)

21

(49,047,592)

(59,881,527)

Selling & Distribution Expenses

22

(18,456,110)

(16,900,719)

543,532,070

451,879,572

(38,706,116)

(37,418,063)

5,441,392

531,581

510,267,346

414,993,090

(24,298,445)

(19,761,576)

485,968,901

395,231,514

(126,804,577)

(60,382,532)

(99,030,122)

(53,916,954)

(27,774,455)

(6,465,578)

359,164,324

334,848,982

359,164,324

334,848,982

4.26

3.97

Profit from Operation

Other Income
Net Profit before WPPF
Allocation for WPPF
Net Profit Before Tax
Income Tax Expenses
Provision for Current Tax

Net Profit After Tax

nk

Provision for Deferred Tax

ab
d.
c

Finance Cost

om

Administrative Expenses

La

(Transferred to Statement of Changes in Equity)

23

Earnings per Share (Restated)

Sd/Md. Zia Uddin


Chairman

Sd/S.M Saifur Rahman


Managing Director

Sd/Md. Mahbubur Rahman


Company Secretary

ACTIVE FINE CHEMICALS LIMITED


STATEMENT OF CHANGES IN EQUITY (UNAUDITED)
For the year ended 31st December, 2014

Tax
Holiday
Reserve

Share

Share

Retained

Capital

Premium

Earnings

Balance 1st January 2014

690,000,000

315,230,291

Allotment made during the year

190,170,000

190,170,000

Bonus Share Issued

138,000,000

(138,000,000)

950,850,000
-

(34,500,000)

9,397,527

(877,712)
-

(34,500,000)
950,850,000
359,164,323
-

Cash Dividend
Share Premium
Revaluation Surplus Adjustment
Net Profit after Tax
Provision for Tax Holiday

1,018,170,000 950,850,000

877,712
359,164,323
(9,397,527)
493,374,800

ab
d.
c

Balance 31st December 2014

Revaluation

Total

Surplus

Taka

177,352,016 110,329,984 1,292,912,291

om

Particulars

186,749,543 109,452,272 2,758,596,615

For the year ended 31st December, 2013


Share

Particulars

Retained

Premium

Earnings

nk

Capital

Share

552,000,000

179,598,505

Bonus Share Issued

138,000,000

Revaluation Surplus
Adjustment
Net Profit after Tax
Provision for Tax Holiday

Balance 31st December 2013

Sd/Md. Zia Uddin


Chairman

Revaluation

Total

Surplus

Taka

115,182,790

111,282,013

(138,000,000)

952,029

(952,029)

334,848,982
(62,169,226)

62,169,226

690,000,000

315,230,291

177,352,016

110,329,984

La

Balance 1st January 2013

Tax
Holiday
Reserve

Sd/S.M Saifur Rahman


Managing Director

958,063,308

334,848,982
1,292,912,291

Sd/Md. Mahbubur Rahman


Company Secretary

ACTIVE FINE CHEMICALS LIMITED


STATEMENT OF CASH FLOWS (UNAUDITED)
For the year ended 31st December, 2014

Amount (In Taka)

Particulars

2014

2013

A. Cash Flows from Operating Activities:


Collection from Sales
Payment to Suppliers

1,012,371,529
(771,216,781)

1,064,958,504
(685,931,117)

Payment for Expenses


Payment for Advance

(86,208,378)
(18,685,126)

(81,103,780)
(10,877,480)

Payment of WPPF

(34,455,880)

(24,877,571)

Other Income

5,441,392

531,581

107,246,756

262,700,137

om

Net Cash Generated from Operating Activities


B. Cash Flows from Investing Activities:
Investment during the year

(130,195,743)

(95,504,257)

(459,868,022)

(195,107,547)

(590,063,765)

(290,611,804)

Increase/(Decrease) in Short Term Loan

(200,726,973)

26,159,865

Increase/(Decrease) in Long Term Loan

13,271,430

11,172,000

950,850,000
(29,169,645)

Increase of Share Capital


Received/(Payment) under lease Obligation

190,170,000
-

(404,593)

Net Cash Generated/(Used) from Financing Activities

924,394,812

36,927,272

441,577,803

9,015,605

15,474,171

6,458,566

457,051,974

15,474,171

ab
d.
c

Purchase of Fixed Assets


Net Cash used in Investing Activities

C. Cash Flows from Financing Activities:

La

nk

Receipts of Share Premium


Payment Of Dividend

D. Net Cash Inflow/(Outflow) from Total Activities (A+B+C)


E. Opening Cash & Cash Equivalents
F. Cash and Cash Equivalents at the End (D+E)

Sd/Md. Zia Uddin


Chairman

Sd/S.M Saifur Rahman


Managing Director

Sd/Md. Mahbubur Rahman


Company Secretary

ACTIVE FINE CHEMICALS LTD.


REPORTS ON THE FINANCIAL STATEMENTS
BASED ON
BANGLADESH FINANCIAL REPORTING STANDARDS (BFRS)
FOR THE YEAR ENDED DECEMBER 31, 2014.

SIGNIFICANT ACCOUNTING POLICIES AND OTHER MATERIAL INFORMATION:

1.01

Legal form of the Enterprise:


The Active Fine Chemicals Limited was incorporated in Bangladesh on 1st December
2004 as a Private Limited Company under the Companies Act, 1994 and subsequently it
was converted into Public Limited Company on 9th December, 2009. The company has
been listed with Dhaka Stock Exchange and Chittagong Stock Exchange in 2010.

1.02

Registered Office and Factory:


The Companys registered office is situated at Tanaka Tower (2nd Floor), 42/1/Gha,
Segun Bagicha, Dhaka 1000, Bangladesh and its factory is located at West Muktarpur,
Munshiganj, Bangladesh 20 Km. away from Dhaka City.

1.03

Nature of Business Operations:

nk

ab
d.
c

om

1.00

La

Active Fine Chemicals Ltd. has been established in 2004 with a vision to share in local
market for supply of bulk drug materials. The main objective of the company is to enter
into fast growing pharmaceutical local market by providing highest quality products in
the market at a competitive price.

1.04

Commercial Production:
Its commercial production has been started since 5th October, 2009.

1.05

Components of Financial Statements:


1. Statement of Financial Position as at December 31, 2014.
2. Statement of Comprehensive Income for the year ended December 31, 2014.
3. Statement of Cash flows for the year ended December 31, 2014.
4. Statement of Changes in Equity for the year ended December 31, 2014.
5. Accounting policies and explanatory notes.

1.06

Application of Bangladesh Accounting Standards (BASs):


Following BASs are applicable for the preparation and presentation of financial statements for
the year under report.
BAS 1 Presentation of Financial Statements
BAS 2 Inventories
BAS 7 Statement of Cash Flows
BAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
BAS 10 Events after the Balance Sheet
BAS 12 Income Taxes
BAS 16 Property, Plant and Equipment

BAS 19 Employee Benefits

om

BAS 18 Revenue

BAS 23 Borrowing Costs

ab
d.
c

BAS 21 The effects of Changes in Foreign Exchange Rate

BAS 24 Related Party Disclosures


BAS 33 Earnings per Share

BAS 37 Provisions, Contingent Liabilities and Contingent Assets

Basis of Preparation and presentation of Financial Statements:


i.

Statement of compliance:

La

1.07

nk

BAS 38 Intangible Assets

The financial statements have been prepared on going concern basis under the
Historical Cost convention in accordance with generally accepted accounting
principles and practice in Bangladesh, Bangladesh Accounting Standards (BAS), the
Companies Act 1994, the Securities & Exchange Rules 1987, Listing Regulations of Dhaka
Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) and other applicable laws
and regulation.

ii.

Basis of measurement:
The financial statements have been prepared on the Historical Cost basis except for
certain assets which are stated at revalued amount.

iii.

Functional and presentational currency and level of precision:


These financial statements are prepared in Bangladesh Taka (Taka/Tk.), which is the
companys functional currency. All financial information is presented in Taka currency
and has been rounded to the nearest taka except where indicated otherwise.

iv.

Use of estimates and judgments:


The preparation of financial statements requires management to make judgment,
estimates and assumptions that affect the applicable accounting policies and reported
amounts of assets, liabilities, income and expenses. Actual results may differ from these
estimates.

om

Estimates and underlying assumptions are reviewed on an ongoing basis. Revision of


accounting estimates are recognized in the period in which the estimates are revised
and in any future periods affected.

v.

ab
d.
c

In particular, the key areas of estimation, uncertainty and critical judgments in applying
accounting policies that have the most significant effect on the amounts recognized in
the financial statements include depreciation, inventory valuation, accrued expenses
and other payables.
Reporting Period:

The period of financial statements of the company covers one year from 1st January to
31st December and it followed consistently.
vi.

Comparative Accounts:

viii.

Presentation of Financial Statements:


The presentation of this financial statement is in accordance with the guidelines
provided by BAS-1 Presentation of Financial Statements.

La

vii.

nk

Figures of previous year has been re-arranged to conform to the current years
presentation, wherever necessary.

Regulatory Compliances:
As required Active Fine Chemicals Limited comply with the following major legal
provision in addition to the Companies Act 1994, the Securities and Exchange Rules
1987 and other applicable laws and regulations:
The Income Tax Ordinance 1984
The Income Tax Rules 1984
The Securities Exchange Rules 1987
The Value Added Tax Act 1991
The Value Added Tax Rules 1991

Significant Accounting Policies:


The accounting policies set out below have been applied consistently to all periods presented in
these financial statements.

i.

Inventories:
Inventories are valued at the lower of cost or net realizable value as prescribed
by BAS- 2 Inventories. The cost is assigned following weighted average cost
formula and includes expenditure incurred for acquiring the inventories,
production or conversion costs and other costs in bringing them to their existing
location and condition. In the case of manufacturing inventories and work-inprogress cost includes an appropriate share of production overheads based on
normal operation capacity.

Inventories are consists of as follows:

Statement of Cash Flows:


Statement of Cash flows has been prepared in accordance with BAS-7 Statement
of Cash Flow. Cash generated from operating activities has been reported using
the Direct Method as prescribed by the Securities and Exchange Rule 1987 and
as the benchmark treatment of BAS-7, whereby major classes of gross cash
receipt and gross cash payments from operating activities are disclosed.

nk

ii.

Raw Materials.
Work-in Process.
Finished Goods.
Packing Materials.

ab
d.
c

a)
b)
c)
d)

om

Net realizable value is the estimated selling price in the ordinary course of
business, less the estimated costs of completion of sales and selling expenses.

iii.

La

1.08

Income Tax:
Income tax expenses comprises current and deferred tax. Income tax expenses is
recognized in Statement of Comprehensive Income.
Tax Holiday Reserve:
Tax holiday reserve has been made @ 40% from Tax exempted income for the year
under audit.

Deferred Tax:
This is the fifth year of commercial operation. Deferred tax has been calculated
according to BAS-12 and due effect has been given in the financial statements.

iv. Property, Plant and Equipments:


Recognition and Measurement:
All property, plant, equipment is measured at cost or revaluation less accumulated
depreciation less impairment loss, if any. The items of land, building, plant and
machinery were revalued in the year 2009 by a firm of professional valuer GK Adjusters
Limited on the basis of open market value. Details of revalued amount were as under:

Particulars

Amount

Land & Land Development

9,48,00,000/-

Building

1,05,70,000/5,70,000/-

Plant & Machinery

om

Gas Line Installation & Other Cons.

11,34,40,000/-

ab
d.
c

Total

75,00,000/-

Depreciation:

Depreciation has been charged on straight line method and depreciation is charged to
manufacturing expense and administrative expense on prorata basis.

nk

Depreciation is charged at the rate varying from 3% to 20% depending on the estimated
useful lives of the assets. The revalued property, plant and equipment are depreciated
by writing off their net book value at the date of revaluation over their remaining
estimated useful life.

La

No depreciation is charged on land and land development. The rate of depreciation


applied on straight line method for the current and comparative years are as follows:

Name of Assets
Building

Depreciation Rate

Useful Life

03%

34 Years

Plant & Machinery

10%

10 Years

Furniture & Fixture

10%

10 Years

Office Equipment

20%

05 Years

Lab Equipment

20%

05 Years

Motor Vehicle

20%

05 Years

10%

10 Years

Gas Line Installation


& Other Construction

Subsequent Costs:

The cost of replacing part of an item of property, plant and equipment will recognize in
the carrying amount of the item if it is probable that the future economic benefits
embodied within the part will flow to the company and its cost can be measured
reliably. The cost of the day to day servicing of the property, plant and equipment are
recognized in the profit and loss account as incurred.

vi.

Product Development Cost:


This leads to Research & Development Expenses and Development of Products
that is definite to yield benefit to the company are capitalized and being
amortized over 10 years from 2011 using straight line basis as decided by the
Management.
Revenue Recognition:

om

v.

ab
d.
c

In compliance with the requirements of BAS-18 Revenue, revenue from receipts from
customers against sales is recognized when products are dispatched to customers, that
is, when the significant risk and rewards of ownership have been transferred to the
buyer, recovery of the consideration is probable, the associated costs and possible
return of goods can be estimated reliably, and there is no continuing management
involvement with the goods.

Retirement Benefit Schemes:


(a) WPPF:
As per law, the company has created a fund for workers as Workers Profit
Participation Fund (WPPF) and 5% of the net profit after charging the
contribution has been provided for this fund.
(b) Other Benefits:
The company has not yet introduced any types of Employee Benefit Schemes
like Gratuity, Group Insurance for Staff, Provident Fund etc.

La

vii.

nk

Sales price represents inclusive of VAT, but sales less VAT are recognized as Revenue.

viii.

Foreign Currency Transactions:


Foreign Currencies are transacted into taka at the exchange rates ruling on the
date of transactions in accordance with BAS-21 The effects of changes in
foreign exchange rates.

ix.

Borrowing Cost/Finance Cost:


Finance cost comprises interest expenses on bank loan, finance lease, bank
charge and other borrowings. All finance expenses are recognized in the profit &
loss account.

x.

Related Party Transaction:


No related party transaction took place except investment in shares with AFC
Capital Limited, AFC Solvents Limited & AFC Agro Biotech Limited & AFC Agro
Biology Limited and share money deposit with AFC Health Limited & AFC Capital
Limited.

xi.

Earning per Share (EPS):

Basic earnings per share:

om

Earnings per Share (EPS) are calculated in accordance with the Bangladesh
Accounting Standard BAS-33 Earning per Share.

ab
d.
c

Earnings per share has been calculated by dividing the earning attributable to
ordinary shareholders of the company by the weighted average number of
ordinary shares outstanding during the year.
Diluted Earnings per Share:

xii.

nk

No diluted EPS was required to be calculated for the year under review as there
is no scope for dilution of EPS for the year.
Provisions:

La

Provisions were made considering risk and un-certainties at best estimate of the
probable expenditure that would require to meet the current obligation on the Balance
Sheet date.

xiii.

Advance, Deposits and Prepayments:


Advances are initially measured at cost. After initial recognition advances are carried at
cost less deductions, adjustments or charges to other related account heads such as
property, plant and machinery, inventory or expenses. Deposits are measured at
payment value.
Prepayments are initially measured at cost. After initial recognition, prepayments are
carried at cost less charges to income statement.

xiv.

Cash and Cash equivalents:


Cash and Cash equivalents include cash in hand, cash at banks which are held and
available for use by the company without any restriction. There is insignificant risk of
change in value of the same.

xv.

Contingencies:
Contingencies arising from claims, litigation, assessment, fines, penalties etc. are
recorded when it is probable that a liability has been incurred and the amount
can be reasonably estimated.
Accounts Receivables:

om

xvi.

Segment Reporting:
As there is a single business and geographic segment within which the company
operates as such no segment reporting is felt necessary.

nk

xvii.

ab
d.
c

Accounts receivables are initially recognized at cost which is the fair value of the
consideration given for them. After initial recognition these are carried at cost,
impairment losses due to uncollectible of any amount so recognized is written
off, firstly against any provision available and then to the profit and loss account.
Subsequent recoveries of amounts previously provided for credited to the profit
and loss account.

La

xviii. General:
Previous years figures have been regrouped / reclassified where considered
necessary to conform to current years presentation. Figures have been rounded
off to the nearest taka, as the currency represented in this financial statements.

Amount (In Taka)


31st December 2014

2.00

31st December 2013

Property, Plant & Equipment :


Opening balance
Add: Addition during the year

1,077,962,869

882,855,322

459,868,022

195,107,547

1,537,830,891

1,077,962,869

Less: Disposal / Transfer during the year


Less: Accumulated Depreciation
Carrying Value

279,746,040

168,383,809

1,258,084,851

909,579,060

Details have been shown in Annexure-A.


Product Development Cost:
This consists of as follows:
Opening Balance
Add: Addition During the year

23,559,619
-

26,504,572
-

Less: Written off @ 10%

23,559,619
2,944,953

26,504,572
2,944,953

20,614,667

23,559,619

om

3.00

Total

Investment :
This consists of as follows:
Investment in Shares:
AFC Capital Ltd.
AFC Solvents Ltd.
AFC Agro Biotech Ltd.
AFC Agro Biology Ltd.

47,000,000
50,000
60,050,000
100,000

17,000,000
50,000
60,050,000
100,000

Total
Share money deposit with AFC Health Ltd.
Share money deposit with AFC Capital Ltd.
Investment in markatable Securities

107,200,000
151,700,000
32,000,000
12,000,000

77,200,000
60,000,000
30,000,000
5,504,257

Total

302,900,000

172,704,257

La

nk

4.00

ab
d.
c

This represents expenditure for Research & Development Expenses and Development of Products and is being
amortised over 10 years as decided by the Management.

5.00

10% of Tax Holiday Reserve has been invested in the secondery market as requirement of the cluse 46(b)
sub section 4 (b) of Income Tax Ordinance 1984.
Inventories :
The break-up is as follows:
Raw Materials
247,467,860
198,386,471
Packing Materials
19,234,567
14,285,675
Work in process
38,256,785
38,551,087
Finished goods
87,869,574
41,353,223
Total
392,828,786
292,576,456
The basis of valuation is stated in Note 1 (1.08.i)
In view of innumerable items of inventory and diversified quantities, it is not practical to disclose
quantities against each item of inventory.

Advances, Deposits & Prepayments :


The break-up is as follows:
Advances:
Tax Deducted at Sources
Note 6.01
Advance Income Tax at Import Stage Note 6.02
Advance VAT
Note 6.03

a) This is considered good.

5,813,122
12,802,891
4,761,336
82,000
678,500
1,239,460
25,377,309

1,510,339
17,366,483
18,876,822

1,508,264
10,827,745
12,336,009

4,796,100
4,796,100
60,429,093

4,030,650
4,030,650
41,743,968

ab
d.
c

Advance for rent and others


Advance to C & F agents and others
Sub Total
Deposits:
Security Money
L.C Margin
Sub Total
Prepayments :
Prepayment to parties
Sub Total
Total

10,807,785
18,655,328
5,382,758
283,500
690,500
936,300
36,756,171

om

6.00

b) Employees advances of Tk. 82,000/- as shown above.


c) No amount was due from the Managing Director, Managing Agent, Directors, Managers. and Officers of the
company and any of them severally with any other person except as stated in (b) above

La

nk

d) No amount was due by the related party.


6.01 Tax Deduct at Sources:
The break-up is as follows:
Opening balance
Add: Deducted during the year
Less: Adjust during the year
Total
6.02

Advance Income Tax at Import Stage:


The break-up is as follows:
Opening balance
Add: Paid during the year
Less: Adjust during the year
Total

6.03

Advance VAT:
The break-up is as follows:
Opening balance
Add:Paid during the year
Less: Adjust during the year
Total

5,813,122
4,994,663
10,807,785
10,807,785

12,802,891
5,852,437
18,655,328
18,655,328

4,761,335
30,125,045
34,886,380
29,503,622
5,382,758

8,322,149
6,473,549
14,795,698
(8,982,576)
5,813,122

8,640,374
4,162,517
12,802,891
12,802,891

164,337
28,941,749
29,106,086
24,344,751
4,761,335

7.00

Accounts Receivable :

667,119,275

284,451,240

This includes receivable of Tk. 31,20,155/- against Institutions & Tk.66,39,99,120/- due from the local
distributors of the pharmaceutical product of the company,out of which TK. 45,49,03,932.00 has subsequantly
been realised up to April 20,2015.
No amount was due from the Managing Director, Managing Agent, Directors, Managers and Officers of the
company and any of them severally or jointly with any other person.
Cash & Cash Equivalents :
Cash in Hand
Cash at Bank:
One Bank Ltd. A/C No. 6007
Bank Asia Ltd. A/C No. 0020
Janata Bank Ltd. A/C No.1594
Janata Bank Ltd. A/C No.02009
Eastern Bank Ltd. A/C No.12092
NRB Bank Ltd. A/c No. 11234
Dutch Bangla Bank Ltd. A/c No.1724
Dutch Bangla Bank Ltd. A/c No.16657
Islami Bank Bangladesh Ltd. A/C No.5604
Islami Bank Bangladesh Ltd. A/C No.1910
Islami Bank Bangladesh Ltd. A/C No.1708
Premier Bank Ltd. A/C No. 0951
Premier Bank Ltd. A/C No. 0949(Dividend A/C)
Bangladesh Development Bank Ltd. A/C No. 4016
Bangladesh Development Bank Ltd. A/C No. 9673

1,127,473

378,150

56,184
1,348,844
3,418,592
863,593
5,027
157,028
1,149,651
87,164
602,536
92,848
22,249
441,403,143
5,330,355
1,387,287

6,753
524,397
2,258,784
8,853,627
5,590

Total

457,051,974

15,474,171

nk

Share Capital :
This is made-up as follows:
Authorized:
30,00,00,000 Ordinary Shares of Tk. 10 each

La

9.00

ab
d.
c

om

8.00

Issued and Paid-up Capital :


A) By Cash:
4,00,00,000 Ordinary Shares of Tk. 10 each
1,90,17,000 Ordinary Shares of Tk. 10 each

3,000,000,000

1,000,000,000

400,000,000
190,170,000

400,000,000
-

(New Capital Raise Vide BSEC Letter No.SEC/ci/cplc(pvt.)


-201/09/559 Dt. August,12 2014)
B) By Issue of Bonus Share:
60,00,000 Ordinary Shares of Tk. 10 each (2010 Stock 15%)
92, 00,000 Ordinary Shares of Tk. 10 each (2011 Stock 20%)
1, 38,00,000 Ordinary Shares of Tk. 10 each (2012 Stock 25%)
1,38,00,000 Ordinary Shares of Tk. 10 each (2013 Stock 20% & Cash 5%)
Total

206,081
88,434
91,697
1,628,168
22,943
1,073,483
336,064

60,000,000
92,000,000
138,000,000
138,000,000
1,018,170,000

60,000,000
92,000,000
138,000,000
690,000,000

Shareholding Position as on 31st December are as follows :


Number of Shares

Number of Shares

Directors / Sponsors

12,238,200

10,198,500.00

Institutions
General Shareholders

26,340,058
63,238,742

5,711,169.00
53,090,331.00

Total

101,817,000

69,000,000.00

A distribution schedule of the above shares are given below as required by the Listing Rules:

Less than 500 shares


501 to 5000 shares

No. of Share

Numbers

% of total

holder

of Share

Shareholding

4,152
6,009

1,080,368.00
9,189,728.00

1.06
9.03

4,520,029.00

4.44

5,093,149.00
2,986,167.00

5.00
2.93

1,949,984.00
1,782,784.00

1.92
1.75

74
102

5,537,814.00
30,009,867.00

5.44
29.47

16

39,667,110.00

38.96

11,515

101,817,000.00

100.00

605

10,001 to 20,000 shares


20,001 to 30,000 shares

347
118

30,001 to 40,000 shares


40,001 to 50,000 shares

53
39

50,001 to 1,00,000 shares


1,00,001 to 10,00,000 shares

Retained Earnings:
This is made-up as follows:
Opening Balance
Cash Dividend
Stock Dividend
Revaluation Surplus Adjustment
Net Profit after Tax
Provision for Tax Holiday
Total

La

10.00

nk

Over 10,00,000 shares

ab
d.
c

5,001 to 10,000 shares

om

Shareholdings

11.00

Revaluation Surplus :
This is made-up as follows:
Opening Balance
Add: Addition during the year
Less: Adjustment during the year
Total

(Note 11.01)

315,230,290
(34,500,000)
(138,000,000)
877,714
359,164,324
(9,397,527)
493,374,800

179,598,505
(138,000,000)
952,029
334,848,982
(62,169,226)
315,230,290

110,329,984
110,329,984
877,712
109,452,272

111,282,013
111,282,013
952,029
110,329,984

Adjustment During the Period:


Details are presented below:
Particulars
Land & Land Development
Building
Plant & Machinery
Gas Line Installation & Other Cons.
Total

12.00

Deferred Tax Liability:


This is made-up as follows:
Opening Balance
Add: Provision made

Depreciation Adjustment

Revaluation Surplus
31/12/2014

289,409
41,553
546,750
877,712

94,800,000
9,357,545
373,977
4,920,750
109,452,272

177,352,016
9,397,527
186,749,543

17,425,921
27,774,455
45,200,376
45,200,376

ab
d.
c

13.00

Tax Holiday Reserve:


This is made-up as follows:
Opening Balance
Add: Addition during the year
Total

Revaluation
Surplus
1/1/2014
94,800,000
9,646,954
415,530
5,467,500
110,329,984

om

11.01

Less: Adjustment during the year


Total

115,182,790
62,169,226
177,352,016

10,960,343
6,465,578
17,425,921
17,425,921

Long Term Loan:


This is made-up as follows:
Loan from Bank:
Bangladesh Development Bank Ltd
.A/C No.306011 (Note 14.01)
Total

La

14.00

nk

This represents provision is made for deferred income tax to pay future incom tax liability for temporary
differences.

14.01

38,845,930
38,845,930

Bangladesh Development Bank Ltd.A/C No.306011:


The details of above bank accounts are appended below:
Nature
Sanction Limit
Period
Interest Rate

25,574,500
25,574,500

: Balancing & Expansion


: Tk.14.49 Crore
: 5 years 6 months
: 15% (veriable)

15.00

Short term Loans :


This consists of as follows:
Loan from Bank (CC/ OD):
NRB Bank Ltd. A/c No. 1245(O/D)
NRB Bank Ltd. A/c No. 0392
NRB Bank Ltd. A/c No. 0443 (LATR)
Janata Bank Ltd. A/c No. 010237004755 (Note 15.01)
Total

10,223,838
22,913,599
25,588,323
58,725,760

259,452,733
259,452,733

Janata Bank A/c # 010237004755 :


The details of above bank accounts are appended below:
Nature
: CC (HYPO)
Sanction Limit
: Tk.25.00 Crore
Expiry date
: 28/02/2016
Interest Rate
: 15.50% (veriable)
Renewal Status
: Renewed
Security
: 342 Decimal land at Mokterpur
in Munshigonj District & Ending inventory.

16.00

Provision for Current Tax:


The break-up is as follows:
Opening balance
Add: Addition During the year

ab
d.
c

om

15.01

Liabilities for Expenses & Services :


The break-up is as follows:
Salary & Remuneration
Rent
Utility Bill
Source Tax-Salary
Audit Fees
AGM Expenses

La

17.00

41,689,808
53,916,954
95,606,762
8,982,576
86,624,186

nk

Less: Payment during the year


Total

86,624,186
99,030,122
185,654,308
185,654,308

Add: Accounts Payable & L C Payable


Total

3,314,000
320,500
610,500
28,066
100,000
1,500,000
5,873,066
51,198,093
57,071,159

3,050,000
300,000
566,000
29,913
75,000
1,500,000
5,520,913
32,816,650
38,337,563

This represents amount payable to regular suppliers of raw materials, packing materials, promotional
materials etc. All suppliers were paid on a regular basis.

18.00

18.01

Liabilities for Other Finance :


This is made-up as follows:
Contribution to WPPF
Dividend payable
Total

(Note:18.01)
(Note:18.02)

Contribution to WPPF:
The break-up is as follows:
Opening balance
Add:Addition during the year
Less: Payment during the year
Total

Dividend Payable :
The break-up is as follows:
Opening balance
Add:Addition during the year

Cost of Goods Sold:


This is arrived as follows:
Opening W I P
Raw Material consumed
(Note:20.01)
Packing Material consumed
(Note:20.02)
Less: Closing W I P
Total Consumed
Add: Factory Overhead
(Note:20.03)
Cost of Production
Add: Opening Finished Goods
Finished Goods Available
Less: Closing Finished Goods
Less: Stock Damage
Less: Cost of Sample
Cost of Goods Sold

nk

20.00

Net Turnover :
This is made-up as follows:
Local Sales
Export
Total Turnover

La

19.00

19,761,576
24,298,445
44,060,021
34,455,880
9,604,141

24,877,571
19,761,576
44,639,147
24,877,571
19,761,576

34,500,000
34,500,000
29,169,645
5,330,355

ab
d.
c

Less: Payment during the year


Total

19,751,576
19,751,576

om

18.02

9,604,141
5,330,355
14,934,496

1,392,668,211
2,371,355
1,395,039,566

38,551,087
637,649,576
36,835,104
38,256,785
674,778,982
156,374,713
831,153,695
41,353,223
872,506,918
87,869,574
123,450
510,100
784,003,794

1,224,260,490
2,849,925
1,227,110,415

38,256,755
519,478,518
63,600,879
38,551,087
582,785,065
116,519,251
699,304,316
41,556,780
740,861,096
41,353,223
408,075
651,200
698,448,598

20.01

20.02

Raw Material Consumed :


The break-up is as follows:
Opening Raw Materials
Add: Purchase Raw Materials
Less: Closing Raw Materials
Total

198,386,471
686,730,965
247,467,860
637,649,576

151,732,435
566,132,554
198,386,471
519,478,518

Packing Material Consumed :


The break-up is as follows:
14,285,675

16,154,665

Add: Purchase Packing Materials

41,783,996

61,731,889

Less: Closing Packing Materials

19,234,567

14,285,675

Total

36,835,104

63,600,879

This consists of as follows:


Car Maintenance

om

Factory Overhead :
295,680

189,125

177,200

110,835

94,657,897

61,060,638

57,000

Entertainment Expenses

402,081

658,755

Fuel, Patrol & Lubricant

814,656

703,543

1,913,500

1,469,000

1,814,313

1,184,760

Lab Materials

817,339

1,031,461

Medical Exp

22,677

209,458

Municipal Tax

5,230

10,581

News Paper Bills

2,890

3,025

Other Expenses

100,970

109,385

Printing & Stationery Expenses

755,772

366,389

2,555,685

2,073,970

Research & Development Exp.

10,398,435

13,175,039

Salary & Allowance

33,926,500

26,270,229

123,450

408,075

36,000

Telephone & Postage Exp.

272,238

372,491

Traveling & Conveyance Expenses

754,551

780,224

26,700

43,760

6,536,949

6,195,508

156,374,713

116,519,251

Depreciation
Donation

Rent

nk

Insurance Premium

ab
d.
c

Carrying Exp.

La

20.03

Opening Packing Materials

Repair & Maintenance Expenses

Stock Damage
Training Fees

Uniform Purchase
Utility Bill
Total

Administrative Expenses:
This consists of as follows:
AGM & EGM Expenses
Audit Fees
Bank Charge
Books & periodicals
Car Maintenance
Depreciation
Director Remuneration
Donation
Entertainment Expenses
Fuel, Patrol & Lubricant
IPO Expenses(Written Off)
ISO Certificate
Lease Rent
Legal Expenses
Medical Exp.
News Paper Bill
Rent
Other Expenses
Printing & Stationery Expenses
Product Development Cost (Written off)
Repair & Maintenance Expenses
Registration & Renewal
Regulatory Fees
Salary & Allowance
Telephone & Postage Expenses
Traveling & Conveyance Expenses
Training Fees
Unallocated Revenue Expenditure(Written Off)
Uniform Purchase
Utility Bill
Total

447,634
49,047,592

3,726,129
111,250
113,875
2,450
416,890
10,775,407
325,000
30,000
689,281
394,778
15,914,648
293,250
60,470
46,800
9,507
12,960
546,000
66,902
609,913
2,944,953
337,913
1,311,300
1,549,088
5,961,307
271,924
320,445
9,275
12,556,979
5,560
467,274
59,881,527

Selling & Distribution Expenses:


This is made-up as follows:
Advertisiment Exp.
Car Maintenance
Carrying Charge
Director Remuneration
Donation
Entertainment Expenses
Export Expenses
Fuel, Patrol & Lubricant
Medical Exp.
Marketing & Promotional Exp.

1,234,875
961,918
110,285
325,000
5,000
805,343
334,711
452,565
2,089,268

942,729
546,329
79,752
325,000
75,000
556,365
130,882
518,766
11,044
2,779,991

om

2,781,792
146,125
117,670
30,210
536,714
16,704,335
325,000
65,000
1,426,539
477,739

La

nk

ab
d.
c

21.00

22.00

11,500
2,022
14,875
1,321,950
85,064
869,552
2,944,953
443,593
231,900
7,279,204
11,394,905
634,867
711,450
43,000

News Paper Bill


Other Expenses
Rent
Printing & Stationery Expenses
Repair & Maintenance Expenses
Salary & Allowance
Sample cost
Telephone & Postage Expenses
Traveling & Conveyance Expenses
Utility Bill

12,275
172,441
1,162,500
1,198,913
32,760
7,779,870
510,100
328,486
572,410
367,390
18,456,110

Total

31st December
2014

Earning per share (EPS):

ab
d.
c

The computation is given below:


Surplus for the year
Number of share outstanding during the period
Earning Per Share

Number of shares is calculated below :


Opening balance of outstanding number of shares
Add: Bonus shares issued for the year 2013 (20%)
Add: Weighted number of shares issued for the year 2014
Total

nk

Weighted number of shares is calculated below :


Add: Weighted average number of shares for the year 2014
{1,75,84,000 x 30/365
= 14,45,260}
{8,33,000 x 4/365
= 9,128}
{6,00,000 x 1/365
= 1,643}
Total
24.00 Capital Expenditure Commitment:

La

31st December
2013

om

23.00

8,240
166,294
463,500
1,391,888
33,060
6,433,767
651,200
538,923
933,993
313,996
16,900,719

359,164,323
84,256,031
4.26

334,848,982
69,000,000
4.85

69,000,000
13,800,000
1,456,031
84,256,031

1,456,031

1,456,031

There was no material capital expenditure authorized by the Board but not contracted for at 31st
December 2014.
25.00 Claim not acknowledged as Debt:

There was no claim against the company not acknowledged as debt as on 31st December 2014.
26.00 Un-availed credit Facilities:

There was no credit facility available to the company under any contract, other than trade credit
available in the ordinary course of business and not availed of as on 31st December 2014.
27.00 Number of Employees:

The number of employees engaged for the whole year who received a total remuneration of
Tk.3, 000/- and above per month was 217 for the whole year.

28.00 Contingent liability:

There have been no contingent liabilities to the company except some negligible letter of credits
in the ordinary course of business.
29.00 Related party Transaction :

a) Related party transaction took place for investment in share this year by Active Fine Chemicals Ltd. with
AFC Health Ltd. and AFC Capital Ltd. The name of the related partys transaction had been set out in
accordance with provision of BAS- 24: Related Party details are as follows :

Investment

AFC Solvents Ltd.

Investment

AFC Agro Biotech Ltd.

Investment

AFC Agro Biology Ltd.

Deposit
during the
year

Allotment
made
during the
year

30,000,000

17,000,000
50,000

60,050,000

ab
d.
c

AFC Capital Ltd.

Balance as
on 31st
December,
2013

om

Name of Related Party

Nature of
Transactions

Investment

Share Money Deposit

AFC Capital Ltd.

Share Money Deposit

60,000,000

91,700,000

30,000,000

32,000,000

47,000,000
50,000
60,050,000
100,000
151,700,000

(30,000,000)

32,000,000

nk

AFC Health Ltd.

100,000

Balance as
on 31st
December,
2014

La

b) Further AFC Agro Biotech Ltd. is one of the supplier of Active Fine Chemicals Ltd. during this year
Active Fine Chemicals Ltd. purchase product TK. 3,19,83,630.00 from AFC Agro Biotech Ltd. and
paid TK. 2,60,00,000.00 against purchase after adjusting payable balance of TK. 38,59,854.00
and balance payable to AFC Agro Biotech Ltd. as on 31st December, 2014 was TK. 98,43,484.00.
c) Related party transaction took place during normal course of business with AFC Agro Biotech
Ltd.
30.00 Events after financial position date :
Date of Authorization:
(a) The Board of Directors of Active Fine Chemicals Limited authorized these Financial Statements for
the year ended 2014 in its 116th Board Meeting held on 29th April, 2015.
(b) The Board of Directors at the 116th Board Meeting held on 29th April, 2015 recommended 20% stock
dividend & 6% cash dividend. This will be considered for approval by the shareholders at the 10th
Annual General Meeting (AGM).
(c) There has been no significant event other than above & normal activities between the financial year
closing date and Financial Statement signing date.
Sd./Md. Zia Uddin
Chairman

Sd./S.M Saifur Rahman


Managing Director

Sd./Md. Mahbubur Rahman


Company Secretary

ACTIVE FINE CHEMICALS LTD.


Schedule of Fixed Assets
As at 31st December, 2014

2 Building
3 Plant & Machinery
4 Furniture & Fixture
5 Office Equipment
6 Laboratory Equipment
7 Motor vehicle
Gas Line Installation &
8
Other Cons.
Total

177,989,231

15,889,235

308,772,461

59,879,688

438,379,200

180,997,266

13,118,282

4,537,483

9,910,729

3,065,660

112,203,590

168,853,690

7,361,400

26,645,000

10,227,976

1,077,962,869

Total
193,878,466

459,868,022

Rate

DEPRECIATION
Charged
Opening
during
Total
Balance
the year

0%

368,652,149
619,376,466

17,655,765
12,976,389

281,057,280
34,006,400
10,227,976

1,537,830,891

3%

10%
10%
20%
20%
20%
10%

20,468,627

10,161,369

30,629,996

338,022,153

100,401,314

52,887,783

153,289,097

466,087,369

3,749,137

1,538,702

5,287,839

12,367,926

5,922,896

2,288,712

8,211,608

28,104,314

39,326,087

67,430,401

213,626,879

5,407,730

4,136,780

9,544,510

24,461,890

4,329,793

1,022,798

5,352,590

168,383,809

111,362,231

279,746,040

Note: Depreciation of assets addition has been charged on an average period of one and half months.
Allocation of depreciation charged during the year:
Head of Accounts
Manufacturing
Expenses
Administrative
Expenses

Proportion

Amount

85%

94,657,897

15%

16,704,335

100%

111,362,231

Written
Down
Value

co
m

Land & Land


Development

Opening
Balance

COST
Addition
Disposal
during
during the
the year
year

ab
d.

Particulars

La
nk

SL
No.

Annexure-A

193,878,466

4,764,781

4,875,386
1,258,084,851