Internship Report on

CORPORATE TAX SYSTEM IN BANGLADESH

(A CASE STUDY ON QUASEM DRCELLS LTD.)

Submitted To:
Krishan Chandra Shaha
Assistant Professor
Department of BBA
University of Development Alternative
Dhanmondi Dhaka

Submitted By:
Rukaiya Sarwar Ivy
ID: 021131167
BBA-Program, Batch: 42nd
Major: Accounting
University of Development Alternative

Date of submission: 26th December, 2016

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 Letter of Transmittal

December 26, 2016

Krishan Chandra Shaha

Assistant Professor
University Of Development Alternative
Dhanmondi Dhaka

Subject: Submission of Final Affiliation Internship Report

Dear Sir,
As a part of BBA program, Department of Business Administration in University Of
Development Alternative, an internship report entitled CORPORATE TAX SYSTEM IN
BANGLADESH (A CASE STUDY ON QUASEM DRCELLS LTD.), is submitted to you as s
requirement for partially fulfillment of BBA program. In the course of preparation of the report,
relevant data, concerned books and information were studied and practical knowledge had been
gathered. It has been possible for your proper supervision and sincere guideline.
The experience I have gathered during this period will remain as an invaluable asset of immense
useful in my life. I have tried my level best to complete the report on the due date with my little
knowledge. I also apologize for any kinds of errors and mistakes.

May I, Therefore, wish and hope that you would be gracious enough to accept my effort and
oblige thereby.

Thanking you
Yours Sincerely,

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 Students Declaration
I hereby declare that the presented internship report entitled CORPORATE TAX
SYSTEM IN BANGLADESH (A CASE STUDY ON QUASEM DRCELLS LTD.) has
been carried out by me and has not been previously submitted to any other University,
College or Institution for any academic qualification certificate, diploma.

The work I have presented does not breach any existing copyright and no portion of this
report is copied from any work done earlier for a degree or otherwise.

I also confirm that the report is only prepared for my academic requirement and not for
any other purpose.

..
Rukaiya Sarwar Ivy
ID:021131167
Batch:42nd
Department of BBA
UODA

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 CERTIFICATE OF SUPERVISOR

This is to certify that, Rukaiya Sarwar Ivy , ID: 021131167, BBA-Program, Batch: 42nd , Major:
Accounting, University of Development Alternative , is BBA Program, Department of Business
Administration, University of Development Alternative under the National University of
Bangladesh. She has completed a three month internship program on Analysis of Loans and
Advances Activities of Janata Bank Ltd. At Janata Luxmibazar Bazar Branch under my
supervision which is a fulfillment of partial requirement of obtaining BBA Degree.

I wish her success in all her future endeavors.

Rukaiya Sarwar Ivy

ID: 021131167
BBA-Program, Batch: 42nd
Major: Accounting
University of Development Alternative

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Acknowledgement

First of all, I am expressing my heartfelt gratitude to the Almighty Allah, the most merciful and
the benevolent, for his special kindness to give me the opportunity to complete the internship
successfully and prepare internship report timely.

I would like to express my gratitude to the authority of University of Development Alternative

and to our honorable Dean, Professor Latifur Rahman for providing me the opportunity to
conduct such an essential and practical study which will helpful for me in future professional
life. I also express my heartily gratitude to my honorable internship supervisor Krishan
Chandra Shaha, Assistant Professor, University of Development Alternative who has provided
me support, encouragement, direction of sources and constructive advice to prepare this report
perfectly.

I would like to thank each and every one who directly or indirectly helped me in making this report
including the employees of Quasem Drycells Limited. I am grateful to my event team with whom I have
spent so much time in the last couple of months and I would like to thank the Accounts, Finance,
Tax & Audit department of Quasem Drycells Limited. During my internship program, Mr. Sayed Shahed
Anwar (AGM), Monsur Ahmed (Asstt. Manager),Abdus Samad (Executive), Mohasina Ankhi (executive) of
Accounting Department, Fakrul Alam (Sr. Executive) of Finance Department, Shamim Iqbal (Asstt.
Manager) of Audit Department & Sharwar Hossain AGM of Tax Department of Quasem Drycells helped
me a lot along with Mr. Md. Zakaria, CFO. Last but not least, my special thanks go to my office
supervisor for being so kind to me. He always motivated me and tried to teach me something new
every day.

Lastly, I am very grateful to my family members especially to my parents for their respective
support and inspiration to accomplish my study.

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Executive Summary:

Any academic course of the study has a great value when it has practical application in the real life. Only
a lot of theoretical knowledge will be little important unless it is applicable in the practical life. So I need
proper application of my knowledge to get some benefit from our theoretical knowledge to make it
more fruitful. When i engage myself in a practical field to make proper use of our knowledge, it benefits
us in my practical life. To gather real world knowledge I am assigned to visit a manufacturing industry. So
i have selected Quasem Drycells Limited.

Quasem Drycells Limited is the largest drycell battery manufacturing & first ISO certified company in
Bangladesh of its kind. The journey started in June 14, 1980, where the company brought a new era of
modern battery manufacturing technology in Bangladesh.

The main objective of the study is to understand the income tax assessment of QDL and to give an over
view of QDL and identify the strength, weakness and critical risk factors of this company. Data collected
for the study in two different modes namely primary and secondary. Face to face conversation with the
respective officer of the accounts department of QDL was the main mode to collect primary data.

My report is composed of five chapters. Chapter one: Introduction, Chapter two: : Conceptual Frame
Work, . Chapter three: Profile of Quasem Drycells Limited, Chapter four: Analysis a, . Chapter five:
Findings,Recommendations and Conclusion.

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1.1Introduction

A tax is a financial charge or other levy imposed on an individual or a legal entity by a state or a
functional equivalent of a state. Taxes consist of direct taxes and indirect taxes. Pecuniary burden lay
upon individuals or property to support the government payment exacted by legislative authority. Tax is
not a voluntary payment or donation but an enforced contribution, exacted pursuant to legislative
authority and is any contribution imposed by government whether under the name of VAT, Custom,
Excise, or other name. Taxation means imposition of a non-penal yet compulsory levy for transfer of
resources from private to public sector, imposed by the public representative based on pre-determined
criteria and without reference to any specific commitment, in order to accomplish some nations
economic and social objective. These are dues that we pay for the privileges of membership in an
organized civil society. Tax is imposed in the assessment year based on income year. Total taxes in
Bangladesh are divided into direct and indirect taxes. Direct taxes in Bangladesh consist of taxes on
income (income tax, corporation tax, agricultural income tax) and taxes on property (wealth tax, gift tax,
estate duty, capital gains tax, urban property tax, house rent, land revenue, registration and non-judicial
stamp).

According to Article 152(1) of the Constitution of Bangladesh, taxation includes the imposition of any tax,
rate, duty or impost, whether general, local or special, and tax shall be construed accordingly. Rate is a
local tax imposed by local government on its residents or the property owners of the locality, a duty is a
tax levied on a commodity, and an impost is a tax imposed for an entry into a country. Under the
provision of article 83 of the Constitution, "no tax shall be levied or collected except by or under the

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authority of an Act of Parliament. Bangladesh inherited a system of taxation from its past British and
Pakistani rulers. The system, however, developed based on generally accepted canons and there had
been efforts towards rationalizing the tax administration for optimizing revenue collection, reducing tax
evasion and preventing revenue leakage through system loss.

1.2 Origin of the study:

Corporate Taxation in Bangladesh

Corporate tax or company tax refers to a tax imposed on entities that are taxed at the entity level in a
particular jurisdiction. Such taxes may include income or other taxes. The tax systems of most countries
impose an income tax at the entity level on certain type(s) of entities (company or corporation). Many
systems additionally tax owners or members of those entities on dividends or other distributions by the
entity to the members. The tax generally is imposed on net taxable income. Net taxable income for
corporate tax is generally financial statement income with modifications, and may be defined in great
detail within the system. The rate of tax varies by jurisdiction. The tax may have an alternative base, such
as assets, payroll, or income computed in an alternative manner. Most income tax systems provide that
certain types of corporate events are not taxable transactions. These generally include events related to
formation or reorganization of the corporation. In addition, most systems provide specific rules for
taxation of the entity and/or its members upon winding up or dissolution of the entity.

In systems where financing costs are allowed as reductions of the tax base (tax deductions), rules may
apply that differentiate between classes of member-provided financing. In such systems, items
characterized as interest may be deductible, subject to interest limitations, while items characterized as
dividends are not. Some systems limit deductions based on simple formulas, such as a debt-to-equity
ratio, while other systems have more complex rules. Some systems provide a mechanism whereby
groups of related corporations may obtain benefit from losses, credits, or other items of all members
within the group. Mechanisms include combined or consolidated returns as well as group relief (direct
benefit from items of another member).Most systems also tax company shareholders on distribution of
earnings as dividends. A few systems provide for partial integration of entity and member taxation. This
is often accomplished by "imputation systems" or franking credits. In the past, mechanisms have existed
for advance payment of member tax by corporations; with such payment offsetting entity level tax.

Many systems (particularly sub-country level systems) impose a tax on particular corporate attributes.
Such non-income taxes may be based on capital stock issued or authorized (either by number of shares
or value), total equity, net capital, or other measures unique to corporations. Corporations, like other
entities, may be subject to withholding tax obligations upon making certain varieties of payments to
others. These obligations are generally not the tax of the corporation, but the system may impose
penalties on the corporation or its officers or employees for failing to withhold and pay over such taxes.

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1.3Purpose of the Report

As a business expectative of future, we should have to gather experience beside our survey. We should
not concern our lesion only in classroom but to implement it in practical life that will help us in our
future life .A clear objective help in preparation of well decorated report in which other take the right
type of decision .So, we identifying objectives is very much important. Our purpose of preparing the
report is:

Draw a general picture of corporate taxation system.

To know about the Taxation practice in Bangladesh in respect of corporation and company.

To identifying the tax assessment process of QDL.

To identy the problems and probable solutions related to tax assessment process faced by QDL.

1.4 Scope of the Study

This report has been prepared as a part of the internship program, which is an integral part of the BBA
Program .Under this program a student has to take a total of 128 credits. A student has to take a 3-
month internship program to an organization. This will give a practical orientation of his/ her
theoretical study. After completion of the program she/ he has to submit an internship report to
the department and defense the report. So this report is CORPORATE TAX SYSTEM IN BANGLADESH
(A CASE STUDY ON QUASEM DRCELLS LTD.) originated as part of the course requirement of the BBA
program. This report on was assigned by academic supervisor , Krishan Chandra Saha Assistant

9
Professor, University Of Development Alternative, Dhaka. It is a great opportunity for me to enjoy the
practical experience on tax assessment process as an intern.

1.5Methodology of the Study

This report is based on both primary and secondary data. Initially, the work is started with data those
were available at Companys Annual Report and companys newsletter. Moreover, it becomes helpful to
gather some more information from the website of the company.

1.5.1 Population:

Tax department, Accounts department, and Finance department of QDL have been taken into
consideration as population.

Sample: Quasem Drycells Limited, Corporate Office:F.R. Tower(20 th floor), 32, Kemal Ataturk Avenue
Banani, Dhaka-1213.

Data Collection: The methodology of the study has been designed in the following ways:

Primary sources:

Direct communication with respective officers and staffs of accounts department.

Interviewing of officers and staffs.
Sharing practical knowledge of the officials.
Relevant file study provided by the officers concerned.

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 In- depth study of the selected cases.

Secondary sources:

Annual Reports of QDL

Auditors report.
Relevant Books
Manuals
Website

1.5.2 Data processing & analysis:

Collected information is processed by the use of computer system. Then I analyze those data from many
angles, in different aspect and present the information in different segment according to their category,
in compact way. I have highlighted different important things, which i found during my survey. After
doing all of those I submit the report to the proper authority.

1.6 Limitation of the study

I have faced some usual constraints during the study. These are as follows:
Relevant papers and documents were not available with sufficient data.
Enough information was not found to make a comprehensive study.
I had to complete this study within a very short time, which was not sufficient.
Improper combination among various departments
In spite of my sincerity, some mistakes might have been occurred. I admit my
responsibility for those inadvertent mistakes, if any.

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2.1Some Important Issues Relevant to the Determining Tax of the Corporation and the Company

Determination of Tax Liabilities:

Corporation and the Company is different to some extent from other assesses in the following ways:

a) There is no maximum taxable income limit for the Corporation and the Company i.e. they are to pay
tax on their total income whether maybe the amount.

b) Proportionate tax rate is applicable on total income of the Corporation and the company. Such
proportionate tax rate is 30% to 45% applicable on the basis of nature of the Company. According to the
Finance Act, 2015 tax rate is as follows:

Table No.:1.Tax Rate for Corporate Taxpayers:

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 Particulars Tax Rate 2015-16
1 Publicly Traded Company 25%
2 Non- Publicly Traded Company 30%
3 Bank, Insurance & Financial Institutions
(Except Merchant Bank):
-Publicly Listed & 4th Generation Financial Institutions 40%
-Other banks & Financial institutions 42.5%
4 Merchant Bank 37.5%
5 Cigarette manufacturing company/Others 45%
6 Mobile phone operator company 45%
7 Publicly traded mobile phone company 40%

c) The tax rate on the capital gains of the company is 15%.

d) There is no directly deductible non-taxable income from the total income of the company.

e) According to the sections 45 and 46 of ITO, 1984, Dividend from the company or the corporation
under Tax Holiday Scheme is exempted in full.

f) The account audited by the Chartered Accountants are to be submitted with the Income Tax Return of
the company assesses.

2.2Tax Free Income Incase of the Company and the Corporation

The Company and the Corporation are entitled to enjoy the tax rebate at an average rate on the
following tax-free income: Dividend Received from the Company under Tax Holiday Scheme. In addition
to the above tax-free income, no tax is imposed on the following income as per ITO, 1984:

Issues of bonus shares: original value or amount of bonus issued by the Company and the Corporation
among the shareholders to increase the amount of paid up capital.

2.3Admissible Expenses:

i) Contribution to Recognized Provident fund of employees.

ii) Loss of stock due to fire.
iii) Retirement benefit or gratuity paid to employees.
iv) License renewal fees.
v) Sale tax/value added tax, water & road tax, excise duty etc.
vi) Legal expenses against users of trade mark illegally, partnership agreement preparation,
violator agreement.
vii) Compensation to employees for accident in the course of service. Perquisites to any
employee can give up to TK. 1, 50,000. Any amount exceeding this celling will be taxable.
viii) Revenue expenditure for advertisement.

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 ix) Royalty and patent right fees.
x) Cost of accounting and audit.
xi) Commission and brokerage for sale of product.
xii) Reward to employees for increased efficiency.
xiii) All revenue expenditure treated as admissible expenses.

2.4Non allowable expenses:

i) Past losses, if business are changed.

ii) Salary, commission, and remuneration paid to partners.
iii) Interest on capital to partner.
iv) Income-tax and supper tax.
v) Legal expenses incurred for income tax and dissolution of enterprise.
vi) Bad debt reserve or reserve for discount.
vii) Contribution to Un-recognized Provident Fund.
viii) Contingency liability.
ix) Preliminary expenses, under-writing commission, writing off share discount.
x) Loss of speculative business.
xi) Loss for investment in securities.
xii) Capital expenditure for advertisement.
xiii) Legal expenses related with compensation for sale knowing it defective by seller.
xiv) Brokerage for capital.
xv) Expenses for protecting against competition.
xvi) New years day presentation to employee.
xvii) Fund embezzlement by employees after office hour.
xviii) All capital expenditure treated as inadmissible expenses.

A rebate @ 10% of the tax shall be allowed to a company registered in Bangladesh under the
Bangladesh through official channel and invest directly to the new industries or any auctioned industry
of the Government or purchases stock, shares , Government bond and securities then such income will
be fully exempted from tax.

It is also be noted here that according to Finance Act, 1993 if any assesses in Bangladesh brings his
income earned outside Bangladesh through official channel and invest directly to the new industries or
any auctioned industry of the Government or purchases stock, shares , Government bond and securities
then such income will be fully exempted from tax

A further rebate to a company incorporate under the Company Act, 1994 if engaged in the productions
of goods, shall be allowed at the following rate:

Table No.:2

Particulars Rebate amount

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 1.1 Where the productions in volume of the relevantyear 2.5% of the Income Tax
exceeds 15% but does not exceeds 25% of the productions attributable to such income.
volume of the preceding year
1.2 Where the production in volume of the relevantyear 5% of the Income
exceeds 25% of that of the preceding year. Taxattributable to suchincome.
1.3 Where the total income includes income receivedfrom Life 12.5% would bereduced from
Assurance Business. suchincome.
2 On the amount of Dividend received from acompany 15%.
registered in Bangladesh under theCompany Act or a body
corporate formed in pursuance of an Act of Jatio Sangsad.

2.5Ordinance of income tax: According to Income Tax Manual, Part-1

Section-75: Return of income.

1) Save as provided in section 76, every person shall file or cause to be filed, with the Deputy
Commissioner of Taxes, a return of his income or the income of any other person in respect of which he
is assessable to tax under this Ordinance,

- (a) if his total income during the income year exceeded the maximum amount which is
not chargeable to tax under this Ordinance, or

(b) if he was assessed to tax for any one of the 1[three years] immediately
preceding that income year:

2[Provided that any non-resident Bangladeshi may file his return of income along
with bank draft equivalent to the tax liability, if any, on the basis of such return, to his
nearest Bangladesh mission and the mission will issue a receipt of such return with official seal
and send the return to the Board.]

3[(1A) Where a person is not required to file a return of income under sub-section (1), he shall
file a return of his income during the income year, on or before the date specified in clause (c) of
subsection (2), if he-

(a) resides within the limits of a city corporation or a paurashava or a divisional headquarters or district
headquarters and who at any time during the relevant income year fulfills any of the
following conditions, namely:

-4[(i) ***]

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(ii) owns a motor car;

5[(iii) ***]

(iv) owns a membership of a club registered under

(b) runs any business or profession having trade license from a city corporation, a
paurashava or a union parishad, and operates a bank account;

(c) has registered with a recognized professional body as a doctor, dentist, lawyer,
income tax practitioner , chartered accountant, cost and management accountant ,
engineer, architect or surveyor orany other similar profession;

(d) member of a chamber of commerce and industries or a trade association;

(e) is a candidate for an office of any 1[***] paurashava, city corporation, or a

Member of Parliament;

(f) participates in a tender floated by the government, semi-government,

autonomous body or a local authority;

2[(g)***]

3[(h) any non-government organisation registered with NGO Affairs Bureau.]

Explanation.-In this sub-section, the term "motor car" means a motor car as defined in clause (25) of
section 2 of the Motor Vehicles Ordinance 1983 (LV of 1983) and includes a jeep and a micro-bus.]

4[(1B) Not withstanding anything contained in sub-section (1) and (1A), every company shall file a return
of its income or the income of any other person for whom the company is assessable, on or before the
date specified in clause (c) of sub-section (2);]

(2) The return under sub-section 1[(1), (1A) and (1B) shall be-

(a) furnished in the prescribed form setting forth therein such particulars and
information as may be required thereby including the total income of the assessee;

(b) signed and verified-

(i) in the case of an individual, by the individual himself ; where the individual is
absent from Bangladesh, by the individual concerned or by some person duly
authorised by him in this behalf; and when the individual is mentally incapacitated
from attending to his affairs, by his guardian or by any other person competent to act on
his behalf ;

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 (ii) in the case of Hindu undivided family, by the Karta, and, where the Karta is absent
from Bangladesh or is mentally incapacitated from attending to his affairs, by any
other adult member of such family ;

(iii) in the case of a company or local authority, by the principal officer thereof ;

(iv) in the case of a firm, by any partner thereof, not being a minor;

(v) in the case of any other association, by any member of the association or the
principal officer thereof ; and

(vi) in the case of any other person, by that person or by some person competent to act
on his behalf;

(c) filed, unless the date is extended under sub-section (3),-

(i) in the case of a company, by the fifteenth day of July next following the income year
or, where the fifteenth day of July falls before the expiry of six months from the end
of the income year, before the expiry of such six months; and

[(ii) in all other cases, by the thirtieth day of September next following the income year:

Provided that an individual being Government official engaged in higher

education on deputation or employed under lien outside Bangladesh shall file return
or returns for the period of such deputation or lien, at a time, within three months
from the date of his return to Bangladesh; and]

[(d) accompanied by-

3 [(i) in the case of individual, a statement in the prescribed form and verified in the
prescribed manner giving particulars of his life style]

4[:Provided that an individual, not being a shareholder director of a company, having

income from salary or income not exceeding three lakh taka from business or
profession may opt not to submit such statement;]

(ii) in the case of an individual 5[***], a statement in the prescribed form and
verified in the prescribed manner giving particulars specified in section 80 in respect
of himself, his spouse, his minor children and dependants;

6[(iii) In the case of a company, an audited statement of accounts and where the
profit or loss of a business is different from profit or loss disclosed in the return of
income in accordance with the provision of this Ordinance, a computation

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 sheet showing how the income shown in the return is arrived at on the basis of
profit and loss account.]]

(3) The last date for the submission of return as specified in sub-section (2) may be
extended by the Deputy Commissioner of Taxes in respect of any person or class of
persons:

1[Provided that the Deputy Commissioner of Taxes may extend the date up to three months
from the date so specified and he may further extend the date up to three months with
the approval of the Inspecting Joint Commissioner 2[.(Provison)***]

[75A. Return of withholding tax.-(1) Every person, being a company, shall file or cause to be
filed, with the Deputy Commissioner of Taxes where he is being assessed, a return of
withholding tax collected or deducted as per provisions of Chapter VII of this Ordinance.

(2) The return under sub-section (1) shall be-

(a) furnished in the prescribed form setting forth therein such particulars and
information as may be required thereby;

(b) signed and verified by the principal officer thereof;

(c) filed quarterly, unless the date is extended under sub-section (3), by the
fifteenth day of October, January, April and July of the financial year for which the
tax is deducted or collected;

(d) accompanied by a statement of deduction or collection of tax along with copy

of treasury challans or payment orders.

(3) The last date for the submission of return as specified in sub-section (2) may be
extended by the Deputy Commissioner of Taxes upto fifteen days from the date so
specified.

1[(4) Where the Deputy Commissioner of Taxes, after examining the return submitted
under this section, finds any person, required by or under the provisions of chapter VII of
this Ordinance to deduct, collect or pay to the credit of the Government tax, has failed

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 so to deduct, collect or pay, shall deem such person an assessee in default under sub-section
(1) of section 57.]

75B. Obligation to furnish Annual Information Return.-(1) Government may, by notification in the
official gazette, require any person or group of persons responsible for registering or maintaining
books of account or other documents containing a record of any specified financial transaction,
under any law for the time being in force, to furnish an Annual Information Return, in respect of such
specified financial transaction.

(2) The Annual Information Return referred to in sub-section (1) shall be furnished to the
Board or any other income tax authority or agency, in such form, manner and within such
time as may be prescribed.

75C.Concurrent jurisdiction.-Board may, by general or a special order in writing, direct that in

respect of all or any proceedings relating to receiving of return of income and issuance of
acknowledgement thereof in accordance with the provisions of section 75, 77, 78, 89(2), 91(3) or
93(1), the powers and functions of the Deputy Commissioner of Taxes shall be concurrently
exercised by such other authority as may be specified by the Board.]

76. Certificate in place of return.-Where the entire total income of an assessee during the income year
consisted of income classifiable under the head "Salaries" or any other income from which the full
amount of tax payable by him has been deducted, such assessee may, instead of filing a return
under section 75, file a certificate in such form as may be prescribed accompanied, where applicable,
by a statement referred to in section 75 (2) (d) ; and the certificate and statement so filed shall
be deemed for all purposes of this Ordinance to be a return and statement filed under that section.

77. Notice for filing return.-1[(1) The Deputy Commissioner of Taxes may, at any time after expiry of
the date specified in section 75, by a notice in writing, require-

(a) any person, other than a company, to file a return of his total income as provided in
that section if, in the opinion of the Deputy Commissioner of Taxes the total income of
such person was, during the income year, of such amount as to render liable to tax;

19
 (b) any company to file a return of its total income, if it is not filed.]

(2) The return under sub-section (1) shall be filed within such period, not being less than
2[twenty-one days], as may be specified in the notice or within such extended period as the Deputy
Commissioner of Taxes may allow.

78. Filing of revised return.-Any person who has not filed a return as required by section 75 or 77 or
who, having filed return, discovers any omission or incorrect statement therein, may, without
prejudice to any liability which he may have incurred on this account, file a return or a revised return,
as the case may be, at any time before the assessment is made.

79. Production of accounts and documents.-The Deputy Commissioner of Taxes may, by notice in
writing, require an assessee who has filed a return under section 75, or to whom a notice has
been issued under section 77, to produce or cause to be produced 3[such accounts, statements and
documents] on such date as may be specified in the notice, such accounts, statements and documents
including those relating to any period, not being earlier than three years prior to the income year, as he
may consider necessary for the purpose of making an assessment under this Ordinance.

80. 1[Statements of assets, liabilities and life style].-(1) The Deputy Commissioner of Taxes
may, by notice in writing, require an assessee to file by the date specified in the notice2[statements]
giving particulars in respect of the following unless they have already been given in or with return
filed under section 75, 77 or 78, or with a certificate filed under section 76 namely :-

(a) the total assets, liabilities and expenses of the assessee as on the date or dates
specified in the notice ;

(b) the total assets, liabilities and expenses of the spouse, minor children and dependents
of the assessee as on the date or dates so specified ; and

(c) any assets transferred by the assessee to any person during the period or periods so
specified, and the consideration therefor 3[;

(d) particulars of life style of the assessee.]

(2) The 4[statements] to be filed under sub-section (1) shall be prepared in such form and verified
in such manner as may be prescribed.

81. Provisional assessment.-(1) The Deputy Commissioner of Taxes may, at any time after the first day
of July of the year for which the assessment is to be made, proceed to make, in a summary
manner, a provisional assessment of the tax payable by the assessee on the basis of the return and
the accounts and documents, if any, accompanying it and where no return has been filed, on the basis
of the last assessment including an assessment under this section.

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(2) In making a provisional assessment under this section, the Deputy Commissioner of Taxes shall-

(a) rectify any arithmetical errors in the return, accounts and documents;

(b) allow, on the basis of the information available from the return, accounts and
documents, such allowances as are admissible under the Third Schedule and any loss carried
forward under section 38 or 39 or 41.

(3) For the purposes of payment and recovery, the tax as determined to be payable upon
provisional assessment shall have effect as if it were determined upon regular assessment.

(4) The tax paid or deemed to have been paid under Chapter VII, in respect of any income provisionally
assessed under sub-section (1), shall be deemed to have been paid towards the provisional
assessment.

(5) Any amount paid or deemed to have been paid towards provisional assessment under this
section shall be deemed to have been paid towards regular assessment ; and the amount paid
or deemed to have been paid towards provisional assessment in excess of the amount found
payable after regular assessment shall be refunded to the assessee.

(6) Nothing done or suffered by reason or in consequence of any provisional assessment made under
this section shall prejudice the determination on merit of any issue which may arise in the course of
regular assessment.

(7) There shall be no right of appeal against a provisional assessment under this section.

[82. Assessment on correct return.-Where a return or a revised return has been filed under Chapter VIII
and the Deputy Commissioner of Taxes is satisfied, without requiring the presence of the assessee or
the production of any evidence, that the return is correct and complete, he shall assess the total
income of the assessee and determine the tax payable by him on the basis of such return and
communicate the assessment order to the assessee within thirty days next following :

Provided that -

(a) such return shall be filed on or before the date specified in clause (c) of sub-section (2) of
section 75;

(b) the amount of tax payable shall be paid on or before the date on which the return is filed;2[***]

(c) such return does not show any loss or lesser income than the last assessed income, or assessment on
the basis of such return does not result in refund3[; and

(d) such return shall mention twelve-digit Taxpayer's Identification Number.]4

21
[82A. Assessment under simplified procedure.-Where, an assessee, other than a public limited
company as defined in the Companies Act, 1913 (VII of 1913) or , who has previously been
assessed for any assessment year ended on or before the thirtieth day of June, 1995, files a return
showing income for the income year relevant to the assessment year commencing on or after
the first day of July, 1995 and ending on or before the thirtieth day of June, 1997 and the income
shown in such return is higher by not less than ten per cent. over the last assessed income and
has also increased by at least a further sum of ten per cent. for each preceeding assessment
year in respect of which the assessment is pending, the return filed by the assessee shall be
deemed to be correct and complete, and the Deputy Commissioner of Taxes shall assess the total
income of the assessee on the basis of such return and determine the tax payable by him 5[on
the basis of such assessment, and communicate the assessment order to the assessee within thirty
days next following],provided-

(a) he has, at thetime of filing such return, made payment of the tax on the basis of the return,
or taka twelve hundred, whichever is higher, and the assessment on the basis of such return shall
not result in any refund; 1[***]2

[(b) the net accretion of his wealth, if heis required to submit statement of assets and liabilities
under section 75 (2) (d), along with his disclosed family expenses and taxes paid during the year,
shall not exceed the income disclosed for the year and the income or receipt, if any, exempted from
tax] 3[; and

(c) such return contains twelve-digit Taxpayer's Identification Number (TIN).]

4[(82B.)***]5[82BB. Universal Self-Assessment.-(1) 6[Subject to sub-section (3), where an assessee,

either manually or electronically,] furnishes a correct and complete return of income 7[***], the
Deputy Commissioner of Taxes shall receive such return himself or cause to be received by any other
official authorised by him and issue a receipt of such return 8[manually or electronically] and the
said receipt shall be deemed to be an order of assessment for the assessment year for which the
return is filed.9

[(2) A return shall be taken to be completed, if

(a)it is filed in accordance with provision of sub-section (2) or sub-section (3) of section 75;

(b)tax has been paid in accordance with provision of section 74; and

(c)twelve-digit Taxpayer's Identification Number (TIN) is mentioned in it.]

22
(3) Notwithstanding anything contained in sub-section (1) 10[***], the Board or any authority
subordinate to the Board, if so authorised by the Board in this behalf, may select, in the manner to be
determined by the Board,

1[a number of these returns filedunder sub-section (1)] and refer the returns so selected to the
Deputy Commissioner of Taxes for the purpose of audit and the Deputy Commissioner of Taxes shall
thereupon proceed, if so required, to make the assessment under section 83 or section 84, as the case
may be 2[:

Provided that a return of income filed under this section shall not be selected for audit where
such return shows at least twenty per cent higher income than the income assessed or shown in
the return of the immediately preceding assessment year and such return-

(a)is accompanied by corroborative evidence in support of income exempted from tax;

(b)is accompanied by a copy of bank statement or account statement, as the case may be, in support
of any sum or aggregate of sums of loan exceeding taka five lakh takenfrom any person during the
income year;

(c)does not show receipt of gift during the year;

(d)does not show any income chargeable to tax at a rate reduced under section 44; or

(e) does not show or result any refund.]

3[(Proviso)***]4

[(4) No question as to the source of investment made by a new assessee deriving income from
business or profession shall be raised, if he shows income at least not less than twenty five
percent of the capital invested in business or profession and pays tax on such income before filing of
income.

[(5) The initial capital investment of business or profession or any fraction of such initial capital shall
not be transferred from that business or profession within the income year when the investment
was made or within five years from the end of that income year.]]

Title of the Report:

The Title of the report is CORPORATE TAX SYSTEM IN BANGLADESH (A CASE STUDY ON QUASEM
DRCELLS LTD.)

23
3.1Background of Quasem Drycells Limited:

Quasem Drycells Ltd. (QDL) established in 1980 is the largest and first ISO certified drycell
manufacturing Company in Bangladesh, featuring the most modern battery manufacturing technology in
the country. The history of Quasem Group dates back to 1950, when the organization started its first
business with the establishment of a trading house. Over the coming decades, the founder of Quasem
Group, the Late Mr. Abul Quasem, diversified the business interests group in making investments in mills
and factories in the Cotton and Textile industries. Following the death of Mr. Quasem, his three sons took
over and went into further expansion projects from the light engineering sector to food sector.Today QDL
has emerged as the leading manufacturer of UM-1, UM-3 and UM-4 batteries, which is reflected by the
local market share of over 75% that the QDL brand SUNLITE currently enjoys. In addition to being the
most popular brand in Bangladesh, SUNLITE is also considered to be the most high-quality battery
available in Bangladesh, this is reputation is reflected in the high price point the battery occupies in the
market when compared to other local competitors, which it can maintain while still having the biggest
market-share.

QDL is a public Limited Company and is listed in Dhaka Stock Exchange (DSE) and the Chittagong Stock
Exchange (CSE) and has been designated a Blue Chip Company.

In order to increase the demand for batteries on Bangladesh, QDL started importing and assembling
different types of LED flashlights in 2007, using the well-established SUNLITE brand name to market this
new product. The QDL factory has since installed state-of-the-art injection molding machines of their in
order to be able to do most of the manufacturing for these flashlights on premises, therefore reducing
the need for imported components and increasing the value added properties of the flashlights. . In
addition to their business activities, Quasem Group owns a fully funded a charitable organization called
Quasem Foundation which operates a 100 Bed Eye Hospital, Maternity & Child Welfare Center and a few
tertiary eye-care centers in Ulipur and the surrounding Kurigram area for the benefit of the people of
Bangladesh most impoverished region. QDL have some sister concerns:

Quasem Zinc Limited

Quasem Lamps Limited

Aircraft& aviation logistics

Sunlite Trading & Services Limited

Quasem Food Products Limited

Quasem Foundation

3.2 COMPANY PROFILE

Quasem Drycells Limited

24
Year of Establishment : 1980

Initial Public Offering (IPO) : 1988

Stock Exchange Listing : 1988

Awarded ISI-9001 Certificate: 2000

Business Line : Manufacturing & Marketing of UM-1 (D-Size), UM-3 (AA),

UM-4 (AAA), Metal Jacket Drycells Batteries, Metal Can. Flashlights, Gas
Lighter, Real Potato Chips

Authorized Capital : Tk.2000 Million

Paid up Capital as on 30.12.2015 : Tk. 40,47,94,360.00

No. of Shares Issued as on 20.12.15 : 4,04,79,436

Address: 20-22nd Floor, F.R. Tower 32 Kemal Ataturk Avenue Banani, Dhaka-1213, Bangladesh.

Phone: +88-02-9820649-52

Fax:+880-2-9820647

Email: info@quasemdrycells.com

3.3Corporate Vision

Quasem Drycells Ltd business model is based on their vision of bringing new levels of manufacturing
excellence to Bangladesh. Quasem Drycells Ltd aim to provide high quality and innovative products that
fulfill the needs of Bangladeshi citizens from all walks of life. They also look to provide our shareholders
with a healthy dividend on a regular basis and plan to achieve financial success by following ethical
business practices and by never compromising on the quality of the product they are delivering to their
customers.

3.4Corporate Mission

25
The Mission of Quasem Drycells Limited is to be the Premier Drycell battery manufacturer in Bangladesh
through our commitment to maintaining high manufacturing standards and our dedication to honest and
sustainable business practices. An important part of realizing our mission is to ensure that the SUNLITE
brand in Bangladesh is a name that inspires trust from our citizens, to do this we must ensure that we
adhere to strict procedures and standards of excellence both in our manufacturing and distribution
sectors. In addition to providing their shareholders with consistent and healthy dividends, they also must
ensure that the company is socially responsible, they are committed to ensuring that profits from the
company not only go into further growing of business but also into developing the nation and improving
the lives of its citizens.

3.5Corporate Values

Quasem Drycells Ltd values their commitment to setting and achieving the highest standards in
manufacturing. In addition to setting high standard they are also committed to keeping in-line with the
latest technological advancements in in field to ensure that they are delivering the best possible product
to customers.

Quasem Drycells Ltd. values their need to be price competitive while not sacrificing on product quality.

Quasem Drycells Ltd values the need to create an honest, open and enabling environment for their
employees, making sure that employees are happy with their jobs is of utmost importance, as is
ensuring that they are consistently developing the capacity of their human resources.

Quasem Drycells Ltd values the trust shown on them by the shareholders and strives to ensure they are
rewarded for their loyalty to the company.

Quasem Drycells Ltd value the needs of the customers, they are committed to building a relationship
with them based on integrity, loyalty and trust.

Quasem Drycells Ltd value the need to not just make a healthy profit for the shareholders, but also to
be a socially responsible company that is dedicated to improving the lives of the people of Bangladesh
through charitable projects.

3.6 organizational structure of QDL:

3.7Management of QDL

Quasem Drycells Limited, a concern of QUASEM GROUP, is mainly operated by its Managing Director, Mr.
Tasvir UI Islam, the youngest son of late Mr.Abul Quasem, who was the founder Chairman of the entire
Group.Mr.Tasvir UI Islam completed H.N.D. (Business Studies) from UK & B.S. (Business Administration)
from USA. In 1980, he joined inQuasem Drycells Limited (QDL) as a Director. Since then he has been
involved in the Management of QDL till 1997 when he was elected as the Managing Director of the

26
Company. The Management of QDL is operated by skilled professional executives and it adopted ISO
9002 in the year 2001 for implementation of the Quality Management in the organization which was
updated to ISO 9001:2000 in the year 2003.The Management is using different tools of Quality
Management to improve the efficiency of the organization and working for implementation of TQM
(Total Quality Management).

3.8PRODUCTS IN BRIEF:

Product Name: UM-4 (R-3) 'AAA' Sized

Specialty

: High Standard & Qualitative Application

: Remote control, Camera, Walkman Calculator, Pager etc.

Product Name: UM-1 (R-20) 'D' Sized

Specialty: Metal Jacket Hi Power

Leak Proof.

27
Application

: Cassette Player, Radio,

Torch and Toy etc.

3.8Marketing & Distribution

QDLis holding 45% market share for D size UM-1 Drycell battery and 60% for AAsize UM-3 drycell battery
of the total market in Bangladesh by implementing modern marketing and effective distribution system.
Efficient marketing and promotion of the products is a key success element in the drycell industry. For
this reason the QDL Management has a dedicated team in the head office that analyses data received
from the field and also from other sources to formulate marketing plans on an annual basis. Quasem
Drycells Ltd.(QDL) has established sales relationships with over 10,000 wholesalers and 250,000 retailers
throughout Bangladesh. There are 92distributors and 350 sales officers employed by both QDL and the
distributors for monitoring and controlling the distribution system .QDL has 150 vehicles comprising of
vans, scooters, rickshaws and others .QDL employs 35 direct sales executives who monitor the
performance of the distributors. They also provide information regarding competition and the
effectiveness of marketing strategies.

3.8Research & Development

28
Quasem Drycells Limited has a laboratory with most modern equipment and technology where a team
of highly skilled & efficient workforce is engaged to improve the product quality through extensive
research & development work

4.1Procedure of Assessment
Generally the followings steps are followed in case of Assessment of the Company and the Corporation:

Computation of Total income.

step-1

step-2
Computation of " Tax Provision".

step-3
Computaion of Income Tax Expenses.

According to Sections 28, 29 and 30 of ITO, 1984 Income from business is to be calculated after
considering admissible and inadmissible expenses to this end.

Total Income of the Company is to be calculated by adding other income with income from business.

Total Tax liabilities are to be determining by applying prescribed tax rate. Net Tax liability is to be
ascertained by deducting the following tax rebate from Total Tax liabilities:

10% Tax rebate on foreign income

Tax rebate on increased production in case of industrial company, if applicable.

Tax rebate on export income (at rate applicable)

Tax rebate and average rate on tax free income.

29
4.2Step-1: calculation of total taxable income:
To calculate income tax provision firstly we have to calculate the total income of assesse. Total income is
the addition of income from business, capital gain income, and income from securities, income from
house properties, agricultural income and income from other sources.

Assessee: Quasem Drycells Limited

Status: Resident

Income Year: 2006 2007

Assessment Year: 2007- 2008

Determination of Total Income and Tax Liability

Statement of income of the Company

Line Particulars of income Taxable Exempted/ Total income

income Tax Holiday
income
2.13 Income from business or profession, u/s 28 110,219,388 5,582,690 104,636,698
2.14 Capital gain income, u/s 31 - - -
2.15 Interest on securities, u/s 22 - - -
2.16 Income from house property, u/s 24 - - -
2.17 Agricultural income, u/s 26 - - -
2.18 Income from other sources, u/s 33 1,434,407 - 1,434,407
2.19 Total income 111,653,795 5,582,690 106,071,105
(Line 2.13+2.14+2.15+2.16+2.17+2.18+2.19)

30
After the computation of total income, income tax provision is calculated by tax
department.
4.3Step-2&3: Calculation of Tax Provision & I.T. expenses:

Income tax provision/liability= total income X tax rate.

When the company import raw material from foreign country Govt. demand an amount
of tax for the product and the company paid that amount in form of advance tax, which
is later adjusted by the NRB.

Income tax payments of the Company

Line Particulars Amount in

taka
2.20 Total income (Line 2.19) 106,071,105
2.21 Income tax liability 23,946,657
2.22 Tax deducted/Collected at source 22,155,682
2.23 Advance tax -
2.24 Adjustment of tax refund (if any) -
2.25 Net tax payable {Line 2.21-(2.22+2.23+2.24)} /(Refundable) (1,790,975)
2.26 Tax payment (As per line 2.25) -

Particulars of Income/Expenses

Line Particulars of income Current Year Previous Year

2.27 Sales / Turnover / Receipts 1,851,560987 1,689,108,860
Less : VAT (if any)
Net Sales
2.28 Cost of Sales 1,499,993,292 1,369,606,557
2.29 Gross Profit (Line 2.27-2.28) 351,567,695 319,502,303
2.30 Other Operating Income 1,434,407 32,478,390
2.31 Administrative Expenses 99,988,373 97,052,023

31
2.32 Selling & Marketing Expenses 116,019,070 109,993,163
2.33 Other Operating Expenses - -
2.34 Profit from Operations {Line 2.29+2.30- 136,994,659 144,935,507
(2.31+2.32+2.33)}
2.35 Financial Expenses 54,619,077 66,117,859
2.36 Income from Associates / Subsidiaries - -
2.37 Profit before Tax(Line 2.34+2.36-2.35) 82,375,582 78,817,649

PARTICULARS OF BALANCE SHEET

Lin Assets Current Year Previous Year

e
2.38 Property, plant and equipment 1,786,097,097 1,676,777,275
2.39 Goodwill - -
2.40 Manufacturing license /Patent right /Franchise fee - -
2.41 Investments in associate / Subsidiary company 16,517,344 16,517,344
2.42 Other financial assets 100,501,976 115,468,326
2.43 Total Non-Current Assets :(Line 2.38+2.39+2.40 +2.41+2.42) 1,903,116,417 1,808,762,945
2.44 Inventories 397,075,462 414,876,538
2.45 Trade and other receivables 78,129,776 64,881,437
2.46 Advance, Deposits & Prepayments 62,865,955 66,643,187
2.47 Cash / Bank and cash equivalents 25,436,547 17,045,995
2.48 Other 98,948,880 108,265,763
2.49 Total current assets (Line 2.44+2.45+2.46+2.47+2.48) 662,456,620 671,712,920
2.50 Total Assets (Line 2.43+2.49) 2,565,878,125 2,480,475,865
Equity & Liabilities
2.51 Paid-up capital 404,794,368 367,994,880
2.52 Reserves & Surplus 1,516,886,839 1,472,194,736
2.53 Retained earnings - -
2.54 Total equity capital (Line 2.51+2.52+2.53) 1,921,681,207 1,840,189,616
2.55 Bonds / Debentures - -
2.56 Long term borrowings - -
2.57 Others 21,423,932 (583,734)

32
2.58 Total Non-current liabilities (Line 2.55 + 2.56 + 2.57) (583,734) (454,433)
2.59 Short term borrowings 436,827,105 486,412,447
2.60 Creditors/Payables 44,758,025 17,381,152
2.61 Provisions 40,416,482 29,691,650
2.62 Others 118,868,371 99,641,194
2.63 Total Current liabilities (Line 2.59+2.60+2.61+2.62) 640,869,983 633,126,443
2.64 Total Equity & Liabilities (Line 2.54+2.58+2.63) 2,480,475,865 2,434,781,576

4.4 Comprehensive assessment of Tax

Quasem Drycells Limited

Comprehensive tax assessment statement for last four years

Table No.:4

Year PBT Tax Rate PIT D.T. L/(A) I.T.E PAT AIT
2015-16 106,071,10 25% 26,517,776 (2,571,119) 23,946,657 82,124,448 22,155,683
5
2014-15 74,876,767 25% 19,227,177 (129,301.00 19,097,877 55,778,890 20,816,265
)
2013-14 71,276,959 27.5% 19,601,164 (103,180) 19,601,164 51,778,975 19,857,281
2012-13 44,270,031 27.5% 12,174,258 (3,563,848) 12,174,258 35,660,243 9,438,190

4.5Presentation of operational activities:

4.5Financial position Analysis: Table No:3

Quasem Drycells Limited

Statement of financial position

Particulars 2016 2015 2014 2013

Asset
Non-Current Asset 1,903,421,505 1,808,762,945 1,765,311,792 1,729,031,732
Property, Plant & 1,786,097,097 1,676,777,257 1,638,134,200 1,670,441,409
Equipment
Capital WIP 97,822,432 112,385,487 107,468,298 38,759,664
Investment 16,517,344 3,082,839 3,191,959 3,313,315
Other Asset 2,984,632 16,517,344 16,517,344 16,517,344
Current Asset 662,456,620 671,712,920 669,469,784 531,367,645
Inventories 397,075,462 414,876,538 434,869,383 328,760,024

33
Advance, Deposit & 62,865,955 64,881,437 56,644,366 22,326,350
Payment s
Trade Other Receivables 78,129,776 66,643,187 71,452,111 90,250,907
Advance Income tax 98,948,880 108,265,763 87,449,498 67,592,217
Cash & Cash Equivalents 25,436,547 17,045,995 19,054,425 22,438,147
Total Assets 2,565,878,125 2,480,475,865 2,434,781,576 2,260,399,377
Equity & Liabilities
Shareholders Equity 1,921,681,207 1,840,189,616 1,802,109,566 1,750,330,591
Share Capital 404,794,368 367,994,880 334,540,800 304,128,000
Share Premium 198,000,000 198,000,000 198,000,000 198,000,000
Reserve & Surplus 200,088,360 1,136,792,026 1,155,440,574 1,174,772,725
Revolution Surplus 1,118,796,476 137,402,710 114,128,192 73,429,866
Total Equity 1,921,681,207 1,840,189,616 1,802,109,566 1,750,330,591
Non-Current Liabilities 21,423,932 (583,734) (454,433) (351,253)
Term Loan 24,578,785 - - -
Deferred Tax (3,154,853) (583,734) (454,433) (351,253)
Liability/Asset
Current Liabilities 622,772,986 640,869,983 633,126,443 510,420,039
Accounts & Other 55,359,016 72,947,773 306,964,056 115,749,940
Payable
Accruals & Provisions 129,532,410 131095105
Short term Loan & Bank 430,591,903 436,827,105 486,412,447 383,864,599
Overdrafts
Current Portion of Long 7,289,657 - - -
Term Loan
Total Equity & Liability 2,565,878,125 2,480,475,865 2,434,781,576 2,260,399,377
Number Of Share Used 40,479,436 36,799,488 33,456,919.83 33,454,011.43
to Calculate NAV
NAV Per Share 47.47 50.01 53.85 52.31
Quasem Drycells Limited

Statement of profit or loss and other comprehensive income

Particulars 2016 2015 2014 2013

Turnover 1,851,560,987 1,689,108,860 1,824,131,860 1,491,640,797
cost of goods sold (1,499,993292) (1,369,606,557) (1,479,174,125 (1,234,o97,589
) )
Gross profit 351,567,695 319,502,303 344,957,735 257,543,208
Operating Expenses (216,007,443) (207,045,185) (195,549,083) (157,236,117)
Administrative Expenses (99,988,373) (97,052,023) (95,728,403) (81,382,295)
Selling & distribution (116,019,070) (109,993,162) (99,820,680) (75,853,822)
expenses
Profit from operation 135,560,252 112,457,118 149,408,652 100,307,091
Finance cost (54,619,077) (66,117,859) (75,999,950) (55,691,791)
Distribution service charge 29,278,213 25,954,811 - -

34
Net profit from operation 110,219,388 72,294,070 73,408,702 44,615,300
Non-operating income 1,434,407 6,523,579 1,432,106 1,868,233
Income from sales of - 5,093,363 - -
vehicles
Other income 1,434,407 1,430,216 1,432,106 1,868,233
Net profit before WPPF 111,653,795 78,876,767 74,840,807 46,483,533
Provision for workers profit (5,582,690) (3,940,882) (1,432,106) (1,868,233)
participation fund
Net profit before tax 106,071,105 74,876,767 71,276,959 44,270,031
Income tax expenses (23,946,657) (19,097,877) (19,497,983) (88,609,788)
Net profit after tax 82,124,448 55,778,890 51,778,975 35,660,243
Unappropriated surplus 42,272,404 23,925,859 23,299,804 18,052,361
brought forward(re-stated)
Surplus available for 124,396,852 79,704,749 75,078,779 53,712,604
appropriation
Number of share used to 40,479,436 36,799,488 33,456,919 33,454,011
calculate EPS
EPS for the year 2.03 1.52 1.55 1.07

4.6Graphical presentation of operating result:

Total Tunrover

2015-16 2,028.89
2012-13 1,618.37 2014-15 1,853.86
2013-14 1,989.45
2011-12 1,636.51

35
 Gross Profit Net Profit

2012-13 257.59 2015-16 351.57 2011-12 50.23 2015-16 82.13

2013-14 344.96 2012-13 35.66 2014-15 55.79
2014-15 319.51 2013-14 51.78
2011-12 278.68

Earning per share Dividend

2015-16; 14.29%
2011-12 1.82 2015-16 2.03 2012-13; 21.43% 2014-15; 21.43%
2012-13 1.17 2014-15 1.52 2011-12; 28.57%
2013-14; 14.29%
2013-14 1.55

36
4.7SWOT Analysis:

SWOT is an important matter to know the present condition of strength, weakness, opportunities and
threats of QDL. This analysis also helps the company management to make up its weakness and face the
competitors. The term SWOT includes the following:

S=strength

W=weakness

O=opportunity

T=threat

Strength:

1. Core business.
2. Consumer trust.
3. Financial strength.
4. Dynamic leadership.
5. Experienced & capable team.
6. Quality products.
7. Connections with good suppliers.
8. Wide coverage of own distribution.
9. Strong employee bonding and belongingness.

Weaknesses:

1. Time consuming govt. regulation.

2. Old version of software sometime hampered activities.
3. Rigid relationship/communication among top management and employees.
4. Inadequate IT infrastructure.
5. Marketing policy is not well setup.

Opportunities:

1. Market growth.
2. Financial strength.
3. Reference customer.
4. Change of buying pattern.
5. Diversified portfolio for market.
6. Experienced in manufacturing plant.

37
Threats:
1. Product quality.
2. Product availability.
3. Competition with other/price war.
4. Global manufacturing plant.
5. Frequent change in market demand.
6. Economic slowdown or import duty.
7. If a good performer is not valued and rewarded there is a high chance of losing best employees.
8. If employees fail to show improvement repeatedly, promotion or increment will halt.

5.1Findings:

1. Any payment by way of interest, salary, commission or remuneration made by a firm or association of
persons to any partner of the firm or any member of the association would be non-allowable expense.
So the Directors remuneration also non allowable expense.

2. Contribution to provident fund assumed to be un-recognized so it is inadmissible expenses.

3. Charity has been considered inadmissible since 1992.

4. Income tax is an inadmissible expense.

5. Provision for deferred tax also is an inadmissible expense.

6. Contribution to WPPF is allowable expense.

7. Dividend income is not business income so it is deducted from business income and adds to the total
income.

8. Gain on disposal of property, plant and equipment is not business income.

9. Tax rate on capital gain is 15%.

38
10. On dividend income tax rate is 20%.

11. In 2015-16 turnover of QDL was 1,851,560,987tk. This is higher than previous three years.

12.the dividend income was tk.2.03, which is higher than previous three years.

5.1Recommendation:

With a view to overcoming the weak points and utilizing the strengths, QDL may take proper steps for
deriving benefits out of all opportunities and successfully facing all issue related tax. At this critical
juncture, I would like to propose some suggestions for improving Corporate Taxation Process of
Bangladesh in genera; which are:

1. Corporate tax rate is very high in Bangladesh, if Govt. reduces the tax rate it will be helpful for
the tax payers.
2. Process of Return submission is not well decorated. Government should decorate the process
and make it easy for the tax payers.
3. Income tax authority is not so friendly. If they come with their helping hand it may reduce
certain problems of tax payers.
4. Though QDL has established product line, so it should launch different products.
5. Govt. should adjust AIT during the period of submission of return.
6. Govt. should provide proper and clear instructions regarding tax issues.

5.2Conclusion

Tax is the most important in the hand of the government to control the economy as well as the
inflection. It also helps in push money to the economy, develop certain source of the economy and
control some other activities of the economy. No Government can run its and perform administration
works without collecting tax as a source of revenue. So, the Government imposes tax over the company
and the corporations. On the other hand Government can also intensive to the infant and certain basic
industry for protection through its tax policy.

Abbreviations:

QDL Quasem Drycells Limited

PBT Profit Before Tax
PIT Provision for Income Tax

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 D.T.L Deferred Tax Liability
D.T.L Deferred Tax Asset
I.T.E Income Tax Expenses
PAT Profit After Tax
AIT Advance Income Tax
I.T.A Income Tax Authority

NOTES:

1. Accounting profit as shown in companys financial statement differs with the IT profit for many
reasons. One of such difference is timing difference. Timing difference arises due to difference in
rate of depreciation, method of depreciation and expense allowed in calculation of accounting
profit but now allowed in calculating IT profit. Based on the impact of timing difference company
has to calculate deferred tax liability and asset.
2. AIT is adjusted by the Tax Authority. After final assessment of assessees accounting profit and
computation of payable tax, first tax authority adjusts AIT then they count net payable amount.
Because after the final assessment by income tax authority amount of tax provision is changed
to assessees computed provision.
3. Deferred tax asset: Deferred tax asset is an accounting term that refers to a situation where a
business has overpaid taxes or taxes paid in advance on its balance sheet. These taxes are
eventually returned to the business in the form of tax relief, and the over-payment is, therefore,
an asset for the company.
4. Deferred tax liability: A deferred tax liability is an account on a company's balance sheet that is a
result of temporary differences between the company's accounting and tax carrying values, the
anticipated and enacted income tax rate, and estimated taxes payable for the current year.
5. Universal-self: it is status of tax payer, it means the assessee declared that is/her calculated I.T.P
is accurate.

Abbreviations:

QDL Quasem Drycells Limited

PBT Profit Before Tax
PIT Provision for Income Tax
D.T.L Deferred Tax Liability
D.T.L Deferred Tax Asset

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 I.T.E Income Tax Expenses
PAT Profit After Tax
AIT Advance Income Tax
I.T.A Income Tax Authority

Bibliography

1. Mahmud Dr. Monjur Morshed, Purohit Dr. Kanchan Kumar & Bhattacharjee Dr. Milal Kumar
Income Tax, 4thedition, PadmaProkashani, 50, Jame Mosque Super Market, Chittagong,
January,2007, p. 329 364
2. Annual Report, Quasem Drycells Limited., Financial year 2015-2016,
3. Annual Report, Quasem Drycells Limited., Financial year 2014-2015,
4. Annual Report, Quasem Drycells Limited., Financial year 2013-2014,
5. Annual Report, Quasem Drycells Limited., Financial year 2012-2013.
6. INCOME TAX MANUAL, PART-1 compiled by Lal Bahadur Adhikary, 14 th Edition, Supreme
Prakashani, Bangla Bazar, Dhaka.

Reference:
1. www.Wikipedia.com
2. info@quasemdrycells.com
3. www.sribebd.com
4. www.assignmenpoint.com
5. www.nbr-bd.org.com
6. Secure.inc

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42
2.12 Business Identification Number (BIN), if any: N/A

PART-II

Statement of income of the Company

Line Particulars of income Taxable Exempted/ Total income
income Tax Holiday
income
2.13 Income from business or profession, u/s 28 110,219,388 5,582,690 104,636,698
2.14 Capital gain income, u/s 31 - - -
2.15 Interest on securities, u/s 22 - - -
2.16 Income from house property, u/s 24 - - -
2.17 Agricultural income, u/s 26 - - -
2.18 Income from other sources, u/s 33 1,434,407 - 1,434,407
2.19 Total income 111,653,795 5,582,690 106,071,105
(Line 2.13+2.14+2.15+2.16+2.17+2.18+2.19)

Income tax payments of the Company

Line Particulars Amount in
taka
2.20 Total income (Line 2.19) 106,071,105
2.21 Income tax liability 23,946,657
2.22 Tax deducted/Collected at source 22,155,682
2.23 Advance tax -
2.24 Adjustment of tax refund (if any) -
2.25 Net tax payable {Line 2.21-(2.22+2.23+2.24)} /(Refundable) (1,790,975)
2.26 Tax payment (As per line 2.25) -

Particulars of Income/Expenses
Line Particulars of income Current Year Previous Year
2.27 Sales / Turnover / Receipts
Less : VAT (if any)
Net Sales 1,851,560987 1,689,108,860
2.28 Cost of Sales 1,499,993,292 1,369,606,557
2.29 Gross Profit (Line 2.27-2.28) 351,567,695 319,502,303
2.30 Other Operating Income 1,434,407 32,478,390
2.31 Administrative Expenses 99,988,373 97,052,023
2.32 Selling & Marketing Expenses 116,019,070 109,993,163

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2.33 Other Operating Expenses - -
2.34 Profit from Operations {Line 2.29+2.30- 136,994,659 144,935,507
(2.31+2.32+2.33)}
2.35 Financial Expenses 54,619,077 66,117,859
2.36 Income from Associates / Subsidiaries - -
2.37 Profit before Tax(Line 2.34+2.36-2.35) 82,375,582 78,817,649

* If needed use separate pages

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 TIN 3 9 1 3 8 2 2 0 5 5 6 3

PART-III

PARTICULARS OF BALANCE SHEET

Lin Assets Current Year Previous Year

e
2.38 Property, plant and equipment 1,786,097,097 1,676,777,275
2.39 Goodwill - -
2.40 Manufacturing license /Patent right /Franchise fee - -
2.41 Investments in associate / Subsidiary company 16,517,344 16,517,344
2.42 Other financial assets 100,501,976 115,468,326
2.43 Total Non-Current Assets :(Line 2.38+2.39+2.40 +2.41+2.42) 1,903,116,417 1,808,762,945
2.44 Inventories 397,075,462 414,876,538
2.45 Trade and other receivables 78,129,776 64,881,437
2.46 Advance, Deposits & Prepayments 62,865,955 66,643,187
2.47 Cash / Bank and cash equivalents 25,436,547 17,045,995
2.48 Other 98,948,880 108,265,763
2.49 Total current assets (Line 2.44+2.45+2.46+2.47+2.48) 662,456,620 671,712,920
2.50 Total Assets (Line 2.43+2.49) 2,565,878,125 2,480,475,865
Equity & Liabilities
2.51 Paid-up capital 404,794,368 367,994,880
2.52 Reserves & Surplus 1,516,886,839 1,472,194,736
2.53 Retained earnings - -
2.54 Total equity capital (Line 2.51+2.52+2.53) 1,921,681,207 1,840,189,616
2.55 Bonds / Debentures - -
2.56 Long term borrowings - -
2.57 Others 21,423,932 (583,734)
2.58 Total Non-current liabilities (Line 2.55 + 2.56 + 2.57) (583,734) (454,433)
2.59 Short term borrowings 436,827,105 486,412,447
2.60 Creditors/Payables 44,758,025 17,381,152
2.61 Provisions 40,416,482 29,691,650
2.62 Others 118,868,371 99,641,194
2.63 Total Current liabilities (Line 2.59+2.60+2.61+2.62) 640,869,983 633,126,443
2.64 Total Equity & Liabilities (Line 2.54+2.58+2.63) 2,480,475,865 2,434,781,576

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* If needed use separate pages

46
 TIN 3 9 1 3 8 2 2 0 5 5 6 3

PART-IV

Particulars of Shareholder directors of the company

N Name Address No. of Shares E-TIN / UTIN
o
1 Anwarul Islam 5,690 183284522774
2 Tasvir Ul Islam 3,837,787 733976714814
3 Dr. Reyan Anis Islam 810,525 571987474170
4 Nafisa Quasem 810,525 335466876711
5 Sameed Quasem 809,674 141614433746
6 Samira RoKaiya Quasem 810,700 657303438558
7 Mirza Akhtar Maruf - 315389942537
* If needed use separate pages

Statement of Withholding taxes (see Chapter VII of Income Tax Ordinance, 1984)
Tax Deducted
No Heads of Expenses Expenses Claimed
at source
1 Salaries
2 Contractors / Suppliers
3 Fees for Professional, technical services;
4 House Rent Lease Rent
5 Commission, discount or fees;
6 Savings deposits & fixed deposits;
7 Insurance commission;
8 Dividend
9 Foreign Buyer Commission
10 Payment to non-residents etc.
If needed use separate pages

Particulars of Bank Accounts

No. Name of the Bank Branch Account Remarks

number
1 As per annual report
2
3
4
If needed use separate pages

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 Particulars of Related Parties /Subsidiary and Associated Companies/Directors/Managers
Name of the Company/ % held in paid Names of common directors or Any financial/ business **
TIN / Zone
Directors/Managers up capital major share holders * Transactions held Yes/No.
- - - - -
- - - - -
- - - - -

* In case of Associated companies only.

* Include Guaranty given to third party by the company for the subsidiary and associated company.
* If needed use separate pages

Verification

I Tasvir Ul Islam, Managing Director of Quasem Drycells

Limited, solemnly declare that to the best of my knowledge and belief the
information given in this return and statements and documents annexed herewith is correct and
complete.

Place: Dhaka
Date:

Signature
TASVIR UL ISLAM
(Name in block letters)
Designation and Seal

....................................................................................................................................................................

Acknowledgement Receipt
Taxes Zone- Dhaka
Circle- LTU

Date of receipt of return: Serial No. in Return Register:

Received the Self / Normal / Universal Self / 82 Proviso Income tax return

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From M/s. QUASEM DRYCELLS LIMITED

TIN: 3 9 1 3 8 2 2 0 5 5 6 3

UTIN: --- ---

For the assessment year 2015 - 2016

Shown in Return:
Total Income : Tk. 106,071,105
Tax paid : Tk. 22,155,682

Signature of Receiving
officer with seal

Instructions:
1. The Return shall be signed and verified by the Principal Officer of the Company as prescribed
under section 75 of the Income Tax Ordinance, 1984;
2. The Return shall be accompanied by -
a. a statement of accounts audited by a Chartered Accountant,
b. depreciation chart as per THIRD SCHEDULE of the Income Tax Ordinance, 1984;
c. computation of income according to Income Tax Law;

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