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BEXTEX LIMITED

Annual Report 2009


mission
Each of our activities must benefit
and add value to the common
wealth of our society. We firmly
believe that, in the final analysis we
are accountable to each of the
constituents with whom we
interact; namely: our employees,
our customers, our business
associates, our fellow citizens and
our shareholders.
content

2 Notice of the Twenty-Sixth Annual General Meeting


3 Board and Management
4 Chairman’s Statement
8 Corporate Governance
10 Report of the Directors
12 Corporate Governance Compliance Report
13 Five Years’ Statistics
14 Value Added Statement
15 Twenty-Fifth Annual General Meeting
17 Report of Auditors to the Shareholders
18 Balance Sheet
19 Profit and Loss Account
20 Statement of Changes in Equity
21 Cash Flow Statement
22 Notes to the Accounts
Proxy Form and Attendance Slip

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BEXTEX • 2009 ANNUAL REPORT

Notice of the TWENTY-SIXTH Annual


General Meeting

BEXTEX LIMITED
17, DHANMONDI R.A, ROAD NO. 2, DHAKA-1205

NOTICE OF THE TWENTY-SIXTH ANNUAL GENERAL MEETING

Notice is hereby given that the TWENTY-SIXTH ANNUAL GENERAL MEETING of the Shareholders of Bextex Limited will be
held on Thursday, the 17th June, 2010 at 11.30 a.m. at Beximco Industrial Park, Sarabo, Kashimpur, Gazipur to transact the following
business :

AGENDA
A. As Ordinary Businesses:
1. To receive, consider and adopt the Audited Financial Statements of the Company for the year ended 31st December, 2009
together with reports of the Auditors and the Directors thereon.
2. To elect Director.
3. To confirm the re-appointment of Managing Director.
4. To declare 15% Stock Dividend.
5. To appoint Auditors for the year 2010 and to fix their remuneration.
6. To transact any other business of the Company with the permission of the Chair.

B. As Special Business:
To pass special resolutions for amendment of Clause-V of the Memorandum of Association and Article-5 of the Articles of
Association of the Company to increase the Authorized Capital of the Company from Tk.500,00,00,000/- to Tk.800,00,00,000/-.
Proposed resolutions are as follows :
(i) CLAUSE-V OF THE MEMORANDUM OF ASSOCIATION:
“Resolved that the words and figures “Tk.500,00,00,000/- (Taka five hundred crore) divided into 50,00,00,000 (Fifty crore) ordinary
shares of Tk.10/- (Taka Ten) each” in Clause-V of the Memorandum of Association of the Company be substituted by the words and
figures “Tk.800,00,00,000/- (Taka eight hundred crore) divided into 80,00,00,000 (Eighty crore) ordinary shares of Tk.10/- each”.
(ii) ARTICLE-5 OF THE ARTICLES OF ASSOCIATION:
“Resolved that the words and figures “Tk.500,00,00,000/- (Taka five hundred crore) divided into 50,00,00,000 (Fifty crore) ordi-
nary shares of Tk.10/- each” in Article-5 of the Articles of Association of the Company be substituted by the words and figures
“Tk.800,00,00,000/- (Taka eight hundred crores) divided into 80,00,00,000 (Eighty Crores) ordinary shares of Tk.10/- (Taka Ten) each”.

By order of the Board,

(MD. ASAD ULLAH, FCS)


Dated : 10th May, 2010 Executive Director & Company Secretary

NOTES:
(1) The Record Date shall be on 19th May, 2010. The Shareholders whose names will appear in the Share Register of the Company or in the Deposi-
tory Register on that date will be entitled to attend at the Annual General Meeting and to receive the dividend.
(2) A member entitled to attend and vote at the General Meeting may appoint a Proxy to attend and vote in his/her stead. The Proxy Form, duly
stamped, must be deposited at the Registered Office of the Company not later than 48 hours before the time fixed for the meeting.
(3) Admission to the meeting room will be strictly on production of the attendance slip sent with the Notice as well as verification of signature of
Member(s) and/or proxy-holder(s).
(4) No gift or benefit in cash or kind shall be paid to the holders of equity securities in terms of Clause (c) of the Notification No.SEC/SRMI/2000-
953/1950 dated 24 October 2000 for attending this AGM of the Company.

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Board and Management

BOARD OF DIRECTORS

A S F Rahman Chairman and Managing Director


Salman F Rahman Vice Chairman
M A Qasem Director
A B Siddiqur Rahman Director

MANAGEMENT TEAM

Syed Naved Husain Chief Executive Officer


Sardar Ahmed Khan Chief Operating Officer
Ajay Pratap Singh Chief Financial Officer

COMPANY SECRETARY

Md. Asad Ullah, FCS

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BEXTEX • 2009 ANNUAL REPORT

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BEXTEX • 2009 ANNUAL REPORT

Chairman’s Statement
Dear Shareholders,

I take this opportunity to welcome you all on behalf & Bear, have started placing orders in big volumes
of the Board of Directors to this 26th Annual General in more than one product categories. Phillips Van
Meeting of your company and to present to you the Huesen has also come back with a bang and besides
Auditor’s Report which includes the Audited Financial dress shirts, they are now placing orders in women’s
Statements and the Directors Report for the year casual wear for both tops and bottoms for well known
ended 31st December 2009. brands like IZOD, Calvin Klien , Bass etc.
Another major development has been that H&M
Operation
has also started placing garments orders which
Operations of your Company for the period hitherto had been only placing fabrics orders .
under review have considerably improved over Our garments orders have reached a stage where
the preceeding years which will be evident from single shift working in garment factories was not
the increase in production in all the divisions of enough , as such, for the first time in Bangladesh ,
the company and simultaneously increase in the we experimented with second shift operations in
revenue by 65 % and corresponding increase in the garment factories and , I take pleasure in informing
profitability in comparison to the previous year . you that this experiment was successful and now
, gradually, we are converting all of our garment
During the year the Company has taken effective
manufacturing facilities into two shift. This will double
steps to enhance the capacities of the spinning ,
our garment manufacturing capacity with existing
woven fabric and denim fabric division by making
machineries and infra structure facilities which
an additional investment of Tk. 2382 million from
consequently will double our garments turnover .
sponsor’s own resources in new technology. The new
technology acquired will undoubtedly increase the During the period under review , we have also more
overall productivity and profitability of the Company than doubled our garments washing facilities and
and the same will be evident from the half yearly have also introduced new techniques of garment
results of the company for the year 2010 which will be dyeing , dry finishing etc. Our washing plant is capable
shortly published. of offering latest trend and right product to our
fashion conscious customers.
Another significant achievement, which will go a long
way in increasing the profitability of the Company , In addition to the above mentioned existing
has been conversion of the Foreign Loan equivalent customers there are many other international brands
to Tk. 3152 million into Equity Share Capital . who are knocking at our doors to get in due to our
Consequent to conversion, the Company benefited quality and high fashion products. Our order books
substantially and in subsequent years, there will be an are full for next six months and more orders are
annual savings of Tk 200 million on interest. Besides coming every day.
, the foreign loan , the Company also converted Tk
3200 miilion interest bearing loan from Sponsor’s Human Resources
Group Companies into Equity. The overall impact
Your company has always recognized the
of the conversion has been that the Debt : Equity
importance of human resources development and
ratio has reduced from 2.33 : 1 to 0.63 : 1 signifying a
makes considerable investment for acquisition,
healthier Balance Sheet and annual savings of interest.
development and retention of talented and dynamic
professionals. Through its programs for training,
Marketing
allocation of responsibilities & authority, performance
As a result of our intensified marketing efforts appraisal, job enlargement & enrichment , Bextex
during last year , you will be glad to know that our old provides an environment, which is conducive to
customers like J C Penny and Inditex Group, which individual growth and motivates employees to put in
owns international brands like Zara, Bershka and Pull their best effort for achieving organizational goals.

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Environment banks, financial institutions,
suppliers and to our customer
The company is very committed to preserve healthy
for their unforgettable co-
and pollution free environment. It has a very efficient
operation. In fact, you are the
waste collection and disposal system. In order to
real strength to overcome the
reduce air pollution by exhaust of gas from engine
challenges in our way. I am confident, that with your
generators, it maintains a costly plant that uses the
understanding and support we will continue to build
exhaust gas to generate steam for chilling unit. Above
on our capabilities for sustained high performance
measures not only help keep the water & air free from
in future. Again I offer my heartiest thanks to all
pollution but also help save cost of water treatment
shareholders for their support during the year.
& air conditioning. Your company uses only AZO-free
dyes and is dedicated to ensure a healthy and eco-
free-friendly environment.

Future Plans
A S F Rahman
Bextex has always remained as an important strategic Chairman
partner to our core customers because of its position
as a South Asians leading producer of innovative Dated : 29th April, 2010
fabrics and designs and integrated state of the art Place : Dhaka
facilities from yarn to fabric.
The Company has always emphasized on
strengthening of our research and development
activities for product development and have focused
on our operational excellence to maintain quality
and standards which has enabled us to sustain
competition.
Your Company has already imported a new state of
the art Denim manufacturing plant which is now under
installation. This will increase Denim capacity to 16
million yards per year.

Dividend
In comparison to the previous years, this year the
net operational results have been better. Keeping in
view the performance of the company, the board of
directors recommended 15 % stock dividend for the
year. They are confident that you will stand by this
decision in the interest of the long-term prospects of
your company.

Conclusion
I would like to take this opportunity to show my
appreciation and sincere gratitude to the valued
shareholders, government agencies, employees,

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BEXTEX • 2009 ANNUAL REPORT

CORPORATE GOVERNANCE

BEXTEX Limited is a trend setting pioneer towards high-tech industries. BEXTEX also
in corporate governance in the country and receives students from different institutions
enjoys reputation as a world class producer as interns and on industrial attachments to
of yarn, fabric and apparel that is admired enable them to gain first hand knowledge
worldwide for their quality and design. A on corporate management practices.
team of highly qualified and experienced An important hallmark of the company’s
and committed professionals under policy is talent hunting. It goes for the best
the guidance of top management of the talents in the country and outside; and
company have achieved admirable measure through intensive training programme
of success in a short span of time. This has expands their perspectives and hone
been possible because the company never their thinking. Training programmes
compromises on quality and settles for are specially designed to prepare them
nothing but the best. to take over and confidently discharge
Transparency and fair business practices management responsibilities. Towards
coupled with strict quality control this end, BEXTEX has hired competent
regimen have inspired the confidence professionals from India, China, Pakistan,
of internationally reputed buyers like Sri Lanka, the Philippines, et al.
PVH, Perry Ellis, Wal-Mart, JC Penny, All the efforts of BEXTEX in hiring
Philippine Van Heusen, Zara of Spain Kid best talents, providing best training and
Headquarter, to name a few, to enter into ensuring best quality production aim at one
business partnership with BEXTEX. goal: put Bangladesh on the global map as
The company, as part of its corporate the producer of quality goods. The export
responsibility, shares its experience with strategy of the company is not profit motive;
others, especially educational and training it is geared to fostering economic growth of
institutes like the National Defence College the country.
( NDC ), Ordnance School, Marine The company abides by all relevant Health,
Academy which send trainees from time to Safety and Environment Conservation
time to visit the company’s plants, which Rules; Fire and Boiler maintenance
stand as symbols of the nation’s march
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instructions and all relevant policies of level of international standard.
the government, as is evident throughout BEXTEX’s Human Resources Team
the entire Industrial Park where BEXTEX Management is way ahead of
plants are located. others in the industry. Herein lies
Sufficient Personal Protective Equipment the strength of the company and
(PPE), Safety Equipment, signs and symbols explains in no uncertain manner
etc. are made available throughout the why it has achieved unparalleled
plants. Necessary training is also imparted success.
to all the workers on the use of these The team of Human Resources
equipment so that they are able to use them, Department in BEXTEX consisting of
if required, and meet the health, safety & highly qualified and vastly experienced
hygiene requirement properly. Necessary’ personnel having appropriate training at
plantation, treatment, control measures home and abroad, made the department
etc. are also properly ensured as per the equipped with necessary policies,
guidelines of the World Bank, Department guidelines, standard operating procedures
of Environment and other concerned (SOPs), job descriptions, training
bodies. It also follows the Buyers’ Code of materials, code
Conduct and satisfactorily meets the buyers’ of conducts
set standard of compliance. The certification (COC).
of compliance from internationally reputed Continuous
companies bear testimony to BEXTEX’s development
compliance of global standard. of human
BEXTEX Limited can confidently say that resources is also
earning admiration from around the globe taking place
are the benchmarks of the success of the simultaneously
company. This success has been earned in each and every
by ensuring the highest level of human section of the
resources management and conforming company.
to various compliance issues at the
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BEXTEX • 2009 ANNUAL REPORT

REPORT OF THE DIRECTORS


For the year ended 31 December 2009

Dear Shareholders,
The Directors are pleased to present the Audited BOARD MEETING AND ATTENDANCE
Financial Statements of the Company for the During the year,24 (Tweenty Four) Board Meetings were
year ended 31 December 2009, together with the held. The attendance record of the Directors is as follows:
Directors’ and Auditors’ Reports thereon..
PRINCIPAL ACTIVITY Name of Directors Meetings Attended
A S F Rahman 22
The principal activity of the Company in the period Salman F Rahman 24
under review was that of production and sale of M A Qasem 24
high quality yarns and woven, denim & knit fabrics. A B Siddiqur Rahman 19
WORKING RESULTS BOARD AUDIT COMMITTEE
The working result of the Company for the year
under review are as follows: The company has an audit committee, which met
(Taka in million) three times in 2009, to consider the annual accounts
2009 2008 ended 31st December,2008 , the half-year accounts
ended 30th June, 2009 and 3rd quarter accounts
Net Profit/(Loss) after income tax 933.45 (608.66) ended 30th september, 2009 and also auditors
Profit brought forward (1,341.71) (733.05) report on the annual accounts of 2008.
Profit avaiable for appropriations (408.26) (1,341.71)
The Directors recommended CORPORATE & FINANCIAL REPORTING
the following appropriation: The Company has complied with all the
Proposed Stock Dividend (Bonus requirements of Corporate Governance as required
Share) for the year 2009 at 15% (608.41) (188.28) by the Securities and Exchange Commission
Profit/(Loss) carried forward (1,016.67) (1,529.99) Accordingly, the Directors are pleased to confirm
DIVIDEND the following :
(a) The financial statements together with the notes
The Board of Directors have recommended 15%
thereon have been drawn up in conformity
stock Dividend (Bonus share); i.e., 15 (fifteen)
with the Companies Act, 1994 and Securities
bonus share for every 100 (hundred) ordinery
and Exchange Rules, 1987. These statements
shares held, fully paid up, for the approval of the
present fairly the Company’s state of affairs,
shareholders for the year ended 31 December 2009.
the result of its operations, cash flow and
DIRECTOR changes in equity.
Mr. A B Siddiqur Rahman, Director, retires by (b) Proper books of accounts of the Company have
rotation as per Articles 126 and 127 of Articles of been maintained.
Association of the Company and being eligible (c) Appropriate Accounting Policies have been
offers himself for re-election. consistently applied in preparation of the
RE-APPOINTMENT OF MANAGING DIRECTOR financial statements and that the accounting
estimates are based on reasonable and prudent
As per provision of Companies Act 1994, Mr. A S F
judgement.
Rahman had been appointed as Managing Director
of the Company for a period of 5 years which expired (d) The International Accounting Standards, as
on 31st December, 2009. The Board has re-appointed applicable in Bangladesh, have been followed
him as Managing Director of the Company for in preparation of the financial statements,
another period of 5 years w.e.f. 1st January, 2010 (e) The systems of internal control are sound
to 31st December, 2014, subject to the approval of and have been effectively implemented and
Shareholders in the 26th Annual General Meeting. monitored.

10
(f) There are no significant doubts upon the Company’s ability to continue as a going concern.
(g) The Company has incurred net loss, mainly due to higher raw material costs, higher depreciation and
higher expenses-manufacturing, administrative and selling.
(h) The key operating and financial data for the last five years is Annexed.
(i) The pattern of shareholding is as follows :
Name-wise details Shares held
(i) Parent/Subsidiary/Associate Companies and other related parties :
Bangladesh Export Import Co. Ltd 52,027,274
Beximco Holdings Ltd 30,503,595
Beximco Apparels Ltd 663,492
Beximco Pharmaceuticals Ltd. 263,290
New Dacca Industries Ltd. 15,915,358
(ii) Directors, Chief Executive Officer, Company Secretary, Chief Financial Officer, Head of
Internal Audit and their spouses and minor children :
Mr. A S F Rahman, Chairman 37,892,497
Mr. Salman F Rahman, Vice Chairman 43,844,853
Chief Executive Officer, spouse and minor children Nil
Company Secretary, spouse and minor children Nil
Chief Financial Officer, spouse and minor children Nil
Head of Internal Audit, spouse and minor children Nil
(iii) Executives Nil
(iv) Shareholders holding ten percent (10%) or more voting interest in the Company
Mr. A S F Rahman, Chairman (mentioned in Sl. No. (ii)) 37,892,497
Mr. Salman F Rahman, Vice Chairman (mentioned in Sl. No. (ii)) 43,844,853

CORPORATE GOVERNANCE COMPLIANCE REPORT


In accordance with the requirement of the Securities and Exchange Commission, “Corporate Governance
Compliance Report” is also Annexed.

AUDITORS
The directors hereby report that the existing Auditors, M.J. Abedin & Co. Chartered Accountants, Nationa
Plaza, (3rd Floor), 109, Bir Uttam C.R. Datta Road, Dhaka-1205, who were appointed as Auditors of the
Company in the twenty-Fifth Annual General Meeting of the Company has carried out the audit for the
year ended 31st December 2009.
M.J. Abedin & Co. Chartered Accountants, National Plaza (3rd Floor), 109, Bir Uttam C. R. Datta Road,
Dhaka-1205, the Auditors of the Company retire at this meeting and have expressed their willingness to
continue in office for the year 2010.
On behalf of the Board,

A S F Rahman
Chairman
April 29, 2010
Dhaka.

11
BEXTEX • 2009 ANNUAL REPORT

Corporate Governance Compliance Report


ANNEXURE
Status of compliance with the conditions imposed by the Commission’s Notification No. SEC/CMRRCD/2006/158/Admin/02-08 dated 20th February 2006
issued under section 2CC of the Securities and Exchange Ordinance, 1969. (Report under Condition No. 5.00)

Condition. Title Compliance status Explanation


No (Put (√) in the appropriate column) for non-compliance
Complied Not complied with the condition

1.1 Board’s Size √


1.2(I) Independent Directors √
1.2(II) Independent Directors Appointment √
1.3 Chairman & Chief Executive √
1.4(a) Directors’ Report on financial Statements √
1.4(b) Books of Accounts √
1.4(c) Accounting Policies √
1.4(d) IAS Applicable in Bangladesh √
1.4(e) System of Internal Control √
1.4(f) Going Concern √
1.4(g) Deviation in Operating Results √
1.4(h) Key operating and Financial Data √
1.4(i) Declaration of Dividend √
1.4(j) Number of Board Meetings √
1.4(k) Pattern of Shareholdings √

2.1 CFO, HIA & CS Appointment √


2.2 Board Meeting Attendance √

3 Audit Committee √
3.1(i) Composition of Audit Committee √
3.1(ii) Audit Committee Members Appointment √
3.1(iii) Terms of service of Audit Committee √
3.2(I) Chairman of Audit Committee √
3.2(ii) Audit Committee Chairman’s Qualification √
3.3.1(I) Reporting to the Board of Directors √
3.3.1(ii)(a) Report of Conflicts of Interest √
3.3.1(ii)(b) Defect in the Internal Control System √
3.3.1(ii)(c) Suspected infringement of Laws √
3.3.1(ii)(d) Any other matter √
3.3.2 Reporting to the Authorities √
3.4 Reporting to the Shareholders √
4.00 (I) Appraisal or Valuation Services √
4.00 (ii) Financial information system √
4.00 (iii) Book keeping or other services √
4.00 (iv) Broker dealer services √
4.00 (v) Actuarial services √
4.00 (vi) Internal Audit services √
4.00 (vii) Any other services √

12
FIVE YEARS’ STATISTICS

2009 2008 2007 2006 2005

Results of Operations:
* Revenue 7,866,258 4,760,237 4,267,027 5,201,514 2,570,597
* Gross Profit 2,929,568 1,670,052 1,245,302 2,030,146 499,931
* Operating Profit 2,615,780 1,409,417 996,034 1,774,503 449,975
* Net Profit/(loss) before tax 1,098,173 (608,656) (983,404) (200,709) 156,569
* Net Profit/(loss) after tax 933,447 (608,656) (994,072) (208,649) 123,599
** Basic Earning per share 4.16 (3.23) (5.28) (1.11) 2.03
** Cash Dividend Per Share - - - - 0.50
Stock Dvidend in % 15 10 - 10 10
* Cash Generated from/(Used in) Operating Activities (775,747) (1,134,776) (407,370) 269,201 88,167
Financial Position:
* Total Assets 22,155,834 19,086,298 14,738,938 14,956,940 6,168,193
* Fixed Assets - Gross 19,678,904 12,915,855 11,579,984 11,431,174 4,107,057
* Fixed Assets - Net 13,416,140 11,805,281 6,805,566 7,293,540 1,661,658
* Financial Assets 5,056,866 3,812,236 3,492,995 3,458,925 3,113,777
* Reserve and Surplus 6,581,683 1,469,666 46,824 1,248,829 1,230,994
* Gross Working Capital 8,677,167 7,230,983 7,881,489 7,572,906 4,496,276
* Net Working Capital 1,993,905 (675,955) (177,009) 1,611,525 2,793,425
* Authorised Capital 5,000,000 3,000,000 3,000,000 3,000,000 1,000,000
* Share holders’ Equity 10,637,748 3,552,512 1,929,670 2,960,507 2,076,601
* Paid up Capital 4,056,065 1,882,846 1,882,846 1,711,678 608,108
* Total Long Term Debt 6,683,262 7,826,849 4,735,768 6,020,051 2,373,739
Key Financial Ratios, Figures and Market Data:
Current Ratio 1.79 : 1 0.92 : 1 0.98 : 1 1.27:1 2.64:1
Debt Equity Ratio 0.63 2.33 2.45 2.03 1.14
Return on Investment 4.21% -3.19% -6.74% -1.39% 2.00%
** Net Assets Value per Share 42.70 59.37 35.48 52.55 73.43
Payout Ratio - - - - 73.89%
** Market value of share (at DSE) 81.40 23.90 18.90 22.50 21.90
** Market value of share (at CSE) 81.70 23.80 18.75 22.50 22.10
Price Earning Ratio (Based on DSE price)(Times) 19.57 (7.40) (3.58) (18.44) 10.79
Price Earning Ratio (Based on CSE price)(Times) 19.64 (7.37) (3.55) (18.44) 10.89
Others:
Number of shares 405,606,503 188,284,625 188,284,625 171,167,841 60,810,750
Number of shareholders 50,826 37,216 37,929 36,470 9,147
Number of Employees
No. of Employees 7,189 5,230 5,181 6,206 2,652
* Figures in Thousand Taka
** Figures in Taka
Note Statistics for 2005 relate to erstwhile Padma Textile Mills Ltd., and accordingly, are not comparable with
those of 2006, 2007, 2008, & 2009

13
BEXTEX • 2009 ANNUAL REPORT

Value Added Statement

2009 2008
Taka in ‘000 % Taka in ‘000 %

Turnover 7,866,258 4,760,237


Brought-in-materials and services (4,456,673) (2,902,499)
3,409,585 100.00 1,857,738 100.00
Govt - as Duties and taxes 4,137 0.12 21,538 1.16
Employees - as Salaries, wages and allowances 559,567 16.41 426,783 22.97
Lenders - as Financial Charges 688,668 20.20 1,300,657 70.01
Shareholders - as Dividend - - - -
1,252,372 36.73 1,748,977 94.15
Depreciation and retention 2,157,213 63.27 108,760 5.85
3,409,585 100.00 1,857,738 100.00

Govt Govt
Depreciation and retention
0.12 % 1.16 %
Employees 5.85 %
Depreciation and retention
16.41 %
63.27 %
Employees
22.97 %

FY 2009 Lenders FY 2008


20.20 %

Lenders
.01 %
70.01

14
Twenty-Fifth Annual General Meeting

The Twenty Fifth Annual General Meeting ( AGM ) of shareholders of BEXTEX Limited was held on 18th
June 2009 at 4:00 PM at 1,Shahbag C/A , Dhaka. A large number of shareholders attended at the AGM.
Mr. A.S.F Rahman, Chairman of the Board of Directors of the Company, presided over the meeting. Mr.
Salman F Rahman, Mr. M. A. Qasem were also present in the meeting. Verses from the Holy Quaran along
with its translation in Bengali were recited at the very outset of the meeting.
The Chairman welcomed the shareholders in the AGM . With the permission of the Chair, the meeting began
and the shareholders expressed their valued opinion on the audited financial statements of the Company for
the year ended 31 December 2008 and also on their affairs.
Mr. Salman F Rahman ,Vice Chairman of the Company replied to the queries and explained various comments
of distinguished shareholders. He also gave hints of future activities of the Company.
After approving the audited financial statements , declaring dividend (stock dividend @ 10%), electing
directors, appointing auditors and fixing their remuneration by the shareholders, the meeting ended with a
vote of thanks to and from the Chair.

15
BEXTEX • 2009 ANNUAL REPORT

Financials

16
BEXTEX Limited Annual Report 2009 17

AUDITORS’ REPORT
TO THE SHAREHOLDERS OF BEXTEX LIMITED

We have audited the accompanying Balance Sheet of the Bextex Limited as of December 31, 2009 and the related Profit
and Loss Account, Statement of Changes in Equity and Statement of Cash Flows for the year then ended. These financial
statements are the responsibility of the company’s management. Our responsibility is to express an opinion on these financial
statements based on our audit.

We conducted our audit in accordance with Bangladesh Standards on Auditing (BSA). Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.
An audit includes examining on 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 of our opinion.

In our opinion, the financial statements prepared in accordance with Bangladesh Financial Reporting Standards (BFRSs), give a
true and fair view of the state of the company’s affairs as of December 31, 2009 and of the results of its operations and it’s cash
flows for the year then ended and comply with the applicable sections of the Companies Act 1994, the Securities and Exchange
Rules 1987 and other applicable laws and regulations.

We also report that:

(a) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for
the purposes of our audit and made due verification thereof;
(b) in our opinion, proper books of account as required by law have been kept by the company so far as it appeared from our
examination of those books;
(c) the company’s balance sheet and profit and loss account dealt with by the report are in agreement with the books of
account; and
(d) the expenditure incurred was for the purposes of the company’s business.

April 29, 2010 M. J. ABEDIN & CO.


Dhaka. Chartered Accountants
18 BEXTEX Limited Annual Report 2009

Balance Sheet
As at December 31, 2009

Notes 2009 2008


Amount in Taka Amount in Taka

ASSETS
Property, Plant and Equipment-Carrying Value 4 13,416,139,550 11,805,280,797
Long Term Security Deposits 5 43,530,686 29,191,074
Deferred Assets 6 18,997,013 20,843,945
Total Non-Current Assets 13,478,667,249 11,855,315,816
Current Assets 8,677,166,758 7,230,982,538
Inventories 7 2,742,675,600 2,733,063,864
Trade Debtors 8 4,986,086,053 3,765,912,622
Advances, Deposits and Prepayments 9 921,155,433 714,873,842
Cash and Cash Equivalents 10 27,249,672 17,132,210
Total Assets Tk. 22,155,834,007 19,086,298,354
EQUITY AND LIABILITIES
Shareholders’ Equity 10,637,748,057 3,352,511,836
Issued Share Capital 11 4,056,065,030 1,882,846,251
Reserves & Surplus 6,581,683,027 1,469,665,585
Non-Current Liabilities 6,683,261,956 7,826,848,879
10% Debentures - Net of Current Maturity (Secured) 12 871,051,272 1,009,534,505
Long Term Loans-Net of Current Maturity (Secured) 13 5,797,210,684 6,802,314,374
Security Deposit from Distributor 14 15,000,000 15,000,000
Current Liabilities 4,834,823,994 7,906,937,639
Short Term Loans 15 2,704,930,953 4,283,771,415
10% Debentures - Current Maturity (Secured) 16 173,888,054 -
Long Term Loans - Current Maturity (Secured) 17 1,393,544,111 2,029,139,603
Creditors & Accruals 18 562,460,876 1,594,026,621

Total Shareholders’ Equity and Liabilities Tk. 22,155,834,007 19,086,298,354

The notes are an integral part of the Financial Statements.

Approved and authorized for issue by the board of directors on April 29, 2010 and signed for and on behalf of the Board.

A S F Rahman Salman F Rahman M A Qasem


Chairman and Managing Director Vice Chairman Director

Per our report of even date.

April 29, 2010 M.J. Abedin & Co.


Dhaka. Chartered Accountants
BEXTEX Limited Annual Report 2009 19

Profit and Loss Account


For the year ended 31 December 2009

Notes 2009 2008


Amount in Taka Amount in Taka

Revenue 19 7,866,257,822 4,760,237,189


Cost of Revenue 20 (4,936,690,149) (3,090,184,887)
Gross Profit 2,929,567,673 1,670,052,302
Operating Expenses (313,997,191) (260,635,288)
Administrative Expenses 23 (294,146,231) (240,784,328)
Distribution (Selling) Costs (19,850,960) (19,850,960)
Profit before Interest, Tax & Depreciation 2,615,570,482 1,409,417,014
Financial Expenses 24 (688,667,966) (1,300,656,669)
Depreciation 4 (770,931,098) (717,416,211)
Profit/(Loss) before Contribution to WPWF 1,155,971,418 (608,655,866)
Contribution to Workers’ Participation/Welfare Fund (57,798,571) -
Net Profit/(Loss) before Tax 1,098,172,847 (608,655,866)
Income Tax Expenses 25 (164,725,927) -
Net Profit/(Loss) for the year transferred to Tk. 933,446,920 (608,655,866)
Statement of Changes in Equity

Earnings Per Share (Par value Tk.10/-) 26 Tk. 4.16 (2.94)


(Adjusted EPS of 2008)

The notes are an integral part of the Financial Statements.

Approved and authorized for issue by the board of directors on April 29, 2010 and signed for and on behalf of the Board.

A S F Rahman Salman F Rahman M A Qasem


Chairman and Managing Director Vice Chairman Director

Per our report of even date.

April 29, 2010 M.J. Abedin & Co.


Dhaka. Chartered Accountants
20 BEXTEX Limited Annual Report 2009

Statement of Changes in Equity


For the year ended December 31, 2009

Particulars Notes Share Capital Share Premium Capital Reserve on Revaluation Retained Total
Taka Taka Marger Surplus Earnings Taka
Taka Taka Taka

At the beginning of the year 1,882,846,250 450,000,000 329,879,705 2,031,497,144 (1,341,711,264) 3,352,511,835
10 % Stock Dividend for 2008 188,284,620 (188,284,620) - - - -
New Allotment of Share 28 1,984,934,160 4,366,855,142 - - - 6,351,789,302
Profit for the year - - - - 933,446,920 933,446,920
At the end of the year Tk. 4,056,065,030 4,628,570,522 329,879,705 2,031,497,144 (408,264,344) 10,637,748,057

The notes are an integral part of the Financial Statements.

Approved and authorized for issue by the board of directors on April 29, 2010 and signed for and on behalf of the Board.

A S F Rahman Salman F Rahman M A Qasem


Chairman and Managing Director Vice Chairman Director

Per our report of even date.

April 29, 2010 M.J. Abedin & Co.


Dhaka. Chartered Accountants
BEXTEX Limited Annual Report 2009 21

CASH FLOWS STATEMENT


For the year ended 31 December 2009

2009 2008
Amount in Taka Amount in Taka

Cash Flows from Operating Activities :


Cash Receipts from Customers and Others 6,646,084,391 3,190,602,600
Cash Paid to Suppliers and Employees (5,359,326,918) (3,043,303,205)
Cash Generated from Operations 1,286,757,473 147,299,395
Interest Paid (2,006,166,127) (1,261,679,027)
Income Tax Paid & Deducted at Source (56,338,512) (20,396,366)
Net Cash (Used in) / Generated from Operating Activities (775,747,166) (1,134,775,998)
Cash Flows from Investing Activities :
Acquisition of Property, Plant and Equipment (2,381,789,851) (986,841,760)
Net Cash Used in Investing Activities (2,381,789,851) (986,841,760)
Cash Flows from Financing Activities :
New Allotment of Shares including Premium 6,351,789,302 -
Increase /(decrease) in Long Term Borrowings (1,605,294,361) 1,945,272,911
Increase/(decrease) in Short Term Borrowing (1,578,840,462) 181,255,969
Net Cash Generated from/(Used in) Financing Activities 3,167,654,479 2,126,528,880
Increase in Cash and Cash Equivalents 10,117,462 4,911,122
Cash and Cash Equivalents at Beginning of Year 17,132,210 12,221,088
Cash and Cash Equivalents at End of Year Tk. 27,249,672 17,132,210

The notes are an integral part of the Financial Statements.

Approved and authorized for issue by the board of directors on April 29, 2010 and signed for and on behalf of the Board.

A S F Rahman Salman F Rahman M A Qasem


Chairman and Managing Director Vice Chairman Director

Per our report of even date.

April 29, 2010 M.J. Abedin & Co.


Dhaka. Chartered Accountants
22 BEXTEX Limited Annual Report 2009

Notes to the Financial Statements


As at and for the year ended 31 December 2009

1.00 Reporting Entity


1.01 Company Profile
Bextex Limited (formerly known as Padma Textile Mills Limited) was incorporated in Bangladesh in 1984 under the Companies Act, 1913 as
a Public Limited Company. It commenced its manufacturing operation in 1990. The company became a listed company in 1992.
The name of the company has been changed during the year 2006.
The shares of the Company are traded in Dhaka and Chittagong Stock Exchanges of Bangladesh.
During the year 2006, the company took over, under a Scheme of Amalgamation, erstwhile Beximco Textiles Ltd., Beximco Knitting Ltd. and
Beximco Denims Ltd., the three listed companies of the Beximco Group engaged in manufacturing and marketing of high quality woven,
knit and denim fabric that are consumed by the export oriented garments industries of Bangladesh.
The registered office of the company is located at House No. 17, Road No. 2, Dhanmondi R/A, Dhaka. The industrial units are located at Tatki
of Narayanganj and Beximco Industrial Park in Sarabo of Gazipur.

1.02 Nature of Business


It is engaged in manufacturing and marketing of yarn that are consumed by weaving mills of Bangladesh including its own weaving mills
producing and marketing of high quality fabric, that are eventually consumed by the export oriented garments industries of Bangladesh
including the garments factories of Beximco Group.

2.00 Basis of Preparation of Financial Statements


2.01 Basis of Measurement
The financial statements have been prepared on the Historical Cost basis except for certain fixed assets that were restated at replacement
costs, and therefore, do not take into consideration the effect of inflation except that the Lands, Buildings and Plant & Machinery as of 31st
December, 2009 are re-stated at current cost.
Accordingly, historical cost is employed to determine the monetary amounts at which the elements of the financial statements are to be
recognized and carried in the balance sheet and income statement.
Under the Historical Cost, assets are recorded at the amount of cash or cash equivalents paid or the fair value of the consideration given to
acquired them at the time of their acquisition. Liabilities are recorded at the amount of proceeds received in exchange for the obligation, or
in some circumstances (for example, income taxes), at the amounts of cash or cash equivalents expected to be paid to satisfy the liability
in the normal course of business.

2.02 Statement of Compliance


The financial statements have been prepared in compliance with the requirements of the Companies Act 1994, the Securities & Exchange
Rules 1987, the Listing Regulations of Dhaka and Chittagong Stock Exchanges and other relevant local laws as applicable, and have been
prepared in accordance with the applicable Bangladesh Financial Reporting Standards (BFRSs) including Bangladesh Accounting Standards
(BASs) adopted by the Institute of Chartered Accountants of Bangladesh (ICAB) based on International Financial Reporting Standards
(IFRSs) and International Accounting Standards (IASs).

2.03 Presentation of Financial Statements


The presentation of these financial statements is in accordance with the guidelines provided by BAS 1: Presentation of Financial
Statements.

2.04 Reporting Period


The financial period of the company covers one calendar year from 1st January to 31st December consistently.
2.05 Approval of Financial Statements
The financial statements were approved by the Board of Directors on April 29, 2010.
BEXTEX Limited Annual Report 2009 23

Notes to the Financial Statements


As at and for the year ended 31 December 2009

2.06 Reporting Currency


The financial statements are prepared and presented in Bangladesh Currency (Taka), which is the company’s functional currency. All
financial information presented has been rounded off to the nearest Taka except where indicated otherwise.

2.07 Comparative Information


Comparative information has been disclosed in respect of the year 2008. Comparative amounts have been re-classified to conform with
the current year’s presentation whenever considered necessary.

2.08 Use of Estimates and Judgments


The preparation of financial statements in conformity with Bangladesh Accounting Standards requires management to make judgments,
estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and
expenses, and disclosure requirements for contingent assets and liabilities during and at the date of the financial statements.
Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions of
accounting estimates are recognized in the period in which the estimate is revised and in any future periods affected as required by BAS
8: Accounting Policies, Changes in Accounting Estimates and Errors. In particular, significant 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.

2.09 Provisions
In accordance with the guidelines as prescribed by BAS 37 : Provisions, Contingent Liabilities and Contingent Assets, provisions are
recognized in the following situations:
a. when the company has an obligation (legal or constructive) as a result of past events;
b. when it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and
c. reliable estimate can be made of the amount of the obligation.

3.00 Significant Accounting Policies


The accounting policies in respect of material items of financial items of financial statements have been set out below:

3.01 Revenue Recognition


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.

3.02.00 Property, Plant and Equipment

3.02.01 Recognition and Measurement


Property, plant and equipment are capitalized at historical cost except for certain fixed assets that were restated at replacement costs of
acquisition and subsequently stated at cost less accumulated depreciation in compliance with the requirements of BAS 16 : Property, Plant
and Equipment. The historical cost of acquisition of an asset comprises its purchase price and any directly attributable cost of bringing the
assets to its working condition for its intended use inclusive of inward freight, duties and non-refundable taxes. However, as a requirement
of the Companies Act 1994, exchange loss/gain relating to foreign currency loan has been capitalized to/deducted from cost of relevant
fixed assets being procured under the said loan.

3.02.02 Pre-Operating Expenses and Borrowing Costs


In respect of major projects involving construction, related pre-operational expenses form part of the value of assets capitalized. Expenses
capitalized also include applicable borrowing cost considering the requirement of BAS 23: Borrowing Costs.
24 BEXTEX Limited Annual Report 2009

Notes to the Financial Statements


As at and for the year ended 31 December 2009

3.02.03 Subsequent Costs and Maintenance Activities


The company recognizes in the carrying amount of an item of property, plant and equipment the cost of replacing part of such an item
when the cost is incurred, it is probable that the future economic benefits embodied with the item will flow to the company and the cost
of the item can be measured reliably. Expenditure incurred after the assets have been put into operation, such as repair and maintenance
is normally charged off as revenue expenditure in the period in which it is incurred. In situation where it can be clearly demonstrated that
the expenditure has resulted in an increase in the future economic benefit expected to be obtained from the use of fixed assets, the
expenditure is capitalized as an additional cost of the assets. All other costs are recognized to the profit and loss account as expenses if
incurred. All up-gradation/enhancement are generally charged off as revenue expenditure unless they bring similar significant additional
benefits.

3.02.04 Software
Software is generally charged off as revenue expenditure. Purchased software that is integral to the functionality of the related equipment
is capitalized as part of that equipment.

3.02.05 Disposal of Fixed Assets


On Disposal of Fixed Assets, the cost and accumulated depreciation are eliminated and gain or loss on such disposal is reflected in the
income statement, which is determined with reference to the net book value of the assets and net sales proceeds.

3.02.06 Depreciation of Fixed Assets


Depreciation is provided at the following rates on straight-line basis over the periods appropriate to the estimated useful lives of the
different types of assets:
Factory Building and Other Construction 2% - 10%
Plant & Machinery 5% - 10%
Furniture & Fixtures 20%
Transport & Vehicle 20%
Equipment 10% - 20%

3.02.07 Impairment
In accordance with the provisions of BAS 36 : Impairment of Assets, the carrying amount of non-financial assets, other than inventories are
reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the assets
recoverable amount is estimated and impairment losses are recognized in profit and loss account. No such indication of impairment has
been raised till to date.

3.03 Borrowing Costs


This has been dealt with the requirement of BAS 23 : Borrowing Costs.
Borrowing costs relating to projects in commercial operation are recognized as expenses in the year in which they are incurred. In respect
of projects that have not yet commenced commercial production, borrowing costs are debited to capital work in progress.
3.04 Inventories
Inventories are carried at the lower of cost and net realizable value as prescribed by BAS 2: Inventories, Cost is determined on weighted
average cost basis. The cost of inventories comprises of expenditure incurred in the normal course of business in bringing the inventories to
their present location and condition. Net realizable value is based on estimated selling price less any further costs expected to be incurred
to make the sale.

3.05 Accounts Receivable


Accounts Receivable are recognized at cost which is fair value of the consideration given for them.
BEXTEX Limited Annual Report 2009 25

Notes to the Financial Statements


As at and for the year ended 31 December 2009

3.06 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 account heads.
Deposits are measured at payment value.
Prepayments are initially measured at cost. After initial recognition, prepayments are carried at cost less charges to profit and loss
account.

3.07 Cash and Cash Equivalents


Cash and Cash Equivalents are carried in the balance sheet at cost and includes cash in hand and with banks on current and deposit
accounts, which are held and available for use by the company without any restriction. There is insignificant risk of change in value of the
same.

3.08 Income Tax Expense


(a) Current Tax has been provided at 15% tax rate applicable for textile industries.
(b) Deferred Tax income is not provided as it is probable that future taxable profit will not be available against which temporary
differences can be utilised.

3.09 Lease Assets


In compliance with the BAS 17: Leases, cost of assets acquired under finance lease along with related obligation has been accounted for as
assets and liabilities respectively of the company, and the interest element has been charged as expenses.

3.10 Lease Payment


Lease payments made under finance leases are apportioned between the finance expenses and the reduction of the outstanding
liability.

3.11 Employee Benefits


The company has accounted for and disclosed of employee benefits in compliance with the provisions of BAS 19: Employee Benefits.
The costs of employee benefits are charged off as revenue expenditure in the period to which the contributions relate.
The company’s employee benefit includes the following:
Defined Contribution Plan
This represents recognized contributory provident fund for all its permanent employees. Assets of provident fund are held in a separate
trustee administered fund as per the relevant rules and are funded by contributions from both the employees and the company at pre-
determined rates.
3.12 Statement of Cash Flows
The Statement of Cash Flows has been prepared in accordance with the requirements of BAS 7 : Statement of Cash Flows.
The cash generating from operating activities has been reported using the Direct Method as prescribed by the Securities and Exchange
Rules 1987 and as the benchmark treatment of BAS 7 whereby major classes of gross cash receipts and gross cash payment from operating
activities are disclosed.

3.13 Earnings Per Share (EPS)


This has been calculated in compliance with the requirements of BAS 33: Earnings Per Share by dividing the basic earnings by the weighted
average number of ordinary shares outstanding during the year.
Basic Earnings
This represents earnings for the year attributable to ordinary shareholders. As there was no preference dividend, minority interest or extra
ordinary items, the net profit after tax for the year has been considered as fully attributable to the ordinary shareholders.
26 BEXTEX Limited Annual Report 2009

Notes to the Financial Statements


As at and for the year ended 31 December 2009

Weighted Average Number of Shares in Issue


Current Year (2009)
This represents the number of ordinary shares outstanding at the beginning of the year plus the number of ordinary shares issued during
the year multiplied by a time-weighting factor is the number of days the specific shares are outstanding as a proportion of the total number
of days in the year. However, the Bonus Shares issued during the year 2009 were treated as if they always had been in issue. Hence, in
computing the Basic EPS of 2009, the total number of bonus shares has been considered.

Earlier Year (2008)


The number or shares outstanding before the bonus shares issue has been adjusted for the proportionate change in the number of shares
outstanding as if the bonus issues had occurred at the beginning of the earliest period reported (2008), and accordingly, in calculating the
adjusted EPS of 2008, the total number of shares including the subsequent bonus issue in 2009 has been considered as the weighted
average number of shares outstanding during the year 2008.
The basis of computation of number of shares as stated above, is in line with the provisions of BAS 33 : Earnings Per Share. The logic
behind this basis, as stated in the said BAS is that the bonus shares are issued to the existing shareholders without any consideration, and
therefore, the number of shares outstanding is increased without an increase in resources generating new earnings.
Diluted Earnings Per Share
No diluted EPS is required to be calculated for the year as there was no scope for dilution during the year under review.

3.14 Foreign Currency Transactions


The financial records of the company are maintained and the financial statements are stated in Bangladeshi Taka. Foreign currency
transactions are recorded at the applicable rates of exchange ruling at the transaction date.
The monetary assets and liabilities, if any, denominated in foreign currencies at the balance sheet date are translated at the applicable
rates of exchanges ruling at that date. Exchange differences are charged off as revenue expenditure in compliance with the provisions of
BAS 21: The Effects of Changes in Foreign Exchange Rates. However, as a requirement of the Companies Act 1994, exchange loss relating
to foreign currency loan has been capitalized to/deducted from cost of relevant fixed assets being procured under the said loan.

The rates of relevant foreign currency exchanges at year-end are:


2009 2008
1 US Dollar ($) = Tk. 69.4500 69.4500
1 EURO (€) = Tk. 100.3126 99.6469
1 Japanese Yen (¥) = Tk. 0.7590 00.7953
1 Pound Sterling (£) = Tk. 111.9618 102.4665

3.15 Proposed Dividend


The amount of proposed dividend has not been accounted for but disclosed in the notes to the accounts alongwith dividend per share in
accordance with the requirements of Para 125 of International Accounting Standard (IAS) 1: Presentation of Financial Statements. Also, the
proposed dividend has not been considered as “Liability” in accordance with the requirements of Para 12 & 13 of International Accounting
Standard (IAS) 10: Events After The Reporting Period, because no obligation exists at the time of approval of accounts and recommendation
of dividend by the Board of Directors.
BEXTEX Limited Annual Report 2009 27

Notes to the Financial Statements


As at and for the year ended 31 December 2009

4 Property, Plant and Equipment : Tk.13,416,139,550


The movement in Property, Plant and Equipment is as follows:

Particulars Land Building & Other Plant & Equipment Furniture & Transport & Capital Work in Total
Construction Machinery Fixtures Vehicles Progress Taka
Cost/Valuation as at 1 January 2009 3,888,500,000 2,820,214,137 10,295,909,698 135,185,513 124,009,183 33,296,116 - 17,297,114,647
Additions in 2009 95,865,328 602,500,000 826,242,684 3,706,912 559,927 2,915,000 850,000,000 2,381,789,851
At 31 December 2009 3,984,365,328 3,422,714,137 11,122,152,382 138,892,425 124,569,110 36,211,116 850,000,000 19,678,904,498
Accumulated Depreciation At 1 Januray 2009 - 676,981,593 4,561,851,131 97,750,980 121,954,031 33,296,115 - 5,491,833,850
Depreciation charge for 2009 - 96,763,292 659,434,055 13,889,243 261,508 583,000 - 770,931,098
At 31 December 2009 - 773,744,885 5,221,285,186 111,640,223 122,215,539 33,879,115 - 6,262,764,948
Carrying Amount at 31 December 2009 3,984,365,328 2,648,969,252 5,900,867,196 27,252,203 2,353,571 2,332,001 850,000,000 13,416,139,550
Carrying Amount at 31 December 2008 3,888,500,000 2,143,232,544 5,734,058,567 37,434,533 2,055,152 1 - 11,805,280,797

Property, Plant & Equipment at cost includes Tk. 143,703,483 acquired under finance lease, the written down value of which was
Tk. 116,584,995 as at 31 December 2009.

2009 2008
5 Long Term Security Deposits : Tk. 43,530,686
This represents the amount deposited with utility providers in respect of :
Rural Electrification Board (REB) for Electricity 1,896,983 1,896,983
Dhaka Electric Supply Authority (DESA) for Electricity 1,072,000 1,072,000
Bangladesh Telegraph and Telephone Board (BTTB) for Telephone 50,000 675,715
Titas Gas Transmission & Distribution Co. Ltd. for Gas 23,011,703 25,546,376
Bank Gaurantee for Power Plant 17,500,000 -
Tk. 43,530,686 29,191,074
6 Deferred Assets : Tk. 18,997,013
This consists of :
Deferred Loss on Asset Sale and Lease Back 18,997,013 20,843,945
Tk. 18,997,013 20,843,945
28 BEXTEX Limited Annual Report 2009

Notes to the Financial Statements


As at and for the year ended 31 December 2009

2009 2008
7 Inventories : Tk. 2,742,675,600
This consists of :
(a) Raw Material : 723,864,801 738,790,578
Cotton (3,801,352 Lbs.) (in 2008: 3,654,696 Lbs.) 257,240,305 233,535,066
Polyester (81,799 Lbs.) (in 2008: 331,845 Lbs.) 3,952,546 15,606,753
Yarn (2,005,324 Kgs.) (in 2008: 2,736,308 Kgs.) 363,236,626 426,462,700
Dyes & Chemical (567,009 Kgs.) (in 2008: 357,428 Kgs.) 99,435,324 63,186,059
(b) Work In Process 999,753,470 1,027,951,758
Fiber (907,157 Lbs.) (in 2008: 1,099,926 Lbs.) 67,673,935 54,589,320
Yarn (3,712,906 Lbs.) (in 2008: 4,023,586 Lbs.) 355,125,497 382,884,435
Fabric - Knit (952,876 Kgs.) (in 2008: 934,303 Kgs.) 226,885,539 222,317,493
Fabric (3,661,135 Lm.) (in 2008: 3,561,733 Lm.) 350,068,499 368,160,510
(c) Finished Goods 862,921,128 809,666,972
Yarn (3,867,944 Lbs.) (in 2008: 4,539,174 Lbs.) 370,725,461 360,790,520
Woven Fabric (2,203,859 Lm.) (in 2008: 1,905,310 Lm.) 256,780,394 230,466,218
Knit Fabric (213,539 Kgs.) (in 2008: 156,331 Kgs.) 72,411,081 51,917,596
Denim Fabric (1,085,898 Lm.) (in 2008: 1,135,383 Lm.) 163,004,192 166,492,638
(d) Packing Materials 1,468,328 9,444,860
(e) Stores and Spares 154,667,873 147,209,696
Tk. 2,742,675,600 2,733,063,864

8 Trade Debtors : Tk.4,986,086,053


This is considered good, and is falling due within one year.
No amount was due by the Directors (including Managing Director), Managing Agent, Managers and other officers of the Company and any
of them severally or jointly with any other person.

9 Advances, Deposits and Prepayments : Tk. 921,155,433


This consists of :
Advances : 411,364,143 228,086,250
Suppliers 285,987,564 164,480,488
Salaries 34,169,872 2,352,200
Mill Petty Expenses 2,250,938 13,242,976
Other Suppliers 6,458,796 1,379,055
Expenses 45,898,732 19,536,192
Duty & Clearing Advance 36,598,241 27,095,339
Deposits : 431,931,555 432,518,910
L.C. Margin 266,626,149 280,939,966
Guarantee Margin and Miscellaneous Deposits 165,305,406 151,578,945
Prepaid Expenses 77,859,735 54,268,682
Tk. 921,155,433 714,873,842

(a) No amount was due by the Directors (including Managing Director), Managing Agent, Managers and other officers of the company and
any of them severally or jointly with any other person.
(b) The advances are good and unsecured.
BEXTEX Limited Annual Report 2009 29

Notes to the Financial Statements


As at and for the year ended 31 December 2009

2009 2008
10 Cash and Cash Equivalents : Tk. 27,249,672

This consists of :
(a) Cash in Hand 7,575,139 13,326,311
(b) Cash at Banks: 19,674,533 3,805,899
In Current Accounts 18,961,112 3,407,487
In STD Accounts 713,421 398,412
Tk. 27,249,672 17,132,210
11 Share Capital : Tk. 4,056,065,030
(a) Authorised Capital:
500,000,000 Ordinary Shares of Tk 10 each Tk. 5,000,000,000 3,000,000,000
(b) Issued, Called-up and Paid-up Capital:
405,606,503 Ordinary Shares of Tk 10 each 4,056,065,030 1,882,846,251
405,606,503 Ordinary Shares of Tk 10 each Tk. 4,056,065,030 1,882,846,251
(c) Composition of shareholdings 2009 2008
No. of Shares % No. of Shares %
Sponsor 81,737,350 20.15 74,306,683 39.47
Public 323,869,153 79.85 113,977,942 60.53
405,606,503 100 188,284,625 100
(d) Distribution Schedule - Disclosures Under the Listing Regulations of Stock Exchanges
The distribution schedule showing the number of shareholders and their Share holdings in percentage has been disclosed below as a
requirement of the “Listing Regulations of Dhaka and Chittagong Stock Exchanges”.

2009
Share holdings range in number of shares Number of No. of Shares % of total
shareholders shareholders
1 to 499 32,436 4,952,316 1.22
500 to 5,000 15,984 25,086,805 6.19
5,001 to 10,000 1,211 9,014,619 2.22
10,001 to 20,000 551 8,174,707 2.02
20,001 to 30,000 213 5,353,098 1.32
30,001 to 40,000 99 3,500,842 0.86
40,001 to 50,000 68 3,185,917 0.79
50,001 to 100,000 120 9,435,870 2.33
100,001 to 1,000,000 114 36,659,240 9.04
over 1,000,000 30 300,243,089 74.02
Total 50,826 405,606,503 100.00
(e) Option of Unissued Shares
There is no option regarding authorised capital not yet issued but can be used to increase the issued, subscribed and paid-up capital
through the issuance of new shares.
(f) Market Price
The shares of the company are listed with in the Dhaka and Chittagong Stock Exchanges and quoted at Tk.81.40 (in 2008: Tk. 23.90)
per share and Tk. 81.70 (in 2008: Tk. 23.80) per share in the Dhaka and Chittagong Stock Exchanges respectively on 31 December,
2009.
(g) Voting Rights
The rights and privileges of the shareholders are stated in the Bye-laws (Articles of Association) of the Company.
30 BEXTEX Limited Annual Report 2009

Notes to the Financial Statements


As at and for the year ended 31 December 2009

12 10% Debentures-Net of Current Maturity (Secured) : Tk. 871,051,272


This is redeemable after twelve months from the date of balance sheet.
The Debentures are secured by first paripassu charge by way of an equitable mortgage on all the fixed assets of the Company alongwith
CDC Group plc., DEG, Bangladesh Development Bank and Marubeni Corporation. The Debenture holders will rank senior alongwith CDC
Group plc., DEG, BDB and Marubeni Corporation to other creditors on the assets of the Company on liquidation / winding up.
On 24.11.2008, a meeting was held between the Company, the institutional debentureholders and the Investment Corporation of
Bangladesh, the trustee of debentures, in which decision was taken to consider re-scheduling the principal and interest on the outstanding
debentures of Bextex Ltd on such terms and conditions as decided in the meeting .

13 Long Term Loans - Net of Current Maturity (Secured) : Tk. 5,797,210,684


This represents that portion of long term loans which is repayable after twelve months from the balance sheet date.

2009 2008
(a) Secured Loans from Banking Companies and other Financial Institutions :
Foreign Currency Loans: - 1,351,944,294
CDC Group Plc (In 2008: GBP 1,142,856) - 117,104,454
DEG, Germany (In 2008: EURO 1,169,018) - 116,488,980
Marubeni Corporation (In 2008 : JPY 1,406,200,000) - 1,118,350,860
Local Currency Loans : 5,744,295,326 3,663,401,790
Sonali Bank Ltd. - IBP Loan 707,324,558 789,379,729
Sonali Bank Ltd. - PAD Block 1,467,532,189 862,452,120
Sonali Bank Ltd. - Interest free 100,349,531 63,136,441
Sonali Bank Ltd. - Interest bearing Block A/C (CCP & CCH) 670,772,451 -
Rupali Bank Ltd. -Term Loan 1 354,892,000 303,613,942
Rupali Bank Ltd. -Term Loan 2 235,484,000 202,033,379
Rupali Bank Ltd.- Interest Free Block Loan 180,346,902 112,306,902
Rupali Bank Ltd.- PAD Segrigation A/C (Force Loan) 666,973,987 665,219,710
Rupali Bank Ltd.- CCP & CCH Segrigation A/C 776,523,280 -
Bangladesh Development Bank Ltd. ( Former BSB) -Term Loan 92,236,856 91,159,753
Bangladesh Development Bank Ltd. ( Former BSB) - Interest Block 52,501,596 17,315,154
Citibank NA - Term Loan PTML 92,574,778 142,574,701
IFIC Bank Ltd. - Term Loan (PAD) 88,690,742 114,442,404
IFIC Bank Ltd. - Term Loan 143,954,916 228,234,555
Standard Chartered Bank Plc - Fixed Loan - 45,358,000
The City Bank Ltd. 97,040,000 -
Janata Bank Ltd. - CCH Block 3,366,000 8,415,000
Janata Bank Ltd. - PAD Block 5,366,000 17,760,000
National Bank Ltd. 8,365,540 -
Lease Finance : 52,915,358 55,432,032
IIDFC Ltd. - 9,565,589
International Leasing And Financial Services Ltd 14,323,333 -
First Lease International Ltd 38,592,025 45,866,443
(b) Unsecured Loans from Associated Undertakings/Related Parties : - 1,731,536,258
Bangladesh Export Import Co. Ltd.-Interest bearing - 1,321,750,374
Bangladesh Online Ltd.- No interest - 150,000,000
Shine Pukur Ceramic Ltd - Interest bearing - 259,785,884
Tk. 5,797,210,684 6,802,314,374
BEXTEX Limited Annual Report 2009 31

Notes to the Financial Statements


As at and for the year ended 31 December 2009

Nature of Security :
Pursuant to supplemental Lenders’ Paripassu Security Sharing Agreement between the Company and the Lenders, the loans are
secured by :
(i) first paripassu equitable mortgage of immovable property of present and future; and
(ii) first paripassu charge by way of hypothecation on all other assets of the company both present and future Terms of Repayment :
Terms of repayment of foreign currency loans as per repayment schedule
CDC Group Plc. : In 14 (fourteen) half-yearly installments beginning from 30 November 2004 and ending on 30 November 2011.
DEG : In 14 (fourteen) half-yearly installments beginning from 30 October 2004 and ending on 30 April 2011.
Marubeni (PTML): In 16 (sixteen) semi-annual installments beginning from 25 July 2005 and ending on 25 Jan 2013.
Marubeni (BTL): In 12 (twelve) semi-annual installments beginning from 24 Aug 2005 and ending on 24 Feb 2011.
Rate of interest
CDC Group Plc. : 3.00% over GBP LIBOR
DEG : 3.00% over Euro LIBOR
Marubeni : 3.00% over LTPR
Local bank loans : varies 10% to 15%
Bangladesh Export Import Co. Ltd. : 15% p.a.
Shine Pukur Ceramic Ltd. : 15% p.a.
Beximco Holdings Ltd. : 10% p.a.

14 Security Deposit From Distributor : Tk. 15,000,000


This was received from Bangladesh Yarn Syndicate, the distributor of the company.
2009 2008
15 Short Term Loans : Tk. 2,704,930,953
This consists of :
(a) Secured Loans from Banks :
Standard Chartered Bank Plc -CCH 42,462,221 46,007,040
Standard Chartered Bank Plc -LATR - 29,825,433
Standard Chartered Bank Plc - 40,173
Citi Bank NA - Cash Credit 84,895,736 80,788,571
Rupali Bank Ltd. - Overdraft 889,116,120 1,314,971,538
Rupali Bank Ltd. - CCP 102,869,790 157,950,634
Sonali Bank Ltd. - CCH 602,082,218 736,942,125
Sonali Bank Ltd. - CCP 530,494,266 800,704,500
Sonali Bank Ltd. - PAD - 637,575,998
Sonali Bank Ltd. - Cash Subsidy 52,142,906 57,431,678
State Bank of India - CCH 122,056,754 122,051,172
Janata Bank Ltd. - Cash Subsidy - 20,064,613
Janata Bank Ltd. - CCH 278,810,942 279,417,941
Tk. 2,704,930,953 4,283,771,415

16 10% Debentures - Current Maturity (Secured) : Tk. 173,888,054


This is redeemable after twelve months from the date of balance sheet.
32 BEXTEX Limited Annual Report 2009

Notes to the Financial Statements


As at and for the year ended 31 December 2009

2009 2008
17 Long Term Loans - Current Maturity (Secured) : Tk. 1,393,544,111
This represents that portion of long term loans which is repayable within twelve months from the balance sheet date and includes the
following :
Foreign Currency Loans : - 1,446,900,158
CDC Group Plc (In 2008: GBP 2,089,958) - 214,150,662
DEG, Germany (In 2008: EURO 2,098,758) - 209,134,772
Marubeni Corporation (In 2008: JPY 1,287,080,000) - 1,023,614,724
Local Currency Loans : 1,340,773,622 523,013,216
Sonali Bank Ltd. - IBP Loan 251,373,957 -
Sonali Bank Ltd. - PAD Block 521,985,570 -
Sonali Bank Ltd. - Interest free 9,122,686 46,330,176
Sonali Bank Ltd. - Interest bearing Block A/C (CCP & CCH) 152,313,720 -
Rupali Bank Ltd. -Term Loan 1 28,999,505 -
Rupali Bank Ltd. -Term Loan 2 19,114,886 -
Rupali Bank Ltd. - Interest Free Block Loan 10,610,000 78,650,000
Rupali Bank Ltd. - PAD Block Loan 42,584,214 -
Rupali Bank Ltd. - CCP & CCH Segrigation A/C 42,940,000 -
Bangladesh Development Bank Ltd. (Former BSB) -Term Loan 11,600,000 75,803,232
Bangladesh Development Bank Ltd. (Former BSB) - Interest Block 5,600,000 7,814,573
Citibank NA - Term Loan PTML 77,145,649 61,716,519
IFIC Bank Ltd. - IDBP 33,572,255 6,653,031
IFIC Bank Ltd. - Term Loan 46,856,030 76,072,504
Standard Chartered Bank plc-Fixed Loan 15,458,000 -
The City Bank Ltd. - Term Loan 32,290,442 145,240,004
Janata Bank Ltd. - CCH Block 6,872,393 10,242,271
Janata Bank Ltd. - PAD Block 15,747,700 14,490,906
National Bank Ltd. -Term Loan 16,586,615 -
Lease Finance : 52,770,489 59,226,229
IIDFC Ltd. 25,747,523 45,237,238
International Leasing And Financial Services Ltd. 6,167,449 -
First Lease International Ltd. 20,855,517 13,988,991
Tk. 1,393,544,111 2,029,139,603
18 Creditors and Accruals : Tk. 562,460,876
This is falling due within one year.

19 Revenue : Tk. 7,866,257,822


This is arrived at as follows:
Sale of Yarn (13,095,429 Lbs.) (in 2008: 13,417,685 Lbs.) 1,259,749,690 1,161,270,242
Sale of Woven Fabric (34,729,053 Lm.) (in 2008: 17,557,735 Lm.) 5,161,193,116 2,471,112,313
Sale of Knit Fabric (1,203,434 kgs.) (in 2008: 1,247,567 Kgs.) 467,234,568 406,080,296
Sale of Denim Fabric (3,866,341 Lm.) (in 2008: 2,264,973 Lm.) 565,765,088 303,160,913
Cash Subsidy 196,739,439 123,555,616
Sale of Waste 160,852,404 112,507,509
Commission Work 54,723,517 182,550,300
Tk. 7,866,257,822 4,760,237,189
BEXTEX Limited Annual Report 2009 33

Notes to the Financial Statements


As at and for the year ended 31 December 2009

2009 2008
20 Cost of Revenue : Tk. 4,936,690,149
This is arrived at as follows :
Material Consumed (Note - 21) 4,136,120,997 2,383,465,451
External Processing cost 38,436,155 11,577,471
Manufacturing Overhead (Note - 22) 787,188,865 642,778,273
Manufacturing costs for the year 4,961,746,017 3,037,821,195
Work in Process Inventory Differential 28,198,288 29,316,890
Cost of Goods Manufactured 4,989,944,305 3,067,138,085
Finished Goods Inventory Differential (53,254,156) 23,046,802
Cost of Revenue Tk. 4,936,690,149 3,090,184,887

21 Material Consumed : Tk. 4,136,120,997


This is arrived at as follows :
Cotton (29,668,501 Lbs.) (in 2008: 22,428,208 Lbs.) 2,011,179,158 1,307,115,436
Polyester (3,456,865 Lbs.) (in 2008: 2,017,874 Lbs.) 165,966,356 112,979,935
Yarn (5,675,298 Kgs.) (in 2008: 3,028,616 Kgs.) 1,086,618,352 490,570,152
Gray Fabric (5,580,362 Lm.) (in 2008; 2,465,522 Lm.) 414,799,422 153,775,041
Dyes & Chemical (2,569,452 Kgs.) (in 2008: 3,669,115 Kgs.) 457,557,709 319,024,887
Tk. 4,136,120,997 2,383,465,451
22 Manufacturing Overhead : Tk. 787,188,865
This consists of :
Wages & Allowances 344,194,410 263,067,267
Power and Gas 297,041,718 229,306,784
Indirect Materials 70,147,202 31,581,998
Insurance premium 2,422,368 4,864,626
Repairs & Maintenance 67,417,103 104,329,452
Medical Expenses & Others 1,015,426 620,916
Travel, Training & Conveyance 487,487 380,609
Telephone, Telex & Fax 71,673 125,640
Printing & Stationery 1,127,001 822,735
Miscellaneous Overhead 3,264,477 7,678,246
Tk. 787,188,865 642,778,273
23 Administrative Expenses : Tk. 294,146,231
This consists of :
Salary & Allowances 215,372,910 163,715,786
Office Rent 1,675,284 1,619,196
Traveling and Conveyance 21,999,927 19,184,924
Entertainment 4,019,394 2,600,397
Telephone, Telex, Fax and Postage 11,293,819 9,143,942
Vehicle Upkeep & Fuel 14,508,611 25,847,952
Utilities 569,920 444,029
AGM and Secretarial expenses 3,629,750 5,747,338
Auditors’ Remuneration (Audit fee) 522,500 418,000
Directors’ Board Meeting Fee 3,000 3,000
Insurance Premium 7,319,401 818,812
Repairs & Maintenance 4,147,224 2,401,613
Printing, Stationery & Photocopy 487,862 1,682,529
Write off Deferred Loss on Asset Sale and Lease Back 1,846,932 1,846,932
Other Expenses 6,749,697 5,309,878
Tk. 294,146,231 240,784,328
34 BEXTEX Limited Annual Report 2009

Notes to the Financial Statements


As at and for the year ended 31 December 2009

2009 2008
24 Financial Expenses : Tk. 688,667,966
This is made up as follows :
Interest on Long Term Loans 756,213,213 732,803,471
Interest on Short Term Loans 409,433,530 497,810,267
Bank Charges & Commission 130,022,323 70,042,931
1,295,669,066 1,300,656,669
Interest Waived on Final settlement of Foreign Loan & Interest (Notes-29) (607,001,100) -
Tk. 688,667,966 1,300,656,669
25 Income Tax Expenses : Tk. 164,725,927
Current Tax @15% on Net Profit Before Tax 164,725,927 -
Tk. 164,725,927 -
26 Basic Earnings Per Share (EPS) : Tk. 4.16
(a) Profit after tax Tk. 933,446,920 (608,655,866)
(b) Weighted average number of shares in issue (Notes -27) 224,572,628 207,113,087
Basic EPS (a/b) (adjusted EPS of 2008) Tk. 4.16 (2.94)

27 Computation of Weighted Average Number of Shares of 2009


No. of Shares Issued Date of Issue Days Weighted Weighted Average Number
Opening Shares 188,284,625 Opening 365 188,284,625
Bonus Shares issued (10% stock Dividend for 2008) 18,828,462 Opening 365 18,828,462
New allotment made (1st Stage) 126,004,874 12-Nov-09 50 17,260,942
New allotment made (2nd Stage) 72,488,542 31-Dec-09 1 198,599
Total 405,606,503 224,572,628

28 New Allotment of shares (Against Loans)


Loan Amount BDT Nos. of Shares Share Value @ Tk.10 Premium Value @ Tk.22
Loan outstanding as at Sept’09 for DEG 394,370,614 12,324,082 123,240,820 271,129,794
Loan outstanding as at Sept’09 for CDC 437,785,359 13,680,792 136,807,920 300,977,439
Loan outstanding as at Sept’09 for Marubeni Corporation 2,319,633,329 72,488,542 724,885,420 1,594,747,909
Beximco Group 3,200,000,000 100,000,000 1,000,000,000 2,200,000,000
Total 6,351,789,302 198,493,416 1,984,934,160 4,366,855,142

29 Remission of Foreign Loans : Tk. 607,001,100


Currency Foreign Currency BDT
Loan outstanding as at Sept’09 for DEG Euro 4,100,953 394,370,614
Paid to DEG as Final Settlement 3,280,762 340,302,944
Gain on Final Settlement 820,191 54,067,670
Loan outstanding as at Sept’09 for CDC GBP 3,980,084 437,785,359
Paid to CDC as Final Settlement 3,151,862 355,687,627
Gain on Final Settlement 828,222 82,097,732
Loan outstanding as at Sept’09 for Marubeni Corporation Japaness Yen 3,300,954,197 2,319,633,329
Paid to Marubeni Corporation as Final Settlement 2,310,667,000 1,848,797,631
Gain on Final Settlement 990,287,197 470,835,698
Total Gain on Foreign Loan Repayment TK. 607,001,100
BEXTEX Limited Annual Report 2009 35

Notes to the Financial Statements


As at and for the year ended 31 December 2009

30 Related Party Transactions


The Company carried out a number of transactions with related parties in the normal course of business and on arm’s length basis.
The nature of transactions and their total value is shown below:
Name of related parties Nature of Value of Receivable/
Transactions Transactions (Payable)
in 2009 at year end
Bangladesh Export Import Co. Ltd.-Intt. bearing Long Term Loan 1,321,750,374 -
Bangladesh Online Ltd.-No Intt. Long Term Loan 150,000,000 -
Shinepukur Ceramic Ltd. Intt. Bearing Long Term Loan 259,785,884 -
Nature of Relationship
The Company and the parties as stated above are subject to common control from same source i.e., BEXIMCO Group.
31 Contingent Liabilities
There was no contingent liability as on 31 December, 2009.
32 Capital Expenditure Commitment 2009 2008
Amount contracted but not provided for in these financial statements. Nil Nil
Amount authorised by the board of directors but not contracted for. Nil Nil
33 Un-Availed Credit Facility
There was no credit facility available to the company under any contract, but not availed of as on 31 December, 2009 other than trade
credit available in the ordinary course of business.

34 Foreign Exchange Earned


The Company had “deemed export” and as such, no foreign exchange was earned against sales. No other foreign exchange was earned or
received by Company during the year 2009.
35 Payment in Foreign Currency
In 2009, the Company remitted foreign currency in respect of the following:
(a) Repayment of loans and interest:
Lenders 2009 2008
Foreign Currency Total Foreign Currency Total
Principal Interest in Taka Principal Interest in Taka
CDC Group Plc.: GBP 3,151,862 - 355,687,627 - - -
DEG : Euro 3,280,762 - 340,302,944 - - -
AFIC : US$ - - - 500,000 - 34,685,000
Marubeni : JPY 2,310,667,000 - 1,848,797,631 - 10,550,000 7,069,555

(b) Payment against Imported Raw Materials & Spares:


2009 2008
Foreign Currency In Taka Foreign Currency In Taka
US $ 13,353,401 934,738,280 US $ 3,857,719 268,111,468

(c) No other expenses including royalty, technical expert and professional advisory fees etc. was incurred or paid by the company in
foreign currency, during the year 2009.

36 Commission, Brokerage or Discount Against Sales


(a) Distribution commission of Tk. 1,861,692 was incurred and paid during the year 2009 to the Bangladesh Yarn Syndicate, the distributor
of the Company.
(b) No other commission, brokerage or discount was incurred or paid by the Company against sales during the year 2009.
36 BEXTEX Limited Annual Report 2009

Notes to the Financial Statements


As at and for the year ended 31 December 2009

37 Production Capacity, Actual Production and reason of Excess/Short fall


(a) YARN
SPINDLES
No. of spindles installed 119,520
No. of spindles actually operated 119,520
Output capacity (Lbs)
Installed capacity 43,200,000
Actual production 28,804,600
(b) WOVEN FABRIC
LOOMS
No. of looms installed 293
No. of looms actually operated 293
Output capacity (Lm.)
Installed capacity 40,800,000
Actual production 34,966,037
(c) KNIT FABRIC (Quantity in Kgs.)
Installed capacity 2,600,000
Actual production 1,280,095
(d) DENIM FABRIC (Capacity in Lm.)
Installed capacity 4,940,000
Actual production 3,786,254

38
Payments/Perquisites to Directors/Officers
(a) The aggregate amounts paid/provided during the year in respect of directors and officers of the Company as defined in the Securities
and Exchange Rules 1987 are disclosed below:
2009 2008
Directors Officers Directors Officers
Board Meeting Fees 3,000 - 3,000 -
Basic Salary - 81,700,382 - 61,794,026
Provident fund Contribution - 7,339,141 - 5,682,696
House Rent Allowance - 27,233,461 - 15,769,306
Total Tk. 3,000 116,272,984 3,000 83,246,028
(b) No compensation was allowed by the company to the Managing Director of the company.
(c) No amount of money was spent by the company for compensating any member of the Board for special services rendered except as
stated above.
39 Events After The Reporting Period
(a) Subsequent to the balance sheet date, the directors recommended 15% stock dividend (bonus share) subject to shareholders’
approval at the forthcoming Annual General Meeting.
(b) Findings and observations of SEC and replies and clarifications by the company on the previous year’s financial statements are
included as Annexture A.
Except the facts stated above, no circumstances have arisen since the balance sheet date which would require adjustments to, disclosure
in, the financial statements or notes thereto.

A S F Rahman Salman F Rahman M A Qasem


Chairman and Managing Director Vice Chairman Director

April 29, 2010


Dhaka.
BEXTEX Limited Annual Report 2009 37

Annexture A
FINDINGS/OBSERVATIONS OF SEC and CLARIFICATIONS FURNISHED BY THE COMPANY
ON AUDITED FINANCIAL STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2008
In relation to the Financial Statement of the Company for the year ended 31 December, 2008 SEC required to the Company (vide SEC letter No.SEC/
CFD/12:17/99/455 dated May 21, 2009 ) to :

(i) explain/clarify the following observations along with the break-up of “Reserve”; and
(ii) include appropriate disclosures regarding the following points (a) & (b) of the letter under reference in the annual report as well as to present the
same before the shareholders in this Annual General Meeting; points of those are as follows:
(a) There is no explanatory note as regard “Reserve & Surplus” shown in the Balance Sheet for the year ended on December 31, 2008, though the
amount is material to the financial statements. Moreover, no break-up has also been given as regard “Reserves” of Tk.779,879,705 shown in the
“Statement of Changes in Equity”. In this regard, it may be mentioned that as per the requirement under Para 8(ii) of Part I of the Schedule under rule
12(2) of the Securities and Exchange Rules 1987, the break-up of reserves has to be given.
(b) “Revaluation Surplus” aggregating Tk.4,381,259,484 has been shown under Note No.20 Property, Plant and Equipment however, an amount of
Tk.2,031,497,144 has been shown as “Revaluation Surplus-Net” in the Statement of Changes in Equity for the year ended December 31, 2008. It ap-
pears that there is no explanatory note regarding the difference between the said two figures (Tk.4,381,259,484 & Tk.2,031,497,144) in the audited
financial statements.
As desired by SEC to present the same before the shareholders in the relevant AGM, the Vice-Chairman informed the shareholders in 25th AGM of the
Company held on 18th June 2009 that, before starting the AGM, a printed copy of the disclosures of the above points have been circulated to all the share-
holders present in the meeting. The Vice- Chairman clarified the same before the shareholders as follows:

Quote
The Shareholders,
We furnish hereunder the disclosures as instructed by the SEC vide their letter No.SEC/12:17/99/455 dated 21.5.2009:

(a) The break-up of “Reserves & Surplus” as at 31st December 2008 is as follows

Item Taka
Reserves 779,879,705
Revaluation Surplus 2,031,497,144
Retained Earnings (1,341,711,264)
1,469,665,585

The aforesaid items, although not shown separately in its Balance Sheet as at 31 December 2008, have been separately stated in the statement of Changes
in Equity for the year ended on that date.

(b) The Break-up of “Reserves” at Tk.779,879,705 as at 31 December 2008 is as below:

Item Taka
Share Premium 450,000,000
Excess of shareholders’ equity over issued share capital to the shareholders of amalgamated
units erstwhile Beximco Textiles Limited, Beximco Knitting Limited and Beximco Denims Limited 329,879,705
779,879,705

(c) In the Statement of Changes in Equity for the year ended 31 December 2008, the Revaluation Surplus at Tk.4,381,259,484 from Plant, Machin-
ery and Equipment is shown net of Revaluation Deficit on Current Assets at Tk.2,349,762,340 so as to reflect overall Revaluation Surplus-Net at
Tk.2,031,497,144 based on the concept of prudence. Revaluation Surplus/Deficit on Current Assets/Liabilities is not charged/credited to Profit &
Loss Account of a year, as it does not relate to or arise in that year. Unquote.
38 BEXTEX Limited Annual Report 2009

The shareholders present in the meeting appreciated the Management for disclosing and clarifying the above points as instructed by the SEC.

There after SEC (vide their letter No.SEC/CFD/12:17/99/521 July 9, 2009) informed the Company that – “It appears to us that you have not given specific
clarification as regard our observations mentioned in our letter No.SEC/CFD/12:17/99/501 dated June 15, 2009. Hence, you are requested again to furnish
your specific clarification regarding our observations mentioned in our said letter within July 28,2009.

Further, in your letter dated June 21, 2009 you mentioned that you have placed a disclosure to your shareholders in the AGM held on that day ( it is evident
from your disclosed price sensitive information dated June 18, 2009 that the 25th AGM held on June 18, 2009). In this regard, you are also requested to send
a copy of the said disclosure presented in the AGM within the date mentioned above.”

The Company replied to SEC as follows:

Quote

15 July 2009
Securities and Exchange Commission (SEC)
Jiban Bima Tower
10 Dilkusha C/A
Dhaka-1000

Dear Sir

Audited financial statements for the year ended 31 December 2008

We thank you for your letter SEC/CFD/12:17/99/521 dated 9 July 2009.

With regard to the issue raised in your letter SEC/CFD/12:17/99/501 dated 15 June 2009, we would like to inform you that-

(a) We made the following disclosure (copy of our Disclosures in the AGM is attached as Annexure), as desired by you, in our AGM held on 18 June 2009:

“In the Statement of Changes in Equity for the year ended 31 December 2008, the Revaluation Surplus at Tk.4381,259,484 from Plant, Machinery and
Equipment is shown net of Current Assets adjustments relating to Notes 23,24 & 25 at Tk 2,349,762,340 so as to reflect overall Revaluation Surplus
at Tk.2,031,497,144, based on the concept of prudence. Revaluation Surplus on Current Assets/Liabilities is not charged/credited to Profit & Loss Ac-
count of a year, as it does not relate to or arise in that year.”

(b) After perusal of our disclosure and our explanation of our treatment of Revaluation Surplus; our shareholders in the aforesaid AGM have unanimously
approved our audited financial statements for the year ended 31 December, 2008.

(c) The current assets in the notes 23, 24 & 25 are net of adjustment thereagainst” as referred to in para (a) above; and thus, the net amounts are “con-
sidered good by us”. The inventories in note 23 is also net of “adjustments thereagainst”.

Considering our shareholders’ unanimous approval of our treatment of Revaluation Surplus in the aforesaid AGM; and our foregoing explanation, we would
request you to kindly accept our reply. Unquote.
BEXTEX Limited Annual Report 2009 39

However, further to our aforesaid letter dated 15 July 2009, the company further clarified, as desired by SEC, as follows:

Quote

15 March 2010
Securities and Exchange Commission (SEC)
Jiban Bima Tower
10 Dilkusha C/A
Dhaka-1000

Dear Sir

Audited financial statements for the year ended 31 December 2008

This is further to our letter dated 15 July 2009 on the above accounts.

We further clarify, as desired by you, as follows:-

(a) The break-down of Deficit on Current Assets at Tk 2,349,762,340 as at 31 December 2008 is as below:-
Inventories- Tk 893,297,562
Trade Debtors- Tk 1,255,304,208
Advances, Deposits & Prepayments- Tk 238,291,281
Total- Tk 2,386,893,050
Less : Gain from AFIC Loan Repayment Tk 37,130,710
Net Total Tk 2,349,762,340
(b) Deficit on Current Assets as at 31 December 2008 is not charged to Profit & Loss Account for the year ended 31 December 2008, as it does not relate
to that year. The deficit relates to period(s) prior to merger of the four companies into Bextex Limited, i.e., prior to 31 December 2006. Accordingly,
such deficit can not be charged to Profit & Loss Account for the year ended 31 December 2008 or to Retained Earnings at that date as such Retained
Earnings as at 31 December 2006 was transferred to Reserve (comprising of all reserves including revaluation reserve and retained earnings) on 1
January 2007.
(c) No International/Bangladesh Accounting Standard covers such treatment of pre-merger Deficit on Current Assets; and accordingly, we treated in a
way that gave “most fair picture”.
(d) In order to give full picture to our shareholders, the following disclosure was made in our AGM held on 18 June 2009:
“In the Statement of Changes in Equity for the year ended 31 December 2008, the Revaluation Surplus at Tk 4381,259,484 from Plant, Machinery
and Equipment is shown net of Revaluation Deficit on Current Assets at Tk 2,349,762,340 so as to reflect overall Revaluation Surplus-Net at Tk
2,031,497,144, based on the concept of prudence. Revaluation Surplus/Deficit on Current Assets/ Liabilities is not charged/ credited to Profit & Loss
Account of a year, as it does not relate to or arise in that year.”
(e) After perusal of our aforesaid disclosure and our explanation of our treatment of Revaluation Surplus/Deficit; our shareholders in the aforesaid AGM
have unanimously approved our audited financial statements for the year ended 31 December 2008.

Considering our shareholders’ unanimous approval of our treatment of Revaluation Surplus/ Deficit in the aforesaid AGM; and our foregoing explanation,
we once again request you to kindly accept our reply; and close the matter once and for all. Unquote.

The foregoing explanations/ clarifications point out the company’s treatments of various reserves and surplus and how such treatments comply with the
IAS. This is now re-submitted in the 26th AGM in compliance with SEC’s directive No. SEC/CFD/12: 17/99/637 dated April 18, 2010 for consideration/deci-
sion of the shareholders.
40 BEXTEX Limited Annual Report 2009
COMPANY PROFILE
Corporate Headquarters
17 Dhanmondi R/A, Road No. 2, Dhaka-1205, Bangladesh
Phone: 8611891-5, 8618220-7, 9677701-5, 7701165
E-mail : beximchq@bol-online.com
Web : www.beximco.com
Operational Headquarters
Beximco Industrial Park, Sarabo
Kashimpur, Gazipur, Bangladesh
Phone : 8611891-5, 8618220-7, 9677701-5, 7701165
Business Line
Manufacturing and Marketing of
Yarn, Woven, Knit and Denim Fabrics
Date of Incorporation
13 May 1984
Commercial Production
1990
Listing Status
SHAREHOLDERS’ Public Listed Company

INFORMATION Stock Exchange Listing


Dhaka and Chittagong
Mailing Address, Registration Office & Corporate Share Office
17 Dhanmondi R/A, Road No. 1, Dhaka -1205, Bangladesh Authorized Capital
5,000 Million taka
Independent Auditors
M. J. Abedin & Co., Chartered Accountants Paid-Up Capital
National Plaza (6th Floor) 4,056.065 Million Taka
109, Bir Uttam C.R. Datta Road, Dhaka-1205
Number of Shareholders
Telephone : 88-02-8629771, Fax : 88-02-8617681
e-mail : mjabedin@bangla.net
50,826
Legal Advisers Number of Employees
M/S. Huq & Co. 7,189
47/1 Purana Paltan, Dhaka-1000 Number of Spindles Installed
Bankers 119,520
Sonali Bank • Janata Bank • Rupali Bank Ltd. • The City Bank Ltd.
Number of Woven Loom Installed
Citibank, N.A. • Standard Chartered Bank • IFIC Bank Ltd.
State Bank of India • Bank Asia Ltd. • South East Bank Ltd.
293
Registered Office Number of Circular Knitt Machine Installed
17 Dhanmondi R/A, Road No. 2, Dhaka-1205, Bangladesh 30
Factory Number of Denim Looms Installed
Tatki, Rupganj, Narayanganj (Yarn Plant-1) 56
Sarabo, Kashimpur, Gazipur (Other Plants)
Day, Date, Time & Venue of AGM
Thursday, The 17th June 2010, At 11:30 am,
BEXIMCO Industrial Park, Sarabo, Kasimpur, Gazipur
www.beximco.com