Assignment of FIN 501 (2)

ASHRAF TEXTILE MILLS LIMITEDBALANCE SHEET AS AT JUNE 30, 2009

2009 2008 Taka Taka

CURRENT ASSETS 1,172,765.00 574,460.00 Cash and bank balances 603,110.00 197,088.00 Deposit accounts 560,177.00 137,433.00 Current accounts 25,840.00 21,326.00 Collection accounts 16,831.00 38,275.00 Cash in hand 262.00 54.00 Advances, Deposits, prepayments and other receivables 46,041.00 73,583.00 To suppliers 18,148.00 34,044.00 To employees 783.00 449.00 Due from associated undertaking 1,125.00 1,127.00 Deposits 1,486.00 1,313.00 Prepayments 4,314.00 10,606.00 Excise duty 4,057.00 9,911.00 Advance tax –net 7,891.00 - Sales tax refundable -net - 3,774.00 Derivative foreign currency options used as hedging instrum - - Interest accrued 1,002.00 2,175.00 Prepaid arrangement fee for loans - - Margin on letters of credit - - Other receivables- Considered goods 8,235.00 645.00 Others - 9,539.00 TRADE DEBTS 107,231.00 44,789.00 Unsecured 25,021.00 23,833.00 Considered goods 23,454.00 22,266.00 Considered doubtful 1,567.00 1,567.00 Secure-considered goods 83,777.00 22,523.00 Less: Provision for doubtful debts (1,567.00) (1,567.00)STOCK IN TRADE 55,931.00 61,600.00 Raw and packing material 18,469.00 15,224.00 Work in process 11,624.00 27,761.00 Finished goods 25,838.00 18,615.00 STORES, SPARES AND LOOSE TOOLS 360,452.00 197,400.00 Stores 107,633.00 71,837.00 Spares 244,514.00 118,324.00 Loose tools 8,305.00 7,239.00 DEFERRED TAX ASSETS - NET 337,140.00 570,039.00 LONG TERM DEPOSITS 46,611.00 36,600.00 LONG TERM ADVANCES - Considered 9,000.00 - FIXED ASSETS - Tangible: 4,658,272.00 4,729,254.00 Property, Plant and equipment 4,658,272.00 4,729,254.00 Total Assets 6,223,788.00 5,910,353.00

CURRENT LIABILITIES 1,207,946.00 372,116.00 Current portion of long term financing: 552,995.00 86,508.00 Short term borrowings - secured: 308,876.00 - Markup accrued: 69,357.00 13,132.00 Trade and other payables: 275,718.00 272,476.00 Creditors 45,969.00 45,651.00 Accrued liabilities 67,119.00 63,425.00 Retention money 10,533.00 10,819.00 Security deposits 28,982.00 25,462.00 Advances from customers 42,444.00 23,121.00 Workers' (Profit) Participation Fund 39,949.00 - Workers' Welfare fund - - Sales tax payable- net 31,300.00 22,304.00 Excise duty payable 3,537.00 58.00 Other liabilities 5,885.00 81,636.00 Compensated absences - - Unclaimed dividend - - NON - CURRENT LIABILITIES 2,567,218.00 3,599,103.00 Retention money payables: - - Deferred tax liability - net: - - Deferred liability 45,213.00 40,264.00 Long term financing: 2,522,005.00 3,558,839.00 Loans from banking companies - Secured:H.S.B.C Bank Limited 916,667.00 - PRIM Bank Limited 916,667.00 - United Bank Limited 458,333.00 - Bank Al Falah Limited 458,333.00 - CITY Bank Limited - - NCC Commercial Bank Limited 275,000.00 - Loan from related party: 50,000.00 - Total Liabilities 3,774,164.00 3,971,219.00 Less: amount payable within 12 months shown under current l (552,995.00) - SHARE CAPITAL AND RESERVES 2,449,624.00 1,939,134.00 Reserves: - - Accumulated loss (1,744,798.00) (2,255,288.00)Share capital: 4,194,422.00 4,194,422.00

Total Liabilities + Owner's Equity 6,223,488.00 5,910,353.00

SAIHAM TEXTILE MILLS LIMITEDDHAKA

BALANCE SHEET AS AT JUNE 30, 2009

2007 2006 Taka Taka

CURRENT ASSETS 5,294,083.00 1,953,537.00 Cash and bank balances 3,783,909.00 423,133.00 Deposit accounts 3,756,611.00 402,907.00 Current accounts 27,039.00 20,048.00 Collection accounts - - Cash in hand 259.00 178.00 Advances, Deposits, prepayments and other receivables: 345,567.00 858,758.00 To suppliers 15,521.00 815,588.00 To employees 2,473.00 621.00 Due from associated undertaking - - Deposits 5,737.00 1,795.00 Prepayments 3,966.00 3,125.00 Excise duty - - Advance tax –net 23,302.00 13,104.00 Sales tax refundable -net 82,719.00 - Derivative foreign currency options used as hedging instrument 84,364.00 - Interest accrued 14,828.00 5,077.00 Prepaid arrangement fee for loans 74,670.00 11,000.00 Margin on letters of credit 29,369.00 - Other receivables- Considered goods 7,179.00 2,084.00 Others 1,439.00 6,364.00 TRADE DEBTS 26,927.00 19,558.00 Unsecured 4,848.00 16,117.00 Considered goods - 7,769.00 Considered doubtful 4,848.00 8,348.00 Secure-considered goods 26,927.00 11,789.00 Less: Provision for doubtful debts (4,848.00) (8,348.00)STOCK IN TRADE 230,089.00 183,309.00 Raw and packing material 31,271.00 23,931.00 Work in process 152,529.00 115,221.00 Finished goods 46,289.00 44,157.00 STORES, SPARES AND LOOSE TOOLS 907,591.00 468,769.00 Stores 415,358.00 61,997.00 Spares 478,579.00 394,046.00 Loose tools 13,654.00 12,726.00 DEFERRED TAX ASSETS - NET - - LONG TERM DEPOSITS 46,611.00 46,611.00 LONG TERM ADVANCES - Considered 7,200.00 8,100.00 FIXED ASSETS - Tangible: 7,106,599.00 4,392,450.00 Property, Plant and equipment 7,106,599.00 4,392,450.00 Total Assets 12,454,493.00 6,400,688.00

CURRENT LIABILITIES 2,454,761.00 1,442,287.00 Current portion of long term financing: 550,000.00 550,000.00 Short term borrowings - secured: 1,378,365.00 375,510.00 Markup accrued: 33,186.00 48,330.00 Trade and other payables: 493,210.00 468,447.00 Creditors 65,997.00 81,766.00 Accrued liabilities 174,692.00 118,828.00 Retention money 15,517.00 11,986.00 Security deposits 36,916.00 39,051.00 Advances from customers 41,344.00 67,770.00 Workers' (Profit) Participation Fund 24,413.00 41,483.00 Workers' Welfare fund 25,362.00 16,085.00 Sales tax payable- net - 32,599.00 Excise duty payable 57,629.00 8,582.00 Other liabilities 45,323.00 40,708.00 Compensated absences 3,686.00 3,626.00 Unclaimed dividend 2,331.00 5,963.00 NON - CURRENT LIABILITIES 715,751.00 1,223,195.00 Retention money payables: 18,129.00 - Deferred tax liability - net: 363,154.00 339,918.00 Deferred liability 9,468.00 8,277.00 Long term financing: 325,000.00 875,000.00 Loans from banking companies - Secured:SONALI Bank Limited 265,152.00 431,818.00 DUTCH BANGLA Bank Limited 265,152.00 431,818.00 H.S.B Limited 132,576.00 215,909.00 JONATA Bank 132,576.00 215,909.00 EXIM Bank Limited 79,544.00 129,546.00 Islamic Bank - - Loan from related party:Fauji Foundation- Unsecured - - Total Liabilities 3,170,512.00 2,665,482.00 Less: amount payable within 12 months shown under current liabil (550,000.00) (550,000.00)SHARE CAPITAL AND RESERVES 9,283,981.00 3,735,206.00 Reserves: 1,864,094.00 (459,216.00)Accumulated loss - - Share capital: 7,419,887.00 4,194,422.00

Total Liabilities + Owner's Equity 12,454,493.00 6,400,688.00

ASHRAF TEXTILE MILLS LIMITEDPROFIT AND LOSS STATEMENT

FORE THE YEAR ENDED JUNE 30, 2009

2009 2008 Taka Taka

Sales 3,921,362.00 3,247,262.00 Less: Government Levies (1,076,219.00) (951,031.00)Net Sales 2,845,143.00 2,296,231.00 Less: Cost of sales 1,763,597.00 1,555,407.00 Raw material Consumed 136,819.00 115,164.00 Packing material consumed 147,994.00 155,487.00 Stores and spares consumed 6,573.00 5,285.00 Spares written off - - Salaries, wages and benefits 87,091.00 91,289.00 Rent, rates and taxes 1,378.00 952.00 Insurance 18,078.00 14,920.00 Fuel consumed 699,818.00 564,591.00 Power consumed 332,383.00 310,041.00 Depreciation 251,981.00 243,056.00 Others 72,538.00 63,185.00

1,754,953.00 1,563,970.00 Add: Opening work-in process 27,761.00 5,817.00 Less: Closing work-in process (11,624.00) (27,761.00)Cost of goods 1,770,790.00 1,542,026.00 Add: Opening finished goods 18,615.00 31,996.00 Less: Closing finished goods - (25,838.00) (18,615.00)

1,763,567.00 1,555,407.00 Less: Own consumption - -

1,763,567.00 1,555,407.00 Gross profit 1,081,576.00 740,824.00 Other income 11,216.00 42,744.00 Distribution cost: 21,333.00 20,416.00 Salaries, wages and benefits 11,085.00 12,011.00 Export freight and other - - Traveling and entertainment 1,857.00 1,034.00 Vehicle running and - - Rent, rates and taxes 1,172.00 1,144.00 Repairs and maintenance 872.00 411.00 Printing and stationery 640.00 509.00 Depreciation 734.00 781.00 Others 4,973.00 4,526.00

Administrative expenses: 42,292.00 39,535.00 Salaries, wages and benefits 21,835.00 21,817.00 Traveling and entertainment 3,319.00 2,053.00 Vehicle running and maintenance expenses - - Insurance 356.00 312.00 Rent, rates and taxes 1,250.00 1,064.00 Repairs and maintenance 1,110.00 711.00 Printing and stationery 868.00 856.00 Depreciation 3,568.00 1,969.00 Others 9,986.00 10,753.00 Other Operating expenses: 40,493.00 533.00 Audits' remuneration 544.00 533.00 Workers' (Profit) 39,949.00 - Workers' Welfare Fund - - Finance Cost: 229,633.00 204,222.00 Fee and charges on loans 10,564.00 11,615.00 Interest/mark-up on long-term finance 175,784.00 57,324.00 Interest/mark-up on long 3,185.00 873.00 Interest on short term 4,352.00 - borrowings and other - - Interest on Workers' Profit - - Guarantee commission 32,201.00 111,947.00 Bank charges and 3,547.00 4,557.00 Foreign exchange risk - 17,906.00 Amortization of deferred - 762,152.00 Net profit before taxation 759,041.00 (243,290.00)Less: Taxation (248,548.00) 557,639.00 Net profit after taxation 510,493.00 314,149.00

SAIHAM TEXTILE MILLS LIMITEDDHAKA

PROFIT AND LOSS STATEMENTFORE THE YEAR ENDED JUNE 30, 2009

2009-2008 2008-2007 Taka Taka

Sales 4,749,217.00 4,780,036.00 Less: Government Levies (1,203,315.00) (1,316,753.00)Net Sales 3,545,902.00 3,463,283.00 Less: Cost of sales 2,887,790.00 2,371,788.00 Raw material Consumed 227,413.00 235,379.00 Packing material consumed 281,916.00 221,116.00 Stores and spares consumed 10,914.00 11,171.00 Spares written off - 931.00 Salaries, wages and benefits 133,451.00 133,780.00 Rent, rates and taxes 5,284.00 2,213.00 Insurance 12,221.00 12,363.00 Fuel consumed 1,441,919.00 979,044.00 Power consumed 451,419.00 431,609.00 Depreciation 290,477.00 276,244.00 Others 85,730.00 110,238.00

2,940,744.00 2,414,088.00 Add: Opening work-in process 115,221.00 96,371.00 Less: Closing work-in process (152,529.00) (115,221.00)Cost of goods 2,903,436.00 2,392,538.00 Add: Opening finished goods 44,157.00 23,407.00 Less: Closing finished goods - (46,289.00) (44,157.00)

2,901,304.00 2,371,788.00 Less: Own consumption (13,514.00) -

2,887,790.00 2,371,788.00 Gross profit 658,112.00 1,091,495.00 Other income 107,574.00 73,835.00 Distribution cost: 53,382.00 40,645.00 Salaries, wages and benefits 18,791.00 20,651.00 Export freight and other 24,482.00 - Traveling and entertainment 1,127.00 705.00 Vehicle running and 1,641.00 2,745.00 Rent, rates and taxes 1,468.00 1,353.00 Repairs and maintenance 288.00 173.00 Printing and stationery 545.00 416.00 Depreciation 2,704.00 1,746.00 Others 2,337.00 12,856.00

Administrative expenses: 76,495.00 71,302.00 Salaries, wages and benefits 41,153.00 42,439.00 Traveling and entertainment 7,483.00 3,487.00 Vehicle running and maintenance expenses 2,145.00 2,385.00 Insurance 602.00 594.00 Rent, rates and taxes 6,465.00 5,934.00 Repairs and maintenance 590.00 960.00 Printing and stationery 1,318.00 1,941.00 Depreciation 9,475.00 5,464.00 Others 7,264.00 8,098.00 Other Operating expenses: 34,290.00 58,098.00 Audits' remuneration 600.00 530.00 Workers' (Profit) 24,413.00 41,483.00 Workers' Welfare Fund 9,277.00 16,085.00 Finance Cost: 146,954.00 207,105.00 Fee and charges on loans 500.00 500.00 Interest/mark-up on long-term finance 129,928.00 200,642.00 Interest/mark-up on long - - Interest on short term 11,609.00 779.00 borrowings and other - - Interest on Workers' Profit - 93.00 Guarantee commission 665.00 972.00 Bank charges and 4,252.00 4,119.00 Foreign exchange risk - - Amortization of deferred - - Net profit before taxation 454,564.00 788,180.00 Less: Taxation (40,966.00) (141,857.00)Net profit after taxation 413,598.00 646,323.00

Current ratio = Current Liabilities/Current Assets

Saiham Textile Ltd Ashraf Textile mills Ltd.Year 2009 2008 Year 2009 2008Current Ratio 2.16 1.35 Current Ratio 0.97 1.54 Current Assets 5,294,083.00 1,953,527.00 Current Assets 1,172,765.00 574,460.00 Current liabilities 2,454,761.00 1,442,287.00 Current liabilities 1,206,946.00 372,116.00

Quick ratio =(Current Asset -Inventory )/CurrentLia bilities

Saiham Textile Ltd Ashraf Textile mills Ltd.Year 2009 2008 Year 2009 2008

Quick Ratio: 2.06 1.23 Quick Ratio: 0.93 1.38 Current Assets 5,294,083.00 1,953,527.00 Current Assets 1,172,765.00 574,460.00 Stock in trade 230,089.00 183,309.00 Stock in trade 55,931.00 61,600.00 Current liabilities 2,454,761.00 1,442,287.00 Current liabilities 1,206,946.00 372,116.00

Debt/equity ratio =tota lliabilities/ shareholders equity


Debt-To-Equity: 1.34 1.71 Debt-To-Equity: 2.54 3.05 Total Liabilities 12,454,493.00 6,400,688.00 Total Liabilities 6,223,788.00 5,910,353.00 Share capital & Rese 9,283,981.00 3,735,206.00 Share capital & Rese 2,449,624.00 1,939,134.00

Account receivable turn over= net sales / average account receivables


Receivable Turn Ov 131.69 177.08 Receivable Turn Ov 26.53 51.27 Net Sales 3,545,902.00 3,463,283.00 Net Sales 2,845,143.00 2,296,231.00 Trade Debts 26,927.00 19,558.00 Trade Debts 107,231.00 44,789.00

RATIO ANALYSIS

Inventory turn over = Cost of good / average inventory


Inventory turn over 63.86 70.21 Inventory turn over 79.34 61.46 Cost of sales 2,887,790.00 2,371,788.00 Cost of sales 1,763,567.00 1,555,407.00 Stock in Trade 230,089.00 183,309.00 Stock in Trade 55,931.00 61,600.00

Total asset turn over =Netsales / Average total assets


Total asset turn ove 0.28 0.54 Total asset turn ove 0.46 0.39 Net Sales 3,545,902.00 3,463,283.00 Net Sales 2,845,143.00 2,296,231.00 Total Assets 12,454,493.00 6,400,688.00 Total Assets 622,378.00 5,910,353.00

Gross profit margin =Grossprofit / Netsales


Gross profit margin 18.56% 31.52% Total asset turn ove 38.01% 32.26%Gross profit 658,112.00 1,091,495.00 Net Sales 1,081,576.00 740,824.00 Net Sales 3,545,902.00 3,463,283.00 Total Assets 2,845,143.00 2,296,231.00

Net profit margin = Netincone / Netsales


Net profit margin 11.66% 18.66% Net profit margin 17.94% 13.68%Net profit after taxat 413,598.00 646,323.00 Net profit after taxat 510,493.00 314,149.00

Net Sales 3,545,902.00 3,463,283.00 Net Sales 2,845,143.00 2,296,231.00

Assignment of FIN 501 (2)

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