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AboutCompanyRAKCeramics(Bangladesh)Limited,aUAE-Bangladeshjointventurecompany,wasincorporatedinBangladeshon26November,1998asacompanylimitedbysharesundertheCompaniesAct1994andstarteditscommercialproductionon12November,2000.TheCompanyengagedinmanufacturingandmarketingofceramicstiles,bathroomsetsandalltypesofsanitaryware.WithintheshortspanofeightyearsRAKhasfirmlyestablisheditselfasoneoftheleadingmanufacturerofhighqualityceramicwall,floortiles,gresporcellanatoandsanitarywaresproductsinBangladesh.RAKCeramics(Bangladesh)LimitedisanISO9001:2008certifiedorganization.

RAKCeramicsPSC,UAEincorporatedin1989,istheparentcompanyofRAKCeramics(Bangladesh)Limited.InOctober2003RAKCeramicsPSC,UAEwaslistedonAbuDhabiStockmarket(ADX).RAKCeramicsGroupaswholehasamanufacturingfacilitiesinUAE,Bangladesh,China,Sudan,Iran&India.Thecompanyoptedforalong-termpolicy;toproducequalityproducts,tobearespectablepartnerandtokeepitscustomerssatisfied.RAKCeramicsPSC,UAEdriveforexcellenceandaninsatiableappetiteforqualityandcustomersatisfactionwereaccreditedwiththeISO9001certificationbyCICS(CeramicIndustryCertificationScheme),UKin1997&ISO14001in2008.Atpresent,thecompanysproductsarebeingexportedtomorethan135countriesacrossfivecontinents&haswellestablisheddealersdistributionnetworkinmorethan100countries.

Throughitsstrongbusinessfranchiseandfinancialperformance,theCompanyisaregularrecipientofbusinessaccolades.

RAKCeramicsPSCwasadjudgedasCompanyoftheYearbyArabianBusinessAchievementAwardfor2004andin2005;RAKCeramicswasawardedtheMohammedBinRashidAlMaktoumBusinessAwardfortheIndustrysector.In2006,RAKCeramicswasrated5A2,highestintheregionofMiddleEast,byDun&Bradstreet.In2007,UKbasedBrand-FinancePLCratedtheRAKCeramicsbrandasoneofthetopfourvaluablebrandsintheUAEwitharatingofAA-.In2008,aWashingtonDC,USAbasedGeorgetownUniversityhasselectedRAKCeram

icsassubjectofpedagogiccasetoformpartoftheircoursematerialforglobalmanufacturingstudiesinMBAprogrammecurriculum.InJune2009RAKCeramicshasbeenawardedtheSUPERBRANDfor2009bythecouncilofSUPERBRANDSwhichistheworldslargestindependentBrandarbiter,Certaintechnologydrivers&noteworthyachievementasfollows:

RAKCeramicshasbeenofficiallyrecognizedastheworldslargestceramictilemanufacturerbytheCeramicWorldReview,thebestknownandmostwidelycirculatedinternationalmagazinedevotedtoceramictileandsanitarywareproductiontechnologies.UAEoperationissinglelargestceramicsmanufacturingfacilityintheworld.

RAKCeramicswasoneofthepioneersininstallinguniqueequipment.ItwasthefirstcompanytoinstallthelargestpressintheindustrythePH7200enablingittoproduceceramicslabsaslargeas125cmby185cmRAKCeramicsalsoofferedseveraluniqueandproprietarytechnicalproductslikeluminoustiles(tilesthatemittedlightinthedark,whichtooktwoyearsandseveraltrialstodevelop),antimicrobialtiles(tilesthatinhibitedgrowthofbacteria),andcustom-madedesignsbywaterjet.TherangeofRAKCeramicsproductsisunmatchedwithover6000tilesmodels&over600sanitarymodels.Smallestmosaicsofsize2cmx2cmandtilesof10cmx10cmtothelargestslabintheindustry125cmx185cm

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NatureofbusinessThecorebusinessofRAKCeramics(Bangladesh)Limitedistomanufactureandselloftilesandsanitarywares.Thecompanyhasover1000modelsactiveintheceramicandporcelaintilebusinessandregularlyaddsseveralnewdesignstotheproductportfolio.Thecompanymanufacturestilesinaverywiderangeoftilesinthesizesfrom13cmX13cmupto60cmX60cminBangladeshlocation.Thecompanyhasover40modelsanexclusiverangeofsanitarywaretoofferwithaverywidechoice.Insanitarywarevariousmodelsareproducedinwashbasins(mountedaswellaspedestal),waterclosets,bathroomsets,bathtubs,showertrays,bathroomcabinets,accessoriesanddecoratedsets.PrincipalproductsandservicesRAKCeramics(Bangladesh)LimitedhasbeenmanufacturingandsupplyingawiderangeoftilesandsanitarywaresintheceramicsectorofBangladeshsince2000.Excellentdesignsandpatterncanbecreatedusingspeciallyselectedwallandfloortiles,borders,corners,listellosandcapping.ManyofRAKCeramicsmodelscomeinmodulardesigns,makingiteasierforthecustomer.TheuniqueambiencepatternscreatedusingceramictilesandalsoGresporcellanatotilesappealsmostdiscerningcustomers.Thecompanyhastwoproductlines,whichareTilesandSanitaryWare.ThecompanyrecentlysetuplargescaleEffluentTreatmentPlant(ETP)toreduceenvironmentalhazard,whichstartedoperationendofMarch,2009.

A.Tiles

IntheCeramicRange,thecompanyproducesceramicwalltiles,ceramicfloortiles,matchingborder&dcortiles,listellosandpencils&cappingandfewotherrelateditems.InGresProcellanato(porcelain/fullyvitrifiedtiles),thecompanyproducesthousandsofglazedandunglazedporcelain,coveringfinishessuchaspolished,semipolished,unpolished,rustic,stone,travertineetc.InBangladeshwiththreefoldexpansionDriveCompanyhasreachcapacitytoproduceover8millionsquaremetersoftilesperannum&hasover1000differenttilesmodelsrecipe.Thesalientfeaturesoftheplantsare:

-Gangofmoderntechnologicalmachineries:versatile5press,longrange5kilns&multipurpose12ballmills.

-Latestequipment&technologicalapplication:SomeuniquepatternsandfinishesareacquiredthroughnewtechnologiessuchasRotoPrinting,Doublecharge,Granitech,MDR,Technoslate,TwinPressandDryGlazeetc.SomeuniqueantiquestylefinishesandmanyspecializedfinishesintileshavebeenpossibleduetosuchadvancedGresProcellantotechnology.

-ModernEuropeanmachinery:roboticcontrolledTGVmachines.Computercontrolledguidedvehiclestransferredsemifinishedgoodsfromstationtostation,robotspickedandplacedsemifinishedtilesinmanyproductionstepsaswellasinsortingandpackingthefinishedtiles,skilledtechniciansinsophisticatedcontrolroomsmonitoredrawmaterialsinblendingmills,wetanddrygrindingvessels,presses,kilns,dryingandcoolingcycles,andmanyotheroperations.

-Waterjetcuttingtechnologymachines:Facilitateuniquewaterjetdesigns,anddiamondscuttingmachinetoolshelpmakebeautifulvanitytopsfromgresprocellanatoslabs.

-HighQualityinputs:Importedrawmaterialslikesodafeldspar,potashfeldspar,claysfromIndia,Indonesia,Malaysia,Thailand.Fritz&glazesfromSpain&otherEuropeancountries.

-CeramistR&Dactivity:Activeteamofceramisttochallengecustomerdemand&devicecosteffectiveinputrecipesolutions.

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B.SanitaryWare

Insanitaryware,variousmodelsofwashbasin(mountedaswellaspedestal),waterclosets(WC)andwatertank(WT)accessoriesanddecoratedsetsareproduced.Stateoftheartplantsproducesover900,000piecesperannum&over40differentmodelsofsanitaryware.Thesalientfeaturesoftheplantsare:

-LatestItalianTechnology:Forproductionincludingcomputerizedkilns.-6MediumPressureCastingPlants:Forproductionofwashbasin,pedestals,cisterns,lidsandaccessories.-BatteryCastingMoulds:Toproducewaterclosets.-HighestQualityRawMaterials:BallclayandkaolinfromU.K.,glazesfromSpainandstainsfromGermany.-InHouseQualityControlandTesting:Alaboratoryofthehigheststandard.FinancialPerformanceParticulars Fortheyearended31December2010(AmountinBDT) Fortheyearended31December2009(AmountinBDT) Fortheyearended31December2008(AmountinBDT) Fortheyearended31December2007(AmountinBDT)Fortheyearended31December2006(AmountinBDT)Turnover 4,009,021,454 3,839,025,765 3,247,985,878 2,335,391,8441,955,084,231Costofsales 2,505,064,934 2,631,407,137 2,315,174,472 1,530,281,434

1,373,986,480Grossprofit 1,503,956,520 1,207,618,628 932,811,406 805,110,410581,097,751Administrationexpenses 241,668,871 82,800,380 73,707,61759,105,227 33,433,886Marketing&Sellingexp 509,086,847 425,856,574 341,821,145 233,010,201188,129,683Netprofitbeforefinancialexpense 753,200,802 698,961,674 517,282,644 512,994,982 359,534,182Financialexpense 97,574,871 185,707,263 141,170,017 85,258,635 81,449,145Otherincome 148,471,774 7,160,230 1,907,872 6,782,770

541,758Netprofitbeforetaxation 804,097,705 520,414,641 378,020,499434,519,117 278,626,795Taxexpenses 294,245,394 207,143,340 91,619,346 131,944,473100,656,277Netprofitaftertaxation 509,852,311 313,271,301 286,401,153302,574,644 177,970,518MinorityInterest (96,668,798) (11,305,618) -- ----NetprofitafterMinorityInterest 606,521,109 324,576,919 286,401,153 302,574,644 177,970,518No.ofsharesoutstanding 215,731,226 185,563,500 185,563,500185,563,500 185,563,500

Earningspershare(EPS) 2.81 1.75 1.54 1.63 0.96

ShortBio-DataoftheDirectorsDr.KhaterMassaad,Chairman(NomineeofRAKCeramicsPSC,UAE)Dr.KhaterMassaadhasplayedaninstrumentalrolealongwithH.H.SheikhSaudBinSaqrAlQassimi,TheRulerofRasAlKhaimahinfoundingRAKCeramicsin1991.Dr.MassaadholdsaPhDinGeophysicsfromtheUniversityofLausanne,SwitzerlandandanMScinMathematics,HeisalsoatthehelmofRasAlKhaimahsrecent

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ambitiousinitiativeslikepropertydeveloperRAKEEN,infrastructuredeveloperRAKIAandAlHamraRealEstateDevelopmentLLC,amongothers.

Dr.MassaadwasassignedthepositionofProjectManagerforvariousundergroundwaterprojectsintheUAEandintheSultanateofOman.Thereafter,heenvisionedamajorplanforaceramicfactoryintheEmirateofRasAlKhaimahandestablishedandmanagedRAKCeramics.

Underhisstewardship,RAKCeramicsCo.PSCwasadjudgedtheCompanyoftheYearbyArabianBusinessAchievementAwardfor2004andin2005,RAKCeramicswasawardedtheMohammedBinRashidAlMaktoumBusinessAwardfortheindustrysector.In2007,hereceivedtheprestigious fDiPersonalityoftheYear2007-MiddleEast awardpresentedbyfDiMagazine,partoftheFinancialTimesgroupofLondon.ThisawardwasinrecognitionofDr.MassaadsdiligentandsuccessfulefforttoattractforeigninvestmenttoRasAlKhaimah,contributinggreatlytotheeconomicgrowthanddevelopmentoftheEmirateandaddingtoitsattractionasaninvestmentlocation.HeisalsoCEOoftheRAKInvestmentAuthority(RAKIA).Mr.S.A.K.Ekramuzzaman,ManagingDirectorMr.S.A.K.EkramuzzamanisoneofthelocalinvestorsinBangladeshwithequitypartnershipinRasAlKhaimahcompanies(RAK),oneofthesevenEmiratesoftheUAE.Besidesmanagingdiversifiedbusinessinterestsathome,hepossessesanumberofjointventureprojectsthatarecurrentlyoperatinginBangladeshwithafewwaitingcommissioning.Hisbusinessinterestsinvolveproductsrangingfrom

ceramicstoshoppingmallsandmanymore.

Mr.EkramuzzamanhasequityinterestinRAKCeramics(Bangladesh)Ltd.,RAKPower,RAKSecuritiesandServices,RAKPharmaceuticalsSwissBangladeshAgroFisheries,MASRAMPlantation,KEAPrintingandPackaging,GreenPlanetCommunicationsandBetterBusinessAssociatesLimited,amongothers.