Super Knitting & Dyeing Mills Limited

Restated Balance Sheet

As at 31 July 2012
Assets

Amount as per
management
accounts (Taka)
410,614,877
233,481,602
177,133,276

Note

Fixed Assets at Cost

Less: Accumulated depreciation

Investment in sister concerns

Total non-current assets

Store & Stock
Advance, Deposit & Prepayments
Trade Debtors
Cash, Bank Balance
Total current assets
Total Assets
Share holders' fund:
Paid up Capital
Retained Earnings
Total Share holders' fund
Liabilities
Loan from Directors
Long Term bank Loan
Short Term bank loan
Inter Company current account
Due to Super Thread Limited
Total non-current liabilities

Liability for Goods Supply

Liability for Expenses
Liability for Other Finance
Total current liabilities

4
5
6
7

8
9
10

11
11
11

Total shareholders' fund & Liabilities

Rested Amount
( Taka )
380,769,974
216,511,355
164,258,619

Difference
Increase/
(Decrease)
(29,844,903)
(16,970,247)
(12,874,656)

37,460,538

37,460,538

214,593,813

201,719,157

(12,874,656)

114,426,315
42,709,620
212,020,643
10,375,100
379,531,678
594,125,491

109,446,351
41,617,975
198,794,939
10,375,100
360,234,365
561,953,522

(4,979,964)
(1,091,645)
(13,225,704)
(19,297,313)
(32,171,970)

500,000
(116,883,418)
(116,383,418)

500,000
(146,923,261)
(146,423,261)

(30,039,844)
(30,039,844)

64,296,679
119,628,825
311,852,241
30,732,128
108,952,754
635,462,627

64,296,679
119,628,825
311,852,241
30,732,128
108,952,754
635,462,627

17,767,962
47,710,811
9,567,509
75,046,282

19,559,650
46,468,206
6,886,301
72,914,156

1,791,688
(1,242,606)
(2,681,208)
(2,132,126)

594,125,491.44

561,953,521.74

(32,171,969.70)

Super Knitting & Dyeing Mills Limited

1 Statement of Re-adjusted Retained Earnings:

As on 31 July 2012
Particulars

Note

Retained earning as per book

Amount (Taka)
(116,883,418)

Retained Earning would Decrease for the following items:

Allowance for bad or unrecoverable advances
Allowances for "Debtors under litigation" - 50%
Allowance for Bad or doubtful Debts
Adjustment for disposal of Plant, Machinery & Equipments
Provision for Stock & Stores - obsolete and short quantity
Decrease in retained earnings

5.2
6.2
6.3
2
4

(1,091,645)
(7,432,759)
(10,247,679)
(12,874,656)
(4,979,965)
(36,626,704)

6.4
11.2

2,037,736
4,549,124

Retained Earning would Increase for the following items:

Inappropriate treatment of Exchange Gain in Debtors
Trading liability held more than 3 years added back as income
U/s 19(15)
Increase in retained earnings

Adjusted Retianed Earnings

6,586,860

(146,923,261)

Fixed Assets - at cost less depreciation

Particulars

Cost
as at
31.07.2012

Land & Land Development

Disposal since
inception

3,035,149

Buildings and other Civil Constructions

Plant, Machineries and Equipments

Taka 164,258,619
Amount (Taka)

81,664,098

Adjusted Cost
as on
31.07.2012

Depreciation
Charged up to
31.07.2012

Depreciation
on disposal

Accumulated Adjusted
Written down value as
Depreciation as on
at 31.07.2012
31.07.2012

3,035,149

3,035,149

81,664,098

30,280,953

30,280,953

51,383,145

159,638,035

84,850,004

244,488,039

176,608,282

5,254,341

5,254,341

2,690,625

2,690,625

2,563,716

Other Fixed Assets

46,328,347

46,328,347

23,901,741

23,901,741

22,426,606

Total

410,614,877

380,769,974

233,481,602

216,511,355

164,258,619

274,332,942

Vehicles

29,844,903

29,844,903

Total cost as per book

Less: Accumulated depreciation as per book
WDV as per book
Less: adjustment for cost of plant & machinery disposed

16,970,247

16,970,247

Remarks

410,614,877
233,481,602
177,133,276
29,844,903
147,288,373
16,970,247
164,258,619

Add: adjument for accumulated deprecition on plant and machinery disposed

Restated WDV

2.1 We have verfied the physical existance of fixed assets as per list provided by the management. We found all the assets exist as per list. We could
not verify the item wise cost of fixed assets for want of propoer supporting documents and accordingly figures provided by the by the
Management have been considered in the restated Balance Sheet.
2.1.1 Buildings and Civil Constructions
Particulars
Two storied Steel Building
Godown
Five storied RCC Building
Other Civil Constructions

Area (Sft)
43,758
8,178
114,400

Value (Taka)
37,153,631
4,194,093
35,586,107
4,730,267
81,664,098

2.1.2 Plant, Machineries and Equipments

Particulars
knitting Section
Dying Section
Finishing Section
Printing Section
Generators
Laboratory Section
Utility Section
Garments Section
Local Machiries
Others

Value (Taka)
76,318,576
22,469,366
49,569,967
18,981,481
28,187,267
2,950,622
12,072,785
27,987,090
2,766,890
3,183,995
244,488,039

Detail list of machineries shown in annexure - 1

Reportedly the following machineries have not been used in production for long time :
Particulars
Circular Knitting M/c
16"X24GX48F
Circular Knitting M/c
22"X24GX66F
Circular Knitting M/c
22"X24GX66F
Circular Knitting M/c
23"X24GX69F
Circular Knitting M/c
24"X24GX72F
Circular Knitting M/c
24"X24GX72F
Circular Knitting M/c
24"X24GX72F
Circular Knitting M/c
25"X24GX75F
Circular Knitting M/c
26"X24GX78F
Circular Knitting M/c
26"X24GX78F
Circular Knitting M/c
26"X24GX78F
Thermo Boiler

2.1.3 Vehicles
Particulars
Cover Van-no-51-1506
Cover Van-no-11-0659
Car (Saloon)-no-11-2270
Car (Saloon)-no-11-2336
Microbus No-51-1307
2.1.4 Other Fixed Assets
Particulars
Electrification
Gas line Installation
Deep Tube well
D M Plant
Furniture & Fixture:
Avery Scale
Fire Extinguisher
Air Coller
Trolly
Computer, Hardware &
Software
Telephone, Fax & Mobile
Lab Equipment
Office Equipment
ETP
LIFT

Qty
1 set

Value (Taka)
1,160,960

1 set

1,356,872

1 set

1,356,872

1 set

1,418,548

1 set

1,480,224

1 set

1,480,224

1 set

1,480,224

1 set

1,541,900

1 set

1,603,576

1 set

1,603,576

1 set

1,603,576

1 set

1,583,350
17,669,902

Qty
1 No
1 No
1 No
1 No
1 No

Value (Taka)
333,600
1,575,380
932,500
1,350,000
1,062,861
5,254,341
Value (Taka)
10,655,117
2,751,471
6,757,492
3,154,258
3,031,142
601,942
257,430
1,422,000
2,029,134
3,431,995
475,599
88,760
261,064
10,829,680
581,263
46,328,347

3 Investment in sister concerns

Taka

Esita Garments
Greenland Apparels Limited

37,460,538
33,113,253
4,347,285
37,460,538

Break down of Esita Garments is shown as below:

Epshita Garments Account (EGL)
Due to Asia Insurance on account EGL
Central Insurance
City General Insurance
Federal Insurance
Daf Packeging Industries
Great Bengal Enterprise C & F
Janata Insurance
Khawja Transport
Mahmudul Hoq ( Advocate)
Peoples Insurance
S C Lala Advocate

35,885,934
(278,581)
(813,081)
(21,900)
(27,875)
(102,831)
(85,300)
(177,452)
(84,804)
(33,350)
(1,125,982)
(21,525)
33,113,253

4 Stock and Stores

Taka

109,446,351
Amount (Taka)

Balance as per
book as on
31.07.2012
Raw Materials/Trading Goods
Store & Spares Stock
Work In Process Stock
Finished Goods Stock
Stock Of Other Materials
Stock Of Chemicals
Stock Of Packing Materials

25,024,555
208,405
47,398,440
12,733,626
1,670,049
27,324,928
66,314
114,426,316

Excess
/(Short)
quantity 4.1
(532,009)
9,028
(522,981)

Loss on slow
moving
items - 4.2

Obsolete
stock of
chemicals4.3

(1,414,092)

(3,042,892)

(1,414,092)

(3,042,892)

Restated
Balance as on
31.07.2012
24,492,545
208,405
47,398,440
12,733,626
1,670,049
22,876,972
66,314
109,446,351

4.1 During the course of our physical verification we found differences between book balance and actual balance.
Such differences are noted below.
Raw materials
Particulars
20 S/CARD
40 S/CARD
34 S/CVC
24 S/GM
34 SB/c
34 S/GM
24 S/CVC
30 S/COMB
30 S/CVC
26 S/CARD
28 S/CARD
34 S/CARD
30 S/CARD
26 S/COMB
26 S/CVC
30 S/GM
26 S/GM
Total

Unit
Kg
Kg
Kg
Kg
Kg
Kg
Kg
Kg
Kg
Kg
Kg
Kg
Kg
Kg
Kg
Kg
Kg

As per Book

As per
physical
Excess/(shor
verification
t)
2,402
406
1,090
4,735
135
1,350
1,127
2,650
2,025
16,430
735
11,850
1,877
1,350
2,612
7,595
6,625
64,993

2,448
425
1,057
4,702
103
1,310
1,076
2,601
1,960
16,353
619
11,736
1,761
1,228
2,443
7,275
6,040
63,136

46
19
(33)
(34)
(32)
(40)
(51)
(49)
(65)
(76)
(116)
(114)
(116)
(122)
(169)
(320)
(585)
(1,856)

Rate
259
338
278
296
330
319
281
293
274
255
270
274
270
289
259
300
296

Amount (Taka)
11,910
6,537
(9,169)
(9,924)
(10,560)
(12,750)
(14,380)
(14,403)
(17,788)
(19,416)
(31,220)
(31,303)
(31,369)
(35,199)
(43,682)
(95,970)
(173,324)
(532,009)

Chemicals
Particulars
Mebyo Ldh H/C
Custic Soda
Lemagal Dsp
Awn
Albafix Eco
Hydross
Lubisol Am
INVATEX CS/Chelam Nex/Cs
Yoga Acid/Acetic Acid
Lime Powder
Common Salt
Total

Unit
Kg
Kg
Kg
Kg
Kg
Kg
Kg
Kg
Kg
Kg
Kg

As per Book

As per
physical
Excess/(shor
verification
t)
69
827
617
2,452
641
438
1,688
1,826
1,353
5,980
10,118
26,009

370
1,090
805
2,635
783
569
1,780
1,680
1,070
5,000
9,028
24,810

301
263
188
183
142
131
92
(146)
(283)
(980)
(1,090)
(1,199)

Rate
460
74
139
130
409
182
104
138
151
12
10

Amount (Taka)
138,316
19,575
26,111
23,726
58,082
23,896
9,580
(20,128)
(42,659)
(11,760)
(10,791)
213,948

Stock of Dyes
Particulars
Megaperse R Turquoise Tna
Sunfix Deep Red Mf-Cn
Sunzol Black B 150%
Nova Super Black G
Sunfix Red Spd Cone
Synafix Supra Yellow
S4gl 200%
Sunfix Supra Orange S2rn
Magapase Yellow-Egl
Magaprase Red Erg
Sunfix Red S3b 150%
Sunfix Yellow Spd
Sunzol Blue Rs 150%
Sunfix Navy Blue Mf-Cn
Sunfix Red Mf-Cn
Sunfix Navy Blue Spd Conc
Megafix Black Ms-2g
Total
Total Short quantity

Unit
Kg
Kg
Kg
Kg
Kg
Kg
Kg
Kg
Kg
Kg
Kg
Kg
Kg
Kg
Kg
Kg

As per Book

As per
physical
Excess/(shor
verification
t)

75
610
1,950
34
960
400
410
21
16
223
1,370
275
200
1,075
205
45
7,869
95,815

Rate

Amount (Taka)

541
1,870
926

75
69
80
34
34

1,057
982
372
745
570

79,106
67,866
29,727
25,501
19,380

374
385
191
1,442
298
272
1,150
317
566
8,331
99,333

26
25
21
16
32
(72)
(23)
(72)
(75)
(112)
(521)
(462)
(3,518)

707
719
737
936
285
385
1,478
484
519
623
571

18,135
18,047
15,160
14,667
9,140
(27,612)
(33,639)
(34,727)
(38,925)
(69,539)
(297,206)
(204,920)
(522,981)

4.2 The following items have not been used in production for more than one year. We have estimated 50% of the
cost could be realized.

Name of Items

Unit

Chemicals
Mesoft Tm Sc Conc
Kg
Decol Rsa
Kg
Biorol (Wettin) Ow/60
Kg
Mesoft Tm Sc Conc
Kg
Eva Soft A
Kg
Total
Dyes Stuff
Nova/Ciba Turquise Hgn
Kg
Es
Kg
Sunfix Blue Ssr
Kg
Remazol Blue Rr Gran
Kg
Megaperse R Blue Ebl
Kg
Remazol Yellow Rr Gran
Kg
Megaperse R Turquoise Tna
Kg
Synafix Supra Orange Srf
Kg
Syna Cron Blue Fnr
Kg
Sunfix Blue Ssr
Kg
Sunzol Brill Violet 5r
Kg
Terasil Blue. 3rl 150%
Kg
Terasil Yellow W4g
Kg
Nova/Ciba Yellow Fn-2r
Kg
Nova/Ciba Blue Fnr
Kg
Nova/Ciba Yellow S3r
Kg
Dianix Turquoise Blue S-Bg
Kg
Total
Total
Less - Estimated Realizable vale - 50% of cost
Loss on slow moving items

Last
purchase
date

Quantity

Rate

Amount (Taka)

9/30/2009
5/10/2011
3/22/2011
9/30/2009
12/31/2009

1,350
187
1,580
1,350
435

160
260
173
160
147

216,203
48,679
272,961
216,203
63,962
818,007

5/20/2010
11/25/2010
1/23/2011
11/25/2010
11/15/2011
11/25/2010
11/15/2011
4/20/2008
1/1/2008
1/23/2011
7/18/2010
1/1/2008
4/29/2010
12/23/2010
12/22/2010
1/31/2009
4/15/2008

29
268
50
77
49
23
75
353
625
50
20
35
25
80
6
25
24

5,128
473
2,240
1,056
1,112
1,473
1,057
723
1,291
2,240
1,019
635
1,640
524
1,871
659
1,947

148,712
126,764
112,000
81,312
54,755
33,879
79,136
254,715
807,082
111,982
20,314
22,208
40,988
41,896
11,228
16,474
46,732
2,010,176
2,828,184
1,414,092
1,414,092

4.3 As per management report the following stock items could not be used in production :

Name of Items
Chemicals
Exchange Resin
Uvitex Bam Liq
Vitexolk New-1h1
Cationic-Soften Ca
Synowhite Byb
Diaclon-Tc
Leveling Osk
Silicon-Soften Conc
Sera Zon C-Ms 100
Coston-B
Activa Carbon Crystal
Calgon-K
Stalon-101
Total
Dyes Stuff
Nova/Ciba Red S-2b
Reactive Black Mx-Gr
Synafix Supra Deep Red Dh
Synafix Supra N/Blue Md
Nova/Ciba Orange Fnr
Synafix Supra Yellow3rs
Reactive Yellow Mx 3r
Reactive Red Mx 3b
Reactive Blue Mxfb
Nova/Ciba Brill Red Fn-3gl
Reactive Yellow Mx 4g
Sunzol Black Dn Conc
Synafix Supra Yellow Md
Synafix Supra Blue Srf
Total
Total Obsolete stock

Unit

Last
purchase
date

Kg
Kg
Kg
Kg
Kg
Kg
Kg
Kg
Kg
Kg
Kg
Kg
Kg

1/1/2008
6/30/2010
1/1/2008
10/22/2008
1/1/2008
10/22/2008
10/22/2008
10/22/2008
12/4/2008
10/22/2008
6/28/2008
10/22/2008
10/22/2008

2,075
1,050
400
900
48
800
700
400
275
300
225
300
100

300
252
524
117
1,986
112
117
156
167
123
118
81
161

622,853
264,926
209,748
105,453
95,343
89,568
82,026
62,400
45,991
37,038
26,550
24,348
16,112
1,682,355

Kg
Kg
Kg
Kg
Kg
Kg
Kg
Kg
Kg
Kg
Kg
Kg
Kg
Kg

6/24/2009
7/31/2008
4/20/2008
9/30/2008
1/1/2008
5/29/2008
5/29/2008
5/29/2008
5/28/2009
2/9/2010
5/29/2008
7/19/2009
6/30/2010
1/1/2008

11
34
50
180
14
698
164
1,341
350
10
571
8
43
240

632
295
641
948
766
268
227
287
452
1,280
397
625
53
483

6,952
10,030
32,050
170,640
10,724
187,064
37,239
384,867
158,200
12,800
226,703
5,006
2,293
115,968
1,360,537
3,042,892

Quantity

Rate

Amount (Taka)

4.4 During the course of our audit we have found the following items which were not shown in the inventory list.
We could not ascertian the cost or realizable value of those items :
Particulars
Chemicals
Mesoft-Pas
Sodium Hypochlorite
Urea
Jintex Wrn
Apriton AM
Protefix Dpe-568
Rockaryl
Retvam Czw
Sw-147 Violet ( Af )
Stock of Dyes
Sunfix Yellow Mfd
Sunfix Yellow Mf Cn
Sunfix Navy Blue Md
Sunzol Deep Black Gbh/C
Reactive Orange Mx 2R
Reactive Orange Mx 2R
Syno White 4Bk
Solacion Red He3B

Quantity (Kg)
120
210
50
120
150
11
100
150
9
126.5
296.06
140
17
18
18
39.1
4.25
1,579

10

5 Advance Deposit and Prepayments

Taka
Balance as per
book as on
31.07.2012

Advance against Goods supply

Advance Income Tax
Advance for Expenses
Advance for Other Finance
Advance to Employees
Suspense
Deposits
Advance against BB LC No.2011
Advance against BB LC No.2012
Advance For Import LC
Total

Doubtful of
Recovery - 5.2

20,504
7,588,705
6,818,055
10,216,220
345,188
1,118,838
3,958,484
174,906
5,027,546
7,441,174
42,709,620

(67,604)
(938,853)
(64,188)
(21,000)
(1,091,645)

41,617,975
Amount (Taka)
Restated Balance
as on 31.07.2012
20,504
7,588,705
6,750,451
9,277,367
281,000
1,097,838
3,958,484
174,906
5,027,546
7,441,174
41,617,975

5.1 Following advances & deposits have been considered as good :

5.1.1 Advance against Goods supply
Particulars
Global Tex Associates Ltd
Diverse Manufacturing ind. LTD
Total
5.1.2 Advance for Expenses
Particulars
ITTB
Mr.Taimur Reza
S R Corporation
Total
5.1.3 Advance for Other Finance
Particulars
Port Land Textile
Land Development
Abul Hasem
Canteen Advance to Hanif
Orange Design Ltd
Nemsan Fashion Management Ltd.
Advocate Ranaga Bikas Chowdury
Mr. MA Rab
Cash Incentive Receivable
Total

Purpose of transactions

Amount (Taka)

Purchase of Yarn- Lycra 20D

Purchase of Cartoon, Poly

20,000
504
20,504

Purpose of transactions
Against Purchase
ETP modification work
Against Purchase of Vehicle

Amount (Taka)
4,300,451
150,000
2,300,000
6,750,451

Purpose of transactions
Amount (Taka)
Amount receivable for sale of dyeing Machine
1,759,274
Labour bill for construction work
30,530
Deep Tubeweel work
20,000
Canteen Advance
48,146
Subcontract work for Dying section
150,000
Advance paid for subcontract work of garment section 50,500
Legal expense
100,000
Sales Commission to buyer
1,250,915
Provision for incentive shown as advance

11

5,868,002
7,467,563

5.1.4 Loan to Employees

Particulars
Advance against salary
Mr. Mokter Ahmed Belal, PM
Mr. Jane Alam ( Generator OPT. )
Mr. Mezba, Asstt. Accts. Manager
Mr. Shahadat ( Printing In-Charge )
Mr. Sujit Chakrabotty
Mr. Kutub Uddin -Floor In-Charge
Mr. Nurul Hoque (Driver)
Total
5.1.5 Advance as Suspense
Particulars
Mr. Nayak Commercial Dept.
Mr. Rubel, Purchase Officer
Mr. M.A. Bakkar Managing Director
Mr. Nasir Uddin Commercial Manager
Mr. Jaker Ullah Doctor
Mr. Ahmed Kabir Commercial Officer
Mr. Habib
Mr. Liakat Ali Driver
Mr. Jane Alam ( Commercial )
Mr. Shahjahan- Merchandiser
Mr. Asraf Ali Manager Admn.
Mr. Abdul Baten, Manager Marketing
Mr. Hatem ( Printing Designer )
Mr. Osman ( Driver - 659 )
Mr. Sarwar Hassan Titu
Mr. Prabas
Mr. U K Dewanjee (Merchandiser )
Mr. Rashid
Mr. Bijoy Peon
Mr. Aziz ( Driver )
Mr. Manjur Kader Central Store
Mr. Lokman
Mr. Amin Germents
Mr. Farok
Mr. Zafar Saleem
Mr. Farok Hossain Finishing Supervisor
Sus.- Mr. Mohiuddin ( Printing )
Mr. Shahed Driver
Mr. Nurul Hoque Driver

Purpose of transactions
advance against salary
employees' personal loan
employees' personal loan
employees' personal loan
employees' personal loan
employees' personal loan
employees' personal loan
employees' personal loan

Amount (Taka)
17,000
72,000
5,500
36,000
25,000
50,000
75,000
500
281,000

Purpose of transactions
Com
Purch
LCD
Com
Purch
BKME
Night
Gasoli
ne
Com
Travel
Deep
Prom
otion
Film
Gasoli
ne
Differ
Maint
Again
Chemi
Entert
Gasoli
ne
SubTruck
fare
Entert
Mater
Machi
Travel
Travel
Gasoli
ne
Gasoli
ne

Amount (Taka)
781
366,231
11,000
5,500
6,500
25,060
10,785

Total

8,938
20,707
136
46,866
29,193
4,860
1,000
189,751
2,455
55,000
33,250
3,179
2,052
32,379
8,000
500
74,910
146,822
980
1,000
6,074
3,929
1,097,838

12

5.1.6 Deposits
Particulars
Bank Guarantee Margin
Security Deposit
Total

Purpose of transactions
Amount (Taka)
Bakhrabad Gas System Ltd.
470,400
BGSL & Karnaphuli Gas Distribution Co. Ltd.
3,488,084
3,958,484

13

5.1.7 Advance for Back to Back LC

Particulars
LC No.1810-11-04-0351
Total

Purpose of transactions
LC Charges and Commission

Amount (Taka)
174,906
174,906

5.1.8 Advance For Back to Back 2012

Particulars
LC No.1810-12-04-0138
LC No.1810-12-04-0144
LC No.1810-12-04-0173
LC No.1810-12-04-0185
LC No.1810-12-04-0209
LC No.1810-12-04-0210
LC No.1810-12-04-0213
LC No.0117-12-04--398
LC No.0117-12-04--399
LC No.0117-12-04-0402
LC No.0117-12-06-0136
LC No.1810-12-04-0237
LC No.1810-12-04-0257
LC No.1810-12-06-0015
LC No.1810-12-04-0262
LC No.1810-12-06-0016
LC No.1810-12-04-0267
LC No.1810-12-04-0273
LC No.1810-12-04-0275
LC No.1810-12-04-0277
LC No.1810-12-04-0280
LC No.1810-12-04-0281
LC No.1810-12-04-0282
LC No.1810-12-04-0283
LC No.1810-12-04-0284
LC No.1810-12-04-0285
LC No.1810-12-06-0018
LC No.1810-12-04-0038
LC No.1810-12-04-0070
LC No.1810-12-04-0094
Total

Purpose of transactions
LC Charges and Commission
Do
Do
Do
Do
Do
Do
Do
Do
Do
Do
Do
Do
Do
Do
Do
Do
Do
Do
Do
Do
Do
Do
Do
Do
Do
Do
Do
Do
Do

Amount (Taka)
4,694
531,077
228,071
1,850
305,393
378,351
216,009
336,167
1,395
339,237
27,585
3,218
15,125
18,314
9,340
16,569
5,373
5,744
17,796
6,353
6,236
33,357
530,149
379,157
786,792
726,434
68,768
1,960
5,300
21,732
5,027,546

Purpose of transactions
LC
Do
Do
Do
Do
Do
Do

Amount (Taka)
177,020
1,859,492
4,079,876
57,292
562,730
521,100
183,664
7,441,174
32,219,465

5.1.9 Advance For Import LC

Particulars
LC No.1810-12-02-0013 Dated: 21.06.12
LC No.1810-12-01-0117 Dated: 21.06.12
LC No.1810-12-01-0116 Date: 21.06.12
LC No.1810-12-02-0016
LC No.1810-12-01-0137
LC No.1810-12-01-0145 Dated: 27.07.12
LC No.1810-12-01-0147
Total
Grand total

14

5.2 Following advances have been considered as doubtful of recovery and for adjustment against expenses:
Particulars
Advance:
Advance For Expenses
Lea Fashion & Garments Ltd
Apt International
Sea Shore Apparels Ltd
Total

Purpose of advance

Floor rent receivable

Sub-contract Finishing charge receivable
Sales bill, subsequently written off

Advance for Other Finance

Choice Garments Ltd
Mr. Iqbal Hasan
Samuda Beverage
Apparel Maker
CMS Textile Ltd.
R H Attire Ltd.
Nemsan Fashion Management Ltd.
Total

Floor rent receivable

Salary of Garments worker was lost
Mineral Water
Demurrage charge of Back to Back LC
Dyeing Charge
Dyeing Charge
Garments sub contract

Loan to Employees
Loan To Mr. Dilip Kumar Sen Gupta ( G. M. )
Total

Employee left job

Advance as Suspense
Sus.- Mr. Maleq Roni Motors
Sus.- Mr. Lokman Maintenance Department

Old brought forward balance

Maintenance works and spare parts
purchase

Total
Total - doubtful of recovery

15

Amount (Taka)

61,944
5,620
40
67,604

338,328
256,210
136,795
45,000
64,552
34,968
63,000
938,853

64,188
64,188

1,000
20,000
21,000
1,091,645

Taka

6 Trade Debtors:
Balance as per
book as on
31.07.2012

Sundry Debtors- Local LC No.

Sundry Debtors - Foreign LC No.
Doubtful Debts
Bad Debts
Disputed & Legal Action
Total

122,319,189
69,853,250
4,046,254
480,418
15,321,532
212,020,643

6.1 Sundry debtors considered as good:

6.1.1 ( Local LC)
Particulars

(2,850,547)
(2,870,459)
(4,046,254)
(480,418)
(7,432,759)
(17,680,438)

Adjustments 6.4

4,454,733

4,454,733

Restated
Balance as on
31.07.2012

119,468,642
71,437,524
7,888,773
198,794,939

9/26/2012
Subsequent position

LC No. 0035-12-04-0038 (Farzana Fashion) Realized

LC No. 0035-12-04-0047 (Farzana)
LC No. 0035-12-04-0051 (Farzana)
LC No. 0035-12-04-0058 (Farzana)
LC No. 0035-12-04-0075 (Farzana)
LC No. 0041-12-04-0113 (Techno)
LC No. 0117-12-04-0470 (Caeser)
LC No. 0342-12-04-0395 (Wahico)
LC No. 0344-08-04-0061 (Allamah
Fashion)
LC No. 0501-12-04-0121 (Uranus)
LC No. 0866-12-04-0113 (Spacio)
LC No. 1069-12-04-0016 (Saad Musa)
LC No. 1069-12-04-0251 (Adila)
LC No. 1069-12-04-0307 (Adila)
LC No. 1069-12-04-0345 (Saad Musa)
LC No. 1069-12-04-0396 (Adila)
LC No. 1203-12-04-0388 (Apt
International)
LC No. 1203-12-04-0514 (Apt)
LC No. 1273-12-04-0074 (Bench Mark)
LC No. 1273-12-04-0075 (Benchmark)
LC No. 1273-12-04-0097 (Benchmark)
LC No. 1273-12-99-0100 (Sea Blue)
LC No. 1273-12-99-0139 (Sea Tex)
LC No. 1336-12-04-0305 (Tahersons)
LC No. 1341-12-04-0196 (Cpl)
LC No. 1564-12-04-0223 (Royal Tex)
LC No. 1607-12-04-0043 (Nucon)
LC No. 1610-12-04-0045 (Kent)

Doubtful of
Recovery - 6.2
& 6.3

198,794,939
Amount (Taka)

Amount
(Taka)
1,208,228
499,592
523,125
797,225
290,812
353,711
72,900
302,280

Realized
Realized

307,500
Realized

4,039,137
772,650
210,000
6,660,098
352,980
786,408
627,617
2,108,550
9,133
558,338
121,635
402,750
498,150
877,500
1,171,148
1,850,252
874,380
209,250
315,897

Realized
Realized
Realized
Realized
Realized

Realized
Realized

16

Particulars
LC No. 1621-12-04-0019 (Shet Land)
LC No. 1621-12-04-0034 (New Tech)
LC No. 1621-12-04-0081 (Saad Musa)
LC No. 1743-12-04-0160 (Ralex)

Subsequent position

Realized

LC No. 1817-12-04-0114 (Axiom Fashion)

LC No. 1946-12-04-0331 (Figo)
LC No. 1946-12-04-0482 (Figo)
LC No. 1946-12-04-0627 (Figo)
LC No. 1946-12-04-0655 (Figo)
LC No. 1946-12-04-0658 (Figo)
LC No. 1946-12-04-0684 (C&A)
LC No. 1946-12-04-0840 (Figo)
LC No. 1946-12-04-0841 (Figo)

Amount
(Taka)
135,450
231,784
2,103,585
1,743,661
96,022
2,966,570
1,216,875
698,850
6,663,791
365,287
206,213
8,860,928
437,850

Realized
Realized

LC No. 1946-12-04-0916 (C & A Fashion)

420,000

LC No. 1946-12-04-0929 (C & A Fashion)

338,730

LC No. 1946-12-04-0959 (Figo)

LC No. 1946-12-04-1079 (Figo)
LC No. 1948-12-04-0406 (Organic)
LC No. 2083-12-04-0003 (Sea Shore)
LC No. 2083-12-04-0079 (Sea Shore)
LC No. 2962-11-04-0805 (Visual)
LC No. 2962-12-04-0080 (Tafop)
LC No. 2962-12-04-0089 (Visual)
LC No. 2962-12-04-0144 (Visual)
LC No. 2962-12-04-0158 (Visual)
LC No. 2962-12-04-0254 (Visual)
LC No. 2962-12-04-0414 (Visual)
LC No. 2962-12-04-0460 (Visual)
LC No. 2962-12-04-0485 (Visual)
LC No. 3038-12-04-0235 (Stitch Tone)
LC No. 3038-12-04-0281 (Stitchtone)
Mr.Ehan
Shah Amanat Enterprise
D M Garments
K D S Textile Mills Ltd.
Ambia Knitting & Dyeing Ltd.
A D Fashion Ltd.
A N Textile
Arefin Textile
Arina Composite
Base Textile
Clifton Apparels Ltd.
Farzana Fashion Fashion Ltd.
Ifco Garments
Kazi Enterprise

1,540,158
95,850
638,263
7,509,708
176,160
170,813
3,771,224
7,471,436
2,231,250
749,250
11,281,953
320,212
1,937,325
206,859
2,119,342
1,908,059
550,000
31,443
66,186
18,637
49,130
52,470
400,000
11,875
23,984
740,891
2,625,544
8,930
1,838,679
297,584

Realized
Realized
Realized

Realized
Realized
Realized

Realized

Realized

17

Particulars

Subsequent position

Mam Apparels & Textile Ltd

Ritzy Apparels
Stich Tone Apparels Ltd.
Sub Contract Debtors
Bulk Debtors
Screen Impression (Cpl)
LC No. 1556-08-04-0006 (Sayeed Knit)
Fashion Create Apparels
Total

Amount
(Taka)
19,924
12,028
1,264,721
10,294,464
4,912,924
1,804
405,449
124,725
119,166,093

6.1.2 Sundry debtors ( Export LC):

Particulars
Master LC No. 100-1221 (Califonia)
Master LC No. Dchkh 626231 (Kik)
Master LC No. Dchkh 626954 (Kik)
Master LC No. Dcmtn 738835 (Lollytogs)
Master LC No. Dtnlfm 619330
Master LC No. I55122228 (Ym Inc)
Master LC No. I55122246 (Ym Ics)
Master LC No. I55122338 (Ym Inc)
Master LC No. I55122378 (Ym Inc)
Master LC No. I55122463 (Ym Ics)
Master LC No. Imp00312949 (Hartsko)
Master LC No. L080790 (Allura)
Total

Subsequent position
Realized

Realized
Realized
Realized
Realized
Realized
Realized
Realized
Realized

Amount
(Taka)
7,192,758
10,791,220
2,177,044
6,627,974
2,227,500
2,929,860
16,935,000
5,350,110
2,701,915
840,000
220,166
14,276,700
72,270,246

6.2 Company has filed a number of lawsuits against its debtors to realize over due receivable amount. The
details are given below :
Disputed & Legal Action
Amount
Particulars
(Taka)
LC No. 1946-07-04-1244 (Day Fashion)
2,693,568
LC No. 2355-07-04-0081 (Joint Garments)

488,175

LC No. 1279-08-04-0124 (Mam Apparels)

343,728

LC No. 1946-08-04-0185 (Day Fashion)

514,102

LC No. 1541-08-04-0017 (Jerat Fashion)

2,129,763

LC No. 2088-09-04-0043 (B K Dyeing)

LC No. 2094-09-04-0131 (Benchmark)
LC No. 1814-09-04-0540 (Araz)
LC No. 10007321 (Intimo Inc)

2,112,770
1,290,658
565,802
1,713,746

18

Amount
(Taka)

Particulars
Chumki Apparels ( LC No. 0342-05-040209)
Samotaf Apparels Ltd. (LC No. 0501-06-040152)
Lemond Fashion
Benchmark Apperels Ltd
Sub total:
Less: 50% of total amount- assumed bad
Net realizable amount

973,614
1,349,088
579,265
37,080
14,791,359
7,395,679
7,395,679

On the basis of discussion with the Management it has been assumed that 50% of the above amount
could be realized and accordingly the rest 50% has been considered as bad.
6.3 The following debtors have been considered as bad.
6.3.1 Sundry Debtors- Local LC No.
Particulars

Subsequent position

LC No. 1610-09-04-0038 (Kent)

Allowed discount to buyer due

6.3.2 Sundry Debtors - Foreign LC No.

Presentation Apparels Ltd.
Sonnet Textile Ind. Ltd
6.3.3 Doubtful Debts
LC No. 0117-11-04-0090 (Caeser)
Mrf Fashion Ltd.
LC No. 2962-09-04-0520 (Visual)
LC No. 0343-11-04-0332 (Dress well)
Monwara Hero Apparels
Design Apparels
Splendid Fabrics Ltd

Amount
(Taka)
2,850,547
2,850,547

Unadjusted sinc 2010

Unadjusted since 2010

2,681,068
189,391
2,870,459

Unadjusted since 2010

Unadjusted since 2008
Unadjusted since 2010
Allowed discount to buyer due

1,677,042
1,023,000
572,005
320,000
283,050
101,946
69,211
4,046,254

6.3.4 Bad Debts

LC No. Dchte 628268Ee Allied Bright

Unadjusted since 2008

6.3.5 Disputed & Legal Action

Benchmark Apparels Ltd.

480,418
480,418
37,080
37,080
10,284,759

Total - bad debts

19

6.4 Inappropriate treatment of Exchange loss/(gain) and credit balance shown in debtors:
Exchange gain of Tk. 2,037,736 was not recognized in the profit and loss account. The said amount was
lying in the Accounts Receivables as on 31 July 2012. As a result net income was understated for the
same amount. Conversion gain balances shall be transferred from the Doubtful (Sundry Debtors)
accounts to P/L A/c (Exchange loss/Gain).
Amount
Subsequent position
Particulars
(Taka)
LC No. 3038-10-04-0349 (Stitch Tone
Adjusted
171,805
Apparels)
LC No. 3038-12-04-0029 (Stitch Tone
Do
484,242
Apparels)
Do
235,264
LC No. 3038-12-04-0125 (Stitch Tone)
Do
172,053
LC No. 3038-12-04-0165 (Stitch Tone)
Do
237,052
LC No. 3038-12-04-0201 (Stitch Tone)
Do
31,256
LC No. 0117-12-04-0355 (Caeser)
Do
23,373
LC No. 0342-12-04-0052 (Garland)
Do
162,361
LC No. 0501-12-04-0039 (Uranus)
Do
457,233
LC No. 1203-12-04-0035 (Apt )
Do
63,098
LC No. 2083-12-04-0051 (Sea Shore)
Total
2,037,736
Credit balance shown in debtors
2,416,997
Total
4,454,733

20

7 Cash & Bank A/c

Break down of above balance is summed up below:
Particulars
Head Office Cash
Bank Account
Total Balance
Bank of Bank
Standard Bank
Standard Bank
Standard Bank

Taka

10,375,100
Amount (Taka)
546,975
9,828,125
10,375,100

Facility enjoyed
CD Account 5442 KTG Branch
CD Account 1722 KTG Branch
Retention Quota A/c No. 003/08

Amount (Taka)

Janata Bank
CD A/c 10948 Foreign Ex. Branch
Total Balance
We noted that bank reconciliations statements are done on a monthly basis.

21

(274,557)
2,588,565
591,854
6,922,263
9,828,125

8 Loan from Directors

Taka

Particulars
Mr. M. A. Tayab
Mr. M. A. Kalam
Mr. M. A. Bakar
Mr. Ahad Yusuf
Mr. Fazlul Quader

64,296,679
Amount (Taka)
15,261,000
12,507,952
11,798,365
11,798,364
12,930,998
64,296,679

9 Long Term bank loan

Particulars

Taka

119,628,825
Amount (Taka)
37,799,239
50,506,104
31,323,482
119,628,825

Taka

311,852,241

Lease Finance - Standard

Term Loan
Term Loan 00386209915

10 Short Term bank Loan

Particulars
Standard Bank
Janata Bank

Amount (Taka)
285,365,730
26,486,511
311,852,241

22

Taka

11 Creditors
Balance as per
book as on
31.07.2012

Liability for Goods Supply

Liability for expenses
Liability for other finance
Total

17,767,962
47,710,811
9,567,509
75,046,282

Liabilities
unsettled for 3
years or more 13.2
(625,310)
(1,242,606)
(2,681,208)
(4,549,124)

Improperly
classified as
debtors

2,416,997

2,416,997

72,914,156
Amount (Taka)
Restated
balances

19,559,650
46,468,206
6,886,301
72,914,156

11.1 We have considered the following obligations are required to be settled.

11.1.1 Liability for Goods Supply
Particulars

Colour Line Chemicals

Bagdad Polyten Store
Jupiter Enterprise
G. Electric & Engineering
A S International
G.S Trade Agency
Khajachemical Traders
Maak Solution
Lan Hua Yisite
S.A Emporium
A.R Tech System
Paramount Traders
Chemiteah Services
Asif Enterprise
Computer King
Pahartali Textail & Hosiery Mills
Decent Trading
Super Jublee
Auxichem
A.N. Textail Services
Global Touch
Texco Tech
E-Tec Ltd.
B M Engineering (Mr. Monsur)
Mafo
Dysin International Ltd.
Advanced Multi Trade
Rashed Enterprise
Mim Chemicals
Lub-Rree (Bangladesh) Ltd.
Mehedi Trade Enterprise
J E Colour - Chem
C & A Textail Ltd.
Nafiz Enterprise
Dystar
Shade Tex. Ltd.
Dr. M L/C Maui/Skdm/001/12 (Mag
Apparels USA INC)
Total

Last Transaction
date

30/07/2012
31/07/2012
31/07/2012
2/05/2012
31/07/2012
15/05/2012
31/07/2012
29/07/2012
17/07/2012
29/07/2012
31/07/2012
31/07/2012
31/07/2012
31/07/2012
29/05/2012
18/07/2012
31/07/2012
31/07/2012
31/07/2012
30/07/2012
31/07/2012
25/07/2012
31/07/2012
25/07/2012
31/07/2012
18/07/2012
30/07/2012
29/07/2012
26/07/2012
3/04/2012
26/07/2012
18/06/2012
17/07/2012
19/07/2012
5/06/2012
19/01/2012

Amount (Taka)

3,129,622
1,052,625
63,000
112,700
100,000
290,000
7,200
60,000
138,000
194,680
17,000
17,000
112,400
329,500
115,480
1,721,709
102,000
41,500
5,460,060
1,944,588
79,400
1,772,108
340,575
169,250
1,512,668
1,951,802
142,500
53,500
17,400
11,500
10,000
168,000
448,594
10,000
359,435
86,117
2,416,997
24,558,909

23

11.1.2 Liability for Expenses

Last Transaction
date

Particulars

Amount (Taka)

Outstanding Salary & Wages

BakhrBd Gas System Ltd.
Power Development Board
Great Bengal Enterprise (C&F)
Bureau Veritas
Parvez Transport
Khawja TRADERS

31/07/2012
31/07/2012
31/07/2012
31/07/2012
29/06/2012
31/07/2012
31/07/2012

7,153,212
1,880,166
99,999
1,823,429
15,804
185,000
27,600

Tax Deduction At Source (Sub-Contract)

M R Dey & Co.
A A Chowdhury & Co.
Chittagong On Line Ltd.
Novo Cargo Services (C&F)
Outstanding Director Remuneration &
Allowance
Shah Amanat Knitting & Dyeing
Super Thread Limited Cotton Dyeing
Metro Knitting
Income Tax Liability
Fedex
Unpaid Salary -Garments
Sonali Fire Foe Corporation
Northern General Insurance Co.Ltd.
Sharif Textail Industry
Three Star Garments & Co.
Excelsior Express
Aramex
Total

30/06/2012
31/12/2011
30/12/2011
15/07/2012
31/07/2012

265,448
150,000
45,740
12,000
393,472

31/07/2012
31/07/2012
31/07/2012
12/07/2012
27/06/2012
31/07/2012
14/07/2012
28/06/2012
31/07/2012
31/07/2012
29/07/2012
25/07/2012
31/07/2012

16,670,000
162,982
14,772,749
5
1,959,993
28,445
37,690
2,250
88,682
256,303
351,000
32,600
53,636
46,468,205

11.1.3 Liability for other Finance

Last Transaction
date

Particulars

Amount (Taka)

Visual Knitwears Limited C/A

Kohinoor Apparels

27/05/2012
31/12/2011

2,920,143
249,070

Noor Engineering Workshop (Nurul Alam)

Monsur Furniture Suppliers
Amirul Islam (Labor Contractor)
AB Corporation
Total

31/07/2012
30/07/2012
31/07/2012
31/07/2012

266,223
3,000
276,870
3,170,995
6,886,301

11.2 We have considered the company will not require to settel liabilities aging more thant three years. Accordingly, trade creditors
held more than three years are added back as income in the adjusted retained earning statement:
11.2.1 Liability for Goods Supply
Particulars
Al-Din Printers
Chemitech Services 2000
Orbit Steel
Total

Last Transaction

Amount (Taka)

29/08/2011
Brought Forward
Brought Forward

144,560
400,750
80,000
625,310

24

11.2.2 Liability for Expenses:

Particulars
Asia Insurance
Continental Insurance
CTG Oil & Food Ltd.
Daf Packaging Ind.
Dane Engineering Works
Farzana Steel
Jam Thread Ltd.
Loyeds Insurance Co.Ltd.
Mercantile Insurance
Mr. Faizullah (Boiler)
N R Steel
Peoples Insurance
Sea Electronics
T K Re Rolling Mills
T K Steel
Ratul Engineering (ETP)
Water Science & Technology
Total

Last Transaction

Amount (Taka)

Brought Forward
Brought Forward
30/11/2009
Brought Forward
Brought Forward
Brought Forward
Brought Forward
Brought Forward
Brought Forward
Brought Forward
Brought Forward
Brought Forward
Brought Forward
Brought Forward
Brought Forward
31/12/2008
09/07/2009

176,375
9,303
39,122
116,233
78,800
118,194
63,431
43,686
71,513
6,357
29,886
119,480
13,000
91,210
216,574
4,442
45,000
1,242,606

Last Transaction

Amount (Taka)

Brought Forward
Brought Forward
Brought Forward
31/12/2011

100,512
3,739
29,875
2,547,082
2,681,208
4,549,124

11.2.3 Liability for other Finance:

Particulars
Mr. Rob (Quota Premium)
Short Loan
Short Loan (Zakat)
Provision For Overvalue
Total
Total - liablities unsettled for three years or more

25