Annual Report 2014-2015

approaching ahead
Smoothly…
cementing the future…
ABOUT THE
COVER
We all want success. Success means getting nearer to the place where
we want to be. Choosing the right path is therefore ordinarily regarded
as the most critical factor to reach the desired destination. But we, at
Premier Cement define the means of success differently. As we know,
success never comes in a simpler way; thus, while others are busy in
searching for the simpler roads, we are working to create our own
congenial ‘Road to Success’.
As we believe, followers never deserve success, doer does.
Thus over the decade, Premier Cement has reached in an astute position
by simply understanding the conventional business compass from a
different point of view. And now through adroitly dealing with many ups
and downs, responsibly creating numerous opportunities the Company
has been approaching successfully along with the society towards its
desired destination across the horizon.

FORWARD
LOOKING
STATEMENT
In this Annual Report of Premier Cement Mills Limited, hereafter we
have disclosed forward-looking information to enable investors to
comprehend our prospects and take informed investment decisions.
This report and other statements that we periodically publish contain
forward-looking statements that set out anticipated results that reflect
the management’s future plans and assumptions.
We cannot guarantee that these forward-looking statements will
be realized, however, we believe we have been prudent in making
assumptions. The achievement of results is subject to risks, uncertainties
and even inaccurate assumptions. Should known or unknown risks
or uncertainties materialize, or should underlying assumptions prove
inaccurate, actual results could vary materially from those anticipated,
estimated or projected information. Readers’ discretion is therefore
expected.
We also do not undertake any obligation to publicly update any of these
forward-looking statements except for the regulatory requirements,
whether as a result of new information, future events or otherwise. 
 Table of contents

Corporate Overview:
Remarkable Projects 2
Awards and Recognitions 4
Notice of 13th Annual General Meeting 6
Letter of Transmittal 7
Introducing Premier Cement 8
Ethos & Values 10
Code of Conduct and Ethical Standards 12
Corporate Information 14
Key Chronicle 16
Graphical representation 18
Our Strengths and Resources 20
Chairman’s & Directors’ profile 22
Key personnel 26
Message from the Chairman 28
Management’s Analyses and Reports:
Directors’ Report 30
Annexure i - Directors’ Declaration 40
Annexure ii - Audit Committee Report 41
Annexure iii - Shareholding pattern 42
Annexure iv - CEO and CFO’s Declaration 43
Governance and Compliance:
Certificate of BAPLC 44
Report on Corporate Governance Compliance 45
Certificate on the Compliance of Corporate Governance Guidelines 49
Sustainable Development Report:
Sustainable Development 50
Value added statement 53
Human Resource Accounting 54
Financial Statements:
Consolidated 57
Stand-alone 91
Shareholders’ corner: 143

AnnuAL RePoRT 2014 - 2015

 Remarkable Projects

–Mirpur,
et Stadium
a n g la N ational Crick
Sher –E- B Bangladesh
.

ar BGB
Shimanto Shombh
Headquarter – Dh aka

ittagong
Maa O Shishu Hospital –Ch

Kadamtoli Flyo
ver –Chittagong

Sheikh Kam
al Internatio
nal Cricket St
– Cox’s Baza adium k a
r ver –Dha
r Mouchak Flyo
Moghbaza

PReMIeR CeMenT MILLS LIMITed

 –
de Centre
ati o n a l G arment Tra
Intern haka
Ashulya, D

RM Centr
e, Green
R oad –Dh
aka

ka
, Banashree -Dha
Protik Ruposree

ahi
ban –Rajsh
Nagar Bha

Rajshahi City Centre –Rajshahi

Malen
da Brid
Maa O Shishu Hospital –Chittagong ge –Dh
aka
3

AnnuAL RePoRT 2014 - 2015

 Awards and Recognitions

Certificate of Excellence in Corporate Governance.

PReMIeR CeMenT MILLS LIMITed

Mr. Mohammed Am
irul Haque, Managin
from Honorable Fin g Director is receiv
ance Minister Mr. Ab ing the Bronze Award
ul Maal Abdul Muhit
h, MP.

iving the
MA, is rece
Talukder, FC
M r. M d. Sh afiqul Islam na nce M in ister
nancial Offi
cer, ble Fi
Our Chief Fi om Honora
of Merit” fr ith, MP.
“Certificate ul M aa l Abdul Muh
Mr. Ab
5

AnnuAL RePoRT 2014 - 2015

 Notice
of 13th Annual General Meeting
Notice is hereby given that the 13th Annual General Meeting (AGM) of Premier Cement Mills Limited
will be held on Thursday, 26th November 2015, at 11:00 am at Chittagong Club Limited, SS Khaled Road,
Lalkhan Bazar, Chittagong, for transaction of the following businesses:

Agenda:
1. To receive, consider and adopt Directors and Auditors Reports and the Audited Financial Statements of the
Company for the year ended June 30, 2015.
2. To declare Dividend for the year ended June 30, 2015.
3. To elect Directors in place of retiring Directors.
4. To appoint statutory Auditors for the year ended June 30, 2016 and to fix their remuneration.
5. To transact any other business with the permission of the Chair.

By order of the Board

Date :10 November 2015 Kazi Md. Shafiqur Rahman

Place : Dhaka Company Secretary

Notes:

1. Shareholders, whose names appear on the Members/Depository Register on the Record Date i.e. on 18th October, 2015 shall
be eligible to attend the 13th AGM of the Company and to receive the Dividend.
2. A member eligible to attend and vote at the Annual general Meeting, may appoint a proxy on his/her stead. The proxy form
attached with Annual Report-2015, duly filed in, signed and stamped, must be submitted at the Corporate Office of the
Company not later than 48 hours before the time fixed for the meeting.
3. Only Shareholders or their validly appointed proxies will be allowed to have access to the registration process to attend the
meeting.
4. Admission into the auditorium will be allowed strictly on submission of the attendance slip sent with the Notice.
5. Shareholders are requested to submit their queries on the Directors’ Report and the Audited Financial Statements for the
year ended June 30, 2015 at the Corporate Office of the Company at least 3 (three) working days before the day of Annual
General Meeting.
6. The Annual Report for the year ended on June 2015 is available in the Company’s website at www.premiercement.com.

†kqvi‡nvìvie„‡›`i m`q AeMwZi Rb¨ Rvbv‡bv hv‡”Q †h, Avmbœ evwl©K mvavib mfvq †Kvb cÖKvi Dcnvi/Lvevi/hvZvqvZ fvZv cÖ`v‡bi e¨e¯’v _vK‡e bv|

Some Moments in 12th AGM

PReMIeR CeMenT MILLS LIMITed

 Letter of Transmittal
To All Shareholders
Bangladesh Securities and Exchange Commission
Registrar of Joint Stock Companies & Firms
Dhaka Stock Exchange Limited
Chittagong Stock Exchange Limited

Sub: Annual Report for the year ended June 30, 2015.

Dear Sir(s),

We are pleased to present before you the Annual Report of Premier Cement Mills Limited along with the audited
Financial Statements (Consolidated and Separated) as at and for the year ended June 30, 2015. Financial Statements
along with notes of the Company comprise both the standalone and consolidated Statement of Comprehensive
Income, Statement of Changes in Equity and Statement of Cash Flows for the period ended June 30, 2015.

Yours sincerely,

Kazi Md. Shafiqur Rahman

Company Secretary

AnnuAL RePoRT 2014 - 2015

 Introducing Premier Cement

Premier Cement Mills Limited

Back in 2001, when Premier Cement Mills Limited had been ventured by reckoning
the ideas of a group of renowned business leaders was yet to be established. But
soon in 2004, after all of necessary organizations, the company started its commercial
production with only 0.6 Million Metric Tons annual production capacity. From then
it never has to look back, as growth became its usual phenomenon. And after being
listed in stock exchanges on February 2013 and having more than a decade of
commercial production, the Company is now proudly providing almost seven percent
of country’s total demand for cement. Having a remarkable yearly production capacity
of 2.4 Million Metric Tons, the Company along with a broaden history of growth,
approaching towards achieving greater market share by ensuring its fullest devotion
to customer satisfaction and ethical business practices.

The Company manufactures European standard Cement as its sole product using the
best raw materials and technical excellence available. The durability and dependability
of Premier Cement made the company fairly popular in both local and foreign
markets. As a result its products are being continuously used widely for different
multidimensional constructions, which demand greater strengths and reliance for the
benefit of future generations.

With an indomitable spirit and a contrarian strain of thinking, we are now continuously
working towards the betterment of our manufacturing operations, marketing network
and financial position; with a view to have incrementally better outcomes at every
fraction of time.

Annual Report 2014 - 2015

 Ethos & Values
Vision Values:
That we care for

Work towards the Along with good Corporate

development of the society Governance, business ethics is an
through sustainable integral part of everything that our
growth and excellence in Company does. Our core values lies
performance. on ensuring highest standards of
ETHICS in business integrity and
process for the best interests of all our
Mission stakeholders - not just our customers
- but also our shareowners, workforce
To become a Leader in the and external parties who work
Cement industry by satisfying the together with us.
customers through production
excellence, competitive pricing
and by creating value for the
stakeholders.

10

Premier Cement Mills Limited

Strategies:
That we strive for

The Company would continue to invest in its plants & operations in a strategic way so that such investment
results in cost-effective operations.
Along with focusing towards a strong presence of its products throughout the local market the Company
would supply its products in diverse markets to achieve a healthy and growth oriented sales, in order to
achieve dynamic financial results, with maximum returns to all the stakeholders.
By recognizing its responsibilities toward the society and its stakeholders the Company would also
continue to demonstrate its commitment of better and brighten lives for all associated through holding a
good corporate citizenship.

11

Annual Report 2014 - 2015

 Code of Conduct and Ethical Standards

O
association with other entities which can be materially
significant to the Company should be disclosed and
ur code of conduct lays out our Company’s permission from audit committee as well as Board of
expectations and guiding principles for Directors should be taken thereby.
appropriate workplace behavior. The But, no bar is imposed over the Directors’ personal
purpose of this Code of Conduct is to assure our investments, social relations or conducting normal
every business activity being conducted in accordance business courtesies. But they should ensure that such
with the applicable Laws, Regulations, Rules; and activities do not directly or indirectly compromise the
with the highest standard of ethics and values. The performance of their responsibilities. Furthermore,
Board of Directors is responsible for setting and political participation, if any, may cause to sacrifice
updating the standard of conduct contained in this their duties towards the Company. If any member of
code in accordance with the changing needs of all BOD decides to do so, disclosure to and approval from
its stakeholders. This Code of Conduct is applicable the Board of Directors is expected.
to all Company Directors Senior management and
Employees with a view to promote and ensure: Business Relationships
• honest and ethical conduct including ethical Directors and management should not be engaged,
treatment of actual or apparent conflicts of directly or indirectly, in any act which may bring
interests between personal and professional discredit to the Company. They must not make
relationship, a commitment that the Company cannot honor
• full and fair disclosure in reporting, because the business of the Company is expected to
be conducted legally and ethically and by no means,
• and compliance with all applicable laws, rules and
profits will justify any use of unethical business
regulations.
practice.
Honest and Ethical Conduct:
Corporate Disclosure
All the Directors and Employees shall act in accordance
Directors and Senior Management personnel are liable
with highest standard of personal and professional
to full, fair, accurate, timely and understandable,
integrity, honesty and ethical conduct.
relevant disclosure in reports and documents it files
Legal Compliance with or submits to the regulatory bodies and publishes
through the medium of public communications. They
It is the general obligation of the Directors as well as
should not knowingly misrepresent, or cause others
Management to conduct the business and operations
to misrepresent, facts about the Company to others
of the Company in accordance with the laws, rules,
within or outside the Company including to the
regulations, agreements, guidelines and standards
Company’s Audit Committee, Statutory Auditors, Govt.
governing its operations in the country. The Directors
regulators and investors.
and Senior Management personnel therefore expected
to be conversant with legal requirements relating to Privacy & Confidentiality
their duties sufficient to enable them to perform their
Directors and management personnel must ensure that
obligations diligently.
no confidential information as well as forward-looking
Conflict of Interest statements or any information which can influence
capital market without approval from respective
The term “conflict of interest” refers to situations in
authority. Also they must not disclose any information
which any type of personal benefit may compromise
regarding proceedings of Board meetings / Committee
the professional judgment of Directors or Management
meetings / internal meetings or any tentative decisions
Personnel. The Directors and Management personnel
about to be taken in those meetings.
are expected to avoid and disclose any activity or
association that creates or appears to create a conflict The following information, along with other
between the personal interests and the Company’s information as directed by the Chairman of the Board,
business interests. Any form of relationship or may be termed as confidential
12

PReMIeR CeMenT MILLS LIMITed

• Information on trade and any trade secrets Reporting of Illegal or Unethical Behavior
• Confidential and privileged information regarding Directors or Management must not suppress/
customers, employees conceal any report regarding violation of laws, rules,
• Information relating to mergers and acquisitions regulations or unethical conduct reported by the Audit
• Dividend, stock splits and divestitures etc. Committee. Rather, they must take immediate action
on correcting such violation. Also, they must ensure
• Plans relating to business issues and decisions which
that no violation of laws, rules, regulations or unethical
is not available in the public domain at that point of
conduct remains confidential by any employee.
time
Employees are free to report existing/probable
Confidential information or forward-looking violations of laws, rules, regulations or unethical
statements, however, can be disclosed with prior conduct to their immediate supervisor or such other
approval from appropriate authorities or as legally person as may be notified by the Management to the
mandated. workgroups.
Fraudulent and Unfair Practices in the Health, Safety & Environment
Securities Market
Company must comply with all the relevant
The Company prohibits its Directors and Management environmental, safety and health laws and regulations.
from any fraudulent and unfair trade practices in the Directors/ Management must run the operation of
securities market, with regard to the securities of the the Company in an environment friendly manner and
Company or of any other Company with whom the provide a safe and healthy working environment to all
Company has business dealings to the best of their of its employees.
knowledge.
Applicability, Amendment, Modification &
Protection and proper use of Company’s Waivers
opportunities and Resources
The comprehensive code applies equally to all
Unless approved by the Board of Directors, Directors employees, Directors and Management personnel.
and Management personnel are prohibited from taking Directors shall communicate any suspected violations
personal benefit from any opportunities that belong to of the Code promptly to the Audit Committee.
Company. Furthermore, every employee and Director Suspected violations will be investigated by Audit
must protect the Company’s assets from loss, damage, Committee and appropriate action will be taken if the
misuse or theft. They must ensure that the assets are violation is so confirmed.
only used for business purposes and other purposes
In consultation with the Audit Committee, Board
specifically approved by Management. Also, they must
of Directors may amend, modify, or vary this Code,
not apply the Company’s assets or information for
subject to relevant provisions of law, rules, regulations
personal benefit or for the benefit of any other related
and guidelines in force. The Board will not grant
party.
exemption to this Code. But in case of extraordinary
Fair Dealing situations the Board may waive or grant waiver
from anyone or more from this code but reasons,
Any personnel inside the Company must not
explanations of the exception must be approved,
discriminate other employees, customers, suppliers or
written and filed thereby.
any business partners based on caste, religion, gender,
nationality or disability of any kind. Also, they must not As this Code does not specifically address every
give unfair benefit to any employee, customer, supplier, potential form of unacceptable conduct, Directors
or competitors through manipulation, concealment, should exercise good judgment to comply with the
abuse of privileged information, misrepresentation of principles set out in this Code. Therefore, Directors
material facts or any other unfair-dealing practice. should avoid any circumstances that will violate the
spirit of this Code.

13

AnnuAL RePoRT 2014 - 2015

 Corporate Information
Board of Directors
Mr. Mohammad Mustafa Haider - Chairman
Mr. Mohammed Amirul Haque - Managing Director
Mr. Md. Jahangir Alam - Director
Mr. Md. Alamgir Kabir - Director
Mr. Mohammed Ershadul Hoque - Director
Mr. Rafiq Ahmad, FCMA - Independent Director
Mr. Tariq Ahmed - Independent Director

Audit Committee
Mr. Rafiq Ahmad, FCMA - Committee Chairman
Mr. Tariq Ahmed - Member
Mr. Mohammed Ershadul Hoque - Member

Chief Financial Officer

Mr. Md. Shafiqul Islam Talukder, FCMA

Company Secretary
Mr. Kazi Md. Shafiqur Rahman

Head of Internal Audit

Mr. Md. Masuk Chowdhury

Statutory Auditors
M/s Hussain Farhad & Co.,
Chartered Accountants

Governance Compliance Auditor

A. K. Mazumdar & Associates

Valuer
S. F. Ahmed & Co., Chartered Accountants

14

PReMIeR CeMenT MILLS LIMITed

 Bankers
AB Bank Limited
Al-Arafah Islami Bank Limited
Bank Asia Limited
City Bank Limited
Dutch Bangla Bank Limited
HSBC Limited
IFIC Bank Limited
Islami Bank Bangladesh Limited
Jamuna Bank Limited
Mercantile Bank Limited
National Bank Limited
NCC Bank Limited
One Bank Limited
Premier Bank Limited
Prime Bank Limited
Pubali Bank Limited
Shahjalal Islami Bank Limited
Social Islami Bank Limited
Sonali Bank Limited
Southeast Bank Limited
Standard Bank Limited
Standard Chartered Bank Limited
State Bank of India
United Commercial Bank Limited
Uttara Bank Limited

Registered Office
Premier Cement Mills Limited
Taher Chamber, 10 Agrabad C/A, Chittagong-4100.
Phone: 031-711611-5
Fax: +880-31-710612-3
Web: www.premiercement.com

Corporate Office
T K Bhaban (12th Floor),
13 Karwn Bazar, Dhaka – 1215.
Phone: 02-9144788, 02-9127610,
02-9129826, 02-9126220
Fax: +880-02-9139797~8

15

AnnuAL RePoRT 2014 - 2015

 Key Chronicle
.. momentum that gives us a light speed to
proceed light years ahead…

Awarded Portland Pozzolana

Cement Certificate by BIS
- 06 February
Started production –
1st Unit - 12 March First Export of Cement
- 26 April

2001 2006

2004 2008

Incorporation of Achieved ISO 9001:2000

Business as Private Quality Management
Limited Company System Certificate
- 14 October - 10 May

16

Premier Cement Mills Limited

 Started production – 3rd and 4th Unit
- 01 January
Closing of IPO subscription for NRB
- 01 January
Started production – 2nd Unit
Lottery of IPO applications
- 01 January - 20 January
Achieved ISO 9001:2008 Listing in Chittagong Stock Exchanges
Quality Management System - 03 February
Certificate
Listing in Dhaka Stock Exchanges
- 10 February
- 11 February
Submission of IPO
Inaugural trading in Stock Exchanges
application for consent from
- 03 March
SEC
Imported BSW Bag Plant
- 24 October
- 18 April

2010 2012 2014

2011 2013

Awarded Ordinary Portland

Cement Certificate by BIS
- 27 January
Converted in to Public Consent from SEC for floating Started commercial
Limited Company shares to public production of the
- 16 April - 02 October Bag Plant
Beginning of IPO subscription - 14 July
- 17 December
Closing of IPO subscription for
Bangladeshi Residents
- 23 December
17

Annual Report 2014 - 2015

 Graphical representation

While numbers
Portland Responsible for 87% of
Composite Cement Company's total sales revenue
(PCC) in FY 2014-15

are messy,
pictures make Product Mix of
the company
them easy…
Ordinary Responsible for 13% of
Portland Composite Company's total sales revenuein
Cement (OPC) FY 2014-15

Division-wise Sales Percentage Company’s sales revenue (in BDT Mn)

52% Dhaka Export Sales

2010-2011
6% Mymensingh Local Sales
11% Chittagong 2011-2012
8% Sylhet
8% Rangpur 2012-2013
8% Rajshahi
4% Khulna 2013-2014
4% Barishal
2014-2015

0 2000 4000 6000 8000 10000

Revenue and Gross Profit (in BDT Mn) Operating income and Net profit (in BDT Mn)

10000 1200
Sales 1000
8000
Gross Profit Net Profit
800
6000 Operating Income
600
4000
400
2000 200

0 0
2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015

18

Premier Cement Mills Limited

 Net Worth/ Net Assets of the Company (in BDT Mn) Production capacity and utilization (in Million MT)

4000 2500
Capacity ('000 MT)
2000
Utilization ('000 MT)
3000
1500

1000
2000
500

1000 0
2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015

Dividend disbursement history Historical Earning Per Share (EPS)

50 6

40 5

4
30
3
20
2
10 1

0 0
2011-2012 2012-2013 2013-2014 2014-2015 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015

Return on shareholders’ investment (%) Shareholding percentage

20
Percentage of Shareholders' return on investment 88.62% Directors/ Sponsors
15 7.74% Institution
3.64% Foreigners &
general public
10

0
2010-11 2011-12 2012-13 2013-14 2014-15

19

Annual Report 2014 - 2015

 Our Strengths and Resources
Product Quality combining the associate’s capacity of production. At the
very beginning, the company had started its operation by
Quality and strength are the core attributes of our cement having the capacity of only 2,000 MT per day but after
and being continuously maintained by us in every sphere setting up four consecutive production units the company
of our production process. Our products is certified by now possesses an exulting production capacity of 9,400
BUET, BSTI and ISO 9001:2008 and our fully automated MT per day with its uninterrupted production process.
manufacturing facility complies with Bangladeshi BDS EN,
Amongst the four the last unit was installed in January
American ASTM, European EN and Indian BIS standards.
2013. Considering the maximum production capacity,
Procurement of best quality raw materials and constant
future demand of our cement is fully ensured with these
monitoring of the entire process through well equipped
substitutive production units in upcoming years.
laboratories and computerized raw material feeding systems
ensures the endurance benchmark of our products from
Logistics and Distribution
the production ends to constructions. Not just to meet but
to exceed the generally accepted quality standards we have Being in a highly logistic reliant industry, we always strive
following in-house testing facilities: to maintain synergies in every facet of our Logistics and
• Fineness of Cement by air permeability apparatus Distribution; in order to apply cost minimization strategy,
• Normal consistency to have first mover advantage and to avoid waste of
• Setting time (1ST and FST)
We have a strong distributor network of:
• Mortar and Flowability test of Cement
• Chemical test (Major and Minor properties of Cement)
• Soundness test
• Autoclave expansion
More than
• Chloride test by Spectrometer
• Alkalies test by Photometer 100
Dealers
7000
Retailers
• Concrete test and Mix Design by our own concrete lab

Production Process

Production Process Planning or PPP is a strategic planning

mechanism in our everyday operation which ensures
1000
Corporate Clients

optimum level efficiency in output generation as well as

in cost minimization. It is a structured guideline and a
roadmap to us that helps us to know where we are going time and materials. Over the years by re-looking at the
and how long it will take us to get there. By planning and logistics management and delivery system, a significant
adopting such prudent strategies as well as maintaining co- improvement at time and costs were achieved. Furthermore
ordination and integration of all the factors of production we have the most advantageous plant locations, a strong
for optimum efficiency, our human resources are ensuring dealers’ network and a robust logistic team that is second to
an environment of uninterrupted production of our
products. Furthermore all our units are ensured by three
diesel based generators with 1.95 MW capacity and two NUMBER OF OUR LOGISTIC SUPPORT VEHICLES
gas based power generation plant with 5.34 MW capacities
for continuous supply of power in order to maintain stability
147 Covered Van
in our whole production process.
15 Open Truck
Production Capacity
14 Bulk Carrier
Based on production capacity, we are one of the top five
15 Vessels
cement producers in Bangladesh. Our manufacturing facility
can produce more than 2.40 million MT cement per year
20 and the amount also peaked to 2.82 million MT per annum,

PReMIeR CeMenT MILLS LIMITed

none. As a result, door-to-door delivery of our product in a costs and risks associated with the business.
timely manner became a usual practice in our business.
Bag Plant
Marketing Excellence
All successful business startups have to deal with the issues
To reinforce the customer value proposition, our marketing of handling business expansion or growth. Similarly we
and sales teams demonstrate new sense of vitality and also sought for growth in every moment. Thus through
innovation while facing the challenges involved in dealing our strategic expansion process, we have successfully
with a fast-moving market. Our young and energetic sales set up a hi-tech international standard Bag Plant at our
personnel engaged themselves with strengthening and factory premises to attain further growth. Owing the Czech
nurturing the company’s brand advantage, to maintain its Republic origin technology and German machineries;
share in an increasingly competitive market. Reaching out the plant is capable to produce more than 26 Million
to our customers, our sales force strives to listen to them; to bags per annum. We started import of BSW bag plant
know them better, to understand their needs and to address
machineries on 18 April 2013 and on 14 July 2014 the plant
their concerns with a valuable offer and differentiated
commenced its commercial production. From then the plant
customer experience.
is not only alleviating us to have comparative advantages by
reducing backward linkages but also precluding us from any
Information and Technology
unfavorable price fluctuation in packaging industry.
No company today can survive in isolation, nor can it work
without the use of Information Technology. Considering IT Personnel
as lifeblood of our Company, we are ripping out the benefit
of modern information and communication technologies Premier Cement believes human resource as the most
into our business practice by hiring IT literate workforce valuable resource for any entity indifferent to its size. The
and training the existing employees to the farthest possible Company always endeavors to provide an environment for
extent. Our strong IT department strives tirelessly to ensure continuous innovation and improvement of its personnel
continuity in business process and communication. All the by rewarding for their dedicated efforts in achieving
functional units of the Company use the Enterprise Resource Company’s goal. We think whatever we achieved from
Planning (ERP) system software which enables integration where we started our journey long back, is the result
among the departments with proper management and of our people’s efforts. So, we consistently provide our
assured storage system of information. And for real time people excellent opportunities for learning right from the
monitoring of entire operation, both of our office and stage of recruitment to workplace. We attract, groom
factory premises are under constant surveillance through and retain talent to spearhead our growth strategies. Our
close circuit cameras that are administered from the people are our priority; we empower them to excel and
corporate office. develop to the full extent of their potential. We ensure
that our policies elevate and enrich the lives of our people
Location and Advantage and make our bond with them stronger. At present our
One of the key ingredients of business success in such Company has more than 1500 employees and workers
a logistics based industry that we are in is ‘location’. in total, of which around 300 employees are working at
Our plants’ locations hence conform with, and are part our corporate and registered office. The rest including
of our overall corporate strategy. Our factory is located both casual and permanent employees working districts
at Muketpur, Munshiganj and our associate Company wise and at our Factory premises. We do possess a long
is located at Issa Nagar, Karnafuly, Chittagong. These term sustaining policy to nurture the human potentials in
locations alleviate us to achieve greater cost advantage by our workplace by retaining and grooming them across all
means of adequate access to customers, transportation, levels of the Company. Our management also devoted to
materials and so on. At the same time, 100% geographical account potentiality, performance and cost associated to
coverage through 11 warehouses at different strategic nurture human resources. As a result we have been initiated
locations in the country fostered us to ensure effective time an HR accounting process that applies to the entire HR
management and to maximize opportunity while minimizing management of our business. 21

AnnuAL RePoRT 2014 - 2015

 Chairman’s & Directors’ profile
Mr. Mohammad Mustafa Haider
Chairman, Premier Cement Mills Limited

Mr. Haider is the successor of Md. Abul Kalam, a great legend of 21st century’s
domestic business field and the founder Managing Director of T. K. Group of Industries.
Mr. Haider completed Bachelors of Science in Business Studies with an emphasis in
Finance from the University of Southern California, Marshall School of Business, USA
in May 2005. Since his return to Bangladesh in July 2005, he has been involved in the
sales and marketing of Premier Cement Mills Limited, consumer products of T. K. Group
of Industries, primarily - Pusti Soybean Oil, Pusti Ata Maida and Pusti Full Cream Milk
Powder. On January 31, 2010 Mr. Mohammad Mustafa Haider was appointed to the
Board as a Chairman. Under his excellent guidance the performance relating to sales
and collection of Premier Cement increases significantly.
Concurrently Mr. Haider serves as the chairman of Roknoor Navigation Limited, M R F
Fashion Ltd. as well as Managing Director of T. K. Shares & Securities Limited, Samuda
Chemical Complex Limited, Premier Power Generation Limited, Samuda Power Limited,
Samuda Peroxide Ltd., Samuda Real Estate Ltd. and Genweb2 Limited. He is also
holding Directorship responsibilities in Saif Shipbuilding & Engineering (Pvt.) Ltd., Asia
Insurance Limited, Elahi Noor Tea Co. Ltd., Hafsa Nazir Industries Complex Ltd., Premier
Assets Ltd., Super knitting & Dying Mills Ltd., Ali Tannery Ltd., T.K. Shipyard Limited and
Modern Power Limited.

Mr. Mohammed Amirul Haque

Managing Director, Premier Cement Mills Limited

An eminent industrialist, Mr. Mohammed Amirul Haque was the promoter and founder
Managing Director of the Company. A visionary business personality and a man of
wisdom, Mr. Mohammed Amirul Haque is currently serving as the Managing Director of
the Company. He is a Post Graduate in Business and a Fellow Member of The Institute
of Petroleum, England.
Mr. Haque is a world class entrepreneur and an elite businessman in Bangladesh. He
has involved himself into and is guiding through various businesses in different sectors;
such as Trading and Shipping, Agriculture & Fishing, Industrial Venture, Real Estate etc.
for last three decades.
A business leader of proven perspicacity and a significant contributor to the national
exchequer, Mr. Mohammed Amirul Haque is a former Director of Federation of
Bangladesh Chambers of Commerce and Industry (FBCCI), the apex trade body of the
country. He was also selected as CIP by the Government of the Peoples Republic of
Bangladesh consecutively for the year 2008 and 2009.

22

PReMIeR CeMenT MILLS LIMITed

Mr. Md. Jahangir Alam Mr. Md. Alamgir Kabir Mr. Mohammed Ershadul Hoque
Director, Premier Cement Mills Limited Director, Premier Cement Mills Limited Director, Premier Cement Mills Limited

On October 14, 2001 Mr. Md. Jahangir Mr. Md. Alamgir Kabir was appointed Mr. Mohammed Ershadul Hoque was
Alam was co-opted to the Board as a to the Board on October 14, 2001 as a appointed to the Board on November
Director. He completed his graduation Director. Mr. Kabir completed his Masters 20, 2004 as a Director. Mr. Hoque is the
in Commerce form Government College degree in Business Administration. He successor of Late Mohammed Nurul
of Commerce, Chittagong. A promising involved himself in various manufacturing Haque. He completed his Bachelors and
industrialist Mr. Alam embarked several industries especially in cement industry Masters Degree in Computer Science
industrial undertakings during his 30 years during his 21 years of business life. and Telecommunication from University
of business life. He is also running few trading houses, of Texas at Dallas, Texas, U.S.A. in 2004.
Mr. Alam started his magnificent journey in engaged in trading of cement and other Since his return to Bangladesh in 2004, he
his business career through establishing a construction materials. has directly involved with the day to day
business house named Jahangir & Others Mr. Kabir currently serves as the factory operations of Premier Cement.
in 1987 which subsequently incorporated Additional Managing Director of M. I. Mr. Hoque is holding Directorship
as Jahangir & Others Limited in 2003. Cement Factory Limited and Director of responsibilities in Saif Shipbuilding
Subsequently, he diversified his business Crown Power Generation Limited, GPH & Engineering (Pvt.) Ltd., N H Exim
portfolio by investing in other different Ispat Limited, GPH Power Generation and Services Limited, Premier Power
areas such as cement, steel re-rolling and Ltd., Jahangir & Others Limited, Generation Limited and National Cement
insurance. Chittagong Capital Ltd. National Cement Mills Limited.
Mr. Alam currently serves as the Mills Ltd., Indo Steel Re-rolling Ind.
Chairman of M. I. Cement Factory Ltd., Premier Power Generation Limited,
Limited, Crown Power Generation Crown Polymer Bagging Ltd., Crown
Limited, Crown Polymer Bagging Ltd., Transportation & Logistics Ltd. and Crown
Crown Transportation & Logistics Ltd., Mariners Ltd.
Crown Mariners Ltd. as well as Managing
Director of GPH Ispat Limited, GPH Power
Generation Ltd., Indo Steel Re-Rerolling
Ind. Ltd., Jahangir & Others Limited and
Chittagong Capital Limited. He is holding
Directorship in Premier Power Generation
Limited, National Cement Mills Ltd. and
Asia Insurance Limited as well. Mr. Alam
is also actively involved with different
social and charitable organizations as a
philanthropist.
23

AnnuAL RePoRT 2014 - 2015

 Chairman’s & Directors’ profile
Profile of the Independent Directors

Mr. Rafiq Ahmad, FCMA

Mr. Rafiq Ahmad is the senior-most Cost & Management Accountant in the country.
After graduation in 1955 from Govt. College of Commerce, Chittagong he took up
professional education in Cost & Management Accounting. He qualified from The
Pakistan Institute of Industrial Accountants (now ICMAP) in 1963; he was the first
person to qualify from the then East Pakistan. He also qualified from The Institute of
Cost & Works Accountants (now CIMA) London in 1970. He was one of the two Fellow
Members of ICMA at the time of Liberation of Bangladesh and was one of the founding
members of ICMA Bangladesh. He was the President of ICMAB for two terms(in 1998
and 2002) and represented the Institute in many international conferences, seminars
and meetings which included ISAR, United Nations, Geneva; World Congress of
Accountants, Hong Kong; Confederation of Asia & Pacific Accountants conference,
Tokyo and Hong Kong; South Asian Federation of Accountants conferences at New
Delhi, Kolkata, Colombo, Katmandu and Dhaka. He presented keynote papers at many
national and international conferences and seminars.
In his long service career at home and abroad he had the opportunity of working with
eminent professionals and corporate heads of different nationalities such as British,
American, German, Belgian, Swiss, and Arabs in addition to Bangladesh nationals in
manufacturing industries, Public Sector Corporations, Oil sector, Heavy machineries and
professional firms.
He has in his credit more than 58 years of experience with various National and
Multinational organizations (mostly of European origin) at home and abroad such as
Chittagong Cement, Aramit Cement, S Alam Group, National Oil Corporation, Libya,
Carew & Company Ltd, Sugar Mills Corporation etc. He worked with Premier Cement
Mills Limited actively in the age of its formation from November 01, 2001 till December
31, 2012 and later he was co-opted as an independent director of the Board.

Mr. Tariq Ahmed

Mr. Tariq Ahmed received his Masters degree from Dhaka University in 1977 and
immediately joined Shaw Wallace Bangladesh Ltd. in their Tea Plantations. He
then joined Lever Brothers Bangladesh Ltd. (now Unilever Bangladesh Ltd.) as a
Management Trainee in 1980. By the year 1986, he was the Manager, Exports of Lever’s
International Trading and Marketing department. And by 1997, he was the Head of Food
Marketing in the same organization. For the next two years, Mr. Tariq worked as the
HR Manager of the company. During his tenure with Unilever, he attended numerous
international trainings including a one year stint at Unilever Foods in UK in 1983.
He joined T. K. Group of Industries as the Director, Operations in 1999. He has with him 34
years of management experience with exposures in both international and local businesses.
Mr. Tariq Ahmed has been co-opted as Independent Director of Premier Cement Mills
Limited in place of the company’s former Independent Director, Mr. Mahbubul Alam;
who had resigned from the post for his personal reasons. The appointment of new
Independent Director along with the re-appointment of Directors retired by rotation
were both duly confirmed and approved by the shareholders in the 12th Annual General
Meeting (AGM) of the Company held on 27th December 2014 at Chittagong Club, SS
Khaled Road, Lalkhan Bazar, Chittagong.
The Board of Directors complied the provisions regarding Chief Financial Officer,
Internal Auditor and Company Secretary according to rule 2 of Corporate Governance
Guidelines. The declaration of CFO and CEO to the board as to Financial Statements
and legitimacy of all business transactions is presented as Annexure IV.
24

PReMIeR CeMenT MILLS LIMITed

 25

Annual Report 2014 - 2015

 Key personnel

Name Mohammed Amirul Mohammed Ershadul Md. Shafiqul Islam Zobaer Alam
Haque Hoque Talukder

Designation Managing Director Director - Operations Chief Financial Officer gM- Commercial

Post Graduate in Masters degree in B. Com (Hons), MBA (Management)

Business and a Computer Science and M. Com (du), FCMA
Education Fellow Member of the Telecommunication
Qualification Institute of Petroleum, from university of
england Texas at dallas, Texas,
u.S.A. in 2004

Date of Joining in
14-Oct-01 20-Nov-04 1-Dec-10 01-Jan-2005
the Company
Experience
MANAgEMENT TEAM

♦  A visionary world ♦ Since his return ♦ Fellow Member of ♦ More than 15 years
class entrepreneur to Bangladesh the Institute of Cost experience in
and an elite in 2004, he has and Management Shipping, Logistics
businessman who directly involved Accountants of & Commercial
embarked and with the day to day Bangladesh.
involved himself factory operation of ♦ Working with PCML
into various Premier Cement. ♦ More than 30 since January 2005.
businesses such as years experience
Trading & Shipping, in various national
Agriculture and and Multi- national
Fishing, Real estate organization
etc for the last such as Glaxo
three decades. Bangladesh
Ltd, Jamuna oil
Company Ltd,
Singer Bangladesh
Ltd. Chittagong
Stock exchange
Ltd., BASF
Bangladesh Ltd.,
and Banglalion
Communications
Limited

26

PReMIeR CeMenT MILLS LIMITed

Mohammed Khurshed Kazi Md. Shafiqur Commander (Rtd) Saradhindu Bikash Mohammed Mahbubur
Alam Rahman S M Rezaul Karim, Barua Rahman
PSC, SNCC

Chief Marketing Head of Quality

Company Secretary Chief Co-ordinator Head of Production
Officer Control

B.S.S. (Hons), B. Com. (Hons), M. Com. MBA diploma BSc. and MBA
M.S.S (du) CA (Inter) (Mechanical engr.)

1-Aug-03 16-Nov-01 1-Mar-10 3-Nov-08 18-Dec-08

OperatIOnal teaM

♦ More than 17 ♦ More than 15 ♦ More than 30 years ♦ More than 45 ♦ More than 15
years experience years experience experience in navy years experience years experience
in various national in different and Cement sector. in different in different
and Multi-national manufacturing manufacturing manufacturing
Cement Industries companies of T K ♦ Working with PCML Companies with 30 Companies with 12
such as Holcim Group, SA Group since March 2010. years experience in years experience in
Bangladesh Ltd., etc. with 12 years Cement Industry. Cement Industries
Hyundi Cement experience in such as Holcim
(Bd) Ltd. etc. Cement Industries. ♦ Working with PCML Bangladesh Ltd.
since 2008.
♦ Working with PCML ♦ Working with PCML ♦ Working with PCML
since 2003. since inception. since 2008.

27

AnnuAL RePoRT 2014 - 2015

 Message from the Chairman
Dear Shareholder,
Assalamu Alaikum Wa-Rahmatullah
My heartfelt welcome to you all in the 13th Annual
General Meeting of Premier Cement Mills Limited
for the year ended 30 June 2015.
Premier Cement Mills Limited is proud
to have its decade long rich history
and varied experience in cement
industry. The company has grown
from its foundations to a workforce of
more than 1,500 employees working
diligently throughout the country and
continuously enhancing our product,
broadening our market reach, and
offering a more quality output to both
national and international customers.
Honorable Shareholders, you might know that, the
Global economy mostly economies of developing
nations witnessed another declining growth trend
as a result of the various challenges faced to go
through their transition period. Also the operating
environment for business in South Asia region
continued to be tougher during the 2014-2015
financial year due to many prolonged political and
economical disruptions.

“The ‘Road’ to success

is not easy to navigate.
Because success never
measured by how much
distance we have covered Figure: Growth forecasts.
Source: Global Economic Prospects (June, 15),WB
so far but how many But by the Grace of Allah, it is my immense

different ‘Roads’ have pleasure to report you that, our Company has
attained considerable financial results albeit the
been created by us.” existence of such unfavorable and unavoidable
conditions. We consider the outcomes of this year
as one of our best ever result for the Company in
such challenging circumstances. That resistance
Mohammad Mustafa Haider and continuous performance of our Company
28 Chairman

PReMIeR CeMenT MILLS LIMITed

was made possible through the guidance of the sponsors/ four substitutive well functioned production units are
board of directors as well as relentless dedications of our always ready to meet such challenges in future through
employees. uncompromising quality at an affordable cost.
Tremendous efforts of our workforces have achieved the Business, to be meaningful and truly profitable, should
largest volume of sales in our history and 3rd highest result in happiness for all concerned. Our personnel
level of Net profit in the current year. Our results reflected are thus extensively trained as well as motivated to
the skillful execution of our business plans, which stress produce such, a beneficent entity for all in the society.
increasing our national and international customer base In that concern we prioritize health, safety, quality and
while keeping a tight grip on costs and assets. As a result, the environmental preservation are among the most
our company is now well-positioned to earn solid revenue important concerns for us and we follow strict regimes and
in upcoming years even in a softer socio-economic guidelines for continuous improvement in these aspects.
progress. This year our company has reported BDT. 8,098 Finally I am expressing my heartiest thanks to the fellow
Million sales compared to BDT. 7,539 Million of previous BOD members and company’s human resources for their
year. Though Company’s revenue has increased by 7.42% dedication and contribution. I also take this opportunity to
over the year but its Net profit has reduced by almost thank our shareholders for their continued support towards
19.68% and figured to BDT. 408 Million only. us and for our business. Since our historic listing on the
Demand of our global customer base remains prosperous exchanges, we have worked on their behalf to build and
this year and that amounted highest of Premier Cement’s lead a company that capitalizes on opportunities to grow.
history to a net export of BDT. 246 Million, which is A company that exhibits the financial strength to weather
exaggeratedly higher than BDT. 94 Million of previous year. both good and challenging market conditions and a
Whereas nationwide sale increased by almost 5.5% and business that operates with only the highest standards of
totaled to BDT. 7,852 Million. Despite having increased integrity and excellence to be a more meaningful entity.
outcomes in both local and export revenues (5.5% and
161.70% respectively) our profit has lagged comparatively. With best wishes to you all,
This wayward behavior was the result of the unfavorable
stances in both economic and political ground. Because
throughout the year we had to subsidize heavily in our
logistics and distribution expenses as well as in overall
supply chain activities. And that eventually shrunk the
operational profit for the year under review.
Nevertheless, our structured policies and prudent MoHAMMAD
HAMMAD Mus
MusTAFA
TAFA H
HAIDeR
strategies has been ensured us a firm and ever-growing
Chairman
market position in both home and abroad. Therefore
simultaneously holding that growth prospect of market
share, we are now concentrating more on attaining overall
operational efficiency and adopting more cost minimization
strategies to have a comparative edge over the rivals.
Furthermore we believe that, the critical factor for
achieving sustainable growth in economy depends on
effective participation of all the sectors. And it is a matter
of pleasure that, the sector we are in is contributing
increasingly in national economy over the years. According
to Bangladesh Bureau of Statistics, correspondingly
with different sectors, this year Construction sector has
contributed 8.63 percent of total GDP compared to 8.08
percent in the previous year. Other factors like allocation in
Annual Development Programme of our budget, national
cement consumption per capita, national infrastructures
development rate etc have also been positing an
optimistic outlook over the years. Therefore the sector can
obtrusively expect more and steady demand of cement, an
important product of construction materials in upcoming
years. And in response to this growth phenomenon our
29

AnnuAL RePoRT 2014 - 2015

 Directors’ Report
Dear Shareholder,
The Board of Directors of Premier Cement Mills Limited Staying away from risks
welcomes you all in its 13th Annual General Meeting.
According to the provisions of Section 184-186 of
and uncertainties is just
the Companies Act 1994 and notification No. SEC/
CMRRCD/2006-158/134/Admin/44 dated 07 August 2012
‘Salvation’; but learning how
of the Bangladesh Securities and Exchange Commission,
It is a pleasure of the Board to place herewith the
to manage them is the only
Directors’ Report and Auditors’ Report together with the ‘Solution’ for us. Because we
audited financial statements of the Company for the year
ended June 30, 2015. know avoiding difficulties
Macro circumstances means nothing but embracing
After addressing the legacies of the global financial crisis, the ordinariness and merely
ranging from debt overhangs to high unemployment,
the world economy had moved favorably as a result of forgoing the most precious
adopting effective program in Eurozone and financial
austerity resulting from fiscal cliff. At the same time the
destination in business.
upward pressure of sovereign debt crisis in Eurozone
has fairly appeased. For meeting up the debt crisis,
the comparatively small economies have been able to
receive the long term sovereign debt. And the economic
activities of the developing and emerging countries have
also gathered pace recently. Considering the South Asian
region, China and India are contributing the largest global
output volume with the help of their strong infrastructural
and adequate expertise supports. Combining these robust
economic growths, the United Nation forecasts that the
economic growth in South Asia as a whole is aiming to rise
up from an estimated 4.9% in FY2014 to 5.4% in FY2015
and will approach 5.7% in FY2016. Moreover, with the
international oil prices declining, the inflation pressure has
come to an ease across the region, which supports further
to accelerate economic outlook for the upcoming periods.

Domestic economic scenario

Economy of Bangladesh is not getting its desired
momentum as it continuously facing challenges from
different aspects in every year. Turmoil at political
ground, plunges in investments as well as inflationary
pressure became the most common constraints in overall
economic progress of the country. But albeit facing such
challenges, being the 35th largest economy in the world
on purchasing power parity basis, our country is expected
to have upper middle class status by 2021. The IMF has
projected that Bangladesh will be the second in the list of
highest growth countries in the world in FY2019 with 7%
growth rate. While the recent data showed an increase in
provisional GDP of 6.51 percent according to Bangladesh
Bureau of Statistics; consecutively the rate of poverty
has remarkably declined to 24 percent recently from Mohammed Amirul Haque
30 Managing Director

PReMIeR CeMenT MILLS LIMITed

31.5 percent estimated in 2010, based on the Household Industry overview
Income and Expenditure Survey (HIES). And in accordance
with these GDP growth as well as reduction in poverty Back in 1960s, almost 95 percent of total cement
incidence, the per capita income of the country already consumption was being imported from different countries
reached to $1,314 in FY 2015 compared to $1,190 and like Indonesia, Japan, Indonesia, South Korea and China.
$1,044 in FY 2014 and 2013 respectively. Our foreign But currently this industry has become fully self-sufficient
currency reserve also remarkably increased and set the by its local production, moreover every month on an
record to an amount of more than $ 25 billion at the end of average 15,000-20,000 MT of cement is being exported by
this reporting period. With the view of such outperforms, the industry. The industry is now one of the promising and
recently WB and ADB have projected the GDP rise to 6.3 rapidly growing industries in construction sector which has
and 6.4 percent respectively for upcoming year. In their been transformed from import reliant to export oriented in
assumptions, this projected growth will mainly be driven recent years.
by stronger domestic demand resulting from increased The supply side of this capital and energy intensive
public investment in infrastructure, some revival in privateindustry has more than 30 active players including both
investment activities; and domestic consumption growth local and multinationals, created a domestic market of
resulted from remittance recovery and increase in per more than 18 million metric tons a year. Many of these
capita income level. cement factories are fairly small as 81 percent of total
market share is held by top ten manufacturers.
Companies with financial supremacy and
GDP GROWTH RATES AND PROJEC TIONS AT A GLANCE technological acumen which have adopted
good marketing strategies and country wide
distribution channels are the best performers in
2016-17 this industry. At present the demand side of the
IMF
2015-16
market is mainly dominated by Government’s
infrastructure development projects, industrial
2014-15 constructions, real estate companies and
ADB independent home builders.
2013-14
2012-13 (P)
DOMESTIC CEMENT CONSUMPTION OF
WB BANGLADESH

BBS

0 1 2 3 4 5 6 7 8
BBS WB ADB IMF
2012-13 6.01 6.00 5.80 6.07
2013-14 6.06 5.40 6.10 6.10
2014-15 6.51 5.60 6.50 6.31
2015-16 6.30 6.70 6.76
2016-17 (P) 6.70 7.00
Source: Respective Agency (P): Projection

Apparently, despite various obstacles, the way our

economy is progressing is praiseworthy. Our economic
insusceptibility of many misfortunes have confided us to 59% Individual Home Makers
get rid of our current underneath presence of 7 percent
GDP growth trap; so that our nation can attain its most 30% Governments Developments
desirable status of upper-middle income country in no time.
11% Real Estate Developers and Contractors
31

AnnuAL RePoRT 2014 - 2015

 Directors’ Report
And according to Bangladesh Cement Manufacturers a consistently rising GDP forecast, demand for cement is
Association (BCMA), out of total production, 80% set to increase further in the coming years.
cement is consumed in Dhaka & Chittagong division
and the rest in other divisions. Due to rapid pace of State of the Company’s affairs
urbanization, industrialization, large-scale infrastructural
and Governmental development projects as well as Company’s Subsidiary, Premier Power Generation
construction of various commercial and residential Limited, was incorporated on September 07, 2006 with
buildings, demand for cement has markedly increased and an installed capacity of 5.34 MW run by Natural Gas to
expected to be continued in future. supply uninterrupted power solely to its parent Company.
And in 2010, the Company acquired 40% shares of
Industry development & potentials National Cement Mills Limited (the Associate), the factory
of which is situated at Issa Nagar, Karnafully, Chittagong.
Historical data has been showing a very optimistic and National Cement Mills Limited was incorporated on 10th
positive growth in Cement industry. As an important part September 1996 as a public limited company, having a
of construction sector, this industry is continuing to grow yearly production capacity of 420,000 MT. Initially, NCML
by an annual average of 20-25 percent which is mainly could not start its production due to lack of necessary
driven by high spending on infrastructure projects and the infrastructures. After acquisition of its shares, necessary
increasing demand for housing units. Besides growing BMRE were made and production was started from
individual demand, the government of Bangladesh planned October 2011.
to transform the country to an upper-middle income
country by 2021 and that actually portrays greater Annual In the year ended 30 June 2015, satisfactory performance
Development Program (ADP) expenditure in near future. from the Company’s subsidiary and associate can be seen
At present around 30% of the total cement produced in the financials. For instance this year revenue of PPGL

locally is consumed by the Governmental projects through amounted to 92 million bdt., which generated a profit of
ADP. And it is growing at an average annual rate of 24% almost 50 million bdt. on the other hand, NCML’s sales
over the last 5 years. Furthermore, future governmental revenue stood at BDT 965 million and Net Profit after Tax
investment in large scales like Padma Bridge and Dhaka amounted to BDT 5.03 million followed by 34% and 8%
City Elevated Expressway construction has also been increase respectively.
exerting future massive demands for Cement. To capitalize In October 2012 the Company got BSEC consent
on this prospect of growth, some companies already regarding public issue and in the following year the
taken initiatives to expand their production capacity Company got listed with Dhaka & Chittagong Stock
which added an additional 10.5 million MT of cement in Exchanges by floating 1.20 crore ordinary shares of Tk. 10
the supply side of the market in recent years. Currently, each.
the demand for cement in our country stands at 17.5Mn
Mt against production capacity of 28MnMt. And industry Operational review
average capacity utilization stands at 75%. Therefore the
industry holds a very optimistic view in terms of volume, Over years, our spirit and experience turned every
revenue and employment generation in future. And above adversity into an opportunity to make Premier Cement a
all, demand of cement as well as other construction better and more efficient Company day by day. Our huge
32 materials are positively correlated to GDP growth; and with investment in plants and in well equipped laboratory also

PReMIeR CeMenT MILLS LIMITed

helped us to attain a supreme position with an excellent Standalone financial performance
product quality. Our whole operation is furnished with:
We believe Premier Cement Mills Limited could have
• a 5.34 MW German origin Gas Based Power achieved greater sales revenue growth this year. But it is
Generation Plant, unfortunate that the Socio-economic uncertainties as well as
• 6 Ball Mills having 9,400 total MT capacity per day, slackness of the industry have decelerated our growth. But
• 7 Roto-Packers and optimistically despite many obstacles, we have achieved a
positive outcome in terms of sales volume from standalone
• a well established Bag Plant having capacity of more point of view and our strong financials indicate more well-off
than 26 million bag per annum. position in our current business operation. Comparative
standalone sales performance and the separated figures of
our proceeds can be found in the following table:
segment wise sales performance

Aggregate Sales
Year Local sales (MT) Export (MT) Growth %
Revenue (Tk.)
2009-2010 306,695.65 29,270.75 1,862,271,084 36%
2010-2011 566,368.45 37,140.00 3,428,083,698 84%
2011-2012 690,721.00 21,520.00 4,193,065,049 22%
2012-2013 917,534.00 21,596.00 6,037,165,868 44%
2013-2014 967,911.00 16,500.00 6,819,174,802 13%
2014-2015 1,063,548.00 42,015.00 7,133,420,289 5%
After expanding our production facility and becoming one
In the year of 2012-2013 and 2010-2011, significant changes
of the leaders based on production capacity, our core
took place in sales volume, net profit and other operational
concern is now to become one of the top three most
indicators which are mainly due to the installation of two (3rd
profitable cement manufacturing companies by improving
and 4th) new production units. After subsequent installation
the entire operation activities day by day. Along with
of 4th unit in FY 2012-2013, a notable enhancement in total
maintaining an effective production process, continuous
installed capacity was achieved, which stood at 2.4 million
cost-cutting targets and stricter scrutiny measures
MT. Correspondingly the demand for our products continues
were implemented in our operation. Our manufacturing
to grow as we are committed to deliver the best in quality
excellence, supply chain efficiency and effective
among all the producers in the country. As a result our capacity
promotional activities have resulted in the creation of a
utilization rate as well as brand loyalty of our products has
powerful brand image for the Company. Concurrently
also been increasing day by day. The following graph depicts
Company’s know-how sharing and supporting culture
company’s other operating results consecutively for five years.
has also drawn
favorable outcomes
from our associate and COMPARATIVE ANALYSIS OF FIVE YEARS’ OPERATING RESULTS
subsidiary. Furthermore
our management also 8000
seamlessly working 2014-2015
on identifying and 7000
2013-2014
mitigating different 6000
untoward issues within 2012-2013
the Company such 5000
as communicative lag 4000 2011-2012
between departments,
problems with customer 3000 2010-2011
relations, operating
2000
inefficiency, lack of
profitability issues, and 1000
other factors that can
0
affect the stability of the Profit After Income Tax Gross Profit Cost of sales Revenue
business.
33

AnnuAL RePoRT 2014 - 2015

 Directors’ Report
Though our contingency plans of imports and storage facility is capable to restrain any unfavorable outcomes in our
cost of production but unfortunately Company’s Gross Profit has shrunk despite of steady increase in our sales. The
downturn occurred mainly because of prolongation of political and economical volatility. We had to subsidize severely for
months in our supply chain and logistics activities which further led to a slight fall in the Net Profit for the current year.

Consolidated financial performance

Comparative 5 years operating and financial data
Details of 5 years Consolidated Statement of Comprehensive Income and Statement of Financial Position are presented
in Shareholders’ corner.

Deviations and their explanation of Operating and Financial Results

Progressive outcomes in terms of sales and capacity utilization are seen in our year end results. This year the Company
has attained its highest revenue ever in its history, which stood at BDT 8,098 million with a 7.42 percent growth from BDT
7,539 million in the former year. Although Net profit amount has slightly decrease this year due to the surrounding effects
of business, but strong grip of the management over the cost related to unsystematic risk can be seen in the company’s’
financials.

significant deviations from Last Year’s consolidated operating and Financial Results

Particulars 30-Jun-14 30-Jun-15 Growth %

Revenue 7,539,574,982 8,098,701,152 7.42
Gross Profit 1,295,934,121 1,238,937,792 (4.40)
Profit from Operation 1,106,101,327 908,022,098 (17.91)
Profit After Income Tax 509,102,218 603,917,604 (19.68)

Particulars 30-Jun-14 30-Jun-15 Growth %

Total Asset 9,803,419,796 10,089,329,608 2.92
Total non-current assets 5,945,057,531 5,929,813,404 (0.26)
Total Current Assets 3,858,362,266 4,159,516,204 7.81
Total liability 6,498,143,143 6,691,485,353 2.98
Total non-current liabilities 1,456,982,360 1,888,645,997 29.63
Total current liability 5,041,160,783 4,802,839,355 (4.73)

Total equity 3,305,276,653 3,397,844,255 2.90

During the year total assets has increased by 2.92 percent mainly due to a slight addition in Company’s current assets.
Also Company’s total non-current liability increases by 29.63 percent as the Company incurred both Short term and Long
term loans for financing purposes in the year. Moreover this year Company strived to keep the actual amount of work-in
progress as low as possible, so as to reduce the amount of capital tied up in the production or manufacturing process
and to maintain highest standard of its products by reducing the risk of obsolescence. Thus significant increasing in WIP
capitalization can be found in the statement of company’s financial position. On the other hand, during the financial year
we had to avail additional long term loan facility for our Bag Plant machineries, production machineries of 4th unit etc.
Therefore abrupt changes in the portion of long term loan can be seen in the yearly financial statements.

Deviation of Quarterly and Annual Financial Performance

Among the quarters, receivables and payables fluctuated considerably due to seasonal effect and frequency of business
transactions in the latter half of the financial year. And the Company incurred most of the administrative expenses related
34

PReMIeR CeMenT MILLS LIMITed

to utilities expenses, license renewal from different authorities and for vehicle maintenance during the fourth quarter
of the financial year under review. Increased finance cost and marketing expense are also responsible for quarterly
fluctuations in company’s statement of comprehensive income. Furthermore this year the Company suffered from
unfavorable outcomes from the exchange gain, as a result deterioration in the portion of other income/ (loss) can be seen
in between the Quarterly results of the Company Financials.
5 years’ performance indicators

Performance
Indicator Name 30-Jun-15 30-Jun-14 30-Jun-13 30-Jun-12 30-Jun-11
Measure

Current Ratio 0.87 0.77 0.75 0.68 0.98

Liquidity Ratio Quick Ratio 0.59 0.51 0.56 0.52 0.62
Cash Conversion Cycle (Days) 113.19 86.20 52.72 80.97 86.64
Inventory Turnover (Times) 5.30 6.03 7.94 6.13 6.18
Efficiency Accounts Receivable Turnover (Times) 5.82 5.70 6.06 6.43 7.00
Total Asset Turnover (Times) 0.80 0.77 0.76 0.65 0.83
Debt-to-Asset Ratio 0.66 0.66 0.62 0.66 0.50
Leverage Ratio
Debt-to-Equity Ratio 1.97 1.97 1.64 1.92 1.02
Return on Assets 4.05% 5.19% 5.88% 2.64% 7.91%
Profitability
Return on Equity 12.03% 15.40% 15.51% 7.72% 15.94%
Gross Profit Margin 15.29% 17.19% 17.98% 12.39% 18.54%
Others Pretax Profit Margin 5.32% 9.21% 11.85% 7.52% 12.39%
Net Profit Margin 5.04% 6.75% 7.78% 4.06% 9.52%

35

AnnuAL RePoRT 2014 - 2015

 Directors’ Report

36

PReMIeR CeMenT MILLS LIMITed

Risks and concerns registration of the land has already been completed. On the other
hand mutation of 3.20 acres of land is in process. In addition to
Sourcing cost that, the Company has applied for mutation of 0.72 acres land on
Cement industry is highly vulnerable to any volatility in the September 28, 2011 out of which mutation of 0.63 acres of land
sourcing cost of raw materials as significant amounts of has been completed.
clinker as well as other raw materials have to be imported IPO Fund Utilization
from different parts of the world as the country does not
has these resources. But along with strategic decisions According consent letter No. SEC/CI/IPO-164/2011/1800
of imports, our extensive storage capacity of Clinker and dated 13 December, 2012 issued by the Bangladesh
finished goods protect us from any unfavorable temporary Securities and Exchange Commission, we were not
fluctuation in sourcing cost of raw materials. allowed to utilize the IPO proceeds before submission of
the land rent receipts. Till date, we have not been able to
Overcapacity provide the said rent receipt. However, on November 18,
Although some major players are operating at 100% capacity 2013, Bangladesh Securities and Exchange Commission
but industry average capacity utilization stands at 75% for permitted us to utilize the IPO proceeds but we were
cement. Hence overcapacity in this industry is a matter of required to keep an FDR in a scheduled bank for an
concern as it significantly increases competition and price amount equivalent to the value of the lands for which
confrontation among the market players. Being well aware of mutation and rent receipt have not been submitted. The
this risk our company strives to explore new export potential rest of the IPO proceeds were utilized for repayment of LC
zones as well as local geographic areas for improving in value of our Machineries for 4th Production Unit.
sales. Also our best effort to ensure quality products as well Dividend
as ascendancy in customers reach will surely facilitate us to
gradually increase our capacity utilization rate. For the year ended on June 30, 2015, the Company
earned BDT 408 million as consolidated net profit after
Interest rate tax and has retained earnings of BDT 1,255 million. The
Several times throughout the tenure the Company has Board of Directors in its meeting dated 23 September
procured working capital loan with variable interest rate. 2015 recommended cash dividend of 20 percent, i.e. BDT
As it is assumed to have such credit facilities in future for 2 against BDT 10 per share for the year 2014-2015.
smooth business operation, thus the Company is highly Safety, Health and Environment issues
exposed to any fluctuations in interest rate. To minimize
this exposure, the Company will try to emphasize equity Creating safe and healthy work environment is a critical
based financing to reduce its future dependency on factor to the success of our business, and is perceived
borrowed fund. as one of the best ways to retain our staffs and maximize
productivity. So, Premier Cement takes all possible
Exchange rate measures to ensure that all its employees as well as
Volatility in exchange rate can obtrusively affect us as we communities within which it operates remain safe at
are involved in many cross-bordered transactions. Since all time. Company’s safety measures, continuous risk
we think proceeds from exports is must for the overall assessment policy ensured a healthy and hazard free
growth of our venture, hence conducting business beyond work environment for all employees in the workplace.
the border is an inevitable condition for us. But as far as Moreover we possess no tolerance in sacrificing our
exchange rate is in concern, every player in the industry community’s health issues as we all are part of the society.
involved in importing raw materials and relying partially on Environmental preservation is therefore one of the top
exports will equally be affected with any given fluctuation priorities on Company’s Safety, Health and Environment
in exchange rate. agendas. And Premier Cement is a certified company from
Going Concern the Department of Environment, Government of People’s
Republic of Bangladesh through abiding all the laws and
The company has adequate resources to continue its regulations exerted by the above mentioned authority.
operation for the foreseeable future, thus the Directors
are of the opinion that the Company is a going concern; Corporate Social Responsibilities and Sustainable Development
and Financial Statements are also prepared on a going Corporate social responsibility is a business philosophy
concern basis. that stresses the importance of keeping the best interests
Other concerns of the wider society in mind. Having goals and a vision
for the Company that go beyond products and profits
Unfortunately, there has been a dispute in ownership of a small definitely provides a warmer image of our business and
portion of our project land. But the honorable court has given where customers will be more eager to engage with. Our
verdict in favor of the Company for 0.38 acres of land and CSR programs aim to address the sustainability issues
37

AnnuAL RePoRT 2014 - 2015

 Directors’ Report
that are most relevant to our business and focus on where from his post on 24th November 2014 for personal reasons.
we can have the biggest impact. Thus Premier Cement It was also confirmed by the Board that, Mr. Tariq Ahmed will
regularly takes different initiatives to confront various social fill up the vacancy of Audit Committee and perform further
problems in order to make a better Bangladesh tomorrow. as a member of the Audit Committee. The appointment of
A brief report on our CSR initiatives and sustainable new Independent Director along with the re-appointment of
development initiatives is given afterwards of the report. Directors retired by rotation were both duly confirmed and

Other disclosures approved by the shareholders in the 12th Annual General

Meeting dated 27th December 2014
Related party transactions Remuneration of Directors
During the year the Company carried out a number of Mr. Mohammad Mustafa Haider and Mr. Mohammed
transactions with related parties in the normal course of business Ershadul Hoque, Directors of our Board of Directors are
on an arm’s length basis. Names of those related parties, nature working diligently and sincerely for the Company. Mr.
of those transactions and their value are shown in Note 27 of Mustafa Haider is looking after the Sales and Marketing
Consolidated Financial Statements. And no items of income and and Mr. Ershadul Hoque is responsible for overall
expense are to be presented as ‘extraordinary gain or loss’ in the operation. Each of them receives a yearly remuneration
financial statements for the current FY. of BDT 12,00,000. And none of other BOD members
Board composition including independent directors is receiving any
remuneration or benefits from the Company.
Currently Board of Directors of the Company consists
of 5 members including Managing Director. The Board Internal control and adequacy of Audit Committee
was pleased to co-opt 2 (two) additional Directors as Our Company has a well defined internal control system
independent Directors on April 30, 2013 for three years to support efficient business operations and statutory
tenure. Their appointments were duly approved in the 11th compliance. External Auditors carry out concurrent audit
Annual General Meeting held on December 17, 2013. of financials which adds the stability of the entire internal
Directors control systems. Suitable internal checks have been
built in to cover all monetary transactions with proper
As per Company Act 1994 and Article 140, 141, 142 & 143
delineation of authority, which provides transparency at
of the Articles of Association of the Company, one third of
every stage of operation.
the Directors retires by rotation in every ordinary general
meeting. Accordingly, the retiring Directors were Mr. Md. The Company has a strong system of budgetary control
Jahangir Alam and Mr. Mohammed Ershadul Hoque; which covers all aspects of operations, finance and capital
being eligible, offered themselves for being re-elected expenditure at a macro level by a monthly basis reporting
as Directors of the Company. The Board of Directors directly to top management. Financial performances and
recommends the retiring Directors to be re-elected. efficiency parameters are monitored on a daily basis and
actions are taken then and there. Currently, our Audit
Independent Director
Committee consists of the following Directors:
Mr. Tariq Ahmed has been co-opted as Independent Director
• Mr. Rafiq Ahmad, FCMA - Independent Director
on the BOD meeting dated 3rd December 2014 of Premier
Cement Mills Limited in place of the company’s former • Mr. Tarik Ahmed - Independent Director
Independent Director, Mr. Mahbubul Alam; who has resigned • Mr. Mohammed Ershadul Hoque - Director
38

PReMIeR CeMenT MILLS LIMITed

Audit Committee:
Audit Committee of the Company includes two independent Directors and one shareholder Director. All the members
of the Committee are financially literate. Mr. Rafiq Ahmad, FCMA was duly appointed by the Board as the chairman of
the Committee and the Company Secretary is authorized to act as the secretary of the Committee. The duties of Audit
Committee and their report on true and fairness of the Financial Statements are set out in Annexure II.

Member of Audit Committee

1. Mr. Rafiq Ahmad, FCMA Chairman of the Committee
2. Mr. Tarik Ahmed Member of the Committee
3. Mr. Mohammed Ershadul Hoque Member of the Committee

Statutory Auditors
M/s Hussain Farhad & Co., Chartered Accountants were appointed in the 12th Annual General Meeting to perform as
external auditors for the year 2014-2015. The Board of Directors recommends for re-appointing M/s Hussain Farhad &
Co. Chartered Accountants for the year 2015-2016 and to carry out their duties till the next AGM. The Audit Committee
ensured that, in current year, no service other than statutory audit was obtained from the said auditor. In compliance with
SEC Order No. SEC/CMRRCD/2006-159/Admin/02/09/ dated 30th May, 2006, the Company cannot appoint any firm of
Chartered Accountants as its statutory auditors for a consecutive period exceeding three years. Therefore, being eligible,
the Board of Director is recommending M/s Hussain Farhad & Co. Chartered Accountants as its statutory auditor for the
year 2015-2016.

Governance, Ethics and its compliance

Good governance and ethical conduct provide the foundation for everything we do at Premier Cement. They help us earn
trust, manage risks, foster sustainable growth, and build a resilient business. We aim to tackle challenging issues head
on, make our communications and processes simple, hold everyone accountable, and empower all our employees to do
what’s right. Our Code of Business Conduct as well as our internal ethics upkeeps and tailored training, helps employees
make ethical decisions. We believe continuous supervision in every business practice is the key to sustain in a leadership
role. Therefore our Company is directed, administered and complied with the set of laws, policies and procedures
exerted in Bangladesh Securities & Exchange Commission’s (BSEC) Notification No. SEC/ CMRRC-D/2006-158/134/
Admin/44 dated 7 August 2012, Company ACT 1994 and Listing Regulations 2015 by Dhaka Stock Exchange.
The Directors’ declaration, Shareholding pattern and CEO & CFO’s declaration to the board for the year ended 2015 are
appended as Annexure I, III and IV respectively. Further, the Corporate Governance Compliance Report and a Certificate
of Compliance required under the said Guidelines, as provided by A. K. Mazumdar & Associates is also annexed to the
latter part of the this report.
Acknowledgement
At the endnote, we would like to say that the Board is very thankful to our all employees, customers, dealers, suppliers,
lenders and other stakeholders. We appreciate all our employees and admire their untiring efforts for betterment of
company. And to you, our Shareholders, we are deeply grateful for the confidence and faith that you have always upon us.

For and on behalf of the

BOD of Premier Cement Mills Limited

Place: Dhaka Mohammed Amirul Haque

Dated: October 18, 2015 Managing Director

39

AnnuAL RePoRT 2014 - 2015

 Directors’ Declaration
Annexure i

In addition to the directors’ report, the directors are declaring following additional statements to the best of their knowledge
as complied and maintained for the current FY under review:
• Appropriate accounting policies have been followed in formulating the Financial Statements and Accounting estimates
are reasonable and prudent.
• Proper books of accounts as required by law have been maintained.
• The Financial Statements were prepared and presented in accordance with Bangladesh Accounting Standards (BAS) and
Bangladesh Financial Reporting Standards (BFRS).
• The Financial Statements prepared by the management of the Company present a true and fair view of Company’s state of
affairs, result of its operation, cash flows and changes in equity.
• The system of internal control is sound in design and has been effectively implemented and monitored.
• The entire business operation is being conducted in accordance with the laws, rules, regulations, agreements, guidelines
and standards governing in the country.
• All the judgments and decisions taken by management are reasonable and prudent.

The number of Board meetings and the attendance of the directors during the year 2014-2015 are as follows:

Date of Meeting
Meeting
Sl. Name of Directors Designation Nov 13, Dec 03, Jan 28, Apr 29, Jun 28, Attended/
Oct 28, 2014
2014 (2nd 2014 (3rd 2015 (4th 2015 (5th 2015 (6th held
(1st Meeting)
Meeting) Meeting) Meeting) Meeting) Meeting)

1 Mohammad Mustafa Haider Chairman √ √ √ √ √ √ 6-Jun

2 Mohammed Amirul Haque Md √ √ √ √ √ √ 6-Jun
3 Md. Jahangir Alam director √ √ √ √ √ √ 6-Jun
4 Md. Alamgir Kabir director √ √ √ √ √ √ 6-Jun
5 Mohammed ershadul Hoque director √ √ - √ √ √ 6-May
6 Rafiq Ahmad Id √ √ √ √ √ √ 6-Jun
7 Tariq Ahmed Id -  -  Appointed √ √ - 3-Feb
Resigned Resignation
8 Mahbubul Alam Former Id -  -  -  - 0/3
24.11.2014 accepted
9 Md. Shafiqul Islam Taluder CFo √ √ √ √ √ √ 6-Jun
10 Kazi Md. Shafiqur Rahman CS √ √ √ √ √ √ 6-Jun

40

PReMIeR CeMenT MILLS LIMITed

Audit Committee Report
Annexure ii

Dear Shareholder,
n behalf of the Audit Committee, I am pleased to present its report for the year ended 30 June 2015. During the year, the

O Audit Committee met four times and reviewed statutory reports, year-end results, key areas of judgment and complexity,
critical accounting policies, provisioning and any changes required in these areas or policies. In addition, the Audit Committee
reviewed the interim results announcement, which included the interim financial statements and the company’s interim management
results.
During the year, the Audit Committee opined that the internal control system including internal audits, financial and operational
controls, accounting systems for timely and appropriately recording of purchase and sales, receipts and payments, assets and
liabilities and the reporting structures are adequate and effective.
Audit committee also overseen the interim results and the audit outcomes with management and external auditor. It also reviewed the
point(s) raised by external auditors in their management letter and the responses of the management thereto.
The audit committee of Premier Cement currently comprises two independent directors and one director namely:

Mr. Rafiq Ahmad, FCMA Chairman of the Committee

Mr. Tarik Ahmed Member of the Committee
Mr. Mohammed Ershadul Hoque Member of the Committee

Report of the Committee during the year

Significant issues and judgments that were considered in respect of the 2014-2015 financial statements and auditing procedures were
as follows:

• The critical accounting policies, significant judgments and practices used by the Company are in compliance with required laws
and regulations and recommended by the Board. The audited Financial Statements of the Company together with consolidated
statements with its subsidiary and associate for the year ended 30 June 2015 represent fair and authentic view of the company’s
financials.
• Compliance of BAS and the disclosure of its financial information under BFRS have been maintained and the interim financial
statements are prudent and credible.
• The state of compliance with Corporate Governance and other regulations as per the requirements of Bangladesh Securities and
Exchange Commission (BSEC), Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) were ensured.
• The recurrent related party transactions entered into by the Company during 2014-2015 are observed and verified.
• The scope and extent of internal audit has been checked; and the adequacy of resources to maintain vigilant internal audit
process has confirmed and appropriately placed thereto.

The Audit Committee also recommends regarding the appointment of External Auditors, reviews their Expression of Interest and
auditing fees. In the year under review, the Committee assessed the ongoing effectiveness as well as quality of the external auditor
and audit process and recommended M/s Hussain Farhad & Co., Chartered Accountants, for re-appointment as the external auditor
of the Company for the year ending on 30 June 2016.

On behalf of the Committee

Rafiq Ahmad, FCMA

Chairman of Audit Committee

41

AnnuAL RePoRT 2014 - 2015

 Shareholding pattern
Annexure iii

The pattern of shareholding (along with name wise detail) of parent/subsidiary/ associate companies and other related parties,
Directors, Chief Executive Officer, Company Secretary, Chief Financial Officer, Head of Internal Auditor, and their spouse and
minor children, executives, shareholders holding 10% or more voting interest in the Company as at 30 June 2015 duly stated
in the following report.

Chairman/Managing Director/Director/CFO/CS/HoIA their spouses and minor children (name wise details) and
other related parties:

Nos. of Spouse or Minor

Particulars Position % %
shareholding Children

Mr. Mohammad Mustafa Haider Chairman 20,837,300 19.760 Nil -

Mr. Mohammed Amirul Haque MD 11,599,500 11.000 3,643,080 3.455
Mr. Rafiq Ahmed Independent Director - Nil Nil -
Mr. Tarik Ahmed Independent Director - Nil Nil -
Mr. Md. Jahangir Alam Director 11,425,313 10.835 Nil -
Mr. MD. Alamgir Kabir Director 4,416,562 4.188 Nil -
Mr. Mohammed Ershadul Hoque Director 2,113,500 2.004 Nil -
Mr. Md. Shafiqul Islam Talukder CFO - Nil Nil -
Kazi Md. Shafiqur Rahman CS 200 0.0002 Nil -
Mr. Md. Masuk Chowdhury HoIA - Nil Nil -

Parent/ Subsidiary/ Associated

- - - - -
Companies and related other party.

Shareholders holding ten percent (10%) or more voting interest in the Company (name wise details) other than Chairman/
Managing Director/ Director/ CFO/ CS/ HoIA

Nos. of Spouse or Minor

Particulars Position % %
shareholding Children

Mr. Hasnat MD. Abu Obida Sponsor Shareholder 23,362,500 22.155 Nil -

Executives (Top five salaried person other than CEO, CFO, CS,
Nil Nil Nil -
HoIA)

42

PReMIeR CeMenT MILLS LIMITed

 CEO and CFO’s Declaration
Annexure iv

The Board of Directors

Premier Cement Mills Limited

Subject: CEO and CFO’s Declaration to the Board

Dear Sirs,

Compliance with the condition no. 6 imposed by Bangladesh Securities and Exchange Commission’s Notification
No. SEC/CMRRCD/2006-158/134/Admin/44 dated 07 August 2012 issued under section 2CC of the Securities
and Exchange Ordinance, 1969.

We do hereby certify to the Board that:

i) We have reviewed the Financial Statements of the Company for the year ended 30 June, 2015 and that to
the best of our knowledge and belief,
a) These statements do not contain any materially untrue statement or omit any material fact or contain
statements that might be misleading;
b) These statements together present a true and fair view of the Company’s affairs and are in compliance with
existing accounting standards and applicable laws.
ii) There are, to the best of knowledge and belief, no transactions entered into by the Company during the year
which are fraudulent, illegal or violation of the Company’s code of conduct.

Sincerely yours,

Md. Shafiqul Islam Talukder Mr. Mohammed Amirul Haque

Chief Financial Officer Managing Director

43

AnnuAL RePoRT 2014 - 2015

 Governance and Compliance
Certificate of BAPLC
As per SEC Notification # SEC/CMRRCD/2006-161/324 dated on April 11, 2010; we hereby providing the Certificate
of Membership given by Bangladesh Association of Publicly Listed Companies (BAPLC) for the year 2014-2015:

44

PReMIeR CeMenT MILLS LIMITed

Report on Corporate Governance Compliance

Status of compliance with the conditions imposed by the Commission’s Notification No. SEC/CMRRCD/2006-158/134/Admin/44 dated 07
August 2012 issued under section 2CC of the Securities and Exchange Ordinance, 1969.
(Report under Condition No. 7.00)

Compliance Status
Condition (Put √ in the appropriate column) Remarks
Title
No. (If any)
Complied Not Complied
Board’s size: The number of the Board member shall not be less
1.1 √
than 5 (five) and more than 20 (twenty)
1.2 Independent Directors
1.2 (i) One fifth (1/5) of the total number of Directors. √
1.2 (ii) a) Does not hold any share or holds less than 1% of shares. √
Not connected with any sponsor/ Director/ shareholder who hold
1.2 (ii) b) 1% or more shares of the total paid-up shares on the basis of √
family relationship.
Does not have any other relationship, whether pecuniary or
1.2 (ii) c) otherwise, with the Company or its subsidiary/associated √
companies.
1.2 (ii) d) Not a member, Director or officer of any stock exchange. √
Not a shareholder, Director or officer of any member of stock
1.2 (ii) e) √
exchange or an intermediary of the capital market.
Not a partner or an executive or was not a partner or an executive
1.2 (ii) f) √
during the preceding 3 (three) years of any statutory audit firm.
Not be an independent Director in more than 3 (three) listed
1.2 (ii) g) √
companies.
Not been convicted by a court of competent jurisdiction as a
1.2 (ii) h) √
defaulter in payment of any loan to a bank or a NBFI.
Not been convicted for a criminal offense involving moral
1.2 (ii) i) √
turpitude.
Nominated by the Board of Directors and approved by the
1.2 (iii) √
shareholders in the AGM.
1.2 (iv) Not remain vacant for more than 90 (ninety) days. √
Board shall lay down a code of conduct of all Board members
1.2 (v) √
and annual compliance of the code to be recorded.
Tenure of office of an independent Director shall be for a period of
1.2 (vi) √
3 (three) years, which may be extended for 1 (one) term only.
1.3 Qualification of Independent Directors (ID)
1.3 (i) Knowledge of Independent Directors √
1.3 (iii) Background of Independent Directors √
1.3 (iii) Special cases for qualifications Not Required
1.4 Chairman of the Board and Chief Executive Officer
The position of Chairman of the Board and Chief Executive
√
Officer shall be filled by two different individuals.
1.5 Director’s Report to Shareholders
1.5 (i) Industry outlook and possible future development √
45

AnnuAL RePoRT 2014 - 2015

 Compliance Status
Condition (Put √ in the appropriate column) Remarks
Title
No. (If any)
Complied Not Complied
1.5 (ii) Segment-wise or product-wise performance √
1.5 (iii) Risks and concerns √
Discussion of Cost of Goods sold, Gross Profit Margin and Net
1.5 (iv) √
Profit Margin.
1.5 (v) Discussion on continuity of any Extra-Ordinary gain or loss. Not Applicable
1.5 (vi) Basis for related party transactions √
Utilization of proceeds from public issues, right issues and/or
1.5 (vii) √
through any others.
Explanation if the financial result deteriorates after the Company
1.5 (viii) Not Applicable
goes for IPO, RPO, Rights Offer, and Direct Listing.
Explanation about significant variance occurs between Quarterly
1.5 (ix) √
Financial performance and Annual Financial Statements.
1.5 (x) Remuneration to Directors including independent Directors. √
1.5 (xi) Fairness of Financial Statements. √
1.5 (xii) Maintenance of proper books of accounts. √
1.5 (xiii) Adoption of appropriate accounting policies and estimates. √
Followed IAS, BAS, IFRS and BFRS in preparation of Financial
1.5 (xiv) √
Statements.
1.5 (xv) Soundness of internal control system. √
1.5 (xvi) Segment-wise or product-wise performance. √
1.5 (xvii) Ability to continue as a going concern. √
1.5 (xviii) Significant deviation from the last year’s operating results √
1.5 (xix) Reason for not declared dividend Not Applicable
1.5 (xx) Number of Board meetings held during the year and attendance. √
1.5 (xxi) Pattern of shareholding. √
Parent/Subsidiary/Associated Companies and other related
1.5 (xxi) a) √
parties.
Directors, CEO, CS, CFO, HoIA and their spouses and minor
1.5 (xxi) b) √
children
1.5 (xxi) c) Executives √
1.5 (xxi) d) 10% or more voting interest √
1.5 (xxii) Appointment/re-appointment of Directors.
1.5 (xxii) a) Resume of the Directors √
1.5 (xxii) b) Expertise in specific functional areas √

Holding of Directorship and membership in Committee of the

1.5 (xxii) c) √
Board other than this Company.

Chief Financial Officer (CFO), Head of Internal Audit and

2
Company Secretary (CS)

2.1 Appointment of CFO, HoIA and CS √

46

PReMIeR CeMenT MILLS LIMITed

 Compliance Status
Condition (Put √ in the appropriate column) Remarks
Title
No. (If any)
Complied Not Complied
Attendance of CFO and CS at the meeting of the Board of
2.2 √
Directors.
3 Audit Committee
3 (i) Constitution of Audit Committee √
3 (ii) Assistance of the Audit Committee to the Board of Directors √
3 (iii) Responsibility of the Audit Committee √
3.1 Constitution of Audit Committee
3.1 (i) At least 3 (three) members √
3.1 (ii) Appointment of members of the Audit Committee √
3.1 (iii) Qualification of Audit Committee members √
3.1 (iv) Term of Service of Audit Committee Members √
3.1 (v) Secretary of the Audit Committee √
3.1 (vi) Quorum of the Audit Committee √
3.2 Chairman of the Audit Committee
3.2 (i) Board of Directors shall select the Chairman. √
Chairman of the Audit Committee shall remain present in the
3.2 (ii) √
AGM.
3.3 Role of Audit Committee
3.3 (i) Oversee the financial reporting process √
3.3 (ii) Monitor choice of accounting policies and principles √
3.3 (iii) Monitor internal control risk management process √
3.3 (iv) Oversee hiring and performance of external Auditors √
Review the annual Financial Statements before submission to the
3.3 (v) √
Board for approval
Review the quarterly and half yearly Financial Statements before
3.3 (vi) √
submission to the Board for approval.
3.3 (vii) Review of adequacy of internal audit Function. √
3.3 (viii) Review statement of significant related party transactions. √
Review management letters/ letter of internal control weakness
3.3 (ix) √
issued by statutory auditors.
Disclosures about the uses/ applications and funds raised by
3.3 (x) √
IPO/RPO/Right issue
3.4 Reporting of the Audit Committee
3.4.1 Reporting to the Board of Directors √
3.4.1 (i) Activities of Audit Committee √ No Such Incident Occurred
3.4.1 (ii) a) Conflict of interest √
3.4.1 (ii) b) Material defect in the internal control system √
3.4.1 (ii) c) Infringement of laws, rules and regulations √
3.4.1 (ii) d) Any other matter √
3.4.2 Reporting to the Authorities √ No Such Incident Occurred
47

AnnuAL RePoRT 2014 - 2015

 Compliance Status
Condition (Put √ in the appropriate column) Remarks
Title
No. (If any)
Complied Not Complied
3.5 Reporting to the Shareholders and General Investors √
4 Engagement of External/Statutory Auditors:
4 (i) Appraisal or valuation services or fairness options √
4 (ii) Financial information systems design and implementation √
4 (iii) Book–keeping √
4 (iv) Broker-dealer services √
4 (v) Actuarial services √
4 (vi) Internal audit services √
4 (vii) Services that the Audit Committee determines √
4 (viii) Audit firm shall not hold any share of the Company they audit. √
5 Subsidiary Company:
5 (i) Composition of the Board of Directors √
5 (ii) At least 1 (one) independent Director to the subsidiary Company √
5 (iii) Submission of Minutes to the holding Company. √
5 (iv) Review of Minutes by the holding Company √
5 (v) Review of Financial Statements by the holding Company √
6 Duties of Chief Executive Officer and Chief Financial Officer:
6 (i) a) Reviewed the materiality untrue of Financial Statements √
6 (i) b) Reviewed about compliance of accounting standard √
Reviewed about fraudulent, illegal or violation of the Company’s
6 (ii) √
code of conduct.
7 Reporting and Compliance of Corporate Governance
Obtain certificate about compliance of conditions of Corporate
7 (i) √
Governance Guidelines
7 (ii) Annexure attached in Director’s report √

48

PReMIeR CeMenT MILLS LIMITed

Certificate on the Compliance of Corporate Governance Guidelines

(Issued under Condition No. 7(i) of Corporate Governance Guidelines of BSEC vide Notification
No.SEC/CMRRCD/2006-158/134/Admin/44 dated 07 August 2012)

CERTIFICATE OF COMPLIANCE
To the shareholders of Premier Cement Mills Ltd.

We have examined compliance to the BSEC guidelines on Corporate Governance by Premier Cement Mills Limited
for the year ended 30th June, 2015 as per the Notification No. SEC/CMRRCD/2006-158/134/Admin/44 dated 07
August, 2012 of Bangladesh Securities and Exchange Commission (BSEC).

The compliance to the codes of above Corporate Governance guidelines is the responsibility of the Company. Our
examination was limited to the procedures and implementation thereof as adopted by the Management in ensuring
compliance to the conditions of Corporate Governance. This is a scrutiny and verification only and not an expression
of opinion or audit on the financial statements of the company.

In our opinion and to the best of our knowledge and according to the information and explanations provided to us,
we hereby certify that the Company has complied with the conditions of Corporate Governance as stipulated in the
above mentioned guidelines issued by BSEC as on the date of issuance of this certificate.

October 20, 2015

49

AnnuAL RePoRT 2014 - 2015

 Sustainable Development Report

Sustainable Development
Premier Cement is always impatient to do a little more than ordinary as an entity.
Getting out from the rat race and heading toward with society by occupying and
contributing growth gave the Company an extra honor from the bottom o f people’s

The difference
hearts. The Company developed a continuous Sustainable Development Policy that
commits the business to work for the environmental, health and safety issues. It also
addresses the supply chain and the community issues that our operations directly

between
or indirectly affect. Our principles for sustainability stand for a set of focus areas
that intersect with our business on a daily basis and guide our decisions that we
make in day-to-day business operation. Many of these areas are associated with our

‘Ordinary’ and
inspirational, operational and product stewardship goals, which includes:

‘Extraordinary’
is just that little
‘extra’. Operational Concerns for
efficiency and environment
innovation

Waste Concerns for

management Society

Quality
improvement & Creating value for
cost reduction the stakeholders

Principles of Our
Sustainable Development

50

PReMIeR CeMenT MILLS LIMITed

The concept of sustainable development is been always in our revolution in the country. Our Corporate tree planting program
process and progress. The Company is dedicated towards the is a part of our Sustainable development process that helps us to
implementation of different pro-active sustainable activities such bring communities together and make a positive contribution to
as environmental preservation, community development etc. as to the environment as well. Every year, Company plants substantial
fulfill its Corporate Social Responsibilities (CSR). We have devised number of saplings at road side and rural parts of the country.
a robust sustainable development process which has initiated by During the period under review the Company planted thousands
our management team. The process itself exhibits an elaborated of saplings in rural, coast and flood affected areas. Furthermore
procedure’s layout as well as engagement with stakeholders and we arranged several awareness programs this year to educate,
feeding their insights back into the process so that it can help motivate and in order to create a sense of environmental
business to prioritize concerns that ask for greater attention. responsibility towards the local people.

Advisory support
We provide exclusive advisory support to our clients and other
Sustainable land owners on how they can build eco friendly buildings. We
reporting Stakeholders' know due to land shortage and higher demand for individual
engagement house units it became very difficult for individual home makers
and apartment builders to give up an inch of space from their
construction for environmental purpose. Thus our trained
Sanctions
and Actions S
Mix of ‘ ’ ix
Search
technical support team visits different sited in various locations,
meets the land owners and contractors, and discuss green ideas
in our sustainability and plans free of cost including in-house plantation, green
for
matrix decoration and eco friendly constructions.
impediments
Adequate dust collectors
Solutions
We are aware about the fact of suspended particle and dust
Scrutinize and
emission in our production process that can affect the environment
prioritize and local health severely. But as we never compromise on any
issue related to environment, therefore our whole production
units are equipped with adequate number of dust collectors to
keep the amount of suspended particles in the air far bellow
Sustainable development initiatives: than the acceptable limit. Thus Department of Environment,
Government of People’s Republic of Bangladesh has certified us by
By adopting sustainable practices, companies can gain its environmental clearance. And our aim is to remain constantly
competitive edge, increase their market share, and boost as one of the most complied companies in the industry regarding
shareholder value. Bearing these in mind we have developed bio-diversity maintenance and environmental preservation.
several action plans and drives after assessing stakeholders’
feedbacks, measuring their impacts as well as benefits on the Reducing carbon footprint
environment and communities. The followings are the prime
action plans that leading us to grow in a sustainable way. The Company tries to maintain its production processes eco
friendly and efficient as much as possible. To bring these into
Tree planting and awareness programs practice, Company strives to limit the fossil fuels consumption
for combustion in its cement grinding plants by adopting
Premier Cement aims to contribute to society through various prudent strategies. Also real time monitoring in every stages of
activities based on the aspects of creativity and culture that stand production gives us the optimum level outcome of our fuels,
at the core of our corporate philosophy. As a good corporate utilities and natural resources consumption.
citizen, we encourage all of our employees to participate in
creative activities nationally with an awareness of the importance Waste management
of making a contribution to society mainly in the area of
environmental conservation. Thus to maintain ecological balance Our process leaves a small amount of waste in few parts of
and to protect our environment we are continuously arranging whole production. And therefore waste management is an
numerous tree planting drives and awareness programs to create integral part of our industrial production. As a sustainer of
environmental consciousness amongst the local habitants with “corporate Citizenship” we continuously monitor our production
the help of company’s employees and stakeholders; intended to ensure minimal wastage level and productive management of
to offset the carbon emissions associated with the industrial recycling the wastage materials which is beyond our control.
51

AnnuAL RePoRT 2014 - 2015

 Sustainable Development Report
Corporate Social Responsibilities: Community and their satisfaction, we thus consider our employees and their
workplace as important as the community and environment
CSR reflects an organization’s commitment towards improving are. Because all of them lays in the same concern, the concern
the society’s wellbeing and it also serves to enhance the for society. So to be more social as a corporate citizen, Premier
organization’s image. Premier Cement does not consider Cement continuously contributing in the following manners to
business is all about maximizing profit; rather it believes in ensure a better and more familiar workplace equally to every
contribution towards the society as a social obligation and employee in the organization.
in which our customers, investors like to be more engaged
with. Thus Premier Cement always tries to explore thoughtful, • Health and safety in the workplace:
comprehensive approaches to corporate citizenship that we
Employee health is an asset for any organization because
believe aligns with Company’s values and maximizes the impact
it has a vital connection with the performance of the
it can make as a corporation. We primarily focus on specific
company. Premier Cement is therefore engaged in a variety
societal issues like rural health, sanitation, education, and
of initiatives to encourage every employee to maintain or
culture. Followings are the few CSR initiatives that we have
improve his or her health and enable them to work with
carried on last year:
cheerfulness and vigor. These include highly subsidized
• Warm clothes giving drive: hygienic in-house catering support, pure drinking water
Though the poverty incidence in our country is decreasing supply, in-house Gymnasium, recreation centre and the
but still a significant number of our total population is living scope of regular medical checkups domestically. The
below the poverty line. Many of them live as refugees or Company also maintains strict safety procedures and
in slums. During the winter they suffer a lot, even die from conducts precautionary trainings for all employees in order
various seasonal diseases. As we feel their sufferings, we are to achieve zero accidents and to raise safety awareness
arranging many warm clothes giving drives throughout the among them.
mostly affected parts of the country in winter season.
• Additive benefits:
• Vaccination drive:
We provide additive benefits and exclusion facility
We are arranging Hepatitis B and polio vaccination drives
from financial obligations in case of emergency and for
on yearly basis in some remote parts of the country with
humanitarian reasons to every employee regardless of their
the help of local school authorities, our customers and
designation. For instance we have been offering free of
employees. Some awareness counseling to the local
cost medical support to injured workers and giving them a
residents about health and sanitation has also been placing
helping hand to ensure their full recovery even if they need
along with these vaccinations drives.
to set for overseas treatment. Premier Cement also grants
• Set up roadside directions and cautionary signs: exemption of financial obligations (such as loans, IOU etc) in
The Company has also constructed and placed many road case of casualties and offers them maximum possible after-
side cautionary, directional signs last year in many tourist service benefits by contravening the generally applied rules.
places and on the way of risky turnings to give appropriate
directions to the motorists and to warn everyone about the • Training facilities:
risky turns ahead. Premier Cement provides two months of on-job training
• Donation and construction: opportunity to all of its newly recruited employees, especially
fresh talents. As we believe no one is well tailored in every
We believe philanthropic contribution is the most effective
aspect of a given job and the person who is newly joined
way to eradicate social disparity. Thus our Company has
needs a certain time to adapt the new environment, thus the
been donating significant amount of money and its products
Company nurtures the fresher’s minds through a job specific
over the years to different Mosques, Schools and Madrashas
mentor and helps to understand his/her responsibilities and
for construction purposes in the view of eliminating illiteracy
the organizational culture as well.
and for socio-economic development of our country. Further,
the Company constructed approach roads from Chittagong
• Apprenticeship opportunities:
Port up to Issa Nagar by spending its own fund where
thousands of local inhabitants are being benefited everyday. To set up a bridge between theoretical knowledge and
practical experience, every year our Company is providing
Corporate Social Responsibilities: Workplace paid temporary apprenticeship opportunities to local youths
in order to flourish their competencies to farthest possible
Workplace CSR issues are the issues concerned with the working extent and to help them gaining professional experience
conditions, employees’ health and workplace safety and their as well. Many of them are now working successfully as
benefits; which result in the overall stability, reduce accidents permanent employees at both of our corporate office and
and increase employee satisfaction. To ensure employee safety factory premises.
52

PReMIeR CeMenT MILLS LIMITed

Value added statement

2014-2015 2013-2014 2012-2013

A ) G e n e r AT i o n o f V A lu e A d d e d
Sale 8,098,701,152 7,539,574,982 6,416,662,323
Add: Income From Services - - -
Less: Cost of Bought in Material & Services (7,154,206,978) (6,455,326,201) (5,523,980,221)
Gross Value Added 944,494,174 1,084,248,781 892,682,102
Add: Other Income 111,936,424 184,719,720 273,854,481
Less: Depreciation (349,686,450) (326,035,805) (208,657,961)
Net Value Added 706,744,149 942,932,696 957,878,622

B ) A p p l i C AT i o n o f V A lu e A d d e d
Directors’ Remuneration 2,400,000 2,400,000 2,400,000
Payment to Employees 267,825,365 240,312,392 188,928,384
Payment to Government 22,625,890 185,673,987 261,373,283
Payment to Provider of Capital 316,350,000 421,800,000 -
Retained Earning 92,531,479 87,793,024 499,966,072
Non-controlling interest 5,011,415 4,953,292 5,210,882
Net Value Added 706,744,149 942,932,696 957,878,622

VALUE ADDED PERCENTAGE FOR 2014-2015 VALUE ADDED PERCENTAGE FOR 2013-2014

39 % Payment to Employees 26 % Payment to Employees

3% Payment to Government 20% Payment to Government
45% Payment to Provider of Capital 45% Payment to Provider of Capital
13% Retained Earning 9% Retained Earning

53

AnnuAL RePoRT 2014 - 2015

 Human Resource Accounting

Premier Cement considers Human Resource as the most important resources amongst all for any organization.
The Company refers its human capital asset as the collective sum of the attributes, life experience, knowledge,
inventiveness, energy, and enthusiasm that its people choose to invest in their work. The key functions of our Human
Resources Management (HRM) include recruiting people, training, performance appraisals, motivating employees
as well as workplace communication, safety, and much more. Premier Cement is always keen to measure the
collective investment in human resources and its ROI toward the organizational goal. Human Resource Accounting
is therefore a new adoption by the company’s management which is developing day by day.
Human Resource Accounting gives information regarding inner strength of organization and helps in making decisions regarding long-
term investment in that organization. The employee’s bargaining power and performance are also affected by this. But, in spite of having
such importance, study of human resource had not been given required attention by management thinkers for years. In Bangladesh HRA
is also still not recognized in the financial statements, because they cannot be measured by generally accepted basics, in spite of the
related costs incurred to hire, train etc. But for obvious reasons our management claims that human resources are the most significant,
expensive, and the best asset in the entity that controls and directs the other resources. Moreover we also believe, only a dynamic HR
pool can make every other segment in the organization productive as well as fruitful.
Demographic segmentation of our permanent Human Resources (Till June 30, 2015):

AGe CoRPoRATe oFFICe FACToRY totAl

18-25 60 149 209

26-35 268 228 496
36-45 70 89 159
46-55 10 33 43
56 and above 05 05 10
Total 917

Brief and approximate outlay of our HR development for the year ended 2014-2015:

PARTICuLARs AMouNT IN TAkA

Total cost of hiring 514,215.00

Average cost of hiring an incumbent 4,395.00
Total Cost of Training 2,928,824.00
Average cost of training (for both existing and new
3193.91
employees)

Employee benefits outlay for the year ended 2014-2015:

PARTICuLARs AMouNT IN TAkA
Salary 207,731,615
Directors’ Remuneration 2,400,000
Labour Charges 23,335,870
Provident Fund 5,954,019
Workers Profit Participatory Fund (WPPF) 17,883,081
Gratuity settlement and Others -
Total 257,304,585

54

PReMIeR CeMenT MILLS LIMITed

 55

AnnuAL RePoRT 2014 - 2015

 Financial Statements

56

Premier Cement Mills Limited

Premier Cement Mills Limited Annual Report 2014 - 2015

Auditor’s Report
to the shareholders of Premier Cement Mills L imited

We
have audited the ac companying consolidated financial statements of P remier Cement Mills Limited and its subsidiar ies, which
comprise the consolidated statement of financial position as at 30 June 2015, and the consolidated statement of comprehensive
income, sta tement of changes in equit y and sta tement of cash flows f or the y ear then ended , and a summar y of sig nificant
accounting policies and other explanatory notes.

Management’s Responsibility for the consolidated financial statements

Management is r esponsible f or the pr eparation of these c onsolidated financial statements tha t g ive a true and fair view in ac cordance with
Bangladesh F inancial R eporting Standar ds (BFRS) and other applicable la ws and r egulations, and f or such in ternal c ontrol as managemen t
determines is necessary to enable the preparation of these consolidated financial statements that are free from material misstatement, whether
due to fraud or error.

Auditor’s Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance
with Bangladesh Standards on Auditing (BSA). Those standards require that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidenc e about the amoun ts and disclosures in the c onsolidated financial statements.
The procedures selected depend on the audit or’s judgment, including the assessmen t of the r isks of material misstatement of the c onsolidated
financial statements, whether due t o fr aud or er ror. I n mak ing those r isk assessmen ts, w e c onsider in ternal c ontrol r elevant t o the en tity’s
preparation of the consolidated financial statements that give a true and fair view in order to design audit procedures that are appropriate in
the circumstances, but not f or the pur pose of expressing an opinion on the effectiveness of the en tity’s internal control. An audit also includes
evaluating the appr opriateness of ac counting policies used and the r easonableness of ac counting estimates made b y management, as w ell as
evaluating the overall presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion
In our opinion, the c onsolidated financial statements, give a true and fair view of the financial position of Premier Cement Mills Limited and its
subsidiaries as at 30 June 2015, and of their financial performance and cash flows for the year then ended in accordance with Bangladesh Financial
Reporting Standards (BFRS) and comply with the Companies Act 1994 and other applicable laws and regulations.

We also report that:

i) 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;
ii) 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;
iii) the company’s statement of financial position and statement of comprehensive income dealt with by the report are in agreement with the
books of account; and
iv) the expenditure incurred was for the purpose of the Company’s business.

Place: Dhaka Hussain Farhad & Co.

Dated: 23 September 2015 Chartered Accountants

57
 Premier Cement mills limited

Consolidated Statement of Financial Position

As at 30 June 2015

2015 2014
Notes
Taka Taka

ASSETS
Non-current assets
Property, plant and equipment 4 5,878,662,922 5,466,159,025
Capital work -in - progress 5 51,150,482 478,898,506
5,929,813,404 5,945,057,531
Current assets
Inventories 6 1,303,893,964 1,282,263,619
Trade and other receivables 7 1,390,891,206 1,322,212,717
Advances, deposits and pre-payments 8 1,070,746,142 936,140,231
Investment in FDR 9 229,863,228 183,604,362
Cash and bank balances 10 164,121,665 134,141,336
4,159,516,204 3,858,362,264
Total assets 10,089,329,608 9,803,419,796
EQUITY AND LIABILITIES
Equity
Share capital 11 1,054,500,000 1,054,500,000
Revaluation reserve 351,893,242 356,868,534
Tax holiday reserve 2,274,386 2,274,386
Share premium 441,835,000 441,835,000
Retained earnings 1,255,410,961 1,162,879,481
3,105,913,589 3,018,357,402
Share money deposit 210,000,000 210,000,000
Non-controlling interest 12 81,930,666 76,919,251
3,397,844,255 3,305,276,653
Non-current liabilities
Deferred tax liabilities 13 300,142,360 309,978,565
Long term loan 14 1,506,723,099 980,171,867
Defined benefit obligations (Gratuity) 15 81,780,538 59,788,044
1,888,645,997 1,349,938,476
Current liabilities
Trade and other payables 16 349,797,791 279,583,090
Short term bank loan 17 3,813,600,695 4,326,192,283
Current portion of long term loan 14 494,625,160 295,417,276
Liability for other finance 18 76,714,212 70,420,750
Contribution to WPPF 19,684,997 33,530,776
Provision for taxation 19 48,416,501 143,060,493
4,802,839,355 5,148,204,667
Total equity and liabilities 10,089,329,608 9,803,419,796
The annexed notes 01 to 37 form an integral part of these financial statements.
The separate financial statements of the Company are attached herewith from page 62 to 90.

Company Secretary Director Managing Director

As per our report of same date.

Place: Dhaka Hussain Farhad & Co.

58 Dated: 23 September 2015 Chartered Accountants
Premier Cement mills limited Annual report 2014 - 2015

Consolidated Statement of Comprehensive Income

For the year ended 30 June 2015

2015 2014
Notes
Taka Taka

Revenue 20 8,098,701,152 7,539,574,982

Cost of sales 21 (6,859,763,360) (6,243,640,862)
Gross profit 1,238,937,792 1,295,934,120
Other income / (expenses) 22 111,936,424 184,719,720
Administrative expenses 23 (89,854,024) (109,112,854)
Selling & distribution expenses 24 (352,998,095) (265,439,660)
Profit before interest and tax 908,022,098 1,106,101,326
Finance costs 25 (456,793,609) (377,794,346)
Contribution to WPPF (19,684,997) (33,530,776)
Profit before tax 431,543,492 694,776,204
Current tax expenses 19 (32,462,095) (233,676,866)
Deferred tax income/(expenses) 13 9,836,205 48,002,879
Profit for the year 408,917,603 509,102,217
Other comprehensive income
Revaluation of property, plant & equipment - -
Income tax on other comprehensive income - -
Total comprehensive income for the year 408,917,603 509,102,217
Profit attributable to:
Owners of the company 403,906,188 504,148,924
Non-controlling interest 12 5,011,415 4,953,293
408,917,603 509,102,217
Total comprehensive income attributable to:
Owners of the company 403,906,188 504,148,924
Non-controlling interest 5,011,415 4,953,293
Total comprehensive income for the period 408,917,603 509,102,217

Basic earnings per share (par value of Tk. 10) 26 3.83 4.78

The annexed notes 01 to 37 form an integral part of these financial statements.

The separate financial statements of the Company are attached herewith from page 62 to 90.

Company Secretary Director Managing Director

As per our report of same date.

Place: Dhaka Hussain Farhad & Co.

Dated: 23 September 2015 Chartered Accountants

59
 Premier Cement mills limited

Consolidated Statement of Changes in Equity

For the year ended 30 June 2015

Amount in Taka

Revaluatoin Tax holiday Retained Share money Non-controlling

Share capital Share Premium Total Total equity
reserve Reserve earnings deposit interest

Balance at 30 June 2013 1,054,500,000 441,835,000 362,312,633 2,274,386 1,075,086,458 2,936,008,477 210,000,000 71,965,958 3,217,974,435
Net profit after tax for the year - - - - 504,148,924 504,148,924 - 4,953,293 509,102,217
Dividend paid - - - - (421,800,000) (421,800,000) - - (421,800,000)
Depreciation on revalued assets - - (5,444,099) - 5,444,099 - - - -
New share issued - - - - - -
Receipt against right issue - - - - - - - - -
New share issued - - - - - - - - -
Tax on Share premium - - - - - - -
Balance at 30 June 2014 1,054,500,000 441,835,000 356,868,534 2,274,386 1,162,879,481 3,018,357,401 210,000,000 76,919,251 3,305,276,652
Net profit for the year - - - - 403,906,188 403,906,188 - 5,011,415 408,917,603
Dividend paid - - - - (316,350,000) (316,350,000) - - (316,350,000)
Depreciation on revalued assets - - (4,975,292) - 4,975,292 - - - -
Receipt against right issue - - - - - - - - -
New share issued - - - - - - - - -
Tax on share premium - - - - - - - - -

Balance at 30 June 2015 1,054,500,000 441,835,000 351,893,242 2,274,386 1,255,410,961 3,105,913,589 210,000,000 81,930,666 3,397,844,255

Company Secretary Director Managing Director

Place: Dhaka
Dated: 23 September 2015

60
Premier Cement mills limited Annual report 2014 - 2015

Consolidated Statement of Cash Flows

For the year ended 30 June 2015

2015 2014
Taka Taka

Cash flows from operating activities

Receipt from customers 8,036,868,680 7,275,391,238
Payment to employees (263,401,935) (245,513,623)
Payment to suppliers (6,634,165,042) (6,160,722,851)
Cash generated from operating activities 1,139,301,703 869,154,764
Other income 110,455,783 184,719,720
Interest paid (453,199,634) (386,626,333)
Dividend Paid (317,365,110) (378,181,440)
Advance income tax refund 95,844,311
Tax paid (181,656,221) (238,804,752)
A. Net cash from operating activities 393,380,832 50,261,959
Cash flows from investing activities
Purchase of property, plant & equipment (353,916,548) (525,511,368)
Capital work-in-progress (WIP) (20,348,865) (423,499,212)
Sale of property, plant & equipment 2,295,113 695,000
Increase/(decrease) in loans & others - 349,520,851
Investment in FDR (46,258,866) (53,032,892)
B. Net cash used in investing activities (418,229,166) (651,827,621)
Cash flows from financing activities
Proceeds from bank borrowing 7,624,099,029 6,547,422,163
Repayment of bank borrowing (8,020,018,950) (6,237,645,090)
Share Money Deposit - -
Proceeds against Share Money Payable (154,604) (5,565,948)
Directors current account - -
From other finance 6,293,462 8,905,600
From lease finance 525,000,000 74,580,000
Repayment of lease finance (80,390,274) (56,560,147)
C. Net cash from financing activities 54,828,663 331,136,578
Net increase in cash and bank balances (A+B+C) 29,980,329 (270,429,084)
Cash and bank balances at the beginning of the year 134,141,336 404,570,422
Cash and bank balances at the end of the year 164,121,665 134,141,338

Company Secretary Director Managing Director

Place: Dhaka
Dated: 23 September 2015

61
 Premier Cement Mills Limited

Notes to the Consolidated Statement of Financial Position

For the year ended 30 June 2015

1.00 REPORTING ENTITY

1.01 Formation and legal status
Premier Cement Mills Limited, (hereinafter referred to as PCML or the holding C ompany) a Public Limited Company was incorporated on
14 October 2001 under the Companies Act XVIII of 1994 having its registered office in Chittagong. Presently the Company has a subsdiary
namely “Premier Power Generation Limited” where PCML holds 96% of its shares and PCML also holds 40% shares of “National Cement Mills
Limited” and exerts control on NCML with remaining 60% voting rights through common directorships.
Premier Power Generation Limited, (hereinafter referred to as PPGL or the subsidiary company) a private limited company was incorporated
on 07 September 2006 under the Companies Act 1994 having its registered office in Chittagong with an installed capacity of 5.34 MW run
by Natural Gas from TGTDCL. National Cement Mills Limited, (hereinafter referred to as NCML or the associa te company) a public limit ed
company was incorporated on 10 September 1996 with an installed capacity of 1400 MT per day at Issa Nagar, Karnafully, Chittagong.

1.02 Nature of business

The Company is manufacturing cement from various raw materials i.e. Clinker, Gypsum, Slag, Lime Stone, Fly Ash etc. at its manufacturing
plant located at West Muktarpur, Munshigonj and marketing the same in local as well as foreign markets.

2.00 Basis of preparation, presentation and disclosures of financial statements

2.01 Statement of compliance
The financial statements have been prepared on a going concern basis following accrual basis of accounting except for cash flow statement
in accordance with the I nternational Accounting Standards (IASs) and I nternational Financial Reporting Standards (IFRSs) as adopt ed in
Bangladesh by the Institute of Chartered Accountants of Bangladesh as Bangladesh Accounting Standards (BASs) and Bangladesh Financial
Reporting Standards (BFRSs).

2.02 Other regulatory compliances

The Companies are also required to comply with the following major laws and regulation in addition to the Companies Act 1994:
The Securities and Exchange Rules, 1987
The Securities & Exchange Ordinance, 1969
The Income Tax Ordinance, 1984
The Income Tax Rules, 1984
The Value Added Tax Act, 1991
The Value Added Tax Rules, 1991
The Customs Act, 1969

2.03 Basis of measurement

These financial statements have been prepared on a historical cost basis except for property, plant and equipment which are measured at
revalued amount.

2.04 Functional and presentation currency

These financial statements are prepared in Bangladesh Taka (Taka/ Tk.), which is the company’s functional currency. All financial information
presented in Taka has been rounded off to the nearest integer.

2.05 Use of estimates and judgments

The preparation of financial statements 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.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revision to accounting estimates are recognised in the period in
which the estimates are revised and in any future periods affected.
Information about critical judgments in applying accounting policies that have the most significant effect on the amounts recognised in the
financial statements is included in the following notes:

62
Premier Cement Mills Limited Annual Report 2014 - 2015

Notes to the Consolidated Statement of Financial Position

For the year ended 30 June 2015

Note 4 Property, plant and equipment

Note 6 Inventories
Note 7 Trade and other receivables
Note 13 Deferred tax liability
Note 15 Defined benefit obligations (Gratuity)
Note 16 Trade and other payable
Note 19 Provision for taxation
Note 29 Contingent liabilities

2.06 Changes in accounting policy

The company has applied the following BASs/BFRSs from the year 2013-2014
BFRS 10 Consolidated Financial Statements
BFRS 12 Disclosure of interests in other entities
BFRS 13 Fair Value Measurement
These standards have been applied prospectively and are applicable to companies from 1 January 2013

2.07 Going concern

The company has adequate resources to continue in operation for foreseeable future. For this reason the directors continue to adopt going
concern basis in preparing the Financial Statements. The current credit facilities of the company provide sufficient fund to meet the present
obligations of its existing businesses and operations.

2.08 Applicable accounting standards

The following BASs and BFRSs are applicable for the financial statements for the year under review:
BAS - 1 Presentation of Financial Statements
BAS - 2 Inventories
BAS - 7 Statements of Cash Flows
BAS - 8 Accounting Policies, Changes in Accounting Estimates and Errors
BAS - 10 Events after the Reporting Period
BAS - 12 Income Taxes
BAS - 16 Property, Plant and Equipment
BAS - 17 Leases
BAS - 18 Revenue
BAS - 19 Employee Benefits
BAS - 21 The Effects of Changes in Foreign Exchange Rates
BAS - 23 Borrowing Costs
BAS - 24 Related Party Disclosures
BAS - 27 Separate Financial Statements (Revised 2011)
BAS - 28 Investment in Associate
BAS - 32 Financial Instruments: Presentation
BAS - 33 Earnings Per Share
BAS - 34 Interim Financial Reporting, Comparative information
BAS - 36 Impairment of Assets
BAS - 37 Provisions, Contingent Liabilities and Contingent Assets
BAS - 38 Intangible Assets
BAS - 39 Financial Instruments: Recognition and Measurement
BFRS - 3 Business Combinations
BFRS - 7 Financial Instruments: Disclosures
BFRS - 10 Consolidated Financial Statements
BFRS - 12 Disclosure of interest in other entities
BFRS - 13 Fair value measurement
63
 Premier Cement Mills Limited

Notes to the Consolidated Statement of Financial Position

For the year ended 30 June 2015

2.09 Reporting period

The accounting period of the company covers one financial year from 1st July to 30th June consistently.

2.10 Principles of consolidation and dislcosure of interest in other entitities

Subsidiary is an en terprise controlled by the par ent entity. Control exists when an in vestor is exposed , or has r ights, to variable
returns from its involvement with the investee and has the ability to affect those re-turns through its power over the investee. The
financial statements of subsidiary are included in the consolidated financial statements from the date that control commences untill
the date that control ceases. The consolidated financial statements have been prepared in accordance with BFRS 10 C onsolidated
Financial Statements.
The group eliminates in full intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between
entities of the group (profits or losses resulting from intragroup transactions that are recognised in assets, such as inventory and
fixed assets, are eliminated in full).
Non-controlling interests
The group presents non-controlling interests in its c onsolidated statement of financial position within equity, separately from the
equity of the owners of the parent.
The group attributes the pr ofit or loss and each component of other c omprehensive income to the o wners of the par ent and t o
the non-controlling interests. The proportion allocated to the parent and non-controlling interests are determined on the basis of
present ownership interests.
Premier Power Generation Limited is a subsidiar y company of PCML. The Company has made 96% in vestments in its subsidiary.
PCML is exposed to and has rights, to variable returns from the subsidiary and also has the ability to affect those returns through its
power over PPGL.
National Cement Mills Limited is subsidiary of PCML. The company owns 40% of the equit y share capital in NCML and also ex erts
control on NCML with remaining 60% voting rights through common directorships. Hence, management has decided to consolidate
the financial statements of NCML in accordance with BFRS 10 for reporting purpose.

3.00 Summary of significant accounting policies

The specific accounting policies selected and applied by the company’s directors for significant transactions and events that have material
effect within the framework of BAS-1 “Presentation of Financial Statements”, in preparation and presentation of financial statements have
been consistently applied throughout the year and were also consistent with those used in earlier years.
For a proper understanding of the financial statements, these accounting policies are set out below in one place as prescribed by the BAS-1
“Presentation of Financial Statements”. The recommendations of BAS-1 relating the format of financial statements were also taken into full
consideration for fair presentation.

3.01 Consistency
The accounting policies and methods of computation used in preparation of financial statements for the period ended 30 June 2015
are consistent with those policies and methods adopted in preparing the financial statements for the year ended 30 June 2014.

3.02 Transactions in foreign currencies

Foreign currency transactions are recorded at the applicable rates of exchange ruling on the date of transactions.
Other monetary assets & liabilities, if any, denominated in foreign currencies at the Balance Sheet date are translated at the applicable
rates of exchange ruling at that date and the related exchange differences are charged off as revenue expenditure.

3.03 Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of
another entity.

64
Premier Cement Mills Limited Annual Report 2014 - 2015

Notes to the Consolidated Statement of Financial Position

For the year ended 30 June 2015

3.03.01 Financial assets

The group initially recognises loans and receivables and deposits on the date that they are originated. All other financial
assets are recognised initially on the trade date, which is the date the Group becomes a party to the contractual provisions
of the instrument.
The group derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers
the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks
and rewards of ownership of the financial asset are transferred.
Financial assets include cash and bank balances, trade and other receivable, advances, deposits and prepayments, etc.

3.03.01.01 Cash and bank balances

This comprises cash in hand , deposits held a t call with banks , and bank o verdrafts are shown in current
liabilities on the balance sheet which are held and available for use by the company without any
restriction. There is insignificant risk of change in value of the same.

3.03.01.02 Trade and other receivables

Trade and other receivables represent the amounts due from local and foreign customers etc. Accounts
receivables are stated at net.
Provision for doubtful debts is made based on the c ompany policy. Bad debts ar e written off on
consideration of the status of individual debtors.

3.03.02 Financial liabilities

The g roup r ecognises all financial liabilities on the trade da te which is the da te the g roup bec omes a par ty t o the
contractual provisions of the instrument.
The g roup der ecognises a financial liability when its c ontractual obliga tions ar e dischar ged, canc elled or expir ed.
Financial liabilities comprise trade and other creditors only.

3.03.02.01 Trade and other payables

The group recognises a financial liability when its contractual obligations arising from past events are
certain and the settlemen t of which is expec ted to result in an outflow from the company of resources
embodying economic benefits.

3.04 Property, plant and equipment

3.04.01 Recognition and measurement

Items of property, plant and equipment are carried at revalued amount, being fair values at the date of revaluation less
subsequent accumulated depreciation and subsequent impairment losses, if any.

Subsequent costs
The cost of r eplacing a par t of pr operty, plant and equipmen t is r ecognised in the car rying amount of the it em if it is
probable that future economic benefits associated with the it em will flow to the en tity and the c ost of the it em can
be measured reliably. All other r epairs and maintenance costs are charged to the statement of comprehensive income
during the financial period in which they incurred.

Depreciation
Land is held on a freehold basis and is not depreciated considering the unlimited life. In respect of all other fixed assets,
depreciation is provided on reducing balance method over their expected useful life & half year depreciation charged
in addition to fixed assets during the year. The annual depreciation rates applicable to different category of assets are as
follows:

65
 Premier Cement mills limited

Notes to the Consolidated Statement of Financial Position

For the year ended 30 June 2015

Rate
Category of assets
PCML NCML PPGL
Land and land development 0% 0.0% -
Factory Building 3% 5.0% -
Jetty Construction 3% 10.0% -
Electric Installation 7.5% - -
Plant & Machinery 7.5% 7.5% 6.0%
Boundary Wall & Fencing 5% - -
Furniture & Fixtures 10% 10.0% 10.0%
Telephone & Fax Installation 15% - -
Loose Tools 15% 10.0% -
Motor Vehicles 15% 10.0% -
Office Building & Shed 3% 5.0% -
Office Equipment 15% 10.0% 20.0%
Tube-Well 15% - -
Air Compressor 15% - -
Grinding Media 33% 25.0% -
Lab Equipment 10% - -
Vessel 10% - -
Portable Cement Silo 3% - -
Office Decoration 15% - 15%
Generator Building - - 10%
Software 10% - -
Wheel Loader - 7.5% -

Depreciation charged during the year is allocated to cost of sales, administrative expenses, carrying income / (loss) and selling
& distribution expenses based on usage/consumption of economic benefits.
Upon retirement of assets, the cost and related accumulated depreciation are eliminated from the accounts and resulting gain
or loss is charged or credited to profit and loss account.
Leasehold assets
Assets held under finance leases are recognised as assets of the Company at their fair value at the date of acquisiton or, if lower, at
the present value of the minimum lease payments. The corresponding liability is included in the balance sheet as a finance lease
obligation. Lease payments are apportioned between finance charges and reduction of the lease obliga tion so as t o achieve a
constant rate of interest on the remaining balance of the liability. Finance charges are charged directly against income.
Assets held under finance leases are depreciated over their expected useful lives on the same basis as owned assets.
3.04.02 Capital work-in-progress ( with valuation method )
Property, plant and equipment under construction/acquisition is accounted for as capital work-in-progress until construction/
acquisition is completed and measured at cost.

3.05 Inventories

Nature of inventories
Inventories comprise Raw Materials (Clinker, Gypsum, Lime St one, Fly Ash, Slag), Packing Materials, Consumable Stores, Raw Materials of
Bag Plant, Goods in Transit & Finished Goods (Cement) etc.

66
Premier Cement mills limited Annual report 2014 - 2015

Notes to the Consolidated Statement of Financial Position

For the year ended 30 June 2015

Valuation of the inventories

Inventories are stated at the lower of cost or net realizable value in accordance with BAS 2“Inventories” after making due allowances for any
obsolete or slow moving items, if any.
The cost is determined using the Weighted Average Method consistently. The cost of inventories comprises of expenditure incurred in the
normal course of business in br inging such in ventories to its pr esent location and c ondition. Net r ealizable value is based on estima ted
selling price less VAT in the ordinary course of business less any further costs expected to be incurred to make the sale (applicable variable
selling expenses).

Category Basis of valuation

Finished goods At the lower of weighted average cost or net realizable value.
Raw materials At the lower of weighted average cost or net realizable value.
Goods-in-transit At the lower of weighted average cost or net realizable value.

3.06 Cash flow statement

Statement of Cash Flows is prepared principally in accordance with BAS 7 (Cash Flow Statement) and the cash flow from operating activities
have been presented under direct method.

3.07 Impairment
3.07.01 Non-derivative ἀnancial assets
Financial assets not car ried at fair v alue through profit or loss, loans and r eceivables are assessed a t each reporting date to
determine whether there is objective evidence that it is impair ed. A financial asset is impaired if objective evidence indicates
that a loss ev ent has oc curred after the initial r ecognition of the asset, and tha t the loss ev ent had a nega tive effect on the
estimated future cash flows of that asset that can be estimated reliably.
3.07.02 Non-ἀnancial assets
The carrying amounts of the group’s non-financial assets, other than inventories and deferred tax assets, are reviewed at each
reporting date to determine whether there is any indication of impairment. If any such indication exists then the r ecoverable
amount of the asset is estima ted. An impair ment loss is r ecognised if the car rying amoun t of an asset or its r elated cash-
generating unit (CGU) exceeds its estimated recoverable amount.

3.08 Provisions, contingent liabilities and contingent assets

A provision is r ecognized in the balanc e sheet when the C ompany has a legal or c ontractual obligation as a r esult of a past ev ent, it is
probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount
of the obligation. Contingent assets are not recognized.

3.09 Borrowing costs

Interest and other c osts incurred by the company in connection with the bor rowing of funds ar e recognized as expense in the per iod in
which they are incurred, unless such borrowing cost relates to acquisition / construction of assets in progress that are capitalized as per BAS
23 “Borrowing Costs”.

3.10 Taxation
3.10.1 Current tax
PCML has been main taining pr ovision f or taxa tion @ 25% as per I ncome Tax Or dinance, 1984. C ompany also enjo ys tax
exemption on export sales as per Sixth Schedule (Section 28) of ITO 1984.

67
 Premier Cement mills limited

Notes to the Consolidated Statement of Financial Position

For the year ended 30 June 2015

3.10.2 Deferred tax

Deferred tax liabilities are the amount of income taxes payable in the future periods in respect of taxable temporary differences.
Deferred tax assets are the amount of income taxes recoverable in future periods in respect of deductible temporary differences.
Deferred tax assets and liabilities ar e recognised for the futur e tax consequences of timing differences arising between the
carrying values of assets, liabilities, income and expenditure and their respective tax bases. Deferred tax assets and liabilities are
measured using tax rates and tax laws that have been enacted or substantially enacted at the balance sheet date. The impact
of changes on the ac count in the deferred tax assets and liabilities has also been r ecognised in the profit and loss account as
per BAS-12 ‘’Income Taxes’’.

3.11 Share capital

Paid up capital r epresents t otal amoun t c ontributed b y the shar eholders and bonus shar es issued b y the c ompany t o the or dinary
shareholders. Holders of or dinary shar es ar e en titled t o r eceive dividends as declar ed fr om time t o time and ar e en titled t o v ote a t
shareholders’ meetings. In the event of a winding up of the company, ordinary shareholders rank after all other shareholders and creditors
are fully entitled to any residual proceeds of liquidation.

3.12 Employee benefits

The company maintains both defined contribution plan and defined benefit plan for its eligible permanent employees.
3.12.01 Deἀned contribution plan
The company maintains a recognized providend fund @ 7% of basic pay (Equally contributed by employee & employer) for all
eligible permanent employees from 1st day of July 2010. The said fund is managed b y a duly constituted five member board
of trustees.
3.12.02 Deἀned beneἀt plan ( Gratuity )
The c ompany main tains an unfunded g ratuity scheme, pr ovision in r espect of which is made annually f or the emplo yees.
Gratuity payable at the end of each year are determined on the basis of following rules and regulations of the company.

Service length Payment basis

Nil Amount. In case of deceased person & terminated by employer - One (1)
Less than Five (5) years
times of last month basic salary x year of service(s)

For Five (5) years only One (1) times of last month basic salary x year of services

Above Five (5) years but below Ten (10) years One & half (1.5) times of last month basic salary x year of service(s)

Ten (10) years & above Two (2) times of last month basic salary x year of service(s)

3.12.03 Other beneἀts

The company also recognizes a provision for Workers’ Profit Participation and Welfare funds @ 5% of net profit before tax as per
Labour Act 2006.

3.13 Revenue recognition

In compliance with the requirements of IAS 18 : Revenue from the sale of goods (Cement) is measured at the fair value of the consideration
received or receivable, net of returns, trade discounts and volume rebates. Revenue is recognized when the significant risks 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, there is no continuing management involvement with the goods, and the amount of revenue can be measured
reliably. Specific policies regarding the recognition of revenue are as follows:
i. In case of local sales as well as export sales revenue is recognized when the goods are delivered.
ii. Interest income on bank deposits is recognized when income has been accrued.

68
Premier Cement Mills Limited Annual Report 2014 - 2015

Notes to the Consolidated Statement of Financial Position

For the year ended 30 June 2015

3.14 Earnings per share

The company calculates its earning per share in accordance with Bangladesh Accounting Standard (BAS) - 33 which has been reported on
the face of Statement of Comprehensive Income.
Basis of earnings
This represents earning for the year attributable to ordinary shareholders and Non- Controlling shareholders. As there were no preference
shares r equiring r eturns or dividends , the net pr ofit after tax f or the y ear has been c onsidered as fully a ttributable t o the or dinary
shareholders.
Basis of earnings per share
This has been calculated by dividing the basic earnings by the weighted average number of ordinary shares outstanding during the year.
Diluted earnings per share
No diluted earnings per share is required to be calculated per year as there was no scope for dilution during the year.

3.15 Duty drawback

Duty drawback claimed on export sales is adjusted against cost of imported raw materials.

3.16 Events after the reporting period

Events after the Reporting period that provide additional information about the company’s positions at the balance sheet date are reflected
in the financial statements if any.

3.17 Comparative information and re-arrangement thereof

In ac cordance with the pr ovisions of BAS -1: P resentation of F inancial Sta tements, C omparative inf ormation has been disclosed f or all
numerical information in the financial statements and also the narrative and descriptive information where it is relevant for understanding
of the current period’s financial statements.

69
 Premier Cement mills limited

Notes to the Consolidated Statement of Financial Position

For the year ended 30 June 2015

2015 2014
Taka Taka

4.00 Property, plant and equipment

Freehold ( 4.01 ) 5,716,798,750 5,276,464,505
Leasehold ( 4.02 ) 161,864,172 189,694,520
5,878,662,922 5,466,159,025

4.01 Freehold :

Cost: Amount in Taka

Cost Depreciation Written down

value
Particulars Rate
Charged during Disposal/ As at 30 June
Opening Addition Disposal Closing Opening Closing 2015
the year Adjustment
Land & Land Development 731,947,994 54,696,042 - 786,644,036 0% - - - - 786,644,036
Factory Building 1,052,687,128 195,477,762 - 1,248,164,890 3% 120,809,759 39,603,770 - 160,413,529 1,087,751,361
Jetty Construction 151,132,979 17,105,378 - 168,238,357 3% 18,845,899 11,417,152 - 30,263,051 137,975,306
Electric Installation 112,882,629 30,813,621 - 143,696,250 7.5% 16,345,146 8,395,822 - 24,740,968 118,955,282
Plant & Machinery 2,968,864,331 411,045,493 - 3,379,909,824 7.5%, 6% 461,591,804 211,678,318 - 673,270,122 2,706,639,702
Boundary Wall & Fencing 5,889,790 299,500 - 6,189,290 5% 988,113 252,571 - 1,240,684 4,948,606
Furniture & Fixtures 6,389,440 2,287,172 - 8,676,612 10% 1,365,090 616,794 - 1,981,884 6,694,728
Telephone & Fax Installation 1,046,390 - - 1,046,390 15% 327,215 107,876 - 435,091 611,299
Loose Tools 8,301,945 198,000 - 8,499,945 15% 4,316,921 431,894 - 4,748,815 3,751,130
Motor Vehicles 339,077,906 39,302,541 (7,600,000) 370,780,447 15% 99,652,641 35,893,528 (4,480,752) 131,065,417 239,715,030
Office Building & Shed 40,036,910 2,298,539 - 42,335,449 3% 3,567,533 1,730,152 - 5,297,685 37,037,764
Office Equipment 15,263,249 4,156,349 - 19,419,598 15%, 20% 3,203,191 1,980,798 - 5,183,989 14,235,609
Tube-Well 574,931 237,400 - 812,331 15% 117,990 86,346 - 204,336 607,995
Air Compressor 7,907,415 - - 7,907,415 15% 2,581,888 798,829 - 3,380,717 4,526,698
Grinding Media 76,024,264 18,828,474 - 94,852,738 33% 35,747,082 15,176,328 - 50,923,411 43,929,327
Lab Equipment 2,134,856 90,000 - 2,224,856 10% 592,400 158,746 - 751,145 1,473,711
Vessel 106,725,000 7,798,333 - 114,523,333 10% 24,511,867 8,611,230 - 33,123,097 81,400,236
Portable Cement Silo 5,785,000 5,184,550 - 10,969,550 3% 159,468 246,534 - 406,002 10,563,548
Office Decoration 4,592,963 60,000 - 4,652,963 15% 829,581 569,239 - 1,398,819 3,254,144
Wheel Loader 24,210,286 223,348 - 24,433,634 7.5% 2,579,385 1,630,693 - 4,210,078 20,223,556
Generator Building 5,264,351 - - 5,264,351 10% 2,155,805 310,855 - 2,466,660 2,797,691
Software 937,500 - - 937,500 10% 46,875 89,063 - 135,938 801,563
2015 5,667,677,257 790,102,502 (7,600,000) 6,450,179,759 800,335,653 339,786,537 (4,480,752) 1,135,641,438 5,314,538,321
2014 5,082,879,621 586,315,103 (1,517,467) 5,667,677,257 501,560,689 299,263,375 (488,411) 800,335,653 4,867,341,604

Note:
i) Disposal of property, plant and equipment : Motor vehicles were disposed off which had original cost of Tk. 76,00,000, accumulated depreciation of
Tk. 44,80,752. The sales price was fixed through negotiation.

70
Premier Cement mills limited Annual report 2014 - 2015

Notes to the Consolidated Statement of Financial Position

For the year ended 30 June 2015

Revaluation: Amount in Taka

Cost Depreciation Written down

value
Particulars Rate Charged during Disposal/
Opening Addition Disposal Closing Opening Closing As at 30 June
the year Adjustment 2015
Land & Land Development 284,464,580 - - 284,464,580 0% - - - - 284,464,580
Factory Building 44,628,827 - - 44,628,827 3% 5,119,248 1,185,287 - 6,304,535 38,324,292
Jetty Construction 22,942,513 - - 22,942,513 3% 2,631,671 609,325 - 3,240,997 19,701,516
Electric Installation 9,176,336 - - 9,176,336 7.5% 2,458,394 503,846 - 2,962,240 6,214,096
Plant & Machinery 65,606,793 - - 65,606,793 7.5%, 6% 17,576,445 3,602,276 - 21,178,721 44,428,072
Boundary Wall & Fencing 794,796 - - 794,796 5% 147,430 32,368 - 179,798 614,998
Furniture & Fixtures - - - - 10% - - - - -
Telephone & Fax Installation - - - - 15% - - - - -
Loose Tools 221,030 - - 221,030 15% 105,651 17,307 - 122,958 98,072
Motor Vehicles 3,727,938 - - 3,727,938 15% 1,781,931 291,901 - 2,073,832 1,654,106
Office Building & Shed 6,240,414 - - 6,240,414 3% 715,821 165,738 - 881,559 5,358,855
Office Equipment - - - - 15%, 20% - - - - -
Tube-Well - - - - 15% - - - - -
Air Compressor 321,990 - - 321,990 15% 153,909 25,212 - 179,121 142,869
Grinding Media 5,649,599 - - 5,649,599 33% 4,533,629 371,990 - 4,905,619 743,980
Lab Equipment 872,144 - - 872,144 10% 299,930 57,221 - 357,152 514,992
Vessel - - - - 10% - - - - -
Office Decoration - - - - 15% - - - - -
Generator Building - - - - 10% - - - - -

2015 444,646,960 - - 444,646,960 35,524,059 6,862,472 - 42,386,531 402,260,429

2014 444,646,960 - - 444,646,960 28,014,957 7,509,102 - 35,524,059 409,122,901

Grand Total 2015 6,112,324,217 790,102,502 (7,600,000) 6,894,826,719 835,859,712 346,649,009 (4,480,752) 1,178,027,969 5,716,798,750

Grand Total 2014 5,527,526,581 586,315,103 (1,517,467) 6,112,324,217 529,575,646 306,772,477 (488,411) 835,859,712 5,276,464,505

2015 2014
Taka Taka

Depreciation charge has been allocated to:

Cost of Goods Sold 285,573,563 265,553,563
Administrative Expenses 4,161,762 3,332,334
Carrying income/(loss) 5,935,905 2,311,710
Selling & Distribution Expenses 37,096,070 35,574,870
Bag plant 13,881,709 -
TOTAL 346,649,009 306,772,478

Note:
i) Name of Valuer : M/S S. F. Ahmed & Co., Chartered Accountants (Representative of ERNST & YOUNG GLOBAL in Bangladesh)
ii) Valuation method : Net asset value method.
iii) Date of Capitalization: Revaluation surplus capitalized on 01 July 2010.

71
 Premier Cement mills limited

Notes to the Consolidated Statement of Financial Position

For the year ended 30 June 2015

4.02 Leasehold:

Cost: Amount in Taka

Cost Depreciation Written down

value
Rate
Charged during Disposal/ As at 30 June
Opening Addition Disposal Closing Opening Closing 2015
the year Adjustment
Motor Vehicles 239,580,000 - - 239,580,000 15% 58,203,225 27,206,516 - 85,409,741 154,170,259
Plant & Machinery 10,100,000 - - 10,100,000 7.5% 1,782,255 623,831 - 2,406,086 7,693,914
2015 249,680,000 - - 249,680,000 59,985,480 27,830,347 - 87,815,828 161,864,172
2014 185,500,000 64,180,000 - 249,680,000 32,966,344 27,019,137 - 59,985,480 189,694,520

2015 2014
Taka Taka

Depreciation charge has been allocated to:

Cost of production 623,831 674,412
Selling & distribution expenses 27,206,516 26,344,725
TOTAL 27,830,347 27,019,137

5.00 Capital work-in-progress (WIP)

Opening capital work-in-progress 478,898,506 156,377,978
Add: Expenditure incurred during the year ( Note 5.01) 67,362,562 427,245,064
Total capital work-in-progress 546,261,068 583,623,042
Less: Capitalized during the year ( Note 5.01) 495,110,586 104,724,536
Closing capital work -in - progress 51,150,482 478,898,506

5.01

Expenditure incurred Capitalized/ transferred

Opening Closing
during the year during the year

Silo - fly ash 43,869,774 11,485,008 55,354,782 -

Bag plant 404,227,115 34,783,020 439,010,135 -
CC TV Factory - 745,669 745,669 -
Boundary Wall & Fencing 23,441,237 14,725,675 - 38,166,912
New Pontoon 7,360,380 5,923,190 - 13,283,570
Total 478,898,506 67,662,562 495,110,586 51,450,482

5.01.1 Major additions to capital work-in-progress are made for the expansion of Silo-Fly Ash & Bag plant .

72
Premier Cement mills limited Annual report 2014 - 2015

Notes to the Consolidated Statement of Financial Position

For the year ended 30 June 2015

6.00 Inventories

2015 2014
Unit measurement
Quantity Amount (Tk.) Quantity Amount (Tk.)
Clinker MT 96,581 431,497,372 126,827 655,715,770
Gypsum MT 54,641 136,892,938 50,448 133,638,619
Fly Ash MT 51,434 108,487,095 20,298 41,253,393
Slag MT 68,952 171,506,698 67,619 195,756,431
Lime Stone MT 63,306 126,303,780 54,632 97,785,071
Packing materials (P.P. & Paper Bag) Pcs 1,649,020 26,184,823 4,300,335 77,299,304
Finished goods and WIP MT 20,813 114,310,812 5,900 40,108,284
WIP- Bag Plant KG 84,575 10,053,348 - -
Stock at ghat MT 7,407 40,388,695 3,509 19,791,688
Stock in transit MT 650 3,544,399 561 3,164,053
Raw material stock for Bag Plant KG 733,338 94,044,857 7,960 1,396,755
Consumable stores Various - 40,679,147 - 16,354,251
Total - 1,303,893,964 - 1,282,263,619

6.01 Raw materials reconciliation

For 2014-15
Receipt
Opening R.M. sales at cost Closing Consumption
Import Local purchase
Quantity Quantity Quantity Amount Quantity Amount
Amount (Tk.) Amount (Tk.) Quantity (MT) Amount (Tk.) Quantity (MT) Amount (Tk.)
(MT) (MT) (MT) (Tk.) (MT) (Tk.)
Clinker 126,827 655,715,770 930,488 4,568,558,354 - - - - 96,581 431,497,372 960,734 4,792,776,752
Gypsum 50,448 133,638,619 55,994 138,948,943 - - - - 54,641 136,892,938 51,801 135,694,624
Fly Ash 20,298 41,253,393 142,056 305,081,686 13,258 21,987,590 - - 51,434 108,487,095 124,178 259,835,574
Slag 67,619 195,756,431 111,979 292,603,079 - - - - 68,952 171,506,698 110,646 316,852,812
Lime Stone 54,632 97,785,071 42,000 91,760,863 2,415 4,131,865 - - 63,306 126,303,780 35,741 67,374,019
Total 319,825 1,124,149,284 1,282,517 5,396,952,925 15,673 26,119,455 - - 334,915 974,687,883 1,283,100 5,572,533,781
Less - Duty draw back (36,907,965)
Total raw materials consumption 5,535,625,816

For 2013-14
Receipt
Opening R.M. sales at cost Closing Consumption
Import Local purchase
Quantity Quantity Quantity Amount Quantity Amount
Amount (Tk.) Amount (Tk.) Quantity (MT) Amount (Tk.) Quantity (MT) Amount (Tk.)
(MT) (MT) (MT) (Tk.) (MT) (Tk.)
Clinker 88,185 427,547,303 901,908 4,646,226,665 21,188 111,440,000 - - 126,827 655,715,770 884,454 4,529,498,198
Gypsum 27,713 73,624,284 48,000 124,639,910 - - - - 50,448 133,638,619 25,264 64,625,575
Fly Ash 61,747 117,550,798 110,713 223,296,993 11,012 20,568,778 - - 20,298 41,253,393 152,162 299,594,398
Slag 16,739 41,816,559 87,857 253,471,438 - - - - 67,619 195,756,431 36,977 99,531,566
Lime Stone 29,954 37,244,772 - - 44,016 94,573,178 - - 54,632 97,785,071 19,337 34,032,879
Total 224,338 697,783,716 1,148,478 5,247,635,006 76,216 226,581,956 - - 319,825 1,124,149,284 1,118,195 5,027,282,616
Less - Duty draw back (11,689,662)
Total raw materials consumption 5,015,592,954

73
 Premier Cement mills limited

Notes to the Consolidated Statement of Financial Position

For the year ended 30 June 2015

6.02 Packing materials reconciliation

Opening balances Local purchase Received from own factory Closing balances Consumption
Quantity (PCS) Amount (Tk.) Quantity (PCS) Amount (Tk.) Quantity (PCS) Amount (Tk.) Quantity (PCS) Amount (Tk.) Quantity (PCS) Amount (Tk.)
2015 4,300,335 77,299,304 10,127,025 192,775,918 11,600,000 174,000,000 1,649,020 26,184,823 24,378,340 417,890,399
2014 2,559,086 39,820,215 23,380,820 416,736,671 - - 4,300,335 77,299,304 21,639,571 379,257,582

2015 2014
Notes
Taka Taka

7.00 Trade & other receivables

Trade receivables:
Trade receivables (local) 1,405,684,111 1,361,371,587
Trade receivables (foreign) 5,262,894 7,672,445
1,410,947,005 1,369,044,032
Other Receivables
Debtor- Bag plant 19,929,500 -
Interest receivable on FDR 14,721,276 7,875,258
Total receivables 1,445,597,781 1,376,919,290
Less: Provision for Bad & Doubtful expenses 54,706,575 54,706,574
1,390,891,206 1,322,212,717
7.01 Ageing of trade receivables
a) Dues within 3 months 1,257,847,531 1,133,023,405
Dues over 3 months but within 6 months 119,247,394 172,145,823
Dues over 6 months 53,781,579 63,874,804
1,430,876,504 1,369,044,032
b) Provision for bad debts
Opening balance 54,706,574 33,558,682
Add :Provision for the year - 21,147,892
54,706,574 54,706,574
Less: Write off - -
Closing balance 54,706,574 54,706,574

8.00 Advances, deposits & pre-payments

Advances 1,024,664,977 894,123,595
Deposits 44,180,415 38,814,015
Prepayment 1,900,750 3,202,621
1,070,746,142 936,140,231
8.01 Advances
Advance income tax ( Note- 8.04 ) 452,836,638 454,781,684
VAT current account 54,063,928 19,345,292
Advance for office space purchase 8(b) 125,000,000 125,000,000
Advance against land 8(c) 46,114,829 44,744,329
LC Advances 102,567,056 30,974,470
Advance against Expenses 229,707,513 203,203,838
Advance to Employees 14,375,013 15,297,336
Others - 776,646
1,024,664,977 894,123,595

74
Premier Cement mills limited Annual report 2014 - 2015

Notes to the Consolidated Statement of Financial Position

For the year ended 30 June 2015

2015 2014
Notes
Taka Taka
8.02 Deposits
BOC Bangladesh LTD 20,000 20,000
Bangladesh telecommunications company ltd. 65,800 65,800
Central Dipository BD Ltd - CDBL 500,000 500,000
Dhaka electric supply authority 4,200,000 4,200,000
Munshigonj Polli Bidduth Samity 21,339,000 21,339,000
ICAB-Advance against Office Rent 1,805,580 1,805,580
Ranks telecom Limited 6,900 2,400
Tender Deposit 5,761,900 400,000
Zela Comandent & BDP Munshigong 547,078 547,078
TGSL 1,050 1,050
PDB 4,529,057 4,529,057
CPA 150,000 150,000
Deposit to TGTDCL 4,418,000 4,418,000
Bank guarantee margin to TGTDCL 836,050 836,050
44,180,415 38,814,015
8.03 Pre-payments
Store rent advance 50,000 50,000
BSTI licence fee 1,240,400 2,480,800
VAT on Closing Stock 610,350 548,658
Prepaid legal & profeesional fee-CDBL - 70,667
Prepaid insurance - 52,496
1,900,750 3,202,621
8.04 Movement of advance income tax:
Opening balance 454,781,684 328,954,081
Add : Payment during the year 220,805,352 252,261,445
675,587,036 581,215,526
Less : Advance Income Tax refund (95,844,311) -
Less : Adjustment during the year 19.00 (126,906,087) (126,433,842)
Closing balance 452,836,638 454,781,684
a) All the advances & deposits amount is considered good and recoverable.
b) The advance was paid to Rupayan Housing Estate Ltd. against purchase of 21,507 sf t office space at 11th floor of Rupayan Trade Centre, 114 K azi Nazrul Islam A venue,
Dhaka 1215.The total contract value was Tk. 179,407,400 against which Tk. 125,000,000 was paid in advance.
c) i) Initially PCML purchased the land from local land owner vide registration deed # 3503, 3504 & 3505 dt 31 O ctober 2001. Subsequently PCML came to know that the
land is khass and accordingly PCML applied to the competent authority for long term lease with recommendation from Prime Minister office (Investment Wing). Being
satisfied Ministry of Land directed Deputy Commissioner (DC), Narayangonj to give 350 Shatak land under long term lease in favour of PCML on 16.10.2006 vide letter
no. Bhu:Ma:/Sha-8/Khajob/315/ 2002/1072/1. PCML c ommunicated with DC, Nar ayangonj on man y occassions to complete the pr ocess but DC, Nar ayangonj was
reluctant to comply the order of the Ministry of Land. PCML filed a writ petition to the Honourable High Court for complience of the order of the Ministry of Land by
DC, Narayangonj (petition no. 7194 of 2009) which is currently under process. Considering the circumstances management has decided to transfer an amount of Tk.
20,259,493 from land and land development.
ii) Registration deed no. 84 dt. 06.01.05, 179 dt. 17.01.05 and 1468 dt. 14.04.05 c omprise 189 sha tak land out of which muta tion of 76.50 Sha tak Land ar e yet to be
completed. Hence proportionate amount of Tk. 5,235,405 has been transferred from land and land development.
iii) Advance against land includes Tk. 4,701,931 paid to Mr. Nur Mohammed against purchase of Land, PCML filed suits as the seller was reluctant to give registration of
the lands. The case against Nur Mohammed is yet to be disposed off.
9.00 Investment in FDR
The City Bank Ltd - 29,264,843
Standard Chartered Bank 115,831,495 107,560,919
Standard Bank Limited 1,961,986 1,778,600
Midland Bank FDR 45,000,000 45,000,000
Pubali Bank Ltd 42,251,503 -
Social Islami Bank Ltd 17,559,424 -
Trust Bank Ltd 7,258,820 -
229,863,228 183,604,362 75
 Premier Cement mills limited

Notes to the Consolidated Statement of Financial Position

For the year ended 30 June 2015

2015 2014
Notes
Taka Taka
10.00 Cash and bank balances
Cash at bank 10.01 144,918,397 110,604,259
Cash in hand 10.02 19,203,268 23,537,077
164,121,665 134,141,336
10.01 Cash at bank:
Fixed deposit receipt 26,434,782 13,617,334
Share Money Deposit - NCCBL 5,151,477 6,303,016
Current accounts 81,934,392 69,610,826
STD accounts 10,280,064 8,253,627
EFC accounts 21,117,682 12,819,456
144,918,397 110,604,259
10.02 Cash in hand:
PCML
Corporate office 8,517,086 9,191,250
Factory 3,334,029 2,803,184
Cash Factory Logistics 4,213,924 6,265,169
Registered office 354,960 624,668
16,419,999 18,884,271
NCML
Corporate office 1,098,304 850,584
Factory 1,684,965 3,802,222
2,783,269 4,652,806
19,203,268 23,537,077
11.00 Ordinary share capital
Authorized:
500,000,000 Ordinary shares of Tk. 10 each 5,000,000,000 5,000,000,000
5,000,000,000 5,000,000,000
Issued, subscribed and paid up:
105,450,000 Ordinary shares of Tk.10 each fully paid-up in cash 1,054,500,000 1,054,500,000
Share holding position:
The composition of share holders at balance sheet date was as follows:
Name of shareholders Percentage Number Face value Face value
01. Mr. Mohammed Abul Kalam 2.39% 2,525,200 25,252,000 25,252,000
02. Mr. Mohammed Amirul Haque 11.00% 11,599,500 115,995,000 115,995,000
03. Mr. Md. Jahangir Alam 10.83% 11,425,313 114,253,130 114,253,130
04. Mr. Md. Alamgir Kabir 4.19% 4,416,562 44,165,620 44,165,620
05. Mr. Mohammed Ershadul Hoque 2.00% 2,113,500 21,135,000 21,135,000
06. Mr. Mohammad Mustafa Haider 19.76% 20,837,300 208,373,000 208,373,000
07. Mr. Mohammed Zahurul Haque 2.71% 2,856,000 28,560,000 28,560,000
08. Mr. Hasnat Mohd. Abu Obida 22.16% 23,362,500 233,625,000 233,625,000
09. Mrs. Nashira Sultana 3.45% 3,643,080 36,430,800 36,430,800
10. Mr. Md. Almas Shimul 3.32% 3,504,375 35,043,750 35,043,750
11. Mr. Md. A. Rouf 1.11% 1,168,125 11,681,250 11,681,250
12. Mr. Md. Ashrafuzzaman 1.11% 1,168,125 11,681,250 11,681,250
13. Mr. Md. Salahuddin (Roman) 1.59% 1,680,000 16,800,000 16,800,000
14. Mr. Md. Zahur Ahmed 2.52% 2,656,920 26,569,200 26,569,200
15. Mr. Mohammed Raquibul Haque 0.47% 493,500 4,935,000 4,935,000
16. Affected Small Investors 2.28% 2,400,000 24,000,000 24,000,000
17. General Investors 6.83% 7,200,000 72,000,000 72,000,000
18. Mutual Fund 1.14% 1,200,000 12,000,000 12,000,000
19. Non-Resident Bangladeshi 1.14% 1,200,000 12,000,000 12,000,000
76 100.00% 105,450,000 1,054,500,000 1,054,500,000
Premier Cement mills limited Annual report 2014 - 2015

Notes to the Consolidated Statement of Financial Position

For the year ended 30 June 2015

11.01 The company increased its paid-up capital from 934,500,000 to 1,054,500,000 through issuance of 12,000,000 ordinary shares of Tk. 10.00
each to general public as per special r esolution at its Extra-ordinary General Meeting held on May 06, 2010 and subsequen t resolution of
the Board of Directors’ meeting held on April 12, 2012.
11.02 Classification of shareholders by holdings

Shareholding Range No. of Holders 30.06.2015 Holdings Share 30.06.2015 No. of Holders 30.06.2014 Holdings Share 30.06.2014
Less than 500 Shares 2957 623,523 3,562 778,800
501 to 5,000 Shares 926 1,489,885 1,267 1,971,600
5,001 to 10,000 Shares 79 624,225 148 959,200
10,001 to 20,000 Shares 40 582,266 83 1,019,000
20,001 to 30,000 Shares 20 485,874 25 595,600
30,001 to 40,000 Shares 4 143,187 8 264,400
40,001 to 50,000 Shares 11 498,923 6 260,200
50,001 to 100,000 Shares 12 823,261 23 1,499,200
100,001 to 1,000,000 Shares 16 5,867,642 15 5,145,500
Over 1,000,000 shares 15 94,311,214 14 92,956,500
4,080 105,450,000 5,151 105,450,000

2015 2014
Taka Taka

12.00 Non-controlling interest

Opening balance 76,919,251 71,965,958
Add: 4% Shares of profit of PPGL 1,988,648 2,152,290
Add: 60% Shares of profit of NCML 3,022,767 2,801,004
81,930,666 76,919,251
Less: Adjustments during the year - -
Closing balance 81,930,666 76,919,251
13.00 Deferred tax liabilities
The tax effect of temporary differences that resulted in deferred tax assets or liabilities
Opening balance 309,978,565 357,981,444
Add: Deferred tax expense/(income) during the year (9,836,205) (48,002,879)
Closing balance 300,142,360 309,978,565

13.01 Reconciliation of deferred tax liabilities/(assets)

(a) As at 30 June 2015

Temporary
Carrying amount Tax base
difference
Taka Taka Taka
Property, plant and equipment 3,337,822,429 2,000,765,878 1,337,056,551
Provision for gratuity (81,780,538) - (81,780,538)
Provision for bad and doubtful debts (54,706,574) - (54,706,574)
Net taxable temporary difference 3,201,335,317 2,000,765,878 1,200,569,439
Deferred tax liability 300,142,360
(b) As at 30 June 2014
Property, plant and equipment 2,973,940,381 1,732,250,981 1,241,689,400
Provision for gratuity (59,788,044) - (59,788,044)
Provision for bad and doubtful debts (54,706,574) - (54,706,574)
Net taxable temporary difference 2,859,445,764 1,732,250,981 1,127,194,783
Deferred tax liability 309,978,565 77
 Premier Cement mills limited

Notes to the Consolidated Statement of Financial Position

For the year ended 30 June 2015

2015 2014
Taka Taka
14.00 Long term loan
BRAC Bank Ltd. 277,775,970 349,520,850
Loan for Bag Plant Machinery -LC 0014 - 268,944,000
City Bank Ltd Corp TL (50 crre) 496,341,694 -
HSBC USD Loan 232,540,462 -
IDLC Finance Ltd.(40 crore) 390,284,644 -
Dutch-Bangla Bank Limited 368,428,417 470,208,092
Jamuna Bank Limited 29,706,855 34,971,064
Lease finance - Jamuna Bank Ltd. 54,028,889 63,445,463
Lease finance - ULC 152,241,328 88,499,674
2,001,348,259 1,275,589,143
14.01 USD Foreign Loan from BRAC Bank Ltd. is repayable in 16 quarterly installment. Rate of interest is 3 Month LIBOR + 4.00%. Security details:
(a) Registered mortgage over property (b) Personal guarantee of selected directors.
14.02 USD Foreign Loan from HSBC L td. is r epayable in 17 quar terly installment. Rate of in terest is 3M onth LIBOR + 4.5%. S ecurity details: (a)
Registered mortgage over property (b) Personal guarantee of selected directors.
14.03 Allocation of long term loan
Long term portion 1,506,723,099 980,171,867
Current portion 494,625,160 295,417,276
2,001,348,259 1,275,589,143
14.04 Upto year ending 30 June 2014 the entire long term and current portion of long term loan of National Cement Mills Limited was shown under
the head of long term loan (Tk. 505,179,156). The presentation has been changed during the year ending on 30 June 2015 (including restating
the comparative figure) showing the long term loan (TK. 398,135,272) and current portion of long term loan (Tk. 107,043,884) seperately.

15.00 Defined benefit obligations (Gratuity)

Opening balance 59,788,044 40,458,734
Add :Provision for the year 24,249,743 19,702,812
84,037,787 60,161,546
Less: Payment made 2,257,248 373,502
Closing balance 81,780,538 59,788,044
16.00 Trade & other payables
Raw materials & other suppliers 20,450,741 22,491,907
Packing materials 13,030,596 75,065,096
Marketing expenses 3,432,170 750,932
Liabilities for expenses 216,932,061 78,533,676
Provision for Gas Bill 1,624,867 1,563,294
Payable for electric bill - 11,880,721
Provision for Utility- HO 350,600 -
Payable on audit fee including VAT 517,500 379,500
Provision for PF 521,247 796,707
Dividend Payable 1,714,820 1,582,400
Provision for Stevadoring charges - 389,511
Provision for Survey charges 297,000 210,825
Provision for carrying 12,600,000 -
VAT Payable on office rent - ICAB - 54,167
Vat -Fuel & Lubricant- Factory 25,400 -
Vat Payable -Godown Rent (Noapara) 1,350 -
VAT- Repairs & Maintenance- Factory 27,060 -
AIT Payable 1,598,409 679,741
TDS payable 878,817 918,946
Provision and other payable 75,795,154 84,285,669
349,797,791 279,583,090
78 All trade & other payable were incurred as usual in business operation & paid regularly.
Premier Cement mills limited Annual report 2014 - 2015

Notes to the Consolidated Statement of Financial Position

For the year ended 30 June 2015

2015 2014
Taka Taka

17.00 Short term bank loan

The City Bank Limited 124,699,396 569,032,693
Dutch-Bangla Bank Ltd. 736,947,956 1,530,307,538
Standard Bank Limited (587,913) 302,781,630
Standard Chartered Bank 646,391,733 1,113,908,134
HSBC (1,453,658) 257,082,407
Prime Bank Limited 209,589,864 217,473,433
NCC Bank Limited (12,919,489) 195,142,497
Social Islami Bank Limited 393,371,854 99,700,000
Midland Bank Ltd 30,839,123 40,763,951
Jamuna Bank -Loan 86,319,482 -
Pubali Bank Ltd 879,994,067 -
Brac Bank Ltd 500,727,073 -
Trust Bank Ltd 219,681,207 -
3,813,600,695 4,326,192,283
17.01 Bank loan facilities

The company is currently availing the following facilities from banks:

Limit (Taka in crore)

Bank name Invoice Financing / Import Duty
L/C OD/CC LATR / LTR
Loan
The City Bank Ltd. 50.00 41.00 4.00 38.00
Dutch-Bangla Bank Ltd. - 120.00 15.00 60.00
Standard Bank Ltd. 8.00 40.00 3.00 -
Standard Chartered Bank 50.00 50.00 3.00 50.00
HSBC 26.00 65.00 5.00 22.00
NCC Bank Limited 3.00 30.00 7.00 20.00
Prime Bank Ltd. 12.00 60.00 5.00 25.00
BRAC Bank Ltd. 35.00 48.00 2.00 48.00
Jamuna Bank Ltd. 10.00 50.00 5.00 10.00
Social Islami Bank Ltd 10.00 40.00 - 20.00
Pubali Bank Ltd - 50.00 - 20.00
Trust Bank Ltd - 45.00 3.00 15.00
Midland bank Ltd. - - 4.50 -
IDLC - - - 40.00
Total 204.00 639.00 56.50 368.00

17.02 Securities against bank loan facilities

* Personal guarantee from all directors.
* Hypothecation over stock.
* First ranking pari passu charges over fixed assets.

18.00 Liability for other finance

Security deposit - Customers 76,714,212 70,420,750
76,714,212 70,420,750
79
 Premier Cement mills limited

Notes to the Consolidated Statement of Financial Position

For the year ended 30 June 2015

2015 2014
Notes
Taka Taka

19.00 Provision for taxation

Opening balance 143,060,493 35,817,469
Add : Current tax expenses
Current year 46,414,850 143,060,493
Prior year (13,952,755) 90,616,373
32,462,095 233,676,866
175,522,588 269,494,335
Less : Payment made (200,000) -
Less : AIT adjustment (Note-8.04) (126,906,087) (126,433,842)
Closing balance 48,416,501 143,060,493

19.01 Reconciliation of effective tax rate of PCML

Rate
Profit before tax 431,543,492 694,776,204
Total income tax expense 7.52% 32,462,095 233,676,866
Profit excluding income tax 399,081,397 461,099,338

Factors affecting the tax charge for current period:

Income tax using the Company’s domestic tax rate 25.00% 107,885,873 191,063,456
Non-deductible expenses 2.54% 10,961,280 22,942,252
Excess of tax depreciation over accounting depreciation -14.10% (60,828,269) (52,736,089)
Exempted for export -0.06% (270,593) (667,876)
Under/(over) provided in prior year -3.23% (13,952,755) 90,616,373
Exempted income-PPGL -2.85% (12,279,049) (14,796,991)
Tax / Rate adjustment for Associate 0.22% 945,607 (2,744,326)
7.52% 32,462,094 233,676,799

20.00 Revenue

Quantity
Revenue from local sales MT 1,213,980 7,852,407,648 7,445,293,753
Revenue from export MT 42,015 246,293,504 94,281,229
1,255,995 8,098,701,152 7,539,574,982

21.00 Cost of sales

Opening stock of finished goods & WIP 63,064,025 40,726,054
Add : Cost of production 21.01 6,954,943,241 6,265,978,833
Goods available for sale 7,018,007,266 6,306,704,887
Less : Closing stock of finished goods, ghat & in transit 6.00 (158,243,906) (63,064,025)
6,859,763,360 6,243,640,862

80
Premier Cement mills limited Annual report 2014 - 2015

Notes to the Consolidated Statement of Financial Position

For the year ended 30 June 2015

2015 2014
Notes
Taka Taka

21.01 Cost of production

Raw materials consumption 6.01 5,535,625,816 5,015,592,954
Packing materials consumption 6.02 417,890,399 379,257,582
Contribution to PF 2,963,943 2,340,965
Depreciation 4.00 286,197,394 266,227,975
Electric Charges 439,230,116 341,025,981
Entertainment 1,430,786 990,494
Repairs & maintenance 48,671,481 55,473,330
Fire insurance 939,087 780,556
Lab expenses 1,174,504 1,137,684
Computer expenses 352,977 201,690
Legal & Professional Fee 7,376,129 2,602,881
Fuel, oil & lubricants 3,777,712 4,923,596
Gas bill 15,055,867 20,800,323
Gratuity 10,613,452 8,389,232
Labour charges 29,281,039 27,340,966
Medical expenses 407,116 343,186
Misc. expenses 1,241,632 967,419
Paper & periodicals 8,730 8,050
Pay loader expenses 4,030,096 3,012,045
Internet expenses 221,199 90,820
Postage & Stamp 5,489 7,349
Gift & presentations 519,000 139,745
Canteen & food expenses 11,187,423 11,140,835
Salary & wages 127,598,867 113,809,421
Stationery 1,835,505 1,472,959
Telephone charges 1,353,911 1,178,199
Travelling & conveyance 2,528,954 3,289,297
Land Revenue, Rate & Insurance - Factory 12,500 250,786
Fooding Expenses Fac 1,474,430 1,601,988
Accommodation Expenses Factory 320,268 305,460
Donation & Subscription 905,225 288,900
Consmable stores - 214,828
Picnic Expenses - 408,514
Carrying Charges -Factory 712,195 362,822
6,954,943,241 6,265,978,833

22.00 Other income /(loss)

Bank interest income 23,213,394 39,993,182
Exchange gain (loss) (1,556,947) 14,622,459
Gain on sales of motor vehicles (824,135) (334,056)
Misc income - H/O 24,454 389,611
Misc. income - Factory 4,448,527 3,356,439
Income/(loss) from carrying 83,412,635 126,578,085
Income /(Loss) from Bag Plant 3,104,496 -
Rental Income from GP 114,000 114,000
111,936,424 184,719,720

81
 Premier Cement mills limited

Notes to the Consolidated Statement of Financial Position

For the year ended 30 June 2015

2015 2014
Taka Taka

23.00 Administrative expenses

Audit fee 431,250 373,750
Advertisement 821,820 -
Bad & doubtful expenses - 21,147,892
Contribution to PF 1,110,144 888,072
Directors’ remuneration 2,400,000 2,400,000
Donation & subscription 1,834,487 600,396
Electric charges 2,613,454 2,453,348
Canteen & food expenses 2,422,552 2,427,654
Entertainment 5,562 9,417
Gratuity 3,157,297 3,838,013
Training expenses 120,824 131,052
Office rent 8,236,878 9,339,219
Computer expenses 867,983.00 327,244
Medical expenses 767 10,647
Paper & periodicals 17,890 18,225
Postage & stamp 162,061 327,361
IPO expenses 192,000 140,000
Internet expenses 2,105,065 714,618
Renewal, legal & professional fee 6,173,833 5,234,614
Repairs & maintenance 1,318,286 873,984
Salary & allowances 35,663,334 30,648,568
Stationery 1,134,748 1,463,993
Telephone charges 1,432,920 1,526,093
Travelling & conveyance 8,531,009 6,920,090
Vehicle maintenance - 4,759,449
Water charges 203,543 313,083
Guest House Expense 447,688 270,388
Misc Expenses -Admin 1,810,095 1,859,689
AGM Expenses 1,088,872 1,017,925
BIWTA Licence fee - 4,158,536
BSTI Licence fee 1,240,400 1,240,400
Board meeting expenses 147,500 -
Enviornmental Licence Renewal fee - 346,800
Depreciation ( Note - 4.00 ) 4,161,762 3,332,334
89,854,024 109,112,854

82
Premier Cement mills limited Annual report 2014 - 2015

Notes to the Consolidated Statement of Financial Position

For the year ended 30 June 2015

2015 2014
Notes
Taka Taka

24.00 Selling & distribution expenses

Advertisement 2,020,170 1,293,837
Car maintenance - 3,241,023
Consultancy fee - 238,639
Contribution to PF 1,879,932 1,495,514
Entertainment 272,296 249,446
Export expenses 1,589,138 809,600
Godown expenses 885,533 737,000
Gratuity 10,478,995 7,475,567
Legal & professional fee 331,047 -
Medical expenses 43,376 162,708
Internet Expenses- Sales 165,323 67,047
Postage & stamp 582,047 257,979
Promotional expenses 145,767,768 102,960,883
Salaries & allowances 84,878,167 62,323,627
Sample / test expenses 1,140,886 442,395
Stationery 348,823 254,238
Telephone charges 3,535,133 2,714,266
Travelling & conveyance 28,403,852 15,759,920
Halkata Expenditure - 50,000
Labour Charge 3,300,914 2,029,557
Vehicle Licence Renewal & Insurance 733,023 370,333
CSR Activities 77,000 586,486
Tender expenses 2,262,085 -
Depreciation 4.00 64,302,587 61,919,595
352,998,095 265,439,660

25.00 Finance costs

Bank charge 2,928,512 4,200,443
Interest on WPPF 10,124,563 7,861,431
Finance charges on lease 31,961,523 18,961,792
Bank loan interest 411,779,011 346,770,680
456,793,609 377,794,346

26.00 Basic earnings per share (EPS)

The computation of EPS is given below :
Earnings attributable to the ordinary shareholders (NPAT) 403,906,188 504,148,924
Number of shares outstanding during the year 105,450,000 105,450,000
Basic earnings per share (par value of Tk. 10) 3.83 4.78
Diluted EPS
No diluted EPS was required to be calculated for the year since there was no scope for dilution of share during the year under review.

27.00 Related party disclosure

During the period the Company carried out a number of transactions with related parties in the normal course of business on an arms’ length basis.
Names of those related parties, nature of those transactions and their total value have been set out in ac cordance with the provisions of BAS-24:
Related Party Disclosures.

83
 Premier Cement mills limited

Notes to the Consolidated Statement of Financial Position

For the year ended 30 June 2015

Outstanding as on Transaction during the Outstanding as on

Nature of 01.07.2014 year (net) 30.06.2015
Name of related party Nature of transaction Terms and conditions
relationship
Taka Taka Taka
Common
Asia Insurance Ltd. Providing insurance (3,140,326) - (3,140,326) Arm length transaction
directorship
Common
Seacom Shipping Ltd C&F (2,243,438) 2,734,085 490,647 Arm length transaction
directorship
Common
T K Oil Refinery Ltd. Utility service (167,918) 75,898 (92,020) Arm length transaction
directorship
Common
Aryan Stevedore Ltd. Stevedoring service (14,657,071) 20,608,280 5,951,209 Arm length transaction
directorship
Common
G P H Ispat Ltd. Materials supply (480) - (480) Arm length transaction
directorship
Note : Figures in bracket at closing date represent payables.

28.00 Events after the reporting period

The Board of Directors of the company in its meeting held on 23 September 2015 recommended 20% cash dividend for the year 2014-2015 which
is subject to approval of the shareholders in the ensuing Annual General Meeting.
2015 2014
Taka Taka

29.00 Contingent liabilities

There are contingent liabilities in respect of outstanding letters of credit for Tk. 481milion & bank guarantee Tk. 8.84 milion
Letter of Credit
The City Bank Limited 54,514,736 128,314,474
Dutch Bangla Bank Limited 54,514,736 21,376,285
The Hongkong And Shanghai Banking Corporation Limted 89,448,391 23,289,000
Prime Bank Limited 46,825,911 8,110,300
SIBL 2,322,345 -
Standard Bank Limited - 35,107,403
Pubali Bank Ltd 25,202,301 -
Standard Chartered Bank 208,097,998 161,686,936
480,926,418 377,884,398
Bank Guarantee
Standard bank limited 8,836,000 8,836,000
8,836,000 8,836,000
489,762,418 386,720,398
30.00 Capital expenditure commitment
There is no unprovided committed expenditure as at 30 June 2015
31.00 Remittance of foreign currency
No foreign currency was remitted during the year.
32.00 Earnings in foreign currency
Export of 42,015 MT Cement were made in 2014-15 to Indian state of Tripura & Assam and as deemed export in Bangladesh for US$ 32,02,237.50
equvalent to BDT 246,293,504 .

33.00 Claims against the company not acknowledged as debt

There is no claim against the company acknowledged as debt.
84
Premier Cement mills limited Annual report 2014 - 2015

Notes to the Consolidated Statement of Financial Position

For the year ended 30 June 2015

34.00 Capacity utilization

34.01 Cement :
Actual average monthly production is 104,666.25 MT against average monthly capacity of 235,000 MT i.e. capacity utilization is 44.54%.
2015 2014
Taka Taka

35.00 Number of employees

Persons Persons
Management 69 83
Staff 1,137 1,091
Total number of employees 1,206 1,174
All employees received salary more than Tk. 4,000 per month.

36.00 Financial risk management

International F inancial R eporting Standar d IFRS 7 - F inancial I nstruments: Disclosur es - r equires disclosur e of inf ormation r elating t o: both
recognised and unrecognised financial instruments, their significance and performance, accounting policies, terms and conditions, net fair values
and risk information- the Group’s policies for controlling risks and exposures.
The managemen t has o verall r esponsibility f or the establishmen t and o versight of the g roup’s r isk managemen t fr amework. The g roup’s r isk
management policies are established to identify and analyse the risks faced by the group, to set appropriate risk limits and controls, and to monitor
risks and adherence to limits. Risk management policies, procedures and systems are reviewed regularly to reflect changes in mar ket conditions
and the group’s activities. This note presents information about the group’s exposure to each of the following risks, the group’s objectives, policies
and processes for measuring and managing risk, and the group’s management of capital. The company has exposure to the following risks from its
use of financial instruments.
a) Credit risk
b) Liquidity risk
c) Market risk

36.01 Credit risk

Credit risk is the r isk of a financial loss to the g roup if a cust omer or c ounterparty to a financial instrument fails t o meet its c ontractual
obligations, and arises principally from the group’s receivables from distributors, institutional and export customers etc.
Management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis.
In monitoring credit risk, debtors are grouped according to their r isk profile, i.e. their legal sta tus, financial condition, ageing pr ofile etc.
Accounts receivable are related to sale of cement & empty cement bag.
The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the statement of financial position.

85
 Premier Cement mills limited

Notes to the Consolidated Statement of Financial Position

For the year ended 30 June 2015

2015 2014
Taka Taka

a) Exposure to credit risk

The car rying amoun t of financial assets represents the maximum cr edit exposur e. The maximum exposur e t o cr edit r isk a t the
reporting date was:
Trade receivable
Local customers 1,425,613,611 1,361,371,587
Foreign customers 5,262,894 7,672,445
Advance, deposit and prepayments 1,024,664,977 894,123,595
Cash and bank balances 164,121,665 134,141,336
2,619,663,147 2,397,308,963

The maximum exposure to credit risk for accounts receivable as at 30 June by geographic regions was:
Bangladesh 1,425,613,611 1,361,371,587
Asia 5,262,894 7,672,445
1,430,876,505 1,369,044,032
b) Ageing of receivables
Dues within 3 months 1,257,847,531 1,133,023,405
Dues over 3 months but less than 6 months 119,247,394 172,145,823
Dues over 6 months 53,781,579 63,874,804
1,430,876,504 1,369,044,032
c) Impairment losses
Opening balance 54,706,574 33,558,682
Provision during the year - 21,147,892
Reversal/Adjustment during the year - -
Closing balance 54,706,574 54,706,574

86
Premier Cement mills limited Annual report 2014 - 2015

Notes to the Consolidated Statement of Financial Position

For the year ended 30 June 2015

d) Credit exposure by credit rating as on 30 June 2015

Credit rating Amount Percentage (%)
Trade receivable NR 1,430,876,505 54.62%
Advance, deposit and prepayments NR 1,024,664,977 39.11%
Cash and bank balances
Cash in hand 19,203,268 0.73%
Cash at bank 144,918,397 5.53%
AB Bank Ltd AA3 804,252 0.55%
Al-Arafah Islami Bank Ltd. AA2 671,767 0.46%
Bank Asia Ltd. AA3 10,308,520 7.11%
BRAC Bank Ltd AA3 - 0.00%
City Bank Ltd AA3 29,487,824 20.35%
Dhaka Bank Ltd A1 - 0.00%
Dutch Bangla Bank Ltd AA1 241,238 0.17%
Eastern Bank Ltd AA 624,601 0.43%
Hongkong Shanghai Banking Corp. AAA 97,481 0.07%
IFIC Bank Ltd. AA3 2,017,957 1.39%
Islami Bank Bangladesh Ltd AA+ 7,047,414 4.86%
Jamuna Bank Ltd. A1 4,255,149 2.94%
Mercantile Bank Ltd. AA- 4,500,729 3.11%
Midland Bank Ltd A+ - 0.00%
Mutual Trust bank Ltd. AA- 14,765 0.01%
National Bank Ltd. AA- 2,786,450 1.92%
NCC Bank Ltd. AA 6,729,015 4.64%
One Bank Limited. AA- 1,129,341 0.78%
Premier Bank Ltd. AA 1,125,206 0.78%
Prime Bank Limited. AA+ 15,610,167 10.77%
Pubali Bank Ltd. AA 8,610,655 5.94%
Shahjalal Islami Bank Ltd AA 2,032,508 1.40%
Social Islami Bank Ltd. AA- 21,379,272 14.75%
Sonali Bank Ltd. AAA 7,349,576 5.07%
Southeast Bank Ltd AA- 3,254,102 2.25%
Standard Bank Ltd. AA3 2,406,566 1.66%
State Bank of India AA3 2,193,930 1.51%
Trust Bank Ltd. AA- 3,034 0.00%
United Commercial Bank Ltd. A+ 5,602,646 3.87%
Uttara Bank Ltd. AA3 4,634,232 3.20%

36.02 Liquidity risk

Liquidity risk is the risk that the group will not be able to meet its financial obligations as they fall due. The group’s approach to managing
liquidity (cash and cash equivalents) is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due,
under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the group’s reputation. Typically,
the group ensures that it has sufficient cash and cash equivalents to meet expected operational expenses, including financial obligations
through preparation of the cash flow forecast, based on time line of payment of financial obligations and accordingly arrange for sufficient
liquidity/fund to make the expec ted payments within due da tes. Moreover, the g roup seeks t o maintain short term lines of cr edit with
scheduled commercial banks to ensure payment of obligation in the event that there is insufficient cash to make the required payment. The
requirement is determined in advance through cash flow projections and credit lines with banks are negotiated accordingly.
In extreme stressed conditions, the group may get support from the subsidiary and associate company in the form of inter-company loan.

87
 Premier Cement mills limited

Notes to the Consolidated Statement of Financial Position

For the year ended 30 June 2015

The following are the contractual maturities of financial liabilities:

Carrying amount Nominal Interest Contractual cash flows Within 6 months or less Within 6-12 months
Category of Liabilities Maturity period
Taka rate Taka Taka Taka
Trade and other payables 349,797,791 Dec. 2015 N/A 349,797,791 349,797,791 -
Short term bank loan 3,813,600,695 Dec. 2015 10%~15% 3,813,600,695 3,813,600,695 -
Current portion of long term loan 494,625,160 June 2016 10%~15% 494,625,160 247,312,580 247,312,580
Liability for other finance 76,714,212 June 2016 N/A 76,714,212 38,357,106 38,357,106
Contribution to WPPF 19,684,997 March 2016 N/A 19,684,997 - 19,684,997

36.03 Market risk

Market risk is the risk that any change in market prices, such as foreign exchange rates and interest rates will affect the group’s income or
the value of its holdings of financial instruments
a) Currency risk
The group is exposed to currency risk on certain revenues and purchases such as clinker, gypsum, slag, fly ash, lime stone and equipment
purchases. Majority of the g roup’s foreign currency transactions are denominated in USD and r elate to procurement of capital it ems
from abroad. The group maintains USD bank accounts where 50% of export proceeds are deposited and certain import payments and
foreign currency loan installment & interest theiron are made there from.
2015 2014
USD USD

i) Exposure to currency risk

Foreign currency monetary assets and liabilities
Assets

Trade receivables 67,638 176,306

Cash at bank 271,401 165,135
339,038 341,441
Liabilities
Trade and other payables Nil Nil
Net exposure
The following significant exchange rates are applied during the year:
Exchange rate of US Dollar 77.81 77.63

(ii) Foreign exchange rate sensitivity analysis for foreign currency expenditures
A strengthening or weakening of the Taka, as indicated below, against the USD a t 30 June would have increased/(decreased)
equity and profit or loss by the amounts shown below. This analysis is based on foreign currency exchange rate variances that
the Group considered to be reasonably possible at the reporting date. The analysis assumes that all other variables, in particular
interest rates, remain constant. The analysis is performed on the same basis for 2014, albeit that the reasonably possible foreign
exchange rate variances were different, as indicated below:

Strengthening profit/(loss) Weakening profit/(loss)

Sensitivity for foreign currency expenditures
Taka Taka
At 30 June 2015 USD (339,038) 339,038

b) Interest rate risk

Interest rate risk is the risk that arises due to changes in interest rates on borrowings. Short term bank borrowings are, however,
not significantly affected by fluctuations in interest rates. The group has not entered into any type of derivative instrument in
88 order to hedge interest rate risk as at the reporting date.
Premier Cement mills limited Annual report 2014 - 2015

Notes to the Consolidated Statement of Financial Position

For the year ended 30 June 2015

(i) Profile
As at 30 June, the interest rate risk profile of the group’s interest bearing financial instruments was:
2015 2014
Carrying amount Carrying amount
Fixed rate instrument
Financial asset 271,296,999 211,357,490
Financial liability 5,814,948,954 5,601,781,426
Variable rate instrument
Financial asset Nil Nil
Financial liability Nil Nil
(ii) Cash flow sensitivity analysis for variable rate instruments
There being no variable rate instruments, sensitivity analysis has not presented.

36.04 Accounting classification and fair value

Fair value of financial assets and liabilities together with carrying amount shown in the statement of financial position are as follows:
Carrying amount Fair value
Taka Taka
Assets carried at fair value through profit and loss Nil Nil
Held to maturity assets
Short term investment 41,433,771 41,433,771
Loans and receivables
Trade and other receivable 1,390,891,206 1,390,891,206
Advances, deposits & pre-payments 1,070,746,142 1,070,746,142
Cash and bank balances 164,121,665 164,121,665
Available for sale financial assets Nil Nil
Liabilities carried at fair value through profit and loss Nil Nil
Liabilities carried at amortised cost
Trade and other payables 349,797,791 *N/A
Short term bank loan 3,813,600,695 *N/A
Long term loan 1,506,723,099 *N/A
Current portion of long term loan 494,625,160 *N/A
Liability for other finance 76,714,212 *N/A
Contribution to WPPF 19,684,997 *N/A
* D etermination of fair v alue is not r equired as per the r equirements of IFRS/BFRS 7 : F inancial I nstruments: Disclosur es (r ef: Para 29).
However, fair value of such instruments is not likely to be significantly different from the carrying amounts of such instruments.

2015 2014
Taka Taka

37.00 Others
37.01 Directors’ remuneration
Salary, allowances and benefits 2,400,000 2,400,000
2,400,000 2,400,000
37.02 Directors’ fees for attending board meeting
Tk. 10,000 paid to each director for attending board meetings.
37.03 Receivable from director
No amount is lying as receivable from the directors.
89
 Premier Cement mills limited

Notes to the Consolidated Statement of Financial Position

For the year ended 30 June 2015

2015 2014
Taka Taka

37.04 Net asset value( NAV ) per share

Net Assets 3,397,844,255 3,305,276,653

Number of ordinary shares outstanding 105,450,000 105,450,000
Net asset value( NAV ) per share 32.22 31.34

37.05 Interests in subsidiaries

The group does not have any unconsolidated structured entity.

There has been no changes in ownership interest in a subsidiary which may have resulted in loss of control.

Company Secretary Director Managing Director

Place: Dhaka
Dated: 23 September 2015

90
Premier Cement mills limited Annual report 2014 - 2015

Statement of Financial Position

As at 30 June 2015

2015 2014
Notes
Taka Taka

ASSETS
Non-current assets
Property, plant and equipment 1.00 4,320,954,889 3,911,694,883
Capital work -in - progress 2.00 - 448,096,889
Investment in subsidiary 3.01 48,000,000 48,000,000
Investment in associate 4.01 350,000,000 350,000,000
4,718,954,889 4,757,791,772
Current Assets
Inventories 5.00 990,529,590 1,113,538,860
Trade and other receivables 6.00 1,201,309,891 1,152,000,264
Advances, deposits and pre-payments 7.00 935,201,384 844,260,411
Current account with subsidiary 3.02 (55,902,280) 1,873,427
Current account with associate 4.02 162,803,938 225,799,378
Investment in FDR 8.00 213,507,899 183,604,362
Cash and bank balances 9.00 155,427,059 124,393,878
3,602,877,481 3,645,470,579
Total assets 8,321,832,369 8,403,262,352
EQUITY AND LIABILITIES
Equity
Share capital 10.00 1,054,500,000 1,054,500,000
Revaluation reserve 351,893,241 356,868,533
Share Premium 441,835,000 441,835,000
Retained earnings 1,299,131,032 1,236,291,569
3,147,359,273 3,089,495,103
Non-current liabilities
Deferred tax liabilities/(assets) 11.00 300,142,360 309,978,565
Long term loan 12.03 1,243,317,057 582,036,595
Defined benefit obligations (Gratuity) 13.00 81,780,538 59,788,044
1,625,239,955 951,803,204
Current-liabilities
Trade and other payables 14.00 205,436,496 231,037,652
Short term bank loan 15.00 2,848,426,782 3,697,742,634
Current portion of long term loan 12.03 359,895,930 188,373,392
Liability for other finance 16.00 72,514,212 70,420,750
Contribution to WPPF 19,684,997 33,530,776
Provision for taxation 17.00 43,274,725 140,858,842
3,549,233,141 4,361,964,046
Total liabilities 5,174,473,096 5,313,767,249
Total equity and liabilities 8,321,832,369 8,403,262,352
The annexed notes 01 to 34 form an integral part of these financial statements.

Company Secretary Director Managing Director

As per our report of same date.

Place: Dhaka Hussain Farhad & Co.

Dated: 23 September 2015 Chartered Accountants 91
 Premier Cement mills limited

Statement of Comprehensive Income

For the year ended 30 June 2015

2015 2014
Notes
Taka Taka

Revenue 18.00 7,133,420,289 6,819,174,802

Cost of sales 19.00 (6,033,283,166) (5,650,972,418)
Gross profit 1,100,137,123 1,168,202,384

Other income/(loss) 20.00 117,214,262 223,787,536

Administrative expenses 21.00 (77,251,458) (99,865,164)
Selling & distribution expenses 22.00 (340,296,379) (258,224,703)
Profit before interest and tax 799,803,548 1,033,900,053

Finance costs 23.00 (386,418,616) (329,753,749)

Contribution to WPPF (19,684,997) (33,530,776)
Profit before tax 393,699,935 670,615,528

Current tax expenses 17.00 (29,321,970) (220,359,832)

Deferred tax income/(expenses) 11.00 9,836,205 48,002,879
Profit for the year 374,214,171 498,258,575

Other comprehensive income

Revaluation of property, plant & equipment - -
Income tax on other comprehensive income - -
Total comprehensive income for the year 374,214,171 498,258,575

Basic earnings per share (par value of Taka 10) 24.00 3.55 4.73

The annexed notes 01 to 34 form an integral part of these financial statements.

Company Secretary Director Managing Director

As per our report of same date.

Place: Dhaka Hussain Farhad & Co.

Dated: 23 September 2015 Chartered Accountants

92
Premier Cement mills limited Annual report 2014 - 2015

Statement of Changes in Equity

For the year ended 30 June 2015

Amount in Taka

Share capital Share premium Revaluation reserve Retained earnings Share money deposit Total equity

Balance at 30 June 2013 1,054,500,000 441,835,000 362,312,633 1,154,388,895 - 3,013,036,528

Net profit for the year - - - 498,258,575 - 498,258,575
Depreciation on revalued assets - - (5,444,099) 5,444,099 - -
Issue of new share - - - - - -
Dividend Paid - - - (421,800,000) - (421,800,000)
Tax on share premium - - - - - -
Balance at 30 June 2014 1,054,500,000 441,835,000 356,868,533 1,236,291,569 - 3,089,495,103
Net profit for the year - - - 374,214,171 - 374,214,171
Depreciation on revalued assets - - (4,975,292) 4,975,292 - -
Issue of new share - - - - - -
Dividend Paid - - - (316,350,000) - (316,350,000)
Tax on share premium - - - - - -

Balance at 30 June 2015 1,054,500,000 441,835,000 351,893,241 1,299,131,032 - 3,147,359,274

Revaluation surplus amounting to Tk.49,75,292 has been transfered to retained earnings for the difference between depreciation based on the revalued carrying amount of
the asset and depreciation based on the assets original cost. The amount has been netted off for tax.

Company Secretary Director Managing Director

Place: Dhaka
Dated: 23 September 2015

93
 Premier Cement mills limited

Statement of Cash Flows

For the year ended 30 June 2015

2015 2014
Taka Taka

Cash flows from operating activities

Receipt from customers 7,090,956,678 6,678,974,531
Payment to employees (257,304,585) (240,888,623)
Payment to suppliers & others (5,688,763,901) (5,537,613,798)
Cash generated from operating activities 1,144,888,192 900,472,110

Other income 95,682,911 171,236,196

Interest paid (382,824,641) (333,666,333)
Dividend Paid (317,365,110) (378,181,440)
Advance income tax refund 95,844,311
Tax paid (181,456,221) (223,502,497)

A. Net cash from operating activities 454,769,442 136,358,036

Cash flows from investing activities
Purchase of property, plant & equipment (211,856,388) (267,367,306)
Sale of property, plant & equipment 2,295,113 695,000
Capital work-in-progress (WIP) - (370,882,235)
Loan from subsidiary 57,775,707 48,884,889
Increase/(decrease) in loans & others (62,995,440) 376,212,618
Investment with associates - (280,000,000)
Investment in FDR (29,903,537) (53,032,892)
B. Net cash used in investing activities (244,684,545) (545,489,926)
Cash flows from financing activities
Proceeds against IPO
Proceeds against Share Money Payable (154,604) (5,565,948)
Proceeds from bank borrowing 7,259,689,420 6,319,315,113
Repayment of bank borrowing (7,885,289,720) (6,206,526,278)
From other finance 2,093,462 8,905,600
From Leasing Finance 525,000,000 74,580,000
Repayment of lease finance (80,390,274) (56,560,147)
C. Net cash from financing activities (179,051,716) 134,148,340
Net Increase in cash and bank balances 31,033,181 (274,983,551)
Cash and bank balances at the beginning of the year 124,393,878 399,377,429
Cash and bank balances at the end of the year 155,427,059 124,393,878

Company Secretary Director Managing Director

Place: Dhaka
Dated: 23 September 2015

94
Premier Cement mills limited Annual report 2014 - 2015

Notes to the Statement of Financial Position

For the year ended 30 June 2015

2015 2014
Taka Taka

1.00 Property, plant and equipment:

Freehold ( Note - 1.01 ) 4,159,090,716 3,722,000,363
Leasehold ( Note - 1.02 ) 161,864,172 189,694,519
4,320,954,889 3,911,694,883

1.01 Freehold :
Cost :
Amount in Taka

Cost Depreciation Written

down value
Rate
Charged during Disposal/ As at 30 June
Opening Addition Disposal Closing Opening Closing 2015
the year Adjustment
Land & Land Development 653,289,922 45,377,958 - 698,667,880 0% - - - - 698,667,880
Factory Building 540,748,328 181,281,360 - 722,029,688 3% 37,536,867 17,815,564 - 55,352,431 666,677,257
Jetty Construction 35,915,177 11,396,007 - 47,311,184 3% 3,515,686 1,142,925 - 4,658,611 42,652,573
Electric Installation 112,882,629 30,813,621 - 143,696,250 7.5% 16,345,146 8,395,822 - 24,740,968 118,955,282
Plant & Machinery 1,951,582,670 342,565,354 - 2,294,148,024 7.5% 264,812,261 139,353,981 - 404,166,243 1,889,981,781
Boundary Wall & Fencing 5,889,790 299,500 - 6,189,290 5% 988,112 252,571 - 1,240,684 4,948,606
Furniture & Fixtures 5,260,194 2,282,772 - 7,542,966 10% 1,017,827 538,375 - 1,556,202 5,986,764
Telephone & Fax Installation 1,046,390 - - 1,046,390 15% 327,216 107,876 - 435,092 611,298
Loose Tools 667,445 - - 667,445 15% 197,622 70,473 - 268,095 399,350
Motor Vehicles 277,883,596 36,047,041 (7,600,000) 306,330,637 15% 96,189,631 29,957,623 (4,480,752) 121,666,502 184,664,135
Office Building & Shed 7,786,155 833,557 - 8,619,712 3% 663,932 226,170 - 890,102 7,729,610
Office Equipment 12,565,281 3,594,949 - 16,160,230 15% 3,026,491 1,700,440 - 4,726,931 11,433,299
Tube-Well 574,931 237,400 - 812,331 15% 117,990 86,346 - 204,336 607,995
Air Compressor 7,907,415 - 7,907,415 15% 2,581,888 798,829 - 3,380,717 4,526,698
Grinding Media 65,134,156 230,650 - 65,364,806 33% 32,207,797 11,013,895 - 43,221,692 22,143,114
Lab Equipment 2,134,856 90,000 - 2,224,856 10% 592,400 158,746 - 751,146 1,473,710
Vessel 106,725,000 7,798,333 - 114,523,333 10% 24,511,867 8,611,230 - 33,123,097 81,400,236
Portable Cement Silo 5,785,000 5,184,550 - 10,969,550 3% 159,468 246,534 - 406,002 10,563,548
Office Decoration 3,766,129 60,000 - 3,826,129 15% 766,026 454,515 - 1,220,542 2,605,587
Software 937,500 - - 937,500 10% 46,875 89,063 135,938 801,563
2015 3,798,482,564 668,093,052 (7,600,000) 4,458,975,616 485,605,103 221,020,979 (4,480,752) 702,145,330 3,756,830,286
2014 3,528,921,589 271,078,442 (1,517,467) 3,798,482,564 279,138,513 206,955,002 (488,411) 485,605,104 3,312,877,460

Note:
i) Disposal of property, plant and equipment : Motor vehicles were disposed off which had original cost of Tk. 76,00,000, accumulated depreciation of
Tk. 44,80,752. The sales price was fixed through negotiation.

95
 Premier Cement mills limited

Notes to the Statement of Financial Position

For the year ended 30 June 2015

Revaluation:
Amount in Taka
Cost Depreciation Written down
Charged value
Rate Disposal/
Opening Addition Disposal Closing Opening during the Closing As at 30 June
Adjustment 2015
year
Land & Land Development 284,464,580 - - 284,464,580 0% - - - - 284,464,580
Factory Building 44,628,827 - - 44,628,827 3% 5,119,247 1,185,287 - 6,304,535 38,324,292
Jetty Construction 22,942,513 - - 22,942,513 3% 2,631,671 609,325 - 3,240,996 19,701,517
Electric Installation 9,176,336 - - 9,176,336 7.5% 2,458,394 503,846 - 2,962,240 6,214,096
Plant & Machinery 65,606,793 - - 65,606,793 7.5% 17,576,444 3,602,276 - 21,178,720 44,428,073
Boundary Wall & Fencing 794,796 - - 794,796 5% 147,430 32,368 - 179,798 614,998
Furniture & Fixtures - - - - 10% - - - - -
Telephone & Fax Installation - - - - 15% - - - - -
Loose Tools 221,030 - - 221,030 15% 105,651 17,307 - 122,958 98,072
Motor Vehicles 3,727,938 - - 3,727,938 15% 1,781,931 291,901 - 2,073,832 1,654,106
Office Building & Shed 6,240,414 - - 6,240,414 3% 715,820 165,738 - 881,558 5,358,856
Office Equipment - - - - 15% - - - - -
Tube-Well - - - - 15% - - - - -
Air Compressor 321,990 - - 321,990 15% 153,909 25,212 - 179,121 142,869
Grinding Media 5,649,599 - - 5,649,599 33% 4,533,629 371,990 - 4,905,619 743,980
Lab Equipment 872,144 - - 872,144 10% 299,930 57,221 - 357,152 514,992
Vessel - - - - 10% - - - - -
Office Decoration - - - - 15% - - - - -
Generator Building - - - - 15% - - - - -
2015 444,646,960 - - 444,646,960 35,524,057 6,862,472 - 42,386,529 402,260,431
2014 444,646,960 - - 444,646,960 28,014,955 7,509,102 - 35,524,057 409,122,903
Grand total 2015 4,243,129,524 668,093,052 (7,600,000) 4,903,622,576 521,129,161 227,883,451 (4,480,752) 744,531,860 4,159,090,716
Grand total 2014 3,973,568,549 271,078,442 (1,517,467) 4,243,129,524 307,153,468 214,464,104 (488,411) 521,129,161 3,722,000,363

2015 2014
Taka Taka

Depreciation charge has been allocated to:

Cost of production 173,074,763 175,724,481
Administrative expenses 3,950,193 3,223,422
Selling & distribution expenses 36,976,786 35,516,201
Bag plant 13,881,709 -
Total 227,883,451 214,464,105

Note:
i) Name of Valuer : M/S S. F. Ahmed & Co., Chartered Accountants (Representative of ERNST & YOUNG GLOBAL in Bangladesh)
ii) Valuation method : Net asset value method.
iii) Date of Capitalization: Revaluation surplus capitalized on 01 July 2010.
iv) CIF value of capital assets: No capital assets were imported under CIF basis.

96
Premier Cement mills limited Annual report 2014 - 2015

Notes to the Statement of Financial Position

For the year ended 30 June 2015

1.02 Leasehold :

Cost :
Amount in Taka
Cost Depreciation Written down
value
Rate Charged
Disposal/ As at 30 June
Opening Addition Disposal Closing Opening during the Closing
Adjustment 2015
year
Motor Vehicles 239,580,000 - 239,580,000 15% 58,203,225 27,206,516 - 85,409,741 154,170,259
Plant & Machinery 10,100,000 - 10,100,000 7.5% 1,782,255 623,831 - 2,406,086 7,693,914
2015 249,680,000 - - 249,680,000 59,985,480 27,830,347 - 87,815,828 161,864,172
2014 185,500,000 64,180,000 - 249,680,000 32,966,344 27,019,137 - 59,985,481 189,694,519

2015 2014
Taka Taka

Cost of production 623,831 674,412

Selling & distribution expenses 27,206,516 26,344,725
27,830,347 27,019,137

2.00 Capital work-in-progress (WIP)

Opening capital work-in-progress 448,096,889 73,468,802
Add: Expenditure incurred during the year ( Note 2.01) 47,013,697 374,628,087
Total capital work-in-progress 495,110,586 448,096,889
Less: Capitalized during the year ( Note 2.01) 495,110,586 -
Closing capital work-in- progress - 448,096,889

2.01

Balance as at Capitalized/ transferred Balance as at

Particulars Addition during the year
01 July 2014 during the year 30 June 2015

Silo - fly ash 43,869,774 11,485,008 55,354,782 -

Bag plant 404,227,115 34,783,020 439,010,135 -
CC TV Factory - 745,669 745,669 -
Total 448,096,889 47,013,697 495,110,586 -

2.01.1 Major additions to capital work-in-progress are made for Bag Plant & Fly Ash Silo

3.00 Investment and current account with subsidiary

3.01 Investment with subsidiary

Premier Cement Mills Limited is the owner of 4,80,000 shares of Tk 100 each out of 5,00,000 shares of Tk 100 each i.e. 96% shares of Premier
Power Generation Limited which is engaged in Producing electricity dedicatedly for Premier Cement Mills Limited.

3.02 Current account with subsidiary

The current account balance is representing the net transaction with Premier Power Generation Limited for payment of loan Installment,
gas bill, electric charges and other expenses which are made-up of as follows :
97
 Premier Cement mills limited

Notes to the Statement of Financial Position

For the year ended 30 June 2015

2015 2014
Taka Taka
Opening balance 1,873,427 50,758,316
Add : Payment during the year - 42,942,065
Add : Interest changes during the year - 4,919,403
1,873,427 98,619,784
Less : Adjustment against electric charges 57,775,707 96,746,357
Closing balance (55,902,280) 1,873,427

4.00 Investment and current account with associate

4.01 Investment with associate
Premier Cement M ills Limited is the o wner of 7,000,000 shar es of Tk 10 each out of 17,500,000 shar es of Tk 10 each i.e . 40% shar es of
National Cement Mills Limited. PCML invested Tk. 28 crore against issue of right share (1:4) offer letter dated 17th April 2014.
Current position of the investment is as follows:
Opening balance 350,000,000 70,000,000
Investment during the year - 280,000,000.0
Closing balance 350,000,000 350,000,000

4.02 Current account with associate

The current account balance is representing the net transaction with National Cement Mills Limited for payment of expenses for Balancing,
Modernisation, Rehabilitation and Expansion, loan installment and other expenses. PCML charged interest on current balances @ 9% p.a.
which are made-up of as follows :
Opening balance 225,799,378 252,491,147
Add : Payment / adjustment during the year - -
Add : Interest charged during the year 20,050,710 47,631,937
245,850,088 300,123,084
Less : Adjustment 83,046,150 74,323,706
Closing balance 162,803,938 225,799,378

5.00 Inventories

2015 2014
Measuring unit
Quantity Amount (Tk.) Quantity Amount (Tk.)
Clinker MT 56,100 260,352,227 101,726 536,160,573
Gypsum MT 49,724 127,546,915 49,789 132,083,260
Fly Ash MT 48,695 104,555,423 19,344 39,563,183
Slag MT 41,195 114,481,306 63,563 185,789,035
Lime Stone MT 55,118 112,160,995 43,711 78,236,137
Packing materials (P.P. & Paper Bag) Pcs 1,432,046 22,539,313 4,212,833 75,750,288
Finished goods and WIP MT 13,672 70,072,733 5,900 31,245,792
WIP- Bag Plant KG 84,575 10,053,348 - -
Stock at ghat MT 7,407 40,388,695 3,509 19,791,688
Stock in transit MT 650 3,544,399 561 3,164,053
Raw material stock for Bag Plant KG 733,338 94,044,857 7,960 1,396,755
Consumable stores Various - 30,789,379 - 10,358,096
Total 990,529,590 1,113,538,860

98
Premier Cement mills limited Annual report 2014 - 2015

Notes to the Statement of Financial Position

For the year ended 30 June 2015

5.01 Raw materials reconciliation

For 2014-15
Receipt
Opening R.M. sales at cost Closing Consumption
Import Local purchase
Quantity Amount Quantity Quantity Amount Quantity Amount Quantity Amount Quantity
Amount (Tk.) Amount (Tk.)
(MT) (Tk.) (MT) (MT) (Tk.) (MT) (Tk.) (MT) (Tk.) (MT)
Clinker 101,726 536,160,573 797,236 3,960,997,714 - - - - 56,100 260,352,227 842,862 4,236,806,060
Gypsum 49,789 132,083,260 46,100 118,588,759 - - - - 49,724 127,546,915 46,165 123,125,104
Fly Ash 19,344 39,563,183 142,056 305,081,686 - - - - 48,695 104,555,423 112,705 240,089,446
Slag 63,563 185,789,035 80,800 229,463,497 - - - - 41,195 114,481,306 103,168 300,771,226
Lime Stone 43,711 78,236,137 33,000 76,300,791 2,414.50 4,131,865 - - 55,118 112,160,995 24,008 46,507,798
Total 278,134 971,832,188 1,099,192 4,690,432,447 2,415 4,131,865 - - 250,833 719,096,866 1,128,908 4,947,299,634
Less - Duty draw back & VAT Loss/(Gain) (36,907,965)
Total raw materials consumption 4,910,391,669
For 2013-14
Receipt
Opening R.M. sales at cost Closing Consumption
Import Local purchase
Quantity Amount Quantity Quantity Amount Quantity Amount Quantity Amount Quantity
Amount (Tk.) Amount (Tk.)
(MT) (Tk.) (MT) (MT) (Tk.) (MT) (Tk.) (MT) (Tk.) (MT)
Clinker 78,768 384,051,387 802,458 4,171,183,590 21,188 111,440,000 - - 101,726 536,160,573 800,688 4,130,514,404
Gypsum 26,964 71,729,125 43,500 113,953,792 - - - - 49,789 132,083,260 20,674 53,599,657
Fly Ash 59,176 114,059,748 99,701.00 202,728,215 - - - - 19,344 39,563,183 139,533 277,224,780
Slag 14,235 35,964,590 82,857 240,865,639 - - - - 63,563 185,789,035 33,529 91,041,194
Lime Stone 27,082 34,749,562 - - 25,645 59,041,209 - - 43,711 78,236,137 9,015 15,554,634
Total 206,225 640,554,412 1,028,516 4,728,731,236 46,833 170,481,209 - - 278,134 971,832,188 1,003,440 4,567,934,669
Less - Duty draw back (11,689,662)
Total raw materials consumption 4,556,245,007
5.02 Packing materials reconciliation

Opening balances Local purchase Received from own factory Closing Balance Consumption
Quantity (PCS) Amount (Tk.) Quantity (PCS) Amount (Tk.) Quantity (PCS) Amount (Tk.) Quantity (PCS) Amount (Tk.) Quantity (PCS) Amount (Tk.)
2015 4,212,833 75,750,288 6,958,825 138,877,154 11,600,000 174,000,000 1,432,046 22,539,313 21,339,612 366,088,129
2014 2,503,246 38,889,640 21,087,620 376,383,007 - - 4,212,833 75,750,288 19,378,033 339,522,359
2015 2014
Taka Taka

6.00 Trade & others receivable

Trade receivables
Trade receivables (local) 1,216,102,796 1,191,159,134
Trade receivables (foreign) 5,262,894 7,672,445
1,221,365,690 1,198,831,579
Others receivable
Debtor- Bag plant 19,929,500 -
Interest receivable on FDR 14,721,276 7,875,258
Total receivables 1,256,016,466 1,206,706,837
Less: Provision for Bad & Doubtful expenses 54,706,575 54,706,574
1,201,309,891 1,152,000,264
99
 Premier Cement mills limited

Notes to the Statement of Financial Position

For the year ended 30 June 2015

2015 2014
Notes
Taka Taka

6.01 Ageing of trade receivables

Dues within 3 months 1,162,847,531 1,133,023,405
Dues over 3 months but within 6 months 24,666,080 1,933,370
Dues over 6 months 53,781,579 63,874,804
Total 1,241,295,190 1,198,831,579
a) Provision for bad debts
Opening balance 54,706,574 33,558,682
Add :Provision for the year - 21,147,892
54,706,574 54,706,574
Less: Write off - -
Closing balance 54,706,574 54,706,574
b) There is no such debt due by or to directors or other officers of the Company.
7.00 Advances, deposits & pre-payments:
Advances 899,053,326 812,176,882
Deposits 34,247,308 28,880,908
Pre-payments 1,900,750 3,202,621
935,201,384 844,260,411
7.01 Advances
Advance income tax ( Note- 7.04 ) 374,945,673 416,239,850
VAT current account 44,307,577 12,396,046
Advance for office space purchase 7(b) 125,000,000 125,000,000
Advance against land 7(c) 30,196,829 30,196,829
LC Advances 100,471,076 24,599,020
Advance against expenses 210,239,158 188,916,801
Advance to employees 13,893,013 14,828,336
899,053,326 812,176,882

7.02 Deposits
BOC Bangladesh LTD 20,000 20,000
Bangladesh telecommunications company ltd. 65,800 65,800
Central Dipository BD Ltd - CDBL 500,000 500,000
Dhaka electric supply authority 4,200,000 4,200,000
Munshigonj Polli Bidduth Samity 21,339,000 21,339,000
ICAB-Advance against Office Rent 1,805,580 1,805,580
Ranks telecom Limited 6,900 2,400
Tender Deposit 5,761,900 400,000
Zela Comandent & BDP Munshigong 547,078 547,078
TGSL 1,050 1,050
34,247,308 28,880,908
7.03 Pre-payments
Store rent advance 50,000 50,000
BSTI licence fee 1,240,400 2,480,800
VAT on Closing Stock 610,350 548,658
Prepaid legal & profeesional fee-CDBL - 70,667
Prepaid insurance - 52,496
1,900,750 3,202,621
100
Premier Cement mills limited Annual report 2014 - 2015

Notes to the Statement of Financial Position

For the year ended 30 June 2015

2015 2014
Notes
Taka Taka

7.04 Movement of advance income tax

Opening balance 416,239,850 303,868,940
Add : Payment during the year 181,456,221 223,502,497
597,696,071 527,371,437
Less : Advance Income Tax refund (95,844,311) -
Less : Adjustment during the year (Note-17.00) (126,906,087) (111,131,587)
Closing balance 374,945,673 416,239,850
a) All the advances & deposits amount is considered good and recoverable.
b) The advance was paid to Rupayan Housing Estate Ltd. against purchase of 21,507 sft office space at 11th floor of Rupayan Trade Centre,
114 K azi Nazrul Islam A venue, Dhak a 1215.The total contract value was Tk. 179,407,400 against which Tk. 125,000,000 w as paid in
advance.
c) i) Initially PCML purchased the land from local land owner vide registration deed # 3503, 3504 & 3505 dt 31 October 2001. Subsequently
PCML came t o k now tha t the land is k hass and ac cordingly PCML applied t o the c ompetent author ity f or long t erm lease with
recommendation from Prime Minister office (Investment Wing). Being satisfied Ministry of Land directed Deputy Commissioner (DC),
Narayangonj to give 350 Shatak land under long term lease in favour of PCML on 16.10.2006 vide letter no. Bhu:Ma:/Sha-8/Khajob/315/
2002/1072/1. PCML c ommunicated with DC, Nar ayangonj on man y oc cassions t o c omplete the pr ocess but DC, Nar ayangonj w as
reluctant to comply the or der of the M inistry of Land . PCML filed a writ petition t o the Honour able H igh Court for complience of
the order of the M inistry of Land b y DC, Nar ayangonj (petition no . 7194 of 2009) which is cur rently under pr ocess. Considering the
circumstances management has decided to transfer an amount of Tk. 20,259,493 from land and land development.
ii) Registration deed no. 84 dt. 06.01.05, 179 dt. 17.01.05 and 1468 dt. 14.04.05 c omprise 189 shatak land out of which muta tion of
76.50 Shatak Land ar e yet to be completed. Hence proportionate amount of Tk. 5,235,405 has been tr ansferred from land and
land development.
iii) Advance against land includes Tk. 4,701,931 paid to Mr. Nur Mohammed against purchase of Land, PCML filed suits as the seller
was reluctant to give registration of the lands. The case against Nur Mohammed is yet to be disposed off.

8.00 Investment in FDR

The City Bank Ltd - 29,264,843
Standard Chartered Bank 115,831,495 107,560,919
Standard Bank Limited 1,961,986 1,778,600
Pubali Bank Ltd 25,896,174 -
Social Islami Bank Ltd 17,559,424 -
Trust Bank Ltd 7,258,820 -
Midland Bank FDR 45,000,000 45,000,000
213,507,899 183,604,362

9.00 Cash and bank balances

Cash at bank 9.01 139,007,060 105,509,607
Cash in hand 9.02 16,419,999 18,884,271
155,427,059 124,393,878

9.01 Cash at bank:

Fixed deposit receipt 26,434,782 13,617,334
Share Money Deposit - NCCBL 5,151,477 6,303,016
Current accounts 76,023,055 64,516,175
STD accounts 10,280,064 8,253,627
EFC accounts 21,117,682 12,819,456
139,007,060 105,509,607
101
 Premier Cement mills limited

Notes to the Statement of Financial Position

For the year ended 30 June 2015

2015 2014
Taka Taka
9.02 Cash in hand:
Corporate office 8,517,086 9,191,250
Factory 3,334,029 2,803,184
Cash Factory Logistics 4,213,924 6,265,169
Registered office 354,960 624,668
16,419,999 18,884,271
10.00 Share capital
Authorized:
500,000,000 Ordinary shares of Tk. 10 each 5,000,000,000 5,000,000,000
5,000,000,000 5,000,000,000
Issued, subscribed and paid up
105,450,000 Ordinary shares of Tk.10 each fully paid-up in cash 1,054,500,000 1,054,500,000
Share holding position
The composition of share holders at balance sheet date was as follows:
Name of shareholders Percentage Number Face value Face value
01. Mr. Mohammed Abul Kalam 2.39% 2,525,200 25,252,000 25,252,000
02. Mr. Mohammed Amirul Haque 11.00% 11,599,500 115,995,000 115,995,000
03. Mr. Md. Jahangir Alam 10.83% 11,425,313 114,253,130 114,253,130
04. Mr. Md. Alamgir Kabir 4.19% 4,416,562 44,165,620 44,165,620
05. Mr. Mohammed Ershadul Hoque 2.00% 2,113,500 21,135,000 21,135,000
06. Mr. Mohammad Mustafa Haider 19.76% 20,837,300 208,373,000 208,373,000
07. Mr. Mohammed Zahurul Haque 2.71% 2,856,000 28,560,000 28,560,000
08. Mr. Hasnat Mohd. Abu Obida 22.16% 23,362,500 233,625,000 233,625,000
09. Mrs. Nashira Sultana 3.45% 3,643,080 36,430,800 36,430,800
10. Mr. Md. Almas Shimul 3.32% 3,504,375 35,043,750 35,043,750
11. Mr. Md. A. Rouf 1.11% 1,168,125 11,681,250 11,681,250
12. Mr. Md. Ashrafuzzaman 1.11% 1,168,125 11,681,250 11,681,250
13. Mr. Md. Salahuddin (Roman) 1.59% 1,680,000 16,800,000 16,800,000
14. Mr. Md. Zahur Ahmed 2.52% 2,656,920 26,569,200 26,569,200
15. Mr. Mohammed Raquibul Haque 0.47% 493,500 4,935,000 4,935,000
16. Affected Small Investors 2.28% 2,400,000 24,000,000 24,000,000
17. General Investors 6.83% 7,200,000 72,000,000 72,000,000
18. Mutual Fund 1.14% 1,200,000 12,000,000 12,000,000
19. Non-Resident Bangladeshi 1.14% 1,200,000 12,000,000 12,000,000
Total 100.00% 105,450,000 1,054,500,000 1,054,500,000
10.01 Classification of shareholders by holdings

Shareholding Range No. of Holders 30.06.2015 Holdings Share 30.06.2015 No. of Holders 30.06.2014 Holdings Share 30.06.2014
Less than 500 Shares 2,957 623,523 3,562 778,800
501 to 5,000 Shares 926 1,489,885 1,267 1,971,600
5,001 to 10,000 Shares 79 624,225 148 959,200
10,001 to 20,000 Shares 40 582,266 83 1,019,000
20,001 to 30,000 Shares 20 485,874 25 595,600
30,001 to 40,000 Shares 4 143,187 8 264,400
40,001 to 50,000 Shares 11 498,923 6 260,200
50,001 to 100,000 Shares 12 823,261 23 1,499,200
100,001 to 1,000,000 Shares 16 5,867,642 15 5,145,500
Over 1,000,000 shares 15 94,311,214 14 92,956,500
102 Total 4,080 105,450,000 5,151 105,450,000
Premier Cement mills limited Annual report 2014 - 2015

Notes to the Statement of Financial Position

For the year ended 30 June 2015

2015 2014
Taka Taka

11.00 Deferred tax liabilities/(assets)

The tax effect of temporary differences that resulted in deferred tax assets or liabilities
Opening balance 309,978,565 357,981,444
Add: Deferred tax expense/(income) during the year (9,836,205) (48,002,879)
Add: Deferred tax on revalued amount - -
Closing balance 300,142,360 309,978,565

11.01 Reconciliation of deferred tax liabilities/(assets)

(a) As at 30 June 2015

Carrying amount Tax base Temporary difference
Taka Taka Taka
Property, plant and equipment 3,337,822,429 2,000,765,878 1,337,056,551
Provision for gratuity (81,780,538) - (81,780,538)
Provision for bad and doubtful debts (54,706,574) - (54,706,574)
Total 3,201,335,317 2,000,765,878 1,200,569,439
Deferred tax liability 300,142,360
(b) As at 30 June 2014
Carrying amount Tax base Temporary difference
Taka Taka Taka

Property, plant and equipment 2,973,940,381 1,732,250,981 1,241,689,400

Provision for gratuity (59,788,044) - (59,788,044)
Provision for bad and doubtful debts (54,706,574) - (54,706,574)
Total 2,859,445,764 1,732,250,981 1,127,194,783
Deferred tax liability 309,978,565

12.00 Long term loan

BRAC Bank Ltd. 277,775,970 349,520,850
Loan for Bag Plant Machinery -LC 0014 - 268,944,000
City Bank Ltd Corp TL (50 crre) 496,341,694 -
HSBC USD Loan 232,540,462 -
IDLC Finance Ltd.(40 crore) 390,284,644 -
Lease finance - Jamuna Bank Ltd. 54,028,889 63,445,463
Lease finance - ULC 152,241,328 88,499,674
1,603,212,987 770,409,987

12.01 USD Foreign Loan from BRAC Bank Ltd. is repayable in 16 quarterly installment. Rate of interest is 3Month LIBOR + 4.00%. Security details:
(a) Registered mortgage over property (b) Personal guarantee of selected directors.

12.02 USD Foreign Loan from HSBC L td. is r epayable in 17 quar terly installment. Rate of in terest is 3M onth LIBOR + 4.5%. S ecurity details: (a)
Registered mortgage over property (b) Personal guarantee of selected directors.

12.03 Allocation of long term loan

Long term portion 1,243,317,057 582,036,595
Current portion 359,895,930 188,373,392
1,603,212,987 770,409,987
103
 Premier Cement mills limited

Notes to the Statement of Financial Position

For the year ended 30 June 2015

2015 2014
Taka Taka

13.00 Defined benefit obligations (Gratuity)

Opening balance 59,788,043 40,458,734
Add :Provision for the year 24,249,743 19,702,812
84,037,786 60,161,546
Less: Payment made 2,257,248 373,502
Closing balance 81,780,538 59,788,044

14.00 Trade & other payables

Raw materials & other suppliers 20,450,744 22,491,907
Packing materials 13,030,596 75,065,096
Marketing expenses 3,432,170 750,932
Liabilities for expenses 93,887,079 50,243,812
Payable for electric bill - 11,880,721
Provision for Utility- HO 350,600 -
Provision for carrying 12,600,000 -
Payable on audit fee including VAT 287,500 230,000
Provision for PF 521,247 796,707
Dividend Payable 1,714,820 1,582,400
Provision for Stevadoring charges - 389,511
Provision for Survey charges 297,000 210,825
VAT Payable 53,810 -
TDS payable 878,817 918,946
Provision and other payable 57,932,113 66,422,628
205,436,496 231,037,652
All trade & other payable were incurred as usual in business operation & paid regularly.

15.00 Short term bank loan

The City Bank Limited 124,699,396 569,032,693
Dutch-Bangla Bank Ltd. 187,812,838 1,001,023,047
Standard Bank Limited (587,913) 302,781,630
Standard Chartered Bank 646,391,733 1,113,908,134
HSBC (1,453,658) 257,082,407
Prime Bank Limited 209,589,864 217,473,433
NCC Bank Limited (12,919,489) 95,977,339
Social Islami Bank Limited 393,371,854 99,700,000
Midland Bank Ltd 30,839,123 40,763,951
Jamuna Bank -Loan 86,319,482 -
Pubali Bank Ltd 463,955,272 -
Brac Bank Ltd 500,727,073 -
Trust Bank Ltd 219,681,207 -
2,848,426,782 3,697,742,634

104
Premier Cement mills limited Annual report 2014 - 2015

Notes to the Statement of Financial Position

For the year ended 30 June 2015

15.01 Bank loan facilities

The company currently availing the following facilities from banks:

Limit (Taka in crore)

Bank name
STL / Invoice Financing /
L/C OD / CC LATR /Long Term Loan/ Lease
Import Duty Loan
The City Bank Ltd. 50 41 4 38
Dutch-Bangla Bank Ltd. - 120 15 60
Standard Bank Ltd. 8 40 3 -
Standard Chartered Bank 50 50 3 50
HSBC 26 65 5 22
NCC Bank Limited 3 30 7 20
Prime Bank Ltd. 12 60 5 25
BRAC Bank Ltd 35 48 2 48
Jamuna Bank Ltd. 10 50 5 10
Social Islami Bank Ltd. 10 40 - 20
Pubali Bank Ltd - 50 - 20
Trust Bank Ltd - 45 3 15
Midland bank Ltd. - - 5 -
IDLC - - - 40
Total 204 639 57 368

15.02 Securities against bank loan facilities

* Personal guarantee from all directors.
* Hypothecation over stock.
* First ranking pari passu charges over fixed assets.
2015 2014
Taka Taka

16.00 Liability for other finance

Security deposit - Customers 72,514,212 70,420,750
72,514,212 70,420,750
17.00 Provision for taxation
Opening balance 140,858,842 31,630,597
Add : Current tax expenses
Current year 43,274,725 140,858,842
Prior year (13,952,755) 79,500,990
29,321,970 220,359,832
170,180,812 251,990,429
Less : Payment made - -
Less : AIT adjustment (Note-7.04) (126,906,087) (111,131,587)
Closing balance 43,274,725 140,858,842

105
 Premier Cement mills limited

Notes to the Statement of Financial Position

For the year ended 30 June 2015

18.00 Revenue

Measuring 2015 2014

Particulars
unit Quantity Amount Quantity Amount
Revenue from local sales MT 1,063,548 6,887,126,785 967,911 6,724,893,573
Revenue from export MT 42,015 246,293,504 16,500 94,281,229
1,105,563 7,133,420,289 984,411 6,819,174,802
18.01 Revenue from export

2015 2014
USD BDT USD BDT
Export 3,202,238 246,293,504 1,225,680 94,281,229
2015 2014
Notes
Taka Taka
19.00 Cost of sales
Opening stock of finished goods & WIP 54,201,533 40,726,054
Cost of production 19.01 6,093,087,460 5,664,447,897
Goods available for sale 6,147,288,993 5,705,173,951
Closing stock of finished goods , ghat & in transit 5.00 (114,005,827) (54,201,533)
6,033,283,166 5,650,972,418
19.01 Cost of production
Raw materials consumption 5.01 4,910,391,669 4,556,245,007
Packing materials consumption 5.02 366,088,129 339,522,359
Salary & wages 101,061,800 90,807,860
Gratuity 10,613,452 8,389,232
Electric charges 439,396,127 397,033,201
Paper & periodicals 6,980 7,430
Travelling & conveyance 1,643,008 2,777,122
Telephone charges 1,070,930 1,025,518
Entertainment 1,018,676 520,594
Repairs & maintenance 32,852,418 46,541,174
Contribution to PF 2,963,943 2,340,965
Lab Expenses 761,359 753,634
Computer Expense 352,977 201,690
Legal & Professional Fee 7,260,225 1,196,858
Medical expenses 381,251 282,465
Canteen & food expenses 11,187,423 11,140,835
Gift & presentations - 36,510
Internet Expenses 219,159 90,820
Postage & Stamp 4,421 3,149
Stationery 1,670,970 1,362,859
Fire insurance 939,087 144,914
Labour charges 23,335,870 21,470,274
Misc. expenses 729,230 214,110
Pay loader expenses 756,826 460,218
Donation & Subscription 905,225 288,900
Fuel , Oil & Lubricant 3,777,712 4,551,096
Picnic Expenses - 408,514
Land Tax - 231,695
Depreciation ( Note - 1.00 ) 173,698,594 176,398,893
106 6,093,087,460 5,664,447,897
Premier Cement mills limited Annual report 2014 - 2015

Notes to the Statement of Financial Position

For the year ended 30 June 2015

2015 2014
Taka Taka

20.00 Other income / (loss)

Bank interest income 22,925,363 39,993,182
Exchange gain / (loss) (2,561,649) 14,622,459
Interest charged to PPGL - 4,919,403
Interest charged to NCML 20,050,710 47,631,937
Gain / (Loss) on sale of motor vehicle (824,135) (334,056)
Misc income - H/O 12,250 389,611
Misc. income - Factory 4,448,527 3,276,439
Income /Loss from Bag Plant 3,104,496 -
Income/(loss) from carrying 70,058,700 113,288,561
117,214,262 223,787,536

21.00 Administrative expenses

Audit fee 287,500 230,000
Advertisement 821,820 -
Bad & doubtful expenses - 21,147,892
Electric charges 2,613,454 2,453,348
Canteen & food expenses 2,234,329 2,239,844
Gratuity 3,157,297 3,838,013
Computer expenses 867,983 327,244
Medical Expense 767 10,647
Office rent 7,676,878 8,779,219
Paper & periodicals 17,890 18,225
Postage & stamp 150,891 322,531
Donation & subscription 1,834,487 600,396
Internet Expenses 2,105,065 714,618
IPO Expenses 192,000 140,000
Renewal, legal & professional fee 4,570,829 3,913,870
Repairs & maintenance 1,318,286 873,984
Salary & allowances 27,689,127 24,803,216
Directors’ remuneration 2,400,000 2,400,000
Stationery 1,097,100 1,413,000
Telephone charges 1,321,304 1,374,508
Training expenses 120,824 131,052
Travelling & conveyance 8,146,775 6,625,841
Contribution to PF 1,110,144 888,072
Vehicle maintenance - 4,759,449
Water charges 203,543 313,083
AGM Expenses 1,088,872 1,017,925
Miscellaneous expenses 886,200 1,560,029
BIWTA Licence fee - 4,158,536
BSTI Licence fee 1,240,400 1,240,400
Enviornmental Licence Renewal fee - 346,800
Board meeting expenses 147,500 -
Depreciation ( Note - 1.00 ) 3,950,193 3,223,422
77,251,458 99,865,164

107
 Premier Cement mills limited

Notes to the Statement of Financial Position

For the year ended 30 June 2015

2015 2014
Taka Taka

22.00 Selling & distribution expenses

Advertisement 1,845,870 1,293,407
Car maintenance - 3,241,023
Consultancy fee - 238,639
Contribution to PF 1,879,932 1,495,514
Entertainment 234,465 249,446
Export expenses 1,589,138 809,600
Godown expenses 885,533 737,000
Gratuity 10,478,995 7,475,567
Legal & professional fee 331,047 -
Medical expenses 10,171 22,708
CSR Activities 77,000 586,486
Internet Expenses 165,323 67,047
Postage & stamp 578,547 257,979
Promotional expenses 144,644,603 102,729,986
Salaries & allowances 78,980,688 58,469,422
Sample / test expenses 1,140,886 442,395
Stationery 299,943 218,968
Telephone charges 3,279,882 2,634,753
Travelling & conveyance 27,428,969 15,393,837
Tender expenses 2,262,085 -
Depreciation ( Note - 1.00 ) 64,183,302 61,860,926
340,296,379 258,224,703

23.00 Financial expenses

Bank charges 1,805,323 2,925,985
Interest on WPPF 10,124,563 7,861,431
Finance charges on lease 31,961,523 18,961,792
Bank loan interest 342,527,207 300,004,541
386,418,616 329,753,749

24.00 Basic earnings per share (EPS)

The computation of EPS is given below
Earnings attributable to the ordinary shareholders (NPAT) 374,214,171 498,258,575
Number of shares outstanding during the year 105,450,000 105,450,000
Basic earnings per share (par value of Tk. 10) 3.55 4.73

No diluted EPS was required to be calculated for the year since there was no scope for dilution of share during the year under review.

108
Premier Cement mills limited Annual report 2014 - 2015

Notes to the Statement of Financial Position

For the year ended 30 June 2015

25.00 Related party disclosure

During the period the company carried out a number of transactions with related parties in the normal course of business on an arms length basis.
Names of those related parties, nature of those transactions and their value have been set out in accordance with the provisions of BAS-24: Related
party disclosure.

Nature of Outstanding as Transaction during the Outstanding balance as

Name of related party Nature of transaction Terms and conditions
relationship on 01 July 2014 year (Net) Taka on 30 June 2015 Taka

Loan to meet operational

Premier Power Generation Limited Subsidiary 1,873,427 (57,775,707) (55,902,280) Mutual understanding
expenses
Premier Power Generation Limited Subsidiary Investment in share 48,000,000 - 48,000,000 Arm length transaction
Asia Insurance Ltd. Common directorship Providing insurance (3,140,326) - (3,140,326) Arm length transaction
Seacom Shipping Ltd Common directorship C & F (2,243,438) 2,734,085 490,647 Arm length transaction
T K Oil Refinery Ltd. Common directorship Utility service (167,918) 75,898 (92,020) Arm length transaction
Aryan Stevedore Ltd. Common directorship Stevedoring service (14,657,071) 20,608,280 5,951,209 Arm length transaction
G P H Ispat Ltd. Common directorship Materials supply (480) - (480) Arm length transaction
Loan to meet operational
National Cement Mills Limited Associate 225,799,379 (62,995,440) 162,803,939 Mutual understanding
expenses
National Cement Mills Limited Associate Investment in share 350,000,000 - 350,000,000 Arm length transaction

26.00 Events after the reporting period

The Board of Directors of the company in its meeting held on 23 September 2015 recommended 20% cash dividend for the year 2014-2015 which
is subject to approval of the shareholders in the ensuing Annual General Meeting.
2015 2014
Taka Taka

27.00 Contingent liabilities

There are contingent liabilities in respect of outstanding letters of credit for Tk. 404 milion.
Letter of Credit
The City Bank Limited - 128,314,474
Dutch Bangla Bank Limited 54,514,736 21,376,285
The Hongkong And Shanghai Banking Corporation Limted 89,448,391 23,289,000
Prime Bank Limited 46,825,911 8,110,300
NCC Bank Ltd - 16,036,225
SIBL 2,322,345 25,688,010
Standard Bank Limited - 35,107,403
Standard Chartered Bank 208,097,998 161,686,936
Pubali bank Ltd 2,502,301
403,711,682 419,608,633

28.00 Capital expenditure commitment

There is no capital expenditure commitment as at 30 June 2015

29.00 Remittance of foreign currency:

No foreign currency was remitted during the year.
109
 Premier Cement mills limited

Notes to the Statement of Financial Position

For the year ended 30 June 2015

30.00 Earnings in foreign currency:

Export of 42,015 MT Cement were made in 2014-15 to Indian state of Tripura & Assam and as deemed export in Bangladesh for US$ 32,02,237.50
equvalent to BDT 246,293,504 .

31.00 Claims against the company not acknowledged as debt

There is no claim against the company acknowledged as debt.

32.00 Capacity utilization

Actual average monthly production is 93,110 MT against average monthly capacity of 200,000 MT i.e. capacity utilization is 46.56%.

2015 2014
Persons Persons

33.00 Number of employees

Management 59 63
Staff 817 891
Total number of employees 876 954

All employees received salary more than Tk. 4,000 per month.

34.00 Others

34.01 Directors’ remuneration

Salary, allowances and benefits 2,400,000 2,400,000
2,400,000 2,400,000

34.02 Directors’ fees for attending board meeting

Tk. 10,000 paid to each director for attending board meetings.

34.03 Receivable from director

No amount is lying as receivable from the directors.

34.04 Financial risk management

Financial risk management in respect of separate financial statement does not vary significantly from the consolidated one.

Company Secretary Director Managing Director

Place: Dhaka
Dated: 23 September 2015

110
Premier Power GenerAtion limited Annual report 2014 - 2015

DIRECTORS’ REPORT
t O t He s HAre HOlders FOr t He YeAr ended 30 JUne 2015

DEAR SHAREHOLDERS, COLLEAGUES, LADIES & GENTLEMEN

ASSALAMU ALAIKUM,

The directors are pleased to present their report on the activities of the company together with the Audited Accounts of the company for the period from
1st July 2014 to 30th June 2015.
REFFERAL:
In terms of provisions of section 184 of the Companies Act, 1994, rule 12 (and the schedule there under) of the Securities and Exchange Rules 1987 and BAS
1 (Bangladesh Accounting Standards-1) codes as adopted by the Institute of Chartered Accountants of Bangladesh (ICAB), it is the pleasure for the Board
of Directors to submit its report to the Shareholders for the year 1st July 2014 to 30th June 2015 in the following paragraphs.
BACKGROUND:
Premier Power Generation Limited, a Private limited company was incorporated on 07th September 2006 under Company Act XVIII of 1994 Factory at West
Mukterpur, Munshigonj with an installed capacity of 5.34 MW run by Natural Gas from TGTDCL. The Authorized Capital is Tk. 200,000,000 (Twenty Crore)
divided into 2,000,000 Shares of Tk. 100 each. The paid-up capital as on 30th June 2014 st ood at Tk 50,000,000 /- consisting of 500,000 ordinary shares of
Tk. 100/- each.
Premier Cement Mills Limited holds 96% shares of Premier Power Generation Limited.
COMPANYS OPERATIONS:
The position of its performance for the year ended 30th June 2015 is given bellow:
Performance Measure Indicator Name 30-Jun-15 30-Jun-14 30-Jun-13 30-Jun-12 30-Jun-11
Liquidity Ratio Current Ratio 34.54 1.86 0.12 0.07 0.07
Quick Ratio 34.54 1.86 0.12 0.07 0.07
Efficiency Total Asset Turnover (Times) 0.53 0.75 0.63 0.33 0.28
Leverage Ratio Debt Ratio 0.01 0.03 0.43 0.65 0.68
Debt-to-Equity 0.01 0.03 0.75 1.89 2.09
Profitability Return on Assets 28.21% 41.94% 20.59% 3.51% 1.61%
Return on Equity 28.50% 43.13% 36.09% 10.16% 4.98%
Others Gross Profit Margin 59.37% 65.59% 54.87% 50.09% 42.88%
Pretax profit margin 53.69% 55.62% 32.87% 10.65% 5.68%
Net Profit Margin 53.48% 55.62% 32.87% 10.65% 5.68%

Comparative Statement of Financial Position of PPGL

Particulars 30-Jun-15 30-Jun-14 30-Jun-13 30-Jun-12 30-Jun-11
Assets
PPE 114,218,809 121,715,472 117,715,166 125,393,095 120,697,374
Intangible assets - - - - -
Total non-current assets 114,218,809 121,715,472 117,715,166 125,393,095 120,697,374
Advances, deposits and pre-payment 5,965,237 6,531,746 6,621,737 5,692,752 5,783,470
Current account with holding company 55,902,280 - - - -
Cash and bank balances 175,075 47,642 9,512 8,753 6,681
Total Current Assets 62,042,592 6,579,388 6,631,249 5,701,505 5,790,151
Total Asset 176,261,401 128,294,860 124,346,415 131,094,600 126,487,525
Equity
Share capital 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000
Retained earnings 124,465,370 74,749,173 20,941,932 (4,658,324) (9,070,512)
Total equity 174,465,370 124,749,173 45,341,676 40,929,488 38,890,592
Liabilities
Trade and other payable 1,796,031 1,672,259 1,630,505 909,834 2,662,293
Bank liabilities - - - - 10,537,039
Current account with holding company - 1,873,428 84,122,419 84,648,203 84,876,447
Total current liability 1,796,031 3,545,687 85,752,924 85,558,037 98,075,779
Total equity and liability 176,261,401 128,294,860 131,094,600 126,487,525 136,966,371
111
 Premier Power GenerAtion limited

DIRECTORS’ REPORT
t O t He s HAre HOlders FOr t He YeAr ended 30 JUne 2015

Comparative Statement of Comprehensive Income of PPGL

Particulars 30-Jun-15 30-Jun-14 30-Jun-13 30-Jun-12 30-Jun-11

Revenue 92,962,508 96,746,357 77,879,680 43,269,680 35,875,518
Cost of sales (37,767,417) (33,285,970) (35,149,498) (21,595,370) (20,493,371)
Gross Profit 55,195,091 63,460,387 42,730,182 21,674,310 15,382,147
Other Income/ (Expenses) 12,204 - - - 518,077
Administrative Expenses (5,142,008) (4,510,162) (5,050,351) (3,168,527) (2,179,147)
Profit From Operation 50,065,287 58,950,226 37,679,831 18,505,783 13,721,077
Finance Cost (149,091) (5,142,985) (12,079,574) (13,899,315) (11,682,181)
Profit before Income tax/(Loss) 49,916,196 53,807,241 25,600,257 4,606,468 2,038,896
Tax expense (200,000) - - - -
Net profit 49,716,196 53,807,241 25,600,257 4,606,468 2,038,896

BOARD MEETINGS

During the year (01-07-2014 to 30-06-2015) 4 (number of) Board Meetings were held. The attendance record of the Directors is as follows:

Name of the Directors Position Number of Meetings Attended

1. Mohammed Amirul Haque Chairman 4

2. Mohammad Mustafa Haider Managing Director 4
3. Md. Jahangir Alam Director 4
4. Md. Alamgir Kabir -do- 4
5. Mohammed Ershadul Hoque -do- 4
6. Hasnat Mohd. Abu Obida -do- 4

ACKNOWLEDGEMENT:

The Directors are pleased to record with appreciation and gratitude the co-operation and support provided by Shareholders, Customers, Bankers, Suppliers,
Workers and Employees of the Company without whose active support the result would not have been possible.

Looking forward for a bright future for all of us

Thanking you,

(Mohammad Mustafa Haider)

Managing Director

112
Premier Power Generation Limited Annual Report 2014 - 2015

Auditors’ Report
to the shareholders’ of Premier Power Generation L imited

W e have audited the ac companying financial statements of P remier Power Generation Limited (“the company”), which c omprise the sta tement of
financial position as at 30 June 2015, and the sta tement of comprehensive income, statement of changes in equity and statement of cash flows for
the year then ended, and a summary of significant accounting policies and other explanatory information.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair pr esentation of these financial statements in accordance with Bangladesh F inancial Reporting
Standards (BFRS), the Companies Act 1994 other applicable laws and regulations and for such internal control as management determines is necessary to
enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditors Responsibility
Our responsibility is t o express an opinion on these financial statements based on our audit. We conducted our audit in ac cordance with Bangladesh
Standards on A uditing (BSA). Those standards require that we comply with ethical r equirements and plan and per form the audit t o obtain r easonable
assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected
depend on the auditors’ judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, we consider internal control relevant to the entity’s preparation of the financial statements that give a true and fair
view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the entity’s internal control. An audit also includes ev aluating the appropriateness of accounting policies used and the r easonableness of accounting
estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion the financial statements give a true and fair view of the financial position of the company as at 30 June 2015 and of their financial performance
and cash flows for the year then ended in accordance with Bangladesh Financial Reporting Standards (BFRS) and comply with the Companies Act 1994 and
other applicable laws and regulations.
We also report that:
i) 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;
ii) in our opinion, pr oper books of ac count as required by law have been kept b y the company so far as it appear ed from our examination of these
books; and
iii) the company’s statement of financial position and statement of comprehensive income dealt with by the report are in agreement with the books
of account and returns.

Place: Dhaka Syful Shamsul Alam & Co.

Date: 19 September 2015 Chartered Accountants

113
 Premier Cement mills limited

Statement of Financial Position

As at 30 June 2015

Amount in Taka Amount in Taka

Particulars Notes
2015 2014

Assets
Property, plant and equipment 4.00 114,218,809 121,715,472
Total non-current assets 114,218,809 121,715,472

Advances, deposits and pre-payments 5.00 5,965,237 6,531,746

Current account with holding company 55,902,280 -
Cash and Bank balances 6.00 175,075 47,642
Total current assets 62,042,592 6,579,388

Total assets 176,261,401 128,294,860

Equity
Share Capital 7.01 50,000,000 50,000,000
Retained earnings 124,465,370 74,749,173
Total equity 174,465,370 124,749,173

Trade and other payable 8.00 1,796,031 1,672,259

Current account with holding company - 1,873,428
Total current liabilities 1,796,031 3,545,687

Total equity and liabilities 176,261,401 128,294,860

The annexed notes 01 to 13 form an integral part of these financial statements.

Company Secretary Director Managing Director

As per our report of same date.

Place: Dhaka Syful Shamsul Alam & Co.

Dated: 19 September 2015 Chartered Accountants

114
Premier Power GenerAtion limited Annual report 2014 - 2015

Statement of Comprehensive Income

For the year ended 30 June 2015

Amount in Taka Amount in Taka

Particulars Notes
2015 2014

Revenue 92,962,508 96,746,357

Cost of sales 9.00 (37,767,417) (33,285,970)
Gross profit 55,195,091 63,460,387

Other Income 12,204 -

Administrative expenses 10.00 (5,142,008) (4,510,162)
Profit from operation 50,065,287 58,950,225

Finance costs 11.00 (149,091) (5,142,986)

Profit before income tax 49,916,196 53,807,239
Current tax expenses (200,000) -
Net profit/(loss) after tax 49,716,196 53,807,239
Other comprehensive income - -
Total comprehensive income 49,716,196 53,807,239

Basic earnings per share (par value of Tk. 100) 99.43 107.61

The annexed notes 01 to 13 form an integral part of these financial statements.

Company Secretary Director Managing Director

As per our report of same date.

Place: Dhaka Syful Shamsul Alam & Co.

Dated: 19 September 2015 Chartered Accountants

115
 Premier Power GenerAtion limited

Statement of Changes in Equity

For the year ended 30 June 2015

Amount in Taka

Particulars Share capital Retained earnings Total equity

Balance at 30 June 2013 50,000,000 20,941,932 70,941,932

Net profit for the year - 53,807,241 53,807,241
Balance at 30 June 2014 50,000,000 74,749,173 124,749,173
Net profit for the year - 49,716,196 49,716,196
Balance at 30 June 2015 50,000,000 124,465,370 174,465,370

Company Secretary Director Managing Director

Place: Dhaka
Dated: 19 September 2015

116
Premier Power GenerAtion limited Annual report 2014 - 2015

Statement of Cash Flows

For the year ended 30 June 2015

Amount in Taka Amount in Taka

Particulars
2015 2014

Cash flows from operating activities

Receipt from customers 92,962,508 96,746,357
Payment to employees (6,097,350) (4,625,000)
Payment to suppliers & others (86,400,838) (75,353,373)
Cash generated from operating activities 464,320 16,767,984

Interest paid (149,091) (5,142,985)

Income from other sources 12,204 -
Tax paid (200,000) -
A. Net cash from operating activities 127,433 11,624,999
Cash flows from investing activities
Sales/(Purchase) of property, plant & equipment - (11,586,869)

B. Net cash used in investing activities - (11,586,869)

Cash flows from financing activities
Proceeds from Bank Borrowing - -
Repayment of Bank Borrowing - -
C. Net cash provided from financing activities - -
Net increase/(decrease) in cash and bank balances 127,433 38,130
Cash and bank balances at the beginning of the year 47,642 9,512
Cash and bank balances at the end of the year 175,075 47,642

Company Secretary Director Managing Director

Place: Dhaka
Dated: 19 September 2015

117
 Premier Power Generation Limited

Notes to the Financial Statements

For the year ended 30 June 2015

1.00 Corporate history of the reporting entity

1.01 Corporate history
Premier Power Generation Limited, a Private limited company was incorporated on 07 September 2006 under Company Act XVIII of 1994
Factory at West Mukterpur, Munshigonj with an installed capacity of 5.34 MW run by Natural Gas from TGTDCL.

1.02 Nature of business

To establish, run operate and maintain the power/energy projects in Bangladesh and to sell power/ energy to its mother company Premier
Cement Mills Limited or any other customers.

2.00 Basis of preparation, presentation and disclosures of financial statements

2.01 Statement of compliance
The financial statements ha ve been pr epared and the disclosur es of inf ormation made in ac cordance with the r equirements of the
Companies Act 1994, and IFRSs as adopted by the ICAB. On the basis of these regulations, Bangladesh Accounting Standards (BAS) &
Bangladesh Financial Reporting Standards (BFRS) were applied with the applicable standards at the Balance Sheet date.
2.02 Other regulatory compliances
The Companies are also r equired to comply with the f ollowing major legal pr ovisions in addition t o the Companies Act 1994, and other
following applicable laws and regulations:
The Income Tax Ordinance 1984
The Income Tax Rules 1984
The Value Added Tax Act 1991
The Value Added Tax Rules 1991
The Customs Act 1969

2.03 Recording of transaction

Transaction has been ac counted for presented in accordance with their substanc e and financial reality. The financial statement has been
expressed in Bangladeshi Taka.

2.04 Use of estimates and judgments

The preparation of financial statements 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.
Estimates and underlying assumptions are reviewed on an ongoing basis.

2.05 Going concern

The company has adequate resources to continue in operation for foreseeable future.

2.06 Reporting period

The financial period of the company covers one year from 1st July to 30th June consistently.

3.00 Summary of significant accounting policies

The specific accounting policies selected and applied by the company’s directors for significant transactions and events that have material
effect within the fr amework of BAS -1 “Presentation of F inancial Statements”, in pr eparation and pr esentation of financial statements have been
consistently applied throughout the year and were also consistent with those used in earlier years.
For a pr oper understanding of the financial statements, these ac counting policies ar e set out belo w in one plac e as pr escribed b y the BAS -1
“Presentation of F inancial Sta tements”. The r ecommendations of BAS -1 r elating the f ormat of financial statements w ere also taken in to full
consideration for fair presentation.

3.01 Consistency
The accounting policies and methods of computation used in preparation of financial statements for the period ended 30th June 2015 are
consistent with those policies and methods adopted in preparing the financial statements for the year ended 30th June 2014.

118
Premier Power Generation Limited Annual Report 2014 - 2015

Notes to the Financial Statements

For the year ended 30 June 2015

3.02 Property, plant and equipment

Recognition and measurement

The fixed assets of the company shown under “Property, Plant and Equipment” as per BAS 16 is initially recorded at historical cost. Historical
cost includes its purchase price and any directly attributed cost of bringing the assets to its working condition for its intended use inclusive
of inward freight, duties, non-refundable taxes and (a) the c ost of sit e preparation; (b) initial deliv ery and handling c osts; (c) installa tion
costs; (d) pr ofessional fees such as f or architects and eng ineers; and (e) the estima ted cost of disman tling and r emoving the asset and
restoring the site, to the extent applicable in line with the provisions under ‘BAS 37: Provisions, Contingent Liabilities and Contingent Assets’.
Subsequent costs
Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that
future economic benefits associated with the item will flow to the entity and the cost of the item can be measured reliably. All other repairs
and maintenance costs are charged to the income statement during the financial period in which they incurred.
Depreciation
In respect of all fixed assets, depreciation is provided on reducing balance method over their expected useful life. Full year depreciation has
been charged on additions to fixed assets . The annual depreciation rates applicable to different category of assets are:
Category of assets Rate of Depreciaion
Plant & machinery 6%
Furniture & fixture 10%
Generator Building 10%
Office equipment 20%
Office decoration 15%
Upon retirement of assets, the c ost and related accumulated depreciation are eliminated from the ac counts and resulting gain or loss is
charged or credited to Income Statement.

3.03 Cash and cash equivalents

It includes cash in hand, bank deposit and other short term high liquid investments with original maturities of three months were held and
available for use by the company without any restriction and there is insignificant risk of changes in value of these current assets.

3.04 Trade and other payables

Liabilities are recorded at the amount payable for settlement in respect of goods are services received by the company.

3.05 Loans and borrowings

Borrowings repayable after twelve months from the date of statement of financial position are classified as non-current liabilities whereas
the por tion of bor rowings repayable within t welve months from the da te of sta tement of financial position, unpaid interest and other
charges are classified as current liabilities.

3.06 Contingent liabilities and assets

Contingent liabilities and assets are current or possible obligations or assets, arising from past events and whose existence is due to the
occurrrence or non-occurrence of one or more uncertain future events which are not within the control of the company. In accordance with
BAS 37, they are disclosed in the notes to the financial statements.

3.07 Revenue
Revenue is recognized in the statement of comprehensive income upon supply of electricity, quantum of which is determined by survey of
meter reading at the end of each month. Revenue is measured at fair value of coonsideration received or receivable.

3.08 Taxation
The company enjoyes Tax exemption for fifteen (15) years vide SRO No - 114 / AvBb/99dated 26.05.1999 under Income Tax Ordinance 1984.

3.09 Cash flow statement

Statement of Cash Flows is prepared principally in accordance with BAS 7 (Cash Flow Statement) and the cash flow from operating activities
have been presented under direct method.

119
 
 Premier Power GenerAtion limited

Notes to the Financial Statements

For the year ended 30 June 2015

Amount in Taka Amount in Taka

2015 2014

4.00 Property, plant and equipments

A. Cost
Plant & machinery 161,990,882 161,990,882
Furniture & fixture 4,930 4,930
Generator building 5,264,351 5,264,351
Office decoration 826,834 826,834
Office equipment 9,640 9,640
168,096,637 168,096,637
B. Accumulated depreciation 53,877,828 46,381,165
C. Written down value (A-B) 114,218,809 121,715,472
(A schedule of property, plant and equipment is given in annexure -A)

5.00 Advances, deposits & pre-payments

LC Advance:
Spare parts LC 167414020051 DBBL - 785,439
Mach LC 14 02-0155 Spare Parts DBBL 218,930 -
218,930 785,439
Deposits:
Deposit to TGTDCL 4,418,000 4,418,000
Bank guarantee margin to TGTDCL 836,050 836,050
Advance income tax 491,230 491,230
VAT current account 1,027 1,027
5,746,307 5,746,307
5,965,237 6,531,746

6.00 Cash and bank balances

Cash in hand - -
Cash at bank (Note 6.01) 175,075 47,642
175,075 47,642
6.01 Cash at bank
Standard Bank Ltd. Panthopath Br. # 1948 - 1
Dutch Bangla Bank Ltd Agr Br. # 16116 175,075 46,258
Standard Bank Ltd. Ktg Br. # 8998 - 1,383
175,075 47,642

7.00 Share capital

Authorized:
2,000,000 Ordinary shares of Taka 100 each 200,000,000 200,000,000
200,000,000 200,000,000

7.01 Issued, subscribed and paid up

500,000 Ordinary Shares of Tk.100/-each fully paid-up in cash 50,000,000 50,000,000

120
Premier Power GenerAtion limited Annual report 2014 - 2015

Notes to the Financial Statements

For the year ended 30 June 2015

7.02 Share holding position

The composition of share holders at balance sheet date were as follows:

2015 2014
Name of shareholders
Percentage Number Face value Face value
01. Mr. Mohammed Amirul Haque 0.30% 1,500 150,000 150,000
02. Mr. Mohammed Raquibul Haque 0.20% 1,000 100,000 100,000
03. Mr. Mohammed Ershadul Hoque 0.20% 1,000 100,000 100,000
04. Mrs. Nashira Sultana 0.10% 500 50,000 50,000
05. Mr. Mohammed Zahurul Haque 0.20% 1,000 100,000 100,000
06. Mr. Abu Sadat Mohd. Faisal 0.50% 2,500 250,000 250,000
07. Mr. Hasnat Mohd. Abu Obida 0.50% 2,500 250,000 250,000
08. Mr. Mohammad Mustafa Haider 0.33% 1,670 167,000 167,000
09. Ms. Farzana Afroze 0.33% 1,665 166,500 166,500
10. Ms. Rizwana Afroze 0.33% 1,665 166,500 166,500
11. Mr. Md. Jahangir Alam 0.40% 2,000 200,000 200,000
12. Mr. Md. Alamgir Kabir 0.25% 1,250 125,000 125,000
13. Mr. Md. A. Rouf 0.10% 500 50,000 50,000
14. Mr. Md. Almas Shimul 0.10% 500 50,000 50,000
15. Mr. Md. Ashrafuzzaman 0.10% 500 50,000 50,000
16. Mr. Md. Abdul Ahad 0.05% 250 25,000 25,000
17. Premier Cement Mills Limited. 96.00% 480,000 48,000,000 48,000,000
Total 100.00% 500,000 50,000,000 50,000,000

Amount in Taka Amount in Taka

Notes
2015 2014

8.00 Trade & other payables

MRH Dey & Co. - (88,000)
Provision for Audit Fee 57,500 57,500
Reliance International - 8,772
Provision for insurance - 3,432
Seacom Shipping Ltd. 110,489 110,489
Provision for Gas Bill 1,624,867 1,563,294
Federal Insurance Company 3,175 4,272
TDS payable SSAC - 5,000
VAT payable on audit fee -SSAC - 7,500
1,796,031 1,672,259
9.00 Cost of sales
Gas Bill 15,055,867 20,800,323
Salary & Wages 2,041,950 1,294,000
Conveyance & Travelling 436,230 347,970
Fuel & Lubricant - 372,500
Entertainment 89,090 119,498
Repairs & Maintenance 12,737,861 2,815,357
Telephone & Internet charge 2,040 -
Depreciation 4.00 7,404,379 7,536,322
37,767,417 33,285,970
121
 Premier Power GenerAtion limited

Notes to the Financial Statements

For the year ended 30 June 2015

Amount in Taka Amount in Taka

Notes
2015 2014

10.00 Administrative expenses

Salary & Allowance 4,055,400 3,331,000
Travelling & Conveyance 194,765 249,020
Office Rent 560,000 560,000
Audit Fee including VAT 57,500 57,500
Legal renewal & Professional Fee 180,059 262,400
Printing & Stationery 2,000 -
Depreciation 4.00 92,284 50,242
5,142,008 4,510,162

11.00 Finance costs

Interest charged by PCML ( Holding Co.) - 4,919,403
Bank charges & Interest 149,091 223,582
149,091 5,142,985

12.00 Contingent liabilities

There are contingent liabilities in respect of bank guarantee for Tk. 8.83 milion.
Details are as follows:
Bank Name Bank Guarantee No.
*Standard bank limited BG/DBL/KTG/07/2007 5,840,500 5,840,500
*Standard bank limited BG/DBL/KTG/17/2008 2,044,500 2,044,500
Standard bank limited BG/DBL/KTG/2010/03 951,000 951,000
8,836,000 8,836,000
* These Bank Guarantees were expired and not renewed.

13.00 Related party disclosure

During the year the company carried out a number of tr ansactions with related party in the nor mal course of business. The name of the r elated
party and nature of those transactions havee been set out in accordance with the provisions of BAS-24: Related party disclosure.

Net transaction during the Outstanding as on

Name of related party Relationship Outstanding as on 30.06.2014
year 30.06.2015
Premier Cement Mills Limited Holding Copmpany (55,902,280) (57,775,707) 1,873,427

NB: All expenses of Premier Power Generation Limited are paid by Premier Cement Mills Limited and the corresponding liability is adjusted with the
receivables (from the sale of electricity to Premier Cement Mills Limited) of Premier Power Generation Limited.

Company Secretary Director Managing Director

Place: Dhaka
Dated: 19 September 2015

122
Premier Power GenerAtion limited Annual report 2014 - 2015

Schedule of property, plant and equipment

As at 30 June 2015
Annexure -A

Cost Depreciation
Written Down
Balance Addition Disposal/ Balance Balance Charged Disposal/ Balance Value
Rate
Category of Assets as on during the adjustment as on as on during the adjustment as on as on
01 July 2014 year during the year 30 June 2015 01 July 2014 year during the year 30 June 2015 30 June 2015

Taka Taka Taka Taka % Taka Taka Taka Taka Taka

1 2 3 4 5 6 7 8 9 10= (7+8-9) 11= (5-10)
Plant & machinery 161,990,882 - - 161,990,882 6% 44,154,848 7,070,162 - 51,225,010 110,765,872
Furniture & fixture 4,930 - - 4,930 10% 2,019 291 - 2,310 2,620
Generator building 5,264,351 - - 5,264,351 10% 2,155,805 310,855 - 2,466,659 2,797,692
Office decoration 826,834 - - 826,834 15% 62,013 114,723 - 176,736 650,098
Office equipment 9,640 - - 9,640 20% 6,481 632 - 7,113 2,527
Balance as of 2014 - 15 168,096,637 - - 168,096,637 46,381,165 7,496,663 - 53,877,828 114,218,809
Balance as of 2013 - 14 156,509,768 11,586,869 - 168,096,637 38,794,602 7,586,563 - 46,381,165 121,715,472

Amount in Taka
2015 2014

Allocation :
Cost of production 7,404,379 7,536,322
Administrative expenses 92,284 50,242
Total 7,496,663 7,586,563

123
 National Cement Mills Limited

Auditors’ Report
to the shareholders’ of N ational Cement Mills L imited

Introduction
We have audited the accompanying financial statements of National Cement Mills Limited, which comprise the statement of financial position
as at 30 June 2015 and the statement of comprehensive income, statement of changes in equity, and statement of cash flows and for the year
then ended, and a summary of significant accounting policies and other explanatory notes.

Management’s responsibility to the financial statements

Management’s responsibility for the preparation and fair presentation of these financial statements in accordance with Bangladesh Financial
Reporting Standards (BFRS), the Companies Act. 1994 and other applicable laws and regulations. This responsibility includes: designing,
implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from
material misstatements, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting
estimates that are reasonable in the circumstances.

Auditors’ responsibility
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 comply with relevant ethical requirements and plan and perform the
audit of obtain reasonable assurance whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments; the we consider internal control relevant to the entity’s preparation and fair presentation
of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used
and the reasonableness of accounting estimates made by management, as well as evaluating overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion
In our opinion, the financial statements, prepared in accordance with Bangladesh Financial Reporting Standards (BFRS), give a true and fair
view of the state of the company’s affairs as at 30 June 2015 and of the results of its operations and cash flows for the year then ended and
comply with the Companies Act 1994 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 accounts as required by law have been kept by the company so far as it appeared from our examination of
these books;
c) the statement of financial position, statement of comprehensive income, statement of changes in equity and statement of cash flows dealt
with by the report are in agreement with the books of account and returns.

Dated, Chittagong MRH DEY & CO.

September 13, 2015 Chartered Accountants

124
nAtionAl Cement mills limited Annual report 2014 - 2015

Statement of Financial Position

As at 30 June 2015

30.06.2015 30.06.2014
Notes
Taka Taka

ASSETS
Non- Current Assets: 1,637,814,569 1,586,674,439
Property, plant and equipment 4 1,586,664,087 1,555,872,822
Capital work -in - progress 5 51,150,482 30,801,617
Current Assets: 659,768,041 433,985,103
Inventories 6 657,400,068 168,724,759
Accounts receivables 7 191,949,287 170,212,453
Advances, deposits and pre-payments 8 189,581,314 85,348,075
Investment on FDR 9 16,355,329 -
Cash and cash equivalent 10 8,519,531 9,699,816
Total Assets 2,295,214,637 2,020,659,542
EQUITY & LIABILITIES
Shareholders Equity: 617,194,471 612,156,525
Share capital 11 175,000,000 175,000,000
Tax holiday reserve 2,274,386 2,274,386
Share money deposit 12 490,000,000 490,000,000
Retained earnings 13 (50,079,915) (55,117,861)
Non-Current Liabilities:
Bank Loan ( Long Term ) 14.1.1 263,406,042 398,135,272
Current Liabilities 1,414,614,125 1,010,367,745
Accounts Payable 15 142,565,268 46,873,181
Bank loan ( Short term ) 16 965,173,913 628,449,650
Current portion of long term 14.1.2 134,729,230 107,043,884
Laiability for other finance 17 4,200,000 -
Due to associate company 18 162,803,938 225,799,378
Provision for taxation 19 5,141,776 2,201,651
Total Equity and Liabilities 2,295,214,638 2,020,659,542

Net Asset Value Per Share (NAV) 35.27 34.98

The accompanying notes form an integral part of the financial statements.

Managing Director Director Company’s Secretary

As per our separate report of even date annexed

Dated, Chittagong MRH DEY & CO.

September 13, 2015 Chartered Accountants

125
 nAtionAl Cement mills limited

Statement of Comprehensive Income

For the year ended 30 June 2015

2014-15 2013-14
Notes
Taka Taka

Revenue-Net 20 965,280,863 720,400,180

Cost of Goods Sold 21 (881,675,284) (656,128,831)
Gross profit 83,605,579 64,271,349
Non-operating income/(loss) 22 14,760,668 13,483,524
Administrative expenses 23 (7,460,558) (4,737,528)
Selling & distribution expenses (12,701,716) (7,214,958)
Profit before interest and tax 78,203,973 65,802,388
Financial expenses 24 (70,225,902) (47,817,015)
Profit for the year ( Before Tax) 7,978,071 17,985,373
Income tax expenses 19 (2,940,125) (13,317,034)
Net Profit for the year 5,037,946 4,668,339

Basic Earnings Per Share 28 0.29 0.27

(Book Value per share Taka 10)

The accompanying notes form an integral part of the financial statements.

Managing Director Director Company Secretary

As per our separate report of even date annexed

Dated, Chittagong MRH DEY & CO.

September 13, 2015 Chartered Accountants

126
nAtionAl Cement mills limited Annual report 2014 - 2015

Statement of Changes in Equity

For the year ended 30 June 2015

Amount in Tk.

Particulars Share capital Tax holiday reserve Share Money Deposit Retained earnings Total equity

Balance at July 1, 2013 175,000,000 2,274,386 210,000,000 (59,786,200) 327,488,186

Receipt during the year - - 280,000,000 - 280,000,000
Net profit after tax for the year - - - 4,668,339 4,668,339
Balance at June 30, 2014 175,000,000 2,274,386 490,000,000 (55,117,861) 612,156,525
Balance at July 1, 2014 175,000,000 2,274,386 490,000,000 (55,117,861) 612,156,525
Net profit after tax for the year - - - 5,037,946 5,037,946
Balance at June 30, 2015 175,000,000 2,274,386 490,000,000 (50,079,915) 617,194,471

Managing Director Director Company Secretary

As per our separate report of even date annexed

Dated, Chittagong MRH DEY & CO.

September 13, 2015 Chartered Accountants

127
 nAtionAl Cement mills limited

Statement of Cash Flows

For the year ended 30 June 2015

2014-15 2013-14
Taka Taka

CASH FLOW FROM OPERATING ACTIVITIES

Receipt from customers 945,912,002 596,416,707
Payment to supplier & employees (883,747,637) (693,386,926)
Cash generated from operating activities (a) 62,164,364 (96,970,219)
Bank interest & charges (70,225,902) (47,817,015)
Non-operating income/(loss) 14,760,668 13,483,525
Income tax paid - (15,302,255)
Net cash provided by operating activities 6,699,130 (146,605,964)

CASH FLOW FROM INVESTING ACTIVITIES

Acquisition of fixed assets (142,060,160) (246,557,193)
Capital Work-in-progess (20,348,865) (52,616,977)
Investment on FDR (16,355,329) -
Net cash used in investing activities (b) (178,764,354) (299,174,170)

CASH FLOW FROM FINANCING ACTIVITIES

Share Money Deposit - 280,000,000
Bank loan-long term (134,729,230) (31,118,812)
Current portion of long term 27,685,346 -
Short term bank loan 336,724,263 228,107,050
Laiability for other finance 4,200,000 -
Premier Cement Mills Limited (62,995,440) (26,691,768)
Net cash flows from Financing activities ( c ) 170,884,939 450,296,470
Net cash (Deficit)/Surplus for the Year(a+b+c) (1,180,285) 4,516,335
Cash & Bank Balances at beginning of the year 9,699,816 5,183,481
Cash & Bank Balances at end of the year 8,519,531 9,699,816

Operating Cash Flow Per Share 0.38 (8.38)

Managing Director Director Company Secretary

As per our separate report of even date annexed

Dated, Chittagong MRH DEY & CO.

September 13, 2015 Chartered Accountants

128
National Cement Mills Limited Annual Report 2014 - 2015

Notes to the Financial Statements

For the year ended 30 June 2015

1. Reporting Entity
1.1. Formation & Legal Status:
National C ement M ills Limit ed, a public c ompany limit ed b y shar es, w as inc orporated in Bangladesh on 10 S eptember, 1996 vide
registration number 8200/10 under the Companies Act 1994. In persuant of section 150(2) of companies act 1994, it obtained the Certificate
of Commencement of Business from the Registrar of Joint Stock Companies (RJSC) on the same day.
The plant office is situated at Issa Nagar , K arnaphuli, Chittagong and corporate office is located at Tahar Chamber, 2nd floor, 10, Agrabad
C/A, Chittagong, Bangladesh.
1.2. Nature of Business:
The principal activities of the company are to manufacturing cement from various raw materials and marketing the same in local as well as
foreign markets.

2. Basis of preparation, presentation & disclosure of financial statements

2.1. Accounting Convention and Basis:
The financial statements are prepared under the historical cost convention using accrual basis of accounting.
2.2 Statement of Compliance:
The finanancial statement have been prepared on going concern basis following accrual basis of accounting except for cash flow statements
in accordance with Bangladesh Accounting Standards (BASs) and other applicable laws & regulations.
2.3 Other regulatory compliance:
The Company is required to comply with the following major laws and regulation in addition to the Companies Act 1994:
The Income Tax Ordinance 1984
The Income Tax Rules 1984
The Value Added Tax Act 1991
The Value Added Tax Rules 1991
The Custom Act 1969
2.4 Presentation of Financial Statements:
The presentation of these financial statements are in accordance with the guidelines provided by BAS 1 “Presentation of financial statements”
that comprises :
(a) a statement of financial position at June 30, 2015
(b) a statement of comprehensive income for the year ended June 30, 2015
(c) a statement of changes in equity for the year ended June 30, 2015
(d) a statement of cash flows for the year ended June 30, 2015
(e) notes, comprising a summary of significant accounting policies and explanatory information.
2.5 Use of Estimates and Judgements:

The presentation of financial statements requires management to make judgements,estimates & assumptions tha t affect the application
of accounting policies and the reported amounts of Assets, Liabilities, Income & Expenses. Actual results may differ from these estimates.
2.6 Going Concern:

The financial statements for the year under review have been prepared under the going concern basis, as the management of the company
believes that the c ompany will c ontinue in oper ation for foreseeable future and it has adequa te resources to do so . The current credit
facilities and resources of the company provide sufficient fund to meet the present requirements of its existing businesses and operations.
2.7 Functional and Presentation Currency:

These financial statements are prepared in Bangladesh Taka which is the company’s functional currency.
2.8 Foreign Currency Conversion:

Foreign currencies have been converted into Bangladesh taka currency at the ruling rate on the transaction date.
2.9 Reporting Period:
The accounting period of the company covers one financial year from July 1 to June 30 consistently . 129
 National Cement Mills Limited

Notes to the Financial Statements

For the year ended 30 June 2015

2.10 Comparative Information:

Comparative information has been disclosed f or all numer ical information in the financial statement and also nar rative and descr iptive
information where it is relevant for understanding of the current year’s financial statements.

3. Significant Accounting Policies

The ac counting polic y set out belo w ha ve applied c onsistently t o all per iods pr esented in these financial statements and ha ve been applied
consistently by the company.
3.1 Property, Plant & Equipments ( PPE )
Recognition and measurement:
Property, P lant & E quipments other than Land & Land D evelopment ar e sta ted a t c ost less ac cumulated depr eciation. Land & Land
Development are stated at cost, as depreciation is not chargable on this type of assets.
Subsequent Costs:
The cost of replacing a part of property, plant and equipment is recognised in the carrying amount of the item if it is probable that future
economic benefits associated with the it em will flow to the en tity and c ost of the it em can be measur ed reliably. All other r epair and
maintenance costs are charged to the statement of comprehensive income during the financial period in which they incurred.
Depreciation
Land is held freehold basis and is not depreciated considering the unlimited life. In respect of all other fixed assets depreciation is provided
on reducing balance’ method over their expected useful life at the rates varying from 5% to 25%. As a part of the companies policy half year
depreciation is charged on the acquisition or addition made during the period under review.
3.2 Capital Work-in-progress

Proprety, Plant & Equipment under construstion/acquisition is temporarily accounted for under capital work in process until construction/
acquisition is completed & measured at cost.
3.3 Inventories

Nature of Inventories:
Inventories comprise of r aw materials (Clinker,Fly Ash,Gypsum,Lime Stone,Slag), Packing materials (P.P & Paper Bag), C onsumable Stores
and Finished Goods (Cement).
Valuation of the Inventories:
Inventories are valued as below in compliance with the requirements of BAS :2 “Inventories”:
Items Basis of valuation
Raw Materials Weighted Average Cost
Packing Materials Weighted Average Cost
Consumable Stores Weighted Average Cost
Finished Goods Weighted Average Cost

3.4 Accounts Receivable

Accounts receivables are considered good. So no provision has been created for bad or doubtful ones.

3.5 Cash and Cash Equivalents

Cash and cash equivalents include cash in hand and balances with banks on current and deposit accounts which are held and available for
use by the company without any restriction.
3.6 Cash Flow Statement

The Statement of C ash Flows is pr epared principally in ac cordance with “BAS-7:Cash Flow Statement” and the cash flow from operating
activities have been presented under direct method.
3.7 Revenue Recognition
In compliance with the r equirements of Bangladesh A ccounting Standard ( BAS :18 ) “ Revenue” revenue from sale of goods (c ement) is
measured at the fair value of the consideration received or receivable , net of return or trade discount or volume rebates.Revenue is recognised
when the significant risk and rewards relating the ownership of goods have been transferred to the buyer, recovery of the consideration is
probable and amout the revenue can be measured reliably. Specific policies regarding the recognition of revenue are as below:
130
National Cement Mills Limited Annual Report 2014 - 2015

Notes to the Financial Statements

For the year ended 30 June 2015

(i) In case of goods sold (cement): sales revenue is recognised when the goods delivered to the customers and related invoice raised.
(ii) Non-operating income : Non-operating income includes carrying income, rental income etc has been recognised on realisation basis.

3.8 Earnings Per Share

Earnings per share (EPS) has been computed by dividing the basic earnings by the number of ordinary shares outstanding at 30 June, 2015
as per Bangladesh Accounting Standard (BAS) - 33 “Earnings Per Share”.
Basic Earnings:
This represents earnings for the year attributable to the ordinary shareholders. Profit/(loss) after tax has been considered as fully attributable
to the ordinary shareholders.
Basic Earnings Per Share:
This has been calcula ted b y dividing the basic ear nings a ttributable t o the or dinary shar eholders b y the number of or dinary shar es
outstanding at the end of the year.
3.9 Borrowing Costs
Interest and other c osts incurred by the company in connection with the bor rowing of funds ar e recognised as expense in the per iod in
which they are incurred, unless such borrowing costs relate to acquisition / construction of assets in progress which are capitalized as per
allowed alternative treatment of BAS: 23 “Borrowing Costs”.
3.10 Taxation
Current Tax
Current tax is the expec ted tax pa yable on the taxable inc ome f or the per iod , using tax r ate enac ted or substan tively inac ted a t the
reporting date , and any adjustment to tax payable in respect of the previous periods.

Deferred Tax:
Deferred tax is not recognised in the financial statements for the period under review.
3.11 Others

(i) Figures have been rounded off to the nearest taka

(ii) Figures in brackets indicate deduction
(iii) Previous year’s figures have been re -arranged whenever considered necessary to ensure comparability with current year.

131
 nAtionAl Cement mills limited

Notes to the Financial Statements

For the year ended 30 June 2015

30.06.2015 30.06.2014
Taka Taka

4. Property, Plant & Equipments

A. Cost
i) Freehold Assets
Opening Balance 1,824,222,206 1,472,940,477
Add : Addition during the year 142,060,160 351,281,729
1,966,282,366 1,824,222,206
Less: Deletion/Sale during the year - -
Total (A) 1,966,282,366 1,824,222,206
B. Accumulated Depreciation
i) Freehold Assets
Opening Balance 268,349,384 183,627,575
Add : Charged during the year 111,268,895 84,721,809
379,618,279 268,349,384
Less: Adjustment -
Total (B) 379,618,279 268,349,384
C. Written Down Value (A-B) 1,586,664,087 1,555,872,822
A schedule of property,plant & equipment has been given in Annexure-1.

5. Capital Work-in-Progress
Opening Capital Work-in-Progress 30,801,617 82,909,176
Add: Expenditure incured during the Year 20,348,865 52,616,977
51,150,482 135,526,153
Less: Capitalized during the year - 104,724,536
Closing Capital Work-in-Progress 51,150,482 30,801,617

6. Inventories
Raw Materials ( note : 21.1) 255,591,017 152,317,096
Packing Materials ( note : 21.2) 3,645,510 1,549,016
Consumable Stores (note: 21.3) 9,889,768 5,996,155
Finished Goods & W.I.P 44,238,079 8,862,492
313,364,374 168,724,759

2015 2014
Particulars Measuring unit
Quantity Amount Quantity Amount
Clinker MT 40,481 171,145,145 25,101 119,555,197
FLY ASH MT 2,739 3,931,672 954 1,690,210
Gypsham MT 4,917 9,346,023 659 1,555,359
Lime Stone MT 8,188 14,142,785 10,921 19,548,934
Slag MT 27,757 57,025,392 4,056 9,967,396
Packing Materials (PP Bag) Pcs 216,974 3,645,510 87,502 1,549,016
Finished Goods & W.I.P MT 7,141 44,238,079 1,460 8,862,492
Total 308,197 303,474,606 130,653 162,728,604

132
nAtionAl Cement mills limited Annual report 2014 - 2015

Notes to the Financial Statements

For the year ended 30 June 2015

Raw material reconcilliation:

For 2014-15 :
Purchase
Opening Consumption Closing
Particulars Import Local
Qty (MT) Amount (Tk) Qty (MT) Amount (Tk) Qty (MT) Amount (Tk) Qty (MT) Amount (Tk) Qty (MT) Amount (Tk)
Clinker 25,101 119,555,197 133,252 607,560,640 - - 117,872 555,970,692 40,481 171,145,145
FLY ASH 954 1,690,210 - - 13,258 21,987,590 11,473 19,746,128 2,739 3,931,672
Gypsham 659 1,555,359 9,894 20,360,184 - - 5,636 12,569,520 4,917 9,346,023
Lime Stone 10,921 19,548,934 9,000 15,460,072 - - 11,733 20,866,221 8,188 14,142,785
Slag 4,056 9,967,396 31,179 63,139,582 - - 7,478 16,081,586 27,757 57,025,392
Total 41,691 152,317,096 183,325 706,520,478 13,258 21,987,590 154,192 625,234,147 84,082 255,591,017
For 2013-14 :
Purchase
Opening Consumption Closing
Particulars Import Local
Qty (MT) Amount (Tk) Qty (MT) Amount (Tk) Qty (MT) Amount (Tk) Qty (MT) Amount (Tk) Qty (MT) Amount (Tk)
Clinker 9,417 43,495,916 99,450 475,043,075 - - 83,766 398,983,794 25,101 119,555,197
FLY ASH 2,570 3,491,050 - - 11,012 20,568,778 12,628 22,369,618 954 1,690,210
Gypsham 748 1,895,159 4,500 10,686,118 - - 4,590 11,025,918 659 1,555,359
Lime Stone 2,871 2,495,210 18,370 35,531,969 - - 10,320 18,478,245 10,921 19,548,934
Slag 2,504 5,851,969 5,000 12,605,799 - - - 8,490,372 4,056 9,967,396
Total 18,110 57,229,304 127,320 533,866,961 11,012 20,568,778 111,305 459,347,947 41,691 152,317,096
Packing material reconcilliation :
Purchase
Opening Consumption Closing
Particulars Import Local
Qty (Pcs) Amount (Tk) Qty (Pcs) Amount (Tk) Qty (Pcs) Amount (Tk) Qty (Pcs) Amount (Tk) Qty (Pcs) Amount (Tk)
2014 87,502 1,549,016 - - 3,168,200 53,898,764 3,038,728 51,802,270 216,974 3,645,510
2013 55,840 930,575 - - 2,293,200 40,353,664 2,261,538 39,735,223 87,502 1,549,016

30.06.2015 30.06.2014
Taka Taka

7. Accounts Receivables
Trade Receivables 189,581,314 170,212,453
189,581,314 170,212,453

8. Advances, deposits & prepayments

Advance ( note-8.1) 124,900,463 80,669,018
Deposits (note-8.2) 4,679,057 4,679,057
129,579,520 85,348,075
Note: All the advance and deposit amount is considered good and recoverable.
8.1. Advances
Advance income tax (note-8.1.1) 77,399,735 38,050,604
VAT current account 9,755,324 6,948,219
Advance against Land 15,918,000 14,547,500
Advance against expenses 19,468,354 14,287,038
Advance to employee 482,000 469,000
L/C advances 1,877,050 5,590,011
Others - 776,646
124,900,463 80,669,018 133
 nAtionAl Cement mills limited

Notes to the Financial Statements

For the year ended 30 June 2015

30.06.2015 30.06.2014
Taka Taka

8.1.1 Advance income tax

Opening Balance 38,050,604 24,647,466
Add: Paid during the year 39,349,131 28,705,393
77,399,735 53,352,859
Less: Adjusted during the year - 15,302,255
77,399,735 38,050,604

8.2. Deposits
Security Deposit (PDB) 4,679,057 4,679,057
4,679,057 4,679,057

9.00 Investment In FDR

Pubali Bank Ltd 16,355,329 -
16,355,329 -

10 Cash and cash equivalent

Cash at bank ( note-10.1) 5,736,262 5,047,010
Cash in hand-as certified by management (note-10.2) 2,783,269 4,652,806
8,519,531 9,699,816
10.1 Cash at bank
AB Bank A/C -4101-780007-000 10,731 497,400
Bank Asia A/C -00533006723 937,250 8,301
City Bank A/C No-1101354556001 4,133 1,011,457
City Bank Ltd 173,111 3,120
DBBL A/C # 102.110.25408 15,164 18,703
Dhaka Bank Ltd - 1,290
HSBC A/C No# 004-213989-011 43,392 43,512
IFIC Bank A/c-2030413044001 117,743 8,343
Islamic Bank Ltd A/c No-5012 370,001 479,144
NCC Bank A/C NO-00030210025638 117,115 87,875
Mercantile Bank Ltd. A/C 010411100013040 156,020 489,951
Prime Bank Ltd-12111030013898 85,089 132,553
Pubali Bank Ltd A/c-8114-3 165,979 867,729
SBL-(Agr.Br)-007-33100185 644,044 881,942
Sonali Bank Ltd. A/c No-33024874 888,166 172,615
UCBL-0004-111-00048712 395,405 104,334
Al Afafah Islami Bank Ltd.0051020020009 311,256 231,711
Social islami Bank Ltd. 0041330029137 41,292 2,814
Jamuna Bank Ltd.LMT-0740210001533 346,326 4,217
Pubali Bank Ltd A/c-0260901103064 899,280 -
MTBL A/c -0005-0210017010 14,765 -
5,736,262 5,047,010

10.2 Cash in hand-as certified by management

At corporate office 1,098,304 850,584
At factory office 1,684,965 3,802,222
2,783,269 4,652,806
134
nAtionAl Cement mills limited Annual report 2014 - 2015

Notes to the Financial Statements

For the year ended 30 June 2015

30.06.2015 30.06.2014
Taka Taka

11 Ordinary share capital

Authorized share capital:
100,000,000 ordinary shares of Tk. 10 each. 1,000,000,000 1,000,000,000
Issued, Subscribed and Paid up Capital:
17,500,000 Ordinary Shares of Tk. 10 each fully paid in cash 175,000,000 175,000,000
Shareholding position:
The composition of shareholders at statement of financial position date was as follows:

30.06.2015
Name of shareholders Percentage of holding Number of share
Taka
Mr. Hasnat Md. Abu Obida 10 1,750,000 17,500,000
Mr. Md. Jahangir Alam 15 2,625,000 26,250,000
Mr. Mohammed Mustafa Haider 10 1,750,000 17,500,000
Mr. Mohammed Amirul Haque 10 1,750,000 17,500,000
Mrs. Farzana Afroze 4 656,250 6,562,500
Mrs. Rijwana Afroje Binte Kalam 4 656,250 6,562,500
Mr. Aseer Intasirul Haque 4 656,250 6,562,500
Mr. Sameer mohammed Haque 4 656,250 6,562,500
Premier Cement Mills Limited 40 7,000,000 70,000,000
100 17,500,000 175,000,000
Classification of Shareholders by holding:

30.06.2015
Shareholding range No. of holders Holding %
Taka
Less than 500 shares - - -
501 to 5,000 shares - - -
5001 to 10,000 shares - - -
10,001 to 20,000 shares - - -
20,001 to 30,000 shares - - -
30,001 to 40,000 shares - - -
40,001 to 50,000 shares - - -
50,001 to 100,000 shares - - -
100,001 to 1,000,000 shares - - -
Over 1,000,000 shares 9 100 175,000,000
9 100 175,000,000

12 Share Money Deposit

Mr. Mohammed Amirul Haque 70,000,000 70,000,000
Mr. Mohammed Mustafa Haider 70,000,000 70,000,000
Mr. Hasnat Md. Abu Obida 70,000,000 70,000,000
Premier Cement Mills Limited 280,000,000 280,000,000
490,000,000 490,000,000 135
 nAtionAl Cement mills limited

Notes to the Financial Statements

For the year ended 30 June 2015

30.06.2015 30.06.2014
Taka Taka

13 Retained earnings
Opening Balance (55,117,861) (59,786,200)
Add, Net profit for the year 5,037,946 4,668,339
(50,079,915) (55,117,861)

14 Bank loan-long term

Dutch-Bangla Bank Limited 368,428,417 470,208,092
Jamuna Bank Limited 29,706,855 34,971,064
398,135,272 505,179,156
14.1 Allocation of long term loan
Long term portion (note-14.1.1) 263,406,042 398,135,272
Current portion (note-14.1.2) 134,729,230 107,043,884
398,135,272 505,179,156
14.2 Security Details :
i) Fresh charge documents including D.P. Note duly signed and sealed by authorized directors;
ii) 16(Sixteen) undated cheques, each cheque covering amount of 3(three) monthly installments with up-to-date interest and one post
dated cheque covering entire Term Loan amount with accrued interest.
iii) Existing collateral in the name client shall continue,remain effective and binding with the proposed facility:
15 Accounts payables
Liabilities for expenses 123,103,818 28,330,399
Others payable 19,461,450 18,542,782
142,565,268 46,873,181
16 Bank loan-Short term
OD & STL Facilities :
DBBL-102.402.1181 OD A/C 76,685,629 73,818,489
NCCBL-STL-A/C -2390000046 - 21,989,000
NCC-SOD-0140000332 - 50,548,343
PUBL-STL-0260319000294 16,164,522 -
PUBL-STL-0260319000321 86,867,049 -
DBBL-STL-9151750001 150,328,125 -
Dutch-Bangla Bank Ltd.- PAD 44,341,794 455,466,003
Pubali Bank Ltd-PAD 318,897,256
NCCBL- LTR 271,889,538 26,627,815
965,173,913 628,449,650
16.1 Bank loan facilities :
The company currently availing the following facilities from banks :
Limit ( Taka in crore )
Bank Name
STL /LTR/ Invoice Financing L/C OD/CC Long Term Loan
a) DBBL-102.402.1181 OD A/C - - 80,000,000 -
b) PUBL-STL-0260319000294 15,722,488 - - -
c) PUBL-STL-0260319000321 84,277,000 - - -
d) Pubali Bank Ltd-LTR - 500,000,000 - -
e) DBBL-STL-9151750001 150,000,000 - - -
136 f) Dutch-Bangla Bank Ltd.- LTR - 1,200,000,000 - -
nAtionAl Cement mills limited Annual report 2014 - 2015

Notes to the Financial Statements

For the year ended 30 June 2015

16.2 Security against bank loan facilities :

a) i. D.P Note and other basic charge documents duly signed and sealed by authorized directors;
ii. 24(twenty four) undated/post dated cheques, each cheque covering amount of 3(three) monthly installments with up-to-date
interest and one undated/post dated cheques covering entire Term Loan accrued interest.
iii. Standard Term Loan agreement (as per draft of Legal Advisor) covering usual convenants.
b,c,d) i. Pari passu security sharing agreement over the registered mortgage of factory land & building at Issa Nagar Ctg and also the
fixed & floating assets of the company with others.
ii) Personal Guarantee of all the Directors of all the company
iii) Corporate Guarantee of the Group.
iv) 1(one) separate post dated cheque of our Bank favouring Pubali Bank Limited Covering each L/C & Demand loan with estimated
interest.
v) Acceptance, Trust Receipt, D.P. Note (Joint & Single), L/Continuity, L/Guarantee and other necessary charge documents etc.
e) i. D.P Note and other basic charge documents duly signed and sealed by authorized directors;
ii) Undated/post dated cheque covering the STL amount
iii) Personal guarantee of all the Directors of the company
f) Facility to be utilized: M/s. Premier Cement Mills Limited, and M/S National Cement Mills Limited
i) Documents of Title to Goods (as and when received)
ii) Acceptance of Usance Draft and TR From duly executed.

30.06.2015 30.06.2014
Notes
Taka Taka

17 Laiability for other finance

Security Deposit-Customer 4,200,000 -
4,200,000 -

18 Due to associate company

Premier Cement Mills Limited 18.1 162,803,938 225,799,378
The above mentioned sum due to associate company represent short-term loan carrying varying interest per annum extended by Premier Cement
Mills Limited based on company’s Board decision.

18.1 Opening Balance 225,799,378 252,491,147

Add : Receipt During the year 305,862,561 438,110,961
Less :Settlement during the year 368,858,001 464,802,730
162,803,938 225,799,378

19 Provision for taxation

Opening Balance 2,201,651 4,186,872
Add, Current tax expenses:
Current year 2,940,125 2,201,651
Prior year (short provision) - 11,115,383
2,940,125 13,317,034
5,141,776 17,503,906
Less, AIT adjustment ( Note-8.1.1) - 15,302,255
5,141,776 2,201,651

137
 nAtionAl Cement mills limited

Notes to the Financial Statements

For the year ended 30 June 2015

20. Revenue- net

2014-2015 2013-2014
Measuring unit
Quantity Amount Quantity Amount
Revenue from local sales MT 150,432 965,280,863 111,957 720,400,180
150,432 965,280,863 111,957 720,400,180

2014-15 2013-14
Taka Taka
Gross Sales 1,111,298,162 828,460,211
Less : VAT 146,017,299 108,060,031
965,280,863 720,400,180

21. Cost of Goods Sold

Opening stock of finished goods & W.I.P 8,862,492 -
Raw Materials (note-21.1) 625,234,147 459,347,947
Packing Materials (note-21.2) 51,802,270 39,735,223
Consumble Store (note-21.3) - 214,828
Conversion Cost (note-21.4) 240,014,454 165,693,325
Goods available for sale 925,913,363 664,991,323
Closing stock of finished goods & W.I.P (44,238,079) (8,862,492)
881,675,284 656,128,831
21.1. Raw Materials Consumed
Opening inventory 152,317,096 57,229,304
Purchase during the year 728,508,068 554,435,739
Raw Materals available for use 880,825,164 611,665,043
Closing inventory (255,591,017) (152,317,096)
625,234,147 459,347,947
21.2. Packing Materials Consumed
Opening Balance 1,549,016 930,575
Purchase during the year 53,898,764 40,353,664
Packing Materials available for use 55,447,780 41,284,239
Closing Inventory (3,645,510) (1,549,016)
51,802,270 39,735,223
21.3. Consumable Stores Consumed
Opening Balance 5,996,155 3,210,983
Purchase during the year 3,893,613 3,000,000
Consumable stores available for use 9,889,768 6,210,983
Closing Inventory 9,889,768 5,996,155
- 214,828

138
nAtionAl Cement mills limited Annual report 2014 - 2015

Notes to the Financial Statements

For the year ended 30 June 2015

2014-15 2013-14
Taka Taka
21.4. Conversion Cost
Salary & Allowances 24,495,117 21,707,561
Repairs & Maintance 3,081,202 6,116,799
Accommodation Expenses 320,268 305,460
Carrying Charges 712,195 362,822
Conveyance & Travelling 449,716 164,205
Electricity Charges 92,796,497 40,739,137
Entertainment 323,020 350,402
Fooding Expenses 1,474,430 1,601,988
Payloader expenses 3,273,270 2,551,827
Lab Expencess 413,145 384,050
Labour Charges 5,945,169 5,870,692
Land Revenue, Rate & Insurance 12,500 19,091
Legal, Renewal & Professional Fee 115,904 1,406,023
Medical Expenses 25,865 60,721
Miscellaneous Expencess 512,402 753,309
Printing & Stationary 164,535 110,100
Paper & Periodicals 1,750 620
Gift & Presentation 519,000 103,235
Fire Insurance - 635,642
Telephone,Moblie & Internet 282,981 152,681
Postage & stamp 1,068 4,200
Depreciation 105,094,420 82,292,760
Total Conversion Cost 240,014,454 165,693,325

22. Non-operating income/(loss)

Carrying Income/ (Loss)-Net 13,353,935 13,289,524
Misc Income Factory - 80,000
Rental Income from GP 114,000 114,000
Fluctuation Gain/(loss) 1,004,702 -
FDR Interest Income 288,031 -
14,760,668 13,483,524

23. Administrative expenses

Salary & Allowances 3,918,807 2,514,352
Audit Fee 86,250 86,250
Conveyance & Travelling 189,469 45,229
Entertainment 5,562 9,417
Fooding Expenses(Head Office) 188,223 187,810
Guest House Expense 447,688 270,388
Legal, Renewal Fee 1,422,945 1,058,344
Misc Expenses 923,895 299,660
Postage & Stamp 11,170 4,830
Printing & Stationary 35,648 50,993
Telephone, Mobile, Fax & Internate 111,616 151,585
Depreciation 119,285 58,670
7,460,558 4,737,528

139
 nAtionAl Cement mills limited

Notes to the Financial Statements

For the year ended 30 June 2015

2014-15 2013-14
Taka Taka

24. Selling & distribution expenses

Salary & Allowances 5,897,479 3,854,205
Telephone, Mobile, Fax & Internet 255,251 79,513
Conveyance & Travelling 974,883 366,083
Advertisement 174,300 430
Entertainment 37,831 -
Halkata Expenditure - 50,000
Printing & Stationary 48,880 35,270
Labour Charges 3,300,914 2,029,557
Medical Expenses 33,205 140,000
Promotional Expenses 1,123,165 230,897
Vehicle Licence Renewal & Insurance 733,023 370,333
Postage & Stamp 3,500 -
Depreciation 119,285 58,670
12,701,716 7,214,958

25. Financial expenses

Bank charge 974,098 1,050,876
Interest on Bank loan 69,251,804 46,766,139
70,225,902 47,817,015

26 Related Party Disclosure

Name of related party Relation Outstanding as on 01.07.2014 Net transaction during the year Outstanding as on 30.06.2015

Premier Cement Mills Limited Associate Co. 225,799,378 (62,995,440) 162,803,938

27 Net Asset Value Per Share (NAVPS)

The computation of NAVPS is given below :
Total Assets 2,295,214,638 2,020,659,542
Libilities 1,678,020,167 1,408,503,017
Net Asset Value (NAV) 617,194,471 612,156,525
Number of ordinary shares during the year 17,500,000 17,500,000
Net Asset Value Per Share 35.27 34.98

28 Earning Per shares (EPS)

Earning attributable to the ordinary shareholders (NPAT) 5,037,946 4,668,339
Weighted average number of shares outstanding during the year 17,500,000 17,500,000
Basic earnings per share (par value of Taka 10) 0.29 0.27

29 Net Operating Cash Flows Per Share

Net Operating Cash Flows 6,699,130 (146,605,964)
Number of ordinary shares during the year 17,500,000 17,500,000
Net Operating Cash Flows Per Share 0.38 (8.38)

140
nAtionAl Cement mills limited Annual report 2014 - 2015

Notes to the Financial Statements

For the year ended 30 June 2015

30 Capacity Utilization
Actual average monthly production is 482 M T against a verage monthly capacity of 1400 M T i.e capacit y utilizationis 34.43% a t 2014-15 wher e
43% at 2013-14.

2014-15 2013-14
Taka Taka

31 Contingent liabilities
Dutch Bangla Bank Limited 51,880,471 61,304,488
Pubali Bank Limited 5,465,720 -
57,346,191 61,304,488

32 Number of Employees
Management 10 5
Staff 320 278
Total Number of Employees 330 283

33 Others
Directors’ Remuneration
There is no remuneration paid to the directors during the period.

Directors’ fees for attending board meeting

There is no fees paid to the directors for attending board meeting.

Receivable from director

No amount is lying as receivable from the directors.

Managing Director Director Company’s Secretary

Dated, Chittagong
September 13, 2015

141
 nAtionAl Cement mills limited

Statement of Property, plant and equipment

For the year ended 30 June 2015
Annexure -A

Cost Depreciation
Written Down
Rate Value as on June
Category of Assets Balance as on July Addition During Balance as on June Balance as on Charged During Balance as on
30, 2015
01, 2014 the Year 30, 2015 July 01, 2014 the Year June 30, 2015

Taka Taka Taka % Taka Taka Taka Taka

1 2 3 4 5 6 7 8=6+7 9=(4-8)

Land & Land Development 78,658,072 9,318,084 87,976,156 0% - - - 87,976,156

Factory Building 511,938,800 14,196,402 526,135,202 5% 83,272,893 21,788,205 105,061,098 421,074,104
Office Building 32,250,755 1,464,982 33,715,737 5% 2,903,600 1,503,982 4,407,582 29,308,155
Plant & Machinery 978,414,929 88,530,849 1,066,945,778 7.5% 152,624,693 65,254,175 217,878,868 849,066,910
Wheel Loader 24,210,286 223,348 24,433,634 7.5% 2,579,385 1,630,693 4,210,078 20,223,556
Loose Tools 7,634,500 198,000 7,832,500 10% 4,119,299 361,420 4,480,719 3,351,781
Furniture & Fixtures 1,124,316 4,400 1,128,716 10% 345,244 78,127 423,371 705,345
Office Equipment 2,688,328 561,400 3,249,728 10% 171,762 279,727 451,489 2,798,239
Jetty Construction 115,217,802 5,709,371 120,927,173 10% 15,330,213 10,274,227 25,604,440 95,322,733
Grinding Media 10,890,108 18,597,824 29,487,932 25% 3,539,285 4,162,434 7,701,719 21,786,213
Motor Vehicles 61,194,310 3,255,500 64,449,810 10% 3,463,010 5,935,905 9,398,915 55,050,895
Balance as of 2014-2015 1,824,222,206 142,060,160 1,966,282,366 268,349,384 111,268,895 379,618,279 1,586,664,087
Balance as of 2013-2014 1,472,940,477 351,281,729 1,824,222,206 183,627,575 84,721,809 268,349,384 1,555,872,822

2014-2015 2013-2014
Taka Taka

Allocation of Depreciation:
Conversion cost 105,094,420 82,292,760
Administrative expenses 119,285 58,670
Selling & distribution expenses 119,285 58,670
Carrying Income/ (Loss)-Net 5,935,905 2,311,710
111,268,895 84,721,809

142
Premier Cement mills limited Annual report 2014 - 2015

Five years’ performance at a glance

5 Years Comparative Income Statement (Consolidated)

Particulars 30-Jun-15 30-Jun-14 30-Jun-13 30-Jun-12 30-Jun-11
Revenue 8,098,701,152 7,539,574,982 6,416,662,323 4,289,147,693 3,428,083,698
Cost of sales (6,859,763,360) (6,243,640,861) (5,263,071,062) (3,757,839,878) (2,792,429,437)
Gross Profit 1,238,937,792 1,295,934,121 1,153,591,261 531,307,815 635,654,261
Other Income/ (Expenses) 111,936,424 184,719,720 273,854,481 154,309,045 15,731,353
Administrative Expenses (89,854,024) (109,112,854) (106,844,867) (63,990,060) (41,751,262)
Selling & Distribution Exp (352,998,095) (265,439,660) (194,605,691) (138,783,514) (95,804,515)
Profit From Operation 908,022,098 1,106,101,327 1,125,995,184 482,843,286 513,829,837
Finance Cost (456,793,609) (377,794,346) (327,241,033) (142,677,601) (68,067,308)
Contribution to WP & PF (19,684,997) (33,530,776) (38,213,301) (17,473,110) (21,129,697)
Profit Before Income Tax 431,543,492 694,776,205 760,540,850 322,692,575 424,632,832
Current Tax Expenses (32,462,095) (233,676,866) (65,490,827) (106,235,165) (68,040,042)
Deferred Tax Income/ (Expenses) 9,836,205 48,002,879 (195,882,457) (42,135,916) (30,080,322)
Profit After Income Tax 408,917,603 509,102,218 499,167,566 174,321,494 326,512,468
EPS 3.83 4.78 5.00 1.87 4.07

5 Years Balance Sheet (Consolidated)

Particulars 30-Jun-15 30-Jun-14 30-Jun-13 30-Jun-12 30-Jun-11
ASSETS
PPE 5,878,662,922 5,466,159,025 5,150,484,594 2,403,365,230 1,878,082,432
Capital work-in-progress 51,150,482 478,898,506 156,377,978 1,996,136,174 275,871,060
Investment in associate 70,000,000
Total non-current assets 5,929,813,404 5,945,057,531 5,306,862,572 4,399,501,404 2,223,953,492
Inventories 1,303,893,964 1,282,263,619 789,597,607 536,625,624 689,410,200
Trade and other receivables 1,390,891,206 1,322,212,717 1,058,028,972 666,900,254 489,595,303
Advances, deposits and pre-payment 1,070,746,142 936,140,233 806,594,430 852,351,480 515,625,233
Investment in FDR 229,863,228 183,604,362 130,571,470 60,219,529 -
Current account with associate - - - - 125,124,323
Cash and bank balances 164,121,665 134,141,336 404,570,422 86,466,273 84,222,139
Total Current Assets 4,159,516,204 3,858,362,266 3,189,362,901 2,202,563,160 1,903,977,198
Total Asset 10,089,329,608 9,803,419,797 8,496,225,473 6,602,064,564 4,127,930,690
Equity
Share capital 1,054,500,000 1,054,500,000 1,054,500,000 934,500,000 890,000,000
Revaluation reserve 351,893,242 356,868,534 362,312,633 368,322,020 374,104,683
Tax holiday reserve 2,274,386 2,274,386 2,274,386 2,274,386 -
Share premium 441,835,000 441,835,000 441,835,000 311,500,000 -
Retained earnings 1,255,410,961 1,162,879,482 1,075,086,456 575,120,386 425,718,439
Total equity attributable to equity holders of the Company 3,105,913,589 3,018,357,402 2,936,008,475 2,191,716,792 1,689,823,122
Share money deposit 210,000,000 210,000,000 210,000,000 356,000,000
Non controlling interest 81,930,666 76,919,251 71,965,959 66,755,076 1,637,180
Total equity 3,397,844,255 3,305,276,653 3,217,974,434 2,258,471,868 2,047,460,302
LIABILITIES
Deferred tax liability/(assets) 300,142,360 309,978,565 357,981,444 162,098,987 119,963,071
Long term loan 1,506,723,099 1,087,215,751 605,835,860 937,639,646 -
Provision for gratuity 81,780,538 59,788,044 40,458,734 26,833,840 15,630,304
Total non-current liabilities 1,888,645,997 1,456,982,360 1,004,276,038 1,126,572,473 135,593,375
Trade and other payable 349,797,791 279,583,089 814,191,402 406,417,185 165,616,749
Short term bank loan 3,813,600,695 4,326,192,283 3,141,026,180 2,492,266,858 1,674,857,177
Current portion of long term loan 494,625,160 188,373,392 183,211,499 142,728,173 -
Liability for other finance 76,714,212 70,420,750 61,515,150 70,085,650 15,852,335
Contribution to WP & PF 19,684,997 33,530,776 38,213,301 17,473,111 21,129,697
Provision for taxation 48,416,501 143,060,493 35,817,470 88,049,246 67,421,056
Total current liability 4,802,839,355 5,041,160,783 4,273,975,002 3,217,020,223 1,944,892,014
Total liability 6,691,485,353 6,498,143,143 5,278,251,040 4,343,592,696 2,080,485,389
Total equity and liability 10,089,329,608 9,803,419,796 8,496,225,474 6,602,064,564 4,127,945,691

143
 Premier Cement Mills Limited

Credit Rating Report

144
Premier Cement mills limited Annual report 2014 - 2015

Redressal of investors’ complaints

A dedica ted t eam of the C orporate A ffairs department has been established b y the managemen t of P remier Cement M ills Limit ed t o
address and deliv er prompt feedback to numerous problems of its shar eowners and in vestors regarding IPO and post IPO pr oceedings.
During the period under review the depar tment has been r eceived and settled out the f ollowing shareholders’ complaints in its soonest
possible time:

No. of Resolved/ served Non

Complaints actionable
Sl Type of Complaints/ requests Pending
received during Within 15 Within 30 no. of
the year days days complaints
1 Non receipt of Dividend 202 202 0 0 0
2 Name/ Account information change of shareholders 17 17 0 0 0
3 Request for TDS certificate 57 57 0 0 0
4 Non receipt of Refund Warrant payment 25 25 0 0 0
5 Non receipt of Statutory reports 11 11 0 0 0
Any other complaints/ queries from regulatory bodies
6 0 0 0 0 0
or shareholders

Contact information for investors

Our key people of C orporate Affairs are always keen to serve the investors at any circumstance regardless to their holding positions . We
promise you to deliver prompt and efficient solution to any kind of problems or complaints that you might face regarding AGM, Dividend
and Change in Name or Address, Transfer of shares etc. We also highly appreciate your suggestions and valuable proposals regarding our
operation and management. For any queries of our valued shareholders please do not hesitate to knock us on:

ADDRESS CONTACT NUMBERS

Mobile: +8801955-123039, +8801955-123024,

Corporate Affairs (Share Department),
Phone: 02-9144788, 02-9127610,
Premier Cement Mills Limited,
02-9129826, 02-9126220
TK Bhaban (12th Floor),
Fax: +880-02-9139797~8
13 Karwn Bazar, Dhaka – 1215.
E-Mail: info@premiercement.com

145
 Premier Cement mills limited

Corporate compliance calendar

Date
Particulars
2012-2013 2013-2014 2014-2015

Submission of First Qtr Financial Report 14 November 13 November 13 November

Submission of Half Yearly Financial Report 31 January 30 January 28 January
Submission of Third Qtr Financial Report 30 April 29 April 29 April
BOD meeting f or adopting y early F inancial Sta tements and Dividend
28 October 28 October 23 September
recommendation
Submission of Audited Financial Statements 11 November 10 November 6 October
Publication of Price sensitive information 30 November 30 November 29 September
Record Date 10 Nov 2013 17 Nov 2014 18 Oct 2015
Date of holding the Annual General Meeting 17 Dec 2013 27 Dec 2014 26 Nov 2015

AGM HELPLINE
FOR ANY QUERY OF OUR VALUED SHAREHOLDERS,
PLEASE CALL

+8801955-123039
+8801955-123024
+8802-9144788
+8802-9127610
+8802-9129826
+8802-9126220

146
 proxy form Premier Cement Mills Limited
Registered Office: Taher Chamber, 10 Agrabad C/A, Chittagong-4100

I/We ........................................................................................................................................................................ of ......................................................

.......................................................................................................................................... being a member of Premier Cement Mills Limited hereby
appoint Mr./Ms . .................................................................................................................................................................... of ......................................
............................................................ as my/our proxy to attend and vote for me/us on my/our behalf at the 13th Annual General Meeting of the
company to be held on Thursday, 26th November 2015, at 11:00 a.m. at Auditorium of Chittagong Club Limited, S.S. Khaled Road, Chittagong.
Signed this ....................................... day of ................... 2015.

...................................................................... ......................................................................
Signature of the Shareholder (s) Signature of the Proxy

Number of Shares held ................................

Folio no

Folio no
Note :
A member entitled to attend and vote at the Annual General Meeting may appoint proxy to attend and vote in his/her stead. The proxy form should
reach the Registered/Corporate Office of their company not less than 48 hours before the time fixed for the meeting.
Signature Verified

Revenue
Stamp
Tk. 20.00 ......................................................................
Authorised Signatory
Premier Cement Mills Limited

Shareholders’ Attendance Slip Premier Cement Mills Limited

Registered Office: Taher Chamber, 10 Agrabad C/A, Chittagong-4100

I hereby record my presence at the 13th Annual General Meeting of Premier Cement Mills Limited on Thursday, 26th November 2015, at 11:00 a.m.
at Auditorium of Chittagong Club Limited, S.S. Khaled Road, Chittagong.

Name of the member/Proxy

(in Block Letter)

Folio No.

Mobile Number

E-mail address (if any)

Signature Verified by

...................................................................... ......................................................................
Signature of the Member/Proxy Authorised Signatory of the Company

NOTE :

Please complete this Attendance Slip and deposit at the registration counter on the day of the meeting.