salvo chemical industry limited
TRANSCRIPT
SALVO CHEMICAL INDUSTRY LIMITED
3rd Quarter Financial Statements (Q3)
of
SALVO CHEMICAL INDUSTRY LIMITED
for the period ended 31 March 2021
Salvo Chemical Industry Limited Notes to the Financial Statements
For the year ended March 31, 2021 01. BACKGROUND AND OBJECTIVES OF THE COMPANY
01.01 Introduction and Legal Status
The company was incorporated as a private limited company in Bangladesh in the name &
style of Salvo Chemical Industry Limited under the Companies Act, 1994, vide Reg. No. “C-44978(1446) 2002” dated 29 January, 2002 with the Registrar of Joint Stock Companies & Firms (RJSCF), Dhaka. Subsequently the Company was converted to a Public Limited
Company by registration on 04 August 2008 from the Registrar of Joint Stock Companies & Firms (RJSCF). Corporate office of the company is situated at “Suite No.# 401, (3rd Floor),
210-211, Nawabpur Road, Dhaka-1100” and the factory located at “South Dhonua, Sripur, Gazipur. The Company went for public issue in 2011 and its shares are listed in both Dhaka Stock Exchange and Chittagong Stock Exchange on 18.04.2011 and 20.04.2011
respectively. Consequently the company has acquired the following licenses and legal Approvals:
Sl.
No.
Name of License Registration of license Date of License
Renewed up to
1. Trade License (Factory) 38 24/06/2007 2020-2021
2. Trade License (Head Office) 089967/Ward No.32 16/03/2005 2020-2021
3. Tax Identification Number 440684599827 05/03/2002 N/A
4. Assessment completion - - Up to 2019-
2020
5. BIN Number 000313586 01/10/2002 N/A
6. Import Registration
Certificate
BA-135303 13/07/2003 2020-2021
7. DCCI Membership Certificate
11138 27/12/2007 31.12.2021
8. Board of Investment L-28010204010-H 01/04/2002 N/A
9. Environment Clearance
Certificate
PARIBESH/DA-B/4701/Re
950
24/07/2004 2021
10. Fire License DHAKA/17582/2003 27/04/2003 2021
11. Production Clearance
Certificate from Department of Explosives
9/(40)/1-2/3441 7/5/2003 N/A
12. Factory License from chief inspector of Factories
11911/Gazipur 31/12/2003 2021
13. Boiler Certificate 3030 27/10/2003 2021
14. Sulphar Stock License For Production of H2So4
Gazipur D.C Office No. 134-01/2003
22/08/2003 2021
15. Trade Mark Registration App. No. 81276-01 22/07/2003 N/A
01.02 Nature of Business
The company has been established with a view to producing and supply of different chemicals for local consumption. Some of the chemicals are, interalia:
a) Sulphuric Acid ;
b) Battery Grade Water c) Magnesium Sulphate & Zinc Sulphate; d) Liquid Glucose;
e) Starch etc. The company is now producing Sulphuric Acid and Liquid Glucose as “Main Product” &
Battery Grade Water as “By-product”. The commercial production of product "Liquid Glucose" starts from 09 August 2018.
The company has decided to set up progressive plant of Corn Starch with the existing Liquid
Glucose unit to grab the huge potential market at food, pharmaceutical, paper & textile industry at Bangladesh. Through implementing the project, the company will be able to improve the excellence for producing raw material of Liquid Glucose unit at its own plant
which will reduce cost of materials as well as unique product for sale. With the new manufacturing units, the company will produce around 25,000 Metric Ton Corn Starch per year. Total estimated project cost will be 70.00 crore. This project will be cost-effective for
the company with the existing business set-up. It may be noted that the above decisions were taken by the Board of Directors meeting in its 163th meeting held on October 28, 2020 at 3:00 p.m.
02. SIGNIFICANT ACCOUNTING POLICIES
02.01 Accounting Basis The financial statements have been prepared on a going concern basis under historical cost convention on accrual basis and in accordance with, IAS, IFRS. The accounting polices
have been consistently followed.
02.02 Basis of Preparation and Presentation of the Financial Statements The financial statements have been prepared and the disclosure of information thereof have been made in accordance with the requirements of the International Accounting Standards
(IASs) and the International Financial Reporting Standards (IFRS) as adopted by Institute of Chartered Accountants of Bangladesh (ICAB) and the companies Act- 1994 and other the applicable laws, rules and regulations.
02.03 Recognition of Tangible Property, Plant & Equipment
Recognition
Assets having a useful life for more than a year are generally capitalized. Fixed Assets are stated at cost less accumulated depreciation. Cost of assets represents cost of acquisition plus construction, erection and other relevant expenditure etc.
Lease assets in case acquired, for transfer of ownership, as a Finance Lease shall be recognized in accordance with International Accounting Standard (IAS)-17. Depreciation
No depreciation has been charged on land & land development. Depreciation has been charged on all other fixed assets, acquired either purchase or lease, applying diminishing
balance method. All the assets acquired during the year have been depreciated considering month of Acquisition and available for use. The rates of depreciation are as follows: Category Rate
Factory Building & Construction 5%
Plant & Machinery 10%
Electric Installation 10%
Office Equipments 10%
Furniture 10%
Vehicles 10%
02.04 Inventories
In compliance with the requirement of IAS-2 “Inventories”, Raw Materials and Stores are valued at the lower of average cost and the net realizable value. The costs of inventories are
valued at weighted average price. 02.05 Cash and Cash Equivalents
Cash and Cash Equivalents include cash in hand, cash at bank and cash at BO Account
which are held and available for use by the company without any restriction and in support of the Articles of Association of the company.
02.06 Cash Flow Statement Cash Flow Statement is prepared in accordance with the requirements of IAS- 7 (“Cash Flow
Statement”) under direct method. 02.07 Revenue Recognition
Revenue from the sale of chemical is recognized when:
i) Significant risk and rewards of ownership is transferred to the customers,
ii) The company has no managerial involvement of ownership to the goods, iii) The amount of revenue and cost of the transaction can be measured reliably, and iv) Invoice and delivery challan are issued to the customers.
02.08 Provision for expenses
While the provision for certain charges and known liabilities is made at the balance sheet date based on estimate, the difference arising there from on receipts of bills/ demands and/ or actual payments is adjusted in the subsequent year when such liabilities are settled.
02.09 Taxation
Provision for income tax has been made in the accounts @ 25% as applicable for a public limited company considering Finance Act, 2019 and accounted for in accordance with IAS 12: Income Taxes.
02.10 Earning Per Share
“Basic Earning per Share (EPS)” & “Earning per Share (EPS)- Restated” have been calculated under weighted average method as per IAS-33: Earning per share.
02.11 Borrowing Costs
In compliance with the requirements of BAS 23 “Borrowing Costs” borrowing costs directly
attributable to the acquisition, construction and production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale are added to the cost of these assets, until such time as the asset are substantially
ready for their intended use or sale.
Borrowing costs are recognized as expenses in the period in which they incurred and capitalized the same that incurred before commencement of commercial operation.
02.12 Integral Components of the Financial Statements In compliance with the International Accounting Standard (IAS)-1 “Presentation of Financial Statements,” the following components are annexed with this component (Notes to the
Financial Statements):
i) Statement of Financial Position as at March 31, 2021; ii) Statement of Profit or Loss and Other Comprehensive Income for the period from 01 July
2020 to March 31, 2021; iii) Statement of Changes in Equity for the period ended March 31, 2021; iv) Statement of Cash Flows for the period ended March 31, 2021.
v) Notes, comprising significant accounting policies and other explanatory information’s for the period ended March 31, 2021.
02.13 Comparative Information: Comparative information have been disclosed in respect of the previous year for all
numerical information in the financial statements and also the narrative and descriptive information when it is relevant for understanding of the current year ’s financial statements.
02.14 Comparative Information: The Companies complied, as per Para 12 of Securities & Exchange Rule 1987, with the following International Accounting Standards (IASs) as adopted by The Institute of Chartered
Accountants of Bangladesh (ICAB) in preparing the financial statements of the Company subject to departure where we have followed:
Sl. No.
IAS & IFRS No. IFRS / IAS Title
Compliance
Status
1 IAS 1 Presentation of Financial Statements Complied
2 IAS 2 Inventories Complied
3 IAS 7 Statement of Cash Flows Complied
4 IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
Complied
5 IAS 10 Events after the Reporting Period Complied
6 IAS 12 Income Taxes Complied
7 IAS 16 Property, Plant & Equipment Complied
8 IAS 17 Leases Complied
9 IAS 19 Employee Benefits Complied
10 IAS 23 Borrowing Costs Complied
11 IAS 24 Related Party Disclosures Complied
12 IAS 33 Earnings per Share Complied
13 IAS 36 Impairment of Assets Complied
14 IAS 37 Provisions, Contingent Liabilities and Contingent
Assets
Complied
15 IFRS 15 Revenue from controls with customers Complied
02.16 General
i) Figures shown in the accounts have been rounded-off to the nearest Taka;
ii) Previous year figures have been re-arranged where necessary to confirm to current
year’s presentation;
iii) All shares have been fully called-up and paid-up;
iv) There was no Contingent Liability.
v) Bank Balance shown in the accounts were duly reconciled.
Mar 31, 2021 June 30, 2020
03 Property, Plant and Equipment
A. Cost Information
Opening balance 1,342,839,949 1,281,945,752
Addition during the period 13,921,886 60,894,197
Total assets value at cost 1,356,761,835 1,342,839,949
B. Accumulated Depreciation
Opening Balance 459,272,528 387,569,451
Current period deprecation 51,058,441 71,703,077
510,330,969 459,272,528
Written down value (WDV) [A-B] 846,430,866 883,567,421
Details of property, plant & equipment are shown in the annexed Annexure-A.
04 Intangible Asset
A. Cost
Opening Balance 60,000 60,000
Addition during the period - -
60,000 60,000
B. Accumulated Amortization
Opening Balance 46,961 45,512
Current period amortization 978 1,449
47,939 46,961
Written down value (WDV) [A-B] 12,061 13,039
Details of Intangible Assets are shown in the annexed Annexure-B.
05 Capital work in progress
Opening Balance 578,810,770 446,340,681
Add: Addition during the period 150,183,133 144,121,084
728,993,903 590,461,765
Less: Transfer to Property, Plant and Equipment - 55,483,622
Add: Borroeing Cost 10,993,924 43,832,627
728,993,903 578,810,770
Notes ParticularsAmount in Taka
Mar 31, 2021 June 30, 2020Notes Particulars
Amount in Taka
06 Advance, Deposits & Pre-payments
Advance Income Tax 06.01 49,432,247 41,174,491
Advance against Rent -Factory 40,000 40,000
Advance against L/C- Margin & Purchase 5,394,803 4,518,943
Advance against Construction 14,500,000 14,500,000
Advance against Salary 94,355 773,538
Advance agains purchase land 5,794,320 5,794,320
Security Deposit- Telephone (3 Nos.) 30,000 30,000
Security Deposit- Electric Connection (Mymansing PBS-2) 8,745,644 8,745,644
Advance for Expenses 5,825,499 3,656,425
89,856,868 79,233,361
06.01 Advance Income Tax
Opening Balance 41,174,491 29,699,126
Add: Addition during the period 8,257,756 11,475,365
49,432,247 41,174,491
Less: Adjustment During the period - -
49,432,247 41,174,491
07 Inventories
Raw Materials 07.01 54,159,208 102,962,493
Work in process 1,236,523 657,036
Finished Goods 07.02 38,506,506 17,726,691
93,902,237 121,346,220
07.01 Closing Stock of Raw Material
Sulphur 1,550,368 36,377,634
Caustic Soda 2,398,250 1,614,804
Lime 33,186 127,912
Soda ash 1,698,738 3,145,627
Maize 19,927,557 25,591,817
Starch 14,526,326 22,428,570
Clearflow AA (Food Grade Enzyme) 3,618,231 5,597,599
Sodium Metabi Sulphate 2,011,632 2,572,135
Activated Carbon 3,276,420 1,864,090
Acid Resin 1,953,994 1,953,994
Hydrochoric Acid 408,184 262,478
Others 2,756,322 1,425,833
54,159,208 102,962,493
Advance Income Tax amounting Tk. 21,368,788 carried forwarded since 2012-2013, because there
is a suit on honourable high court against 2009-2010, 2010-2011, 2011-2012 and 2012-2013
financial year assessment.
Mar 31, 2021 June 30, 2020Notes Particulars
Amount in Taka
07.02 Finished Goods
Sulphuric Acid 12,759,180 10,469,605
Liquid Glucose 13,292,529 2,932,411
Battery Grade Water 4,661,770 4,324,676
By-Product:
Gluten 5,482,600 -
Germ 1,074,327 -
Fiber 1,236,100 -
Total Value of Closing Stock of Finished Goods 38,506,506 17,726,691
08 Spare Parts
Opening Balance 9,409,339 8,170,867
Addition during the period 327,483 3,356,069
Spare Parts Available for use 9,736,822 11,526,936
Less: Issued during the period 750,822 2,117,597
8,986,000 9,409,339
09 Trade Receivable
Aysha Trading Corporation 3,410,988 6,235,098
Abul Khair Consumer Products Ltd. 2,798,995 2,277,000
Ak Motors - 40,125
Asad Trading 1,380,835 113,610
ASM Chemical 78,780 -
Bhai Bhai Dairy (BP) - 115,400
Bangas Holding Ltd. - 177,000
Baizid Enterprise 160,000
Ceylon Biscuits 271,500 -
Friends Chemical 8,649,486 4,978,627
Farid & Co. 3,055,500 -
Gazi Corporation - 111,253
Hassan Chemical (Kustia) 1,615,653 6,407,573
Hasan Chemical Supply & Pharmaceutical Ind. 745,202 5,226,589
Zaman Enterprise 3,092,594 2,296,098
Jharna Chemical 2,503,211 3,164,300
Kamal Enterprise (FD) 75,200 -
Mita Chemical & Scientific Store 3,206,658 6,959,769
Metador Food and Allied Ind. 548,550 -
Nirob Enterprise - 11
N P Chemical 2,471,854 7,810,683
Noor Perfumery - 59,800
Nabisco Bread & Biscuts 662,400 -
Next Food 1,049,700 -
Olympic Induatries Ltd. 10,019,700 8,043,460
Mar 31, 2021 June 30, 2020Notes Particulars
Amount in Taka
Palash Banijja Bitan 3,859,240 1,152,118
Perfetti Van Melle Bangladesh Pvt. Ltd. 6,883,250 2,551,850
Reedisha Food & Beverage Ltd. - 10,100
Sawdagar Trading 1,652,300 616,800
Shahjahan Chemical Industry 2,874,936 6,538,938
Smart Bio Inception 719,600 -
Tareque Enterprise 1,752,632 7,083,899
63,538,764 71,970,101
09.1 Ageing of Trade Receivable
Due within 6 Months 56,557,125 63,282,659
Due within above 6 Months 6,981,639 8,687,442
63,538,764 71,970,101
10 Others Receivable
M/s. A.A. Enterprise 3,407,515 3,010,949
Ashrag Traders 5,900 -
Crown Cement 497,992 497,992
City Alminum Fabricator 295,700 111,500
Bright Scientific Co. 578,230 28,230
Bengal Polly & Paper Sack Ltd 100,000 100,000
Boishakhi Enterprise 1,457,000 307,000
Farhad Nagar Machineries 26,000 -
PF Fund Loan 3,568,714 1,906,044
Shahjalal Engineering 3,550,000 3,550,000
Runner Motors Ltd. 202,500 202,500
Abul Khair Steel Mills Ltd 119,000 119,000
Dainamic Steel 200,000 200,000
Daily Jugantor - 26,250
GQ Industries Ltd. 989,822 153,000
Hawlader Enterprise 191,000 191,000
Link3 Technologies Ltd. 13,800 4,600
Mitali Light House 69,200 39,200
New Panama Printers - 1,785,000
Perfect Tools & Insulation - 62,779
Protha Enterprise - 1,468
Insia Enterprise 5,817,208 -
PPF receivable 2,213,162 3,360,054
Ratan Enterprise 175,000 175,000
Radix Service 25,000 25,000
Rumi Enterprise 166,550 166,550
Mar 31, 2021 June 30, 2020Notes Particulars
Amount in Taka
RV Tharmal Engineering Co. 498,453 498,453
Satcom Engineering Company - 3,265,228
Satcom IT Limited - 400,000
SGS Bangladesh Ltd 94,300 -
Uttaran Enterprise 1,331,140 1,331,140
Receivable from employee against PPF 2,311,706 2,213,162
27,904,892 23,731,099
11 Cash and Cash Equivalents
Cash in Hand (A) 1,026,316 612,285
Head Office 901,227 493,164
Factory 125,089 119,121
Cash at Bank (B) 29,482,006 22,233,366
NCC Bank, A/C # 0210014874 2,421 2,564
NCC Bank, A/C # 0325000813 14,377,289 14,264,483
NCC Bank, A/C # 00280210017915 126,522 127,247
Dutch Bangla Bank, A/C # 10511015936 3,896,276 48,014
Dutch Bangla Bank, A/C # 1011200007473 661,067 -
Dutch Bangla Bank, A/C # 1011100053146 4,713
MTBL, C/A # 2032003267 664,390 660,702
Social Investment Bank Ltd., A/C # 133300000121 10,689 10,689
SIBL, C/A # 0211330009134 Dhanmondi Br. 17,893 17,893
SIBL, C/A # 0221330009875, Nawabpur Road Br. 95,780 5,267,369
SIBL, STD # 0221360001242 2,737,642 59,574
SIBL, C/A # 1011330000019, Mawna Br. 470,551 1,542,632
Sonali Bank Ltd, CD # 0002602005413 48,965 49,310
Standard Bank, A/C # 22733000368 639,130
Premier (PBL) Bank, CD # 010211100015969 88,746 88,746
Al-Arafah Islami Bank Ltd. # 024103, Navabpur Br. 4,193,114 57,029
Agrani Bank Ltd. CD # 0200014164461 52,737 27,907
BCB, CD # 00721001123 1,384,874 -
Bank Asia, C/A # 03533000949, Shantinagar Br. 7,440 7,440
Basic Bank Ltd, C/A # 0210010007825 1,767 1,767
B.O. A/C-19573, Shyamol Equity Management Ltd. (C) 11,960 11,960
Total Cash and Cash Equivalents (A+B+C) 30,520,282 22,857,611
Mar 31, 2021 June 30, 2020Notes Particulars
Amount in Taka
Mar 31, 2021 June 30, 2020
12 Share capital
Authorised Capital150,000,000 Ordinary Shares of Tk. 10 each. 1,500,000,000 1,500,000,000
Issued, Subscribed and Paid
up Capital(65,022,793 ordinary shares
@ Tk 10 each)
Balance of Beginning of the
year65,022,793 10 650,227,930 650,227,930
Issue of bonus share - 10 - -
Balance of End of the year 65,022,793 650,227,930 650,227,930
Class of Shareholders Number of
Investors
Number of
Share hold
Share holding
(Percentage)
31.03.2021
Share holding
(Percentage)
30.06.2020
Sponsors/Directors 2 14,568,728 22.41 22.14
General Public 12,675 41,183,286 60.29 61.22
Institutional Investors 112 9,270,779 17.30 16.64Total 12,789 65,022,793 100.00 100
Details of Share Holding Position are as Under
Share Groups Number of Share No. of
Shareholder % of holding
Less Than 500 492,061 6,051 0.76
501 to 5,000 6,993,627 5,695 10.76
5,001 to 10,000 3,228,141 425 4.96
10,001 to 20,000 4,339,134 297 6.67
20,001 to 30,000 2,544,711 100 3.91
30,001 to 40,000 1,498,793 43 2.31
40,001 to 50,000 1,929,285 42 2.97
50,001 to 100,000 4,568,047 62 7.03
100,001 to 1,000,000 15,848,491 66 24.36
Above 1,000,000 23,580,503 8 36.27 Total 65,022,793 12,789 100.00
The stocks of the company were listed with the Dhaka Stock Exchange Ltd. and the Chittagong Stock
Exchange Ltd. on 18.04.2011 and 20.04.2011 respectively. Trading of stocks was started in the both
houses since 21 April 2011.
The corona virus (COVID-19) pandemic has created major disruptions of our country in the economy and
the businesses operations as well as our personal life & wealth. As a result, Directors of our company
need extra time to acquire the shortfall 7.59% shares to comply with the BSEC’s Notification No. BSEC/
CMRRCD/ 2009-193/217/ Admin/90 dated May 21, 2019. Now, Sponsors of the company jointly hold
22.41% shares of the company.
Notes ParticularsAmount in Taka
Number of
Shares
Face Value
per Share
Share Capital
31.12.2020
Share Capital
30.06.2020
Mar 31, 2021 June 30, 2020
13.00 Long Term Loan - Secured
Social Islami Bank Ltd.
Opening Balance 538,135,742 418,630,549
Addition during the period - 139,212,665
Add: Interest charged during the period 26,792,490 34,495,508
564,928,232 592,338,722
Less: Payment made during the period - 54,202,980
564,928,232 538,135,742
Less: Current Portion of Long Term Loan 102,030,360 102,833,592
462,897,872 435,302,150
14.00 Deferred Tax Liability/(Assets)
Deferred Tax Liability for temporary difference of PPE 14.01 60,861,495 54,727,697
Deferred Tax Liability/(Assets) on Gratuity Provision 14.02 (1,414,306) (1,244,690)
59,447,189 53,483,008
14.01 Deferred Tax Liability for temporary difference of
PPEAccounting Base Written Down Value (WDV) 846,442,927 883,580,460
Tax Base WDV 560,943,888 622,616,611
Taxable temporary difference 285,499,039 260,963,849
Less: Unabsorbed depreciation (42,053,060) (42,053,060)
243,445,979 218,910,789
Applicable Tax Rate 25% 25%
Closing Deferred Tax Liability/(Assets) 60,861,495 54,727,697
Opening Deferred Tax Liability/(Assets) (54,727,697) (45,719,694)
Deferred Tax Expenses/(Income) during the year 6,133,798 9,008,004
14.02 Deferred Tax Liability/(Assets) on Gratuity
Provision
Closing Gratuity Provision 5,657,224 4,978,759
Applicable Tax Rate 25% 25%
Closing Deferred Tax Liability/(Assets) (1,414,306) (1,244,690)
Opening Deferred Tax Liability/(Assets) (1,244,690) (941,738)
Deferred Tax Expenses/(Income) during the period (169,616) (302,952)
15 Short Term Loan
Loan Trust Receipts (LTR) 140,522,422 140,709,569
Cash Credit 106,730,375 107,368,341
Stimulus Fund 67,756,622 -
315,009,419 248,077,910
Add: Current Portion of Long Term Loan 102,030,360 102,833,592
417,039,779 350,911,502
The above loan has been availed from Social Islami Bank Ltd. as Term Finance Facilities. Securities
for the facilities are 820.245 decimal land and hypothecation of machineries. Interest rate 9.00% .
Purpose of above loan was Machineries import, Building & Construction, ETP & utilities bill payment.
Notes ParticularsAmount in Taka
Mar 31, 2021 June 30, 2020Notes Particulars
Amount in Taka
16 Accounts Payable
Munshi Enterprise 2,507,103 9,107,103
Madina Trading Corporation 5,167,487 -
Arosh Traders - 180,000
Ashraf Traders 55,600 -
Mayer Doya Enterprise 157,408 227,408
Navana Electric Limited - 551,450
Yeasmin Welding - 653,254
Goodluck Transport & Trading Ltd. 1,522,100 3,683,000
Global Quick Service 14,000 1,863,989
Ibrahim & Sons 1,415,428 4,935,708
Pacific Chemitrade Co. 63,250 63,250
Polly Engineering Works - 253,676
Boiler Vision 270,206 370,206
Colleage Engineering 248,060 248,060
Farid & Co - 4,035,000
Farhanagar Machineries & Servicing Centre - 14,000
Nur Enterprise (FD) 3,014,618 6,400,802
Noor Enterprise 24,803 24,803
Ruma Trading Corporation 1,457,988 2,046,828
Seema Enterprise 558 414,558
Shahin Enterprise 1,933,443 5,990,443
S M Eng. Workshop 181,854 181,854
SQ Wire & Cable Co. Ltd. 978,515 1,478,515
S S Enterprise 662,063 702,063
Shan Power Link 367,000 -
Team Star Trade International - 44,000
Vishwa Weighing System 62,000 62,000
20,103,484 43,531,970
17 Others Payable
Share Subscription Money 12,193,758 12,193,758
Withholding Tax Payable 2,259,008 3,903,879
Unpaid Fraction Share 777,756 777,928
Unpaid Cash Dividend 649,883 -
Dhaka & Chittagong Stock Exchange 2,143,774 1,818,660
VAT Current Account 820,125 1,658,464
Payable to Government workers welfare foundation fund 2,311,706 2,213,162
Payable to Salary & Remmuneration - 2,875,580
21,156,010 25,441,431
18 Provision for Employee Benefits
Provident Fund 18.1 12,734,451 11,272,745
Gratuity Fund 18.2 5,657,224 4,978,759
18,391,675 16,251,504
18.1 Provident Fund
This includes provision made for employer's subscription & employees' contribution to provident fund
and gratuity which is payable within the service life of each employee and/ or after his/ her retirement
as per terms of employment of service.
The above loan has been availed from Social Islami Bank Ltd. as Short Term Finance Facilities.
Stimulus fund has been avail from SIBL from Govt. Stimulus Fund package. Interest rate 9.00% &
4.5% will be subsiderized by Bangladesh Bank for Stimulus fund.
Mar 31, 2021 June 30, 2020Notes Particulars
Amount in Taka
Opening Balance 11,272,745 8,365,535
Add: Charged for the period 1,830,724 2,907,210
13,103,469 11,272,745
Less: Payment made during the period 369,018 -
12,734,451 11,272,745
18.2 Gratuity Fund
Opening Balance 4,978,759 3,766,951
Add: Charged for the period 711,242 1,211,808
5,690,001 4,978,759
Less: Payment made during the period 32,777 -
5,657,224 4,978,759
19 Provision for Profit Participation Fund
Opening Balance 1,741,010 2,023,364
Add. Charged for the period 1,970,878 1,741,010
3,711,888 3,764,374
Less. Payment made during the period 1,569,369 2,023,364
2,142,519 1,741,010
20 Provision for Income Tax
Opening Balance 45,616,052 39,243,825
Add: Provision during the period 5,914,973 6,372,227
51,531,025 45,616,052
Less. Payment/ Adjustment made during the period - -
51,531,025 45,616,052
21 Provision for Expenses
Audit Fees 233,333 375,000
Electricity Bill 1,776,797 1,827,552
Office Rent 109,350 426,000
Remunerations 577,000 577,000
Salary (Admin. & Selling) 1,043,645 1,731,410
Wages 2,731,687 3,794,984
6,471,812 8,731,946
This includes provision made for Worker's Profit Participation Fund as per the provisions of the
Bangladesh Labour Act, 2006 and the Bangladesh Labour (Amendment) Act, 2013.
July 01, 2020
to
Mar 31, 2021
July 01, 2019
to
Mar 31, 2020
Jan 01, 2021
to
Mar 31, 2021
Jan 01, 2020
to
Mar 31, 2020
22 Revenue
Gross Sales 22.01 584,683,954 440,809,094 204,254,262 118,630,024
Less : VAT 76,263,124 57,496,838 26,641,860 15,473,481
508,420,830 383,312,256 177,612,402 103,156,543
22.01 Gross Sales
Sulphuric Acid 213,774,944 219,346,797 56,690,810 48,814,236
Battery Grade Water 25,303,305 32,679,029 8,483,425 7,400,552
Liquid Glucose 291,610,348 188,783,268 109,695,160 62,415,236
Starch - Test Production 4,325,332 - 4,325,332 -
By Product 49,670,025 - 25,059,535 -
584,683,954 440,809,094 204,254,262 118,630,024
23 Cost of goods sold
Opening Stock of Finished Goods 17,726,691 12,280,062 37,872,324 13,693,788
Add: Cost of Production 422,322,630 297,086,417 143,567,795 92,527,348
440,049,321 309,366,479 181,440,119 106,221,136
38,506,506 34,752,566 38,506,506 34,752,566
401,542,815 274,613,913 142,933,613 71,468,570
23.01 Cost of Production
Opening Stock Raw Materials (Note-07.01) 102,962,493 33,495,500 59,004,952 39,709,852
Add: Purchase during the period 254,196,738 174,756,798 96,085,464 42,702,162
Raw Materials Available for Consume 357,159,231 208,252,298 155,090,416 82,412,014
Less: Closing Stock of Raw Material (Note-07.01) 54,159,208 28,713,414 54,159,208 28,713,414
Raw Material Consumed during the period 303,000,023 179,538,884 100,931,208 53,698,600
Add: Opening Work in Process (WIP) 657,036 3,231 526,332 44,185
Less: Closing Work in Process (WIP) (Note-07.00) 1,236,523 34,526 1,236,523 34,526
Add: Manufacturing Overhead (Note-23.01.01) 119,902,094 117,578,828 43,346,778 38,819,089
422,322,630 297,086,417 143,567,795 92,527,348
23.01.01 Manufacturing Overhead
Wages & Allowances 24,585,180 21,624,763 8,809,890 8,230,830
Bonus 1,243,617 1,367,975 - -
Food & Tiffin 893,210 855,577 313,372 192,222
Carrying & Transport 10,970,109 9,776,368 3,745,930 2,475,213
Conveyance 135,444 147,671 46,334 43,256
Cell phone-Factory 64,548 49,887 23,505 17,856
Cooker Bill 43,000 16,000 11,000 4,000
Computer Maintenance 58,910 - 18,100 -
Electricity Bill 16,026,260 16,374,740 7,309,849 5,399,546
Entertainment 124,859 122,368 58,242 74,152
Fuel for Generator & Boiler 9,559,615 11,341,480 4,450,920 3,506,480
Notes Particulars
Amount in Taka
Less: Closing Stock of Finished Goods
(Note-07.02)
July 01, 2020
to
Mar 31, 2021
July 01, 2019
to
Mar 31, 2020
Jan 01, 2021
to
Mar 31, 2021
Jan 01, 2020
to
Mar 31, 2020
Notes Particulars
Amount in Taka
Insurance Premium 1,902,879 749,223 56,907 95,775
Internet Bill 23,550 - 8,350 -
Loading & Unloading 1,196,960 879,886 364,300 315,000
Medical Expenses 130,382 11,193 52,889 7,564
Office Maintenance Factory 1,310,218 587,304 438,289 199,630
Paper & Periodicals 2,920 2,830 910 940
Packaging Exp 717,250 - 717,250 -
Printing & Stationery 173,210 121,999 58,834 37,485
Repair & Maintenance 170,635 - 39,805 -
Spare Parts 750,822 1,358,632 164,598 806,000
Testing Fees 150,660 74,000 - 15,000
Depreciation (Annexure-A) 49,667,856 52,116,932 16,657,504 17,398,140
119,902,094 117,578,828 43,346,778 38,819,089
24 Administrative Expenses
Salary & Allowances 7,971,602 8,316,078 2,895,603 2,596,285
Bonus 679,102 871,789 - -
Remuneration 5,607,380 5,193,000 2,145,380 1,731,000
Advertisement 169,895 92,724 99,750 64,724
Audit Fees 233,333 - 58,333 -
AGM Expenses 435,500 791,360 404,000 -
Bank Charge and Other Charges 39,417 56,298 10,962 16,380
Business Development 34,690 118,800 34,690 38,300
Conveyance 268,454 138,561 40,500 40,191
Cell phone 64,500 100,600 29,500 32,600
Computer Maintenance 78,060 69,330 6,730 11,600
Car Maintenance & Fuel 1,522,643 1,843,386 619,197 583,311
Credit Rating Fees 47,750 19,114 47,750 19,114
Dish Line Bill 8,600 5,100 1,700 1,500
Electric Bill 85,500 280,249 14,500 62,995
Entertainment 229,191 292,972 42,813 52,380
Garage Rent 97,200 115,400 32,400 39,900
Internet Bill 159,680 193,246 63,520 44,738
Legal Expenses 592,240 - 20,000 -
Medical Expenses 56,286 15,513 11,326 4,871
Meeting Attendance Fees 55,000 - - -
Office Rent 984,150 554,305 419,000 105,405
Office Maintenance 183,918 358,372 80,343 142,597
Printing & Stationery 104,930 181,135 53,070 59,670
Plantation 42,780 30,075 2,675 18,950
Picnic - 664,301 - -
Postage & Telegram 36,778 32,205 21,163 2,745
Paper & Periodicals 2,556 4,440 1,050 2,100
Registration & Renewal 1,677,290 807,734 231,530 454,895
Subscription Charges 679,488 2,201,567 325,114 1,818,660
Telephone Bill 14,090 11,773 9,096 3,969
Traveling Expenses 25,200 1,142,672 17,200 216,329
WASA Bill 289,054 157,183 144,726 42,072
Web Page & Software Maintenance 115,000 15,000 30,000 -
Depreciation (Annexure-A) 1,390,585 1,447,462 474,178 490,812
Amortization of Intangibles (Annexure-B) 978 - 326 -
23,982,820 26,121,744 8,388,125 8,698,093
25 Selling & Distribution Expenses
Salary & Allowances 2,939,239 2,869,164 1,043,663 956,388
Bonus 74,049 186,626 - -
Business Promotion 227,500 - 63,000 -
Cell phone 55,400 70,653 14,400 24,153
Entertainment 29,096 31,202 7,415 13,252
July 01, 2020
to
Mar 31, 2021
July 01, 2019
to
Mar 31, 2020
Jan 01, 2021
to
Mar 31, 2021
Jan 01, 2020
to
Mar 31, 2020
Notes Particulars
Amount in Taka
Traveling & Conveyance 109,665 74,686 42,445 31,526
3,434,949 3,232,331 1,170,923 1,025,319
26 Non-operating Income
Interest on STD 209,599 279,973 61,725 -
Wastage Sale 4,278,300 859,163 157,000 253,663
Others 1,200,000 - 1,200,000 -
5,687,899 1,139,136 1,418,725 253,663
27 Financial Charges
Short Term Loan 16,967,223 17,869,417 6,403,870 5,761,730
Term Loan 26,792,490 23,446,728 7,530,074 8,423,088
43,759,713 41,316,145 13,933,944 14,184,818
28.0 Income Tax Expense
Current Tax 28.01 5,914,973 5,052,626 1,074,187 (441,971)
Deferred Tax 28.02 5,964,181 14,026,405 9,074,333 2,457,973
11,879,155 19,079,031 10,148,520 2,016,002
28.01 Current Tax
Current tax expense [ Higher of A, B & C ) 5,914,973 1,849,579 4,180,677 (506,364)
5,914,973 1,849,579 4,180,677 (506,364)
A. Income Tax on Regular Rate
Profit Before Tax 39,417,554 37,302,151 12,004,306 7,650,863
Add: Accounting depreciation & Amortization 51,059,419 53,564,394 34,147,581 17,812,507
Add: Gratuity Provision during the period 711,242 492,809 423,481 318,099
91,188,215 91,359,354 46,575,368 25,781,469
Less: Tax base Depreciation 75,594,608 83,961,037 27,806,925 27,806,925
Less: Gratuity paid during the period 32,777 - 32,777 -
15,560,829 7,398,317 18,735,666 (2,025,456)
Unabsorbed Depreciation - - - -
Taxable business income 15,560,829 7,398,317 18,735,666 (2,025,456)
Applicable Tax Rate 25% 25% 25% 25%
Income Tax on Regular Rate 3,890,207 1,849,579 4,683,917 (506,364)
B. Income Tax Paid at Source (U/S 82 (C) (2)
Tax Deducted from STD Int. Income 209,599 279,973 6,173 -
Tax deduct by customer 5,705,374 4,772,653 4,174,504 1,197,861
5,914,973 5,052,626 4,180,677 1,197,861
C. Minimum Tax on Gross Receipts (Under Section 82 (C) (4) (a)
Gross receipt from sales 508,420,830 383,312,256 177,612,402 103,156,543
Non-Operating Income 5,687,899 1,139,136 1,418,725 253,663
Gross Receipts during the period 514,108,729 384,451,392 179,031,127 103,410,206
Minimum Tax @0.60% 3,084,652 2,306,708 1,074,187 620,461
28.02 Deferred Tax Expenses/(Income)
July 01, 2020
to
Mar 31, 2021
July 01, 2019
to
Mar 31, 2020
Jan 01, 2021
to
Mar 31, 2021
Jan 01, 2020
to
Mar 31, 2020
Notes Particulars
Amount in Taka
Deferred Tax expenses/(income) for
temporary difference of PPE ( Note 14.1)6,133,798 14,264,980 9,164,424 9,164,424
Deferred Tax expenses/(income) for
Gratuity Provision (Note 14.2)(169,616) (238,575) (90,091) (79,525)
5,964,181 14,026,405 9,074,333 9,084,899
29.0 Basic Earning Per Share
Net Profit/ (Loss) After Tax- during the period 27,538,399 18,223,120 7,766,376 2,570,948
Divided by,-
Number of Shares : 65,022,793 65,022,793 65,022,793 65,022,793
Basic Earning per Share 0.42 0.28 0.12 0.04
Earning Per Share (EPS) (Adjusted)
Net Profit/ (Loss) After Tax- during the period 27,538,399 18,223,120 7,766,376 2,570,948
Number of Shares 65,022,793 65,022,793 65,022,793 65,022,793
Earning Per Share (EPS) (Adjusted) 0.42 0.28 0.12 0.04
30 Calculation of Net assets value per share (NAV) 31.03.2021 30.06.2020
Non-current assets 1,575,436,830 1,462,391,230
Add. Current assets 314,709,043 328,547,731
Less. Non-current liabilities 522,345,061 488,785,158
Less. Current liabilities 536,836,304 492,225,415
Net Asset 830,964,508 809,928,389
Divided by- Number of Shares outstanding 65,022,793 65,022,793
Net assets value per share (NAV) 12.78 12.46
31 31.03.2021 31.03.2020
Net Cash Flows from Operating Activities 84,545,970 103,715,942
Divided by- Number of Shares 65,022,793 65,022,793
Net Operating Cash Flow per Share (NOCFPS) 1.30 1.60
32 31.03.2021 31.03.2020
Net profit/(loss) before income tax during the period 39,417,554 37,302,151
Adjustments to reconcile net income to net cash
provided by operating activities
Depreciation and amortization 51,059,419 53,565,481
Income Tax paid during the period (8,257,756) (7,374,603)
Changes in current assets and liabilities:
(2,365,751) (330,870)
(Increase)/Decrease of Accounts receivable 4,257,544 43,319,310
(Increase)/Decrease of Inventories 27,867,322 (16,639,444)
Increase/(Decrease) of Creditors and accrued (27,713,907) (10,198,588)
Increase/(Decrease) of Provision for Expenses (2,260,134) 357,575
Increase/(Decrease) of Provision for
employee benefit & WPPF2,541,680 3,714,931
Reconciliation of Net Profit with Operating Cash Flow
(Increase)/Decrease of Advance, deposits &
prepayments
This represents earnings for the period attributable to ordinary shareholders. As there was no preference dividend,
minority interest or extra ordinary items, the net profit after tax for the year has been considered as fully attributable to the
ordinary shareholders. The company has no diluted instrument in capital structure on the reporting date.
Calculation of Net Operating Cash Flow per Share (NOCFPS)
July 01, 2020
to
Mar 31, 2021
July 01, 2019
to
Mar 31, 2020
Jan 01, 2021
to
Mar 31, 2021
Jan 01, 2020
to
Mar 31, 2020
Notes Particulars
Amount in Taka
Net cash flow from operating activities 84,545,970 103,715,943
Net Operating Cash Flow Per Share 1.30 1.60
33. Significant Deviation
For the period from July 01, 2020 to 31 March, 2021 (nine months) and from January 01, 2021 to 31 March, 2021 (Three months) our sales have been increased due to mainly increase of demand of Liquid Glucose -food grade item & sale of by-product of Liquid Glucose Plant.
Net Profit after Tax during the period from July 01, 2020 to 31 March, 2021 (nine months) and from January 01, 2021 to 31 March, 2021 (Three months) increase significantly due to increase of sales. As a result, EPS has been increased during this reporting period compare to previous
year.
Finance Charges during the period increased compared to same period of last year due to increase of long term loan & short term loan. Also, some borrowing costs are recognized as capitalized that incurred and include in capital work in progress for further completion.
Due to increase of sales & collection from customers has been increased. On the other hand, cash paid to supplier increase for purchase of raw material during the period under review
increase due to production increase of unit-2 Liquid Glucose Unit. As a result, net cash generated from operating activities has been decreased compare to same period of previous
year. Hence, net operating cash flow per share has been deviated from the same period of previous year.
Capital Work In Progress increase due to addition of set up progressive plant of Corn Starch with the existing Liquid Glucose unit.
34. Remuneration
Detail of remuneration paid during the period (09 months) is as follows:
Name Remuneration Tax at Source
Net Payment
Mrs. Khondoker Afia Sultana- Managing Director
3,027,000 310,000 2,717,000
Mr. Salam Obaidul Karim- Chairman
2,580,380 247,000 2,333,380
Total: 5,607,380 557,000 5,050,380
In addition to remuneration, the Chairman, Director and Managing Director are entitled a vehicle maintenance & fuel for car allowance amounting Tk. 837,934 which includes
under the head Car maintenance in Notes no. 24.00. 35. Number of employees
The numbers of employees of the company at the period then ended were as follows:
Category
Number of
Employees
Manufacturing Workers (including one foreign employee) 164
Sales & Distribution Officers and Staff 7 Management, Administrative Officers and Staff 34
Total Employees: 205
The above employees of the company have been employed with a compensation of more
than Tk. 5,000 and TDS was considered under Section-50 of the Income Tax Ordinance, 1984, where applicable.
36. Employee benefit plan:
The company maintains defined benefit plan for its eligible permanent employees. The eligibility is determined according to the terms and conditions set forth in the respective deeds. The company has accounted for and disclosed employee benefits in compliance
with the provisions of IAS 19 Employee Benefits. The cost of employee benefit is charged off as revenue expenditure in the period to which
the contributions relate.
The company’s employee benefits include the following: a) Short term employee benefits:
Short-term employee benefits include salaries, bonuses etc. Obligations for such benefits are measured on an undiscounted Basis and are expensed as the related service is provided.
b) Workers profit participation fund:
The company provides 5% of its net profit before tax after charging such expenses as Profit Participation Fund in accordance with Section- 234 and 235 of the Bangladesh Labour Act, 2006 and Section-65 of the Bangladesh Labour (Amendment) Act, 2013.
c) Gratuity benefits:
The company provides gratuity benefit when the employee retired and at least 10 years’ service provided to company. Gratuity amount is provided to employee 8.33%
of their basic salary deposit against their name and the full balance paid at the time of retirement. Gain or interest on the balance is not entitled by the employee.
37. Deferred tax
Deferred tax arises due to temporary difference deductible or taxable for the events or
transaction which is recognized in the statement of comprehensive income. A temporary difference is the difference between the tax Base of an asset or liability and its carrying amount / reported amount in the statement of financial position. Deferred tax assets or
liability is the amount of income tax recoverable or payable in the future periods recognized in the current year as per IAS 12 Income Taxes. Deferred Tax impact has been provided during the year.
38. Related party transaction
During the period Q3, Tk. 870,102 was received as loan from the directors of the Company and paid Tk. 870,102 for loan refund to the directors of the Company, closing
balance was nil as at 31 March 2021. The company in normal course of business has no other transaction with any individual/ entity that fall within definition of related party contained in International Accounting Standards (IAS) 24.
Annexure-A
Rate
Addition of
during Dep.
the year (%)
Manufacturing Components
Land & Land Development 109,949,572 3,491,989 113,441,561 0% - - - 113,441,561
Factory Building & Construction 228,048,066 53,461 228,101,527 5% 33,059,413 7,312,716 40,372,129 187,729,398
Plant & Machinery 941,035,985 8,506,116 949,542,101 10% 408,457,806 40,235,832 448,693,638 500,848,463
Electric Installation 34,723,554 518,318 35,241,872 10% 7,991,503 2,016,447 10,007,950 25,233,922
Vehicle 2,047,137 - 2,047,137 10% 675,656 102,861 778,517 1,268,620
Administrative Components
Office Equipment's 6,942,212 676,099 7,618,311 10% 2,962,578 320,570 3,283,148 4,335,163
Furniture & Fixture 9,922,879 675,903 10,598,782 10% 2,880,038 550,639 3,430,677 7,168,105
Vehicle 10,170,544 10,170,544 10% 3,245,534 519,376 3,764,910 6,405,634
Total: As on March 31, 2021 1,342,839,949 13,921,886 1,356,761,835 459,272,528 51,058,441 510,330,969 846,430,866
Total : As on June 30, 2020 1,281,945,752 60,894,197 1,342,839,949 387,569,451 71,703,077 459,272,528 883,567,421
Notes 31-03-2021
23 49,667,856
24 1,390,585
51,058,441
Salvo Chemical Industry Limited
Schedule of Property Plant and Equipment's
For the year ended March 31, 2021
Particulars
Cost Depreciation Written Down
Value as on
31.03.2021
Balance as on
01.07.2020
Total as on
31.03.2021
Balance as
on
01.07.2020
Charged
during the
year
Total as on
31.03.2021
Allocation of Depreciation:
Manufacturing overhead
Administrative expenses
Annexure-B
Rate
Addition of
during Dep.
the year (%)
Computer Software 60,000 - 60,000 10% 46,961 978 47,939 12,061
Total: As on Mar 31, 2021 60,000 - 60,000 46,961 978 47,939 12,061
Salvo Chemical Industry Limited
Schedule of Intangible Asset
For the year ended March 31, 2021
Particulars
Cost Depreciation Written Down
Value as on
31.03.2021
Balance as
on 01.07.2020
Total as on
31.03.2021
Balance as
on 01.07.2020
Charged
during the
year
Total as on
31.03.2021