Annual Report 2020-2021

Advanced Chemical Industries Limited

Our Mission
ACI's Mission is to enrich the quality of life of the people
through responsible application of knowledge, technology
and skills. ACI is committed to the pursuit of excellence
through world-class products, innovative processes and
empowered employees, to provide the highest level of
satisfaction to our customers.

Our Vision
To realise the Mission, ACI will :
Provide products and services of high and consistent
quality, ensuring value for money to our customers.

Endeavour to attain a position of leadership in each

category of our businesses.

Develop our employees by encouraging empowerment

and rewarding innovation.

Promote an environment for learning and personal growth.

Attain a high level of productivity in all our operations

through effective utilisation of resources and adoption of
appropriate technology.

Promote inclusive growth by encouraging and assisting

our distributors and suppliers in improving efficiency.

Ensure superior return on investment through judicious use

of resources and efficient operations, utilising our core
competencies.

Our Values
Quality
Customer Focus
Innovation
Fairness
Transparency
Continuous Improvement
 ISO 9001 Quality Management System
ACI is the first company in Bangladesh to have obtained ISO
9001 Certification for Quality Management System across all categories

ACI Quality Policy

One of our important vision is to provide products and services of high
and consistent quality, ensuring value for money to our customers.

To attain the Vision ACI will:

Aim to achieve business excellence by understanding, accepting, meeting and
exceeding customer expectations.
Follow International Standards on Quality Management System to ensure
consistent quality of products and services to achieve customer
satisfaction. ACI will also meet all national and regulatory requirements
relating to its current businesses and ensure that current Good
Manufacturing Practice (cGMP) as recommended by World Health
Organisation is followed for its pharmaceutical operations and conform
to all other guidelines and best practices relating to its other businesses.
Commit itself to quality as the prime consideration in all its business decisions.
All employees of ACI follow documented procedures to ensure compliance with
quality standards.
Develop a pool of human resources of the Company to their full
potential through regular training and participation in seeking continuous
improvement of the Quality Management System.

ISO 14001 Environmental Management System

ACI is the first company in Bangladesh to have obtained
ISO 14001 Certification for Environmental Management System

ACI Environmental Policy

ACI is committed to formulate and conduct all its operations in an environmentally
friendly manner, ensuring continual improvement in the utilisation of
resources and prevention of pollution or degradation of the environment.

In pursuit of this Goal, ACI will:

Comply with all local and national legislations and regulations.
Conserve natural resources like water and energy for sustainable development,
and adopt environmentally safe processes.
Ensure appropriate treatment of all effluents prior to discharge.
Ensure appropriate communication with internal and external interested parties
on environmental issues.
Create awareness on environmental issues among our employees and
contractors.
Ensure waste management in an environmentally responsible manner through
continuous upgradation of technology.
UN Global Compact
The UN Global Compact is a strategic policy initiative for businesses that
are committed to aligning their operations and strategies with the ten
universally accepted principles in the areas of human rights, labour,
environment and anti-corruption. Since launching in year 2000, the United
Nations Global Compact has been encouraging businesses worldwide to adopt
sustainable and socially responsible policies, and to report on their
implementation. At present, with over 12,000 corporate participants and other
stakeholders from over 145 countries, it is the largest voluntary corporate
responsibility initiative in the world. Overall, the Global Compact pursues two
complementary objectives:
1. Mainstream its Ten Principles in business strategy and operations around the
world; and

2. Catalyze business action in support of broader UN goals with emphasis on

collaboration and collective action.

The Global Compact incorporates a transparency and accountability policy known

as the Communication on Progress (COP). The annual posting of a COP is
an important demonstration of a participant's commitment to the UN Global
Compact and its principles. Participating companies are required to follow this
policy, as a commitment to transparency and disclosure is critical to the
success of the initiative.

Since September 2003, ACI is a proud and active member of The UN

Global Compact. ACI is also a Founding Member of the Community of Global
Growth of Companies, an initiative of World Economic Forum.

World Economic Forum

ACI has been accepted as a
Founding Member of the
Community of Global Growth On the occasion of the Inaugural Annual Meeting of the New Champions,
we are pleased to welcome

Companies by the World Advanced Chemical Industries Limited

Economic Forum which is the most Bangladesh

prestigious business networking as a Founding Member of the Community of Global Growth Companies

organisation in the world.

Annual Report 2020-2021
Advanced Chemical Industries Limited

Klous Schwab
Founder and Executive Chairman
8 September 2007

About Cover
The cover page depicts
the growth in various
For further information on the Compact, please visit www.unglobalcompact.org
economic and social
sectors of Bangladesh
and how ACI is
navigating through these
enabling activities to
accelerate ACI's mission
to improve the quality of
life of people.
 9 December 2021

Letter of Transmittal
To
All Shareholders of Advanced Chemical Industries Limited (ACI)
Bangladesh Securities and Exchange Commission (BSEC)
Registrar of Joint Stock Companies and Firms (RJSCF)
Dhaka Stock Exchange Limited (DSE)
Chittagong Stock Exchange Limited (CSE)
Other Stakeholders of Advanced Chemical Industries Limited (ACI)

Dear Sir,

Re: Annual Report of Advanced Chemical Industries Limited (ACI) for the year ended 30 June 2021.

We are pleased to enclose a copy of ACI’s Annual Report together with the Audited Financial Statements
as on 30 June 2021, statement of financial position, statement of comprehensive income, statement of
cash flows, statement of changes in equity for the year ended 30 June 2021 along with notes thereto of
ACI for your kind information and record.

General review of this report, unless explained otherwise, is based on the financials of the

‘ACI’. Thanking you,

Yours Sincerely,

Mohammad Mostafizur Rahman

Company Secretary

Annual Report 2020-2021 Page 1

 Forward-Looking Statements

This forward-looking statements include the ACI

Group's business prospects, future developments,
trends and conditions in the industry it operates, its
strategies, plans, objectives and goals, operations,
margins, overall market condition and risk
management. The Annual Report reveals management's
viewpoints based on the year's events as well as future
events and the company's proposition. These
statements do not provide assurance against certain
risks and uncertainties. Thus, the actual future
outcome and trends expected in the statements may
vary due to the following factors:

Changes in national, economic and

financial conditions;

Changes in Government policy;

Changes of interest rate;

Instabilities of price in the foreign exchange market;

Volatility of capital market;

Changes in corporate Tax and VAT structure;

Unexpected ecological and demographic changes;

Inconsistency of competitors, suppliers and pricing.

Page 2 Annual Report 2020-2021

Table of Contents
Particulars Page No.

Corporate Information 4
Company Profile 4
Milestones 5
We Deeply Mourn 6
Board of Directors' Profile 7
Notice of the 48th Annual General Meeting 11
Financial Calendar 12
Value Added Statement - ACI Limited 13
Financial Highlights and Analysis 14
Message from the Chairman 16
Statement of Corporate Governance 18
Report of the Audit Committee 21
Nomination and Remuneration Committee Report 23
Dividend Distribution Policy 28
CSR Activities and Employee Welfare Initiatives 29
Directors' Report to the Shareowners 32
Directors' Report to the Shareowners (Bangla) 48

Annexures of Directors’ Report to the Shareowners

Annexure I - Number of Board Meetings and Attendance of Directors 57
Annexure II - Pattern of Shareholding 57
Annexure III - Management Discussion and Analysis 58
Annexure IV - Declaration by CEO and CFO 59
Annexure V - Status of Compliance with the Corporate Governance Code (CGC) 60
Annexure VI - Certificate of Compliance to the Shareholders 68

Audited Financial Statements of ACI Limited 69

Independent Auditors' Report 70
Statement of Financial Position 77
Statement of Profit or Loss 78
Statement of Profit or Loss and other Comprehensive Income 79
Statement of Changes in Equity 80
Statement of Cash Flows 81
Consolidated Statement of Financial Position 82
Consolidated Statement of Profit or Loss 83
Consolidated Statement of Profit or Loss and other Comprehensive Income 84
Consolidated Statement of Changes in Equity 85
Consolidated Statement of Cash Flows 86
Notes to the Financial Statements 87
Annexure A - Revaluation Report on Property, Plant and Equipment 141

Directors' Report & Audited Financial Statements of the Subsidiary Companies 147
ACI Formulations Limited 148
ACI Logistics Limited 166
ACI Pure Flour Limited 174
ACI Foods Limited 182
ACI Salt Limited 190
ACI Motors Limited 198
Creative Communication Limited 206
Premiaflex Plastics Limited 214
ACI Agrolink Limited 222
ACI Edible Oils Limited 230
ACI HealthCare Limited 238
ACI Chemicals Limited 246
INFOLYTX Bangladesh Limited 254
ACI Biotech Limited 262
ACI Marine and Riverine Technologies Limited 270

Corporate Directory Proxy Form 278

Attendance Slip (Enclosed) 279

Annual Report 2020-2021 Page 3

 Corporate Information
Company Profile
Basic Information
Full Name: Advanced Chemical Industries Limited Authorized Capital (BDT):
1,500,000,000 Incorporation Date: 24 January 1973 Issued & Paid
Capital (BDT): 631,102,500
Registration No: C-3885 No of Shares: 63,110,250
Company Type: Public Limited Face Value (BDT): 10
Number of Employees: 9380 Year End: 30 June

Board of Directors
• Mr. M. Anis Ud Dowla, Chairman • Mr. Anisuddin Ahmed Khan, Director
• Ms. Shusmita Anis, Director • Mr. Golam Mainuddin, Director
• Mr. Abdul-Muyeed Chowdhury, Director • Mr. Kamran Tanvirur Rahman, Independent Director
• Mr. Juned Ahmed Choudhury, Director • Dr. Arif Dowla, Managing Director
• Mr. Adil Husain, Independent Director

Board Committees
Audit Committee Nomination and Remuneration Committee (NRC)
• Mr. Kamran Tanvirur Rahman, Chairman • Mr. Kamran Tanvirur Rahman, Chairman
• Ms. Shusmita Anis, Member • Mr. Juned Ahmed Choudhury, Member
• Mr. Golam Mainuddin, Member • Mr. Golam Mainuddin, Member
• Mr. Mohammad Mostafizur Rahman, Secretary • Mr. Mohammad Mostafizur Rahman, Secretary

Executive Management
• Dr. Arif Dowla
• Mr. Sabbir Hasan Nasir
Managing Director
Executive Director, ACI Logistics Division
• Ms. Shusmita Anis
• Mr. Subrata Ranjan Das
Managing Director, ACI Formulations Limited
Executive Director, ACI Motors Ltd.
• Dr. A.K.M. Fareyzul Haque Ansarey
• Mr. Md. Monir Hossain
President, Agribusiness Division
Khan Finance Director
• Mr. M Mohibuz Zaman
• Mr. Mohammad Mostafizur
Chief Operating Officer, ACI HealthCare Division
Rahman Company Secretary
• Mr. Pradip Kar Chowdhury
• Mr. Md. Moinul Islam
Executive Director, Finance & Planning
Director, Human Resource
Statutory Position
Chief Financial Officer: Mr. Pradip Kar Chowdhury
Company Secretary: Mr. Mohammad Mostafizur Rahman
Head of Risk Management & Internal Audit: Mr. Amitava Saha

Auditors
Statutory Auditor: A. Wahab & Co., Chartered Accountants
Governance Compliance Auditor: Al-Muqtadir Associates, Chartered Secretaries & Consultants

Advisors
Legal Advisor: Barrister Nihad Kabir
Advisor, Regulatory Affairs: Mr. M. Sekander Ali
Advisor, NRC: Mr. Monower Ahmed

Principal Bankers
• Standard Chartered Bank
• Dutch-Bangla Bank Limited • Premier Bank Limited
• Pubali Bank Limited
• BRAC Bank Limited • Meghna Bank Limited
• The City Bank Limited
• The Hongkong and Shanghai • Commercial Bank of Ceylon Plc • Trust Bank Limited
Banking Corporation Limited • One Bank Limited • Uttara Bank Limited
• Dhaka Bank Limited • Jamuna Bank Limited • Bank Asia Limited
• Prime Bank Limited • Al Arafah Islami Bank Limited • Community Bank Limited
• Mercantile Bank Limited • Bank Alfalah Limited • NRB Bank Limited
• Agrani Bank Limited • National Credit and Commerce Bank
• United Commercial Bank Limited

Page 4 Annual Report 2020-2021

ACI in Brief Milestones
Imperial Chemical Industries, a British multinational
established a Branch in the then East Pakistan which was
converted into a company after liberation, named ICI Established as

1968
Bangladesh Manufacturers Limited. In 1992, ICI divested the subsidiary 28 December

1976
its investment in Bangladesh to the Management, when of Imperial listed with
Chemical Dhaka Stock
its name was changed to Advanced Chemical Industries Industries (ICI) Exchange
(ACI) Limited.
ACI Limited, being one of the largest conglomerates in
Bangladesh with a multinational heritage operates across
the country through its four diversified strategic business
units. ‘Health Care Division’ is dedicated to improve
the health of the people of Bangladesh through
introduction of innovative and reliable Pharmaceuticals
products.
Incorporated in
‘Consumer Brands Division’ is adding value to the Bangladesh as
daily life of consumers through its Toiletries, Home ICI Bangladesh

1973
Care, Hygiene, Electrical, Electronics, Mobile, Salt, Flour, Manufacturers
Foods, Rice, Tea, Edible Oil, Paints and International Limited
Businesses. ‘Agribusinesses Division’ is the largest
integrator in Bangladesh in Agriculture, Livestock,
5 May ICI

1992
Fisheries, Farm Mechanization, Infrastructure plc divested to
Development Services and Motorcycle. ‘Retail Chain local
Division’ is the largest retail chain in Bangladesh management
22 October

1995
operating through its 185 SHWAPNO outlets including 52 and registered
as Advanced listed with
newly opened express outlets across the country by Chemical Chittagong
touching the lives of over 45,000 households each Industries Stock Exchange
day. Limited

The Company and its subsidiaries contributed Taka

18,507 million to the National Exchequer during FY
2020-2021 in the form of corporate tax, custom duty and
value added tax.

Group of Companies
9 May
1994

Subsidiaries started its

1. ACI Formulations Limited first trading
2. ACI Salt Limited of shares
3. ACI Pure Flour Limited
4. ACI Foods Limited
5. ACI Agrolink Limited BSI
2019
ACI HealthCare
2013

6. Creative Communication Limited Certification

USA, Inc
7. Premiaflex Plastics Limited incorporated
8. ACI Motors Limited in USA
9. ACI Logistics Limited
10. ACI Edible Oils Limited
11. ACI HealthCare Limited
12. ACI Chemicals Limited
13. INFOLYTX Bangladesh Limited
14. ACI Biotech Limited
15. ACI Marine and Riverine Technologies Limited

Joint Ventures and Associate

16. Tetley ACI (Bangladesh) Limited
ISO
17. Asian Consumer Care (Pvt.) Limited
Certification
18. ACI Godrej Agrovet Private Limited
19. ACI CO-RO Bangladesh Ltd.
20. Stochastic Logic Limited
 2013
Annual Report 2020-2021 Page 5
 Mrs. Najma Dowla
(04 October 1946 - 28 July 2021)

We Deeply Mourn
ACI family despondently lost a mast on 28 July 2021, when Mrs. Najma Dowla
breathed her last. She assisted ACI Limited and its subsidiaries as a Director of
the Board since 1996. Her wise deliberations were a source of strength for the
Company.
She lived a fulfilling life as a daughter, a wife, a mother, and a friend. She was a
tremendously strong woman being diligent, kind and tenacious.
She left behind her husband, Mr. M. Anis Ud Dowla, Chairman, ACI Limited,
daughter Ms. Shusmita Anis, son Dr. Arif Dowla, daughter-in-law, Mrs. Rumana
Rashid Ishita, grandchildren and a large host of friends and relatives.
Her legacy will live on the hearts and minds of everyone.

May Allah grant her eternal peace in heaven!

 Board of Directors’ Profile

Mr. M. Anis Ud Dowla, the Chairman of ACI Group, is one of the most
successful personalities in Bangladesh business circle. Mr. Dowla has
maintained a high profile, and has provided leadership to the business
community in different capacities. Mr. Dowla served in the British Oxygen
Group of UK in Pakistan, Bangladesh and Kenya for 27 years, including 12
years as Managing Director of Bangladesh Oxygen Ltd. In 1987, he
became the Group Managing Director of the three ICI companies in
Mr. M. Anis Ud Dowla Bangladesh. With experience gathered while working with two British
Chairman multi-nationals for over 32 years, Mr. Dowla has continued to maintain the
multinational culture and management style in ACI, with especial emphasis
on quality, productivity and customer services. He was the President of
Metropolitan Chamber of Commerce & Industries, Dhaka in 1977, 1978,
1995 and 2010. Mr. Dowla has considerable contribution in the field of
Industrial Relations of the country. He was elected President of Bangladesh
Employers' Federation for the terms in 1975-1976, 1976-1977, 1991-1992,
1992-1993, 2003-2004 and 2004-2005.
Besides, he was the President of the Bangladesh Seed Association for
three consecutive terms. Currently, he is the Chairman of Pioneer
Insurance Company Limited and Director of the Credit Rating Agency of
Bangladesh. He is a member of the Board of Trustees of the
Independent University of Bangladesh.

Ms. Shusmita Anis completed her graduation in Fine Arts in Graphics Design from
San Jose, California, USA. She was inducted as a Director of Advanced
Chemical Industries Limited in 2000. In addition to her current role in the Board
of ACI, she performs as a member of the Board’s Audit Committee. Ms.
Shusmita is the Managing Director of ACI Formulations Limited since 2012.
Besides, she is the Director of ACI Logistics Limited, ACI Foods Limited,
ACI Motors Limited, Premiaflex Plastics Limited, Creative Communication
Limited, Consolidated Chemicals Limited, ACI Pure Flour Limited, Stochastic
Ms. Shusmita Anis
Director Logic Limited, ACI Salt Limited, ACI Chemicals Limited, Neem Laboratories
(Pvt.) Limited, Dowla Agricultural Development Company Limited, ACI
Foundation (a non-profit organization) and Pioneer Insurance Company
Limited. She is the Vice-President of Bangladesh Employers’ Federation.

Annual Report 2020-2021 Page 7

 Mr. Abdul-Muyeed Chowdhury joined the Board as Director on 28 January 2019.
He is serving as an Independent Director of ACI Formulations Limited
from October 2018. Mr. Chowdhury obtained his Bachelor of Arts with
Honors in History and Master of Arts (1st Class) from Dhaka University. He
also attended Certificate of Participation in an acceptable program of special
study in Political Science, Public Administration in the University of
Tennessee, Knoxville. Mr. Chowdhury, a CSP, served as an Adviser to the
Care Taker Government of Bangladesh in 2001 and was in charge of five
Mr. Abdul-Muyeed Chowdhury
Director Ministries. He was the Executive Director of BRAC from 2000 to 2006. Prior
to that, he spent more than three decades in the civil service of
Bangladesh and was the Secretary to the
Government from 1994 to 2000 holding charge of various ministries. He served as the Chairman of NBR,
Managing Director of Biman Bangladesh Airlines and Executive Director of Jamuna Multipurpose Bridge
Authority, President of National Shooting Federation of Bangladesh, Chairman of SME Foundation
and Vice-President of Bangladesh Olympic Association. He was the Chairperson of BRACNet Limited.
Currently, he is serving as the CEO of Tiger Tours Limited. Besides, he is a Director of MJL Bangladesh
Limited, Omera Petroleum Limited, Omera Fuels Limited, Omera Cylinders Limited, Summit Alliance Port
Limited, PEB Steel Alliance Limited and Tiger Tours Limited. He is also a Member of the Governing Body
of BRAC University, Sajida Foundation and Bangladesh Youth Enterprise Advice and Help Center (B’Yeah).

Mr. Juned Ahmed Choudhury joined the Board as Director on 17 August 2021. He
obtained B. A (Hons.) degree in Economics from Dhaka University in 1957
and Master of Public Administration from Karachi University in 1959. He
received training on Personnel Management in Public and Private
Organizations at the National School of Administration in Paris; and on
Industrial Relations at the Institute of Labour Studies in ILO, Geneva. Mr.
Choudhury was Director of Shell Oil Company Ltd., and Public Affairs
Adviser of Bangladesh Shell Petroleum Development B.V. He was decorated
Mr. Juned Ahmed Choudhury
Director Knight of the Order of Arts and Letters by the Government of France for his
contribution to promotion of better Bangladesh-France relationship in the
fields of language and culture. Mr. Juned Ahmed Choudhury served ACI
Limited as Independent Director for the period 2012 to 2018 in two
consecutive tenures.

Mr. Adil Husain was appointed as an Independent Director of the Company in

2018. He obtained Dip. Ing (Mechanical) from Tech. High School, Stockholm, and
also a Diploma in Automobile Mechanics. Mr. Husain started his career
with Pakistan Oxygen Ltd. in 1969, which later became Bangladesh Oxygen
Ltd. He served in Karachi (POL) and all the branches of BOL, was Marketing
Manager of the Company and was Regional Manager when he left in 1984. He set
up his own company, Business Consultants Ltd. representing Obayashi
Mr. Adil Husain Corporation of Japan, and successfully completed the Meghna-Gumti Bridge. From
Independent Director 1987, was Executive Director of A. Kabir Ltd., exporters of Bangladesh tea to
the then USSR. During this time, he was closely involved with the family
tea estates, and was instrumental in the setting up of the tea factory of Jhemai
Tea Estate. From 1996 to 2011 was Executive Director, Pacific Bangladesh
Telecom Ltd.
Page 8 Annual Report 2020-2021
 Mr. Anisuddin Ahmed Khan joined the Board of Advanced Chemical Industries
(ACI) Limited in August 2020. Mr. Khan, Adjunct Faculty at the School of Business
of Independent University Bangladesh (IUB) is a Fellow of the Institute of
Bankers, Bangladesh and former Managing Director & CEO of Mutual Trust
Bank Limited (MTB), where he served for nearly eleven years. Prior to joining
MTB, he headed IDLC Finance Limited for six years. A career banker, he served
earlier for 21 years with the then Grindlays Bank plc and its successor banks -
ANZ Grindlays Bank and Standard Chartered Bank (SCB), in an array of
Mr. Anisuddin Ahmed Khan
senior roles both in Bangladesh and abroad. He has served as Chairman of
Director both the Association of Bankers, Bangladesh Limited (ABB) and Primary
Dealers Bangladesh Limited (PDBL). He was also the Vice-President of the
Bangladesh Association of Publicly
Listed Companies (BAPLC) for two separate two-year terms. During his stint at IDLC, he was first
Vice Chairman and then Chairman of the Bangladesh Leasing & Finance Companies Association (BLFCA)
for two terms from 2004-2008. Mr. Anis has LL.B. (Honors) and LL.M. (First Class First) degrees and a
Diploma in French (First Class) from the University of Dhaka. He also qualified in the BCS Examination 1982.
In addition he holds a Post Graduate Diploma in Human Resource Management (First Class) from the
Bangladesh Institute of Management, Dhaka and is a Fellow of the Institute of Personnel Management,
Bangladesh. He has attended training courses on leadership, corporate governance and strategic
management at the University of Cambridge, United Kingdom; INSEAD, Fontainebleau, France; University of
California, Berkeley, California, USA and at the London School of Economics, London, United Kingdom. He has
presented a paper on “Financing the Transformation of the Bangladesh Garments Industry” at the School
of South Asian Studies, University of Harvard, Cambridge, Massachusetts, USA and ‘Achieving SDGs:
Financial Inclusion, Bangladesh Perspective’ at the Bangladesh Development Conference held there in June
2015. Similarly, he presented another paper on ‘Financial Inclusion’ at Kennedy Law School, University of
Harvard in June 2017. He presented a paper on investment in Bangladesh at Yale University in March 2019.
He also serves as the Chairman of the Board Audit Committee and Nomination & Remuneration Committee of
Berger Paints Bangladesh Ltd., Independent Director of Summit Alliance Port Limited (SAPL), Independent
Director of Trust Bank Limited and Ananta Apparels Limited. A Director of W&W Grains Corporation, Mr.
Anis has recently been elected to the board, representing participating banks, of Central Counterparty
Bangladesh Limited (CCBL), set up for automating the clearing operations of the stock exchanges. Mr. Anis
serves as Vice-President of the Metropolitan Chamber of Commerce & Industry, Dhaka (MCCI), Life Member
of the SAARC Chamber of Commerce and Industry, Member of the Managing Committee of Ispahani
Islamia Eye Institute & Hospital and Independent Trustee of the CSR Centre. He was presented the ‘Business
& Entrepreneur Excellence Award 2016’ by the UK Bangladesh Catalysts of Commerce & Industry in the
category of “Inspirational Leader of the Year” in November 2018.

Mr. Golam Mainuddin joined the Board of Advanced Chemical Industries (ACI)
Limited in October 2009. Prior to that he served the Company in the capacity
of Independent Director as well as Chairman of the Board’s Audit Committee.
Mr. Mainuddin has been the Chairman of British American Tobacco Bangladesh
since August 2008. He has been with BAT Bangladesh over 39 years and
served in different management capacity. After obtaining his Masters of
Science degree from Dhaka University, Mr. Mainuddin pursued the first 28
years of his career in the agro-based industry followed by corporate
Mr. Golam Mainuddin
management over the last 22 years. He was a Tea Garden Manager at Duncan
Director Brothers from 1969 to 1982, and then joined BAT Bangladesh to soon become
the Head of Leaf in 1985. He was inducted as Director of BAT in 1986, and
was given the responsibility of Deputy
Managing Director in 1996.He is the Director of Metropolitan Chambers of Commerce and Industry and is the
Chairman of Chamber Finance and Membership Sub Committee. He was the Vice-President of
Metropolitan Chambers of Commerce and Industries (MCCI), Vice-President of Bangladesh Employers'
Federation (BEF) and Director of Federation of Bangladesh Chambers of Commerce and Industries (FBCCI). He
was the Independent Director as well as Chairman of the Audit Committee of Apex Footwear Limited.
Besides, he is also the Director of Infrastructure Investment Facilitation Company (IIFC) at the Ministry
of Finance (ERD) of the Government of Bangladesh. He has been a CIP (Commercially Important Person)
by the Government of Bangladesh since 2010.
Annual Report 2020-2021 Page 9
 Mr. Kamran Tanvirur Rahman was appointed as an Independent Director of
the Company in 2018. He obtained his Bachelor of Science Degree in
Mechanical Engineering from the Northeastern University, Boston,
Massachusetts, USA in the year 1981. Mr. Rahman is the Chairman & Managing
Director of Pubali Jute Mills Ltd. and the Kapna Tea Co. Ltd. (Kapnapahar
Tea Estate). He is a former Vice-President (Asia-Pacific) of International
Organization of Employers (IOE), Geneva, Switzerland as well as a former
member of the Governing Body of the International Labour Organisation,
Mr. Kamran Tanvirur Rahman Geneva, Switzerland. He was also the Vice-President of Metropolitan Chamber
Independent Director of Commerce and Industry, Dhaka, from January 2013 - December 2013. He was
Director of the Federation of Bangladesh Chambers of Commerce and
Industry. He was the President of Bangladesh Employer's Federation for
2017-2019 and 2019-2021.

Dr. Arif Dowla took over the charge of the Managing Director of Advanced
Chemical Industries (ACI) Limited in June 2005. Prior to this position, he served
the Company as Deputy Managing Director from September 2000. Dr. Dowla
is the functional head of the Company who manages the affairs of ACI Group
with appropriate delegation of authority and accountability while the chief
executives of all strategic business units directly report to him. He has
significant contribution in the advancement of Industrial as well as Agricultural
sector of the country. His business strategy and various backward and forward
Dr. Arif Dowla linkages have diversified the Group business in manifold resulting ACI a largest
Managing Director turnover based conglomerate in Bangladesh. Dr. Dowla obtained Ph.D in
Mathematics from the University of California, USA. He is a member of the
American Mathematical
Society and the Society of Quantitative Analyst, New York, as well. He has been included in the Forum of
Young Global Leader Honorees 2009 by the World Economic Forum. He has been serving as the
Honorary Consul of Belgium in Bangladesh since September 2013. Dr. Dowla is the Chairman of Tetley ACI
(Bangladesh) Limited, a joint-venture between UK and Bangladesh. He is also the Chairman of ACI CO-RO
Bangladesh Ltd., a joint-venture between Denmark and Bangladesh. He is a Director of Mutual Trust Bank
Limited and former Chairman of the Bank (2012-2014). He was also the Director of Pioneer Insurance
Company Limited from 2002 to 2009. He is a Director of Metropolitan Chamber of Commerce and Industry.
Besides, Dr. Dowla is the Managing Director of ACI Logistics Limited and Stochastic Logic Limited. He,
however, occupies directorship in, ACI Salt Limited, ACI Pure Flour Limited, ACI Motors Limited, ACI Foods
Limited, Premiaflex Plastics Limited, ACI Agrolink Limited, ACI HealthCare Limited, ACI Edible Oils Limited,
Creative Communication Limited, Consolidated Chemicals Limited, ACI Chemicals Limited, ACI Boitech
Limited, INFOLYTX Bangladesh Limited, Dowla Agricultural Development Company Limited, ACI Godrej
Agrovet Private Limited and ACI Foundation (a non-profit organization).

Mohammad Mostafizur Rahman joined Advanced Chemical Industries (ACI)

Limited as the Company Secretary in July 2018. He is currently as well serving as
the Head of the Legal & Estate and Administration Departments, in addition to his
other responsibilities. Previously, he worked with HeidelbergCement Bangladesh
Limited, Bata Shoe Company (Bangladesh) Limited, Square Pharma and
Rangs Properties Limited in various capacities. In the year of 2010 the
Institute of Chartered Secretaries of Bangladesh recognized him as a
qualified Chartered Secretary. He completed both LL.B. (Hons.) and LL.M from
Mr. Mohammad Mostafizur Rahman University of Dhaka. He earned Post Graduate Diploma in Human Resources
Company Secretary Management (PGDHRM) from Bangladesh Institute of Management (BIM) in 2013.
Mr. Rahman is a Fellow member of Institute of Chartered Secretaries of
Bangladesh. He is also acting as the Member on the part of the owners in the
2nd Labour Court, Dhaka since 15 October 2020 being selected and appointed
by the Government of Bangladesh.
Page 10 Annual Report 2020-2021
 Notice of the 48th Annual General Meeting
Notice is hereby given that the 48th Annual General Meeting of Advanced Chemical Industries
Limited will be held on Sunday, 26 December 2021 at 11:30 am. The AGM will be held virtually
using digital platform through the following link: tinyurl.com/ACILimitedagm2021

AGENDA
1) To receive, consider and adopt the Audited Financial Statements for the year ended 30 June
2021 together with Reports of the Directors and Auditors thereon.

2) To declare dividend for the year ended 30 June 2021.

3) To elect/re-elect Directors and to approve the appointment of Directors.

4) To appoint Statutory and Compliance Auditors for the year 2021-2022 and to fix their remuneration.

5) To confirm appointment of Director and re-appointment of Independent Directors.

By Order of the Board

Dhaka
2 December 2021
Mohammad Mostafizur Rahman
Company Secretary

Notes:
a. The Shareholders whose names appeared in the Members/Depository Register as on the Record Date i.e. 18 N
Members can join the AGM using their Laptop, PC, Mobile or Tab providing their respective name, 16-digit BOI
The Shareholders are requested to submit their written option to receive
b.

To Join AGM
c.
dividend to the Company’s Share Office on or before 15 December 2021. In case of non-receipt of such option wit
The Proxy Form, duly completed, must be deposited at the Share Office of the Company at 9 Motijheel Comm
The Annual Report 2020 - 2021 will be available in Company’s website,

Annual Report 2020-2021 Page 11

 Financial Calendar

09
November 2020
28 24
January 2021 May 2021
Monday
Thursday Monday
Quarter One
Quarter Two Quarter Three
Adoption of unaudited
Adoption of unaudited Adoption of unaudited
first quarter financial
second quarter financial third quarter financial
statements ended
statements ended statements ended
30 September 2020
31 December 2020 31 March 2021

02
December 2021
18 28
November 2021 October 2021
Thursday
Thursday Thursday

Annual
AGM Notice Record Date Adoption of audited financial
Notice of 48th Record Date in lieu of statements for the year
Annual General Meeting Book Closure ended 30 June 2021

09
December 2021
26
December 2021
23
January 2022
Thursday Sunday Sunday
Dividend Payment
Payment of Dividend to the
Annual Report AGM Day shareholders whose name
Issuance of 48th Annual would appear in the register
Annual Report General Meeting of the Company on record date

Page 12 Annual Report 2020-2021

Value Added Statement - ACI Limited

Particulars 2020-21 2019-20

Taka in Million % Taka in Million %

Gross Turnover 28,795 26,120

Less: Purchase of materials & service 16,585 15,361

Value added 12,210 100% 10,759 100%

Applications
Government 4,829 39.6% 4,318 40.1%
Employee cost 4,602 37.7% 4,214 39.2%
Depreciation and amortisation 491 4.0% 508 4.7%
Shareholders dividend 505 4.1% 516 4.8%
Reserves and surplus 1,783 14.6% 1,203 11.2%
Total 12,210 100% 10,759 100%

11.2%
14.6%
4.8%
4.1% 39.6% 40.1%
4.0% 4.7%

2020-212019-20

37.7% 39.2%

Government Employee cost

Depreciation and amortisation Shareholders dividend
Reserves and surplus

Annual Report 2020-2021 Page 13

 Financial Highlights and Analysis
ACI Limited’s Turnover Contribution by Business Unit
F
D E D E
C C
A A

B B

2020-21 2019-20

2020-21 2019-20 2020-21 2019-20

A Pharmaceuticals 48% 51% D Fertilizer 4% 3%
B Consumer Brands 26% 24% E Seeds 5% 6%
C Animal Health 17% 16% F Others 1% 0%

Net Sales & Profit Before Tax

Shareowners' Equity Earnings Per Share (Taka)
(Taka in Million)
(Taka in Million)
18,893
25,730
23,202 72.72
21,387 21,796 15,421
14,256 14,322
18,306 12,992
11,715 11,949
14,567

48.39
36.25
7,941 25.80 26.41 27.24
3,934

15.51
2,347

3087
1,658

24.33
1,674
1,414

9.26
925

900

2015 Jun-16 2016-17 2017-18 2018-19 2019-20 2020-21 2015 Jun-16 2016-17 2017-18 2018-19 2019-20 2020-21 2015 Jun-16 2016-17 2017-18 2018-19 2019-20 2020-21

Net sales income Profit Before Tax PBT With One off gain EPS With One-off Gain

ACI Group's Comparative Statistics

Particulars December December December June 2016 July 2016- July 2017- July 2018- July 2019- July 2020-
2013 2014 2015 (six month) June 2017 June 2018 June 2019 June 2020 June 2021
Taka in million
Authorized capital 500 500 500 500 500 500 1,500 1,500 1,500
Issued & paid capital 286 344 398 398 438 482 499 574 631
Current assets 11,598 12,926 17,206 20,190 26,316 27,725 32,039 30,403 37,482
Tangible fixed assets (gross) 8,819 9,852 11,782 12,562 15,299 18,119 20,711 27,218 31,409
Shareowners' equity 3,792 4,138 9,772 9,709 10,574 10,883 9,579 7,899 10,265
Turnover (net) 22,167 25,822 31,383 17,853 47,668 56,123 63,144 69,475 80,748
Gross profit 6,598 8,051 9,840 5,663 14,104 15,866 18,318 19,484 21,716
Profit before tax 560 1,059 3,910 853 2,189 1,422 170 (99) 2,187
Profit after tax (equity holders) 204 573 2,878 382 1,065 517 (775) (1,059) 347
Current ratio (times) 0.84 0.81 0.97 0.91 0.87 0.84 0.77 0.70 0.74
Quick ratio (times) 0.45 0.42 0.54 0.53 0.52 0.78 0.44 0.41 0.40
Return on equity (%) 5.37 13.85 29.45 7.88 10.07 4.75 (8.09) (13.40) 3.38
Inventory turnover (times) 3.17 3.07 3.11 3.04 3.54 3.60 3.54 3.83 3.95
Debtors turnover (times) 6.20 6.85 6.99 6.46 6.61 5.76 5.09 5.34 6.67
Fixed assets turnover (times) 2.66 3.18 3.03 2.64 2.81 2.64 2.60 2.66 2.86
Net asset per share (Taka) 141.36 120.30 245.30 243.72 219.36 189.70 166.95 125.16 162.65
Earnings per share (Taka) 5.94 14.49 65.75 8.72 22.10 10.36 (13.51) (16.78) 5.50

* Ratios are annualised

Page 14 Annual Report 2020-2021

ACI Limited's Comparative Statistics
December December December June 2016 July 2016- July 2017- July 2018- July 2019- July 2020-
Particulars 2013 2014 2015 (six month) June 2017 June 2018 June 2019 June 2020 June 2021
Taka in million
Authorized capital 500 500 500 500 500 500 1,500 1,500 1,500
Issued & paid capital 286 344 398 398 438 482 499 574 631
Current assets 9,462 9,927 10,960 12,607 17,105 23,006 27,564 29,910 32,889
Tangible fixed assets (gross) 3,423 4,323 6,057 6,233 7,455 8,825 9,358 10,103 12,508
Shareowners' equity 5,637 6,607 11,715 11,949 12,992 14,256 14,322 15,421 18,893
Turnover (net) 10,684 12,319 14,567 7,941 18,306 21,387 21,796 23,202 25,730
Gross profit 4,258 5,171 6,262 3,561 8,196 9,242 9,886 10,705 11,372
Profit before tax 1,014 1,272 3,934 925 1,674 1,658 900 2,347 3,087
Profit after tax 764 951 3,184 680 1,244 1,317 531 1,719 2,288
Dividend 301 398 498 - 518 571 574 516 505
Current ratio (times) 1.17 1.19 1.67 1.57 1.29 1.17 1.13 1.12 1.17
Quick ratio (times) 0.85 0.83 1.07 1.08 0.92 0.91 0.90 0.93 0.93
Return on equity (%) 13.56 14.38 27.17 11.37 9.57 9.24 3.71 11.15 12.11
Inventory turnover (times) 2.74 2.59 2.40 2.22 2.31 2.45 2.25 2.39 2.44
Debtors turnover (times) 7.44 8.41 8.83 7.56 6.45 5.16 4.35 5.13 7.58
Fixed assets turnover (times) 3.34 3.18 2.82 2.42 2.45 2.43 2.28 2.26 2.18
Net asset per share (Taka) 197.23 192.09 294.08 299.96 269.54 248.48 249.64 244.35 299.37
Market price per share (Taka) 171.50 389.90 561.60 455.10 516.50 347.80 274.70 204.20 263.70
Earnings per share (Taka) 22.27 24.02 72.72 15.51 25.80 26.41 9.26 27.24 36.25
Dividend per share (Taka) 10.50 11.50 12.50 - 11.82 11.85 11.50 9.00 8.00
Dividend rate ( %) 105.00 115.00 125.00 - 125.00 118.50 115.00 90.00 80.00
Dividend payout ratio (%) 47.15 47.88 17.19 - 45.81 44.87 124.15 33.04 22.07
Price earnings ratio (times) 7.70 16.23 7.72 14.67 20.02 13.17 29.66 7.50 7.27
Dividend yield (%) 6.12 2.95 2.23 - 2.29 3.41 4.19 4.41 3.03
Number of employees 4,955 6,930 7,090 7,275 8,364 9,053 9,147 8,364 9,380
* Ratios are annualised

Analysis of Turnover (%) of ACI Limited

Cost of Materials
8% 7% Expenses
16% 16%
40% 39% Duties & Taxes Paid
to Government
16%
17% Exchequer
19% 22%
Salaries, Wages &
Benefits Paid to Employees
Profit
2020-21 2019-20

Comparison of Turnover & Costs

Taka in million

2020-21 % 2019-20 %

Turnover (Gross) 28,795 100 26,120 100

Cost of Materials 11,476 40 10,110 39
Expenses 5,600 19 5,759 22
Duties & Taxes to Government Exchequer 4,829 17 4,318 16
Salaries, Wages & Benefits paid to employees 4,602 16 4,214 16
Profit 2,288 8 1,719 7
28,795 100 26,120 100
Annual Report 2020-2021 Page 15
Message from the Chairman

Assalamu Alaikum,
Last year has been the second year of the pandemic,
appropriate technology will ensure our growth as our
affecting the whole world in an unprecedented
customers have greater spending power and demand
way. We have seen a global economy in
for specialization. ACI is focused on developing these
distress, and significant de-growth in many
new markets and creating customers of the future.
industries. This led to unemployment and
imbalance, as businesses struggled to survive. The I thank the employees of the Company for their
inception of a worldwide vaccination program has relentless efforts in being by the side of the people
given us some hope of a way out of this pandemic. during the pandemic. They have served with diligence,
The year had seen lockdowns, disruptions in the devotion, courage and commitment.
supply chain, increased cost of transportation and We have had to bear the loss of one of our
increases in commodity price. In addition to founding Directors, Mrs. Najma Dowla, who had
this, migration of urban workers to their village supported us throughout the last 29 years. We
homes and conservative spending habits also recognise her part in the evolution of the
affected business. Our company struggled through Company, and pray for her departed soul.
these challenges and continued its growth path.
I request all of you to stay safe, as we
We have taken an adaptive view of the marketplace,
overcome the challenges of the pandemic. I also
and tried to serve our customers based on their thank you for your continued support and goodwill
current and essential needs, altering our business
toward our organization. Please expect from us
model to be more relevant to them. We have kept
hard work and dedication to overcome these
our costs under tight control, while aggressively
challenges and achieve greater shareholder value as
supporting the growth where there was
we continue to progress, with renewed energy and
opportunity and demand. We have helped our
vigour, on our mission to improve the quality of
channel partners to store our products and
life of people.
maintain our presence in the marketplace where
possible. We tried to reach our customers through
considerable efforts, perhaps above and beyond
our competitors. Through these actions, we have
been able to grow, improve and engage with our
customers during this pandemic.

As the pandemic becomes more manageable, we will

continue to improve the quality of our products
and services, and prepare to serve the needs of M. Anis Ud Dowla
the people across our businesses. Process innovation Chairman, ACI Group
and
Page 16 Annual Report 2020-2021
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Statement of Corporate Governance
In ACI Corporate Governance (CG) is a maxim that is intertwined in responsibility,
compliance, transparency and finally accountability. As a part of it, ACI acknowledges good corporate
governance as the essential element for success in business and recognizes that it is to be established
by means of an effective CG Regime. Accordingly, ACI emphasizes on stronger diligence to business,
all operations being transparent and invites larger involvement of the stakeholders. Aspiring on that,
the Company has always strived to remain vigilant on good governance and good business conduct so
as to create and maintain value for shareholders, safeguard stakeholders' interest and justify investor's
confidence. In this respect the Directors of ACI are also committed to meeting the highest standards of
governance and disclosure. And with that aim, the Board ensures the integrity and firm attention of its
employees, supported by a comprehensive framework of policies, guidelines and internal control. The
Directors are conscious of their own responsibilities in supervision and direction of affairs of
the Company in conformity with the practices of sound corporate governance. In fulfillment of
those responsibilities, the Directors have set for themselves the principles that will be followed in
their own involvement in the oversight functions and in setting up clear guidelines for the executive
management.

The Governing Board

The Board of Directors of ACI, being the highest deliberations. During the meeting, the Board
authority in the Company, is constituted by a
body of very knowledgeable persons and includes
core competencies considered relevant in the context
of the Company. To further ensure a balanced
representation, the Board also includes Independent
Directors, who are very resourceful and dignified
members of the society. Thus, the Board of ACI is a
compact body and meets all the criteria required
under the BSEC governing guidelines. Further
details about members of the Board are appended at
the appropriate parts in this report.

Composition of the Board

The Board consists of nine members from the major
shareowners and business professionals. Mr. M. Anis
Ud Dowla is the Chairman of the Board and Dr. Arif
Dowla is the Managing Director. Of the nine Directors,
maximum are non-executive Directors including two
Independent Directors. The non-executive Directors
are, however, available whenever business
operations call for their attention and involvement.

Roles and Responsibilities of the Board

The Board is the supreme authority of the Company to
oversee its operations through appropriate delegation,
monitoring, control and reporting. The Directors
hold the ultimate responsibility of conducting the
activities of the Company in accordance with law and in
the interest of its shareowners and other
stakeholders, keeping in view the long-term
interest and aspirations of the Company, while also
discharging Company's legal obligations to its
shareowners.

Functioning of the Board

The Directors meet together for the dispatch of
the business and regulate the meetings and
proceedings according to the needs of the Company.
Every Board Meeting is preceded by service of
Notice well ahead of scheduled time. Notice with
agenda supported by working papers for every
meeting of the Board are sent to all Directors well in
advance so that they can come up with their
considered views and can actively participate at the
 gets a thorough review of the performance authorities to the Managing Director which empowers
of the Company through a Power Point him to set up the organizational structure, recruit appropriate
presentation by the Managing Director. All people, empower them to manage the Strategic Business
pertinent matters are discussed in details and Units and functional areas and provide them
decisions are taken based on thorough guidance for achievement of the desired results.
considerations. Questions arising at any
As the apex corporate authority, the Board is kept
meeting are decided by a majority of votes.
informed of the goals, targets and initiatives of
However, there is a procedure supported by
the Business Units and apprised of the financial
the Articles of Associations of the Company
performance on a regular quarterly basis.
which allows taking care of any urgent matter
through Resolution by Circulation. Such circular The Managing Director is in-charge of operations of the
resolution is adopted by the Directors Company and manages the affairs of the Group
present in Bangladesh, without having to through close consultation with relevant people from
call a formal Board Meeting. To make it within the Company and outside experts.
transparent, such resolutions passed by
circulation are subsequently tabled at the Empowerment of People
immediate following Board meeting and included The Board has given clear guidelines to the
in the minutes accordingly. Managing Director to ensure that there is appropriate
delegation of authority and clear statement of
Management through People accountability of the management staff all the way
The Directors believe that a successful Board directs down to the supervisory level and that performance of
and not manages. Rather they manage the the individual is judged on the basis of clearly set
management. And with that spirit, the Board has measurable goals and through objective assessment
delegated adequate operational and financial of their achievements.

Page 18 Annual Report 2020-2021

 Advanced Chemical Industries Limited GWfvÝW †KwgK¨vj BÛvw÷ªR wjwg‡UW
47th Annual General Meeting 2020 47Zg evwl©K mvaviY mfv 2020 (fvPz©qvj)
(Virtual) ZvwiL: 24 wW‡m¤^i 2020
Date: 24 December 2020 mgq: mKvj 11:30
Time: 11:30 am

Mr. Kamran Tanvirur Rahman Mr. M. Anis Ud Dowla Mr. Adil Husain Mr. Golam Mainuddin Ms. Shusmita Anis

Mrs. Najma Dowla Mr. Anisuddin Ahmed Khan Mr. Abdul-Muyeed Chowdhury Company Secretary Dr. Arif Dowla

Reporting and Communication

The Managing Director reviews and approves the adequate risk management and internal control
strategic plans of each Business Unit every quarter. He systems are in place across the Company. In
also reviews monthly report and commentary on the addition, the Company has adopted the Ten
sales and financial performance of business from the Principles of Global Compact, an initiative taken by
heads of businesses and the activities of the functional the Secretary General of the United Nations and
and service heads. An elaborate MIS system is in place. adopted world-wide by big and progressive
companies.
Communication with Shareowners
The Board considers that good governance involves Independent Director
openness and trustful cooperation among all In compliance with the Corporate Governance Guidelines
stakeholders concerned, including the shareowners of Bangladesh Securities and Exchange Commission
of the Company. Shareowners, being the ultimate (BSEC), the Board of Directors of the Company
controllers of the Company, deserve to be informed includes two Independent Directors namely, Mr. Kamran
in all corporate respects required under the law. Tanvirur Rahman and Mr. Adil Husain. Mr. Kamran
Annual General Meeting (AGM) is the highest Tanvirur Rahman also acts as the Chairman of the Audit
forum for interaction between shareowners and Committee. The Independent Directors of the Company
management of the Company. Accordingly, the have been elected from the senior corporate leaders and
Company holds the AGM regularly and in time. The bureaucrats of the country who are elite members of
shareowners are informed about the AGM well in the society having requisite qualifications as
advance and meeting materials are dispatched to prescribed by BSEC.
them with priority abiding by laws and guidelines. The
Directors attending the Annual General Meeting note Distinctive Role of Chairman and Managing
the views, aspirations and suggestions of the Director
shareowners and institutional stakeholders offered at According to the Governance Guidelines, the positions
the AGM and consider them with utmost attention. of Chairman and Managing Director are being held
The Managing Director also brings to the notice of by separate individuals and their roles and
the Board any written communication received by him responsibilities are clearly established, set out in
from the shareowners. writing and which are distinct from each other to
ensure transparency and better governance. The
Internal Control and Risk Management Chairman is a non-executive Director and
The Managing Director has to satisfy the Board that responsible for smooth functioning of the Board,
adequate internal check and controls are in place while the Managing Director acts as the Chief
through appropriate MIS and employment of Executive Officer and in charge of the day-to-day
Internal Audit team to check and validate the operations of the Company.
expenses and the systems in operation. To further
strengthen the controls, the Company has introduced Chief Financial Officer, Head of Internal Audit
ISO 9001:2008 Quality Management System, the and Company Secretary
first Company in Bangladesh to do so under Under requirements of the BSEC Governance Guidelines,
which all activities are carried out on the basis of the Company has in place the above three key
Standard Operating Procedures. These standard positions held by three qualified professionals. Mr.
procedures are updated on a regular basis in line Pradip Kar Chowdhury, a Fellow Chartered
with ISO requirements. The Company has also Accountant, acts as the Chief Financial Officer and
introduced ISO 14001:2004 Environmental Mr. Amitava Saha, acts as the Head of Risk
Management System, the first Company in Bangladesh Management & Internal Audit. Mr. Mohammad
to do so and as a result has undertaken a task of Mostafizur Rahman, a Fellow Chartered Secretary, is
continuing improvement through annual goals. appointed as the Company Secretary of the
Internal Audit department has been strengthened with Company who is responsible for overall governing
induction of qualified and experienced personnel, compliance of the Company and performs as the bridge
demonstrating the Board's commitment to ensure that between the Board, Management and Shareholders.
The roles, responsibilities and duties of these three key
positions have clearly set forth in writing by the Board.

Annual Report 2020-2021 Page 19

The Board Audit Committee
Following the Guidelines of Bangladesh Securities The terms of reference of the Nomination and
and Exchange Commission (BSEC), the Board has Remuneration Committee and Policy include, among
constituted an Audit Committee for the Company the
other items, the determination of the
details of which are stated in the Audit Committee
Company's policy on unique remuneration for
Report forming part of this Annual Report. The
Executive Directors, the review, recommendation
Committee comprises of 3 (three) Members from the
and/or approval of remuneration to Directors, the
Board of Directors. All members of the Audit
Committee are financially literate and are able review and approval of the Company's
to scrutinize and interpret financial statements remuneration policy, the creation of evaluation
while discharging their duties and criteria for Independent Directors and the Board of
responsibilities as a member of the Committee. Directors, identifying persons who are eligible to
The Chairman of the Committee is an become Directors and who may be appointed to
Independent Director having the requisite senior management in accordance with the
qualification in line with BSEC Guidelines. The criteria laid down and recommending the
Company Secretary acts as the Secretary of the appointment or removal of such persons to the Board
Committee, as required by the BSEC Guidelines. The and discharging such other functions and exercising
Chief Financial Officer and Head of Internal such other powers as the Board of Directors
Audit attend all meetings of the Committee may delegate/direct from time to time. During the
regularly as special invitees. financial year 2020-21 two (2) meetings of the
Nomination and Remuneration Committee (NRC) was
The Committee met four times during conducted on 26 November 2020 and 27 January
2021.
FY 2020-2021. The key responsibilities of
the Audit Committee include: Reviewing of Business and Financial
1. Review and monitor the integrity of the operations
financial reporting system and ensure that
Company complies with the accounting The operations of the Company are regularly
policies, principles and applicable standards. supervised, monitored and guided by the Board.
The purpose of business review is to ensure
2. Review and appraisal of the performance of
strategic control and follow-up of results based
the Internal Audit and internal control system.
on the prevailing strategic objectives and value
3. Review of the risks associated with the considerations. Financial reviews provide the internal
Company's business operation including quarterly results follow-up for the Company.
mitigation and awareness plan. The purpose is to provide an analysis of the economic
4. Overseeing hiring and performance of external and financial situations, which will then form the
auditors. basis for external reporting and presentations, and to
5. Other matters as per terms of reference as provide quality assurance for the financial reporting.
well as time to time requirements of the
Regulators. Governance in Subsidiaries Companies
Advanced Chemical Industries (ACI) Limited has
Nomination and Remuneration Committee 15 subsidiary companies and 4 joint-venture
(NRC) and one associated company under its corporate
In compliance with the Corporate Governance canopy. ACI, being the holding company, applies
Code, the Board of Directors of the Company in the same governance strategy in its
its meeting held on 25 October 2018 has constituted subsidiaries. In that exercise, the Company has
a Nomination and Remuneration Committee as duly implemented the following as per
a sub-committee of the Board. The Committee requirements of the BSEC CG Code:
consists of the following Members: a. Provisions relating to the composition of the
• Mr. Kamran Tanvirur Rahman, - Chairman Board of holding company has also been
Independent Director applied in the composition of the Board of the
• Mr. Juned Ahmed Choudhury, - Member subsidiary companies;
Director b. The Board Directors subsidiary companies include
• Mr. Golam Mainuddin, - Member one Independent Director from the Board of
Director the holding company;
• Mr. Mohammad Mostafizur Rahman, - c. The minutes of the Board meetings of the
Secretary Company Secretary subsidiary companies are placed for review at the
Mr. Monower Ahmed of ‘Monower Associates’, a following Board meeting of the holding company;
reputed HR Specialist is the ‘Advisor’ to the NRC. Mr. d. The minutes of the respective Board meetings of
Juned Ahmed Choudhury was appointed as Member of the holding company duly record that the
the Committee on 17 August 2021 to fill the vacancy Board has also reviewed the affairs of the
due to expiry of Mrs. Najma Dowla. A detailed Terms subsidiary companies, and
of Reference (ToR) of the NRC and Policy has e. The Board Audit Committee of ACI duly
also been approved by the Board.
reviews the financial statements, in
particular the investments made by its
subsidiary companies.
Page 20 Annual Report 2020-2021
Report of the Audit Committee
For the year ended 30 June 2021
The Audit Committee Report presented under Condition No.5 (7) of the Corporate Governance
Code as adopted on 3 June 2018 by Bangladesh Securities and Exchange Commission (BSEC)
provides an insight on the functions of the Audit Committee during 2020-2021.

Audit Committee in Advanced Chemical Industries (ACI) Limited is a sub-committee of

the Board of Directors, assists the Board in fulfilling its oversight responsibilities. The
Audit Committee assists the Board of Directors in ensuring that the financial statements
reflect true and fair view of the state of affairs of the Company and in ensuring a good
monitoring system within the business. The Audit Committee be and is responsible to the
Board of Directors. The jurisdiction of the Audit Committee extends over the Company
covering risk management with special emphasis on ensuring compliance with all applicable
legislation and regulation.

Composition and Meetings

Chairman : Kamran Tanvirur Rahman,
The Audit Committee reports on its activities
Independent Director
to the Board of Directors. Audit Committee also
Member : Mr. Golam Mainuddin, immediately reports to the Board of Directors on
Director
(a) report on conflicts of interests,
Member : Ms. Shusmita Anis,
Director (b) suspected or presumed fraud or irregularity or
Secretary : Mr. Mohammad Mostafizur Rahman, material defect in the internal control system,
Company Secretary (c) suspected infringement of laws, including
A total of 4 (Four) meetings were held during securities related laws, rules and regulations,
the year. Company Secretary of the Company
(d) any other matter which shall be disclosed to the
functioned as the Secretary to the Committee as per
Board of Directors.
regulatory guidelines. In addition to that the
Chief Financial Officer, Head of Internal Audit The Committee considered the scope and
and Compliance attended the meetings on methodology of the audits, as well as the
invitation and other officials were invited to independence, objectivity and qualification of the
attend the meetings as and when the Committee external auditors. The Audit Committee reviewed the
required their presence.
external audit works and concluded that the financial
The detail responsibilities of Audit Committee reporting was satisfactory and in compliance
are well defined in the Terms of Reference with generally accepted accounting principles in
(ToR). However, the major roles of the Audit Bangladesh and that the audit was satisfactorily
Committee are mentioned below: conducted. In connection with financial reporting,
(a) To review the quarterly and annual the Audit Committee also reviewed the Company's
financial statements before submission to the financial statements. The Audit Committee concluded
Board for approval, adequacy of internal audit that all reported financial results have been
function, Management’s Discussion and presented in accordance with applicable rules.
Analysis, statement of all related party
transactions and Management Letters or Moreover, the Audit Committee reviewed ACI's
Letter of Internal Control weakness issued self-assessment of Corporate Governance practices,
by statutory auditors etc.; based on a checklist provided by Bangladesh
Securities and Exchange Commission (BSEC). The
(b) To oversee the financial reporting process,
Committee concluded that Corporate Governance
hiring and performance of external auditors;
practices within ACI to a greater extent exceeded the
(c) To monitor choice of accounting policies, standards and also found few rooms to improve
principles, Internal Audit and Compliance further which are already in process.
process etc;

Annual Report 2020-2021 Page 21

 Besides these, the Audit Committee reviewed
e) Reviewed and ascertained that the internal
risk identification, assessment and mitigation control system including financial and
methodologies, process and management. The operational controls, accounting system,
Committee concluded that risk management and reporting structure are adequate and
was satisfactory, with the formulation of highly effective.
structured and well-defined risk categories, as
f) Reviewed the periodical reports submitted
well as the identification and review of the by the Internal Auditors and recommended
major risks affecting ACI’s flow of operations to the management regarding proper and
and their impact in upcoming years. prompt resolution of the
irregularities/issues stated therein.
The Audit Committee will continue to monitor
the progress made by Internal Audit Division for g) Reviewed the actions taken by the
management for implementation of Audit
"Risk Based Audit" implementation by conducting
Committee observations on issues deliberated
random sampling of Corporate Governance and
in Audit Committee reports.
Ethics compliance issues, and ensuring the
clearance of outstanding items from previous h) The Committee placed its reports regularly to
years. the Board for reviewing and monitoring the
activities recommended on internal control
system, compliance with rules and regulation
Summary of activities during the year
of the regulatory bodies.
During the year under review the Committee,
interalia, focused on the following activities: i) The Committee reviewed relevant quarterly
Financial Statements during the year under
a) Reviewed and recommended the Annual review and recommended to the Board for
Financial Statements for the year ended on their approval.
30 June 2021 to the Board for approval.
j) Based on the above review and discussion,
b) Reviewed the Management Letter from the Audit Committee is of the view that the
external auditors for the year under review internal control and compliance procedures
along with management's responses on the are adequate to present a true and fair
view of the activities and financial status of
findings.
the Company.
c) Reviewed the Auditors' Certification on
k) Reviewed the financial statements of the
Corporate Governance compliance for the
subsidiary companies.
year ended 30 June 2021.
l) Reviewed the capital investments made by
d) Reviewed the performance of the external
the subsidiary companies.
auditors during the year, their appointment
and remuneration for the next year end m) Received, Reviewed and perused the letter
recommended the same to the Board for from Dhaka Stock Exchange on CG
consideration. compliance by the Company and duly
replied in time.

Mohammad Mostafizur Rahman

Kamran Tanvirur Rahman
Secretary of the Committee
Chairman of the Committee

Dhaka, 28 October 2021

Page 22 Annual Report 2020-2021

Nomination and Remuneration Committee Report
For the year ended 30 June 2021

The Nomination and Remuneration Committee (NRC) of ACI is one of its Board
sub-committees that assists the Board generally in formulation of policy with
regard to defining qualifications, positive attributes, experiences, remuneration for
Directors and Top-Level Executives of the Company.

Dear Shareholders,
This report provides an overview of how the Committee operates, an insight into the Committee’s
activities and its role. A brief of the NRC and its roles, responsibilities and functions are given below:

Composition and Meetings

The NRC of ACI comprises three (3) members who are exclusively Non-Executive Directors, including one
Independent Director. The Committee consists of:
Mr. Kamran Tanvirur Rahman, Independent Director -
Chairman Mr. Juned Ahmed Choudhury, Director - Member
Mr. Golam Mainuddin, Director - Member
Mr. Mohammad Mostafizur Rahman, Company Secretary - Secretary

Mr. Monower Ahmed of ‘Monower Associates’, a reputed HR Specialist is the ‘Advisor’ to the NRC. Mr.
Juned Ahmed Choudhury was appointed as Member of the Committee on 17 August 2021 to fill the
vacancy due to expiry of Mrs. Najma Dowla.

A total of two meetings were held during the financial year 2020-2021. A record of the Members’ attendance
at the NRC meetings during 2020-21 is given below:

Committee members Attendance % (Percentage) Committee member since

Mr. Kamran Tanvirur Rahman 2 100

Mr. Golam Mainuddin 2 100

Mrs. Najma Dowla - - Expired on 28 July’21

Mr. Juned Ahmed Choudhury - - Joined on 17 August’21

Major Responsibilities of NRC

The role of the NRC shall be to oversee, among others, the following matters and make report with
recommendations to the Board:

a) The NRC is an independent Committee and responsible or accountable to the Board and to the
shareholders;

b) NRC is responsible to supervise, among others, the following matters and make report along with its
recommendations to the Board:

(i) formulating the criteria for determining qualifications, positive attributes and independence of a director
and recommend a policy to the Board relating to the remuneration of directors and top level
executives, considering the following:

Annual Report 2020-2021 Page 23

 (a) that the level and composition of remuneration is reasonable and sufficient to attract, retain and
motivate suitable directors to run the Company successfully;

(b) that the relationship of remuneration to performance is clear and meets appropriate performance
benchmarks; and

(c) that remunerations to directors and top level executives involve a balance between fixed and incentive
pay reflecting short and long-term performance objectives appropriate to the working of the company and
its goals;

(ii) devising a policy on Board’s diversity taking into consideration age, experience, gender,
ethnicity, educational background and nationality;

(iii) identifying persons who are qualified to become directors and who may be appointed in top level
executive position in accordance with the criteria laid down, and recommend their appointment and
removal to the Board;

(iv) formulating the criteria for evaluation of performance of independent directors and members of
the Board;

(v) identifying Company’s needs for employees at different levels and determine their selection, transfer
or replacement and promotion criteria;

(vi) developing, recommending and reviewing annually the Company’s human resources and training
policies;

(vii) establishing the levels of pay and benefits of top level executives. For this purpose 'top
level executive' means and includes the Managing Director (MD) or Chief Executive Officer
(CEO), Additional or Deputy Managing Director (AMD or DMD), Chief Operating Officer (COO), Chief
Financial Officer (CFO), Company Secretary (CS), Head of Internal Audit and Compliance (HIAC),
Head of Administration and Human Resources or equivalent positions and same level or ranked
or salaried officials of the Company;

(viii) reviewing and authorising changes to pay or benefits policy covering all employees;

(ix) reviewing and recommending on periodic/ annual employee assessments and their increment
proposals, if any;

(x) furthermore, the Nomination and Remuneration Committee will also be authorised to
recommend collective awards for negotiated pay settlements, and

(xi) reviewing and recommending Company's codes of conduct (CoC) for the Chairman, Board members,
CEO and other senior executives

Appraisal of the Board

Directors in the Company Board are also subject to appraisal and assessment about their
respective performances and collective wisdom. The NRC is responsible for ensuring ability and
effectiveness of the Board. With that in view, the Committee carries out yearly evaluation of Board's work
modalities, functional performances as well as its level of monitoring of internal control over financial
reporting for preparation of the financial statements and the safeguarding of Company assets. Such
evaluation process is led by the Chairman and assisted by the Company Secretary. For this purpose,
directors are required to complete a

Page 24 Annual Report 2020-2021

yearly confidential pre-set questionnaire. The evaluation includes an annual review of administration of
the Board and its committees covering their operations, serving of meeting notices, agenda, reports
and information produced for consideration and its overall relationship with the Management.

The NRC policy

The Company follows a nomination and remuneration policy the benchmark of which relies on standards and
also recognisable in the market context and sufficient to fit and meet the current and future needs of the
Company. The broad criteria in that respect are as follows:

(a) Nomination criteria -

(i) To follow a selection process that is absolutely transparent in all respects,

(ii) To pursue a policy that is compatible to international standards,

(iii) To only rcognise core competencies considered relevant in the context of the Company,

(iv) To follow general diversity in age, qualification, expertise and gender disciplines,

(v) To identify the Company’s needs for employees at different levels and determine their
selection, transfer or replacement and also promotion principles.

(b) Remuneration (basic) criteria -

(i) The structure, scale and composition of remuneration is reasonable and sufficient to attract, retain and
motivate suitable directors and/or managers to run the Company effectively,

(ii) The context of packages including remuneration/benefits monthly, yearly and in long run are
categorically laid down and meets appropriate performance benchmarks,

(iii) There is a clear balance in benefits between fixed and incentive pay of the directors and
senior management reflecting short and long-term performance goals and objectives of the Company.

(iv) The remuneration/compensation/benefits (or in whatever form) payable to the directors and
senior managers shall be determined by the NRC and recommended to the Board for approval.

(v) The remuneration to be paid to the whole-time directors shall be in accordance with the provisions (if
any) laid down in the Articles of Association of the Company.

(vi) Increments (if any) to the existing structure of remuneration shall be determined by the NRC and
recommended to the Board for approval.

(c) Detailed scope of remuneration strategy

The Nomination and Remuneration Committee will review all aspects of the terms and conditions of the
services of Directors and top level executives. It will also cover the pay and benefits policy for the rest of
the organisation. The overall scope and criteria of the NRC with respect to remuneration will encompass
the following aspects:

i. To recognise that the remuneration & benefits package is a major cost, but which is also a
significant management instrument which must be used strategically and positively with a clear
view of the cost/benefit implications of any pay proposal;

Annual Report 2020-2021 Page 25

 ii. To review the volume and terms and conditions of all benefits in kind while ensuring that the
reward practices are aligned to the Company's reward strategy;

iii. To identify the market competitors of the same type, level and caliber where employment
and recruitment policies are pursued in nearly same measurement;

iv. To ensure arrangement for regular surveys of remuneration and benefits in peer companies to obtain
a reliable measure of the market;

v. To formulate and justify a pay and/or remuneration level compatible to the market with
appropriate relative position recognising that the Company will need to attract and retain
managers and professionals of high caliber;

vi. To ensure that any changes to the packages are based on the market and which are affordable.
The remuneration review process should consider inflation level which is reflected also with those
of the comparator companies and based on normal practice amongst the peer companies;

vii. To ensure reviewing the reward packages as a whole, seeking overall competitiveness and market
comparability;

viii. To review the individual components of the total reward package to determine by examining
market trends, the benefit value of each element and adjust the package to achieve the greatest
perceived value for cost;

ix. To ensure that the remuneration package is at all times fully in compliance with individual
taxation and other legal requirements, whilst at the same time maximizing legitimate
individual pay advantages;

x. To maintain an effective system of job evaluation to ensure that the applicable grade structure is
maintained at management level;

xi. To consider the employment terms and conditions of the unionised employees, management
staff, directors and/or expatriates, if any, separately;

xii. To grant prior approval to collective pay/benefit awards for unionised employees. The NRC
may authorise the Managing Director or any relevant management member of the Company to
negotiate pay/benefit settlements with recognised Trades Unions or Collective Bargaining
Agent within predetermined limits, while any agreement being notified to the Committee members
on completion of negotiations;

xiii. To also ensure that the employment and retirement benefit packages comply with the best
practice guidelines.

Functionality and management of NRC

The Nomination and Remuneration Committee will formally meet at least once in a year or more
frequently depending on necessity. The annual format for managing the Nomination and Remuneration
Committee will be somewhat as follows:

• Committee secretary (who is the Company Secretary) initiates the raw planning and finalises the date for
the forthcoming NRC meeting with the Chairman of the Committee and ensures ultimate membership
attendance at the meetings.

Page 26 Annual Report 2020-2021

• The Head of Human Resources compiles background data for the next meeting and communicates to the
Company Secretary who prepares agenda for submission to the Committee members for pre-reading.

• Members agree on agenda and the key areas of focus in advance with the Chairman for the
forthcoming meeting.

• The NRC meeting, convened by the secretary, goes into session with necessary quorum being
present and followed by due preparation of minutes of the meeting by the Committee secretary.

• The draft minutes are circulated to the Committee members for study, review and concurrence.
Signed/initialed copies of the minutes are returned to the secretary.

• Minutes of the Nomination and Remuneration Committee meetings are subsequently considered and
approved at regular meetings of the Board.

Overall, ACI Limited, being a responsible Company, pursues a uniformly transparent strategy in all respects.
Accordingly, its nomination and remuneration policy, evaluation criteria, activities and basic constitution
of NRC, as a Board sub-committee, are reflected at a glance in the Annual Report of the Company for
general information of all.

Major Activities of the NRC during the period were as follows:

• Reviewed and recommended the revision in the “Code of Conduct of ACI”.

• Recommended Nomination and Remuneration Policy of ACI.

• Reviewed and evaluated the salary of the Managing Director.

• Approved the criteria for evaluation of performance of the Board and the Managing Director.

Kamran Tanvirur Rahman

Chairman of the Committee

Annual Report 2020-2021 Page 27

 Dividend Distribution Policy

ACI Board pursues a dividend policy which is sponsors

flexible and
anddesigned
other shareowners
to ensure a which
steadyhave
cashdeveloped
income fora the
genera
inve
dividend if the cash flow permits. been based on that understanding.

The
A portion of the profit of the Company is put in dividendfund
investors’ policy
forhas stood
future the test of time,
appropriation, normal
either timeor
in equity asto
wem
expectations of shareowners. of the shareowners.

This policy is dynamic and will change over time

as the sponsors’ perceive the change in the expectations of the
The Dividend Policy is the result of many
interactions over the years between the

Information of Unpaid and Unclaimed Dividend

A detailed information (year-wise) of unpaid and unclaimed dividend is available in the following link:
https://www.aci-bd.com/assets/files/aci-ltd-unpaid-dividend-1996-2017.pdf

Page 28 Annual Report 2020-2021

CSR Activities and Employee Welfare Initiatives
CSR activities during the period Work with Recreation
Winter Cloth Drive ACI Arranges Family Day, Cultural Programs, Annual
As a part of Corporate Social Responsibility, ACI Charters, Visits for its employees for better
drives an organized “Winter Cloth Distribution” bonding and outcome.

program every year. ACI rolls out this event to

share the comfort and warmth during the
Educational Assistance
shivering cold of winter for the underprivileged Scholarship
population of the nation. Members of ACI fraternity
ACI being a responsible corporate citizen,
are very much keen to participate in the event with
always focuses on education, up skilling &
the slogan of “An effort to be someone’s reason to knowledge development of the people within the
smile”. organization and beyond. As a part of it, ACI
provides scholarships to the offspring of the
ACI believes that the employees are valuable resource
employees every year. ACI believes today’s
of the Company and the driving force behind
students are the future of the nation and if they are
the success. ACI always strive to ensure that the
nurtured in the right manner, the future of the
people are engaged and aligned with the mission,
nation is secured.
vision and values. ACI has been working
relentlessly for the employee safety, welfare
Safety and Security
and wellbeing through various well-structured
programs and activities. The Company promotes occupational health and
safety by educating employees about the benefits of
Employee Welfare Initiatives maintaining good health, a proper diet and
practicing workplace safety.
With around nine thousand people as direct
employees, ACI has been consistently recognized as The Company has modern fire safety alarms,
one of the most preferred employers in the fire extinguishers and emergency exits at all its
country. The organization is committed to uphold premises in order to protect employees in case
employee welfare, which has resulted in a culture of emergencies.
where every employee passionately contributes to
the betterment of the Company, the society, and Online Health and Safety Programs
the country. To ensure physical wellbeing, ACI HR is continuously
arranging online health and safety programs for
Some of ACI’s initiatives to ensure robust
every employee. Collaborating with top hospitals
employee welfare include:
and renowned health practitioners, these health
Food and Nutrition and safety programs are targeted to create
awareness among ACI employees on alarming
Catering to their proper nourishment and hygiene by
health hazards. The most notable health and
providing them with healthy and nutritious food,
safety programs arranged by ACI HR are as
as well as running free-of-cost campaigns on
follows:
hygiene.
Awareness session on heart diseases & prevention
Medical and Health Benefit
On 27 September 2021, an hour long
ACI provides medical treatment to the employees
awareness session was arranged on heart
& their families to ensure smooth and timely
diseases & prevention. The resource person of the
health support with the help of renowned hospitals
session was Dr. A.M. Shafique, a consultant from
across the country. To ensure the facility ACI has a
United Hospital. Dr. Shafique discussed on major
significant number of Hospitals, Clinics, and
heart diseases and provide guidelines on
Diagnosis Centers under agreements. Along with the
preventing such diseases. He also addressed
treatment facilities, ACI organizes different queries raised by ACI employees on the issue.
vaccination, health awareness programs and
campaigns for the employees round the year.
Annual Report 2020-2021 Page 29
Staying Well during Covid-19 pandemic Online Awareness Session on Covid-19
This awareness session was arranged on 12th August In April 2021, during the 2nd wave of Covid-19 an
2021 which was presided by Dr. Naima Siddiquee, awareness session was organized by ACI HR
a consultant of United Hospital. Dr. Siddique where Dr. S M Sanayet Bin Mustafiz, a specialist
shared guidelines on safety measures and cautions of respiratory medicine, took an hour long session.
related to Covid-19. The resource person also addressed to the
relevant queries from participants.
Dengue Awareness
Amid dengue surge, ACI HR made a graphical Online Awareness Session on Kidney Health
awareness communication to raise awareness on the Kidney is a key organ of our body. To raise
awareness on kidney related complications a
issue. This communication focused on prevention,
session was arranged by ACI HR on 14 March of
detection and remedy for dengue fever.
2021. A Specialist of Nephrology Department
Covid-19 Safety Guidelines for Field Force from United Hospital conducted the session and
and Factory provided valuable guidelines.
In the wake of the third wave of Covid-19,
Basic Health Checkup Campaign
health and safety guidelines (in English and
A basic health checkup campaign was arranged by
Bangla) were circulated to all employees of field
ACI HR on 15 February 2021. The full day
force, factory and other establishments. Strict
session was supported by doctors of United
safety measures were taken. Special focus was Hospital. In the campaign, random blood sugar
given on wearing a mask with the ‘mask it up’ (RBS), blood pressure, body mass index (BMI) and
campaign. Doctor's advice facilities were provided.

Covid 19 Awareness & Question - Answer Workplace Safety Awareness

Session for Factory and Precaution Session
Specially aimed at all the factories of ACI, a An online Covid-19 awareness session was conducted
special session was arranged by ACI HR on by Dr. Saifullah Munshi, professor and chairman of
Covid-19 awareness in the beginning of July 2021. virology department of BSMMU on 10 June 2020. The
The session was conducted by Dr. Shariwatullah session was attended by members of top and
Khan, IMO of Dhaka Medical College hospital. Being mid management of ACI group.

a Stamford University trained (USA) Covid-19 health

Women Empowerment Initiative
care worker, Dr. Shariwatullah conducted a
ACI believes in the empowerment of women through
highly informative session for our factory their active participation, leadership and contribution
colleagues. to the overall performance of the business.

Nutrition during post Covid-19 Infection The percentage of women across all levels of
To ensure recovery of health after Covid-19 infection. the business has significantly increased, in
ACI HR has shared a diet guideline with all comparison to the past years. More women are now a

employees who were infected with Covid-19. part of diverse and exciting roles that expose them to
challenging, yet inspiring environments.
Doctors Consultation
The maternity benefit policy of the company provides
During every wave of Covid-19, ACI HR has arranged
support to new and adoptive parents, offering
a telephonic doctors’ consultation for every employee
maternity leave with a return to work
of ACI. Two dedicated doctors were made guarantee, followed by flexible work opportunity.
available for employees and they provided
guidelines and medication for employee and their
family members.
Annual Report 2020-2021 Page 31
Directors' Report to the Shareowners
For the year ended 30 June 2021

Under section 184 of the Companies Act 1994 and Corporate Governance Code as adopted on 3
June 2018 by Bangladesh Securities and Exchange Commission (BSEC).

It is a pleasure and privilege on the part of the Board of Directors to present herewith
the Directors’ and Auditors’ Reports together with the audited Financial Statements of
Advanced Chemical Industries (ACI) Limited for the financial year ended 30 June 2021.

Overview
ACI Group had registered a growth of 16% in
increased significantly. Apprehension, uncertainty,
revenue over the previous year. We had a full struggle and human suffering were the primary part
year long pandemic that challenged the entire of day to day news. We had to navigate around
nation to innovate. The people of ACI worked hard these challenges for ourselves, our suppliers
throughout the year to ensure that our products and most importantly, our customers. It was the
and services reached the customers. We were responsibility of large organizations to pull things
duly rewarded by strong growth, despite the together, which ACI, along with other large
difficulties. organizations did well.

With timely implementation of stimulus package and We have mentioned some highlights only to name

continued fiscal and extraordinary monetary policy a few of the activities. The pharmaceutical

supports, Bangladesh economy started rebounding business excelled by reaching out to customers with
anti-viral medicines, immune boosting vitamins and
from the Covid-19 fallout. Real GDP grew by
antibiotics, developed a strong export market for
5.47% in FY 2020-2021 compared to 3.51%
Covid-19 drugs. Our consumer brand had a
growth in FY 2019-2020. The recovery of the
remarkable growth in the hygiene portfolio, and
growth momentum was largely evident in the
developed many products that were helping us to
industrial sector (6.12%) and service sector
fight the pandemic. ACI Salt increased its
(5.61%), while the agricultural sector maintained
capacity by 50%, to cater to rising demand as
a robust growth of 3.45% in FY 2020-2021.
the strongest salt brand in the country.
Hefty remittance inflow and low-cost finance
Agribusiness ensured supply of harvestors
propelled the consumption expenditure which which helped numerous farmers. Animal health
helped revitalize the growth momentum, business managed to get H9 vaccines first time in
outweighing the supply side disruptions following the Bangladesh. Shwapno opened more than 50
nationwide lockdown and restrictions in the last franchise outlets across the country. They
quarter of FY 2020-2021 to limit the spread of delta developed a home delivery system that has given
variant of Covid-19. tremendous value to our customers during the
lockdown. ACI Motors developed their motorcycle
The economic environment was gloomy. Lockdown
manufacturing capacity as well as their sales
and restrictions made it difficult to carry out the
network. Throughout the year, we struggled to
regular jobs. Many people had reduced or no income,
engage in various ways with our customers, as
surviving on frugality and savings. Transportation
well as maintain our usual plan to launch
cost products and innovate.
Page 32 Annual Report 2020-2021
 Strategic Business Units
and Subsidiaries

ACI remains committed to providing customers with a broad

range of quality products from its business operations
Health Care | Consumer Brands | Agribusiness | Retail Chain
Health Care Division
The year 2020-2021 has gone through Covid-
Brands like Hexisol, Odazyth, Avloclav, Clean
19 pandemic with a multitude of impact on
Gel, Ritch, Remcor, Vistarin, Aronem, D3, Veratin,
human life and the economy. Restrictions on
Rivaban played an unprecedented role to serve
movement, lockdowns were the new way of life.
patients during the Covid-19 pandemic. More than
Our country economy and the pharma industry had
10,000 critical Covid-19 patients were treated
a tremendous impact of Covid-19 pandemic. with Remcor in hospitals. Gavilac, Othera,
Supply chain disruptions, shutdown of Remcor, Biocal-DX and Skinabin were some
manufacturing plants by suppliers, cargo successful new brands launched during 2020-21.
congestions impacted the business.
To support physicians for sharing clinical
During Covid-19 surges significant number of knowledge and experience during the last fiscal year,
physicians stayed home and remained out of ACI Pharma organized 296 live webinars with
business. Patient flow reduced significantly at participation of a large number of medical
different times of the year. Marketing activities professionals through various society of medical
especially new product launch programs were specialty like the Society of Surgeons of
limited. These factors manifested a low level of Bangladesh (SOSB), Obstetrical and
revenue generation during this financial year. A Gynecological Society of Bangladesh (OGSB),
slow recovery began at the end of the period Gynecological Oncology Society of Bangladesh
when doctors and patients adapted to the new (GOSB), Bangladesh Cardiac Society (BCS),
normal situation and online consultations. Bangladesh Gastroenterology Society and Bangladesh

Despite the outbreak of Covid-19 and subsequent Perinatal Society (BPS), etc. ACI had also
restrictions imposed by the government, ACI Pharma organized 899 Continuous Medical Education
has taken timely measures to manufacture and (CME) programs for medical professionals. These
ensure an abundant supply of Hexisol and Clean Gel CME were to enhance better understanding and
sanitizers to protect and preserve public health amidst diagnosis of diseases and their treatments,
the life-threatening pandemic. Hexisol and Clean Gel eventually to improve better health of the people of
have grown to become an integral part of Covid- our country.
19 protection for the people of Bangladesh. ACI
Pharmacovigilance program aims to enhance patient
provided Covid-19 protective gears to a great
care and patient safety about the use of medicines
number of front-line healthcare professionals
and to balance information for the effective
including physicians of Bangladesh – which had a
assessment of the risk-benefit profile of medicines.
significant impact on healthcare services
As a part of Pharmacovigilance awareness program,
management. our medical services distributed various leaflets
and
Page 34 Annual Report 2020-2021
posters in different Medical Colleges and Hospitals and
Thana Health Complexes.

Pharma Export has achieved 100% growth in business

volume despite Covid-19 pandemic situation
and problems in supply and logistics. Ten (10)
Hexisol and Clean Gel
new destinations were added in our list of export have grown to become
countries during the year. ACI has received
Marketing Authorization of 190 products from an integral part of
different Regulatory Authorities in different
Covid-19 protection for
countries. During the pandemic, ACI has tried to
extend its support to the severely Covid-19 the people of
affected countries with our Covid-19 drugs and
was able to contribute to save lives and improve
Bangladesh
quality of life of people. ACI supplied huge
quantity of Remdisivir Injection to a good number
of countries including Indonesian government
during their worst pandemic situation and pave
the way in saving lives around the globe.
Annual Report 2020-2021 Page 35
Consumer Brands Division
Toiletries
Toiletries business under ACI Consumer Brands Freedom was awarded as “Most Loved Brand”. In March
has been serving the country with several brands 2021, ACI has introduced a new varient under Baby Diaper
like Savlon, Septex, Shinex, Neem, Wonder, etc. category which is Savlon Twinkle Baby Pant Diaper.
covering various personal and home hygiene
products. Being a heritage brand, Savlon, one of the Salt
flagship brands in the Toiletries business reached
The business de-grew by 3%. ACI Pure Salt is
millions of households last year with various sub-
manufactured using the cutting-edge technology from
categories including Soap, Handwash, Antiseptics
Switzerland, including the most advanced vacuum
Liquid and Cream, Hand Sanitizer, Disinfectant
evaporation procedure, which ensures 100%
Spray, Baby Wipes and Hand Rub. This portfolio closed
pure, crystal-white, correctly iodized, and free-flowing
the year with a growth of 31.5% over last year.
edible salt. ACI Salt Limited has successfully
With the outbreak of Covid-19, there was an outburst expanded its capacity. The demand for vacuum
of demand for health and hygiene products last salt consumption continues to increase in line with
year. Although in the aftermath of the outbreak, the our preparation to fulfill this need.
market has seen a gradual decline in this demand. As a
part of the Covid-19 response program, Toiletries Flour
business created awareness, educated people how ACI Pure Flour Limited (APFL) has ensured to keep the
to use the hygiene tools properly and launched new promise of reaching a number of highly extensive
products to equip the people with necessary households with the finest quality Atta, Maida and Suji.
knowledge and hygiene products to fight against An extended line of specialized products such as
Covid-19. Multigrain Atta, Brown Atta, Oats Atta, and the recently
launched Lite Brown Atta which has been tailored as
As an outcome of all these efforts, the flagship the pathway of the first step to healthy life. The
brand Savlon won the “Most Loved Brand” awards expanded line of Maida comprises of Parata Maida
in Liquid Antiseptic, Hand Sanitizer and Liquid and Baking Maida while sustaining the constant
Handwash category from Bangladesh Brand Forum. growth of the basic Maida. The company had
Furthermore, the Toiletries business of ACI Consumer carried on its adept implementation of providing the
Brands achieved an outstanding growth of 28.1% uncompromised quality of Suji which served the
at the end of FY 2020-2021. purpose of being the purest and safest choice of
baby food.
International Brands
International Business has world renowned brands like Foods
Colgate and Canderel/Equal. Colgate products had a ACI Foods business grew by 32% over last year.
strong presence in the market as one of the significant ACI Foods Limited is engaged in manufacturing,
brands in the oral care category. The portfolio achieved marketing, and distribution of various branded
16.9% growth. food products including spice, mustard oil, rice,
noodles, bakery and beverage items.
Hygiene
With the growing consciousness of personal hygiene, ACI Foods business reaches out to its customers
there had been a sharp rise in the demand of via its three brands: Pure, Fun and Xtra Fun.
hygiene products across the country. Hygiene business Innovative product development and effective brand
from the house of ACI Consumer Brands played a communication has strengthened its brand positioning
significant role in meeting those demands with well- and helped business to attain a growth of 32% from
known brands like Freedom and Savlon Twinkle. last fiscal year.
Hygiene business consists of Female Hygiene, Baby
ACI PURE Spices has taken an initiative to provide
Hygiene, Adult Care and Protective Care
the best quality Chilli Powder in Bangladesh
categories.
through backward integration and consistent quality
Despite the hurdles of Covid-19 pandemic and subsequent development. In collaboration with one of the best
supply chain disruption, the business succeeded to chilli
maintain a steady growth of 20% over last fiscal year. All
product categories maintained a healthy growth.

Fiscal Year 2020-2021 had been outstanding for

Hygiene business as it obtained enormous
achievements throughout the year. In December 2020,
the flagship brand
Page 36 Annual Report 2020-2021
scientists of Bangladesh, ACI foods limited
developed best breed of chilli by engaging
farmers of different prominent chilli growing
areas. After ensuring the best quality, ACI
Foods engaged top 2 cooking experts of the
country to endorse ACI Pure spice brand
and built communication engaging them
to leverage brand equity among
consumers.

ACI PURE has extended its range of

mixed spices by introducing exotic ranges of
edible oil, both from its own manufacturing facilities,
mixed spices like Dry Fish Masala, Dhakaia Kacchi
import from the finest sources of the world. This
Biriyani Masala, Chilli Flakes and also a taste
dynamic vision has enabled the company to have
enhancer named Shaad E Dhamaka.
a yearly growth of 60.56% at the end of the
An innovative fried snacks named Fresh Fry was FY 2020-2021. ACI Edible Oils Limited (AEOL) has
launched under the brand Fun which is a great been complementing its full-fledged delivery of the
home-made snacking solution for kids rather than Soybean Oil and Rice Bran Oil through the smooth
having unhealthy out of home options.

Along with brand building initiatives, scientific

procurement and forecasting has helped the
business to attain significant efficiency in all ends.

Rice
ACI Rice began its operation with the promise
to deliver the best premium quality rice in
the year 2016. The business has been
continuing its activities focusing on the
sourcing of the best quality paddy and
inventing new variants of rice.

The diversified range of the

Rice business consists of
premium
functioning of two factories which are situated
Minicate rice, premium Nazirshail rice, Chinigura
at Narayanganj and Naogaon respectively. The
rice, Kataribhog rice under the brand ACI Pure
factories are operated through strict maintenance
while Chinigura rice, Basmati rice under the brand
Aroma. ACI Rice intends to expand the venture through of quality control and persistent supervision
the inclusion of more new varieties in its product line throughout the entire production process. Aligning
and creating a widespread distribution channel with a with the viewpoint of the increasing demand of
view to reaching the highest level of the ladder in practicing a healthy and diversified lifestyle, the
the Rice business sector. Company has incorporated two imported edible
oils in its product line. Le Blanc Premium
Edible Oil Sunflower Oil and Well’s Olive Oil, i.e the most
The company’s constructive vision of working as the trusted and extensively used oils by the
centrality of consigning the comprehensive range of consumers. ACI Edible Oils Limited managed to fulfil
edible oils has resulted in the launching of five types of
the gaps caused by the Covid-19 pandemic.
Agribusinesses Division
Crop Care and Public Health
In spite of the natural calamities, we had to carry on with
the enduring Covid-19 pandemic and its destructive over last year. Major growth drivers mostly came
second wave. The pandemic did not only restrain the from Dhani Gold, ACI Dhan-6 in Hybrid Rice
regular field activities, but also impacted the portfolio and bitter gourd, bottle gourd, okra,
business with many new obstacles such as container cauliflower, watermelon and pumpkin in Vegetable
shortage, increased exchange rate, delayed portfolio.
shipment, price increase of crucial raw materials and
ACI Seed developed R&D breed vegetable
active ingredients. Against all odds, the Crop Care
varieties which has gained wide acceptance among
grew by 16% while the industry grew by 5%.
the farmers community due to its superior
Having the strong emerging product Pyrazin, the performance in yield, disease resistance capacity
powder insecticide portfolio grew extraordinarily by and excellent marketable qualities. The Advanced
111%. While the leading portfolio Granular Insecticides Seed Research and Biotech Center (ASRBC) is also
grew by 14%, Liquid Insecticides by 10%, due to assisting other research projects in introducing
drought and other severe disasters, the worst hit has introgression resistance genes via molecular
been the Herbicides segment as the portfolio had de- intervention. In addition to increasing the capacity
grown by (12%) during last year. This year also of contract farmers and other channel members,
Sulphur sales suffered because of lack of infestation. ACI Seed has increased its ability to produce over
10,000 MT of different types of seeds every year. 13
Flora is a bio-friendly plant energizer, flowering seed potato varieties have been registered by National
stimulant and yield booster. Flora has been very Seed Board. Besides, the business has commercialized
popular among the farmers and it has a strong 11 new exotic varieties of vegetable, including two ACI
brand image in customers’ minds. Flora had grown by Seed R&D breed vegetable varieties.
54% which was a significant improvement over last
year. We have conducted more than a thousand ACI Seed is currently co-branded with global rice leader
demonstrations throughout the country to exhibit to Bayer Crop Science which resulted in 46% of
the farmers the benefits of using Flora in improving Aman market share due to its BLB resistance, higher
the yield of crops. yield and grain quality in this segment. However, ACI
marketed Boro hybrid rice, ACI hybrid dhan 6 also
Crop Care introduced 5 unique solutions which will has notable contribution. The business has taken
contribute to the productivity of agriculture. We initiatives to generate more cash sales by starting
are collaborating with a number of internationally institutional sales with NGOs’ and development
renowned chemical companies for new molecules. partners like FAO, World Vision, Red Crescent, SKI,
Our Sales team have been restructured for more Hunger Project, RDRS, DAE, Caritas, etc.
efficient supervision of the sales operations. ACI De-growth in the general corn market, higher raw
Crop Care’s Field Force have been working closely and packaging material prices both locally and
with the Department of Agricultural Extension (DAE) worldwide, and severe seasonal vulnerability had
officials to enhance service to the farmers. posed several challenges to the Seed business
during the Covid-19 pandemic, but ACI Seed was
This year we observed severe BPH attack throughout
resilient and committed enough to fight against
the country and our Field Force have taken
barriers and close a successful year.
appropriate actions. Even during the Covid-19
situation, our employees have been continuously
visiting the fields with proper Covid-19 precautions Fertilizer
and advising the farmers in an apt manner to ACI Fertilizer has a diverse portfolio of Soil
provide them with right solutions. Hence, our Conditioners, Soil Nutrition products and Foliar
Marketing and Field Forces are worthy to be Fertilizers. ACI Fertilizer business has grown by 21%
appreciated for their dedication, hard work and with 27% market share where the market growth is
initiatives. 10%. Soil Conditioner, Soil Nutrition and Foliar
Fertilizer have grown by 47%, 23% and 49%
Seed respectively with a leading position in all the segments
in the country. Now countrywide Orchard farming is
ACI Seed acquired a leading position in the market with
surging and getting popularity in Bangladesh. Farmers
15% market share in hybrid rice particularly in slender
are taking intensive care for quality yield. ACI Fertilizer
hybrid rice segment. The business has achieved
is supplying Foliar and Hormonal products to ensure
sales growth of 2% over last year. Besides this,
maximum yield.
vegetable portfolio achieved 6% market share with
33% growth Soil health is very important for sustainable agriculture.
Organic and Bio Fertilizers are the key components for
Page 38 Annual Report 2020-2021
better soil health management and plant growth. Currently, market is shifting to mixed
and compound fertilizer for balance application of multiple nutrients through single
granulation. ACI Fertilizer is already in the market with ‘Ratno’ mixed fertilizer as a
replacement of single fertilizer market.
ACI Fertilizer digitally connected with end-users and channel partners through
different digital platforms. Products of ACI Fertilizer have gained popularity among
the farmers also during Covid-19 pandemic.

Animal Health and Genetics

ACI Animal Health is a highly proactive, robust and diversified business with a
solid and scientifically demonstrated product portfolios, striving to provide
farmers with a one stop complete integrated solution for animal health. ACI
Animal Health pledges to ensure the maximum level of influence in farmers’
lives and lead toward a healthier nation by minimizing the protein gap with
their vigilant and unique production, importation, distribution and
marketing techniques.
ACI Animal Health has been segmented into five major portfolio;
Vaccine, Cattle, Aqua, Poultry and Animal Nutrition and Feed Additives
(AN&F). To scale down the protein gap in the country, ACI Animal
Health produces nutritional products, antibiotics, disinfectants,
analgesics, and antihistamines at its own factory and also imports
from different countries. In order to produce world class innovative
products, ACI Animal Health has made collaboration with some
international suppliers like; Ceva Sante Animal, CID Lines
International, Livisto, Kum Yang, etc.
In FY 2020-2021, ACI Animal Health has achieved sales growth
of 20% over last year. Vaccine, Poultry, Cattle, Aqua and AN&F
portfolio contributed 51.7%, 7.9%, 11.1%, 40.5% & 5.5%
growth respectively. ACI is the first company to introduce Cevac New Flu H9K vaccine against H9N2 Bird Flu in
Bangladesh, which helped to tackle Avian influenza epidemic and minimize the loss for farmers. Besides, 90% of
the total poultry is vaccinated by ACI. Animal Health business is expecting to introduce IOT device for farm
management through mobile Apps, new products for Pet Animal and different Apps for farmers connectivity.
ACI Animal Genetics started its journey with the objective to increase the income of dairy farmers of Bangladesh
through application of genetic technology. The current average milk production can be increased significantly
through the application of quality semen. The business has already established a state-of-the-art Animal
Genetics Research and Development Centre situated at Gazipur. The management team of ACI Animal Genetics
consists of experienced Livestock sector specialists. This business is poised to grow rapidly.
In FY 2020-2021, ACI Animal Genetics has achieved 154% sales growth over last year. The current capacity of
the bull station is to produce 155,000 pcs super merit bull semen straw per month due to conception rate is
more than 80%. The capacity of the bull station is being increased. The business is expecting to introduce IOT
device for farm management through mobile Apps. Fertile Embryo transfer capability is being acquired, which
has a great market potential in the future.

Motors
ACI Motors business has been segmented into three major SBUs: 1) Farm
Mechanization, 2) Yamaha, 3) Construction Equipment, Commercial Vehicles and
others. ACI Motors is the leading farm mechanization company in Bangladesh
and provides a complete farm mechanization solution with its wide range
of products and services. This includes cultivation, transplanting,
irrigation, harvesting and post-harvest preservation.
ACI Motors Farm mechanization unit ensured
27% growth over last year. ACI Motors’ Tractor Premiaflex Plastics
brand Sonalika has continued market leadership Premiaflex Plastics is a B2B Business that places a
with 36% market share through excellent product significant focus on client loyalty through the use
and superior service commitment. ACI Power Tiller of high-quality raw materials and the continuous
was also leading in the high HP power tiller segment development of new products for customers. It has an
in FY 2020-2021. This year in the Boro harvesting advanced quality management system. The
season, ACI Motors played a major role in solving the company planned to exploit this advantage to
harvesting problem of customers during the Covid-19. develop a niche market for exclusive and
Due to superior product quality and best-in-class
privileged customers. The company is focusing more
after sales service, this business is projected to
on multinationals and large reputed organizations.
grow rapidly. In addition, ACI Agri-Machinery
manufacturing factory is currently manufacturing This will allow the company to make full use of its
Thresher, Hand Power Tiller and Trailers. resources and enhance profitability.

ACI Motors had started manufacturing of 150 CC Premiaflex Plastics specializes in manufacturing and
Yamaha motorcycle, maintaining Yamaha’s international selling Flexible Packaging products and offers a diverse
standards. In the 150 CC segment, Yamaha is portfolio that includes Lamitube and label stickers in
regarded as the most premium motorcycle. With addition to the existing flexible packaging product line.
this manufacturing & Complete Knock Down Due to the pandemic, there was a global raw
(CKD) setup Yamaha motorcycle had continued its material scarcity throughout this fiscal year,
growth in the motorcycle market. The Motorcycle making it challenging to ensure optimal capacity
industry experienced 19% growth in FY 2020- utilization. As a result, customers are not willing to buy
2021 whereas Yamaha motorcycle had experienced the products at a higher price. Regardless of the
growth of 15% and maintained 6% market share. ACI obstacles, Premiaflex has grown by 21% in FY 2020-
Motors had organized marketing activities and social 2021.
awareness campaigns maintaining safety
measures in joint venture with Yamaha Riders The business places emphasis on customer satisfaction
Club. and continuously innovating new products for
In the Construction Equipment business, ACI Motors is customers. It intends to leverage its superior
dealing with world-renowned construction quality control system to create a premium
equipment brands like Kobelco, Case, Lovol and market for quality-conscious clients in niche
Indopower. ACI Motors is prepared to play a markets. Consequently, Premiaflex will be able to
bigger role in the infrastructure development of the maintain a crucial strategic lead in the flexible
country. packaging sector.

ACI Motors started Commercial Vehicle business

Premio Plastics
with the Global number one Light Commercial
Vehicle manufacturer Foton International. Through ACI Premio Plastics, another business division of
product quality along with standardized sales and Premiaflex Plastics Limited started its journey in 2018.
service networks throughout the country, Foton has Premio plastics is producing consumer plastics which
earned a positive response from the customers. consists of plastic made household, furniture and
Though the market growth was negative in FY toy products. Nationwide more than 500
2020-2021 by 5%, Foton had significant growth of distributors are connecting Premio products with
100%. Foton International awarded ACI Motors as consumers. In FY 2020-2021 business has achieved
the global best distributor for after-sales service 6% market share and grown 85% over last year amid
for the period of January 2021 to March 2021. This pandemic and lockdown situation.
business is expected to grow rapidly in the coming
days. During the lockdown period business focused on
toys category development to subsidize the revenue
Agrolink which was hampered due to the market shutdown
ACI Agrolink recorded a growth of 172% over the of non-essential goods. Toy category grew 171% over
last year. In October 2019, ACI Agrolink started last year. During the same period household and
exporting shrimp to worldwide. ACI Agrolink Amian furniture categories grew 15% and 26%
shrimp has already been adopted extensive respectively. Premio plastics launched 25 new
response from European and Japanese buyers for designs for its furniture and household products’ line
supply to Food Services, Hotels, Restaurant and extension which has created a competitive edge.
Café, Chain Super Market, wholesale and Retail Existing categories have also improved through
markets. Being one of the most reputed groups in food plastic and metal combination, specially in the Toy
industry, the business has already gained attention
category.
from a large number of international buyers from
Germany, France, Belgium, Netherlands, Denmark, Furthermore, due to the changing lifestyle and earning
United Kingdom, Portugal, Spain, and Japan and. capacity, demand for the premium plastic products are
Several buyers from these countries have visited
increasing. The business is determined to address
ACI Agrolink Shrimp Processing Plant in Satkhira and
this changing market dynamics through future
highly appreciated the factory.
 investment.

Page 40 Annual Report 2020-2021

Retail Chain Division
Currently operating through its 185 outlets, ACI
Logistics has been working on strengthening its ACI Logistics continued venturing into additional
leadership position in the retail industry. With the backward integration projects by working closely
52 newly opened express outlets, Shwapno has with the manufacturers and farmers across the
continued extending its footprint outside Dhaka and country which it started last year by getting more
now serves in involved in the value chain. Thereby, ensuring fair
31 districts. This has allowed us to strengthen price as well as improving sustainability. Shwapno
and maintain its market leadership position and enjoy connected with over 1000 farmers through SDC
49% market share of the modern trade industry. which is supported by USAID’s Feed the Future
Having already established itself as a household Program. It also continues to work with Global G.A.P,
brand and a Super brand, it is now recognized as the leading private sector body addressing the
one of the top 10 brands in the country serving crucial objectives of ensuring safe, sustainable
more than 45,000 customers daily. agriculture worldwide. In order to ensure safety in all
stages of the supply chain, ACI Logistics has also
In order to continue its emphasis on the safety of continued working closely with farmers to improve crop
employees and customers, Shwapno introduced traceability with the assistance of development
multiple initiatives. These include floor sanitization partners. Shwapno’s sourcing, procurement and quality
at entrances, temperature checks as well as placement teams are also working relentlessly to establish
of floor markers to ensure safe distance at billing Shwapno as the destination for safe and authentic
counters. Additionally, there was regular in-store manufactured and imported products, especially during
communication to raise awareness regarding the this period.
importance of social distancing and personal
hygiene. Shwapno brought in several partners to Shwapno won the prestigious ‘the Asia Marketing
provide grocery and daily needs to customers’ Excellence Award’ also known as Asia’s Marketing
Company of the Year 2020. Shwapno received
doorsteps. We also introduced our own Home
two awards at the Cannes Lions International
Delivery through “Tele Sales” service for
Festival of Creativity for its Agro Banking Project in
customers who prefer direct communication with the
collaboration with UCB. Shwapno’s e-commerce platform
stores rather than online platforms, bringing in 11,000 was awarded ECAB Mover’s award for its outstanding
customers monthly. Shwapno’s e-commerce platform contribution during the pandemic. Additionally,
has been growing in terms of orders and user base, Shwapno received Comm award in the “Social
and now serves more than 30,000 orders each Campaign” category for empowering the
month. Shwapno’s Private Label Brands has had a underprivileged third gender as well as in 3 other
71.7% increase in products in its assortment and categories: “Best Covid-19 response Campaign”,
9.7% year on year sales growth. Through all these “Film Craft” and “Best Jingle”. Through all these
initiatives as well as the continued support and bravery achievements and recognition, Shwapno continues its
of our Sales Force, Sales growth year on year for the journey to win the hearts and minds of millions of
fiscal year was at an all-time high of 18.7%. customers as well as solidify itself as the destination for
safe and authentic products.
Annual Report 2020-2021 Page 41
Joint Venture and Associate Companies
Tetley ACI (Bangladesh) Limited ACI Godrej Agrovet Private Limited
Tetley ACI (Bangladesh) Limited had faced
ACI Godrej Agrovet Private Limited (ACI-GAPL) is
sales disruption due to lockdown, HTS shops a 50:50 joint venture company of Advanced
throughout the country due to rising Covid-19 Chemical Industries Limited, Bangladesh and
situation in financial year 2020-2021. However, Godrej Agrovet Limited, India. ACI-GAPL is in
despite negative volume growth of 20% over last the business of manufacturing and selling a
year the Company continues to provide variety of Animal feeds (Poultry, Aqua and Cattle
consistently high quality blend through its global feed) as well as Day Old Chicks (DOC). ACI-
tea sourcing and blending expertise. GAPL’s innovative products are developed at
"Nadir Godrej Centre for Animal Research and
Current projections indicate a better year as Development" and tested through many
compared to previous one. Management is confident scientific field trials to deliver improved livestock
to achieve the projected results by delivering growth yields in the areas of Poultry, Fishery and Cattle
in all segments through better brand equity, farming in a sustainable manner.
strong distribution and operational efficiencies. The Company’s revenue grew by 18% and PBT grew
by 33%. We are the 3rd largest feed selling company
Asian Consumer Care (Pvt.) Ltd. in Bangladesh. The Company has taken a long leased
The Company is a joint venture of Dabur feed mill at Narayanganj with production capacity of
International Limited and Advanced Chemical 90,000 MT. The Company’s revenue grew by 45%.
Industries Limited. The Company closed financial We have renovated our breeding farm sheds
into environmental controlled sheds and
year 2020-2021 with 26% growth. The primary
consequently Parents birds’ rearing capacity
driver of healthy growth is the turbo growth in
increased by 40%.
Honey, Hair Care and Hygiene category during
pandemic. Ensuring robust value chain network, ACI CO-RO Bangladesh Ltd.
sustainable sales, distribution and product innovation
ACI CO-RO, the joint venture with Danish fruit
were the major focus areas during the Covid-19
juice giant, CO-RO A/S is progressing nicely
crisis which enabled the company launching despite the challenges posed by Covid-19. The
hand sanitizer and handwash. factory is built, machinery installed and the first
hires have taken place. It is expected that
commercial production will commence at the end of
2021.
Page 42 Annual Report 2020-2021
Financial Results - ACI Limited
For the year ended 30 June 2021, total revenue of ACI Limited was Taka 25,730 million which
Margins
was Taka 23,202 million for comparative year. The gross profit margin decreased to 44.20% in the Gross Profit Margin
current year from 46.14% of last comparative year due to higher proportionate sale of lower margin 42.99% 44.84% 44.77% 43.21% 45.36% 46.14% 44.20%

products. In the current year, operating profit was Taka 3,544 million and profit after tax (PAT) was
Taka 2,288 million resulting into Earnings per Share Taka 36.25. Profit After Tax Margin
7.31% 8.56%
6.79% 6.16% 7.41% 8.89%
2.44%

Key Operating & Financial Information at a Glance 2015 Jun-16 2016-17 2017-18 2018-19 2019-20 2020-21

The key operating and financial information for the financial year 2020-21 along with the preceding Gross Profit Margin Profit After Tax Margin

five and half years are presented below:

Figures are in million (Taka)
July 2020- July 2019- July 2018- July 2017- July 2016- June 2016 December
Particulars June 2021 June 2020 June 2019 June 2018 June 2017 (six 2015
month)
Turnover (net) 25,730 23,202 21,796 21,387 18,306 7,941 14,567 Turnover Profit after tax
Gross profit 11,372 10,705 9,886 9,242 8,196 3,561 6,262 (Taka in Million) (Taka in Million)
2,288
Profit before tax 3,087 2,347 900 1,658 1,674 925 3,934
25,730
Profit after tax 2,288 1,719 531 1,317 1,244 680 3,184 23,202
1,719
Earnings per share (Taka) 36.25 27.24 9.26 26.41 25.80 15.51 72.72
Issued & paid capital 631 574 499 482 438 398 398
Shareowners' equity 18,893 15,421 14,322 14,256 12,992 11,949 11,715
Net asset per share (Taka) 299.37 244.35 249.64 248.48 269.54 299.96 294.08
Net Operating Cash Flows Per Share (NOCFPS) 20.45 71.18 25.44 0.27 (17.75) 3.63 1.56
Number of employees 9,380 8,364 9,147 9,053 8,364 7,275 7,090
Total contribution to National Exchequer 4,829 4,318 3,770 3,625 3,302 1,340 2,626 2019-20 2020-21 2019-20 2020-21

Appropriation of profit
Considering the financial results of the company during the year and free reserve carried over
and in line with following consistent dividend policy, the Directors recommended appropriation of Annual Retained Earnings
net profit as follows: (Taka in Million)

Particulars 2020-2021 2019-2020 2,686

Un-appropriated profit 10,416,969,706 9,214,406,357
Add: Net profit after tax 2,287,783,139 1,718,919,934
Add: Other comprehensive income (11,098,000) - 1,783

Total profit available for appropriation 12,693,654,845 10,933,326,291

2,119

1,203
Appropriation of profit:
Interim dividend: 680 726 746

Cash Dividend - -
567

Final Dividend Proposed: (42)

2015 Jun-16 2016-17 2017-18 2018-19 2019-20 20
Cash Dividend 410,216,625 458,983,640 (six months)
Stock Dividend 94,665,375 57,372,945
One-off Gain
Less: Total dividend 504,882,000 516,356,585
Balance carried forward 12,188,772,845 10,416,969,706

With the balance carried forward and with future ploughing back of the profit, Directors are Dividend
confident that company will be able to maintain prudent dividend policy in coming years. (Taka in Million)

Dividend 571 574

The Board of Directors is pleased to recommend cash dividend @65% i.e. Taka 6.50 per
share and 15% as stock dividend for the year ended 30 June 2021 to those shareowners whose 518 516
names would appear in the Share Register of Members of the Company or in the Depository list 498
505

of CDBL on the Record Date which is Thursday, 18 November 2021. No interim stock
dividend was declared during the year.
Jan'15- 2016-17 2017-18 2018-19 2019-20 2020-21

Contribution to the National Exchequer Jun'16 (18 months)

For the year ended 30 June 2021, the company contributed Taka 4,829 million to the National
Exchequer in the form of corporate tax, custom duty and Value Added Tax (VAT). This
is equivalent to 18.77 percent of the Company’s net sales revenue for the year ended 30 June
2021. Annual Report 2020-2021 Page 43
Cost of Goods Sold and Profit Margins Consolidated Net Operating Cash Flows Per
For the year ended 30 June 2021, cost of goods Share (NOCFPS) decreased due to investing in
sold was Taka 14,358 million which was Taka working capital to facilitate revenue growth in
12,497 million for comparative year. Overall, the coming months.
Company has been able to generate gross profit
margin of 44.20% (Taka 11,372 million) during the Consolidation of Accounts
year ended Advanced Chemical Industries Limited (ACI Limited)
30 June 2021 as against 46.14% (Taka 10,705 has 15 (fifteen) subsidiary Companies. The
million) during comparative year. This has been financial statements of the subsidiary companies
due to higher proportionate sale of lower margin have duly been consolidated with ACI Limited as
products. Along with the growth in gross profit, the per requirements of the Companies Act-1994,
PAT percentage was 8.89% compared to 7.41% of Bangladesh Securities and Exchange Commission's
last year. guidelines and in line with the International
Accounting Standards (IAS)/IFRS adopted by
Financial Results - ACI Group Bangladesh. However, separate reports
For the year ended 30 June 2021, consolidated including the audited financial statements,
revenue was Taka 80,748 million which was auditors’ and directors’ report for all subsidiary
Taka 69,475 million for comparative year. On companies are provided at the respective section
the other hand, consolidated gross profit margin of this report.
was 26.89% in the reported year compared to
28.04% of previous year mainly due to higher
Segment-wise performance
proportionate sale of lower margin products. Segment-wise performance has been shown in
Note - 7(ii) of the notes to the accounts of the
In the current year, the consolidated operating profit financial statements.
was Taka 5,559 million and profit attributable to
equity holders of the company was Taka 347 Risk and Concern
million resulting into consolidated Earnings per The Company is aware of the different risks
Share Taka associated with doing business and is prepared
5.50 in the current year. to counter those risks through systematic
approach. However, business may be affected by
Contribution to the National Exchequer risks and uncertainties presently not known to us
For the year ended 30 June 2021, the Group or that we currently believe to be immaterial.
contributed Taka 18,507 million to the National Financial risks management has been disclosed in
Exchequer in the form of corporate tax, custom duty the Note - 38 of the Financial Statements.
and Value Added Tax (VAT).
Future: Looking ahead, in views of the pandemic
uncertainties worldwide, ACI shall adjust its business
Related Party Transactions strategies in future to adapt to global realities.
All transactions with related parties are made on a
commercial basis and the basis was the principle Extraordinary Gain/Loss
of "Arm’s Length Transaction". Details of related No extra-ordinary gain or loss exists during the
party transaction are disclosed in the Note – 43 year as prescribed by the International Financial
of the Financial Statements. Reporting Standards (IFRS).

Disclosure on Significant Variation in Utilization of Proceed (Public Issue)

Annual Financial Statements No proceed has been raised by the Company through
At Group level, ACI registered a notable growth public issue, right issue and any instruments
in consolidated profit during the reported financial during the year under review. And, the financial
year as reflected in the Consolidated Statement of results of the Company have continued to grow as
Profit or Loss. This was mainly resulted from a reflected in the annual financial statements of the
double-digit growth in consolidated revenue Company.
which was BDT 80,748 million in FY 2020-21
against BDT 69,475 million of FY 2019-20 amid the Preparation and Fair Presentation of
pandemic. During the reported financial year, Financial Statements
consolidated gross margin was 26.89% compared The Financial statements prepared by the
to 28.04% of previous year due to higher management of the Company present a true and fair
proportionate sales of lower margin products. view of Company's state of affairs, result of its
Overall, the growth in consolidated gross profit operation and changes in equity and cash flows.
exceeded the growth in consolidated operating
expenses by a decent margin. This along with Books of Accounts
the decrease in net finance cost contributed to
The books of accounts of the Company have
the significant improvement in consolidated profit
been maintained in accordance with provisions
and Earnings per share (EPS). On the other
of the Companies Act 1994.
hand,
Page 44 Annual Report 2020-2021
Accounting Policies Appointment of Director
Appropriate accounting policies have been Mr. Juned Ahmed Choudhury has been appointed
consistently applied in preparation of the Financial
as Nominee Director of ACI Foundation on 17
Statements and that the accounting estimates are
August 2021 to fill the casual vacancy due to the
based on reasonable and prudent judgment.
expiry of Mrs. Najma Dowla. The Board
requested the shareholders to confirm the
Application of IASs or IFRSs to the
appointment at their 48th Annual General
Financial Statements Meeting. The brief resume of Mr. Choudhury is
International Accounting Standards (IASs) and available under the ‘Directors Profile’ of this
International Financial Reporting Standards report.
(IFRSs) have been followed in preparation of the
financial statements. Independent Director
In compliance with the Corporate Governance
Internal Control
Code of Bangladesh Securities and Exchange
Internal Control Policies in ACI is designed to Commission (BSEC), the existing Board of
ensure operational efficiency, reliable financial Directors of the Company includes two
reporting and sound governance within and outside
Independent Directors, Mr. Kamran Tanvirur
the Company. Accordingly, the Board of Directors of
Rahman and Mr. Adil Husain. Mr. Kamran
the Company is of the opinion that the system of
Tanvirur Rahman is the Chairman of the Board
Internal Control is sound in design and has been
effectively implemented and monitored. Audit Committee. The Independent Directors of the
Company have been elected amongst the senior
Declaration/Certification of CEO & CFO corporate leaders and bureaucrats of the country who
are elite members of the society having
The declaration or certification by the Chief Executive
requisite qualifications as prescribed by BSEC.
Officer (CEO) and the Chief Financial Officer (CFO) to
the Board of the Company as prescribed under the
Codes of Corporate Governance issued by Bangladesh Re-appointment of Independent Director
Securities and Exchange Commission is disclosed Mr. Kamran Tanvirur Rahman and Mr. Adil
in Annexure - IV of this report. Husain completed their 1st tenure as Independent
Director of the Company on 28 May 2021 and 21
Management Discussion & Analysis July 2021 respectively. Being eligible, the Board of
The discussion and analysis duly signed by the Directors of the Company re-appointed them as
Managing Director of the Company presenting, Independent Directors of the Company for 2nd
among others, the detailed analysis of the company’s tenure of three years with effect from 29 May 2021
operations, financial position, performance, risk and and 22 July 2021 respectively. The Board requested
concern, accounting policies & estimation to the the shareholders to confirm the appointments at
financial statements any changes thereof have their 48th Annual General Meeting. Their profiles
been disclosed in Annexure III of this report. are enclosed under the ‘Directors Profile’ of this
report.
Board of Directors
The Board of Directors of the Company consist of 9 Nomination and Remuneration
(Nine) members including 2 (two) Independent Committee (NRC)
Directors. The majority of members of the Board are
non-executive. The list and details of Directors are In compliance with the Corporate Governance
available under the ‘Directors Profile’ of this report. Code, the Board of Directors of the Company in its
meeting held on 25 October 2018 has constituted
Re-election of Directors a Nomination and Remuneration Committee (NRC)
By operation of Article 120 of the Company's Articles as a sub-committee of the Board. The
of Association, Mr. M. Anis Ud Dowla, Ms. Committee consists of the following Members:
Shusmita Anis and Mr. Abdul-Muyeed • Mr. Kamran Tanvirur Rahman, - Chairman
Chowdhury retire by rotation at the 48th AGM Independent Director
and being eligible, offer themselves for re-
• Mr. Juned Ahmed Choudhury, - Member
election. The brief resume along with required
Director
information of the re-elected directors are
available under the ‘Directors Profile’ of this • Mr. Golam Mainuddin, - Member
report. Mr. Juned Ahmed Choudhury appointed as the Director
Director on 17 August 2021 to fill the casual vacancy • Mr. Mohammad Mostafizur Rahman, - Secretary
due to expiry of Mrs. Najma Dowla, is hereby Company Secretary
retired and offer himself for re-election being
eligible. The brief resume along with required Mr. Juned Ahmed Choudhury was appointed as
information of Mr. Juned Ahmed Choudhury is Member of the Committee on 17 August 2021 to
available under the ‘Directors Profile’ of this report. fill the casual vacancy due to expiry of Mrs.
Najma Dowla. A detailed Terms of Reference
(ToR) of the NRC and Policy has also been approved
by the Board.
Annual Report 2020-2021 Page 45
The terms of reference of the Nomination and a fee of Tk. 1,089,000/- plus VAT. Accordingly, Board
Remuneration Committee and Policy include, among recommends the appointment to the shareholders of
other items, the determination of the the Company.
Company's policy on unique remuneration for
executive directors, the review, Corporate Governance Compliance
recommendation and/or approval of remuneration
to directors, the review and approval of the
Status
Company's remuneration policy, the creation of ACI believes in sustainable business development
evaluation criteria for independent directors and through quality assurance, customer focus,
the Board of Directors, identifying persons who innovation, fairness, transparency and compliance,
are eligible to become directors and who may be and continuous improvement for enriching the quality
appointed to senior management in accordance of life of the people. It has been the largest
conglomerate in Bangladesh having multinational
with the criteria laid down and recommending
heritage and good corporate culture. Corporate
the appointment or removal of such persons to
Governance at its utmost has, therefore, long been
the Board and discharging such other functions
practiced in ACI. However, the Board and
and exercising such other powers as the Board of management of the Company are committed to
Directors may delegate/direct from time to time. continuously strive for the highest standards
During the financial year 2020-21 two (2) and ethics in governance practices with a view
meetings of the Nomination and Remuneration to safeguarding the interest of its shareholders
Committee (NRC) was conducted on 26 November and innumerable stakeholders as well. In this
2020 & 27 January 2021. connection, we are pleased to confirm that the
Company has meanwhile complied with all the
Board Meeting & Attendance requirements under the Corporate Governance
During the financial year 2020-2021, a total number Code adopted by Bangladesh Securities and
of 6 (six) meetings of the Board of Directors Exchange Commission. The compliance checklist
were held to transact Company’s affairs. The for the year ended 30 June 2021 in this regard is
Attendance record of the Directors are furnished in appended in Annexure-V of the Directors' Report.
Annexure-I of this report. However, the Corporate Governance Compliance
Certificate as provided by M/s. Al-Muqtadir
Remuneration to Directors Associates, Chartered Secretaries, is also enclosed in
Annexure-VI of this report.
During the year, the Company has paid a total of
Taka 36,000/- as Board meeting attendance Going Concern
fees. The remuneration of Directors has been
The Board is of the opinion that the Company is
mentioned in Note - 33 and 43 of the Financial
indeed a going concern. This is recognized through
Statements. appropriate enquiries and analyses, which establishes
that the resources are adequate to support the
Shareholding Pattern operations and that sufficient business opportunities
The pattern of shareholding as on 30 June 2021 of exist to justify the organization as a going concern
the Company as prescribed by the code of and the Directors analyse the financial statements
corporate governance issued by the Bangladesh accordingly to ensure that. Accordingly, the Financial
Securities and Exchange Commission (BSEC) is Statements are prepared on a going concern basis
furnished in Annexure-II of this report. and there is no doubt, whatsoever, upon the
Company's ability to continue as going concern.
Minority Interest
The Board of Directors ensures that the Corporate Social Responsibility (CSR)
Company operates within the limit of its charter ACI acknowledges that there is an interrelationship as
supported by the laws and codes of corporate well as inter-reliance between responsibility and
governance with regard to the rights of its commercial interest. The strategic objectives of the
minority shareholders are protected from any Company and social aspirations are intertwined
direct or indirect abusive actions by, or in the and mutually inclusive, which could not be
interest of, the controlling shareholders. However, separated or isolated. In this context, the Board of
for contingency, there has been effective means of ACI believes that good business is good
development and vice versa. Accordingly, our
redress.
relationship with the society at large is built on a
partnership which strives to achieve common
Appointment of Auditors economic and social goals. Thus, CSR is a central
The existing Auditors of the Company, M/s. A. Wahab function of ACI Group and the projects and
& Co., Chartered Accountants, retire at this Annual programs under CSR are selected on the basis of their
General Meeting on completion of their audit works relevance to the Group business, as well as social
for the year ended on 30 June 2021. They are, necessities of Bangladesh. We are conscious of our
however, eligible for re-appointment as per responsibilities to manage a sustainable business
BSEC notification. M/s. A. Wahab & Co., organization and at the same time respect the
Chartered Accountants, expressed their interest to social aspirations concerning us.
be appointed as auditors of the Company for the FY
2021-2022 at
Page 46 Annual Report 2020-2021
The People of ACI
People are the most valuable part of the
resolve than before, on our mission to improve the
organization. Many of the programs that we have, to quality of life of people.
reinforce our togetherness and culture, were
cancelled. It was important for us to be Acknowledgements
together during this time of crisis. Our
The Board of Directors firmly believes that ACI has
organization strength was tested, and we became
the necessary strengths, resources and commitment
much better for it. Our values were put to action to further propel the Company to newer heights. The
through our effort to keep the business processes performance of the Company during the period under
working. review, even with so many challenges confronted,
demonstrates the resolve and determination of the
An important part of this year was ensuring safety
Board, Management and overall the peoples in the
through wearing of mask, social distancing, Company. At this occasion, the Board expresses
zoom meetings and many other innovation to on record their appreciation to the partners of
reduce the risk of exposure to Covid-19. The other ACI, shareowners, suppliers, customers, bankers,
part was to take care of those who got affected, media and all other well-wishers for their
and allow for proper recovery. Our Human support and patronage to bring the company to
Resources and Adminstration Departments did a this level. We value their continued support to fulfill
remarkable job of keeping our people safe and our mission to improve the lives of people.
healthy.
Finally, and most importantly, we, on behalf of the
As we move forward, we would become permanently Board of Directors thank the employees of ACI
in factories, depots, shops, offices and field for
a more digital organization. This will increase
their untiring efforts. They have worked hard,
our productivity significantly and eliminate
against all odds, uncertainties and adversities
many unnecessary activites and costs. People have
and built a stronger ACI that can create a
gotten used to e-learning, which will of great greater positive impact on people, planet and
benefit to ACI and the country as a whole. We prosperity.
have to move forward in a positive way, and
continue with greater

On behalf of the Board

Dr. Arif Dowla Kamran Tanvirur Rahman

Managing Director Independent Director
Dhaka, 28 October 2021
Annual Report 2020-2021 Page 47
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 Annexure - I
Number of Board Meetings and Attendance of Directors
As per condition no. 1 (5) (xxii) of the Corporate Governance Code 2018 issued by Bangladesh Securities
and Exchange Commission, the number of Board Meetings held and the Attendance by each Director during
the Financial Year 2020-2021 are as follows:

Meeting Meeting
Name Position in Board Remarks
Held Attended
Mr. M. Anis Ud Dowla Chairman 6 6 -
Ms. Shusmita Anis Director 6 6 -
Mr. Abdul-Muyeed Chowdhury Director 6 6 -
Mrs. Najma Dowla Director 6 6 Expired on 28.07.21
Mr. Adil Husain Independent Director 6 6 -
Mr. Anisuddin Ahmed Khan Director 6 6
Mr. Golam Mainuddin Director 6 6 -
Mr. Kamran Tanvirur Rahman Independent Director 6 6 -
Dr. Arif Dowla Managing Director 6 6 -

Annexure - II
Pattern of Shareholding

As per condition no. 1 (5) (xxiii) of the Corporate Governance Code 2018 issued by Bangladesh Securities
and Exchange Commission, the pattern of shareholding along with name wise details as on 30 June 2021 are as
follows:

Condition no. Name of Shareholders Position No. of Shares held % of Shares held
11(5) (xxiii) (a) Parent/Subsidiary/Associated Companies and other related parties:
ACI Foundation N/A 5,746,648 9.11%
1(5) (xxiii) (b) Directors:
Mr. M. Anis Ud Dowla Chairman 11,715,086 18.56%
Dr. Arif Dowla Managing Director 2,273,543 3.60%
Mrs. Najma Dowla Director 1,744,909 2.76%
ACI Foundation, Represented By N/A 5,224,227 9.11%
Ms. Shusmita Anis Director 785,670 1.24%
Mr. Abdul-Muyeed Chowdhury Director - -
Mr. Golam Mainuddin Director - -
Mr. Anisuddin Ahmed Khan Director - -
Investment Corporation of Bangladesh N/A 5,510,576 8.73%
(ICB)
Mr. Kamran Tanvirur Rahman Independent Director - -
Mr. Adil Husain Independent Director - -
Chief Executive Officer, Chief Financial officer, Company Secretary, Head of Internal Audit & Compliance:
Dr. Arif Dowla Chief Executive Officer 2,273,543 3.60%
Mr. Pradip Kar Chowdhury Chief Financial Officer - -
Mr. Mohammad Mostafizur Rahman Company Secretary - -
Mr. Amitava Saha Head of Internal - -
Audit & Compliance
1(5) (xxiii) (c) Executives (Other than Directors, CEO, CS, CFO and Head of Internal Audit & Compliance):
1(5) (xxiii) (d) Shareholders holding 10% or more voting interest in the company:
Mr. M. Anis Ud Dowla Chairman 11,715,086 18.56%

Annual Report 2020-2021 Page 57

 Annexure-III
Management Discussion and Analysis
As per condition no. 1 (5) (xxv) of the Corporate Governance Code 2018 issued by Bangladesh Securities and Exchange
Commission, the Management’s Discussion & Analysis are as follows:
Accounting policies and estimation for preparation of financial
statements Changes in accounting policies and estimation
The Company has been following consistent policies and estimation.
The Company follows International Financial Reporting Standards (IFRSs) There are no such changes in accounting policies or estimation which has
and International Accounting Standards (IASs) along with local material impact on financial statements.
regulations applicable for preparation of financial statements. Detail Comparative analysis of financial performance and financial
description of accounting policies and estimation used for preparation of position as well as cash flows for current financial year with
the financial statements of the Company are disclosed in the notes 4 preceding five and half years
Major areas of financial performances and financial position as well as
and 6 to the financial statements.
cash flows for the financial year 2020-21 along with preceding five and
half years are as follows:
Figures in million except ratios and percentage
July 2020- July 2019- July 2018- July 2017- July 2016- June 2016 December
Particulars June 2021 June 2020 June 2019 June 2018 June 2017 (six month) 2015
Turnover (net) 25,730 23,202 21,796 21,387 18,306 7,941 14,567
Gross profit 11,372 10,705 9,886 9,242 8,196 3,561 6,262
Profit before tax 3,087 2,347 900 1,658 1,674 925 3,934
Profit after tax 2,288 1,719 531 1,317 1,244 680 3,184
Earnings per share (Taka) 36.25 27.24 9.26 26.41 25.80 15.51 72.72
Issued & paid capital 631 574 499 482 438 398 398
Shareowners' equity 18,893 15,421 14,322 14,256 12,992 11,949 11,715
Net asset per share (Taka) 299.37 244.35 249.64 248.48 269.54 299.96 294.08
Net Operating Cash Flows Per Share (NOCFPS) 20.45 71.18 25.44 0.27 (17.75) 3.63 1.56
Number of employees 9,380 8,364 9,147 9,053 8,364 7,275 7,090
Total contribution to National Exchequer 4,829 4,318 3,770 3,625 3,302 1,340 2,626

The Company maintained a consistent growth over the analyzed periods as depicted
in the analysis enumerated above. The banking sector performed well in FY2020-21 amid the COVID-19 pandemic
compared to FY2019-20 supported by prudential banking resilience policies by
Comparison of financial performances and financial position as well as Bangladesh Bank. Asset quality, capital adequacy, and profitability were much
cash flows with peer industry scenario better than expected in FY2020-21.
The Company is diversified business conglomerate having several businesses in With the support of prevailing low interest rate and ample liquidity in the
different sectors. Accordingly, the company has no such peer company to draw
banking system, capital market was vibrant in FY2020-21 and witnessed a
a reasonable comparison.
strong bullish trend in Q4 of FY2020-21, as indicated by in a noteworthy rise in
Explanation of the financial and economic scenario of the country and the share price indices, turnover, and market capitalization.
globe Global commodity prices continued their recoveries in Q4 of FY2020-21.
With timely implementation of stimulus package and continued fiscal Energy prices rebounded from its historic low in April 2020, backed by crude
and extraordinary monetary policy supports, Bangladesh economy started oil price rise resulted from sharp supply cut by OPEC+ and modest rise in oil
rebounding from the COVID-19 fallout. Real GDP grew by 5.47% in FY2020-21 consumption, while economic activities recovering slowly. Crude oil price overweighed
compared to 3.51% growth in FY2019-20. The recovery of the growth its pre-pandemic level price and reached $70.96 a barrel in June 2021. On
momentum was largely evident in the industry sector (6.12%) and service the other hand, non-energy and food prices had reached their recent highs in
sector (5.61%), while the agriculture sector maintained a robust growth of May 2021 before marginally decreased in June 2021. Among food prices, rice price
3.45% in FY2020-21. Hefty remittance inflow and low-cost finance propelled moderated in this quarter while soybean oil price reached the highest (1554
the consumption expenditure which helped revitalize the growth momentum, USD/mt) in May 2021 and then slightly fell (1420 USD/mt) in June 2021. The
outweighing the supply side disruptions following the nationwide lockdown and soybean oil price had lifted primarily by slow production growth in Southeast
restrictions in the last quarter of FY2020-21 to limit the spread of delta variant of Asia and robust global demand emerging from the biodiesel sector. Inflation
COVID-19. in major South Asian Countries followed an upward trend during April-June
Headline CPI inflation (point-to-point) increased to 5.64% in Q4 of FY2020-21 from 2021. Among all the selected South Asian countries Pakistan experienced the
5.47% in Q3 of FY2020-21, driven mainly by non-food inflation. A rise in highest inflation rate at around 9.7% while Vietnam witnessed low inflation at 2.4%
transport cost for securing social distancing in public transports and higher in June 2021.
costs of clothing and footwear, and household furniture, operations and
repairing contributed to move up the non-food inflation to 5.94% in Q4 of Risk and concerns issues related to the financial statements, explaining
FY2020-21 from 5.39% in Q3 of FY2020-21, while food inflation declined such risk and concerns mitigation plan of the company
marginally to 5.45% from 5.51% with some volatility during this period. The Company has exposure to the Credit Risk, Liquidity Risk and Market Risk arising
However, twelve-month average CPI inflation declined from 5.65% in FY2019-20 from its operations as outlined in the financial statements. The detail explanation of
to 5.56% in FY2020-21, remaining close to the yearly target of 5.40%. risk and concerns along with the Risk Management Framework are explained in the
Current account (CAB) deficit narrowed to USD 3.81 billion in FY2020-21 from note 38 to the financial statements published in this annual report.
USD The Company has taken sufficient steps and controls effectively consistently
4.72 billion in Q3 of FY2020-21, mainly because of a strong growth (39.9 round the year to mitigate the risk and concerns.
percent, y/y) in remittance inflows. The surplus in overall balance (BOP) widened
three-fold to USD 9.27 billion in FY2020-21 from USD 3.17 billion in FY2019- Future plan for company’s operation, performances and financial position
20, contributed mostly by a healthy surplus in financial account on the back of The Company has taken all sorts feasible plans, strategy and vision to continue the
a large inflow of medium and long-term foreign borrowings. A net purchase of USD operations of the company for foreseeable future. This is relevant to share that
7.7 billion in the foreign exchange market by the Bangladesh Bank (BB) kept the company maintains a periodic action plans along with mid-term and long-term
nominal exchange rate of BDT against USD stable throughout the FY2020-21, strategies to maintain the sustainability in its performances and financial position.
while BB’s official reserve of foreign exchange piled up to USD 46.39 billion –
equivalent to 6.5 months of prospective import at the end of FY2020-21.
The M2 grew by 13.62% (y/y) at the end of Q4 of FY2020-21, remaining close
to the FY2020-21 target, contributed by both net foreign assets (NFA) and
net domestic assets (NDA). However, private credit growth remained subdued
in the
face of weak investment demand amidst the COVID-19 situation. A rise in deposit
growth in tandem with low credit growth inflated the liquidity further in the banking
Dr. Arif Dowla
system, and both the deposit and lending rates maintained broadly a
downward trend during FY2020-21. Managing Director
Page 58 Annual Report 2020-2021
 Annexure-IV
[As per condition No. 1(5) (xxvi)]

DECLARATION BY CEO AND CFO

Date: 28 October 2021

The Board of Directors

ACI Limited

Subject: Declaration on Financial Statements for the year ended on 30 June 2021.

Dear Sirs,
Pursuant to the condition No. 1(5) (xxvi) imposed vide the Commission’s Notification No.
BSEC/CMRRCD/2006-158/207/Admin/80 dated 3 June 2018 under section 2CC of the Securities and Exchange
Ordinance, 1969, we do hereby declare that:
(1) The Financial Statements of ACI Limited for the year ended on 30 June 2021 have been prepared in
compliance with International Accounting Standards (IAS) or International Financial Reporting Standards
(IFRS), as applicable in the Bangladesh and any departure there from has been adequately disclosed;
(2) The estimates and judgments related to the financial statements were made on a prudent and reasonable
basis, in order for the financial statements to reveal a true and fair view;
(3) The form and substance of transactions and the Company’s state of affairs have been reasonably
and fairly presented in its financial statements;
(4) To ensure above, the Company has taken proper and adequate care in installing a system of internal
control and maintenance of accounting records;
(5) Our internal auditors have conducted periodic audits to provide reasonable assurance that the established
policies and procedures of the Company were consistently followed; and
(6) The management’s use of the going concern basis of accounting in preparing the financial statements is
appropriate and there exists no material uncertainty related to events or conditions that may
cast significant doubt on the Company’s ability to continue as a going concern.

In this regard, we also certify that: -

(i) We have reviewed the financial statements for the year ended on 30 June 2021 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 collectively present 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 in violation of the code of conduct for the company’s
Board of Directors or its members.

Sincerely yours,

Dr. Arif Dowla Pradip Kar Chowdhury

Managing Director Chief Financial Officer

Annual Report 2020-2021 Page 59

 Annexure-V
Status of Compliance 2020-21 with the Corporate Governance Code (CGC)
[As per condition No. (5) (xxvii)]
Status of compliance with the conditions imposed by the Commission’s Notification No. SEC/CMRRCD/2006-158/207/Admin/80 dated 3 June 2018
(Report under Condition No. 9)

Condition Status
Title Remarks
No. Complied Not Complied

1(1) The number of Board members shall not be less than 5 (five) There are 9
Complied
and more than 20 (twenty); Directors

1(2)(a) At least one-fifth (1/5) of the total number of directors shall be Two IDs in
Complied
Independent Directors (ID); the Board

1(2)(b)(i) IDs do not hold any share or holds less than 1% shares of the As declared
Complied
total paid-up shares of the Company; by the IDs

1(2)(b)(ii) ID is not a sponsor and not connected with any sponsor or director
or nominated director or shareholder or any of its associates,
sister concerns, subsidiaries and parents or holding entities who Complied - do -
holds one percent (1%) or more shares of the total paid-up shares
and his or her family members shall not hold above mentioned
shares;
1(2)(b)(iii) ID has not been an executive of the company in immediately
Complied - do -
preceding two financial years;

1(2)(b)(iv) ID does not have any pecuniary or otherwise relationship with the
Complied - do -
company or its subsidiary/associated companies;

1(2)(b)(v) ID is not a member or TREC holder, director or officer of any

Complied - do -
stock exchange;

1(2)(b)(vi) ID is not a shareholder, director excepting independent director

or officer of any member or TREC holder of stock exchange or Complied - do -
an intermediary of the capital market;

1(2)(b)(vii) ID is/was not a partner or an executive of company’s audit firms

engaged in Statutory Audit or Internal Audit or Special Audit Complied - do -
or Compliance Certification of the Codes during preceding three
years;
1(2)(b)(viii) ID shall not be independent director in more than five listed Complied - do -
companies;

1(2)(b)(ix) ID has not been convicted by a court of competent jurisdiction as

Complied - do -
a defaulter in payment of any loan or any advance to a bank or
NBFI;
1(2)(b)(x) ID has not been convicted for a criminal offence involving moral
Complied - do -
turpitude;

1(2)(c) Appointment of ID shall be done by Board and approved by Appointed

Complied
shareholders in the AGM; at AGM

1(2)(d) The position of IDs cannot remain vacant for more than ninety days. - No such case

1(2)(e) The tenure of office of an ID shall be for Three years, which may be
Complied
extended for One tenure only

1(3)(a) ID shall be a knowledgeable individual with integrity who is able

Complied As declared
to ensure compliance with financial, corporate laws,
by the IDs
regulatory requirements and can make meaningful contribution to
the business;

Page Annual Report 2020-

1(3)(b)(i) ID is a Business Leader who is/was a promoter or director of
an unlisted company having minimum paid-up capital of One
Hundred million or any listed company or a member of any Complied - do -
national or international chamber of commerce or business
association

Con

Annual Report 2020- Page

 Condition Status
Title Remarks
No. Complied Not Complied
1(3)(b)(ii) ID is/was a Corporate Leader as top level executive as adopted
by the code and a candidate with equivalent position of an
Complied - do -
unlisted company having minimum paid up capital of Tk. 100.00
million or of a listed company;

1(3)(b)(iii) ID was Former official of government in the position not below

5th Grade of the national pay scale and educational - N/A
background of bachelor degree in economics or commerce or
business or law;
1(3)(b)(iv) ID is/was University Teacher who has educational background in
- - do -
Economics or Commerce or Business Studies or Law;

1(3)(b)(v) ID is/was a professional or an advocate practicing in the HCD

of Bangladesh Supreme Court or a CA,CMA, CFA, CCA, CPA and - - do -
CS or equivalent qualification;

1(3)(c) The ID shall have at least Ten years of experiences in any field As declared
Complied
mentioned in clause (b); by the IDs

1(3)(d) Special cases for relaxing qualifications or experiences with prior

- N/A
approval of the Commission.

1(4)(a) Chairman of the Board and the Chief Executive Officer of the They
companies is different individuals having clearly defined their Complied are
respective roles and responsibilities by Board. different
individuals
1(4)(b) This MD and CEO of a listed Company shall not hold the same
Complied
position in another listed Company.

1(4)(c) Chairperson elected from among the non-executive directors of the He is a

Complied non-
company; executive
director
1(4)(d) The Board clearly defined respective roles for Chairman and the
Complied
Managing Director;

1(4)(e) In absence of Chairman, the remaining members may elect one No such
from non-executive directors as Chairperson for that particular - case in
the year
Board’s meeting;

1(5)(i) An industry outlook and possible future developments; Given in the

Complied Directors’
Report
1(5)(ii) Segment-wise or product-wise performance. Complied - do -
1(5)(iii) Risks and concerns including internal and external risk factors, threat
Complied - do -
to sustainability and negative impact on environment, if any;

1(5)(iv) A discussion on Cost of Goods sold, Gross Profit Margin and Net Profit
Complied - do -
Margin, where applicable;

1(5)(v) A discussion on continuity of any extraordinary activities and their

Complied - do -
implications (gain or loss);

1(5)(vi) A detailed discussion and statement on related party transactions;

Complied - do -

1(5)(vii) A statement of utilization of proceeds raised through public issues,

Complied - do -
rights issues and/or any other instruments;

1(5)(viii) An explanation if the financial results deteriorate after the company

goes for Initial Public Offering (IPO), Repeat Public Offering (RPO), Complied - do -
Rights Share Offer, Direct Listing, etc.;

1(5)(ix) An explanation on any significant variance between Quarterly

Complied - do -
Financial performances and Annual Financial Statements;

Page Annual Report 2020-

1(5)(x) A statement of Directors remuneration; Complied - do -

Con

Annual Report 2020- Page

 Condition Status
Title Remarks
No. Complied Not Complied

1(5)(xi) A statement on fair preparation of the financial statements by the

Complied - do -
management of the issuer company;

1(5)(xii) A statement that proper books of account of the issuer company

Complied - do -
have been maintained;

1(5)(xiii) A statement that appropriate accounting policies have been

consistently applied in the financial statements and that the Complied - do -
accounting estimates are based on reasonable and prudent
judgment;

1(5)(xiv) IAS / BAS / IFRS / BFRS, as applicable in Bangladesh, have been

followed in preparation of the financial statements and any Complied - do -
departure there-from has been adequately disclosed.

1(5)(xv) A statement that the system of internal control is sound in design

Complied - do -
and has been effectively implemented and monitored;

1(5)(xvi) A statement with regard to the protection of minority shareholders

Complied - do -
from abusive actions of controlling shareholders.

1(5)(xvii) A statement that there is no significant doubt upon the issuer

Complied - do -
company’s ability to continue as a going concern;

1(5)(xviii) An explanation that significant deviations from the last year’s

operating results of the issuer company shall be highlighted and the Complied - do -
reasons thereof shall be explained;

1(5)(xix) Key operating and financial data of at least preceding 5 (five) years
Complied - do -
shall be summarized;

1(5)(xx) An explanation on the reasons if the issuer company has not Dividend
-
declared dividend (cash or stock) for the year; declared

1(5)(xxi) Board’s statement to the effect that no bonus share or stock Given in the
Complied Directors’
dividend has been or shall be declared as interim dividend; Report
1(5)(xxii) The total number of Board meetings held during the year and
Complied - do -
attendance by each director;

1(5)(xxiii)(a) Parent / Subsidiary / Associated Companies and other related parties

Complied - do -
(name wise details); (i.e. Patterns of Shareholdings)

1(5)(xxiii)(b) Directors, Chief Executive Officer, Company Secretary, Chief

Financial Officer, Head of Internal Audit and their spouses and minor Complied - do -
children (name wise details);

1(5)(xxiii)(c) Executives; Complied - do -

1(5)(xxiii)(d) Shareholders holding ten percent (10%) or more voting interest in

Complied - do -
the company (name wise details).

1(5)(xxiv)(a) A brief resume of the director; Complied - do -

1(5)(xxiv)(b) Nature of expertise in specific functional areas; Complied - do -

1(5)(xxiv)(c) Names of companies in which the person also holds the directorship
Complied - do -
and membership of board committees;

A Management’s Discussion and Analysis signed by CEO or MD Complied - do -

1(5)(xxv)(a) Presenting detailed analysis of accounting policies and estimation for

Complied - do -
preparation of financial statements;

1(5)(xxv)(b) Presenting detailed analysis of changes in accounting policies and

estimation, if any; Complied - do -

Page Annual Report 2020-

Condition Status
Title Remarks
No. Complied Not Complied
1(5)(xxv)(c) Presenting detailed analysis of comparative analysis (including
effects of inflation) of financial performance or results and financial
Complied - do -
position as well as cash flows for current financial year with
immediate preceding five years explaining reasons thereof;

1(5)(xxv)(d) Presenting detailed analysis of compare such financial performance

or results and financial position as well as cash flows with the Complied
peer industry scenario;

1(5)(xxv)(e) Presenting detailed analysis of briefly explain the financial and

Complied - do -
economic scenario of the country and the globe;

1(5)(xxv)(f) Presenting detailed analysis of risks and concerns issues related

to the financial statements, explaining such risk and concerns Complied - do -
mitigation plan of the company;

1(5)(xxv)(g) Presenting detailed analysis of future plan or projection or

forecast for company’s operation, performance and financial
Complied - do -
position, with justification thereof, i.e., actual position shall be
explained to the shareholders in the next AGM;

1(5)(xxvi) Declaration or certification by the CEO and the CFO to the Board as
Complied - do -
required under condition No. 3(3) disclosed as per Annexure-A;

1(5)(xxvii) The report and compliance certificate disclosed as per Annexure-B

Complied - do -
and Annexure-C;

1(6) Conducting Board meetings and recording the minutes of the

meetings and keeping required books and records in line BSS as Complied
adopted by the ICSB;

1(7)(a) Code of conduct, based on the recommendation of the NRC for

the Chairman of the Board, other board members and Managing Complied
Director of the company;

1(7)(b) Code of conduct as determined by the NRC shall be posted on the

Complied
website of the company;

2(a) Composition of the Board of the subsidiary company; Complied

2(b) Independent director of the holding company on the Board of the

Complied
subsidiary company;

2(c) Review of minutes of the subsidiary company’s Board meeting by the

Complied
holding company’s Board;

2(d) The minutes of respective Board meeting of the holding company shall
Complied
state that they have reviewed the affairs of the subsidiary company

2(e) Review of financial statements of Subsidiary company by the Audit

Complied
Committee of the holding company;

3(1)(a) The Board shall appoint a MD or CEO, CS, CFO and HIAC; Complied
They are
3(1)(b) The positions of the MD or CEO, CS, CFO and HIAC shall be filled by different
Complied
different individuals; individuals

3(1)(c) The MD or CEO, CS, CFO and HIAC of a listed company shall not Taken up
Not Complied with
hold any executive position in any other company at the same time; authorities for
exemption
3(1)(d) Respective roles, responsibilities and duties of the CFO, the HIAC
Complied
and the CS;

3(1)(e) Removal of the MD or CEO, CS, CFO and HIAC with approval of the No such case
Board and immediate dissemination to BSEC and stock exchange(s); in the
Complied reporting year

Con

Annual Report 2020- Page

 Condition Status
Title Remarks
No. Complied Not Complied

3(2) The MD or CEO, CS, CFO and HIAC of the company shall attend the
Complied In practice
meetings of the Board;

3(3)(a)(i) Certification of CEO and CFO as to the review of financial Given in the
statements with declaration that there is no materially untrue Complied Directors’
and misleading statement; Report

3(3)(a)(ii) Certification of CEO and CFO as to the true and fair view of
the financial statements and affairs of the Company’s per Complied - do -
applicable laws;

3(3)(b) Certification of CEO and CFO that to the best of their knowledge and
Complied - do -
belief there was no fraudulent, illegal transactions during the year;

3(3)(c) The certification of the MD or CEO and CFO shall be disclosed in the
Complied - do -
Annual Report

4(i) Board Audit Committee (BAC) Complied

4(ii) Nomination and Remuneration Committee Complied

5(1)(a) BAC as a sub-committee of the Board; Complied

5(1)(b) BAC shall assist the Board of Directors as to the the financial
statements reflect true and fair view of the state of affairs of the Complied
company;

5(1)(c) BAC is responsible to the Board. The duties of the BAC is clearly set
Complied
forth in writing.
There are
5(2)(a) BAC is composed of 3 (three) members. Complied 3 members
5(2)(b) The Board appointed members of BAC who are non-executive
Complied
directors and Chairperson is an ID.

5(2)(c) All members of BAC are “financially literate” and 1 (one) member
have accounting or related financial management background Complied
and 10 (ten) years of such experience;

5(2)(d) Filling of casual vacancy in the BAC. Complied

5(2)(e) The CS shall act as the Secretary of the Committee. Complied In practice

5(2)(f) The quorum of the BAC meeting have not constitute without ID Complied

5(3)(a) The Board of Directors select 1 (one) ID as the Chairman of BAC; Complied

5(3)(b) Election of Chairman of the particular meeting in absence of regular No such

Chairperson of BAC recording the reasons of such absence in the - case in
minutes. the year

5(3)(c) Chairman of the BAC shall remain present in the AGM. Complied

Complied 4 meetings
5(4)(a) BAC conducted four meetings in the financial year: held
5(4)(b) The quorum of the meeting of BAC constituted in presence of either
two members including ID or two third of the members, Complied
whichever was higher;
Performed as per
5(5)(a) Oversee the financial reporting process. Complied BSEC Guideline
5(5)(b) Monitor choice of accounting policies and principles. Complied - do -
5(5)(c) Monitor Internal Audit and Compliance process to ensure that it is
Complied - do -
adequately resourced;

5(5)(d) Oversee hiring and performance of external auditors; Complied - do -

Page Annual Report 2020-

 Con

Annual Report 2020- Page

Condition Status
Title Remarks
No. Complied Not Complied
55(5)(f) Review with the management, the annual financial
Complied - do -
statements before submission to the Board for approval;

5(5)(g) Review with the management, the quarterly and half yearly financial
Complied - do -
statements before submission to the Board for approval;

5(5)(h) Review the adequacy of internal audit function; Complied - do -

5(5)(i) Review the Management’s Discussion and Analysis before disclosing

Complied - do -
in the Annual Report;

5(5)(j) Review statement of all related party transactions submitted by the

Complied - do -
management;

5(5)(k) Review Management Letters or Letter of Internal Control weakness

Complied - do -
issued by statutory auditors;

5(5)(l) Oversee the determination of audit fees based on scope and

magnitude, level of expertise deployed and time required for Complied - do -
effective audit and evaluate the performance of external
auditors;
5(5)(m) Oversee whether the proceeds raised IPO or RPO or Rights Share
Offer have been utilized per the purposes stated in relevant offer - N/A
document or prospectus approved by the Commission;

5(6)(a)(i) The BAC shall report on its activities to the Board. Complied

5(6)(a)(ii)(a) The BAC shall immediately report to the Board if any report on No such
- case
conflicts of interests in the year
5(6)(a)(ii)(b) The BAC shall immediately report to the Board if any suspected
or presumed fraud or irregularity or material defect identified in - - do -
the internal audit and compliance process or in the financial
statements;

5(6)(a)(ii)(c) The BAC shall immediately report to the Board if any

suspected infringement of laws, regulatory compliances including - - do -
securities related laws, rules and regulations

5(6)(a)(ii)(d) The BAC shall immediately report to the Board if any other matter
- - do -
which the Audit Committee deems necessary.

5(6)(b) If any material impact on the financial condition and results of

- - do -
operation, unreasonably ignored by the management

5(7) Reporting to the Shareholders and General Investors Report of

Complied AC given in
the AR

6(1)(a) Nomination and Remuneration Committee (NRC) as a sub-committee

Complied
of the Board;

6(1)(b) The NRC shall assist the Board in formulation of the

nomination criteria or policy for determining qualifications, Performed
positive attributes, experiences and independence of directors Complied as per
BSEC
and top level executive as well as a policy for formal process of
Guideline
considering remuneration of directors, top level executive;

6(1)(c) ToR of the NRC shall be clearly set forth in writing covering the areas
Complied - do -
stated at the condition No. 6(5) (b).

6(2)(a) The Committee shall comprise of at least three members

Complied - do -
including an independent director;

6(2)(b) All members of the Committee shall be non-executive directors.

Complied - do -

Con

Annual Report 2020- Page

 Condition Status
Title Remarks
No. Complied Not Complied

6(2)(c) Members of the Committee shall be nominated and appointed by the

Complied - do -
Board
6(2)(d) The Board shall have authority to remove and appoint any member
of the Committee Complied

6(2)(e) In case of death, resignation, disqualification, or removal of No such

any member of the Committee or in any other cases of - case in the
vacancies, the board shall fill the vacancy within 180 (one hundred reporting
eighty) days of occurring such vacancy in the Committee; year
6(2)(f) The Chairperson of the Committee may appoint or co-opt any
external expert and/or member(s) of staff to the Committee
as advisor who shall be non-voting member, if the Chairperson - - do -
feels that advice or suggestion from such external expert
and/or member(s) of staff shall be required or valuable for the
Committee;
6(2)(g) The company secretary shall act as the secretary of the Committee. Complied In practice
6(2)(h) The quorum of the NRC meeting shall not constitute without
Complied
attendance of at least an independent director
6(2)(i) No member of the NRC shall receive, either directly or indirectly, any
remuneration for any advisory or consultancy role or Complied
otherwise, other than Director’s fees or honorarium from the
company
6(3)(a) The Board shall select 1 (one) member of the NRC to be Chairperson Complied
of the Committee, who shall be an independent director
6(3)(b) In the absence of the Chairperson of the NRC, the remaining No such
members may elect one of themselves as Chairperson for case in the
-
that particular meeting, the reason of absence of the regular reporting
Chairperson shall be duly recorded in the minutes year
6(3)(c) The Chairperson of the NRC shall attend the annual general meeting
Complied
(AGM) to answer the queries of the shareholders
6(4)(a) The NRC shall conduct at least one meeting in a financial year. Complied
6(4)(b) The Chairperson of the NRC may convene any emergency meeting No such case
- in the year
upon request by any member of the NRC
6(4)(c) The quorum of the meeting of the NRC shall be constituted in
presence of either two members or two third of the members of the Complied
Committee, whichever is higher, where presence of an independent
director is must as required under condition No. 6(2)(h);
6(4)(d) The proceedings of each meeting of the NRC shall duly be
recorded in the minutes and such minutes shall be confirmed Complied
in the next meeting of the NRC;
6(5)(a) NRC shall be independent and responsible or accountable to the NRC performs
Complied as per BSEC
Board and to the shareholders; Guideline
6(5)(b)(i)(a) NRC shall oversee, formulate & recommend to the Board regarding
the level and composition of remuneration is reasonable and Complied - do -
sufficient to attract, retain and motivate suitable directors to run the
company successfully;
6(5)(b)(i)(b) NRC shall oversee, formulate & recommend to the Board regarding
the relationship of remuneration to performance is clear and meets Complied - do -
appropriate performance benchmarks;
6(5)(b)(i)(c) NRC shall oversee, formulate & recommend to the Board regarding
remuneration to directors, top level executive involves a balance
between fixed and incentive pay reflecting short and long- Complied - do -
term performance objectives appropriate to the working of the
company and its goals;
6(5)(b)(ii) NRC shall oversee & make report with recommendation to the Board
regarding devising a policy on Board’s diversity taking into
consideration age, gender, experience, ethnicity, educational
Page Annual Report 2020-
 Con

Annual Report 2020- Page

Condition Status
Title Remarks
No. Complied Not Complied
6(5)(b)(iii) NRC shall oversee & make report with recommendation to the Board
regarding identifying persons who are qualified to become directors
Complied - do -
and who may be appointed in top level executive position in
accordance with the criteria laid down, and recommend their
appointment and removal to the Board;
6(5)(b)(iv) NRC shall oversee & make report with recommendation to the Board
regarding formulating the criteria for evaluation of performance Complied - do -
of independent directors and the Board;
6(5)(b)(v) NRC shall oversee & make report with recommendation to the Board
regarding identifying the company’s needs for employees at different Complied - do -
levels and determine their selection, transfer or replacement and
promotion criteria;
6(5)(b)(vi) NRC shall oversee & make report with recommendation to the Board
regarding developing, recommending and reviewing annually the Complied - do -
company’s human resources and training policies;
6(5)(c) The company shall disclose the nomination and remuneration policy
and the evaluation criteria and activities of NRC during the year at a Given
Complied
glance in its annual report; in the
Annual
The issuer Company shall not engage its external or statutory Report
auditors -
7(1)(i) - to perform the appraisal or valuation services or fairness opinions As declared
Complied
of the company. by Auditors
7(1)(ii) - to perform the financial information systems design and
Complied - do -
implementation of the company.
7(1)(iii) - to perform book-keeping or other services related to the Complied - do -
accounting records or financial statements of the company.
7(1)(iv) - to perform broker-dealer services of the company. Complied - do -
7(1)(v) - to perform actuarial services of the company. Complied - do -
7(1)(vi) - to perform internal audit services or special audit services of the Complied - do -
company.
7(1)(vii) - to perform any service that the Audit Committee determines of the
Complied - do -
company.
7(1)(viii) - to perform audit or certification services on compliance of
corporate governance as required under condition No. 9(1) of the Complied - do -
company.
7(1)(ix) - to perform any other service that creates conflict of interest of the
Complied - do -
company.
7(2) No partner or employees of the external audit firms shall possess
any share of the company they audit at least during the tenure of Complied - do -
their audit assignment of that company; his or her family members
also shall not hold any shares in the said company;
7(3) Representative of external or statutory auditors shall remain present in
the Shareholders’ Meeting (Annual General Meeting or Extraordinary Complied
General Meeting) to answer the queries of the shareholders;
8(1) The company shall have an official website linked with the website of
Complied
the stock exchange;
8(2) The company shall keep the website functional from the date of listing; Complied
8(3) The company shall make available the detailed disclosures on its
website as required under the listing regulations of the concerned Complied
stock exchange(s) ;
9(1) Compliance Audit certification and its disclosure in the Annual Report; Complied Given in AR
9(2) Compliance certification professional shall be appointed by Appointed
Complied at AGM
the shareholders in the AGM;
9(3) The directors of the company shall state, in accordance with Given
the Annexure-C attached, in the directors’ report whether the Complied in the
company has complied with these conditions or not; Annual
Report

Page Annual Report 2020-

 Annexure-VI

Business Office :
House # 412, Apartment: 8 Phones : 01730 340 340
Road: 8, Block: D g-mail : muktadir@muqtadirbd.com
Bashundhara R/A, Dhaka - 1229 e-mails :
Bangladesh akamuqtadir@gmail.com VAT
Reg : 19041063900
BIN No : 000179575-0202

Report to the Shareholders of

Advanced Chemical Industries Limited (ACI)
on compliance with the Corporate Governance Code
[As required under code 1(5) (xxvii) of the BSEC Code of Corporate Governance]

We have examined the compliance status to the Corporate Governance Code by

Advanced Chemical Industries Limited for the year ended on 30th June 2021. This
code relates to the gazette notification no: BSEC/CMRRCD/2006-158/207/Admin/80 dated
the 3rd June 2018 of Bangladesh Securities and Exchange Commission (BSEC).
Such compliance with the Corporate Governance Code 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 Code.
This is a scrutiny and verification and an independent audit on compliance of the conditions
of Corporate Governance as well as provisions of the relevant Bangladesh Secretarial
Standards (BSS) as adopted by the Institute of Chartered Secretaries of
Bangladesh (ICSB) in so far as those standards are not inconsistent with any condition of
the Corporate Governance Code.
We state that we have obtained all the information and explanations or
representations, which we have required, and after due scrutiny and verification thereof,
we report that in our opinion and subject to the remarks and observations as reported
in the connected Compliance Statement :
(a) The Company has complied with the conditions of Corporate Governance as stipulated
in the above mentioned Corporate Governance Code issued by the Commission,
with the exception of code: 3(1)(c) which has not been complied. The Company's
appeal for exemption in this respect was still to be decided by the Regulator.
(b) The Company has complied with the provisions of the relevant Bangladesh Secretarial
Standards (BSS) as adopted by the Institute of Chartered Secretaries of
Bangladesh (ICSB) as required by this Code.
(c) Proper books and records have been kept by the Company as required under
the Companies Act 1994, the securities laws and other relevant laws, and
(d) The standard of governance in the Company is somewhat satisfactory.

This report, however, is no endorsement about quality of contents in the Annual Report of
the Company for the year 2020-21.

Chartered Secretaries & Consultants

A.K.A Muqtadir FCS

Dhaka, November 10, 2021 CEO & Chief Consultant
Con

Annual Report 2020- Page

 Advanced Chemical Industries Limited

Auditor's Report & Audited

Financial Statements
for the year ended 30 June 2021

Annual Report 2020-2021 Page 69

Page Annual Report 2020-
 INDEPENDENT AUDITOR'S REPORT
to the Shareholders of
Advanced Chemical Industries Limited
Report on the Audit of the Consolidated and Separate Financial Statements
Opinion

We have audited the consolidated financial statements of Advanced Chemical Industries Limited and its
subsidiaries (the “Group”) as well as the separate financial statements of Advanced Chemical Industries
Limited (the “Company”), which comprise the consolidated and separate statements of financial position as at
30 June 2021, and the consolidated and separate statements of profit or loss and other comprehensive
income, consolidated and separate statements of changes in equity and consolidated and separate
statements of cash flows for the year then ended, and notes to the consolidated and separate financial
statements, including a summary of significant accounting policies.
In our opinion, the accompanying consolidated and separate financial statements give true and fair view of
the consolidated financial position of the Group and the separate financial position of the Company as at 30
June 2021, and of its consolidated and separate financial performance and its consolidated and separate cash
flows for the year then ended in accordance with the International Financial Reporting Standards (IFRSs).

Basis for Opinion

We conducted our audit in accordance with the International Standards on Auditing (ISAs). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of
the Consolidated and Separate Financial Statements section of our report. We are independent of the Group
and the Company in accordance with the International Ethics Standards Board for Accountants’ Code of
Ethics for Professional Accountants (IESBA Code) and we have fulfilled our ethical responsibilities in
accordance with the IESBA Code and the Institute of Chartered Accountants of Bangladesh (ICAB) By-Laws.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit
of the consolidated and separate financial statements of the current period. These matters were addressed in
the context of our audit of the consolidated and separate financial statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on these matters.
Key audit matters for the audit of financial statements are as under:

Property, plant and equipment (PPE)

PPE includes the Group’s and the Company’s long term assets, which flow economic benefits to the entities more
than one year. PPE is measured at cost or revaluation less accumulated depreciation. The items of PPE excluding
leased assets & under-construction assets were revalued by the professional valuer in 2021.

Page Annual Report 2020-

 A. WAHAB & CO.
Chartered Accountants

The carrying value of PPE represents significant portion of total assets, which is amounting to Tk. 12,960
million and 29,822 million respectively for the Company and the Group at the reporting date. In other words,
for both the Company and the Group, approximately 26% and 41% of total assets are represented by PPE.
Therefore, it has been considered as a significant area of auditor’s judgment. It is a matter of consideration
that the carrying value of PPE may be higher than the recoverable amount and the impairment thereon
may not have been recognized.

Audit procedure performed to address the key audit matter

We have tested the design and operating effectiveness of key controls over PPE. Our audit procedures
included, among others, considering the impairment risk of the assets. Followings are our audit
procedures on the carrying value and impairment risk of PPE:

• Reviewing basis of recognition, measurement and valuation of assets;

• Review of procedures of assets acquisition, depreciation and disposal;
• Checking ownership of the major assets;
• Checking the Capital-Work-in-Progress (CWIP) and its transfer to PPE;
• Performing due verification on sample basis;
• Evaluating the Group’s assumptions to identify if there is any requirement of recognition of impairment;
• Checking fixed asset register of the company, performing test check of depreciation calculation, checking
fixed assets schedule and books of accounts maintained by the company; and
• Finally, assessing the appropriateness and presentation of disclosures in line with relevant accounting
standards.
Our testing did not identify any issues with regard to PPE and related depreciation.

Investments in subsidiaries, associates and JVs of the Company and its impairment

The Company has investments amounting to Taka 3,140 million on 30 June 2021 held at cost less impairment
that represents 6.33% of the Company’s total assets. Some of the subsidiaries have incurred losses
during the year under audit specifically, ACI Logistics Limited (Tk. 1,420,149,937), ACI Healthcare
Limited (Tk. 1,722,614,981), ACI Foods Limited (Tk. 42,530,421), Infolytx Bangladesh Limited (Tk.
135,837,921), ACI Chemicals Limited (Tk. 33,080,441), ACI AgroLink Limited (Tk. 68,209,565),
Premiaflex Plastics Limited (Tk. 111,038,160), ACI Marine and Riverine Technologies Limited (Tk.
2,610,651), and ACI Biotech Limited (Tk. 367,692) and also having negative operational cash flows. The
component auditors have given emphasis of matter on going concern issue of ACI Logistic Ltd and ACI Health
Care Limited without modifying audit opinion.
The Company has completed a Strategic Review and as a result, has decided to keep Investment Impairment
Provision only for ACI Logistic. It is, therefore a matter of consideration whether the judgment of the
management with regard to impairment is reasonable or not.

Audit procedure performed to address the key audit matter

We have tested the design of control over the review of the investment impairment analysis. Our audit
procedures included, among others, considering the impairment risk associated with the investments.
Followings are our audit procedures on the carrying value and impairment risk of investments:

Annual Report 2020- Page

 A. WAHAB & CO.
Chartered Accountants

• Gained an understanding on management expectation on recoverability of investment;

• Comparing the carrying amount of investments with the relevant subsidiaries, associates and JVs’ financial
statements to identify whether their net assets, being an approximation of their minimum
recoverable amount, were in excess of their carrying amount and assessing whether those subsidiaries,
associates and JVs have historically been profit-making;
• Reviewing the Management’s analysis of impairment assessment;
• Checking mathematical accuracy of the model, reviewing inputs used in the determination of assumptions
within the model and corroborating information obtained with reference to external market information,
third-party sources where applicable;
• Reviewing the audit reports issued by the components’ auditors; and
• Considering the adequacy of the Company’s disclosures against relevant accounting standards.
Our testing did not identify any major issues with regard to investments in subsidiaries, associates and JVs of
the Company.

Inter-company receivables

The carrying value of the inter-company receivables of the Company was Tk. 20,142 million as at 30 June
2021 representing 40.6% of total assets of the Company. During our audit of the financial statements of
the Company, we have identified the recoverable value of the Company’s inter-company receivable stated at
cost. Therefore, it is a matter of consideration whether those receivables have been misstated due to non-
recognition of transactions at the counter part.

Audit procedure performed to address the key audit matter

We assessed the processes and controls put in place by the Company over inter-company transactions. We have
obtained an understanding that inter-company balances are operated under normal course of business
maintaining a common policy of charging interest to ensure efficient fund management and optimise effective
borrowing cost at group level. The Group charge interest on intercompany balances using monthly weighted
average cost of borrowings as applicable from time to time. Interest amount has been duly recognised
in statement of profit or loss in compliance with applicable financial reporting standards.
Our substantive procedures in relation to the inter-company receivables comprise the followings:
• Understanding and analyzing the nature and reasons for inter-company transactions;
• Obtained GL details and reviewing the financial statements of subsidiaries;
• Checking the transactions between the Group entities on sample basis;
• Obtaining confirmations from the group entities at the reporting date on the closing balances of
inter-company receivable and its reconciliation where necessary;
• Performing impairment test on the inter-company balances and independent review on the key indicators
including trend of profitability, operating cash flows, and history of inter-company transactions etc.;
• Checking basis of charging of interest on intercompany receivables.
• Checking calculation of interest on the balances of inter-company receivables on test basis and recording
in the books of accounts.
• Obtained letter issued by BSEC on withdrawal of restriction on intercompany loans. The BSEC has decided to
consider inter-company loan of ACI Limited as the vertical extension of the Group subject to compliance of
all the securities related laws.
• Assessing the appropriateness and presentation of disclosures against relevant accounting standards.
Our testing did not identify any major issues with regard to inter-company receivables at the reporting date.

Page Annual Report 2020-

 A. WAHAB & CO.
Chartered Accountants

Short-term loan and Bank overdraft (“Loans”)

At reporting date, the position of loans and bank overdraft remained amounting to Tk. 18,750 million and Tk.
38,060 million respectively for the Company and the Group. In other words, approximately 61% and 62% of
total liabilities respectively for the Company and the Group are represented by loans and bank
overdraft. Evidently, the Company is using loans to operate the business and also, to acquire non-
current assets. Therefore, it has been considered as key audit area.

Audit procedure performed to address the key audit matter

We obtained an understanding, evaluated the design and tested the operational effectiveness of the Company’s
key controls over the loans.
Our audit procedures included, among others, the followings:
• Obtained loan statements and facility offer letters to review terms, debt covenants, interest rates and
other conditions associated with the loans.
• Obtained external confirmation of the bank to ensure accuracy of the figures reported.
• Checked interest calculation on test basis.
• Checked whether there is any overdue payments and penal interests.
• Checked the adjustments or repayments of loans through bank statements as per repayment schedule.
Our audit procedures did not identify any issues with regard to the loans.

Revenue Recognition
At year end, the Company reported total revenue of Tk. 25,730 million and the Group, as a whole, reported
total revenue of Tk. 80,748 million. Revenue is recognized when the performance obligation is satisfied
by transferring goods or services to a customer, either at a point in time or over time. Goods or services
are “transferred” when the customer obtains control of it. Furthermore, revenue is measured at net of
trade discounts, markdown adjustment, returns and allowances. It is a matter of concern that revenue
may be misstated due to recognition of sales transaction before performance obligation being satisfied

Audit procedure performed to address the key audit matter

Our audit procedures in relation to the revenue recognition comprises the followings:
• Observing and evaluating whether proper segregation of duties put in place;
• Checking business segment wise sales revenue reported in the financial statements with trial balance
• Preparing work flow of sales process for different business unit.
• Obtaining month wise breakdown of sales per business unit.
• Months were selected on random basis and GL obtained to select transactions for substantive testing,
• Examining samples of sales invoices for evidence of proper credit approval by the appropriate personnel and
application controls for credit limits.
• Comparing prices and terms on samples of sales invoices to the price list.
• Checking invoice raised at the year end and delivery of goods with acknowledgement of customer to
ensure that cut off principle has been properly applied.
• Assessing revenue recognition accounting policies by comparison with IFRS 15.
• Testing the effectiveness of the controls over the calculation of discounts.
• Assessing manual journals made to revenue to identify unusual or irregular items; and
• Finally, assessing the appropriateness and presentation of disclosures against relevant accounting standards.
Our testing did not identify any issues with regard to revenue.

Annual Report 2020- Page

 A. WAHAB & CO.
Chartered Accountants

Other Matter
The financial statements of fourteen subsidiaries, two joint ventures and three associates as disclosed in the
notes 45 to these financial statements were audited by other auditors who expressed unmodified opinions on
those financial statements as on 30 June 2021.

Other Information

Management is responsible for the other information. The other information comprises all of the information in
the Annual Report but does not include the financial statements and our auditors’ report thereon.
Our opinion on the consolidated and separate financial statements does not cover the other information and
we do not express any form of assurance conclusion thereon.
In connection with our audit of the consolidated and separate financial statements, our responsibility is to
read the other information and, in doing so, consider whether the other information is materially inconsistent with
the consolidated and separate financial statements or our knowledge obtained in the audit or otherwise
appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the Consolidated
and Separate Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated and separate financial
statements in accordance with IFRSs, the Companies Act, 1994, the Securities and Exchange Rules, 1987 and
other applicable laws and regulations and for such internal control as management determines is necessary to
enable the preparation of consolidated and separate financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the consolidated and separate financial statements, management is responsible for assessing the
Group’s and the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to
going concern and using the going concern basis of accounting unless management either intends to liquidate
the Group and the Company or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group’s and the Company’s financial
reporting process.

Auditor’s Responsibilities for the Audit of the Consolidated and Separate Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated and separate
financial statements as a whole are free from material misstatement, whether due to fraud or error, and
to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of these consolidated and separate financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:

Page Annual Report 2020-

 A. WAHAB & CO.
Chartered Accountants

• Identify and assess the risks of material misstatement of the consolidated and separate financial
statements, whether due to fraud or error, design and perform audit procedures responsive to those risks,
and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.
• Obtain an understanding of internal control relevant to the audit 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 Group’s and the Company’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Group’s and the Company’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
auditor’s report to the related disclosures in the consolidated and separate financial statements or, if
such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s report. However, future events or conditions may cause the
Group and the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated and separate financial
statements, including the disclosures, and whether the consolidated and separate financial
statements represent the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the consolidated and separate financial statements.
We are responsible for the direction, supervision and performance of the Group and the Company audit.
We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that
may reasonably be thought to bear on our independence, and where applicable, related safeguards.

Annual Report 2020- Page

 A. WAHAB & CO.
Chartered Accountants

From the matters communicated with those charged with governance, we determine those matters that were
of most significance in the audit of the consolidated and separate financial statements of the current period and are
therefore the key audit matters. We describe these matters in our auditors’ report unless law or
regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse consequences of
doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on other Legal and Regulatory Requirements

In accordance with the Companies Act, 1994 and the Securities and Exchange Rules, 1987 and relevant
notifications issued by Bangladesh Securities and Exchange Commission, 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 Group and the
Company so far as it appeared from our examination of these books;
c) the consolidated and the separate statements of financial position and statements of profit or loss and
other comprehensive income along with the annexed notes 1 to 45 dealt with by the report are in
agreement with the books of account; and
d) the expenditure incurred was for the purposes of the Group's and the Company’s business.

For A. WAHAB & CO.

CHARTERED ACCOUNTANTS

Dhaka, 28 October 2021 Kazi Md. Mahboob Kasem, FCA

Partner
Enrolment No: 845
DVC: 2111040845AS643373

Page Annual Report 2020-

Advanced Chemical Industries Limited
Statement of Financial Position

In Taka Note 30 June 2021 30 June 2020

Assets
Property, plant and equipment 8 12,960,524,391 10,664,953,300
Right-of-use assets 9 506,002,819 499,939,927
Investments 10 3,139,924,178 2,950,640,117
Intangible assets 11 2,806,963 3,785,456
Biological assets 12 17,778,109 10,914,869
Deferred tax assets 23 88,780,615 214,067,035
Non-current assets 16,715,817,075 14,344,300,704
Inventories 13 6,773,319,558 4,976,119,509
Trade receivables 14 2,910,514,412 3,881,479,422
Other receivables 15 543,148,332 374,562,251
Inter-company receivables 16 20,142,238,769 19,146,539,217
Advances, deposits and prepayments 17 847,270,802 743,851,475
Cash and cash equivalents 18 1,672,219,768 787,826,245
Current assets 32,888,711,641 29,910,378,119
Total assets 49,604,528,716 44,254,678,823
Equity
Share capital 19 631,102,500 573,729,555
Share premium 402,310,367 402,310,367
Reserves 20 5,165,967,572 3,511,867,965
Retained earnings 12,693,654,845 10,933,326,291
Total equity 18,893,035,284 15,421,234,178
Liabilities
Employee benefits 21 1,123,745,409 1,081,292,596
Long term bank loan 22 1,044,719,565 571,815,927
Lease liabilities 9 378,647,480 388,549,474
Non-current liabilities 2,547,112,454 2,041,657,997
Bank overdraft 24 1,681,372,914 2,502,962,921
Loans and borrowings 25 17,068,609,497 12,134,376,165
Lease liabilities-current portion 9 175,644,292 141,728,247
Trade payables 26 1,371,346,761 1,497,795,622
Other payables 27 3,071,295,827 2,972,664,738
Unclaimed dividend account 28 118,208,225 160,950,794
Inter-company payables 29 4,269,065,083 6,838,688,727
Current tax liabilities 30 408,838,379 542,619,434
Current liabilities 28,164,380,978 26,791,786,648
Total liabilities 30,711,493,432 28,833,444,645
Total equity and liabilities 49,604,528,716 44,254,678,823
Net Asset Value (NAV) per share 37.3 299.37 244.35

The annexed notes 1 to 45 form an integral part of these financial statements.

Dr. Arif Dowla Kamran Tanvirur Rahman Mohammad Mostafizur Rahman

Managing Director Director Company Secretary
As per our report of same date.

(A. WAHAB & CO.)

Chartered Accountants
Dhaka, 28 October 2021 Kazi Md. Mahboob Kasem, FCA
Partner
Enrolment No: 845
DVC: 2111040845AS643373

Annual Report 2020- Page

 Advanced Chemical Industries Limited
Statement of Profit or Loss

For the year For the year

ended ended
In Taka Note 30 June 2021 30 June 2020

Revenue 31
25,730,275,822 23,201,977,018
Cost of sales 32
(14,358,293,150) (12,496,872,476)
Gross profit
11,371,982,672 10,705,104,542
Administrative, selling and distribution expenses 33
(8,346,599,497) (7,966,492,864)
Other income 34
518,248,791 482,198,559
Operating profit
3,543,631,966 3,220,810,237
Net finance costs 35
(294,475,492) (750,563,708)
Profit before contribution to WPPF
3,249,156,474 2,470,246,529
Contribution to WPPF 27.1
(162,457,824) (123,512,326)
Profit before tax
3,086,698,650 2,346,734,203
Income tax expense 36
Current tax expense
(774,358,844) (741,842,330)
Deferred tax income/(expense)
(24,556,667) 114,028,061
(798,915,511) (627,814,269)
Profit after tax
2,287,783,139 1,718,919,934

Earnings per share 37.1

Basic and diluted earnings per share
36.25 27.24

The annexed notes 1 to 45 form an integral part of these financial statements.

Dr. Arif Dowla Kamran Tanvirur Rahman Mohammad Mostafizur Rahman

Managing Director Director Company Secretary
As per our report of same date.

(A. WAHAB & CO.)

Chartered Accountants
Dhaka, 28 October 2021 Kazi Md. Mahboob Kasem, FCA
Partner
Enrolment No: 845
DVC: 2111040845AS643373

Page 78 Annual Report 2020-2021

Advanced Chemical Industries Limited
Statement of Profit or Loss and other Comprehensive Income

For the year For the year

ended ended
In Taka Note 30 June 2021 30 June 2020

Profit after tax

2,287,783,139 1,718,919,934

Other comprehensive income

Items that will not be reclassified to profit or loss

Remeasurement of defined benefit plan 21.1
(14,320,000) -
Related tax
3,222,000 -
(11,098,000) -
Change in fair value of FVOCI financial assets 20.1
20,440,061 (134,720,938)
Related tax
(2,044,006) 13,472,094
18,396,055 (121,248,844)
Revaluation surplus on property, plant and equipment 8
1,737,611,301 -
Related tax
(101,907,748) -
1,635,703,553 -
Other comprehensive income, net of tax
1,643,001,608 (121,248,844)

Total comprehensive income

3,930,784,747 1,597,671,090

The annexed notes 1 to 45 form an integral part of these financial statements.

Dr. Arif Dowla Kamran Tanvirur Rahman Mohammad Mostafizur Rahman

Managing Director Director Company Secretary
As per our report of same date.

(A. WAHAB & CO.)

Chartered Accountants
Dhaka, 28 October 2021 Kazi Md. Mahboob Kasem, FCA
Partner
Enrolment No: 845
DVC: 2111040845AS643373

Annual Report 2020- Page

 Advanced Chemical Industries
Page 80

Limited
Statement of Changes in Equity
Annual Report 2020-2021

For the year ended 30 June 2021

Share Share Capital FVOCI Revaluation Retained Total
In Taka capital premium reserve reserve reserve earnings equity
Balance at 1 July 2020 573,729,555 402,310,367 1,671,386 434,655,631 3,075,540,948 10,933,326,291 15,421,234,178
Total comprehensive income
Profit after tax - - - - - 2,287,783,139 2,287,783,139
Other comprehensive income - net of tax - - - 18,396,055 1,635,703,553 (11,098,000) 1,643,001,608
Total comprehensive income - - - 18,396,055 1,635,703,553 2,276,685,139 3,930,784,747
Transactions with owners of the Company
Contributions and distributions
Issuance of bonus shares for the year 2019-2020 57,372,945 - - - - (57,372,945) -
Cash dividend for the year 2019-2020 - - - - - (458,983,640) (458,983,640)
Total contributions and distributions 57,372,945 - - - - (516,356,585) (458,983,640)
Total transactions with owners of the Company 57,372,945 - - - - (516,356,585) (458,983,640)
Transactions recognised directly in equity
Realisation of revaluation reserve - - - - - - -
Total transactions recognised directly in equity - - - - - - -
Balance at 30 June 2021 631,102,500 402,310,367 1,671,386 453,051,685 4,711,244,501 12,693,654,845 18,893,035,284

For the year ended 30 June 2020

Share Share Capital FVOCI Revaluation Retained Total
In Taka capital premium reserve reserve reserve earnings equity

Balance at 1 July 2019 498,895,265 402,310,367 1,671,386 555,904,475 3,075,540,948 9,788,135,912 14,322,458,353
Total comprehensive income
Profit after tax - - - - - 1,718,919,934 1,718,919,934
Other comprehensive income - net of tax - - - (121,248,844) - - (121,248,844)
Total comprehensive income - - - (121,248,844) - 1,718,919,934 1,597,671,090
Transactions with owners of the Company
Contributions and distributions
Issuance of bonus shares for the year 2018-2019 74,834,290 - - - - (74,834,290) -
Cash dividend for the year 2018-2019 - - - - - (498,895,265) (498,895,265)
Total contributions and distributions 74,834,290 - - - - (573,729,555) (498,895,265)
Total transactions with owners of the Company 74,834,290 - - - - (573,729,555) (498,895,265)
Transactions recognised directly in equity
Realisation of revaluation reserve - - - - - - -
Total transactions recognised directly in equity - - - - - - -
Balance at 30 June 2020 573,729,555 402,310,367 1,671,386 434,655,631 3,075,540,948 10,933,326,291 15,421,234,178

The annexed notes 1 to 45 form an integral part of these financial statements.

Advanced Chemical Industries Limited
Statement of Cash Flows

For the year For the year

ended ended
In Taka Note 30 June 2021 30 June 2020
Restated
Cash flows from operating activities
Cash receipts from customers and others 26,353,438,741 24,359,978,450
Cash paid to suppliers and employees (23,833,952,984) (18,511,494,596)
Cash generated from operating activities 2,519,485,757 5,848,483,854

Paid to WPPF
(70,766,042) (72,377,861)
Interest paid
(249,907,794) (704,190,860)
Income tax paid
(908,139,899) (579,892,952)
(1,228,813,735) (1,356,461,673)
Net cash (used in)/generated from operating activities* 18.3
1,290,672,022 4,492,022,181

Cash flows from investing activities

Acquisition of property, plant and equipment
(218,115,082) (200,382,021)
Payments for capital work in progress
(884,948,792) (1,089,726,837)
Sale proceeds from property, plant and
85,896,091 5,554,245
equipment Purchase of biological assets
(6,548,243) -
Dividend received
442,727,703 386,787,273
Investment
(168,844,000) (440,730,818)
Net cash (used in)/generated from investing activities
(749,832,323) (1,338,498,158)

Cash flows from financing

activities Inter-company debts
(3,565,323,196) (1,931,879,784)
received/(paid) Dividends paid
(501,726,209) (439,397,155)
Payment for lease obligation
(174,943,735) (168,623,769)
Short-term bank loan
4,987,920,754 (722,720,812)
received/(paid) Long-term bank loan
419,216,216 33,660,411
received/(paid)
1,165,143,830 (3,228,961,109)
Net cash (used in)/generated from financing activities

Net increase/(decrease) in cash and cash

1,705,983,530 (75,437,086)
equivalents Opening cash and cash equivalents
(1,715,136,676) (1,640,287,611)
Effect of movements in exchange rate on cash held
- 588,022
Closing cash and cash equivalents at reporting date
(9,153,146) (1,715,136,676)

Closing cash and cash equivalents represent:

Cash and cash equivalents 18
1,672,219,768 787,826,245
Bank overdraft 24
(1,681,372,914) (2,502,962,921)
(9,153,146) (1,715,136,676)

Net Operating Cash Flows Per Share (NOCFPS) 37.3

20.45 71.18

*See Note 18.3 for reconciliation of net operating cash flow.

Annual Report 2020- Page

 The annexed notes 1 to 45 form an integral part of these financial statements.

Page Annual Report 2020-

 Advanced Chemical Industries Limited
Consolidated Statement of Financial Position

In Taka Note 30 June 2021 30 June 2020

Assets
Property, plant and equipment 8(a) 29,821,715,259 26,682,430,648
Right-of-use assets 9(a) 1,497,952,751 1,505,562,594
Equity-accounted investees 10(a).1 1,927,912,599 1,668,821,756
Other investments 10(a).2 810,605,689 777,345,035
Intangible assets 11(a) 93,940,460 115,683,193
Biological assets 12(a) 17,778,109 10,914,869
Deferred tax assets 23(a) 448,004,545 398,906,932
Non-current assets 34,617,909,411 31,159,665,028
Inventories 13(a) 17,349,949,096 12,545,671,650
Trade receivables 14(a) 12,015,538,374 12,212,918,829
Other receivables 15(a) 815,433,268 670,119,195
Inter-company receivables 16(a) 9,585,811 9,524,610
Advances, deposits and prepayments 17(a) 2,300,941,553 2,082,001,900
Short term investments 18(a) 1,158,369,377 1,070,000,000
Cash and cash equivalents 18(b) 3,831,928,920 1,812,921,593
Current assets 37,481,746,399 30,403,157,777
Total assets 72,099,655,810 61,562,822,805
Equity
Share capital 631,102,500 573,729,556
Share premium 928,707,434 402,310,367
Reserves 20(a) 7,084,648,991 4,711,254,886
Retained earnings 1,620,384,642 2,211,343,343
Equity attributable to the owners of the company 10,264,843,567 7,898,638,152
Non-controlling interest 838,207,492 (608,660,714)
Total equity 11,103,051,059 7,289,977,438
Liabilities
Employee benefits 21(a) 1,462,875,059 1,367,018,271
Long term bank loan 22(a) 7,843,747,173 8,271,767,701
Lease liabilities 9(a) 1,161,243,121 1,180,584,553
Non-current liabilities 10,467,865,353 10,819,370,525
Bank overdraft 24(a) 3,543,943,716 4,440,893,673
Loans and borrowings 25(a) 34,516,421,376 27,288,288,273
Lease liabilities-current portion 9(a) 434,023,303 402,088,291
Trade payables 26(a) 4,540,656,791 4,897,372,492
Other payables 27(a) 7,303,909,434 5,915,761,374
Unclaimed dividend account 28(a) 131,177,139 173,531,474
Current tax liabilities 30(a) 58,607,638 335,539,266
Current liabilities 50,528,739,398 43,453,474,842
Total liabilities 60,996,604,751 54,272,845,367
Total equity and liabilities 72,099,655,810 61,562,822,805
Consolidated Net Asset Value (NAV) per share 37.3(a) 162.65 125.16
The annexed notes 1 to 45 form an integral part of these financial statements.

Dr. Arif Dowla Kamran Tanvirur Rahman Mohammad Mostafizur Rahman

Managing Director Director Company Secretary
As per our report of same date.

(A. WAHAB & CO.)

Chartered Accountants
Dhaka, 28 October 2021 Kazi Md. Mahboob Kasem, FCA
Partner
Enrolment No: 845
DVC: 2111040845AS643373

Annual Report 2020- Page

Advanced Chemical Industries Limited
Consolidated Statement of Profit or Loss

For the year For the year

ended ended
In Taka Note 30 June 2021 30 June 2020

Revenue 31(a)
80,748,403,165 69,475,287,805
Cost of sales 32(a)
(59,032,686,076) (49,991,773,844)
Gross profit
21,715,717,089 19,483,513,961
Administrative, selling and distribution expenses 33(a)
(16,467,045,135) (15,413,733,052)
Other income 34(a)
310,298,388 261,633,957
Operating profit
5,558,970,342 4,331,414,866
Share of profit of equity accounted investees
472,515,593 367,008,180
Net finance costs 35(a)
(3,552,575,030) (4,571,407,759)
Profit before contribution to WPPF
2,478,910,905 127,015,287
Contribution to WPPF
(291,774,335) (225,641,786)
Profit/(loss) before tax
2,187,136,570 (98,626,499)
Income tax expense 36(a)
Current tax expense
(1,945,997,887) (1,684,241,935)
Deferred tax income
195,924,013 460,512,750
(1,750,073,874) (1,223,729,185)
Profit/(loss) after tax
437,062,696 (1,322,355,684)

Profit/(loss) attributable to
Equity holders of the company
347,170,658 (1,058,758,906)
Non-controlling interests
89,892,038 (263,596,778)
437,062,696 (1,322,355,684)

Earnings per share 37.1(a)

Basic and diluted earnings per share
5.50 (16.78)

The annexed notes 1 to 45 form an integral part of these financial statements.

Dr. Arif Dowla Kamran Tanvirur Rahman Mohammad Mostafizur Rahman

Managing Director Director Company Secretary
As per our report of same date.

(A. WAHAB & CO.)

Chartered Accountants
Dhaka, 28 October 2021 Kazi Md. Mahboob Kasem, FCA
Partner
Enrolment No: 845

Page Annual Report 2020-

DVC: 2111040845AS643373

Annual Report 2020- Page

Advanced Chemical Industries Limited
Consolidated Statement of Profit or Loss and other Comprehensive

For the year For the

year ended ended
In Taka 30 June 2021 30 June 2020

Profit/(loss) after tax 437,062,696 (1,322,355,684)

Other comprehensive income

Items that will not be reclassified to profit or loss

Remeasurement of defined benefit plan (49,765,962) -
Related tax 8,950,039 -
(40,815,923) -
Change in fair value of FVOCI financial assets 21,229,619 (135,338,387)
Related tax (2,122,962) 13,533,839
19,106,657 (121,804,548)
Revaluation surplus on property plant and equipment 2,829,083,784 -
Related tax (149,892,679) -
2,679,191,105 -

Items that may be reclassified subsequently to profit or loss

Foreign operations - foreign currency translation differences - (589,887)
- (589,887)
Other comprehensive income, net of tax 2,657,481,838 (122,394,435)
Total comprehensive income 3,094,544,534 (1,444,750,119)

Total comprehensive income attributable to

Equity holders of the Company

Profit/(loss) after tax 347,170,658 (1,058,758,906)
Other comprehensive income 2,340,373,130 (122,282,286)
2,687,543,788 (1,181,041,192)
Non-controlling interests
Profit/(loss) after tax 89,892,038 (263,596,778)
Other comprehensive income 317,108,708 (112,149)
407,000,746 (263,708,927)
Total comprehensive income 3,094,544,534 (1,444,750,119)

The annexed notes 1 to 45 form an integral part of these financial statements.

Dr. Arif Dowla Kamran Tanvirur Rahman Mohammad Mostafizur Rahman

Managing Director Director Company Secretary
As per our report of same date.

(A. WAHAB & CO.)

Chartered Accountants
Dhaka, 28 October 2021 Kazi Md. Mahboob Kasem, FCA
Partner
Enrolment No: 845
DVC: 2111040845AS643373

Page Annual Report 2020-

 Advanced Chemical Industries Limited
Consolidated Statement of Changes in
Equity
For the year ended 30 June 2021
Attributable to owner of the Company
Share Share Capital Translation FVOCI Revaluation Retained Non-controlling Total
In Taka capital premium reserve reserve reserve reserve earnings Total interests equity
Balance at 1 July 2020 573,729,556 402,310,367 1,671,386 (1,396,614) 433,046,592 4,277,933,521 2,211,343,343 7,898,638,151 (608,660,714) 7,289,977,438
Total comprehensive income
Profit after tax - - - - - - 347,170,658 347,170,658 89,892,038 437,062,696
Other comprehensive income - net of tax - - 18,960,217 2,353,485,627 (32,072,713) 2,340,373,130 317,108,708 2,657,481,838
Total comprehensive income - - - - 18,960,217 2,353,485,627 315,097,945 2,687,543,788 407,000,746 3,094,544,534
Transactions with owners of the Company
Contributions and distributions
Issuance of bonus shares for the year 2019-2020 57,372,945 - - - - - (57,372,945) - - -
Cash dividend for the year 2019-2020 - - - - - - (458,983,640) (458,983,640) (41,867,790) (500,851,430)
Effect of issuing preference shares to Bangladesh Managed Account
C.V. (a limited partnership of FMO) by ACI Motors Ltd. - 526,397,067 - - - - (298,366,718) 228,030,349 770,774,396 998,804,745
Capital contribution by non-controlling interest (BMA C.V.) - - - - - - - - 233,333,400 233,333,400
Change in ownership interest in subsidiary without a change in control - - - - - 948,262 (91,333,343) (90,385,081) 77,627,454 (12,757,627)
Total contributions and distributions 57,372,945 526,397,067 - - - 948,262 (906,056,646) (321,338,372) 1,039,867,460 718,529,088
Total transactions with owners of the Company 57,372,945 526,397,067 - - - 948,262 (906,056,646) (321,338,372) 1,039,867,460 718,529,088
Transactions recognised directly in equity
Realisation of revaluation reserve - - - - - - - - - -
Total transactions recognised directly in equity - - - - - - - - - -
Balance at 30 June 2021 631,102,500 928,707,434 1,671,386 (1,396,614) 452,006,810 6,632,367,409 1,620,384,642 10,264,843,567 838,207,492 11,103,051,059

For the year ended 30 June 2020

Attributable to owner of the Company
Share Share Capital Translation FVOCI Revaluation Retained Non-controlling Total
In Taka capital premium reserve reserve reserve reserve earnings Total interests equity
Balance at 1 July 2019 498,895,266 402,310,367 1,671,386 (848,385) 554,780,649 4,277,933,521 3,843,831,804 9,578,574,608 (352,060,745) 9,226,513,863
Total comprehensive income
Profit after tax - - - - - - (1,058,758,906) (1,058,758,906) (263,596,778) (1,322,355,684)
Other comprehensive income-net of tax - - - (548,229) (121,734,057) - - (122,282,286) (112,149) (122,394,435)
Total comprehensive income - - - (548,229) (121,734,057) - (1,058,758,906) (1,181,041,192) (263,708,927) (1,444,750,119)
Annual Report 2020-2021

Transactions with owners of the Company

Contributions and distributions
Issuance of bonus shares for the year 2018-2019 74,834,290 - - - - - (74,834,290) - - -
Cash dividend for the year 2018-2019 - - - - - - (498,895,265) (498,895,265) (73,268,633) (572,163,898)
Adjustment for transfer of shares in subsidiary - - - - - - - - 57,377,590 57,377,590
Capital contribution by Non-controlling interest - - - - - - - - 23,000,000 23,000,000
Total contributions and distributions 74,834,290 - - - - (573,729,555) (498,895,265) 7,108,958 (491,786,307)
Total transactions with owners of the Company 74,834,290 - - - - (573,729,555) (498,895,265) 7,108,958 (491,786,307)
Transactions recognised directly in equity
Realisation of revaluation reserve - - - - - - - - - -
Total transactions recognised directly in equity - - - - - - - - - -
Balance at 30 June 2020 573,729,556 402,310,367 1,671,386 (1,396,614) 433,046,592 4,277,933,521 2,211,343,343 7,898,638,151 (608,660,714) 7,289,977,438
The annexed notes 1 to 45 form an integral part of these financial statements.
Page 85
Advanced Chemical Industries Limited
Consolidated Statement of Cash Flows

For the year For the year

ended ended
In Taka Note 30 June 2021 30 June 2020

Cash flows from operating activities

Cash receipts from customers and others
80,810,648,212 71,486,199,792
Cash paid to suppliers and employees
(77,708,778,306) (61,002,398,905)
Cash generated from operating activities
3,101,869,906 10,483,800,887
Paid to WPPF
(135,640,501) (134,609,898)
Interest paid
(2,631,406,154) (3,967,539,139)
Income tax paid
(2,219,168,717) (1,631,861,449)
(4,986,215,372) (5,734,010,487)
Net cash from/(used in) operating activities* 18 (c)
(1,884,345,465) 4,749,790,401
Cash flows from investing activities
Acquisition of property, plant and equipment
(721,962,817) (638,157,096)
Payments for capital work in progress
(1,197,200,948) (2,032,623,525)
Sale proceeds from property, plant and equipment
89,454,342 5,554,245
Purchase of biological assets
(6,548,243) -
Dividend received
394,595,493 302,555,905
Short term investments
(90,320,150) (1,070,000,000)
Long term investments
(170,720,000) (350,315,711)
Net cash from/(used in) investing activities
(1,702,702,324) (3,782,986,182)
Cash flows from financing activities
Payment as dividend to non-controlling
(41,479,556) (72,498,119)
interest Inter-company debts received/(paid)
(61,201) 41,059,255
Dividend paid
(501,726,209) (439,397,155)
Payment for lease liability
(423,137,984) (384,290,121)
Equity investment received by ACI Motors
1,232,138,145 -
Limited Short-term bank loan received/(paid)
9,460,818,474 (23,922,468)
Long-term bank loan received/(paid)
(3,223,413,402) (418,031,903)
Net cash from/(used in) financing activities
6,503,138,268 (1,297,080,510)
Net increase/(decrease) in cash and cash equivalents
2,916,090,479 (330,276,291)
Opening cash and cash equivalents
(2,627,972,080) (2,298,188,132)
Effect of movements in exchange rate on cash held
(133,195) 492,343
Cash and cash equivalents at reporting date
287,985,204 (2,627,972,080)
Closing balance represents
Cash and cash equivalents 18(b)
3,831,928,920 1,812,921,593
Bank overdraft 24(a)
(3,543,943,716) (4,440,893,673)
287,985,204 (2,627,972,080)
Consolidated Net Operating Cash Flows Per Share (NOCFPS) 37.3(a)
(29.86) 75.26

*See Note 18 (c) for reconciliation of consolidated net operating cash flow.

The annexed notes 1 to 45 form an integral part of these financial statements.

Page Annual Report 2020-

Advanced Chemical Industries Limited
Notes to the Financial Statements
as at and for the year ended 30 June 2021

1 Reporting entity

1.1 Company profile

Advanced Chemical Industries Limited (hereinafter referred to as "ACI Limited" or "the
Company") is a public limited company incorporated in Bangladesh on 24 January 1973 as
ICI Bangladesh Manufacturers Limited. The registered office of the Company is at 245
Tejgaon Industrial Area, Dhaka-1208 in Bangladesh.
The consolidated financial statements of the Company as at and for the year ended 30 June 2021
comprise the Company's and its subsidiaries (together referred to as the "Group" and individually
as "Group entities") and the Group's interest in associates and jointly controlled entities.
The Company is listed with Dhaka Stock Exchange Limited (DSE) and Chittagong Stock Exchange
Limited (CSE).

1.2 Nature of business

The Company is primarily involved in manufacturing of pharmaceuticals, consumer brands,
animal health products and marketing them along with fertilizer, seeds and other agricultural
items.

1.3 Description of subsidiaries

1.3.1ACI Formulations Limited

The company was incorporated on 29 October 1995 as a private limited company under the
Companies Act 1994. It was converted to public limited company on 4 May 2005 and listed
with both Dhaka Stock Exchange Limited (DSE) and Chittagong Stock Exchange Limited (CSE) on
30 October 2008. The principal activities of the company are manufacturing and marketing
of a number of agrochemical and consumer products.

1.3.2ACI Salt Limited

The company was incorporated on 13 June 2004 as a private limited company under the
Companies Act 1994. The principal activity of the company is manufacturing and marketing
of edible branded salt.

1.3.3ACI Foods Limited

The company was incorporated on 14 September 2006 as a private limited company under
the Companies Act 1994. The main objectives of the company are manufacturing, processing
and marketing of different food items including milling and processing of rice, spices and
different snack items.

1.3.4ACI Pure Flour Limited

The company was incorporated on 29 August 2006 as a private limited company under the
Companies Act 1994. The main objectives of the company are to carry on the business of milling,
processing, packaging and marketing of wheat flour products and lentil.

1.3.5ACI Agrolink Limited

The company was incorporated on 4 July 2006 as a private limited company under the
Companies Act 1994. The main objectives of the company are to carry on the business of
manufacturing, formulating and packaging of pesticide, fertilizer, plant nutrient, animal food and
other nutrient products including shrimp processing for export.

Annual Report 2020-2021 Page 87

 1.3.6ACI Motors Limited
The company was incorporated on 11 December 2007 as a private limited company under
the Companies Act 1994. The main objectives of the company are to carry on the business of
buying, selling, importing and assembling of vehicles for both agricultural and non-
agricultural use including other agricultural equipment and supplying of spare parts and
providing service facilities for these vehicles and equipment.
The company has also a distribution agreement with India Yamaha Motors Private Ltd. to sell and
distribute YAMAHA brand motorcycles and parts in Bangladesh. The company has a
manufacturing and assembling plant of YAMAHA motorcycles at Rajabari, Gazipur which started
its commercial activities from May 2019.

1.3.7Creative Communication Limited

The company was incorporated on 2 September 2007 as a private limited company under
the Companies Act 1994. The principal activities of the company are managing media
solutions and similar services for different clients including television commercials and other
advertisement and promotion related activities.
1.3.8Premiaflex Plastics Limited
The company was incorporated on 11 June 2007 as a private limited company under the
Companies Act 1994. The main objectives of the company are to carry out the business of
manufacturing and marketing of plastic products, flexible printing and other ancillary
business associated with plastic and flexible printing. The company commenced its commercial
production from 1 December 2008.
It has a Consumer Plastics production plant that produces home plastic products with a promise
in mind to deliver premium quality plastic made products for its customers.

1.3.9ACI Logistics Limited

The company was incorporated on 29 April 2008 as a private limited company under the
Companies Act 1994. The main objective of the company is to set-up nationwide retail outlets in
order to facilitate the improvement in goods marketing efficiency and to provide a modern
self service shopping option to customers.

1.3.10 ACI Edible Oils Limited

The company was incorporated on 13 December 2010 as a private limited company under
the Companies Act 1994. The main objective of the company is to carry out the business as
manufacturing as well as trading of all kinds of crude and refined edible oils, edible fats, food
grade chemicals, cleansing materials, preservatives and other allied food products.
1.3.11 ACI HealthCare Limited
The company was incorporated on 18 February 2013 as a public limited company under the
Companies Act 1994. The principal activities of the company are to be manufacturing and
marketing of pharmaceutical products for regulated markets.
1.3.12 ACI Chemicals Limited
The company was incorporated on 26 November 2013 as a private limited company under
the Companies Act 1994. The main objective of the company is to represent foreign and
local principals and market and promote their products and process and engage in the
service of indenting on their behalf.

1.3.13 ACI Biotech Limited

The company was incorporated in Bangladesh on 22 November 2016 as a private limited
company under the Companies Act 1994. The principal activities of the company are to carry out
the business of manufacturing and marketing of Biosimilar pharmaceutical products.
Currently the production facility is under construction process.

Page 88 Annual Report 2020-2021

1.3.14 Infolytx Bangladesh Limited
I Infolytx Bangladesh Limited is a private limited company incorporated on 23 July 2015
under the Companies Act 1994 being a 60% owned subsidiary of ACI Limited incorporated in
Bangladesh having its registered office situated at 245, Tejgaon I/A , Dhaka. The main objective
of the company is to develop computer software focusing on leading edge technologies with
an aim of varied range of offerings.

1.3.15 ACI Marine and Riverine Technologies Limited

ACI Marine and Riverine Technologies Limited is a private limited company incorporated on
19 December 2019 under the Companies Act 1994 being a 77% owned subsidiary of ACI
Limited incorporated in Bangladesh having its registered office situated at 245, Tejgaon I/A ,
Dhaka. The main objective of the company is to carry on all or any of the business of
shipping, ship engineering, and other related areas.

2 Basis of accounting

2.1 Statement of compliance

The consolidated financial statements have been prepared in accordance with International
Accounting Standards (IASs), International Financial Reporting Standards (IFRSs), the
Companies Act 1994, the Securities and Exchange Rules 1987 and other applicable laws and
regulations.

2.2 Date of authorisation

The audited consolidated financial statements as well as separate financial statements for
the year ended 30 June 2021 were authorised by the Board of Directors on 28 October 2021
for publication.

2.3 Basis of measurement

The financial statements have been prepared on historical cost basis except for certain
assets which are stated either at revalued amount or fair market value as explained in the
accompanying notes.

3 Functional and presentational currency

These financial statements are presented in Bangladesh Taka (Taka/TK/BDT), which is both
functional and presentation currency of the Company. The amounts in these financial statements
have been rounded off to the nearest Taka, unless stated otherwise indicated. Because of
these rounding off, in some instance the total may not match the sum of individual balance.

4 Use of judgments and estimates

In preparing these financial statements, management has made judgments, estimates and
assumptions that affect the application of accounting policies and the reported amounts of assets,
liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revision to estimates
are recognised prospectively.

4.1 Judgements
Information about judgements made in applying accounting policies that have the most
significant effects on the amounts recognised in the consolidated financial statements is included
in the following notes:

Note 6C Basis of consolidation

Note 6N Leases

Annual Report 2020-2021 Page 89

 4.2 Assumptions and estimation uncertainties
(i) Information about assumptions and estimation uncertainties that have a significant risk
of resulting in a material adjustment in the year ended 30 June 2021 is included in the
following notes:

Note 6L, 8 and 8(a) Property, plant and equipment

Note 6K, 13 and 13(a) Inventories
Note 6O, 14 and 14(a) Trade receivables
Note 6O, 15 and 15(a) Other receivables
Note 6O, 16 and 16(a) Intercompany receivables
Note 6F, 21 and 21(a) Employee benefits
Note 6H, 23 and 23(a) Deferred tax liabilities
Note 6H, 30 and 30(a) Provision for tax
Note 39 Commitments
Note 6T and 38 Contingencies
Note 6C and 10(a) Acquisition of subsidiary
Note 6N Leases

(ii) Measurement of fair values:

When measuring the fair value of an asset or a liability, the Group uses market
observable data as far as possible. Fair values are categorised into different levels in a
fair value hierarchy based on the inputs used in the valuation techniques as follows:

• Level 1 : quoted prices (unadjusted) in active markets for identical assets or liabilities.
• Level 2 : inputs other than quoted prices included in Level 1 that are observable for the
asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived
from prices).
• Level 3 : inputs for the asset or liability that are not based on observable market
data (unobservable inputs).

If the inputs used to measure the fair value of an asset or a liability might be categorised in
different levels of the fair value hierarchy, then the fair value measurement is categorised in
its entirety in the same level of the fair value hierarchy as the lowest level input that is significant
to the entire measurement.

The Group recognises transfers between levels of the fair value hierarchy at the end of the
reporting period during which the change has occurred.

4.3 Impact of Covid-19

On 11 March 2020, World Health Organization (WHO) declared a global pandemic due to Corona
Virus related respiratory disease commonly called as COVID 19. To contain the spread of this
disease, along with many other countries of the world, Government of Bangladesh has also taken
a number of measures such as declaration of general holiday, enforcement of lock down,
social distancing etc. As a result of these measures, businesses and economic activities of the
country are affected.
However, considering the facts and circumstances, management believes that there is no
material uncertainty or possibility of impairment of assets which may cast doubt on the
Group's ability to continue as a going concern in the foreseeable future.

Page 90 Annual Report 2020-2021

5 Reporting period
The financial period of the Company covers one year from 1 July 2020 to 30 June 2021 and
is being following consistently.

Financial period of one associate is:

Asian Consumer Care (Pvt.) Limited From 1 April to 31 March

For the purpose of consolidation, additional financial information of the associate was prepared as
of 30 June 2021 to enable the Group to consolidate the financial result of the associates.
However, the figures involved in the aforesaid associate company up to 30 June 2021 from
the end of their accounting year was insignificant.

6 Significant accounting policies

The accounting policies set out below have been applied consistently to all periods presented in
these financial statements.
Set out below is an index of the significant accounting policies, the details of which are available
on the current and following pages:
A Current versus non-current classification
B Offsetting
C Basis of consolidation
D Revenue from contracts with customers
E Foreign currency transactions
F Employee benefits
G Finance income and finance costs
H Income tax
I Biological assets
J Investment
K Inventories
L Property, plant and equipment
M Intangible assets and goodwill
N Leases
O Financial instruments
P Share capital
Q Provisions
R Impairment
S Going concern
T Contingencies
U Statement of cash flows
V Earnings per share (EPS)
W Events after the reporting period
X Dividends
Y Materiality and aggregation

A versus non-current classification

The Group presents assets and liabilities in statement of financial position based on
current/non-current classification. An asset is current when it is:
i) expected to be realised in normal operating cycle, or
ii) due to be realised within twelve months after the reporting period, or
iii) held primarily for the purpose of trading, or
iv) used or exchanged to settle a liability for at least twelve months after the reporting
period.

All other assets are classified as non-current.

Annual Report 2020-2021 Page 91

 A liability is current when it is:
i) expected to be settled in normal operating cycle, or
ii) due to be settled within twelve months after the reporting period, or
iii) held primarily for the purpose of trading, or
iv) there is no unconditional right to defer the settlement of the liability for at least twelve
months after the reporting period.
The Group classifies all other liabilities as non-current.

B
The Group reports separately both assets and liabilities, and income and expenses, unless
required by an applicable accounting standard or offsetting reflects the substance of the
transaction and such offsetting is permitted by applicable accounting standard.
Cash receipts and payments on behalf of customers when the cash flows reflect the activities
of the customer rather than those of the entity and cash receipts and payments for items in
which the turnover is quick, the amounts are large, and the maturities are short are
presented net in the statement of cash flows.

C of consolidation
(i) Subsidiaries
Subsidiaries are entities controlled by ACI Limited. ACI Limited controls an entity when it is
exposed to, or has rights to, variable returns from its involvement with the entity and has
the ability to affect those returns through its power over the entity. The financial statements
of subsidiaries have been included in the consolidated financial statements from the date on
which control commences until the date on which control ceases. The accounting policies of
subsidiaries have been changed when necessary to align them with the policies adopted by ACI
Limited.
(ii) Non-controlling interests
Non-controlling interest (NCI) is the equity interest in a subsidiary not attributable to ACI
Limited. NCI is measured at subsidiaries' proportionate share of identifiable net assets.
(iii) Interests in equity-accounted investees
The ACI Limited's interests in equity-accounted investees comprise interests in associates
and joint ventures.
Associates are those entities in which ACI Limited has significant influence, but not control or
joint control, over the financial and operating policies. A joint venture is an arrangement in which
ACI Limited has joint control, whereby ACI Limited has rights to the net assets of the
arrangement, rather than rights to its assets and obligations for its liabilities.
Interests in associates and the joint ventures are accounted for using the equity method.
They are initially recognised at cost.
(iv) Loss of control
When ACI Limited loses control over a subsidiary, it derecognises the assets and liabilities of the
subsidiary and any related NCI and other components of the equity. Any resulting gain or loss
is recognised in the profit or loss. Any interest retained in the former subsidiary is measured at
fair value when control is lost.
(v) Transactions eliminated on consolidation
Intra-group balances and transactions, and any unrealised income and expenses arising
from intra-group transactions, are eliminated in preparing the consolidated financial
statements. Unrealised gains arising from transactions with equity accounted investees are
eliminated against the investment to the extent of ACI Limited's interest in the investee.
Unrealised losses, if any, are eliminated in the same way as unrealised gains but only to the
extent that there is no evidence of impairment.

Page 92 Annual Report 2020-2021

D from contracts with customers
Revenue is measured based on the consideration specified in a contract with a customer.
The Group recognises revenue when it transfers control over a good or service to a
customer. The following table provide information about the nature and timing of the satisfaction
of performance obligations in contracts with customers:

Type of product or service Revenue recognition under IFRS 15

Revenue is recognized when or as a performance obligation is satisfied

by transferring a good or service to a customer, either at a point in time or
over time. A good or service is ‘transferred’ when or as the customer obtains
control of it. Customers obtain control of goods at point of delivery or over
time.
Sale of goods
The entity assesses whether it transfers control over time by following prescribed
or services criteria for satisfying performance obligation. If none of the criteria is met
then the entity recognizes revenue at point of time at which it transfers control of
the goods to the customer.
Revenue is measured net of value added tax, trade discount, returns and
allowances (if any). In case of cash delivery, revenue is recognised when delivery
is made and cash is received by the Group.

E currency transactions
Transactions in foreign currencies are translated at the exchange rate prevailing on the date
of transactions. Monetary assets and liabilities denominated in foreign currencies are translated
at exchange rates prevailing at the date of statement of financial position. Foreign currency
differences are generally recognised in the statement of profit and loss.
Non-monetary items that are measured in terms of historical cost in a foreign currency are
translated using the exchange rate at the date of transactions.

F benefits
(i) Short-term employee benefits
Short-term employee benefits are expensed as the related service is provided. A liability is
recognised for the amount expected to be paid if the Group has a present legal or
constructive obligation to pay this amount as a result of past service provided by the
employee and the obligation can be estimated reliably.
(ii) Defined contribution plan (provident fund)
The Group operates a recognised provident fund scheme where employees contribute 8% of their
basic salary with equal contribution by the Group. The provident fund is considered as
defined contribution plan being managed by a Board of Trustees.
(iii) Defined benefit plan (gratuity)
The Group operates gratuity scheme, provision in respect of which is made annually covering all
permanent eligible employees. The Employees' Gratuity Fund is being considered as defined
benefit plan. The scheme has become a recognised gratuity fund during the year ended 30 June
2021.
Defined benefit plan is a retirement benefit plan under which amounts to be paid as
retirement benefits are determined by reference to employees' earnings and year of services.
The rate used to discount post employment benefit obligations is determined by reference to the
rate stated in the actuarial report. Actuarial valuation of gratuity scheme has been made as on 30
June 2021 by independent actuarial valuer to assess the adequacy of the liabilities provided
for the schemes, which concluded that the provision kept for gratuity scheme is sufficient.
(iv) Workers' profit participation fund
The Group operates funds for workers as "Workers' Profit Participation Fund" and 5% of the profit
before charging such expense have been transferred to this fund as per section 234 of the Labour
Act 2006 (amended in 2013).

Annual Report 2020-2021 Page 93

 G income and finance costs
The Group’s finance income and finance costs include:
• interest income; and
• interest expense.
Interest income or expense is recognised using the effective interest method.

H tax
Income tax expense comprises current and deferred tax. It is recognised in profit or loss except
to the extent that it relates to items recognised directly in equity or in OCI (Other Comprehensive
Income).
(i) Current tax
Current tax comprises the expected tax payable or receivable on the taxable income or loss
for the year and any adjustment to tax payable or receivable in respect of previous years.
The amount of current tax payable is the best estimate of the tax amount expected to be
paid that reflects uncertainty related to income tax, if any. Current tax assets/liabilities are offset
if certain criteria are met. It is measured using tax rates enacted or substantively enacted at the
reporting period. The applicable tax rate for ACI Limited is currently 22.5%.
(ii) Deferred tax
Deferred tax asset or liability is recognised in respect of temporary differences between the
carrying amounts of assets and liabilities for financial reporting purposes and the amounts used
for taxation purposes. Deferred tax is not recognised for:
- temporary differences on the initial recognition of assets or liabilities in a transaction that is not
a business combination and that affects neither accounting nor taxable profit or loss;
- temporary differences related to investments in subsidiaries to the extent that the Group is able
to control the timing of the reversal of the temporary difference and it is probable that they will
- taxable temporary differences arising on the initial recognition of goodwill.
Deferred tax assets are recognised for unused tax losses, unused tax credits and deductible
temporary differences to the extent it is probable that future taxable profits will be available
against which they can be used. Deferred tax assets are reviewed at each reporting date and are
reduced to the extent that it is no longer probable that the related tax benefit will be
realised; such reductions are reversed when the probability of future taxable profits improve.
The Group’s existing accounting policy for uncertain income tax treatments is consistent with the
requirements in IFRIC 23 Uncertainty over Income Tax Treatments, which became effective on 1
January 2019.

I assets
Biological assets are measured at fair value less cost to sell with any changes therein recognised
in profit and loss.

J
In the separate financial statements of ACI Limited, investment in subsidiaries, associates
and joint ventures has been carried at cost as per IAS 27: Separate Financial Statements. All
other investments have been categorised in accordance with IFRS 9.

K
Inventories except materials in transit are measured at the lower of cost and net realisable value.
The cost of inventories is based on the weighted average method, and includes expenditure
incurred in acquiring the inventories, production or conversion costs and other costs incurred
in bringing them to their existing location and condition. In the case of manufactured
inventories and work-in-progress, cost includes an appropriate share of production
overheads based on normal operation capacity.
Allowance for inventory is periodically recognised mainly on the basis of failure in quality control
testing, net realisable value, non compliance testing, near to expiry etc. Net realisable value
is the estimated selling price in the ordinary course of business, less the estimated costs of
completion and selling expenses.

Page 94 Annual Report 2020-2021

Material in transit represents the cost incurred up to the date of the statement of financial
position for the items that were not received but the relative risk has been transferred till to
the date of reporting. Inventory losses and abnormal losses are recognised as expenses.

L plant and equipment

(i) Recognition and measurement
Items of property, plant and equipment are measured at cost or revaluation less
accumulated depreciation. The items of property, plant and equipment were revalued in the year
2004, 2007, 2010, 2015 and 2021 by the firm of professional valuers on the basis of
applicable methods including market value based method, premised on the accompanying
narrative information and valuation methodology. When revalued assets are disposed of, the
amounts included in the revaluation surplus are transferred to retained earnings.
Cost includes expenditure that is directly attributable to the acquisition of asset. The cost of self
constructed asset includes the cost of material, direct labour and any other costs directly
attributable to bringing the assets to the working condition for their intended use.
(ii) Subsequent costs
Subsequent to initial recognition, cost of replacing part of an item of property, plant and
equipment is recognised in the carrying amount of the item if it is probable that the future
economic benefits embodied within the part will flow to the Group and its cost can be
measured reliably. All other repair and maintenance expenses are charged in statement of
profit or loss as they are incurred.
(iii) Depreciation
All items of property, plant and equipment have been depreciated on straight line basis.
Depreciation begins when an asset become available for use. Depreciation is charged at the rates
varying from 2.5% to 20% depending on the estimated useful lives of assets. No depreciation is
charged for land and capital work-in-progress. The Group follows this policy consistently
from past years.
The revalued items of property, plant and equipment are depreciated by writing off their revalued
amount at the date of revaluation over their remaining estimated useful lives.
The estimated useful lives for the current and comparative of initially recognised property, plant
and equipment period/years are as follows:
In years 30 June 2021 30 June 2020
Building 20 - 40 20 - 40
Plant and machinery 2 - 15 2- 10
Furniture and fixture 5 - 10 5- 10
Electrical and other appliances 2 - 10 2- 10
Office machinery 2 - 15 2- 15
Motor vehicles 2- 5 2- 5
Depreciation methods, useful lives and residual values are reviewed at each reporting date
and adjusted if appropriate. No significant adjustment in respect of items of property, plant
and equipment was done in the reporting period.
(iv) Capitalisation of borrowing costs
Borrowing costs that are directly attributable to the acquisition, construction or production of
a qualifying asset are included in the cost of that asset as per IAS - 23, Borrowing cost. The
capitalisation of such borrowing costs ceases when the asset is ready for intended use.
(v) Capital work in progress
Capital work-in-progress represents the cost incurred for acquisition and/or construction of items
of property, plant and equipment that were not ready for use at the end of the year and these
are
stated at cost.
(vi) Impairment
The carrying amount of the entity's non-financial assets, other than inventories and deferred tax
assets (considered as disclosed separately under respective accounting standards), are reviewed
at each reporting date to determine whether there is any indication of impairment. If any
such indication exists, the asset's recoverable amount is estimated. However, no such conditions
that might be suggestive of a heightened risk of impairment of assets existed at the reporting
date.
Annual Report 2020-2021 Page 95
 (vii) Retirement and disposals
An asset is derecognised on disposal or when no future economic benefits are expected from
its use and subsequent disposals. Gains and losses arising from the retirement or disposal of
an asset is determined as the difference between the net disposal proceeds and the carrying
amount of the asset and is recognised as gain or loss from disposal of asset in profit or loss.
When revalued assets are disposed of, the amounts included in the revaluation surplus are
transferred to retained earnings.

M assets and goodwill

(i) Recognition and measurement
Expenditure on research activities, undertaken with the prospect of gaining new scientific or
technical knowledge and understanding is recognised in the profit or loss as incurred.
Development activities involve a plan or design for the production of new and substantially
improved products and process. Development expenditures, on an individual project, are
recognised as an intangible asset when the Group can demonstrate all of the following:
(a) the technical feasibility of completing the intangible asset so that it will be available for
use or sale;
(b) its intention to complete the intangible asset and use or sell it;
(c) its ability to use or sell the intangible asset;
(d) how the intangible asset will generate probable future economic benefits. Among other
things, the entity can demonstrate the existence of a market for the output of the intangible
asset or the intangible asset itself or, if it is to be used internally, the usefulness of the
intangible asset;
(e) the availability of adequate technical, financial and other resources to complete the
development and to use or sell the intangible asset;
(f) its ability to measure reliably the expenditure attributable to the intangible asset during
its development;
Other development expenditures are recognised in profit and loss as incurred. Development costs
previously recognised as an expense are not recognised as an asset in a subsequent period.
Following initial recognition of the development expenditure as an asset, the cost model is applied
requiring the asset to be carried at cost less any accumulated amortisation and accumulated
impairment losses. During the period of development, the asset is tested for impairment
annually.
Internally generated intangible assets, excluding capitalised development costs, are not
capitalised and expenditure is reflected in profit or loss in the year in which the expenditure
is incurred.
(ii) Amortisation
Amortisation is charged in profit or loss on a straight line basis over the estimated useful lives of
intangible assets other than goodwill. Amortisation on additions are charged from the month
of acquisition. Amortisation is charged at the rates of 10% to 20% depending on the
estimated useful lives of assets and no amortisation is charged in the year of disposal.
The estimated useful life for the current intangible asset is as follows:
In years 30 June 2021 30 June 2020
Software 5 - 10 5 - 10
Amortisation methods, useful lives and residual values are reviewed at each reporting date.
(iii) Retirement and disposals
An intangible asset is derecognised on disposal, or when no future economic benefits are
expected from use or disposal. Gain or losses arising from derecognition of intangible assets,
measured as the difference between the net disposal proceeds and the carrying amount of
the assets are recognised in profit or loss.
(iv) Goodwill
Goodwill arising on the acquisition of subsidiaries is measured at cost less accumulated
impairment losses.

Page 96 Annual Report 2020-2021

 (v) Software
Software, acquired by the Group and have finite useful life, are measured at cost less
accumulated amortisation and any accumulated impairment losses. Subsequent expenditure
is capitalised only when it increases the future economic benefits embodied in the specific assets
to which it relates.

N
Leases are recognised as right-of-use assets and corresponding liabilities at the inception of
a contract and measured in accordance with IFRS 16. The right-of-use assets are depreciated
over the shorter of the asset’s useful life and the lease term on a straight-line basis.
At the commencement date, lease liabilities are measured at an amount equal to the present
value of the lease payments for the underlying right-of-use assets during the lease term.
The lease payments are discounted using the interest rate implicit in the lease, if that rate
can be readily determined, or the Company’s incremental borrowing rate. Each lease
payment is allocated between the liability and finance cost.
Payments associated with all short-term leases (with a lease term of 12 months or less) and
certain leases of all low-value assets are recognised on a straight-line basis as an expense in
profit or loss.

O instruments
Non-derivative financial instruments comprise investments in shares and term deposit, trade
receivables, other receivables, intercompany receivables, cash and cash equivalents, trade
payables, other payables, intercompany payables, share capital and interest-bearing borrowings.
(i) Financial assets
The Group initially recognises receivables and deposits issued on the date when they are
originated. All other financial assets are recognised initially on the date at which the
Company 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 in a
transaction in which substantially all of the risks and rewards of ownership of the financial asset
are transferred.
The Group's financial assets comprise trade and other receivables, investment in shares and term
deposit and cash and cash equivalents.
Trade, other and intercompany receivables
Trade, other and intercompany receivables are initially recognised at the transaction price. These
assets are subsequently measured at amortised cost using the effective interest method less
allowance for impairment loss of receivables using expected credit loss model.
Investment in shares-other than the investment in subsidiaries, associates and joint ventures
Investment in shares are equity instruments that are designated at the date of initial application
of IFRS 9 as FVOCI (original classification under IAS 39 was available-for-sale). Unlike IAS
39, the accumulated fair value reserve related to these investments will never be reclassified to
profit or loss.
Investment in term deposit
The Group has the positive intent and ability to hold term deposit to collect contractual cash
flows, and as such financial assets are classified as amortised cost (original classification
under IAS 39 was held to maturity).
Cash and cash equivalents
Cash and cash equivalents comprise cash balances and all call deposits with original maturities of
three months or less. Bank overdrafts that are repayable on demand and form an integral part of
the Group's cash management are included as a component of cash and cash equivalents for the
purpose only of the statement of cash flows.

Annual Report 2020-2021 Page 97

 (ii) Financial Liabilities
The Group initially recognises financial liabilities on the transaction date at which the Group
becomes a party to the contractual provisions of the liability. The Group recognises such financial
liability when its contractual obligations arising from past events are certain and the settlement of
which is expected to result in an outflow from the entity of resources embodying benefits.
The Group derecognises a financial liability when its contractual obligations are discharged or
cancelled, or expired.
The Group's financial liabilities comprise trade and other payables and interest - bearing
borrowings.
Trade payables
Trade payables are recognised at fair value.
Interest-bearing borrowings
Interest-bearing borrowings are recognised initially at fair value less attributable transaction
costs. Subsequent to initial recognition, interest-bearing borrowings are stated at amortised cost
using the effective interest method less any impairment losses.
(iii) Offsetting a financial asset and a financial liability
Financial assets and financial liabilities are offset and the net amount presented in the statement
of financial position when, and only when, the Group has a legal right to offset the amounts
and intends either to settle them on a net basis or to realise the asset and settle the liability
simultaneously.

P capital
Ordinary shares are classified as equity. Incremental cost directly attributable to the issue of
ordinary shares are recognised as a deduction from equity, net of any tax effect.

Q
A provision is recognised in the statement of financial position when the Group has a legal or
constructive obligation as a result of a past event, 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. Provisions are reviewed at the end of each reporting period and
adjusted to reflect the current best estimate. If it is probable that an outflow of resources
embodying economic benefits are required to settle the obligation, the provision are reversed.

R
(i) Financial assets
Financial assets are assessed at each reporting date to determine whether there is objective
evidence of impairment. Objective evidence that financial assets are impaired includes:
- default or delinquency by a debtor;
- restructuring of an amount due to the Group on terms that the Group would not consider
otherwise;
- indications that a debtor or issuer will enter bankruptcy;
- adverse changes in the payment status of borrowers or issuers; or
- observable data indicating that there is measurable decrease in expected cash flows from a
company of financial assets.
The Group considers evidence of impairment for these assets at both an individual asset and
a collective level. All individually significant assets are individually assessed for impairment.
Those found not to be impaired are then collectively assessed for any impairment that has
been incurred but not yet individually identified. Assets that are not individually significant
are collectively assessed for impairment. Collective assessment is carried out by grouping
together assets with similar risk characteristics.

Page 98 Annual Report 2020-2021

 In assessing collective impairment, the Group uses historical information on the timing of
recoveries and the amount of loss incurred, and makes an adjustment if current economic
and credit conditions are such that the actual losses are likely to be greater or lesser than
suggested by historical trends.
An impairment loss is calculated using expected credit loss model as prescribed in IFRS 9.
Impairment loss is recognised in profit or loss and reflected in an allowance account.
(ii) Non-financial assets
At each reporting date, the Group reviews the carrying amounts of its non-financial assets (other
than deferred tax assets) to determine whether there is any indication of impairment. If any such
indication exists, then the asset’s recoverable amount is estimated.
For impairment testing, assets are grouped together into the smallest group of assets that
generates cash inflows from continuing use that are largely independent of the cash inflows
of other assets or CGUs (Cash-generating units).
The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less
costs to sell. Value in use is based on the estimated future cash flows, discounted to their present
value using a pre-tax discount rate that reflects current market assessments of the time value of
money and the risks specific to the asset or CGU.
An impairment loss is recognised in profit or loss if the carrying amount of an asset or CGU
exceeds its recoverable amount.

S concern
The Group has adequate resources to continue in operation for the foreseeable future. For
this reason the management continues to adopt going concern basis in preparing the
financial statements. The current resources of the Company provide sufficient fund to meet
the present requirements of its existing business.
During the period/year under review, following two of the subsidiaries of ACI Limited have
following results and financial position:
ACI Logistics Limited
As at/For the As at/For the
year ended year ended
30 June 30 June
In Taka 2021 2020
Loss after tax 1,420,149,937 1,569,388,172
Accumulated loss 13,743,884,461 12,311,804,522
Current liabilities exceeds current assets 11,514,705,941 10,482,103,637
Paid up capital 360,000,000 360,000,000
Dues to banks and financial lease company 7,672,784,996 6,182,185,419
Furhter details have been available in the separate financial statements of ACI Logistics Limited.

ACI Foods Limited

As at/For the As at/For the
year ended year ended
30 June 30 June
In Taka 2021 2020
Loss after tax 42,530,420 106,987,123
Accumulated loss 2,165,013,777 2,122,483,357
Current liabilities exceeds current assets 2,800,029,821 2,773,328,541
Paid up capital 287,000,000 287,000,000
Dues to banks and financial lease company 834,362,099 424,171,538

Annual Report 2020-2021 Page 99

 The management is, however, confident that the above companies will continue in
operational existence for a foreseeable future on the basis of continued support from the
parent Company, ACI Limited and the Group's banks and its shareholders. The management is
also confident that the companies will improve their trading conditions as well.
In view of the continued support and assurance from the Group and major shareholders,
management believes that it is appropriate to prepare these financial statements on a going
concern basis.

T
Contingent liability
Contingent liability is a possible obligation that arises from past events and whose existence will
be confirmed only by the occurrence or non-occurrence of one or more uncertain future
events not wholly within the control of the entity.
The Group discloses contingent liability in the financial statements. A provision is recognised
in the period in which the recognition criteria of provision is met.
Contingent asset
Contingent asset is a possible asset that arises from past events and whose existence will be
confirmed only by the occurrence or non-occurrence of one or more uncertain future events not
wholly within the control of the entity.The Group does not recognise contingent asset.

U of cash flows
Cash flows from operating activities are presented under direct method as per IAS 7: Statement
of cash flows.

V per share (EPS)

The ACI Limited and the Group presents its basic earnings per share (EPS) for its ordinary
shares. Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders
of the ACI Limited/Group by the weighted average number of ordinary shares outstanding during
the year. Diluted EPS is determined by adjusting the profit or loss attributable to the
ordinary shareholders and the weighted average number of ordinary shares outstanding for the
effects of all dilutive potential ordinary shares, if any.
This has been shown on the face of profit or loss and computation of EPS is stated in note 37.

W after the reporting period

Events after the reporting period that provide additional information about the Group's position at
the reporting date or those that indicate the going concern assumption is not appropriate are
reflected in the financial statements. Events after the reporting period that are not adjusting
events are disclosed in the notes when material.

X
Final dividend distribution to the Group's shareholders are recognised as a liability in the financial
statements in the period in which the dividends are approved by the Group's shareholders at the
Annual General Meeting, while interim dividend distributions are recognised in the period in which
the dividends are declared and paid.

Y and aggregation
Each material class of similar items is presented separately in the financial statements. Items of
dissimilar nature or function are presented separately unless they are immaterial.

Page 100 Annual Report 2020-2021

7 Operating segments

(i) Basis for segmentation

The Group has the following strategic business units, which are its reportable segments. These
business units offer different products and services, and are managed separately because they
require different technology and marketing strategies.

Reportable segments Operations

1. Pharmaceuticals Buying, manufacturing, marketing and selling of pharmaceutical and
health care products in home and abroad.
2. Animal Health Buying, manufacturing, distributing and selling of veterinary and
fisheries products.
3. Consumer Brands Buying, manufacturing, marketing and selling of consumer products.
4. Crop Care and Public Health Buying, manufacturing, marketing and selling of crop protection
items.
5. Motors Buying and selling of agricultural equipment.
6. Pure Flour Buying, milling, processing, packaging, marketing and selling of
wheat flour products.
7. Retail Chain Facilitating modern self-service shopping option to customers.
8. Salt Buying, manufacturing, marketing and selling of vacuum evaporated
free flow iodised salt.
9. Foods Buying, manufacturing, processing, marketing and selling of food
items including spices and snack items.
10. Premiaflex Plastics Buying, manufacturing, processing, marketing and selling of plastic
products.
11. HealthCare Buying, manufacturing, processing, marketing and selling of
pharmaceutical products for regulated markets, especially for USA.

Operating results of all segments are regularly reviewed by the Group's managing director to
make decisions about resources to be allocated to the segment and to assess its
performance, and for which discrete financial information is available.

Other operations include the manufacture and distribution of edible oil, managing media
solutions, the formulation and packaging of pesticide, fertilizer, seeds, livestock, fisheries
and other plant nutrients, and the manufacture and distribution of paints and herbal products.
None of these segments met the quantitative thresholds for reportable segments for the year
ended on 30 June 2021. Inter-segment pricing is determined on an arm's length basis.

Annual Report 2020-2021 Page 101

Page 102
Annual Report 2020-2021

(ii) Information about reportable segments

Information related to each reportable segment is set out below. Segment profit before tax is used to measure performance because management believes that this information is the most
relevant in evaluating the results of the respective segments relative to other entities that operate in the same industries.
For the year ended 30 June 2021
Reportable segments
Animal Consumer Crop Care and Pure Retail Premiaflex Total reportable Unallocated/
Pharmaceuticals Health Brands Public Health Motors Flour Chain Salt Foods Plastics HealthCare segments Elimination Total
In Taka
External revenue 12,240,594,488 4,384,659,861 6,430,350,491 3,042,701,283 16,278,294,974 5,333,678,670 13,684,167,443 2,015,928,977 5,858,843,987 5,429,699,034 1,609,962,276 76,308,881,484 4,439,521,681 80,748,403,165
Intra-segment revenue - - 689,745,745 - 33,336,700 60,571,824 51,007,092 16,586,375 117,399,225 502,818,527 - 1,471,465,487 198,356,001 1,669,821,488
Segment revenue 12,240,594,488 4,384,659,861 7,120,096,236 3,042,701,283 16,311,631,673 5,394,250,494 13,735,174,535 2,032,515,352 5,976,243,212 5,932,517,561 1,609,962,276 77,780,346,971 4,637,877,682 82,418,224,654
Depreciation and amortisation 317,219,505 27,312,543 81,955,058 19,185,362 69,621,048 35,547,283 183,767,907 52,646,270 65,038,546 261,179,846 348,238,777 1,461,712,145 114,242,736 1,575,954,881
Operating expenses 5,182,396,274 909,371,953 2,002,605,433 571,801,059 1,912,521,504 277,185,276 2,482,658,920 264,883,038 524,961,286 501,923,040 1,245,878,090 15,876,185,874 590,859,261 16,467,045,135
Finance costs/(income) 102,830,000 99,310,000 12,680,000 109,276,318 272,893,936 (47,682,454) 1,255,614,402 (83,608,773) 293,408,636 462,544,346 875,103,405 3,352,369,815 200,205,215 3,552,575,030
Segment profit/(loss) before tax 2,353,350,809 370,799,620 (395,775,294) 390,559,988 1,581,216,730 85,320,746 (1,318,819,800) 404,728,600 7,238,687 58,086,519 (1,868,607,587) 1,668,099,019 519,037,551 2,187,136,570

Segment assets 11,932,170,967 2,700,826,835 4,757,238,734 2,546,824,908 14,051,260,153 1,716,687,864 3,693,664,006 2,660,555,116 2,676,007,088 6,920,778,934 9,423,780,957 63,079,795,562 9,019,860,248 72,099,655,810
Segment liabilities 3,556,097,256 1,557,332,223 1,764,652,240 1,672,647,584 8,575,159,483 511,892,598 17,077,548,465 994,856,471 4,476,546,917 6,156,293,665 13,006,408,018 59,349,434,919 1,647,169,832 60,996,604,751

For the year ended 30 June 2020

Reportable segments
Animal Consumer Crop Care and Pure Retail Premiaflex Total reportable Unallocated/
Pharmaceuticals Health Brands Public Health Motors Flour Chain Salt Foods Plastics HealthCare segments Elimination Total
In Taka

External revenue 11,761,464,286 3,644,230,956 5,364,072,343 2,615,685,217 13,140,921,157 5,041,188,209 11,529,882,434 2,039,845,671 5,025,783,089 3,901,409,814 2,059,918,065 66,124,401,242 3,350,886,563 69,475,287,805
Intra-segment revenue - - 681,389,540 - 7,465,478 41,696,193 33,564,864 63,846,606 132,910,084 429,555,376 - 1,390,428,141 121,665,883 1,512,094,024
Segment revenue 11,761,464,286 3,644,230,956 6,045,461,883 2,615,685,217 13,148,386,635 5,082,884,402 11,563,447,298 2,103,692,277 5,158,693,173 4,330,965,190 2,059,918,065 67,514,829,382 3,472,552,446 70,987,381,828
Depreciation and amortisation 329,311,716 29,980,432 80,984,501 33,685,752 63,114,692 33,719,892 214,349,094 51,121,488 63,973,362 255,160,959 283,956,291 1,439,358,180 113,962,693 1,553,320,873
Operating expenses 5,228,248,091 894,803,463 1,785,248,770 574,063,091 1,779,770,659 262,739,509 2,200,034,189 267,948,416 443,759,498 426,615,805 1,143,415,482 15,006,646,972 407,086,081 15,413,733,052
Finance costs/(income) 157,470,000 221,150,000 222,950,000 180,424,960 503,379,955 (59,003,965) 1,437,508,321 (46,163,685) 370,647,466 513,158,999 785,080,038 4,286,602,088 284,805,671 4,571,407,759
Segment profit/(loss) before tax 2,149,173,959 130,856,166 (604,421,712) 169,397,919 1,215,787,654 247,501,475 (1,482,316,083) 333,138,762 (47,006,328) (460,368,443) (2,070,485,942) (418,742,573) 320,116,073 (98,626,499)

Segment assets 9,773,635,037 2,244,884,945 5,167,265,832 2,810,475,552 12,187,543,246 1,843,553,481 3,508,327,583 2,490,899,627 2,407,970,765 5,808,492,987 9,640,106,676 57,883,155,730 3,679,667,075 61,562,822,805
Segment liabilities 4,692,046,614 819,562,190 1,473,492,058 1,966,168,576 9,083,288,250 711,620,294 15,460,132,101 1,223,638,642 4,203,135,996 5,206,289,058 11,496,978,754 56,336,352,533 (2,063,507,166) 54,272,845,367
 8. Property, plant and equipment

Plant and Furniture and Electrical and Office Motor Leased Under
In Taka Land Building Machinery fixture other appliances machinery Vehicles assets construction Total

Cost
Balance at 1 July 2019 2,291,813,194 617,375,511 1,896,474,288 248,729,063 252,265,052 109,498,086 871,746,286 10,642,993 1,994,251,297 8,292,795,770
Additions 128,981,624 188,109 13,048,578 1,093,831 20,563,946 9,534,132 26,971,801 - 1,084,097,686 1,284,479,707
Transfers - 207,427,765 50,304,077 4,489,194 292,606,831 - - - (554,827,867) -
Disposals - - - - - (87,475) (10,277,449) - - (10,364,924)
Balance at 30 June 2020 2,420,794,818 824,991,385 1,959,826,943 254,312,088 565,435,829 118,944,743 888,440,638 10,642,993 2,523,521,116 9,566,910,553

Balance at 1 July 2020 2,420,794,818 824,991,385 1,959,826,943 254,312,088 565,435,829 118,944,743 888,440,638 10,642,993 2,523,521,116 9,566,910,553
Additions 47,254,659 1,011,097 26,725,669 59,824,423 30,358,760 23,707,621 29,232,853 - 884,948,792 1,103,063,875
Transfers 138,256,902 16,397,458 318,594,086 8,702,691 27,026,273 - - - (508,977,409) -
Disposals/adjustments (51,582,247) - - (1,356,600) (284,213) 539,516 (1,525,920) (6,152,993) - (60,362,457)
Balance at 30 June 2021 2,554,724,132 842,399,940 2,305,146,698 321,482,602 622,536,649 143,191,880 916,147,571 4,490,000 2,899,492,499 10,609,611,971

Plant and Furniture and Electrical and Office Motor Leased Under
In Taka Land Building Machinery fixture other appliances machinery Vehicles assets construction Total

Revaluation
Balance at 1 July 2019 2,990,460,043 41,585,353 27,081,028 533,003 260,473 (34,846) 679 - - 3,059,885,733
Disposals - - - - - - - - - -
Balance at 30 June 2020 2,990,460,043 41,585,353 27,081,028 533,003 260,473 (34,846) 679 - - 3,059,885,733

Balance at 1 July 2020 2,990,460,043 41,585,353 27,081,028 533,003 260,473 (34,846) 679 - - 3,059,885,733
Additions for revaluation 1,737,611,301 - - - - - - - - 1,737,611,301
Disposals - - - - - - - - - -
Annual Report 2020-2021

Balance at 30 June 2021 4,728,071,344 41,585,353 27,081,028 533,003 260,473 (34,846) 679 - - 4,797,497,034
Page 103
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Annual Report 2020-2021

Plant and Furniture and Electrical and Office Motor Leased Under
In Taka Land Building Machinery fixture other appliances machinery Vehicles assets construction Total

Accumulated depreciation- Cost

Balance at 1 July 2019 - 53,417,058 668,168,022 84,981,378 81,713,886 56,000,590 481,521,912 10,642,993 - 1,436,445,839
Depreciation - 20,100,902 231,200,990 26,553,238 45,157,486 19,195,226 160,688,945 - - 502,896,787
Disposals - - - - - (69,353) (7,280,178) - - (7,349,531)
Adjustment - 503,817 13,536 - - - - - - 517,353
Balance at 30 June 2020 - 74,021,777 899,382,548 111,534,616 126,871,372 75,126,463 634,930,679 10,642,993 - 1,932,510,448

Balance at 1 July 2020 - 74,021,777 899,382,548 111,534,616 126,871,372 75,126,463 634,930,679 10,642,993 - 1,932,510,448
Depreciation - 22,039,246 229,784,203 29,114,972 60,262,474 20,326,260 125,257,647 - - 486,784,802
Disposals - - - (395,675) (200,119) - (6,439,328) - - (7,035,122)
Adjustment - 459,783 6,758 (48) 8,161 447,148 6,152,991 (6,152,993) - 921,800
Balance at 30 June 2021 - 96,520,806 1,129,173,509 140,253,865 186,941,888 95,899,871 759,901,989 4,490,000 - 2,413,181,928

Plant and Furniture and Electrical and Office Motor Leased Under
In Taka Land Building Machinery fixture other appliances machinery Vehicles assets construction Total

Accumulated depreciation- Revaluation

Balance at 1 July 2019 - 4,974,882 18,691,352 536,272 293,704 (34,296) 129 - - 24,462,043
Depreciation - 1,434,864 3,397,448 14,384 340 - - - - 4,847,036
Adjustment - (25,308) 48,768 - - - - - - 23,460
Balance at 30 June 2020 - 6,384,438 22,137,568 550,656 294,044 (34,296) 129 - - 29,332,539

Balance at 1 July 2020 - 6,384,438 22,137,568 550,656 294,044 (34,296) 129 - - 29,332,539
Depreciation - 1,437,361 2,693,032 (22,654) (19,291) - - - - 4,088,448
Adjustment - (25,308) 7,008 - - - - - - (18,300)
Balance at 30 June 2021 - 7,796,491 24,837,608 528,002 274,753 (34,296) 129 - - 33,402,687

Carrying amounts
At 1 July 2019 5,282,273,237 600,568,924 1,236,695,942 163,744,416 170,517,935 53,496,946 390,224,924 - 1,994,251,297 9,891,773,622
At 30 June 2020 5,411,254,861 786,170,523 1,065,387,855 142,759,819 438,530,886 43,817,730 253,510,509 - 2,523,521,116 10,664,953,300
At 30 June 2021 7,282,795,476 779,667,996 1,178,216,609 181,233,738 435,580,481 47,291,459 156,246,132 - 2,899,492,499 12,960,524,391

In 2021, the property, plant and equipment of the Company were revalued by the independent professional valuer Hoda Vasi Chowdhury & Co., Chartered Accountants. As per requirements
of BSEC Notification No. SEC/CMRRCD/2009-193/150/Admin, dated 18 August 2013, the revaluation report is presented in Annexure-A. Such revaluation was made with sufficient regularity
to ensure that carrying amount does not differ materially from their fair value. The items of property, plant and equipment were also revalued last in 2015, 2010, 2007 and 2004
accordingly.
 8(a) Consolidated property, plant and equipment

Plant and Furniture and Electrical and Office Motor Leased Under
In Taka Land Building Machinery fixture other appliances machinery Vehicles assets construction Total

Cost
Balance at 1 July 2019 3,465,337,244 1,841,543,791 6,181,426,612 1,215,620,521 721,938,921 869,416,354 1,303,211,050 55,089,077 8,889,027,258 24,542,610,829
Additions 226,528,584 9,569,932 20,817,235 27,286,006 27,411,427 22,016,722 42,880,971 - 2,364,241,216 2,740,752,094
Transfers/adjustments 179,586,501 3,506,506,767 2,187,988,678 98,452,242 346,396,556 48,090,121 11,103,087 (44,446,084) (6,216,189,033) 117,488,835
Disposals - - - (952,191) - (87,475) (10,277,449) - - (11,317,115)
Balance at 30 June 2020 3,871,452,329 5,357,620,490 8,390,232,525 1,340,406,579 1,095,746,904 939,435,722 1,346,917,660 10,642,993 5,037,079,441 27,389,534,644

Balance at 1 July 2020 3,871,452,329 5,357,620,490 8,390,232,525 1,340,406,579 1,095,746,904 939,435,722 1,346,917,660 10,642,993 5,037,079,441 27,389,534,644
Additions 52,316,293 3,158,759 114,084,835 104,883,358 38,795,668 35,783,399 51,550,155 - 1,520,722,310 1,921,294,777
Transfers 219,712,033 117,229,047 570,280,815 44,892,691 34,124,540 24,151,742 15,297,799 - (1,025,688,667) -
Disposals/adjustments (51,582,247) - - (836,349) 502,693 (1,679,342) (11,471,097) - - (65,066,343)
Balance at 30 June 2021 4,091,898,408 5,478,008,297 9,074,598,175 1,489,346,279 1,169,169,805 997,691,521 1,402,294,516 10,642,993 5,532,113,085 29,245,763,078

Plant and Furniture and Electrical and Office Motor Leased Under
In Taka Land Building Machinery fixture other appliances machinery Vehicles assets construction Total

Revaluation
Balance at 1 July 2019 4,916,954,004 92,607,599 40,396,112 3,184,225 3,801,216 502,163 137 - - 5,057,445,456
Disposals - - - - - - - - - -
Transfers/adjustments (179,263,790) (6,917,582) (390,659) (2,575,331) (2,292,694) (103,717) - - - (191,543,773)
Balance at 30 June 2020 4,737,690,214 85,690,017 40,005,453 608,894 1,508,522 398,446 137 - - 4,865,901,683

Balance at 1 July 2020 4,737,690,214 85,690,017 40,005,453 608,894 1,508,522 398,446 137 - - 4,865,901,683
Additions for revaluation 2,829,083,784 - - - - - - - - 2,829,083,784
Annual Report 2020-2021

Transfers - - - - - - - - - -
Balance at 30 June 2021 7,566,773,998 85,690,017 40,005,453 608,894 1,508,522 398,446 137 - - 7,694,985,467
Page 105
Page 106
Annual Report 2020-2021

Plant and Furniture and Electrical and Office Motor Leased Under
In Taka Land Building Machinery fixture other appliances machinery Vehicles assets construction Total

Accumulated depreciation- Cost

Balance at 1 July 2019 - 150,260,009 1,560,137,998 736,797,806 307,521,826 497,215,481 698,019,542 43,718,516 - 3,993,671,177
Depreciation - 134,157,605 820,170,840 134,803,423 99,611,036 114,893,598 237,457,768 - - 1,541,094,270
Disposals - - - - - (69,353) (7,280,178) - - (7,349,531)
Adjustment - 780,249 (3,416,242) 3,003,144 2,683,742 19,737,751 11,173,484 (33,075,523) - 886,605
Balance at 30 June 2020 - 285,197,862 2,376,892,595 874,604,373 409,816,604 631,777,477 939,370,616 10,642,993 - 5,528,302,522

Balance at 1 July 2020 - 285,197,862 2,376,892,595 874,604,373 409,816,604 631,777,477 939,370,616 10,642,993 - 5,528,302,522
Depreciation - 152,714,369 850,882,132 124,896,852 113,684,777 109,118,152 196,120,986 - - 1,547,417,267
Disposals - - - (395,675) (200,119) (537,368) (12,030,984) - - (13,164,145)
Adjustment - 459,783 6,758 663,052 490,305 (875,314) 4,253,322 - - 4,997,906
Balance at 30 June 2021 - 438,372,014 3,227,781,486 999,768,602 523,791,567 739,482,948 1,127,713,940 10,642,993 - 7,067,553,549

Plant and Furniture and Electrical and Office Motor Leased Under
In Taka Land Building Machinery fixture other appliances machinery Vehicles assets construction Total

Accumulated depreciation- Revaluation

Balance at 1 July 2019 - 9,564,095 24,288,680 643,114 844,506 297,005 127 - - 35,637,527
Depreciation - 2,657,217 5,138,784 27,784 133,531 55,333 - - - 8,012,649
Disposals - - - - - - - - - -
Adjustment - (301,739) 1,517,47 (73,814) (103,419) 14,47 - - - 1,052,98
5 8 1
Balance at 30 June 2020 - 11,919,573 30,944,939 597,084 874,618 366,816 127 - - 44,703,157

Balance at 1 July 2020 - 11,919,573 30,944,939 597,084 874,618 366,816 127 - - 44,703,157
Depreciation - 2,650,702 4,027,780 (8,979) 109,724 15,653 - - - 6,794,880
Disposals - - - - - - - - - -
Adjustment - (25,308) 7,00 - - - - - - (18,300)
8
Balance at 30 June 2021 - 14,544,967 34,979,727 588,105 984,342 382,469 127 - - 51,479,737

Carrying amounts
At 1 July 2019 8,382,291,248 1,774,327,287 4,637,396,046 481,363,826 417,373,805 372,406,031 605,191,518 11,370,561 8,889,027,258 25,570,747,581
At 30 June 2020 8,609,142,543 5,146,193,072 6,022,400,444 465,814,015 686,564,204 307,689,875 407,547,054 - 5,037,079,441 26,682,430,648
At 30 June 2021 11,658,672,406 5,110,781,333 5,851,842,416 489,598,466 645,902,418 258,224,549 274,580,585 - 5,532,113,085 29,821,715,259
9 Leases
The Group has rent agreements for depots, warehouses, outlets, and other uses for the business. Rent agreements
having non-cancellable (either by agreement or in substance) tenor of 12 months or more have been
charged through right of use assets. Short term rent agreements have been charged directly as expense.
Information about such leases for which the Group is a lessee is presented below:

i. Right-of-use assets

In Taka 30 June 2021 30 June 2020

Right-of-use assets 506,002,819 499,939,927

Additions during the year 199,435,085 126,983,978

ii. Lease liabilities

In Taka 30 June 2021 30 June 2020

Non-current portion of lease liabilities 378,647,480 388,549,474
Current portion of lease liabilities 175,644,292 141,728,247
554,291,772 530,277,721

iii. Reconciliation of rent expense

In Taka Note 30 June 2021 30 June 2020

Amount recognised in profit or loss
Charge on right-of-use rent agreements 33 193,372,193 189,542,826
Interest on lease liabilities 35 58,395,977 65,882,764
Expense for short term rents 33 43,119,172 57,402,432
Amount recognised in profit or loss under IFRS 16 294,887,342 312,828,022

Rent paid (excluding IFRS 16 adjustment) 295,701,855 305,459,995

9(a) Consolidated leases

i. Right-of-use assets

In Taka 30 June 2021 30 June 2020

Right-of-use assets 1,497,952,751 1,505,562,594

ii. Lease liabilities

In Taka 30 June 2021 30 June 2020

Non-current portion of lease liabilities 1,161,243,121 1,180,584,553
Current portion of lease liabilities 434,023,303 402,088,291
1,595,266,424 1,582,672,844

Annual Report 2020- Page

Page 108

10. Investments

i) Investment in shares
Annual Report 2020-2021

30 June 2021 30 June 2020

Face value Called and
Number of per paid up Share-
shares share capital per share holding Value Value
Taka Taka % Taka Taka
Investment in Subsidiaries
ACI Formulations Limited 24,066,105 10 10 53.48 66,872,823 66,872,823
ACI Salt Limited 233,000 1,000 1,000 77.67 155,000,000 155,000,000
ACI Foods Limited 2,850,000 100 100 99.30 285,000,000 285,000,000
ACI Pure Flour Limited 380,000 100 100 95.00 38,000,000 38,000,000
ACI Agrolink Limited 288,180 100 100 90.00 28,818,000 28,818,000
Creative Communication Limited 6,000 100 100 60.00 600,000 600,000
ACI Motors Limited 6,500,000 100 100 52.70 650,000 650,000
Premiaflex Plastics Limited 261,945 1,000 1,000 87.32 229,945,000 229,945,000
ACI Logistics Limited 273,600 1,000 1,000 76.00 273,600,000 273,600,000
ACI Healthcare Limited 46,469,000 10 10 92.94 464,690,000 464,690,000
ACI Edible Oils Limited 850,000 10 10 85.00 8,500,000 8,500,000
ACI Chemicals Limited 1,500,006 10 10 75.00 15,000,060 15,000,060
Infolytx Bangladesh Limited 600 100 100 60.00 100,060,000 100,060,000
ACI Biotech Limited 800,000 10 10 80.00 8,000,000 8,000,000
ACI Marine and Riverine Technologies Limited 7,700,000 10 10 77.00 77,000,000 77,000,000
1,751,735,883 1,751,735,883
Investment in Joint Ventures
ACI Godrej Agrovet (Pvt.) Limited 1,850,000 100 100 50.00 185,000,000 185,000,000
Tetley ACI (Bangladesh) Limited 2,500,000 100 100 50.00 325,000,000 325,000,000
510,000,000 510,000,000
Investment in Associates
Asian Consumer Care (Pvt.) Limited 8,480,187 10 10 24.00 115,205,895 115,205,895
ACI CO-RO Bangladesh Ltd 499,000 100 100 49.99 430,972,410 262,122,410
Computer Technology Limited 200 100 100 40.00 20,000 20,000
Stochastic Logic Limited 2,000 100 100 20.00 200,000 200,000
546,398,305 377,548,305
Investment in others
Mutual Trust Bank Limited 24,502,616 10 10 3.33 531,706,762 511,266,701
Central Depository Bangladesh Limited 1,142,362 10 10 0.58 3,138,890 3,138,890
534,845,652 514,405,591

ii) Other investment

Term deposit and others 70,544,338 70,550,338
70,544,338 70,550,338
3,413,524,178 3,224,240,117
Investment impairment provision (273,600,000) (273,600,000)
Total investment 3,139,924,178 2,950,640,117

Investment impairment provision is kept on investment in ACI Logistics Limited as it has been loss making since its inception, which led management to make this
impairment provision.
10(a) Consolidated investments 10(a).1 Equity-accounted investees

In Taka 30 June 2021 30 June 2020

Investment valued under equity method
ACI Godrej Agrovet (Pvt.) Limited 1,248,942,534 1,142,907,207
Tetley ACI (Bangladesh) Limited (15,873,992) (11,605,510)
Asian Consumer Care (Pvt.) Limited 290,049,768 279,489,768
ACI CO-RO Bangladesh Ltd 404,074,596 257,656,082
Stochastic Logic Limited 719,693 374,209
1,927,912,599 1,668,821,756
10(a).2 Other investments
In Taka 30 June 2021 30 June 2020
Investment valued at fair value
Mutual Trust Bank Limited 531,706,762 511,266,701
Investment Corporation of Bangladesh 671,675 671,675
Titas Gas Transmission and Distribution Company Limited 1,635,300 1,635,300
534,013,737 513,573,676
Investment not measured at fair value
Central Depository Bangladesh Limited 3,138,890 3,138,890
Computer Technology Limited 20,000 20,000
Term deposits and others 273,433,062 260,612,469
276,591,952 263,771,359
810,605,689 777,345,035

11 Intangible assets represent software used for the operation of ACI Limited.

11(a) Consolidated intangible assets

Product
Development Software Goodwill Total
In Taka
Cost
Balance at 1 July 2019 63,775,908 96,084,470 12,382,918 172,243,296
Additions - 31,508,381 - 31,508,381
Balance at 30 June 2020 63,775,908 127,592,852 12,382,918 203,751,678
Balance at 1 July 2020 63,775,908 127,592,852 12,382,918 203,751,678
Additions - - - -
Balance at 30 June 2021 63,775,908 127,592,852 12,382,918 203,751,678

Product
Development Software Goodwill Total
In Taka
Accumulated amortisation- Cost
Balance at 1 July 2019 19,608,971 42,221,450 7,235,126 69,065,546
Amortisation 6,377,591 12,625,347 - 19,002,938
Balance at 30 June 2020 25,986,562 54,846,797 7,235,126 88,068,484
Balance at 1 July 2020 25,986,562 54,846,797 7,235,126 88,068,484
Amortisation 6,377,592 15,365,142 - 21,742,734
Balance at 30 June 2021 32,364,154 70,211,938 7,235,126 109,811,218

Carrying amounts
At 1 July 2019 44,166,938 53,863,020 5,147,792 103,177,750
At 30 June 2020 37,789,347 72,746,055 5,147,792 115,683,193
At 30 June 2021 31,411,755 57,380,913 5,147,792 93,940,460

During the year no external or internal indication was found which may trigger impairment of intangible assets.

Annual Report 2020- Page

 12Biological assets
In Taka
30 June 2021 30 June 2020
Opening balance 10,914,869 -
Purchase during the year 8,673,414 9,977,215
Disposal during the year (2,125,171) (167,063)
Changes in fair value less costs to sell 314,997 1,104,717
17,778,109 10,914,869

Biological assets of the company consists breeding bulls.

12(a) Consolidated Biological assets

In Taka 30 June 2021 30 June 2020

Opening balance 10,914,869 -
Purchase during the year 8,673,414 9,977,215
Disposal during the year (2,125,171) (167,063)
Changes in fair value less costs to sell 314,997 1,104,717
17,778,109 10,914,869

13 Inventories

In Taka 30 June 2021 30 June 2020

Raw materials 2,461,745,999 1,524,250,712
Packing materials 687,805,645 531,723,670
Work in process 304,842,374 206,514,622
Finished goods 3,231,157,036 2,555,272,538
Goods in transit 447,601,957 533,456,702
Stores and spares 99,111,094 69,401,677
Allowance for inventories (458,944,547) (444,500,412)
6,773,319,558 4,976,119,509

As the Company deals in large number of items which vary in units, item-wise quantity statement of inventories
could not be given.

13(a) Consolidated inventories

In Taka 30 June 2021 30 June 2020

Raw materials 4,707,202,665 3,315,790,117
Packing materials 773,366,897 585,904,747
Work in process 540,242,287 345,348,458
Finished goods 10,092,333,932 7,649,100,333
Goods in transit 1,703,227,000 1,112,551,159
Stores and spares 257,384,662 205,310,780
Allowance for inventories (723,808,348) (668,333,945)
17,349,949,096 12,545,671,650

14 Trade receivables

30 June 2021 30 June 2020

Dues over Dues below
In Taka 6 months 6 months Total Total
Pharmaceuticals 114,654,015 434,878,556 549,532,571 533,231,791
Animal health 30,197,125 530,406,564 560,603,689 521,623,559
Consumer brands 1,537,154,746 169,559,227 1,706,713,973 2,549,139,105
Seeds 222,610,868 193,212,222 415,823,090 459,309,638
Fertilizer 85,966,242 164,300,547 250,266,789 289,297,411
Cropex 113,460,418 - 113,460,418 113,460,418
2,104,043,415 1,492,357,115 3,596,400,530 4,466,061,922
Provision for doubtful debts (685,886,118) (584,582,500)
2,910,514,412 3,881,479,422

As the Company deals with large number of parties, party-wise trade receivables could not be given and hence
business wise breakdown has been disclosed.

Page Annual Report 2020-

14(a) Consolidated trade receivables
30 June 2021 30 June 2020 Dues overDues below
In Taka6 months6 monthsTotalTotal

ACI Limited 2,104,043,415 1,492,357,115 3,596,400,530 4,466,061,922

ACI Formulations Limited 459,653,003 1,031,873,686 1,491,526,689 1,752,279,842
ACI Logistics Limited 88,533,773 59,022,515 147,556,289 106,078,770
ACI Salt Limited 1,585,822 34,393,690 35,979,512 28,558,949
ACI Foods Limited 133,898,040 151,236,109 285,134,149 297,526,418
ACI Pure Flour Limited 21,017,101 80,253,661 101,270,762 144,743,320
Premiaflex Plastics Limited 106,842,745 1,124,560,509 1,231,403,254 1,267,365,367
ACI Motors Limited 1,030,119,533 4,592,209,053 5,622,328,586 4,424,307,247
Creative Communication Limited 57,501,351 47,284,208 104,785,559 149,624,998
ACI Agrolink Limited 132,891,511 151,549,209 284,440,720 163,228,111
ACI Edible Oils Limited 1,404,886 44,153,674 45,558,560 13,748,991
ACI Chemicals Limited 2,334,935 2,237,354 4,572,289 20,004,660
ACI HealthCare Limited - 456,494,215 456,494,215 485,122,433
ACI Marine and Riverine Technologies Ltd. - 3,833,000 3,833,000 -
Infolytx Bangladesh Limited - 11,665,638 11,665,638 11,745,000
Consolidating elimination - (102,553,515) (102,553,515) (130,185,960)
4,139,826,116 9,180,570,121 13,320,396,236 13,200,210,068
Provision for doubtful debts (1,304,857,862) (987,291,239)
12,015,538,374 12,212,918,829

15 Other receivables
30 June 2021 30 June 2020
Dues over Dues below
In Taka 6 months 6 months Total Total
Les Laboratories Servier - 254,518,527 254,518,527 39,908,167
Transcom Distribution Limited - 17,138,501 17,138,501 23,888,800
Receivables from other entities 127,713,364 143,777,940 271,491,304 310,765,284
127,713,364 415,434,968 543,148,332 374,562,251

15(a) Consolidated other receivables

In Taka 30 June 2021 30 June 2020
Debts due over six months 278,279,280 290,765,427
Debts due below six months 537,153,988 379,353,768
815,433,268 670,119,195

16 Inter-company receivables
30 June 2021 30 June 2020
Dues over Dues below
In Taka 6 months 6 months Total Total
ACI Formulations Limited - 346,312,289 346,312,289 865,637,246
Computer Technology Limited 30,000 - 30,000 30,000
Tetley ACI (Bangladesh) Limited - 580,250 580,250 545,998
Asian Consumer Care (Pvt.) Limited 7,893,516 - 7,893,516 7,893,516
ACI Godrej Agrovet (Pvt.) Limited 929,726 - 929,726 938,598
ACI Foods Limited - 2,680,268,292 2,680,268,292 2,883,554,015
ACI Edible Oils Limited - 58,322,611 58,322,611 -
ACI Agrolink Limited 326,193,529 256,299,330 582,492,859 633,045,670
Stochastic Logic Limited 142,558 9,761 152,319 116,498
Premiaflex Plastics Limited - 2,802,197,558 2,802,197,558 2,463,633,553
Creative Communication Limited - 19,352,064 19,352,064 3,009,426
ACI Chemicals Limited 197,068,231 14,815,583 211,883,814 188,194,211
Infolytx Bangladesh Limited 359,587,680 88,176,899 447,764,579 335,373,809
ACI Logistics Limited 2,395,440,903 3,573,385,232 5,968,826,135 6,238,281,980
ACI Healthcare Limited 5,139,968,024 991,093,216 6,131,061,240 4,737,689,301
ACI Biotech Limited 831,983,171 52,188,346 884,171,517 788,595,396
9,259,237,338 10,883,001,431 20,142,238,769 19,146,539,217
Inter-company receivable is operated under normal course of business maintaining a common policy of charging interest
to ensure efficient fund management and optimise effective borrowing cost at group level following the group's policy on
fund utilisation and management to maximise interest of the shareholders.

Annual Report 2020- Page

16(a) Consolidated inter-company receivables
30 June 2021 30 June 2020 Dues overDues below
In Taka6 months6 monthsTotalTotal

Tetley ACI (Bangladesh) Limited - 580,250 580,250 545,998

Asian Consumer Care (Pvt.) Limited 7,893,516 - 7,893,516 7,893,516
Computer Technology Limited 30,000 - 30,000 30,000
ACI Godrej Agrovet (Pvt.) Limited 929,726 - 929,726 938,598
Stochastic Logic Limited 142,558 9,761 152,319 116,498
8,995,800 590,011 9,585,811 9,524,610

17 Advances, deposits and prepayments

In Taka 30 June 2021 30 June 2020
Advances
Staff 23,536,775 28,009,159
Suppliers, C&F agents and others 113,994,098 162,828,224
Rent 24,264,013 22,234,920
Bank guarantee margin 43,894,128 44,683,926
VAT current account 361,723,490 240,320,128
567,412,504 498,076,357
Deposits
Deposits for utilities 121,143,428 130,435,418
Tender deposits 117,971,484 85,490,017
239,114,912 215,925,435
Prepayments
Prepaid expenses 40,743,386 29,849,683

847,270,802 743,851,475

17(a) Consolidated advances, deposits and prepayments

In Taka 30 June 2021 30 June 2020
Advances
Staff 38,685,893 29,350,595
Suppliers and others 611,467,991 826,446,476
Rent 121,690,396 146,932,845
Bank guarantee margin and L/C margin 80,321,536 76,327,133
VAT current account 767,475,007 371,963,201
Advance for capital expenditure 732,589 9,240,679
1,620,373,412 1,460,260,929
Deposits
Deposits for utilities 261,797,267 257,835,759
Tender deposits 165,611,669 130,734,952
427,408,936 388,570,711
Prepayments
Prepaid expenses 253,159,205 233,170,260

2,300,941,553 2,082,001,900

18 Cash and cash equivalents

In Taka Note 30 June 2021 30 June 2020
Cash in hand 39,258,022 38,231,419
Collection in hand 18.1 138,581,715 192,855,786
Cash at banks 18.2 1,494,380,031 556,739,040
Cash and cash equivalents in the statement of 1,672,219,768 787,826,245
financial position
Bank overdrafts 24 (1,681,372,914) (2,502,962,921)
Cash and cash equivalents in the statement of cash flows (9,153,146) (1,715,136,676)

18.1 This represents cash in hand at depots which was collected against cash sales and collection instruments that were received
against credit sale at the end of the reporting period.

Page Annual Report 2020-

18.2Cash at banks
In Taka
30 June 2021 30 June 2020
AB Bank Limited 88,510,738 79,924,802
Agrani Bank Limited 24,140,861 12,157,671
Al-Arafah Islami Bank Limited 6,578,352 2,362,845
National Bank Limited 4,890 680
Bank Asia Limited 27,298,562 11,551,780
BRAC Bank Limited 3,539,964 12,603,504
Commercial Bank of Ceylon Plc 258,046,394 80,334,529
Dhaka Bank Limited 184,535,438 4,380,712
Dutch-Bangla Bank Limited 11,627,273 420,515
Eastern Bank Limited 14,277,601 9,009,602
National Credit and Commerce Bank Limited 5,471 -
Janata Bank Limited 18,336,062 23,299,818
Mercantile Bank Limited 11,101,395 12,927,452
Midland Bank Limited 154,683 5,056
Mutual Trust Bank Limited 27,304 751,238
NRB Bank Limited 326,843 293,989
ONE Bank Limited 6,778,804 11,050,408
Prime Bank Limited 23,927,338 15,462,357
Pubali Bank Limited 123,762,998 56,741,310
Sonali Bank Limited 39,509,396 18,364,741
Standard Chartered Bank 361,296,538 101,615,856
The City Bank Limited 5,932,419 3,099,590
The Hongkong and Shanghai Banking Corporation Limited 147,742,112 98,223,053
Trust Bank Limited 2,115,257 760
United Commercial Bank Limited 51,252 -
Uttara Bank Limited 6,744,790 1,507,245
Meghna Bank Limited 603,452 649,527
Community Bank Bangladesh Limited 111,853,951 -
Jamuna Bank Limited 15,549,893 -
1,494,380,031 556,739,040

18.3 Reconciliation of net operating cash flow

For the year ended

In Taka 30 June 2021 30 June 2020
Profit after tax 2,287,783,139 1,718,919,934
Adjustment for:
- Depreciation and amortisation 491,851,743 508,544,653
- Impairment provision - -
- Gain/loss on asset disposal (32,029,240) (2,538,853)
- Bad debt loss and inventory provision 115,747,753 119,210,284
- Net finance cost 294,475,492 750,563,708
- Income tax expense 798,915,511 627,814,269
- Contribution to WPPF 162,457,824 123,512,326
- IFRS 16 and other adjustments 172,571,733 163,097,749
Changes in:
- Inventories (1,811,644,184) 491,916,361
- Trade and other receivables 258,346,732 683,579,310
- Advances, deposits and prepayments (84,653,656) 1,338,568
- Trade and other payables & employment benefits (134,337,089) 662,525,544
Cash generated from operating activities 2,519,485,757 5,848,483,854
Paid to WPPF (70,766,042) (72,377,861)
Interest paid (249,907,794) (704,190,860)
Income tax paid (908,139,899) (579,892,952)
Net cash from operating activities 1,290,672,022 4,492,022,181

Annual Report 2020- Page

 18(a) Consolidated short term investments
In Taka
30 June 2021 30 June 2020

Investment in FDR 1,158,369,377 1,070,000,000

1,158,369,377 1,070,000,000

18(b) Consolidated cash and cash equivalents

In Taka Note 30 June 2021 30 June 2020

Cash in hand 75,134,071 73,760,981

Collection in hand 486,695,421 626,231,010
Cash at banks 3,270,099,429 1,112,929,602
Cash and cash equivalents in the consolidated
statement of financial position 3,831,928,920 1,812,921,593
Bank overdrafts 24(a) (3,543,943,716) (4,440,893,673)
Cash and cash equivalents in the consolidated
statement of cash flows 287,985,204 (2,627,972,080)

18 (c) Reconciliation of Consolidated net operating cash flow

For the year ended

In Taka 30 June 2021 30 June 2020

Profit/(loss) after tax 437,062,696 (1,322,355,684)

Adjustment for:
- Depreciation and amortisation 1,575,954,881 1,553,320,873
- Bad debt loss and inventory provision 373,041,026 347,439,116
- Share of profit of equity accounted investees (472,515,593) (367,008,180)
- Net finance cost 3,552,575,030 4,571,407,759
- Tax expense 1,750,073,874 1,223,729,185
- Contribution to WPPF 291,774,335 225,641,786
- Gain/loss on asset disposal (33,367,728) (2,680,617)
- IFRS 16 and other adjustments 408,535,150 407,540,816

Changes in:
- Inventories (4,859,751,848) 851,765,809
- Trade and other receivables (265,500,241) 1,268,922,039
- Advances, deposits and prepayments (218,939,653) (310,743,868)
- Trade and other payables & employment benefits 562,927,978 2,036,821,854
Cash generated from operating activities 3,101,869,907 10,483,800,888

Paid to WPPF (135,640,501) (134,609,898)

Interest paid (2,631,406,154) (3,967,539,139)
Income tax paid (2,219,168,717) (1,631,861,449)
Net cash from operating activities (1,884,345,465) 4,749,790,401

Page Annual Report 2020-

 19 Share capital

In Taka 30 June 2021 30 June 2020

In issue at the opening 573,729,555 498,895,265
Bonus share issued 57,372,945 74,834,290
In issue at reporting date - fully paid 631,102,500 573,729,555
Authorised - par value Tk. 10 1,500,000,000 1,500,000,000

Number and percentage of shareholdings:

Number of shares Percentage of shareholding

30 June 2021 30 June 2020 30 June 2021 30 June 2020
Directors & sponsors 22,265,856 20,241,691 35.28% 35.28%
Institutions 27,162,781 23,270,739 43.04% 40.56%
General shareholders 13,681,613 13,860,525 21.68% 24.16%
63,110,250 57,372,955 100.00% 100.00%

A distribution schedule of the above shares is given below as required by the Listing Rules:

Number of Number of Percentage of shareholdings of total

shareholders shares number of shares
30 June 30 June 30 June 30 June 30 June 30 June
Number of shareholdings 2021 2020 2021 2020 2021 2020
Less than 500 10,236 11,413 1,356,978 1,502,184 2.15% 2.62%
501 - 5,000 2,572 3,014 3,670,507 4,169,446 5.82% 7.27%
5,001 - 10,000 183 187 1,295,116 1,298,185 2.05% 2.26%
10,001 - 20,000 117 123 1,673,050 1,690,455 2.65% 2.95%
Annual Report 2020-2021

20,001 - 30,000 37 37 931,476 918,046 1.48% 1.60%

30,001 - 40,000 23 24 793,943 823,153 1.26% 1.43%
40,001 - 50,000 13 12 590,162 543,034 0.94% 0.95%
50,001 - 100,000 33 25 2,490,557 1,797,447 3.95% 3.13%
100,001 - 1,000,000 26 27 8,584,534 9,079,962 13.60% 15.83%
Over - 1,000,000 11 11 41,723,927 35,551,043 66.11% 61.96%
13,251 14,873 63,110,250 57,372,955 100.00% 100.00%
Page 115
 20Reserves
In Taka
Note 30 June 2021 30 June 2020

Capital reserve 1,671,386 1,671,386

Revaluation reserve 4,711,244,501 3,075,540,948
FVOCI reserve 20.1 453,051,685 434,655,631
5,165,967,572 3,511,867,965

20.1 FVOCI reserve

Changes in fair Fair value
Number of Market value Cost of Movement in value of reserve as at
shares held of shares investment fair value financial assets reporting date
In Taka In Taka In Taka In Taka In Taka
30 June 2020 21,214,386 511,266,701 28,316,000 482,950,701 (134,720,938) 434,655,631
30 June 2021 24,502,616 531,706,762 28,316,000 503,390,762 20,440,061 453,051,685

This available for sale reserve is for investment in shares of Mutual Trust Bank Limited.

20(a) Consolidated reserves

In Taka 30 June 2021 30 June 2020

Capital reserve 1,671,386 1,671,386

Translation reserve (1,396,614) (1,396,614)
Revaluation reserve 6,632,367,409 4,277,933,521
FVOCI reserve 452,006,810 433,046,593
7,084,648,991 4,711,254,886

21 Employee benefits
In Taka Note 30 June 2021 30 June 2020

Net defined benefit obligations 21.1 920,330,000 932,887,197

Other long term employee benefits 203,015,409 148,005,399
Employees group insurance fund 400,000 400,000
1,123,745,409 1,081,292,596

21.1 Net defined benefit obligations

In Taka 30 June 2021 30 June 2020

Opening balance 932,887,197 798,775,062

Provision made through profit or loss during the year 243,296,250 167,347,594
Remeasurement recognized through OCI 14,320,000 -
Paid during the year (270,173,447) (33,235,459)
Closing balance 920,330,000 932,887,197

Page Annual Report 2020-

21.1.1 Actuarial gain/loss on remeasurement of defined benefit obligations and plan assets:
In Taka30 June 202130 June 2020

Amount recognized in Statement of Financial Position:

Defined benefit obligation 1,164,567,935 -
Less: Fair value of plan assets (244,237,935) -
Net defined benefit obligation 920,330,000 -
Movement in defined benefit obligation:
Defined benefit obligation at the end of prior year 932,887,197 -
Service cost 165,116,250 -
Interest cost on obligation 78,180,000 -
Benefits paid out (25,935,512) -
(Gain)/losses on remeasurement 14,320,000 -
Defined benefit obligation at the reporting date 1,164,567,935 -
Movement in fair value of plan assets:
Fair value of plan assets at the end of prior year - -
Interest on plan assets - -
Contributions received from employer 244,237,935 -
Benefits paid out from plan assets - -
(Gain)/losses on remeasurement - -
Fair value of plan assets at the reporting date 244,237,935 -
The Company operates a gratuity scheme which became a funded and recognized gratuity fund during the year
ended in 30 June 2021. Hence, remeasurement information is provided only for the year.

21(a) Consolidated employee benefits

In Taka 30 June 2021 30 June 2020
Net defined benefit obligations 1,181,776,393 1,152,626,201
Other long term employee benefits 280,698,666 213,992,070
Employees group insurance fund 400,000 400,000
1,462,875,059 1,367,018,271

22 Long term bank loans

In Taka 30 June 2021 30 June 2020
Prime Bank Limited 99,874,356 -
Dhaka Bank Limited 78,490,722 79,510,805
Dutch-Bangla Bank Limited 866,354,487 450,510,791
Eastern Bank Limited - 41,794,331
1,044,719,565 571,815,927

22(a) Consolidated long term bank loans

In Taka 30 June 2021 30 June 2020
Bank Asia Limited 41,206,946 197,837,482
Brac Bank Limited 414,347,150 582,263,081
Dhaka Bank Limited 1,696,171,836 1,392,870,584
Dutch-Bangla Bank Limited 2,106,444,113 1,689,677,624
Eastern Bank Limited 2,598,052 94,641,852
Jamuna Bank Limited 97,134,377 144,950,656
Mercantile Bank Limited 690,190,017 1,024,925,485
Midland Bank Limited - 275,157,494
National Bank Limited 1,103,697,906 1,071,383,650
Prime Bank Limited 1,215,485,647 1,288,076,671
Pubali Bank Limited - 220,977,456
The City Bank Limited - 5,654,707
Islamic Finance and Investment Limited 166,083,807 -
Trust Bank Limited 310,387,322 273,684,180
United Commercial Bank Limited - 9,666,779
7,843,747,173 8,271,767,701

Annual Report 2020- Page

 23Deferred tax liabilities/(assets)

In Taka Note 30 June 2021 30 June 2020

Opening balance (214,067,035) (86,566,880)

Deferred tax (income)/expense recognised through profit or loss 36 24,556,667 (114,028,061)
Deferred tax (income)/expense recognised through OCI 100,729,754 (13,472,094)
Closing balance (88,780,615) (214,067,035)

Details of deferred tax liabilities/(assets)

Carrying Taxable/ Deferred tax

amount on (deductible) liabilities/
In Taka reporting date Tax base temporary difference (assets)
At 30 June 2021
Property, plant and equipment
(other than land and under construction) 2,778,236,416 2,022,852,642 755,383,774 169,961,349
Land 7,282,795,476 - 7,282,795,476 237,104,215
Provision for inventories (458,944,547) - (458,944,547) (103,262,523)
Provision for trade receivables (685,886,118) - (685,886,118) (154,324,377)
Investment impairment provision (273,600,000) - (273,600,000) (61,560,000)
Provision for gratuity (920,330,000) - (920,330,000) (207,074,250)
FVOCI reserve 503,390,762 - 503,390,762 50,339,076
Temporary difference for IFRS 16: Lease (88,729,356) - (88,729,356) (19,964,105)
Taxable temporary differences 8,136,932,633 2,022,852,642 6,114,079,991 (88,780,615)

Carrying Taxable/ Deferred tax

amount on (deductible) liabilities/
In Taka reporting date Tax base temporary difference (assets)
At 30 June 2020
Property, plant and equipment
(other than land and under construction) 2,730,177,323 1,995,297,635 734,879,688 183,719,922
Land 5,411,254,861 - 5,411,254,861 135,196,467
Provision for inventories (444,500,412) - (444,500,412) (111,125,103)
Provision for trade receivables (584,582,500) - (584,582,500) (146,145,625)
Investment impairment provision (273,600,000) - (273,600,000) (68,400,000)
Provision for gratuity (932,887,197) - (932,887,197) (233,221,799)
FVOCI reserve 482,950,701 - 482,950,701 48,295,070
Temporary difference for IFRS 16: Lease (89,543,869) - (89,543,869) (22,385,967)
Taxable temporary differences 6,299,268,907 1,995,297,635 4,303,971,272 (214,067,035)

Applicable tax rate for:

Land 3% - 4%
FVOCI reserve 10%
Other than land and FVOCI reserve FY 2020-21: 22.5% and FY 2019-20: 25%

23(a) Consolidated deferred tax liabilities/(assets)

In Taka 30 June 2021 30 June 2020

Opening balance (398,906,932) 74,445,704

Deferred tax (income)/expense recognised through profit or loss (195,924,013) (460,512,750)
Deferred tax (income)/expense recognised through OCI 143,065,602 (13,533,839)
Consolidation adjustments 3,760,798 693,953
Balance at reporting date (448,004,545) (398,906,932)

Page Annual Report 2020-

24Bank overdraft
In Taka
30 June 2021 30 June 2020
Agrani Bank Limited 878,929,665 927,605,293
Bank Alfalah Limited 8,282,019 120,349,528
BRAC Bank Limited 28,290,765 37,488,267
Commercial Bank of Ceylon Plc. 37,734,025 27,105,209
Dutch Bangla Bank Limited 15,057,086 99,007,440
Eastern Bank Limited - 30,900,125
Mercantile Bank Limited 20,360,362 166,388,716
National Credit and Commerce Bank Limited 3,743,710 250,271,385
Meghna Bank Limited 11,533,642 1,438,632
NRB Bank Limited 34,883,658 44,305,809
Community Bank Bangladesh Limited 19,677,758 -
ONE Bank Limited 30,347,082 80,212,154
Prime Bank Limited 111,661,493 65,356,162
Standard Chartered Bank 382,764,203 -
The City Bank Limited 28,414,995 190,251,177
The Hongkong and Shanghai Banking Corporation Limited - -
The Premier Bank Limited 43,123,722 408,421,636
United Commercial Bank Limited 26,568,729 50,481,641
Jamuna Bank Limited - 680,205
1,681,372,914 2,502,962,921

24(a) Consolidated bank overdraft

In Taka 30 June 2021 30 June 2020

AB Bank Limited 19,677,758 -
Bengal Commercial Bank Limited 99,787,500 -
Agrani Bank Limited 1,079,329,665 927,605,293
Bank Alfalah Limited 8,317,920 120,349,528
Bank Asia Limited 70,065,078 146,293,830
BRAC Bank Limited 38,471,828 60,712,276
Commercial Bank of Ceylon Plc. 52,233,617 47,933,888
Dutch Bangla Bank Limited 176,740,386 233,436,994
Eastern Bank Limited - 61,038,127
The Hongkong and Shanghai Banking Corporation Limited (13,574,848) (1,148,751)
Trust Bank Limited 186,473,232 195,296,559
Mercantile Bank Limited 20,360,362 166,388,716
Midland Bank Limited 14,639,082 143,414,277
National Bank Limited 141,052,121 144,273,731
National Credit and Commerce Bank Limited 3,743,710 250,271,385
NRB Bank Limited 34,883,658 44,305,809
ONE Bank Limited 130,882,232 182,285,832
Prime Bank Limited 169,938,210 222,168,057
Pubali Bank Limited 412,928,958 386,054,317
Standard Chartered Bank 387,407,309 41,545,877
The City Bank Limited 28,414,995 203,158,319
The Premier Bank Limited 43,123,722 408,421,636
United Commercial Bank Limited 222,832,789 253,635,335
Jamuna Bank Limited 204,680,792 202,014,006
Meghna Bank Limited 11,533,642 1,438,632
3,543,943,716 4,440,893,673

25 Loans and borrowings - short term

In Taka Note 30 June 2021 30 June 2020

Short term loan 25.1 16,894,891,697 11,906,970,943
Current portion of long term loan 25.2 173,717,800 227,405,222
17,068,609,497 12,134,376,165

Annual Report 2020- Page

 25.1Short term loan
In Taka
30 June 2021 30 June 2020
Agrani Bank Limited 152,309,569 -
Meghna Bank Limited 872,274,950 4,314,240
Al-Arafah Islami Bank Limited 511,290,533 1,000,000,000
Bank Asia Limited 1,130,797,415 555,776,317
Bank Alfalah Limited 300,000,000 214,699,081
BRAC Bank Limited 950,780,227 697,586,613
Commercial Bank of Ceylon Plc 1,582,090,906 1,230,025,002
Dhaka Bank Limited 972,915,887 947,938,272
Dutch Bangla Bank Limited 1,369,130,462 391,629,012
The Hongkong and Shanghai Banking Corporation Limited - -
Jamuna Bank Limited 1,017,046,429 547,599,735
Community Bank Bangladesh Limited 100,000,000 -
NRB Bank Limited 138,072,029 810,000,000
ONE Bank Limited 671,990,166 200,000,000
Prime Bank Limited 344,968,036 374,700,040
Pubali Bank Limited 3,071,162,923 834,458,037
Standard Chartered Bank 100,000,000 161,543,492
The City Bank Limited 832,798,151 2,232,775,244
IPDC Finance Limited 1,000,000,000 500,000,000
United Commercial Bank Limited 204,738,529 403,925,858
Uttara Bank Limited 972,525,485 800,000,000
Mercantile Bank Limited 600,000,000 -
16,894,891,697 11,906,970,943

25.2 Current portion of long term loan

In Taka 30 June 2021 30 June 2020

Dhaka Bank Limited 19,403,339 34,439,849
Dutch Bangla Bank Limited 154,314,461 148,310,473
Eastern Bank Limited - 44,654,900
173,717,800 227,405,222

ACI Limited has following facility arrangements with banks as at 30 June 2021:

Revolving Trust
Overdraft Short-term Long-term loan Receipt Limit/ Bank
In Taka limits facilities limits limits Letter of credit guarantee
Agrani Bank Limited 1,500,000,000 150,000,000 - 500,000,000 10,000,000
Bank Alfalah Limited 120,000,000 300,000,000 - 320,000,000 -
Bank Asia Limited - 190,000,000 - 850,000,000 100,000,000
BRAC Bank limited 60,000,000 750,000,000 - 600,000,000 30,000,000
Commercial Bank of Ceylon Plc. 30,000,000 690,000,000 - 1,000,000,000 -
Dhaka Bank Limited - 880,000,000 79,900,000 1,000,000,000 10,000,000
Dutch Bangla Bank Limited 150,000,000 1,095,000,000 1,350,000,000 600,000,000 20,000,000
Eastern Bank Limited - - - - -
HSBC 50,000,000 300,000,000 - 300,000,000 5,000,000
Jamuna Bank Limited - 600,000,000 - 750,000,000 10,000,000
Mercantile Bank Limited 500,000,000 200,000,000 - 4,000,000,000 10,000,000
NCC Bank Limited 250,000,000 - - - -
NRB Bank Limited 50,000,000 335,000,000 - 200,000,000 -
ONE Bank Limited 50,000,000 200,000,000 - 1,200,000,000 10,000,000
Premier Bank Limited 400,000,000 - - 2,000,000,000 -
Prime Bank Limited 260,000,000 190,000,000 500,000,000 2,000,000,000 50,000,000
Pubali Bank Limited 500,000,000 3,000,000,000 - 600,000,000 210,000,000
Standard Chartered Bank 80,000,000 100,000,000 - 149,000,000 24,500,000
The City Bank Limited 20,000,000 300,000,000 - 3,000,000,000 10,000,000
Trust Bank Limited - - - 250,000,000 -
United Commercial Bank Ltd 50,000,000 600,000,000 - 50,000,000 10,000,000
Uttara Bank Limited - 950,000,000 - - -
Meghna Bank Limited 20,000,000 880,000,000 - 1,000,000,000 20,000,000
Al-Arafah Islami Bank Limited - 1,000,000,000 - 1,000,000,000 200,000,000
IPDC Finance Limited - 1,000,000,000 - - -
Community Bank Limited 250,000,000 200,000,000 - 100,000,000 -

Page Annual Report 2020-

 Securities for the facilities mentioned above are as below:
a) Demand promissory notes for BDT 27,363.50 million
b) Registered hypothecation over inventories and accounts receivables on pari-passu basis for BDT 14,585.00 million.
c) Corporate guarantee issued to Agrani Bank Limited by ACI Formulations Limited, ACI Pure Flour and ACI Salt Limited
& PPL.
d) Corporate guarantee issued to One Bank Limited by ACI Salt Limited & ACI Motors Ltd.
e) Corporate guarantee issued to Premier Bank Limited by ACI Salt Limited.
f) Corporate guarantee issued to Dutch Bangla Bank Limited by ACI Salt Limited, ACI Foods Limited, ACI Motors Limited,
Premiaflex Plastics Ltd. & Neem Laboratories Ltd.
g) Corporate guarantee issued to Uttara Bank Limited by ACI Salt Limited.
h) Post dated Cheque BDT 16,910.00 million to Agrani Bank Ltd, Bank Aisa Ltd, BRAC Bank Ltd, Dhaka Bank Ltd, DBBL,
Jamuna Bank Ltd, Mercantile Bank Ltd, NRB Bank Ltd, NCC Bank Ltd, Prime Bank Ltd, Pubali Bank Ltd, UCBL, Meghna
Bank Ltd. & AIBL.

25(a) Consolidated loans and borrowings - short term

In Taka Note 30 June 2021 30 June 2020
Short term loan 25(a).1 32,274,988,314 22,822,007,267
Current portion of long term loan 25(a).2 2,241,433,061 4,466,281,007
34,516,421,376 27,288,288,273

25(a).1 Consolidated short term loan

In Taka 30 June 2021 30 June 2020
Community Bank Bangladesh Limited 100,000,000 -
South Bangla Agriculture & Commerce Bank Limited 500,238,411 -
Bengal Commercial Bank Limited 200,000,000 -
Premier Bank Limited 35,919,387 359,648,957
Meghna Bank Limited 872,274,950 4,314,240
Agrani Bank Limited 152,309,569 -
Bank Alfalah Limited 300,000,000 214,699,081
Bank Asia Limited 2,410,369,732 2,378,527,499
BRAC Bank Limited 1,453,219,207 771,862,415
Commercial Bank of Ceylon Plc. 2,428,185,965 2,054,418,596
Dhaka Bank Limited 974,045,187 1,048,009,872
Dutch Bangla Bank Limited 1,909,623,507 995,529,553
Eastern Bank Limited 1,037,476,203 872,885
Al-Arafah Islami Bank Limited 511,290,533 1,000,000,000
Jamuna Bank Limited 1,019,751,075 551,576,652
Mercantile Bank Limited 4,029,651,283 2,031,511,804
Midland Bank Limited 348,237,610 97,955,957
National Bank Limited 244,379,595 153,410,906
NRB Bank Limited 138,072,029 889,079,169
ONE Bank Limited 671,990,166 303,042,063
Prime Bank Limited 649,136,492 1,483,093,279
Pubali Bank Limited 5,438,729,194 1,615,270,944
Standard Chartered Bank 100,000,000 237,441,492
The City Bank Limited 1,245,221,615 3,080,347,863
Trust Bank Limited 1,619,131,141 774,267,183
United Commercial Bank Limited 204,738,529 403,925,858
Uttara Bank Limited 972,525,485 800,000,000
IPDC Finance Limited 1,076,301,003 500,000,000
Loans and borrowings of foreign subsidiary 1,632,170,444 1,073,200,998
32,274,988,314 22,822,007,267

Annual Report 2020- Page

 25(a).2 Consolidated current portion of long term loan
In Taka
30 June 2021 30 June 2020
Brac Bank Limited 130,804,291 535,152,881
Bank Asia Limited 9,566,800 650,359,563
Dhaka Bank Limited 81,944,247 96,980,757
Dutch Bangla Bank Limited 803,883,436 816,050,430
Eastern Bank Limited 138,468,330 289,568,511
Islamic Finance and Investment Limited 31,448,982
Jamuna Bank Limited 110,979,848 106,907,974
Mercantile Bank Limited 204,742,558 657,812,489
Midland Bank Limited - 185,877,017
National Bank Limited 231,500,437 269,343,199
Prime Bank Limited 245,476,296 442,209,790
Pubali Bank Limited 24,242,137 136,113,840
The City Bank Limited - 28,666,222
Trust Bank Limited 225,853,930 221,524,159
United Commercial Bank Limited 2,521,769 29,714,174
2,241,433,061 4,466,281,007

26 Trade payables
In Taka 30 June 2021 30 June 2020
Payable to suppliers 1,371,346,761 1,497,795,622
1,371,346,761 1,497,795,622

Trade payable consists of balances owing to large number of suppliers and thus supplier-wise detailed break up has not
been given.

26(a) Consolidated trade payables

In Taka 30 June 2021 30 June 2020
ACI Limited 1,371,346,761 1,497,795,622
ACI Formulations Limited 121,742,263 119,962,071
ACI Logistics Limited 1,712,672,679 1,476,733,199
ACI Salt Limited 56,514,671 80,027,746
ACI Foods Limited 505,277,823 582,572,823
ACI Pure Flour Limited 163,815,143 240,985,881
Premiaflex Plastics Limited 200,584,117 114,362,861
ACI Motors Limited 150,594,536 64,119,082
ACI Agrolink Limited 38,656,110 11,431,057
ACI Edible Oils Limited 77,765,808 23,188,341
ACI Marine and Riverine Technologies Limited 8,000 -
ACI HealthCare Limited 244,232,394 816,379,769
Consolidating elimination (102,553,515) (130,185,960)
4,540,656,791 4,897,372,492

27 Other payables
In Taka Note 30 June 2021 30 June 2020
Accruals 1,581,956,650 1,689,212,376
Advance from customers 241,778,422 140,664,279
Security money received from customers 49,768,812 75,840,906
Workers' profit participation fund 27.1 742,851,695 608,199,565
Tax and VAT deducted at source 88,517,766 113,636,950
Employees welfare fund 292,091,060 262,053,505
Rights share deposit to be refunded 563,723 563,723
Family day fund 5,491,898 4,836,517
Non-management staff provident fund 6,106,934 6,816,876
Unclaimed refund warrant - Zero Coupon Bonds 3,647,450 3,647,450
Payable for redemption of Zero Coupon Bonds 20,403,480 20,403,480
Management staff provident fund 8,930,423 20,894,390
Advertisement and promotional funds 16,747,296 17,735,713
Development funds 12,440,218 8,159,008
3,071,295,827 2,972,664,738

Page Annual Report 2020-

27.1Workers' profit participation fund
In Taka
30 June 2021 30 June 2020
Opening balance 608,199,565 510,692,251
Addition during the year 162,457,824 123,512,326
Interest accrued during the year 42,960,349 46,372,848
Paid during the year (70,766,042) (72,377,861)
Closing balance 742,851,695 608,199,565

27(a) Consolidated other payables

In Taka Note 30 June 2021 30 June 2020
Accruals 4,443,911,513 3,819,442,853
Advance from customers 1,186,755,872 565,443,519
Security money received from customers 103,128,923 127,569,775
Workers' profit participation fund 27(a).1 1,006,003,259 796,687,072
Management staff provident fund 8,930,423 20,894,390
Tax and VAT deducted at source 172,566,198 233,834,210
Employees welfare fund 312,658,843 282,585,407
Rights share deposit to be refunded 563,723 563,723
Family day fund 5,491,898 4,836,517
Non-management staff provident fund 6,106,934 6,816,876
Unclaimed refund warrant - Zero Coupon Bonds 3,647,450 3,647,450
Payable for redemption of Zero Coupon Bonds 20,403,480 20,403,480
Creditors for capital expenditure 4,553,405 7,141,381
Advertisement and promotional funds 16,747,296 17,735,713
Development funds 12,440,218 8,159,008
7,303,909,434 5,915,761,374

27(a).1 Workers' profit participation fund

In Taka 30 June 2021 30 June 2020
Opening balance 796,687,072 652,019,207
Addition during the year 291,774,335 225,641,786
Interest accrued during the year 53,182,354 53,635,977
Paid during the year (135,640,501) (134,609,898)
Closing balance 1,006,003,259 796,687,072

28 Unclaimed dividend account

In Taka 30 June 2021 30 June 2020
Unclaimed/unpaid dividend 118,208,225 160,950,794
118,208,225 160,950,794

28(a) Consolidated unclaimed dividend account

In Taka 30 June 2021 30 June 2020
Unclaimed/unpaid dividend 131,177,139 173,531,474
131,177,139 173,531,474

29 Inter-company payable
In Taka 30 June 2021 30 June 2020
ACI Salt Limited 1,434,750,203 1,294,345,923
ACI Marine and Riverine Technologies Limited 4,472,099 12,186,583
ACI Edible Oils Limited - 55,020,873
ACI Motors Limited 2,252,704,788 4,923,968,028
ACI Pure Flour Limited 577,137,993 553,167,320
4,269,065,083 6,838,688,727

Annual Report 2020- Page

 30 Current tax liabilities
In Taka
Note 30 June 2021 30 June 2020

Opening balance 2,495,876,067 1,754,033,737

Provision made during the year 774,358,844 741,842,330
3,270,234,911 2,495,876,067
Advance income tax paid 30.1 (2,861,396,532) (1,953,256,633)
Closing balance 408,838,379 542,619,434

30.1 Advance income tax

In Taka 30 June 2021 30 June 2020
Opening balance 1,953,256,633 1,373,363,681
Paid during the year 908,139,899 579,892,952
Closing balance 2,861,396,532 1,953,256,633

30(a) Consolidated current tax liabilities

In Taka 30 June 2021 30 June 2020
Opening balance 5,678,144,188 3,993,902,253
Provision made during the year 1,945,997,887 1,684,241,935
7,624,142,075 5,678,144,188
Advance income tax paid (7,565,534,437) (5,342,604,922)
Closing balance 58,607,638 335,539,266

31 Revenue

For the year ended For the year ended

In Taka Note 30 June 2021 30 June 2020
Pharmaceuticals 31.1 12,240,594,488 11,761,464,286
Animal Health 4,384,659,861 3,644,230,956
Consumer brands 6,656,354,664 5,638,144,438
Seeds (Local) 1,014,205,025 510,958,118
Seeds (Import) 306,570,145 786,685,459
Fertilizer 956,956,722 792,798,889
Animal Genetics and others 170,934,917 67,694,872
25,730,275,822 23,201,977,018

For the year ended For the year ended

In Taka 30 June 2021 30 June 2020
Local sales 25,138,202,240 22,902,382,302
Export sales 592,073,582 299,594,716
25,730,275,822 23,201,977,018

31.1 Pharmaceuticals
Pharmaceuticals turnover includes sales of the following in units:

For the year ended For the year ended

Quantity 30 June 2021 30 June 2020
Tablets Pcs 27,340,584 28,133,847
Capsules Pcs 6,687,197 6,919,805
Injection Pcs 4,310,522 4,097,509
Bottled products Pcs 42,115,049 41,002,144
Creams Pcs 11,426,431 11,134,340
Inhaler Pcs 1,189,203 1,274,466
Others Pcs 377,662 481,720

31(a) Consolidated revenue

For the year ended For the year ended
In Taka 30 June 2021 30 June 2020
Gross sales 82,418,224,654 70,987,381,828
Inter-company sales (1,669,821,488) (1,512,094,024)
80,748,403,165 69,475,287,805

Page Annual Report 2020-

 32 Cost of sales

For the year ended For the year ended

In Taka 30 June 2021 30 June 2020

Opening stock of finished goods 2,555,272,537 3,393,364,172

Cost of goods manufactured 9,301,995,380 7,441,074,756
Finished goods purchased 5,732,182,268 4,217,706,085
Cost of finished goods available for sale 17,589,450,185 15,052,145,013
Stock of finished goods as at reporting date (3,231,157,035) (2,555,272,537)
14,358,293,150 12,496,872,476

Business wise breakup of cost of sales

For the year ended

For the year ended 30 June 2021
30 June 2020
Consumer Animal Animal Genetics
In Taka Note Pharmaceuticals brands Health Seeds Fertilizer and others Total Total
Annual Report 2020-2021
Page 125
Opening stock of finished goods 579,276,492 717,761,539 637,741,920 547,376,614 52,383,863 20,732,109 2,555,272,537 3,393,364,172
Cost of goods manufactured 32.1 5,662,932,624 2,180,955,441 634,543,180 111,732,810 678,400,841 33,430,484 9,301,995,380 7,441,074,756
Finished goods purchased 83,201 2,222,097,495 2,496,155,919 957,712,936 18,485,021 37,647,696 5,732,182,268 4,217,706,085
Cost of finished goods available for sale 6,242,292,317 5,120,814,475 3,768,441,019 1,616,822,360 749,269,725 91,810,289 17,589,450,185 15,052,145,013
Closing stock of finished goods (957,685,382) (695,284,438) (919,027,520) (574,417,354) (55,636,099) (29,106,242) (3,231,157,035) (2,555,272,537)
Inter business adjustment (762,789,862) 625,023,953 137,765,909 - - - - -
4,521,817,073 5,050,553,990 2,987,179,408 1,042,405,006 693,633,626 62,704,047 14,358,293,150 12,496,872,476
Page 126

32.1 Cost of goods manufactured

For the year ended

For the year ended 30 June 2021
Annual Report 2020-2021

30 June 2020
Consumer Animal Animal Genetics
In Taka Note Pharmaceuticals brands Health Seeds Fertilizer and others Total Total

Cost of materials consumed 32.1.1 4,315,068,237 1,730,005,685 546,156,249 58,987,515 655,890,641 - 7,306,108,327 5,887,376,759
Manufacturing expenses 33 1,080,326,469 285,935,079 133,116,675 101,640,728 25,969,349 33,586,122 1,660,574,422 1,373,582,799
Quality control and development expenses 33 255,793,245 140,184 24,696 - - - 255,958,125 240,141,728
Cost of samples, product bonus and stock write-off 64,279,522 164,874,493 (47,366,033) (490,937) (3,459,149) (155,638) 177,682,258 (92,888,754)
Cost of production 5,715,467,473 2,180,955,441 631,931,587 160,137,306 678,400,841 33,430,484 9,400,323,132 7,408,212,532

Opening work in process 118,878,140 - 8,787,418 78,849,064 - - 206,514,622 239,376,846

Closing work in process (171,412,989) - (6,175,825) (127,253,560) - - (304,842,374) (206,514,622)
(52,534,849) - 2,611,593 (48,404,496) - - (98,327,752) 32,862,224
5,662,932,624 2,180,955,441 634,543,180 111,732,810 678,400,841 33,430,484 9,301,995,380 7,441,074,756

32.1.1 Cost of materials

consumed
For the year ended
For the year ended 30 June 2021
30 June 2020
Consumer Animal Animal Genetics
In Taka Pharmaceuticals brands Health Seeds Fertilizer and others Total Total

Raw and packing materials

Opening stock 1,130,617,574 443,236,185 388,243,524 33,301,908 60,575,192 - 2,055,974,383 1,876,119,326
Purchase 5,074,946,885 2,067,644,503 530,621,089 59,394,277 667,078,834 - 8,399,685,588 6,067,231,816
Closing stock (1,890,496,222) (780,875,003) (372,708,364) (33,708,670) (71,763,385) - (3,149,551,644) (2,055,974,383)
4,315,068,237 1,730,005,685 546,156,249 58,987,515 655,890,641 - 7,306,108,327 5,887,376,759

32(a) Consolidated cost of sales

For the year ended For the year ended

In Taka 30 June 2021 30 June 2020

Opening stock 11,902,573,689 13,147,583,866

Purchase 59,281,945,913 45,199,289,643
Manufacturing expenses 3,964,857,695 3,547,474,023
Closing stock (16,116,691,220) (11,902,573,689)
59,032,686,076 49,991,773,844
 33 Administrative, selling and distribution expenses

For the year ended For the year ended

In Taka 30 June 2021 30 June 2020

(a) Administrative expenses 570,436,761 446,611,166

(b) Distribution expenses 994,682,401 905,992,601
(c) Selling expenses 6,781,480,335 6,613,889,097
8,346,599,497 7,966,492,864

Allocation of expenses:
For the year
For the year ended 30 June 2021 ended
30 June
2020
Administrative Distribution Manufacturing QC and development Selling
In Taka expenses expenses expenses expenses expenses Total Total

Salary and wages 438,258,816 308,859,723 596,728,266 163,221,937 3,094,905,936 4,601,974,678 4,213,525,757
Traveling and conveyance 2,901,423 167,821,259 7,074,659 78,808 516,852,219 694,728,367 708,256,897
Service charge, rates and fees 6,357,906 2,611,036 358,971,591 - 40,629,302 408,569,835 218,492,103
Expense for short term rents 212,382 10,449,015 11,181,606 - 21,276,169 43,119,172 57,402,432
Charge on right-of-use rent agreements 11,144,904 41,097,862 32,052,216 - 109,077,210 193,372,193 189,542,826
Repairs and maintenance 12,566,058 15,314,403 137,348,365 12,050,823 12,477,475 189,757,125 166,822,684
Fuel and power 16,381,296 100,593,884 169,560,967 8,556,381 41,163,443 336,255,971 308,854,128
Postage and telecommunication 11,112,509 6,486,523 3,086,538 1,266,726 55,844,477 77,796,773 80,942,015
Printing and stationary 3,675,838 34,296,020 8,813,687 1,183,834 81,773,661 129,743,040 198,322,960
Publicity and advertisement 14,455,218 - 383,017 - 1,249,624,588 1,264,462,823 872,614,420
Business promotion 1,651,524 - - - 78,964,011 80,615,535 162,576,374
Conference expenses - - - - 3,323,315 3,323,315 92,187,875
Clinical, customer and field demonstration expenses - - - - 448,274,350 448,274,350 545,304,787
Sample expenses - - - - 100,153,462 100,153,462 102,928,986
Warranty expenses - - - - 22,871,262 22,871,262 24,927,900
Publications and literatures 260,384 - - - 202,070,250 202,330,634 131,094,947
Entertainment 6,406,971 11,933,051 2,627,500 33,499 13,163,006 34,164,027 49,289,186
Vehicle maintenance 5,204,092 29,394,289 1,743,302 650,067 40,754,787 77,746,537 69,656,079
Bad debt expenses - - - - 107,055,955 107,055,955 112,878,294
Carriage and handling - 208,048,332 16,175,746 3,800 173,413,198 397,641,075 360,740,454
Legal and professional charges 6,394,467 6,389 - - 3,873,952 10,274,808 14,283,209
Audit fees 1,089,000 - - - - 1,089,000 1,089,000
Insurance 2,016,758 14,127,553 17,441,958 327,626 10,965,197 44,879,092 44,616,171
Annual Report 2020-2021

Directors' fees 36,000 - - - - 36,000 97,000

Bank charges 1,794 2,784,899 - - 7,019,449 9,806,141 10,353,609
Sundry expenses 591,658 429,135 9,000 15,000 706,592 1,751,385 918,570
Product development expenses - - 430,068 3,318,770 51,830,256 55,579,094 48,747,219
Training expenses 988,941 92,260 85,997 168,223 11,549,874 12,885,295 23,848,067
Depreciation 23,707,772 40,336,768 277,673,491 27,520,628 121,634,591 490,873,250 507,743,823
Amortisation 114,817 - 863,676 - - 978,493 800,830
Lab chemical and apparatus - - 17,119,227 37,561,892 15,276,357 69,957,476 54,633,212
Meeting expenses 2,109,514 - 335 110 56,236,644 58,346,603 111,168,211
Export expenses - - - - 75,240,124 75,240,124 36,442,473
ISO/TQM related expenses - - 1,095,210 - - 1,095,210 1,129,381
Market research expenses - - - - 11,949,225 11,949,225 51,768,511
Page 127

Corporate Social Responsibility expenses 2,796,718 - 108,000 - 1,530,000 4,434,718 6,217,000

570,436,761 994,682,401 1,660,574,422 255,958,125 6,781,480,335 10,263,132,042 9,580,217,391
33(a) Consolidated administrative, selling and distribution expenses

For the year ended For the year ended

In Taka30 June 202130 June 2020

Administrative expenses 2,993,453,658 2,804,992,318

Distribution expenses 2,131,743,421 1,812,762,539
Selling expenses 11,341,848,056 10,795,978,195
16,467,045,135 15,413,733,052

34 Other income/(loss)

For the year ended For the year ended

In Taka 30 June 2021 30 June 2020

Service charges 16,816,105 16,575,795

Dividend income 442,727,703 386,787,273
Rental income 1,392,000 1,482,250
Gain/(loss) on sale of fixed assets 32,029,240 2,538,853
Capital gain on transfer of shares - 57,327,590
Gain (loss) on biological assets (222,173) 1,104,717
Gain/(loss) from foreign currency transactions (284,633) 3,284,345
Proceeds from scrap sale 12,420,491 9,444,112
Miscellaneous income 13,370,057 3,653,625
518,248,791 482,198,559

34(a) Consolidated other income/(loss)

For the year ended For the year ended

In Taka 30 June 2021 30 June 2020

Service charges 16,816,105 16,575,795

Dividend received 12,320,743 2,855,905
Rental income 36,183,404 41,274,217
Gain/(loss) on sale of fixed assets 33,367,728 2,680,617
Gain (loss) on biological assets (222,173) 1,104,717
Gain/(loss) from foreign currency transactions (2,453,692) (1,233,618)
Proceeds from scrap sale 48,201,818 64,736,317
Commission income 2,559,425 3,534,535
Miscellaneous income 163,525,029 130,105,472
310,298,388 261,633,957

35 Net finance costs

For the year ended For the year ended

In Taka 30 June 2021 30 June 2020

Bank loan interest (net of interest income) 185,243,456 631,490,561

Employee welfare fund 5,070,490 453,242
Interest on lease liabilities 58,395,977 65,882,764
Security deposits 2,477,571 5,632,092
Workers' profit participation fund 42,960,349 46,372,848
Other funds/borrowings 327,649 732,201
294,475,492 750,563,708

Page Annual Report 2020-

35(a) Consolidated net finance costs

For the year ended For the year ended

In Taka 30 June 2021 30 June 2020

Bank loan interest 3,324,395,546 4,389,634,357

Employee welfare fund 5,070,490 453,242
Interest on lease liabilities 177,343,425 128,583,019
Security deposits 2,477,571 5,632,092
Workers' profit participation fund 42,960,349 46,372,848
Other funds/borrowings 327,649 732,201
3,552,575,030 4,571,407,759

36 Income tax expense

For the year ended For the year ended

In Taka 30 June 2021 30 June 2020

Current tax expense:

Provision made during the year 774,358,844 741,842,330

Deferred tax expense/(income):

Change in deferred tax assets/liabilities 24,556,667 (114,028,061)
Income tax expense 798,915,511 627,814,269

36.10 Reconciliation of effective tax rate

For the year ended For the year ended

In Taka 30 June 2021 30 June 2020

Regular tax rate of the company 22.50% 25.00%

Effect of exemption and reduced rates -0.79% -1.24%
Effect of minimum tax, disallowances and others 3.38% 7.85%
Effect of deferred tax on temporary differences 0.80% -4.86%
Effective tax rate 25.88% 26.75%

36(a) Consolidated income tax expense

For the year ended For the year ended

In Taka 30 June 2021 30 June 2020

Current tax expense

Provision made during the year 1,945,997,887 1,684,241,935

Deferred tax expense/(income)

Change in deferred tax assets/liabilities (195,924,013) (460,512,750)
Consolidated income tax expense 1,750,073,874 1,223,729,185

Annual Report 2020- Page

Calculation of EPS, NAV per share, NOCF per share

Earnings per share

The calculation of basic earnings per share based on profit of the Company attributable to
ordinary shareholders and weighted average number of ordinary shares outstanding is as follows:

For the year ended For the year ended

In Taka/Number 30 June 2021 30 June 2020

Profit of the Company (Taka) 2,287,783,139 1,718,919,934

Opening ordinary shares (Number) 57,372,956 49,889,527

Impact of bonus share issue - 2018-2019 (Number) - 7,483,429
Impact of bonus share issue - 2019 - 2020 (Number) 5,737,295 5,737,295
Weighted average number of ordinary shares at reporting date (Number) 63,110,250 63,110,250
Earnings per share (Taka) 36.25 27.24

37.2 Diluted earnings per share

As there was no scope for dilution of shares, no diluted EPS was required to be calculated for the year
ended 30 June 2021.

37.1(a) Consolidated earnings per share

The calculation of consolidated basic earnings per share based on profit attributable to the equity
holders of the Company and weighted average number of ordinary shares outstanding is as follows:

For the year ended For the year ended

In Taka/Number 30 June 2021 30 June 2020

Profit/(loss) attributable to equity holders of the Company (Taka) 347,170,658 (1,058,758,906)

Weighted average number of ordinary shares at reporting date (Number) 63,110,250 63,110,250
Earnings per share (Taka) 5.50 (16.78)

37.3 NAV per share and NOCF per share

30 June 30 June
In Taka/Number 2021 2020

Net asset attributable to equity holders of the Company (Taka) 18,893,035,284 15,421,234,178
Net cash flows from operating activities (Taka) 1,290,672,022 4,492,022,181
Weighted average number of ordinary shares at reporting date (Number) 63,110,250 63,110,250
Net Asset Value (NAV) per share 299.37 244.35
Net Operating Cash Flows Per Share (NOCFPS) 20.45 71.18

37.3(a) Consolidated NAV per share and Consolidated NOCF per share

30 June 30 June
In Taka/Number 2021 2020

Consolidated net asset attributable to equity holders of the Company (Taka) 10,264,843,567 7,898,638,152
Consolidated net cash flows from operating activities (Taka) (1,884,345,465) 4,749,790,401
Weighted average number of ordinary shares at reporting date (Number) 63,110,250 63,110,250
Consolidated Net Asset Value (NAV) per share 162.65 125.16
Consolidated Net Operating Cash Flows Per Share (NOCFPS) (29.86) 75.26

Page Annual Report 2020-

38Financial risk management
The Company has exposure to the following risks arising from financial instruments:
● Credit risk (see 38(ii))
● Liquidity risk (see 38(iii))
● Market risk (see 38(iv))

(i) Risk management framework

The Group's management has overall responsibility for the establishment and oversight of the Group's risk
management framework. The Group’s risk management policies are established to identify and analyse these risks
faced by the Group, to set appropriate risk limits and controls and to monitor risks and adhere to limits. Risk
management policies and systems are reviewed regularly to reflect changes in market conditions and the Group’s
activities. The Group, through its training and management standards and procedures, aims to maintain a
disciplined and constructive control environment in which all employees understand their roles and obligations.

(ii) Credit risk

Credit risk is the risk of a financial loss to the Group if a customer or counterparty to a financial instrument fails to
meet its contractual obligations.
The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer.
However, management also considers the factors that may influence the credit risk of its customer base, including
the default risk of the industry and country in which customers operate.
The maximum exposure to credit risk is represented by the carrying amount of each financial asset in
the statement of financial position.

(a) Exposure to credit risk

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit
risk at the reporting date was:

In Taka Note 30 June 2021 30 June 2020

Trade receivables* 14(a) 13,217,267,314 13,072,640,293
Other receivables 15(a) 815,433,268 670,119,195
Inter-company receivables 16(a) 9,585,811 9,524,610
Deposits 17(a) 427,408,936 388,570,711
Cash and cash equivalents 18(b) 3,831,928,920 1,812,921,593
18,301,624,248 15,953,776,402
* Trade receivables is net off of security money mentioned in Note 27(a)

At reporting dates, the maximum exposure to credit risk for trade receivables by geographic regions was as
follows:

In Taka 30 June 2021 30 June 2020

Domestic 12,979,547,753 12,975,159,515
Foreign 340,848,483 225,050,553
13,320,396,236 13,200,210,068

(b) Impairment
The ageing of trade receivables was as follows:

In Taka 30 June 2021 30 June 2020

Dues below 6 months 9,180,570,121 8,503,579,345
Dues over 6 months 4,139,826,116 4,696,630,723
13,320,396,236 13,200,210,068

The movement in the allowance for impairment in respect of trade receivables during the year was as follows:

In Taka 30 June 2021 30 June 2020

Opening balance 987,291,239 802,503,348
Impairment loss recognised during the year 317,566,623 184,787,891
Closing balance 1,304,857,862 987,291,239

Annual Report 2020- Page

 (iii) Liquidity risk
Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its
financial liabilities that are settled by delivering cash or another financial asset. The Group’s approach to managing
liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due,
under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s
reputation.
The Group aims to maintain the level of its cash and cash equivalents and other investments at amounts in excess
of expected cash outflows on financial liabilities. The Group also monitors the level of expected cash inflows
on trade and other receivables together with expected cash outflows on trade and other payables.

Exposure to liquidity risk

The following are the remaining contractual maturities of financial liabilities at the reporting date.

30 June 2021

Contractual cash flows

Carrying 12 months More than
In Taka Note amount Total or less 12 months

Non-derivative financial liabilities

Long term bank loan 22(a) 7,843,747,173 7,843,747,173 - 7,843,747,173
Bank overdraft 24(a) 3,543,943,716 3,543,943,716 3,543,943,716 -
Loans and borrowings 25(a) 34,516,421,376 34,516,421,376 34,516,421,376 -
Lease liabilities 9(a) 1,595,266,424 1,595,266,424 434,023,303 1,161,243,121
Trade payables 26(a) 4,540,656,791 4,540,656,791 4,540,656,791 -
Other payables 27(a) 7,303,909,434 7,303,909,434 7,303,909,434 -
Unclaimed dividend account 28(a) 131,177,139 131,177,139 131,177,139 -
59,475,122,054 59,475,122,054 50,470,131,760 9,004,990,294
Derivative financial liabilities - - - -
59,475,122,054 59,475,122,054 50,470,131,760 9,004,990,294

30 June 2020

Contractual cash flows

Carrying 12 months More than
In Taka Note amount Total or less 12 months

Non-derivative financial liabilities

Long term bank loan 22(a) 8,271,767,701 8,271,767,701 - 8,271,767,701
Bank overdraft 24(a) 4,440,893,673 4,440,893,673 4,440,893,673 -
Loans and borrowings 25(a) 27,288,288,273 27,288,288,273 27,288,288,273 -
Lease liabilities 9(a) 1,582,672,844 1,582,672,844 402,088,291 1,180,584,553
Trade payables 26(a) 4,897,372,492 4,897,372,492 4,897,372,492 -
Other payables 27(a) 5,915,761,374 5,915,761,374 5,915,761,374 -
Unclaimed dividend account 28(a) 173,531,474 173,531,474 173,531,474 -
52,570,287,831 52,570,287,831 43,117,935,577 9,452,352,254
Derivative financial liabilities - - - -
52,570,287,831 52,570,287,831 43,117,935,577 9,452,352,254

Page Annual Report 2020-

(iv) 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. The
objective of market risk management is to manage and control market risk exposures within
acceptable parameters, while optimising the return.
a) Currency risk
The Group is exposed to currency risk to the extent that there is a mismatch between the currencies in
which transactions are denominated and the respective functional currency of the Group. The
functional currency of the Group is Bangladesh Taka (Taka/TK/BDT).
Exposure to currency risk
The Group's exposure to foreign currency risk arising from foreign currency denominated
assets/(liabilities) as at the date of consolidated statement of financial position was as follows:

In USD 30 June 2021 30 June 2020

Trade receivables 4,012,342 2,649,212
Other receivables 545,336 678,924
Cash and cash equivalents 3,386,430 1,430,437
Trade payables (3,979,986) (602,320)
Loans and borrowings (131,211,661) (67,611,381)
Net exposure (127,247,538) (63,455,128)

In EUR 30 June 2021 30 June 2020

Trade receivables - -
Other receivables 775,780 473,156
Cash and cash equivalents 1,429 2,209
Trade payables (2,170,924) (560,515)
Loans and borrowings (2,675,773) (1,046,502)
Net exposure (4,069,488) (1,131,653)

In GBP 30 June 2021 30 June 2020

Trade receivables - -
Other receivables - -
Cash and cash equivalents 2,207 1,430
Trade payables - (2,741)
Loans and borrowings (91,725) -
Net exposure (89,518) (1,311)

In CHF 30 June 2021 30 June 2020

Trade receivables - -
Other receivables - -
Cash and cash equivalents - -
Trade payables - -
Loans and borrowings - (21,379)
Net exposure - (21,379)

Annual Report 2020- Page

 The following significant exchange rates have been applied during the year/period:

Average rate Year-end rate

For the year For the year
In Taka ended ended As at
30 June 2021 30 June 2020 30 June 2021 30 June 2020
USD 84.95 84.73 84.95 84.95
EUR 100.52 97.54 103.33 97.72
GBP 113.53 107.82 120.10 106.96

Sensitivity analysis
A reasonably possible strengthening (weakening) of foreign currency against functional currency at reporting
date would have affected the measurement of financial instruments denominated in a foreign currency and
affected equity and profit or loss by the amounts shown below. This analysis assumes that all
other variables, in particular interest rates, remain constant and ignore any impact of forecast sales and
purchase.

Equity, net of tax

Profit/(loss) increase/(decrease)
In Taka Strengthening Weakening Strengthening Weakening
30 June 2021
USD (5% movement) 540,483,919 (540,483,919) 540,483,919 (540,483,919)
EUR (5% movement) 20,454,021 (20,454,021) 20,454,021 (20,454,021)
GBP (5% movement) 508,161 (508,161) 508,161 (508,161)

30 June 2020
USD (5% movement) 268,811,785 (268,811,785) 268,811,785 (268,811,785)
EUR (5% movement) 5,518,928 (5,518,928) 5,518,928 (5,518,928)
GBP (5% movement) 7,067 (7,067) 7,067 (7,067)

b) Interest rate risk

Interest rate risk is the risk that arises due to changes in interest rates on borrowings. At present the Group
has no borrowings which is subject to significant interest rate risk.

Exposure to interest rate risk

The interest rate profile of the Group's interest-bearing financial instruments as at the date of consolidated
statement of financial position date is as follows.

In Taka Note 30 June 2021 30 June 2020

Fixed rate instruments
Financial assets
Term deposit 10(a).2 273,433,062 260,612,469
Financial liabilities
Bank overdraft 24(a) 3,543,943,716 4,440,893,673
Loans and borrowings 25(a) 23,132,340,153 21,513,296,242
Variable rate instruments
Financial liabilities
Offshore loan 25(a) 11,384,081,223 5,774,992,031

Page Annual Report 2020-

 v) Financial instruments - Fair values and financial risk management
Accounting classifications and fair values
The following table shows the carrying amounts and fair values, where applicable, of financial assets and financial liabilities of the Group, including their levels in the fair value hierarchy.
It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.

30 June 2021

Carrying amount Fair value

Investment Fair value- Financial
valued at hedging Mandatorily Assets at FVOCI-equity Other financial
In Taka Note cost instruments at FVTPL Amortised instruments liabilities Total Level 1 Level 2 Level 3 Total
cost

Financial assets measured at fair value

Investment valued at fair value 10(a).2 - - - - 534,013,737 - 534,013,737 534,013,737 - - 534,013,737
- - - - 534,013,737 - 534,013,737 534,013,737 - - 534,013,737

Financial assets not measured at fair value

Other Investments 10(a).2 3,158,890 - - 273,433,062 - 276,591,952
Trade receivables 14(a) - - - 12,015,538,374 - - 12,015,538,374
Other receivables 15(a) - - - 815,433,268 - - 815,433,268
Inter-company receivables 16(a) - - - 9,585,811 - - 9,585,811
Tender deposits 17(a) - - - 165,611,669 - - 165,611,669
Short term investments 18(a) - - - 1,158,369,377 - - 1,158,369,377
Cash at banks 18(b) - - - 3,270,099,429 - - 3,270,099,429
- - - 17,708,070,989 - - 17,711,229,879 - - - -

Financial liabilities measured at fair value - - - - - - - - - - -

Financial liabilities not measured at fair value

Short term interest bearing loans 25(a).1 - - - - - 32,274,988,314 32,274,988,314
Annual Report 2020-2021

Long term interest bearing loans 22(a), 25(a).2 - - - - - 10,085,180,234 10,085,180,234

Trade payables 26(a) - - - - - 4,540,656,791 4,540,656,791
Other payables 27(a) - - - - - 7,303,909,434 7,303,909,434
Bank overdraft 24(a) - - - - - 3,543,943,716 3,543,943,716
Unclaimed dividend account 28(a) - - - - - 131,177,139 131,177,139
- - - - - 57,879,855,629 57,879,855,629 - - - -
Page 135
Page 136

30 June 2020
Annual Report 2020-2021

Carrying amount Fair value

Investment Fair value- Financial Assets
valued at hedging Mandatorily at Amortised FVOCI-equity Other financial
In Taka Note cost instruments at FVTPL cost instruments liabilities Total Level 1 Level 2 Level 3 Total

Financial assets measured at fair value

Investment valued at fair value 10(a).2 - - - - 513,573,676 - 513,573,676 513,573,676 - - 513,573,676
- - - - 513,573,676 - 513,573,676 513,573,676 - - 513,573,676

Financial assets not measured at fair value

Other Investments 10(a).2 3,158,890 - - 260,612,469 - - 263,771,359
Trade receivables 14(a) - - - 12,212,918,829 - - 12,212,918,829
Other receivables 15(a) - - - 670,119,195 - - 670,119,195
Inter-company receivables 16(a) - - - 9,524,610 - - 9,524,610
Tender deposits 17(a) - - - 130,734,952 - - 130,734,952
Short term investments 18(a) - - - 1,070,000,000 - - 1,070,000,000
Cash at banks 18(b) - - - 1,112,929,602 - - 1,112,929,602
3,158,890 - - 15,466,839,657 - - 15,469,998,547 - - - -

Financial liabilities measured at fair value - - - - - - - - - - -

Financial liabilities not measured at fair value

Short term interest bearing loans 25(a).1 - - - - - 22,822,007,267 22,822,007,267
Long term interest bearing loans 22(a), 25(a).2 - - - - - 12,738,048,708 12,738,048,708
Trade payables 26(a) - - - - - 4,897,372,492 4,897,372,492
Other payables 27(a) - - - - - 5,915,761,374 5,915,761,374
Bank overdraft 24(a) - - - - - 4,440,893,673 4,440,893,673
Unclaimed dividend account 28(a) - - - - - 173,531,474 173,531,474
- - - - - 50,987,614,987 50,987,614,987 - - - -
Commitments
Capital expenditure
In Taka
30 June 2021 30 June 2020
Capital expenditure commitments 516,188,793 1,338,203,366
Above amount represents capital expenditure approved but not contracted for and also, capital expenditure
contracted but yet to be accounted for.

40 Contingencies
In Taka 30 June 2021 30 June 2020
Bank/Bond/Shipping Gurantee
Standard Chartered Bank 2,288,949 191,544
Eastern Bank Limited 2,611,752 11,121,409
Mercantile Bank Limited 404,620 -
Brac Bank Limited 3,888,878 3,888,878
Prime Bank Limited 14,095,421 14,087,900
Bank Asia Limited 23,727,488 23,014,236
Pubali Bank Limited 228,303,970 39,144,044
Dutch Bangla Bank Limited 2,800,000 13,450,000
The City Bank Limited - 1,001,854
278,121,079 105,899,865

In addition, ACI Limited and its subsidiaries issued Corporate Guarantee in favor of each other to meet the
funding procedures of different Banks. However, management believes that the possibility of any outflow in
settlement of these Corporate Guarantee is remote.

41 Payments made in foreign currencies

For the year For the year
ended ended
In Taka 30 June 2021 30 June 2020
Raw materials and packing materials 4,695,701,983 3,533,139,909
Finished goods 2,678,045,738 2,328,896,197
7,373,747,722 5,862,036,106

42 Production capacity
Capacity in units pack
per 8hr/month Utilisation
For the year For the year For the year For the year
ended ended ended ended
30 June 2021 30 June 2020 30 June 2021 30 June 2020
Pharmaceuticals 6,000,000 6,000,000 122.33% 131.19%
Consumer Brand 1,200,000 800,000 117.99% 130.77%
Animal Health 300,000 300,000 97.86% 84.06%

43 Related parties
a) Transactions with key management personnel
(i) Loans to directors
During the period/year, no loan was given to the directors of the Company/Group.

(ii) Key management personnel compensation

Key management personnel compensation comprised the following:

For the year For the year

ended ended
In Taka 30 June 2021 30 June 2020
Salary 48,322,184 45,782,104
Benefit 13,601,342 13,533,192
61,923,526 59,315,296
The Company’s/Group's key management personnel includes the Company's/Group's directors. Compensation
includes salaries, non-cash benefits, and contributions to a post employment defined benefit plan.

Annual Report 2020- Page

Page 138

(b) Other related party transactions of ACI Limited:

Annual Report 2020-2021

Transactions during the period / year

For the year For the year For the year For the Balance outstanding
year ended ended ended ended at reporting date
In Taka 30 June 2021 30 June 2020 30 June 2021 30 June 2020 30 June 2021 30 June 2020
(Purchase)/Revenue Working capital (paid)/collected Receivable/(Payable)
Subsidiaries:

ACI Formulations Limited - - 519,324,957 288,096,318 346,312,289 865,637,246

ACI Salt Limited (7,000,800) (36,456,945) 133,403,480 565,044,856 (1,434,750,203) (1,294,345,923)
ACI Chemicals Limited - - (23,689,603) (54,279,462) 211,883,814 188,194,211
ACI Biotech Limited - - (95,576,121) (305,874,772) 884,171,517 788,595,396
ACI Pure Flour Limited - (388,449) 23,970,673 19,490,556 (577,137,993) (553,167,320)
ACI Foods Limited (14,122,667) (10,836,673) 189,163,056 (64,497,929) 2,680,268,292 2,883,554,015
ACI Marine and Riverine Technologies Limited - - (7,714,484) 12,186,583 (4,472,099) (12,186,583)
ACI Agrolink Limited - - 50,552,811 (237,897,958) 582,492,859 633,045,670
Creative Communication Limited (41,702,758) (27,883,232) (58,045,396) (10,890,530) 19,352,064 3,009,426
ACI Motors Limited (27,831,676) (4,314,478) (2,699,094,916) 1,606,342,041 (2,252,704,788) (4,923,968,028)
Premiaflex Plastics Limited (141,368,301) (131,079,152) (479,932,306) (764,555,785) 2,802,197,558 2,463,633,553
ACI Logistics Limited (51,007,092) (33,564,864) 479,606,134 (1,668,765,499) 5,968,826,135 6,238,281,980
261,157,381 268,108,502 - - - -
ACI Edible Oils Limited (2,112,212) (7,574,512) (111,231,272) 52,309,121 58,322,611 (55,020,873)
Computer Technology Limited - - - - 30,000 30,000
ACI Healthcare Limited - - (1,393,371,939) (1,254,203,670) 6,131,061,240 4,737,689,301
Infolytx Bangladesh Limited - - (112,390,770) (124,283,688) 447,764,579 335,373,809

Joint Venturers:

Tetley ACI (Bangladesh) Limited - - (34,252) 39,383,906 580,250 545,998

ACI Godrej Agrovet (Pvt.) Limited - - 8,872 (58,872) 929,726 938,598

Associates:

Stochastic Logic Limited - - (35,821) 1,734,221 152,319 116,498

Asian Consumer Care (Pvt.) Limited - - - - 7,893,516 7,893,516
ACI CO-RO Bangladesh Ltd. 77,363,309 - - - - -
Other disclosures

Number of employees

The number of regular employees of ACI Limited receiving remuneration of Tk. 36,000 or above
per annum at reporting date was as follows:

30 June 2021 30 June 2020

Number of employees 9,380 8,364

44.2 Comparatives
Previous year's figures have been rearranged, whenever considered necessary to conform to the
current year's presentation. Specifically, the Company has segregated/rearranged classification
of expenses in accordance with their nature.

44.3 Subsequent events

The Board of Directors in their meeting held on 28 October 2021 have recommended cash
dividend @Taka 6.5 per share of Taka 10 each aggregating to Taka 410,216,625 and stock
dividend @15% aggregating to Taka 94,665,375 for the year ended 30 June 2021 subject to
approval of the shareholders in the Annual General Meeting scheduled to be held on 26 December
2021.
The financial statements for the year ended 30 June 2021 do not include the effect of these dividends
which will be accounted for in the period when shareholders' right to receive payment is established.
There are no other events identified after the date of the statement of financial position which require
adjustment or disclosure in the accompanying financial statements.

Annual Report 2020- Page

45Name of auditors of the group companies

Sl. Name of the company Status Name of auditors

1 ACI Formulations Limited Subsidiary A. Wahab & Co.
2 ACI Salt Limited Subsidiary Hoda Vasi Chowdhury & Co.
3 ACI Motors Limited Subsidiary Hoda Vasi Chowdhury & Co.
4 ACI Logistics Limited Subsidiary Rahman Rahman Huq
5 ACI HealthCare Limited Subsidiary Rahman Rahman Huq
6 ACI Godrej Agrovet (Pvt.) Limited Joint venture Rahman Rahman Huq
7 Tetley ACI (Bangladesh) Limited Joint venture Rahman Rahman Huq
8 ACI CO-RO Bangladesh Limited Associate Rahman Rahman Huq
9 ACI Foods Limited Subsidiary M. J. Abedin & co.
10 ACI Pure Flour Limited Subsidiary M. J. Abedin & co.
11 Creative Communication Limited Subsidiary Ashraful Haque Nabi & Co.
12 ACI Edible Oils Limited Subsidiary Ashraful Haque Nabi & Co.
13 ACI Chemicals Limited Subsidiary Ashraful Haque Nabi & Co.
14 Infolytx Bangladesh Limited Subsidiary Ashraful Haque Nabi & Co.
15 ACI Biotech Limited Subsidiary Ashraful Haque Nabi & Co.
16 Premiaflex Plastics Limited Subsidiary Shiraz Khan Basak & Co.
17 ACI Agrolink Limited Subsidiary Shiraz Khan Basak & Co.
18 ACI Marine and Riverine Technologies Limited Subsidiary Shiraz Khan Basak & Co.
19 Stochastic Logic Limited Associate Shiraz Khan Basak & Co.
20 Asian Consumer Care (Pvt.) Limited Associate Howladar Yunus & Co.
21 Computer Technology Limited* Associate -

* Dormant company.

Page 140 Annual Report 2020-2021

 Annexure - A

Revaluation Report on
Property, Plant and Equipment of
Advanced Chemical Industries Limited

Annual Report 2020-2021 Page 141

 Hoda Vasi
Chowdhury & Co

Executive Summary
Advanced Chemical Industries Limited (here in after referred to as “the Company”, “AL”)) is a public limited
company incorporated in Bangladesh on 24 January 1973 as ICI Bangladesh Manufacturers Limited. The
registered office of the Company is at 245 Tejgaon Industrial Area, Dhaka-1208 in Bangladesh.

The purpose of this assignment is to carry out the valuation of Property, plant and equipment of AL. The
concept of "Fair Value" has been kept in mind while valuing the Property, plant and equipment.

Hoda Vasi Chowdhury & Co was appointed to carry out the valuation exercise with specific Terms
of Reference. We have obtained both quantitative and qualitative information about the Company and
its Property, plant and equipment. Our valuation team visited the premises and physically inspected
Property, plant and equipment whilst making appropriate adjustments to records of Property, plant and
equipment wherever necessary.

Summary of valuation is as under:

Lands:

Total Land Area:

ACI Limited has total 24,211.28 decimals of land in Tejgaon, Gazipur, Narayanganj, Jessore and Panchagarh
across the country with book value of BDT 5,545,184,175 as on 30 June 2021.

Approach and Methodology:

Market approach has been followed for valuation of land. Upon review of the relevant land documents,
our consulting engineers along with our representative physically visited locations and taken into
consideration among others about the state of land, road connectivity, size of the land, expansion potential,
industrialization prospect, utility connection and Government plan etc. and placed the fair value which is
supported by local survey.

However, out of total land 362.56 decimals of land at Araihazar, Narayanganj Mouza were acquired between
1st July 2019 to 30th June 2021 and do not fall under the scope of upward revaluation as per BSEC
notification. Therefore, the Fair Value of these lands restricted to the Book Value of BDT 31,357,051.

Page Annual Report 2020-

 Hoda Vasi
Chowdhury & Co

Summary of valuation of lands:

Figures in BDT

Land Area Book Value per Total Book Value Fair Value Total Fair Value Fair Value
Location in decimal decimal as on 30 June per as on 30 June Adjustments
2021 decimal 2021
Land: Mouza-Boro Sadardiya, Soto 1,877.13 127,053 238,495,724 210,000 394,197,300 155,701,576
Sadardiya, Jalakandi, Narayanganj.
Land: Mouza-Boro Sadardiya, Soto 362.56 86,488 31,357,051 Not Revalued 31,357,051 -
Sadardiya, Jalakandi, Narayanganj.*
Land: Mouza-Gazipur, P.S- 3,355.44 42,436 142,390,723 75,000 251,658,225 109,267,502
Sreepur, Gazipur
Land: Mouza-Tejgaon 74.25 20,002,694 1,485,200,000 30,500,000 2,264,625,000 779,425,000
I/A, Dhaka-1208
Land: Mouza-Razabari, Sreepur, 451.25 93,038 41,983,622 300,000 135,375,000 93,391,378
Gazipur
Land: Mouza-Mirpur (Konabari), 251.63 1,350,000 339,700,500 1,350,000 339,700,500 -
P.S-Gazipur Sadar, Dist-Gazipur.
Land: Mouza-Baniadi, Rupganj, 270.50 411,275 111,250,003 770,000 208,285,000 97,034,997
Narayanganj.
Land: Mouza-Godnyle, 07 New 1,151.00 1,000,000 1,151,000,000 1,350,000 1,553,850,000 402,850,000
Haziganj Road, Narayanganj.
Land: Mouza-Tipordi. P.S-Sonargaon 2,436.86 774,543 1,887,452,106 800,000 1,949,488,000 62,035,894
Dist-Narayanganj.
Land: Mouza-Dhamor, Atwari, 13,800.00 7,514 103,696,046 10,000 138,000,000 34,303,954
Panchagarh.
Land: Mouza-Chapatola, 01 No. 180.66 70,068 12,658,400 90,000 16,259,400 3,601,000
Prembag Union Parishad,
Avoynagar, Jashore.
Total 24,211.28 - 5,545,184,175 - 7,282,795,476 1,737,611,301

The Details of the Land and land development are provided in the “Annexure -1”
*The 362.56 decimals of land have not been revalued. Therefore, book value is considered as Fair Value.

Buildings

ACI Limited has various civil constructions including Existing 05-storied office building, Pre-Fabricated shed
building, 07- storied R.C.C factory building, and the Single storied sub- station building comprising total
568,232 sft. floor area. The construction year of these buildings are in different time period between 1995 to
2019 with different expected life between 25 years and 50 years depending upon the condition of buildings.

Approach and Methodology:

Buildings are revalued on the basis of Depreciated Replacement Cost and was conducted with the assistance
of an external expert surveyor. However, we estimate that the written down value of buildings BDT
779,677,955 as on 30 June 2021 approximates the Fair Value. No upward valuation is done for the buildings.

Annual Report 2020- Page

 Hoda Vasi
Chowdhury & Co

Summary of valuation of buildings:

Figures in BDT

Total Book Accumulated Written Depreciated

Total Floor Value Depreciation Down Value Replacement
Location Address Adjustment
Area (Sft.) as on 30 as on 30 (WDV) as on Cost (Fair
June 2021 June 2021 30 June Value)
2021 as on 30 June
2021
Narayanganj Water Works Road, Godnyle, 07 New 303,850 531,311,022 70,038,009 461,273,014 - 461,273,014
Hajiganj Road, Narayanganj-1400
Konabari, Gazipur Konabari, Gazipur 76,402 79,019,401 7,715,790 71,303,611 - 71,303,611
Tejgoan ACI Centre, 245 Tejgoan 68,440 125,742,671 15,646,324 110,096,347 - 110,096,347
I/A, Dhaka-1208
Rajabari, Gazipur Gojaria, Bhawal, Rajabari, 66,492 81,060,111 6,028,385 75,031,726 - 75,031,726
Sreepur, Gazipur
Rupganj, Narayanganj Mongolkhali, Murapara, 47,928 59,958,786 4,257,941 55,700,845 - 55,700,845
Rupganj, Narayanganj.
Mowna, Gazipur Mowna, Gazipur 5,120 6,893,300 630,848 6,262,452 - 6,262,452
Total 568,232 883,985,291 104,317,296 779,667,995 - 779,667,995

The details of Fair Value of Buildings are provided in the “Annexure-2”

For Other Assets:

ACI Limited has other assets such as Plant and Machinery, Electrical and other office appliances, Furniture &
Fixture, Office Machinery, Motor vehicles have not been revalued considering the followings:
● Written down value of plant and machinery having remaining useful lives of less than 50%
of original useful life cannot be revalued as per BSEC Notification on Valuation dated August
18, 2013;
● Written down value of building, plant and machinery, having remaining useful lives of more than
50% of original useful life have not been revalued, as their written down values approximates as
per our best professional judgment to be Fair Values;
● Written down values of assets like office equipment, furniture and fixtures, loose tools, vehicles,
etc. have not been revalued, since they are not eligible for revaluation as per BSEC Notification
on Valuation dated August 18, 2013; and
● There were no market driven, operational or internal factors, noted or observed for major fixed
assets of the Company which would trigger impairment at valuation date.

USE OF EXPERTS
In order to ensure quality of the assignment an experienced engineering and survey firm namely Mridha
& Associates Ltd., has been hired to carry out the valuation of Property, plant and equipment independently.
We have checked and confirmed that Mridha & Associates Ltd. is independent with respect to the assignment.
The assumptions, judgments, methods of valuation, relevance and reasonableness of their findings and
conclusion have been reviewed by us.

Page Annual Report 2020-

 Hoda Vasi
Chowdhury & Co

INDEPENDENCE
We confirm that Hoda Vasi Chowdhury & Co, Chartered Accountant, its partners and staff are independent,
with respect to AL, in accordance with the independence requirements of the IESBA Code of Ethics for
Professional Accountants adopted by the Institute of Chartered Accountants of Bangladesh (ICAB) and
International Valuation Standard Council (IVSC). No part of our fee is contingent upon the conclusions
reached in the valuation or any action or event contemplated in or resulting from the use of the
Valuation. The principal valuator and other staff involved in the preparation of the Valuation acted
independently and objectively in completing this engagement.

COMPOSITION OF TEAM AND KEY PERSONNEL

Realizing the needs of the assignment and areas to be covered, efforts have been made to ensure the quality
of the work and reporting thereon. Accordingly, we deployed our resources and deputed a team comprising of
technical personnel for carrying out the assignment. The Engagement Manager constantly monitored the
assignment under the guidance of the Engagement Partner in order to ensure timely and quality reporting.

The composition of the valuation team is as follows:

Engagement Partner : Sk Md Tarikul Islam, FCA

Engagement Manager : M.A. Bashar, ACCA
Valuation Supervisor : Md. Shah Alam, MBA, (Partly qualified CA)
Valuation Expert : Mridha & Associates Ltd.

The overall team has been referred to as “we” in this report.

VALUATION DATE
30 June 2021 has been considered as “valuation date” and accordingly all information are based on the
information provided by the management as on that date and certain explanations and clarifications
made available to us for the purpose of the current exercise on valuation.

VALUATION RESULT
Based on our assumptions, professional judgement, restrictions and qualifications, and analysis
presented above, we conclude the Fair Value of Land and Buildings of ACI Limited as on 30 June
2021 are BDT 7,282,795,476 and BDT 779,667,995 respectively.

List of Annexures:
Annexure-1: Valuation of Lands
Annexure-2: Valuation of Buildings

Annual Report 2020- Page

 Hoda Vasi Chowdhury & Co
Chartered Accountants

Date: 10 October 2021

Valuer's Report and Fairness Opinion

We confirm the following in relation the valuation of Property, Plant and Equipment of Advanced Chemical
Industries Limited:

1. The valuation has been undertaken in accordance with the International Valuation Standards (IVS)
and we have verified that the ownership, possession and use of the assets are with the company.

2. We have maintained the Fundamental Principles of Ethical Conduct namely Integrity,

Objectivity, Professional Competence, Confidentiality and Professional Behavior regarding the
valuation and have taken all possible steps to avoid or mitigate possible threats to compliance of
these principles.

Sk Md Tarikul Islam, FCA

Partner

National Office : BTMC Bhaban (6th & 7th Floor), 7-9 Karwan Bazar Commercial Area, Dhaka-1215, Bangladesh
Chattogram Office : Delwar Bhaban (4th Floor), 104 Agrabad Commercial Area, Chattogram-4100, Bangladesh

Page Annual Report 2020-

Advanced Chemical Industries Limited

Reports of the Directors and Audited

Financial Statements of the
Subsidiary Companies
for the year ended 30 June 2021

Annual Report 2020-2021 Page 147

ACI Formulations Limited
Directors' Report

We are pleased to present herewith the Directors’ and Auditors’ Report together with the audited
Financial Statements of ACI Formulations Limited for the financial year ended 30 June 2021.

With limited land and enormous population to feed, a developing and agriculturally dominant
country like Bangladesh heavily relies on the use of Crop Care products to increase yield. Although
agriculture contributes 15% of the GDP nonetheless it employs 50% of the population, the
Agriculture sector’s development is of prime and paramount importance to the country.

To Bangladesh, due to its geographical location, natural calamity has always been the companion.
A major strike of Cyclone Yas along with several flash floods made everyone skeptical about the events
to follow. Due to the Floods in the middle of the year, southern parts of the country got severely
affected in 150,000 Hectare of paddy fields, over 24% the country got inundated and several
districts were isolated because of consequential road conditions. Then again, at the end of the year
we saw a record breaking heat wave which was also detrimental for the crops.

In spite of the natural calamities, we had to carry on with the enduring Covid-19 pandemic and its
destructive second wave. The pandemic did not only restrain the regular field activities, but also
impacted the business with many new obstacles such as container shortage, increased exchange rate,
delayed shipment, price increase of crucial raw materials and active ingredients. Against all odds,
the Crop Care grew by 16% while the industry grew by 5%.

Having the strong emerging product Pyrazin, the powder insecticide portfolio grew extraordinarily
by 111%. While the leading portfolio Granular Insecticides grew by 14%, Liquid Insecticides by 10%,
due to drought and other severe disasters, the worst hit has been the Herbicides segment as the
portfolio had de-grown by (12%) during last year. This year also Sulphur sales suffered because of
lack of infestation.

Flora is a bio-friendly plant energizer, flowering stimulant and yield booster. Flora has been very popular
among the farmers and it has a strong brand image in customers’ minds. Flora had grown by 54%
which was a significant improvement over last year. We have conducted more than a thousand
demonstrations throughout the country to exhibit to the farmers the benefits of using Flora in improving
the yield of crops.

Crop Care introduced 5 unique solutions which will contribute to the productivity of agriculture. We are
collaborating with a number of internationally renowned chemical companies for new molecules.

Our Sales team have been restructured for more efficient supervision of the sales operations. ACI Crop
Care’s Field Force have been working closely with the Department of Agricultural Extension (DAE)
officials to enhance service to the farmers.

This year we observed severe BPH attack throughout the country and our Field Force have taken
appropriate actions. Even during the COVID-19 situation, our employees have been continuously
visiting the fields with proper COVID-19 precautions and advising the farmers in an apt manner to
provide them with right solutions. Hence, our Marketing and Field Forces are worthy to be appreciated
for their dedication, hard work and initiatives.

Page 148 Annual Report 2020-2021

Our Research and Development wing has been further strengthened for conducting filed trials on
existing and new molecules.

‘ACI Crop Care’s Facebook page is providing instantaneous solution to the farmers’ problems and
thus gaining popularity. Progressive farmers and gardeners are seeking solutions from the page
and also ordering products through our online platforms.

Paints Business has suffered from COVID-19 effect. We are facing stiff competition as well as
supply chain difficulties resulting in product shortages. We are addressing these issues in consultation
with our global partner AkzoNobel.

Home Care Solutions business has been serving the people with a wide range of best-in class products
from both Pest and Non-Pest Category. ACI Aerosol-the most effective Insect Killer, continues to
dominate the category with 90.44% market share and 33% growth, whilst protecting people from
serious vector borne diseases like Dengue, Malaria and Chikungunya. On the contrary, ACI Mosquito Coil
is maintaining its presence by serving the conscious and brand loyal consumers.

Angelic Air Freshener being the pioneer in locally manufactured air freshener, remains the market
leader. Despite several new entrants (both local and imported), Angelic has maintained its position due
to its strong brand loyalty among the consumers.

Vanish has maintained a steady position in the category with a newly launched Citrus variant, which has
gained wide acceptance amongst consumers.

ACI Neem original has been successfully maintaining its premium quality of soap and handwash
with natural ingredients and ensuring the promise of germ-free nourished skin to its consumers.

ACI Neem original has been increasing its brand value and competing to be the first choice for
natural products.

ACI Formulations Factory located in Gazipur on a span of 42 acres of land is fully compliant with
the laws governing Safety, Health and Environment. The factory has kept its technological advancement
in line with the global developments and has additional space to accommodate many new business tie
ups. Our state-of-the-art Effluent Treatment Plant processes all liquid toxic waste materials to
make them benign. Efficient Incinerators helps to break down the harmful solid materials at high
temperature to make them harmless. The factory continues to get high rating for its technological
excellence from the foreign associates.

The Coil production unit which had been mostly idle for more than two years is likely to get busy again.
We are hopeful that contract manufacturing of coil agreement will be signed soon.

The Incidents on COVID-19 on our employees have reduced significantly and we have been active
in advising them in taking precautions.

We are exploring possibilities of greater utilization of our factory for which a high level study is going on.

Annual Report 2020-2021 Page 149

Key Operating & Financial Information at a Glance

The key operating and financial information for the year 2020-21 along with the preceding five and
half years are presented below:
Figures are in million Taka

January
July 2020- July 2019- July 2018- July 2017- July 2016 2016- December
Particulars June 2021 June 2020 June 2019 June 2018 June 2017 June 2016 2015
(six month)

Net Turnover 3,863 3,422 4,025 4,127 3,629 1,625 3,006

Gross profit 1,126 1,065 1,211 1,027 1,108 477 800

Profit before tax 291 126 180 163 357 127 313

Profit after tax 213 92 128 115 261 90 235

Earnings per share (Taka) 4.74 2.05 2.83 2.56 5.81 2.01 5.23

Issued & paid capital 450 450 450 450 450 450 450

Shareowners' equity 3,009 2,407 2,472 2,502 2,455 2,283 2,350

Net asset per share (Taka) 66.88 53.48 54.93 55.59 54.55 50.74 52.23

Number of employees 1,047 1,113 1,361 1,785 1,679 1,489 1,459

Total contribution to
National Exchequer 344 244 522 669 564 256 387

Page 150 Annual Report 2020-2021

Financial Results
For the year ended 30 June 2021, total revenue of ACI Formulations Limited was Taka 3,863
million which was Taka 3,422 million for comparative year FY 2019-20, an increase of Tk 441
million resulting in 12.88% growth over last year. Cost of sales increased by 16.12% mainly due to
higher sales volume coupled with increased material cost. Higher turnover and favorable product
mix, partially offset by the increased cost of sales has contributed to the increase in gross profit by
5.66% over last year. However, efficient and effective control over operating expense led to
decreased operating expenses by 3% over FY 2019-20. On the other hand, financing cost
decreased by Taka 91 million over last year mainly due to reduced interest rate and efficient
working capital management. Higher operating profit and lower financing cost over last year led to
increase in profit before tax (PBT) for Taka 291 million and profit after tax (PAT) for Taka 213
million from Taka 126 million and Taka 92 million of FY 2019-20 respectively. This resulted in
increase of Earnings per Share to Taka
4.74 from Taka 2.05 of last year.

Appropriation of Profit
Considering the financial results of the Company during the year and free reserve carried over and
in line with following a consistent dividend policy, the Directors recommended appropriation of
net
profit as follows: Figures in Taka

For the year ended For the year ended

Particular
30 June 2021 30 June 2020

Un-appropriated profit 730,348,228 727,896,037

Add: Net profit after tax 213,263,914 92,452,191
Add: Other comprehensive income (3,975,750) -
Total profit available for appropriation 939,636,392 820,348,228
Appropriation of profit:

Final Dividend Proposed:

Cash Dividend 135,000,000 90,000,000

Stock Dividend 22,500,000 -
Total Dividend 157,500,000 90,000,000
Balance carried forward 782,136,392 730,348,228

With the balance carried forward and with future ploughing back of the profit, Directors are confident
that company will be able to maintain prudent dividend policy in coming years.
Annual Report 2020-2021 Page 151
 Dividend
The Board of Directors is pleased to recommend cash dividend @ 30% on face value of Tk. 10 per
share (i.e. Taka 3 per share) and 5% as stock dividend for the year ended 30 June 2021 to those
shareowners whose names were appeared in the Share Register of Members of the Company or in
the Depository list of CDBL on the Record Date which is 18 November 2021. No Stock Dividend
was declared as interim dividend during the year.

Contribution to the National Exchequer

For the year ended 30 June 2021, the company contributed Taka 344 million to the National
Exchequer in the form of corporate tax, custom duty and Value Added Tax (VAT). This is equivalent
to 8.61% of the Company's gross sales revenue for the year 2020-21.

Cost of Goods Sold and Profit Margins

For the year ended 30 June 2021, cost of goods sold was Taka 2,738 million (70.87% of net
revenue) which was Taka 2,357 million (68.88% of net revenue) during the FY 2019-20, resulting
an increase of 1.99% cost due to unfavorable material cost variance over FY 2019-20. This has
resulted to decrease gross profit margin of 29.13% (Taka 1,126 million) during the year ended 30
June 2021 as against 31.12% (Taka 1,065 million) of the FY 2019-20. Higher sales along with
favorable product mix, coupled with controlled operating cost and lower financing cost led to
register PAT 5.52% in FY 2020-21 against 2.70% of FY 2019-20.

On behalf of the Board

Shusmita Anis Golam Mainuddin

Director
Managing Director

Dhaka, 28 October 2021

Page Annual Report 2020-

 INDEPENDENT AUDITOR'S REPORT
to the Shareholders of
ACI Formulations Limited
Report on the Audit of the Consolidated and Separate Financial Statements
Opinion
We have audited the consolidated financial statements of ACI Formulations Limited and its subsidiaries (the
“Group”) as well as the separate financial statements of ACI Formulations Limited (the “Company”),
which comprise the consolidated and separate statements of financial position as at 30 June 2021, and the
consolidated and separate statements of profit or loss and other comprehensive income, consolidated and separate
statements of changes in equity and consolidated and separate statements of cash flows for the year then
ended, and notes to the consolidated and separate financial statements, including a summary of significant
accounting policies.
In our opinion, the accompanying consolidated and separate financial statements give true and fair view of
the consolidated financial position of the Group and the separate financial position of the Company as at 30
June 2021, and of its consolidated and separate financial performance and its consolidated and separate cash flows
for the year then ended in accordance with the International Financial Reporting Standards (IFRSs).

Basis for Opinion

We conducted our audit in accordance with the International Standards on Auditing (ISAs). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the
Consolidated and Separate Financial Statements section of our report. We are independent of the Group
and the Company in accordance with the International Ethics Standards Board for Accountants’ Code of
Ethics for Professional Accountants (IESBA Code) and we have fulfilled our ethical responsibilities in
accordance with the IESBA Code and the Institute of Chartered Accountants of Bangladesh (ICAB) Bye-Laws.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit
of the consolidated and separate financial statements of the current period. These matters were addressed in
the context of our audit of the consolidated and separate financial statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on these matters.
Key audit matters for the audit of financial statements are as under:

Property, plant and equipment (PPE):

PPE includes the Group’s and the Company’s long-term assets, which flow economic benefits to the entities more
than one year. PPE is measured at cost or revaluation less accumulated depreciation and accumulated impairment
loss. Land and buildings were revalued by a professional valuer in 2021. Other assets such as plant and
machineries, electrical and other office appliances, furniture and fixture, office equipment and motor vehicles
were not revalued on justified grounds as mentioned in the revaluation report.
The carrying value of PPE represents significant portion of total assets, which is amounting to Tk. 2,373 million for
the Company and Tk. 2,374 million for the Group at the reporting date. In other words, for both the Company
and the Group, approximately 42% of total assets are represented by PPE. It is a matter of consideration that the
carrying value of PPE may be higher than the recoverable amount and impairment charges might not have
been recognized due to not performing the impairment test.

Annual Report 2020- Page

 A. WAHAB & CO.
Chartered Accountants

Audit procedure performed to address the key audit matter

We have tested the design and operating effectiveness of key controls over PPE. Our audit procedures
included, among others, considering the impairment risk of the assets.
Followings are our audit procedures on the carrying value and impairment risk of PPE:
• Reviewing basis of recognition, measurement and valuation of assets;
• Review of procedures of assets acquisition, depreciation and disposal;
• Checking ownership of the major assets;
• Checking the Capital-Work-in-Progress (CWIP) and its transfer to PPE;
• Performing due physical asset verification on sample basis;
• Evaluating the Group’s assumptions to identify if there is any requirement of recognition of impairment;
• We have checked fixed asset register of the company, performed test check of depreciation calculation,
checked fixed assets schedule and books of accounts maintained by the company; and
• Finally, assessing the appropriateness and presentation of disclosures in line with relevant accounting
standards.
Our testing did not identify any other issues with regard to PPE and related depreciation.

Inventory valuation
At year end the Company and the Group as a whole reported inventory of Tk. 1,278 million – approximately 23%
of total assets – of goods held in depots, central warehouse and factories. Inventories are carried at lower of cost
and net realizable value. The Group provides provision for obsolescence or slow-moving based on age analysis of
inventories. This methodology relies upon assumptions made in determining appropriate provisioning amount to
inventory balances. Therefore, it has been considered as key area of auditor’s judgment.

Audit procedure performed to address the key audit matter

We obtained a detailed understanding and evaluated the design and implementation of controls that the
Group has established in relation to inventory valuation. We obtained assurance over the
appropriateness of management’s assumptions applied in calculating the value of inventory provisions.
Our audit procedures in relation to the inventory comprise the followings:
• Evaluating the design and implementation of key inventory controls operating across the Group on test basis;
• Conducting review of trade price and compared with cost price to ensure that the inventories are reported at
lower of cost or net realizable value and comparing to the associated provision to assess whether
inventory provisions are complete;
• We however could not attend inventory counts at the year-end due to strict lockdown imposed by
government. We have obtained inventory list that was counted by management and checked on sample basis
between the quantities reported in the inventory counting sheet with that of quantities reported against
the closing inventory.
Our procedures above did not identify any issues with regard to inventory.

Inter-company receivables
The carrying amount of the inter-company receivables and payables of the Company was Tk. 8.7 million and
Tk. 340 million as at 30 June 2021 representing 0.15 % of total assets and 12.90% of total liabilities of the
Company, respectively. Management has conducted impairment assessment and calculated recoverable value
of these inter-company receivables, and reimbursement capability of the inter-company payables in accordance
with IFRS 9: Financial Instruments. Therefore, it is a matter to consider whether those receivables and payables
have been misstated due to non-recognition of impairment or inability to repay.

Page Annual Report 2020-

 A. WAHAB & CO.
Chartered Accountants

Audit procedure performed to address the key audit matter

We assessed the processes and controls put in place by the Company over inter-company transactions. Our
procedures in relation to the inter-company balances comprise the followings:
• At the time of conducting our audit of the separate financial statements of the Company, we have
identified the recoverable value of the Company’s inter-company receivable.
• We have also assessed the Company’s ability to repay inter-company payables, through detailed analysis
of the Company’s income and cash generating abilities.
• Obtained confirmations from the group entities at the reporting date on the closing balances of
inter-company transaction and its reconciliation whenever necessary;
• Assessed the appropriateness and presentation of disclosures against relevant accounting standards.
Our test did not identify any major issues with regard to inter-company balances and any indicators that would
trigger impairment or adjustment at the reporting date.

Bank Overdraft and Loan and borrowings

At reporting date, the position of Bank Overdraft and Loan outstanding was Tk. 1659 million for both the
Company and the Group. In other words, approximately 63% of total liabilities are represented by loans and
overdraft for both the Company and Group. Evidently, the Company is using loan to operate the business and
also, to acquire non-current assets. Therefore, these two items have been considered as key audit areas.

Audit procedure performed to address the key audit matter

We obtained an understanding, evaluated the design and tested the operational effectiveness of the Company’s
key controls over the loans.
Our audit procedures included, among others, the followings:
• Obtained loan statements and facility offer letters to review terms, debt covenants, interest rates and
other conditions associated with the loans.
• Obtained external confirmation of the bank to ensure accuracy of the figures reported.
• Checked interest calculation on test basis.
• Checked the adjustments or repayments of loans through bank statements as per repayment schedule.
Our procedures above did not identify any other issues except as mentioned above with regard to loans.

Revenue Recognition
At year end the Company and the Group both reported revenue of Tk. 3,863 and Tk. 3,865 million
respectively. Revenue is measured at net of trade discounts, markdown adjustment, returns and allowances.
It is a matter of concern that revenue may be misstated due to recognition of sales transaction before
performance obligation being satisfied.

Audit procedure performed to address the key audit matter

Our audit procedures in relation to the revenue recognition comprises the followings:
• Observing and evaluating whether proper segregation of duties put in place;
• Examining samples of sales invoices for evidence of proper credit approval by the appropriate personnel and
application controls for credit limits;
• Comparing prices and terms on samples of sales invoices to the price list.
• Checking invoice raised at the year end and delivery of goods with acknowledgement of customer to
ensure that cut off principle has been properly applied.
• Assessing revenue recognition accounting policies by comparison with IFRS 15.
• Testing the effectiveness of the controls over the calculation of discounts.
• Assessing manual journals made to revenue to identify unusual or irregular items; and
• Finally, assessing the appropriateness and presentation of disclosures against relevant accounting standards.
Our testing did not identify any issues with regard to revenue.

Annual Report 2020- Page

 A. WAHAB & CO.
Chartered Accountants

Other Matters
The Group comprises the parent, ACI Formulations Limited, and its subsidiary namely Neem Laboratories
(Pvt.) Ltd. The financial statements of subsidiary have been audited and the component auditor has expressed
an unmodified opinion on the financial statements on 30 June 2021.

Other Information
Management is responsible for the other information. The other information comprises all of the information in
the Annual Report but does not include the financial statements and our auditors’ report thereon.
Our opinion on the consolidated and separate financial statements does not cover the other information and
we do not express any form of assurance conclusion thereon.
In connection with our audit of the consolidated and separate financial statements, our responsibility is to
read the other information and, in doing so, consider whether the other information is materially inconsistent with
the consolidated and separate financial statements or our knowledge obtained in the audit or otherwise appears to
be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the Consolidated
and Separate Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated and separate financial
statements in accordance with the IFRSs, the Companies Act, 1994, the Securities and Exchange Rules, 1987 and
other applicable laws and regulations and for such internal control as management determines is necessary to
enable the preparation of consolidated and separate financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the consolidated and separate financial statements, management is responsible for assessing the
Group’s and the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to
going concern and using the going concern basis of accounting unless management either intends to liquidate the
Group and the Company or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group’s and the Company’s financial reporting
process.

Auditor’s Responsibilities for the Audit of the Consolidated and Separate Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated and separate
financial statements as a whole are free from material misstatement, whether due to fraud or error, and
to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of these consolidated and separate financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the consolidated and separate financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit 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
Group’s and the Company’s internal control.

Page Annual Report 2020-

 A. WAHAB & CO.
Chartered Accountants

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Group’s and the Company’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
auditor’s report to the related disclosures in the consolidated and separate financial statements or, if
such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group and
the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated and separate financial
statements, including the disclosures, and whether the consolidated and separate financial
statements represent the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the consolidated and separate financial statements.
We are responsible for the direction, supervision and performance of the Group and the Company audit.
We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that
may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were
of most significance in the audit of the consolidated and separate financial statements of the current period and are
therefore the key audit matters. We describe these matters in our auditors’ report unless law or
regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse consequences of
doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on other Legal and Regulatory Requirements

In accordance with the Companies Act, 1994 and the Securities and Exchange Rules, 1987 and relevant
notifications issued by Bangladesh Securities and Exchange Commission, 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 Group and the
Company so far as it appeared from our examination of these books;
c) the consolidated and the separate statements of financial position and statements of profit or loss and
other comprehensive income along with the annexed notes 1 to 40 dealt with by the report are in
agreement with the books of account; and
d) the expenditure incurred was for the purposes of the Group's and the Company’s business.

(A. WAHAB & CO.)

Chartered Accountants
Kazi Md. Mahboob Kasem, FCA
Partner
Enrolment No: 845
Dhaka, 28 October 2021 DVC: 2111040845AS548401

Annual Report 2020- Page

ACI Formulations Limited
Statement of Financial Position

In Taka 30 June 2021 30 June 2020

Assets
Property, plant and equipment 2,372,942,307 1,902,607,959
Right of use assets 12,026,671 12,117,850
Investments 41,716,700 39,765,927
Non-current assets 2,426,685,678 1,954,491,736
Inventories 1,278,151,010 1,270,805,156
Trade receivables 1,284,540,445 1,574,240,361
Other receivables 48,146,105 40,677,696
Inter-company receivables 8,728,765 25,404,390
Advances, deposits and prepayments 48,881,746 79,424,510
Current tax assets 360,027,334 323,894,080
Cash and cash equivalents 191,034,248 248,676,354
Current assets 3,219,509,653 3,563,122,547
Total assets 5,646,195,331 5,517,614,283
Equity
Share Capital 450,000,000 450,000,000
Revaluation reserve 1,619,739,070 1,136,392,931
Retained earnings 939,636,392 820,348,228
Total equity 3,009,375,462 2,406,741,159
Liabilities
Employee benefits 56,169,911 48,492,100
Lease liability 7,339,971 4,385,837
Deferred tax liabilities 36,696,214 24,686,212
Non-current liabilities 100,206,096 77,564,149
Bank overdrafts 107,334,356 76,793,453
Loans and borrowings 1,551,197,579 1,626,971,532
Lease liability-current portion 5,253,617 6,613,294
Trade payables 120,975,718 118,584,013
Other payables 398,395,665 327,661,518
Unclaimed dividend account 12,968,914 12,580,680
Inter-company payables 340,487,924 864,104,485
Current liabilities 2,536,613,773 3,033,308,975
Total liabilities 2,636,819,869 3,110,873,124
Total equity and liabilities 5,646,195,331 5,517,614,283
Net asset value (NAV) per share 66.88 53.48

Shusmita Anis Golam Mainuddin Mohammad Mostafizur Rahman

Director Director Company Secretary
As per our report of same date.

(A. WAHAB & CO.)

Chartered Accountants
Kazi Md. Mahboob Kasem, FCA
Partner
Dhaka, 28 October 2021 Enrolment No: 845
DVC: 2111040845AS548401

Page Annual Report 2020-

ACI Formulations Limited
Statement of Profit or Loss and other Comprehensive Income

For the year ended For the year ended

In Taka 30 June 2021 30 June 2020

Revenue 3,863,349,640 3,422,446,474

Cost of sales (2,737,852,542) (2,357,284,560)
Gross profit 1,125,497,098 1,065,161,914
Other income 4,981,496 4,668,779
Administrative, selling and distribution expenses (698,180,656) (719,940,721)
Operating profit 432,297,938 349,889,972
Finance costs, net (126,556,900) (217,715,145)
Profit before contribution to WPPF 305,741,038 132,174,827
Contribution to WPPF (15,287,052) (6,608,741)
Profit before tax 290,453,986 125,566,086
Income tax expense
Current tax (86,574,760) (57,345,975)
Deferred tax income/(expense) 9,384,688 24,232,080
(77,190,072) (33,113,895)
Profit after tax 213,263,914 92,452,191
Other comprehensive income
Items that will not be reclassified to profit or loss:
Remeasurement of defined benefit plan (5,130,000) -
Related tax 1,154,250 -
(3,975,750) -
Revaluation surplus on property, plant and equipment 505,895,079 -
Related tax (22,548,940) -
483,346,139 -
Other comprehensive income, net of tax 479,370,389
Total comprehensive income 692,634,304 92,452,191

Earnings per share

Basic earnings per share 4.74 2.05

Shusmita Anis Golam Mainuddin Mohammad Mostafizur Rahman

Director Director Company Secretary
As per our report of same date.

(A. WAHAB & CO.)

Chartered Accountants
Kazi Md. Mahboob Kasem, FCA
Partner
Dhaka, 28 October 2021 Enrolment No: 845
DVC: 2111040845AS548401

Annual Report 2020- Page

ACI Formulations Limited
Statement of Changes in Equity

For the year ended 30 June 2021

Share Revaluation Retained
In Taka capital reserve earnings Total

Balance at 1 July 2020 450,000,000 1,136,392,931 820,348,228 2,406,741,159

Total comprehensive income

Profit after tax - - 213,263,914 213,263,914
Other comprehensive income net of tax - 483,346,139 (3,975,750) 479,370,389
Total comprehensive income - 483,346,139 209,288,164 692,634,303

Transactions with owners of the company

Contributions and distributions
Final dividend paid for the year 2019-20 - - (90,000,000) (90,000,000)
Total transactions with owners of the company - - (90,000,000) (90,000,000)

Transactions recognised directly in equity

Realisation of revaluation surplus - - - -
Total transactions recognised directly in equity - - - -
Balance at 30 June 2021 450,000,000 1,619,739,070 939,636,392 3,009,375,462

For the year ended 30 June 2020

Share Revaluation Retained
In Taka capital reserve earnings Total

Balance at 1 July 2019 450,000,000 1,136,392,931 885,396,037 2,471,788,968

Total comprehensive income
Profit after tax - - 92,452,191 92,452,191
Other comprehensive income net of tax - - - -
Total comprehensive income - - 92,452,191 92,452,191

Transactions with owners of the company

Contributions and distributions
Final dividend paid for the year 2018-19 - - (157,500,000) (157,500,000)
Total transactions with owners of the company - - (157,500,000) (157,500,000)

Transactions recognised directly in equity

Realisation of revaluation surplus - - - -
Total transactions recognised directly in equity - - - -
Balance at 30 June 2020 450,000,000 1,136,392,931 820,348,228 2,406,741,159

Page Annual Report 2020-

ACI Formulations Limited
Statement of Cash Flows

For the year ended For the year ended

In Taka 30 June 2021 30 June 2020

Cash flows from operating activities

Cash receipts from customers and others 4,149,686,706 3,530,247,009
Cash paid to suppliers and employees (3,290,031,208) (2,486,366,330)
Cash (used in)/generated from operating activities 859,655,498 1,043,880,679

Paid to WPPF (6,608,741) (9,553,187)

Interest paid (126,521,019) (213,472,156)
Income tax paid (122,708,014) (152,471,284)
(255,837,774) (375,496,627)
Net cash (used in)/from operating activities 603,817,724 668,384,052

Cash flows from investing activities

Acquisition of property, plant and equipment (11,070,176) (23,622,434)
Investment (1,950,773) (23,155)
Net cash (used in)/from investing activities (13,020,949) (23,645,589)

Cash flows from financing activities

Inter-company debts received/(paid) (506,940,936) (283,636,486)
Proceeds from loans and borrowings (75,773,953) (195,189,810)
Payment for lease obligation (6,653,130) (6,355,203)
Dividends paid (89,611,766) (156,729,487)
Net cash (used in)/from financing activities (678,979,785) (641,910,986)

Net increase/(decrease) in cash and cash equivalents (88,183,009) 2,827,477

Opening cash and cash equivalents 171,882,901 168,949,368
Effect of foreign exchange rate changes - 106,056
Cash and cash equivalents at reporting date 83,699,892 171,882,901

Closing balance represents

Cash and cash equivalents 191,034,248 248,676,354
Bank overdraft (107,334,356) (76,793,453)
83,699,892 171,882,901

Net operating cash flows per share (NOCFPS) 13.42 14.85

Annual Report 2020- Page

ACI Formulations Limited
Consolidated Statement of Financial Position

In Taka 30 June 2021 30 June 2020

Assets
Property, plant and equipment 2,373,949,870 1,903,985,541
Right of use assets 12,026,671 12,117,850
Investments 37,768,366 35,817,593
Intangible assets 5,147,792 5,147,792
Non-current assets 2,428,892,699 1,957,068,776
Inventories 1,278,151,010 1,270,805,156
Trade receivables 1,285,524,206 1,575,245,535
Other receivables 48,146,112 40,619,138
Inter-company receivable 741,163 17,862,732
Advances, deposits and prepayments 49,567,359 80,121,123
Current tax assets 359,975,260 323,757,710
Cash and cash equivalents 191,829,387 249,368,841
Current assets 3,213,934,497 3,557,780,235
Total assets 5,642,827,196 5,514,849,011
Equity
Share Capital 450,000,000 450,000,000
Revaluation reserve 1,619,739,070 1,136,392,931
Retained earnings 935,070,632 815,586,163
Equity attributable to the owners of the Company 3,004,809,702 2,401,979,094
Non controlling interest (117,666) (121,672)
Total equity 3,004,692,036 2,401,857,422
Liabilities
Employee benefits 56,169,911 48,492,100
Lease liability 7,339,971 4,385,837
Deferred tax liabilities 36,642,620 24,594,529
Non-current liabilities 100,152,502 77,472,466
Bank overdrafts 107,334,356 76,793,453
Loans and borrowings 1,551,197,579 1,626,971,532
Lease liability- current portion 5,253,617 6,613,294
Trade payables 121,742,263 119,962,073
Other payables 398,998,005 328,493,606
Unclaimed dividend account 12,968,914 12,580,680
Inter-company payables 340,487,924 864,104,485
Current liabilities 2,537,982,658 3,035,519,123
Total liabilities 2,638,135,160 3,112,991,589
Total equity and liabilities 5,642,827,196 5,514,849,011
Net Asset Value (NAV) per share 66.77 53.38

Shusmita Anis Golam Mainuddin Mohammad Mostafizur Rahman

Director Director Company Secretary
As per our report of same date.

(A. WAHAB & CO.)

Chartered Accountants
Kazi Md. Mahboob Kasem, FCA
Partner
Dhaka, 28 October 2021 Enrolment No: 845
DVC: 2111040845AS548401

Page Annual Report 2020-

ACI Formulations Limited
Consolidated Statement of Profit or Loss and other Comprehensive Income

For the year ended For the year ended

In Taka 30 June 2021 30 June 2020

Revenue 3,864,530,432 3,424,043,566

Cost of sales (2,737,852,543) (2,357,284,558)
Gross profit 1,126,677,889 1,066,759,008
Other income 4,981,496 4,668,779
Administrative, selling and distribution expenses (698,602,394) (720,517,624)
Operating profit 433,056,992 350,910,163
Finance costs, net (126,890,319) (218,083,120)
Profit before contribution to WPPF 306,166,673 132,827,043
Contribution to WPPF (15,287,052) (6,608,741)
Profit before tax 290,879,621 126,218,302
Income tax expense:
Current tax (86,761,995) (57,505,684)
Deferred tax income/(expense) 9,346,599 24,026,714
(77,415,396) (33,478,970)
Profit after tax 213,464,225 92,739,332
Other comprehensive income
Items that will not be reclassified to profit or loss:
Remeasurement of defined benefit plan (5,130,000) -
Related tax 1,154,250 -
(3,975,750) -
Revaluation of property, plant and equipment 505,895,079 -
Related tax (22,548,940) -
483,346,139 -
Other comprehensive income, net of tax 479,370,389 -
Total comprehensive income 692,834,614 92,739,332
Profit attributable to:
Owners of the Company 213,460,219 92,733,589
Non-controlling interest 4,006 5,743
213,464,225 92,739,332
Earnings per share
Basic earnings per share 4.74 2.06

Shusmita Anis Golam Mainuddin Mohammad Mostafizur Rahman

Director Director Company Secretary
As per our report of same date.

(A. WAHAB & CO.)

Chartered Accountants
Kazi Md. Mahboob Kasem, FCA
Partner
Dhaka, 28 October 2021 Enrolment No: 845
DVC: 2111040845AS548401

Annual Report 2020- Page

ACI Formulations Limited
Consolidated Statement of Changes in Equity

For the year ended 30 June 2021

Attributable to owner of the Company
Share Revaluation Retained Non-controlling Total
In Taka capital reserve earnings Total interests equity

Balance as at 1 July 2020 450,000,000 1,136,392,931 815,586,163 2,401,979,094 (121,672) 2,401,857,422

Total comprehensive income

Profit after tax - - 213,460,219 213,460,219 4,006 213,464,225
Other comprehensive income net of tax 483,346,139 (3,975,750) 479,370,389 - 479,370,389
Total comprehensive income - 483,346,139 209,484,469 692,830,608 4,006 692,834,614

Transactions with owners of the company

Contributions and distributions
Final dividend paid for the year 2019-20 - - (90,000,000) (90,000,000) - (90,000,000)
Total transactions with owners of the company - - (90,000,000) (90,000,000) - (90,000,000)

Transactions recognised directly in equity

Realisation of revaluation surplus - - - - - -
Total transactions recognised directly in equity - - - - - -
Balance as at 30 June 2021 450,000,000 1,619,739,070 935,070,632 3,004,809,702 (117,666) 3,004,692,036

For the year ended 30 June 2020

Attributable to owner of the Company
Share Revaluation Retained Non-controlling Total
In Taka capital reserve earnings Total interests equity

Balance at 1 July 2019 450,000,000 1,136,392,931 880,352,574 2,466,745,505 (127,415) 2,466,618,090

Total comprehensive income
Profit after tax - - 92,733,589 92,733,589 5,743 92,739,332
Other comprehensive income net of tax - - - - -
Total comprehensive income - - 92,733,589 92,733,589 5,743 92,739,332

Transactions with owners of the company

Contributions and distributions
Final dividend paid for the year 2018-19 - - (157,500,000) (157,500,000) - (157,500,000)
Total transactions with owners of the company - - (157,500,000) (157,500,000) - (157,500,000)

Transactions recognised directly in equity

Realisation of revaluation surplus - - - - - -
Total transactions recognised directly in equity - - - - - -
Balance at 30 June 2020 450,000,000 1,136,392,931 815,586,163 2,401,979,094 (121,672) 2,401,857,422

Page Annual Report 2020-

ACI Formulations Limited
Consolidated Statement of Cash Flows

For the year ended For the year ended

In Taka 30 June 2021 30 June 2020

Cash flows from operating activities

Cash receipts from customers 4,150,888,910 3,535,713,609
Cash paid to suppliers and employees (3,290,301,674) (2,506,277,549)
Cash (used in)/generated from operating activities 860,587,236 1,029,436,060

Payment for WPPF (6,608,741) (9,553,187)

Interest paid (126,854,438) (213,840,131)
Income tax paid (122,979,544) (152,538,168)
(256,442,723) (375,931,486)
Net cash (used in)/from operating activities 604,144,513 653,504,574

Cash flows from investing activities

Acquisition of property, plant and equipment (11,070,176) (23,622,435)
Investment (1,950,773) (23,155)
Net cash (used in)/from investing activities (13,020,949) (23,645,590)

Cash flows from financing activities

Inter-company debts received/(paid) (507,165,071) (266,150,555)
Proceeds from loans and borrowings (75,773,953) (198,049,968)
Payment for lease obligation (6,653,130) (6,355,203)
Dividends paid (89,611,766) (156,729,487)
Net cash (used in)/from financing activities (679,203,919) (627,285,213)

Net increase/(decrease) in cash and cash equivalents (88,080,356) 2,573,771

Opening Cash and cash equivalents 172,575,387 169,895,561
Effect of foreign exchange rate changes - 106,056
Closing cash and cash equivalents at reporting date 84,495,031 172,575,388

Closing balance represents

Cash and cash equivalents 191,829,387 249,368,841
Bank overdraft (107,334,356) (76,793,453)
84,495,031 172,575,388

Net Operating Cash Flows Per Share (NOCFPS) 13.43 14.52

Annual Report 2020- Page

ACI Logistics Limited
Directors' Report

ACI Logistics Limited (The Company), a private company limited by shares, was incorporated with the Registrar of Joint
Stock Companies on 29 April 2008. It is best known for its brand of most popular retail superstores, “Shwapno”.
Currently operating through its 185 outlets, ACI Logistics has been working on strengthening its leadership position in the
retail industry. With the 52 newly opened express outlets, Shwapno has continued extending its footprint outside Dhaka
and now serves in 31 districts. This has allowed to strengthen and maintain its market leadership position and enjoy 49%
market share of the modern trade industry. Having already established itself as a household brand and a Super
brand, it is now recognized as one of the top 10 brands in the country serving more than 45,000 customers daily.
In order to continue its emphasis on the safety of employees and customers, Shwapno introduced multiple initiatives. These
include floor sanitization at entrances, temperature checks as well as placement of floor markers to ensure safe distance at
billing counter. Additionally, there was regular in-store communication to raise awareness regarding the importance of
social distancing and personal hygiene. Shwapno brought in several partners to provide grocery and daily needs to
customers’ doorsteps. During this period, it also introduced its own Home Delivery through “Tele Sales” service for
customers who prefer direct communication with the stores rather than online platforms, bringing in 11,000 customers
monthly. Shwapno express outlets have continued its growth and with an additional 52 new outlets in the 2020-2021 fiscal
year, it is currently serving approximately 14,000 customers daily. One of the most notable ones being the Savar outlet,
serving full assortment of fresh produce items, which contributes significantly to overall company revenue as well as
profitability. Shwapno’s e-commerce platform has been growing in terms of orders and user base, and now serves
more than 30,000 orders each month. Shwapno’s Private Labels Brands has had a 71.7% increase in products in its
assortment and 9.7% year on year sales growth. Through all these initiatives as well as the continued support and bravery of
our “Shwapno Joddhas”, Shwapno achieved record breaking sales of BDT 151.8 Cr. during the month of June as well as
operating profit in July 2020, May and June 2021. Sales growth year on year for the fiscal year was at an all-time high of
18.7%.
ACI Logistics continued venturing into additional backward integration projects by working closely with the manufacturers and
farmers across the country which it started last year by getting more involved in the value chain. Thereby ensuring fair
price as well as improving sustainability. In Faridpur especially, Shwapno connected with over 1000 farmers through SDC
which is supported by USAID’s Feed the Future Program. It also continues to work with Global G.A.P, the leading private
sector body addressing the crucial objectives of ensuring safe, sustainable agriculture worldwide. In order to ensure safety
in all stages of supply chain, ACI Logistics has also continued working closely with farmers to improve crop traceability with
the assistance of development partners. Shwapno’s sourcing, procurement and quality teams are also working relentlessly to
establish Shwapno as the destination for safe and authentic manufactured and imported products, especially during this
period.
Shwapno won the prestigious ‘the Asia Marketing Excellence Award’ also known as Asia’s Marketing Company of the Year
2020. Shwapno received two awards at the Cannes Lions International Festival of Creativity for its Agro Banking Project in
collaboration with UCB. Shwapno’s ecommerce platform was awarded ECAB Mover’s award for its outstanding contribution
during the pandemic. Additionally, Shwapno received Comm award in the “Social Campaign” category for empowering the
underprivileged third gender as well as in 3 other categories: “Best Covid-19 response Campaign”, “Film Craft” and “Best
Jingle”. Through all these achievements and recognition, Shwapno continues its journey to win the hearts and minds
of millions of customers as well as solidify itself as the destination for safe and authentic products.
The operating results of the Company for the year ended on 30 June 2021 are as follows:

Key Financial Results Taka

Revenue 13,735,174,535
Gross Profit/(Loss) 2,390,321,061
Operating Profit/(Loss) (63,205,399)
Profit/(Loss) Before Tax (1,318,819,800)
Profit/(Loss) After Tax (1,420,149,937)

On behalf of the Board

Dr. Arif Dowla Kamran Tanvirur Rahman

Director
Managing Director

Dhaka, 27 October 2021

Page 166 Annual Report 2020-2021

Annual Report 2020- Page

 dhaka@kpmg.com

Independent Auditor's Report to the Shareholders of

ACI Logistics Limited
Report on the Audit of the Financial Statements

Opinion

We have audited the financial statements of ACI Logistics Limited (“the Company”), which comprise the
statement of financial position as at 30 June 2021, and the statement of profit or loss and other
comprehensive income, statement of changes in equity and statement of cash flows for the year
then ended, and notes to the financial statements, including a summary of significant accounting
policies.

In our opinion, the accompanying financial statements give a true and fair view of the financial position
of the Company as at 30 June 2021, and of its financial performance and its cash flows for the year
then ended in accordance with International Financial Reporting Standards (IFRSs)."

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities
under those standards are further described in the Auditor's Responsibilities for the Audit of the
Financial Statements section of our report. We are independent of the Company in accordance with
the ethical requirements that are relevant to our audit of the financial statements in Bangladesh, and
we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Material Uncertainty Related to Going Concern

We draw attention to Note 37(N) in the financial statements, which indicates that the Company incurred
a net loss of Taka 1,432 million during the year ended 30 June 2021 and, as of that date, the
Company's current liabilities exceeded its total assets by Taka 9,954 million. As stated in Note 37(N),
these events or conditions, along with the other matters as set forth in Note 37(N), indicate that a
material uncertainty exists that may cast significant doubt on the Company's ability to continue as a
going concern. Our opinion is not modified in respect of this matter.

Responsibilities of Management and Those Charged with Governance for the Financial
Statements

Management is responsible for the preparation of financial statements that give a true and fair
view in accordance with IFRSs, 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.

78 (13th

Annual Report 2020- Page

 chittagong@kpmg.com

Page Annual Report 2020-

In preparing the financial statements, management is responsible for assessing the Company’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless management either intends to liquidate the Company or to
cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company’s financial reporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor's
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with ISAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of these financial statements.

Independent Auditor's Report (continued)

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.

• Obtain an understanding of internal control relevant to the audit 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 Company’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Company’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
auditor's report to the related disclosures in the financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to
the date of our auditor's report. However, future events or conditions may cause the Company to
cease to continue as a going concern.

Annual Report 2020- Page

 • Evaluate the overall presentation, structure and content of the financial statements, including
the disclosures, and whether the financial statements represent the underlying transactions and events in
a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.

Report on Other Legal and Regulatory Requirements

In accordance with the Companies Act 1994, we also report the following:

a) we have obtained all the information and explanation which to the best of our knowledge and belief
were necessary for the purpose of our audit and made due verification thereof;

b) 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; and

c) the statement of financial position and statement of profit or loss and other comprehensive income
dealt with by the report are in agreement with the books of account.

Ali Ashfaq, Partner

Enrolment Number: 509
Rahman Rahman Huq
Chartered Accountants
KPMG in Bangladesh
Firm Registration Number: N/A
Dhaka, 27 October 2021 DVC: 2110280509AS936527

Page Annual Report 2020-

ACI Logistics Limited
Statement of Financial Position

In Taka 30 June 2021 30 June 2020

Assets
Property, plant and equipment 400,024,175 512,327,024
Capital-work-in progress 14,220,630 22,680,171
Intangible assets 29,682,376 36,457,988
Right-of-use assets 913,429,622 882,329,590
Investments in fixed deposit receipts 163,239,447 155,029,184
Advances, deposits and prepayments 40,334,040 40,334,040
Non-current assets 1,560,930,290 1,649,157,997

Inventories 1,559,984,090 1,507,388,765

Trade and other receivables 67,299,260 64,876,425
Advances, deposits and prepayments 127,274,996 137,391,567
Cash and cash equivalents 378,175,369 149,512,819
Current assets 2,132,733,715 1,859,169,576
Total assets 3,693,664,005 3,508,327,573

Equity
Share capital 360,000,000 360,000,000
Accumulated loss (13,743,884,461) (12,311,804,524)
Total equity (13,383,884,461) (11,951,804,524)
Liabilities
Loans and borrowings 2,570,521,256 2,311,074,348
Employee benefits 112,002,138 90,201,190
Lease liabilities 747,585,415 717,583,341
Non-current liabilities 3,430,108,809 3,118,858,879

Loans and borrowings 3,938,682,149 2,721,768,840

Bank overdraft 1,163,581,591 1,149,342,228
Lease liabilities 210,729,748 216,263,744
Trade and other payables 2,058,713,941 1,788,812,928
Inter-company borrowings 5,968,826,135 6,238,281,980
Current tax liabilities 306,906,093 226,803,498
Current liabilities 13,647,439,657 12,341,273,218
Total liabilities 17,077,548,466 15,460,132,097
Total equity and liabilities 3,693,664,005 3,508,327,573

Dr. Arif Dowla Kamran Tanvirur Rahman Mohammad Mostafizur Rahman

Managing Director Director Company Secretary
As per our report of same date.

Ali Ashfaq, Partner

Enrolment Number: 509
Rahman Rahman Huq
Chartered Accountants
KPMG in Bangladesh
Dhaka, 27 October 2021 Firm Registration Number: N/A
DVC: 2110280509AS936527

Annual Report 2020- Page

ACI Logistics Limited
Statement of Profit or Loss and other Comprehensive Income

For the year ended

In Taka 30 June 2021 30 June 2020

Revenue 13,735,174,535 11,563,447,298

Cost of sales (11,344,853,474) (9,443,436,432)
Gross profit 2,390,321,061 2,120,010,866
Other income 29,132,461 35,215,560
Operating expenses (2,482,658,921) (2,200,034,192)
Operating loss (63,205,399) (44,807,766)
Finance income 9,494,296 12,805,035
Finance costs (1,265,108,697) (1,450,313,350)
Net finance costs (1,255,614,401) (1,437,508,315)
Loss before tax (1,318,819,800) (1,482,316,081)
Income tax expense (101,330,137) (87,072,089)
Loss for the year (1,420,149,937) (1,569,388,170)
Other comprehensive income
Remeasurement of defined benefit plan (11,930,000) -
Other comprehensive income for the period (11,930,000) -
Total comprehensive loss for the year (1,432,079,937) (1,569,388,170)

Dr. Arif Dowla Kamran Tanvirur Rahman Mohammad Mostafizur Rahman

Managing Director Director Company Secretary
As per our report of same date.

Ali Ashfaq, Partner

Enrolment Number: 509
Rahman Rahman Huq
Chartered Accountants
KPMG in Bangladesh
Dhaka, 27 October 2021 Firm Registration Number: N/A
DVC: 2110280509AS936527

Page Annual Report 2020-

ACI Logistics Limited
Statement of Changes in Equity

For the year ended 30 June 2021

Share Accumulated Total
In Taka capital loss equity

Balance at 1 July 2019 360,000,000 (10,742,416,354) (10,382,416,354)

Total comprehensive loss for the year
Loss for the year - (1,569,388,170) (1,569,388,170)
Other comprehensive income for the year - - -
Total comprehensive loss for the year - (1,569,388,170) (1,569,388,170)
Balance at 30 June 2020 360,000,000 (12,311,804,524) (11,951,804,524)

Balance at 1 July 2020 360,000,000 (12,311,804,524) (11,951,804,524)

Total comprehensive loss for the year
Loss for the year - (1,420,149,937) (1,420,149,937)
Other comprehensive income for the year - (11,930,000) (11,930,000)
Total comprehensive loss for the year - (1,432,079,937) (1,432,079,937)
Balance at 30 June 2021 360,000,000 (13,743,884,461) (13,383,884,461)

Annual Report 2020- Page

ACI Logistics Limited
Statement of Cash Flows

For the year ended

In Taka 30 June 2021 30 June 2020

Cash flows from operating activities

Cash receipts from customers 13,738,230,261 11,596,766,648
Cash paid to suppliers and employees (13,189,877,970) (11,157,253,651)
Cash generated from operating activities 548,352,291 439,512,997
Interest paid (1,155,570,138) (1,356,924,650)
Interest paid for lease liabilities (108,254,526) (93,388,700)
Income tax paid (21,227,542) (13,720,284)
Net cash used in operating activities (736,699,915) (1,024,520,637)

Cash flows from investing activities

Acquisition of capital work in progress (56,229,903) (21,826,247)
Proceeds from disposal of property, plant and equipment - 694,752
Net cash used in investing activities (56,229,903) (21,131,495)

Cash flows from financing activities

Proceeds from inter-company borrowings 5,452,585,113 5,413,336,288
Repayment of inter-company borrowings (5,722,040,958) (3,510,027,151)
Proceeds from/(repayment of) loans and borrowings 1,476,360,217 (699,923,349)
Payment for principal portion of lease liabilities (199,551,367) (181,346,251)
Net cash generated from financing activities 1,007,353,005 1,022,039,537

Net decrease in cash and cash equivalents 214,423,187 (23,612,595)

Cash and cash equivalents at the beginning of the year (999,829,409) (976,216,814)
Cash and cash equivalents at 30 June (785,406,222) (999,829,409)

Page Annual Report 2020-

ACI Pure Flour Limited
Directors' Report

ACI Pure Flour Limited (APFL), a private company limited by shares, is a subsidiary of Advanced
Chemical Industries (ACI) Limited having 95% shareholding in the company and one of the most
successful businesses within ACI conglomerate.

ACI Pure Flour Limited has been upholding its interminable accomplishments ever since its formation as
a subsidiary of Advanced Chemical Industries Limited.

The company functions its activities based on the motto of offering the best quality products to the
consumers through continuously enhanced innovation of product and communication. ACI Pure
Flour Limited has ensured to keep the promise of reaching a number of highly extensive households
with the finest quality Atta, Maida and Suji. Alongside the basic Atta, the company has given
origination to an extended line of specialized products such as Multigrain Atta, Brown Atta, Oats
Atta, and the recently launched Lite Brown Atta which has been tailored as the pathway of the first
step of healthy life. The expanded line of Maida comprises of Parata Maida and Baking Maida while
sustaining the constant growth of the basic Maida. The company has been carrying on its adept
implementation of providing the uncompromised quality of Suji which serves the purpose of being
the purest and safest choice of baby food.

The operating results of the Company for the year ended on 30 June 2021 are as follow:

Key Financial Results Taka

Revenue 5,394,250,494

Gross Profit/(Loss) 317,336,049

Operating Profit/(Loss) 42,128,858

Profit/(Loss) Before Tax 85,320,746

Profit/(Loss) After Tax 46,756,299

On behalf of the Board

Shusmita Anis Kamran Tanvirur Rahman

Director Director

Dhaka, 24 October 2021

Page 174 Annual Report 2020-2021 Annual Report 2020- Page

 M. J. ABEDIN & CO
Gg. †R. Av‡e`xb GÛ †Kvs
Chartered Accountants
National Plaza, 3rd Floor
109 Bir Uttam C. R. Datta Road
Dhaka -1205, Bangladesh
T +088 02 9666508, 9675340
E audit@mjabedin.com
www.mjabedin.com

Independent Auditors' Report to the Shareholders of

ACI Pure Flour Limited
Report on the Audit of the Financial Statements

Opinion

We have audited the financial statements of ACI Pure Flour Limited, which comprise the statement
of financial position as at 30 June 2021, and the statement of profit or loss and other comprehensive
income, statement of cash flow and statement of changes in equity for the year then ended, and
notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying financial statements present fairly, in all material respects, the
financial position of the company as at 30 June 2021, and its financial performance and its cash flows
for the year then ended in accordance with International Financial Reporting Standards (IFRSs).

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for the Audit of the
Financial Statements section of our report. We are independent of the Company in accordance with the
International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA
Code) together with the ethical requirements that are relevant to our audit of the financial statements in
Bangladesh, and we have fulfilled our other ethical responsibilities in accordance with these
requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.

Other Information

Management is responsible for the other information. The other information comprises all of the information
in the Directors’ Report to the Shareholders other than the financial statements and our auditors’ report
thereon.

Our opinion on the financial statements does not cover the other information and we do not express any
form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with
the financial statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated. If, based on the work we have performed, we conclude that there is a material misstatement
of this other information, we are required to report the fact, we have nothing to report in this regard.

An independent member firm of

Moore Global Network Limited

Annual Report 2020- Page

 M. J. ABEDIN & CO
Chartered Accountants

Responsibilities of Management and Those Charged with Governance for the Financial
Statements and Internal Controls

Management is responsible for the preparation and fair presentation of the financial statements in
accordance with International Financial Reporting Standards 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.

In preparing the financial statements, management is responsible for assessing the Company’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless management either intends to liquidate the Company or to
cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with ISAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.

Page Annual Report 2020-

 M. J. ABEDIN & CO
Chartered Accountants

• Conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Company’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
auditor’s report to the related disclosures in the financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to
the date of our auditor’s report. However, future events or conditions may cause the Company to
cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including
the disclosures, and whether the financial statements represent the underlying transactions and events in
a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.

Report on other Legal and Regulatory Requirements

In accordance with the Companies Act, 1994, we report the following:

a) we have obtained all the information and explanation which to the best of our knowledge and belief
were necessary for the purpose of our audit and made due verification thereof;

b) 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; and

c) the statement of financial position and the statement of profit or loss and other comprehensive income
dealt with by the report are in agreement with the books of account.

Dhaka, 24 October 2021 M. J. ABEDIN & CO

Chartered Accountants
Partner: Kamrul Abedin FCA
Enroll. Number: 0527
DVC No: 2110240527AS712131

Annual Report 2020- Page

ACI Pure Flour Limited
Statement of Financial Position
as at 30 June 2021

30 June 30 June
In Taka 2021 2020

Assets
Property, plant and equipment 641,282,536 554,149,781
Capital work-in-progress 1,865,523 75,866,816
Non-current assets 643,148,059 630,016,597

Inventories 284,570,007 431,565,030

Trade receivables 90,039,549 133,023,443
Other receivables 7,887,083 956,235
Inter-company receivables 590,694,946 553,684,708
Advances, deposits and prepayments 60,940,769 33,607,414
Cash and bank balances 39,407,451 60,700,054
Current assets 1,073,539,805 1,213,536,884
Total assets 1,716,687,864 1,843,553,481

Equity
Share capital 40,000,000 40,000,000
Revaluation reserve 244,681,579 218,270,676
Retained earnings 920,113,687 873,662,511
Total equity 1,204,795,266 1,131,933,187

Liabilities
Employment benefits 22,913,316 23,298,493
Deferred tax liabilities 53,201,614 51,509,800
Non-current liabilities 76,114,930 74,808,293

Bank overdraft 25,812,472 42,302,937

Short term loan 9,102,375 107,329,500
Trade payables 163,815,143 240,985,881
Other payables 189,572,448 158,830,838
Inter-company payables - 22,426,705
Current tax liabilities 47,475,230 64,936,140
Current liabilities 435,777,668 636,812,001
Total liabilities 511,892,598 711,620,294
Total equity and liabilities 1,716,687,864 1,843,553,481

Shusmita Anis Kamran Tanvirur Rahman Mohammad Mostafizur Rahman

Director Director Company Secretary
As per our separate report of even date annexed.

M. J. ABEDIN & CO
Chartered Accountants
Partner: Kamrul Abedin FCA
Enroll. Number: 0527
Dhaka, 24 October 2021 DVC No: 2110240527AS712131

Page Annual Report 2020-

ACI Pure Flour Limited
Statement of Profit or Loss and Other Comprehensive Income

For the year ended 30 June 2021

30 June 30 June
In Taka 2021 2020

Revenue 5,394,250,494 5,082,884,402

Cost of sales (5,076,914,445) (4,618,456,108)
Gross profit 317,336,049 464,428,294

Administrative, selling and distribution expenses (277,185,276) (262,739,509)

Other income/(loss) 1,978,085 (164,881)
Operating profit 42,128,858 201,523,904
Finance income 47,682,454 59,003,965
Profit before contribution to WPPF 89,811,312 260,527,869
Contribution to WPPF (4,490,566) (13,026,393)
Profit before tax 85,320,746 247,501,475

Income tax expenses:

Current tax (37,761,116) (96,537,465)
Deferred tax (expenses)/income (803,331) 4,218,601
(38,564,447) (92,318,864)
Profit after tax 46,756,299 155,182,611
Other comprehensive income:
Revaluation surplus 27,430,153 -
Deferred tax on revaluation surplus (1,019,250) -
Remeasurement of defined benefit plan (435,890) -
Related tax 130,767 -
Total other comprehensive income, net of tax 26,105,780 -

Total comprehensive income 72,862,079 155,182,611

Shusmita Anis Kamran Tanvirur Rahman Mohammad Mostafizur Rahman

Director Director Company Secretary
As per our separate report of even date annexed.

M. J. ABEDIN & CO
Chartered Accountants
Partner: Kamrul Abedin FCA
Enroll. Number: 0527
Dhaka, 24 October 2021 DVC No: 2110240527AS712131

Annual Report 2020- Page

ACI Pure Flour Limited
Statement of Changes in Equity
For the year ended 30 June 2021

Share Retained Revaluation For 01 July 2020

capital Earnings Surplus to 30 june 2021
Taka Taka Taka Taka

Balance as at 01 July 2020 40,000,000 873,662,511 218,270,676 1,131,933,187

Net profit after tax for the year - 46,756,299 - 46,756,299
Total other comprehensive income - (305,123) 26,410,903 26,105,780
Total comprehensive income for the year - 46,451,176 26,410,903 72,862,079
Balance at 30 June 2021 40,000,000 920,113,687 244,681,579 1,204,795,266

Balance as at 01 July 2019 40,000,000 718,479,900 218,270,676 976,750,576

Profit after tax for the year - 155,182,611 - 155,182,611
Total other comprehensive income - - - -
Balance at 30 June 2020 40,000,000 873,662,511 218,270,676 1,131,933,187

Page Annual Report 2020-

ACI Pure Flour Limited
Statement of Cash Flows

For the year ended 30 June 2021

For 01 July 2020 to For 01 July 2019 to

In Taka 30 June 2021 30 June 2020
A Cash flows from operating activities
Cash received from customers 5,437,234,388 5,100,851,076
Cash received from other income 3,437,919 3,886,631
5,440,672,307 5,104,737,707
Cash received/(paid) from/(for) :
Purchase of inventories and for production (4,973,256,007) (4,715,464,536)
Operating expenses (239,476,149) (299,960,733)
Other receivables (6,930,848) 3,351,282
Workers profit participation fund (13,026,393) (4,872,461)
Advance, deposits and prepayments (27,333,355) (733,522)
(5,260,022,752) (5,017,679,970)
Cash generated from operations 180,649,555 87,057,738
Finance income 47,682,454 59,003,965
Income tax paid (55,222,026) (97,509,612)
(7,539,572) (38,505,647)
Net cash from operating activities 173,109,983 48,552,091

B Cash flows from investing activities

Acquisition of property, plant and equipment (1,943,333) (40,898,662)
Payment for capital work in progress (19,305,260) (75,866,816)
Sale proceeds from property, plant and equipment 1,000,540 -
Net cash used in investing activities (20,248,053) (116,765,478)

C Cash flows from financing activities

Short term bank loan received/(paid) (98,227,125) (38,486,938)
Intercompany debts(paid)/received (59,436,943) 19,023,160
Net cash flows provided by financing activities (157,664,068) (19,463,778)

D Net cash flow from all activities (A+B+C) (4,802,138) (87,677,166)

E Cash and bank balances at the beginning of the year 18,397,117 106,074,283
F Cash and bank balances at reporting date 13,594,979 18,397,117

Closing Balance represents :

Cash in hand and at bank 39,407,451 60,700,054
Bank overdraft (25,812,472) (42,302,937)
13,594,979 18,397,117

Annual Report 2020- Page

ACI Foods Limited
Directors' Report

ACI Foods Limited (The Company) was enlisted in 2006 with the Registrar of Joint Stock Companies
of Bangladesh as a subsidiary of Advanced Chemical Industries Limited. ACI holds 99.3% shares in
the Company. With vision to contribute in improvement of food and nutrition for the people of
Bangladesh, the Company in manufacturing, marketing and distribution of staple food rice, spices,
mustard oil, noodles, beverages and bakery products.

ACI Foods Limited has grown by 15.9% from the previous fiscal year. The business has
experienced sharp growth throughout the year, even during the most challenging times. Currently,
the company is engaged in manufacturing, marketing and distributing a variety of its own branded
products including spice, mustard oil, rice, noodles, bakery and snacks items through the brands – Pure
and Fun.

At the time when the country required foods made with utmost hygienic care, ACI Foods Limited
stepped in with its innovative methods. While doing so, the company made it a mission to empower
women simultaneously and establish a state-of-the-art factory in Sirajgonj, where 80% of the factory
workers are female. The goal for ACI Foods was never just to serve customers but also to help and
empower those who were provided with limited opportunities as opposed to what they rightfully
deserved.

ACI PURE Spices has taken an initiative to provide the best quality Chilli Powder in Bangladesh through
backward integration. Collaborating with a prominent Chilli scientist and Chilli farmers to grow the best
breed of chilli in Bangladesh. As a result, ACI PURE Chilli Powder is now the best Chilli Powder in
Bangladesh. In addition, ACI Pure Spices partnered with two of the best Cooking Artists of Bangladesh-
Ms. Alpona Habib and Ms. Nahid Osman and narrated a fascinating story where we could see the
cooking artists advocating ACI PURE spice brand is the purest of the country. This campaign
achieved unprecedented results in both mainstream and digital media. Moreover, ACI Pure Spices
launched the exotic range of mixed spices having Dry fish Masala, Dhakaiya Kacchi Biriyani, Chilli
Flakes, Shad E Dhamaka to provide a holistic solution to cooking and make cooking simpler. Also,
based on current consumer demand, ACI Fun stepped into homemade snack solutions- Fresh Fry,
where consumers can prepare chips in accordance of their desired taste.

The operating results of the Company for the year ended on 30 June 2021 are as
follow:
Key Financial Results Taka
Revenue 5,976,243,212
Gross Profit/(Loss) 801,464,151
Operating Profit/(Loss) 301,028,308
Profit/(Loss) Before Tax 7,238,688
Profit/(Loss) After Tax (42,530,420)

On behalf of the Board

Shusmita Anis Kamran Tanvirur Rahman

Director Director

Dhaka, 24 October 2021

Page 182 Annual Report 2020-2021

Annual Report 2020- Page

 M. J. ABEDIN & CO
Gg. †R. Av‡e`xb GÛ †Kvs
Chartered Accountants
National Plaza, 3rd Floor
109 Bir Uttam C. R. Datta Road
Dhaka -1205, Bangladesh
T +088 02 9666508, 9675340
E audit@mjabedin.com
www.mjabedin.com

Independent Auditors' Report to the Shareholders of

ACI Foods Limited
Report on the Audit of the Financial Statements

Opinion
We have audited the financial statements of ACI Foods Limited, which comprise the statement of
financial position as at 30 June 2021, and the statement of profit or loss and other comprehensive
income, statement of cash flow and statement of changes in equity for the year then ended, and
notes to the financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying financial statements present fairly, in all material respects, the
financial position of the company as at 30 June 2021, and its financial performance and its cash flows
for the year then ended in accordance with International Financial Reporting Standards (IFRSs).

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for the Audit of the
Financial Statements section of our report. We are independent of the Company in accordance with the
International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA
Code) together with the ethical requirements that are relevant to our audit of the financial statements in
Bangladesh, and we have fulfilled our other ethical responsibilities in accordance with these
requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.

Material Uncertainty Related to Going Concern

We draw attention to note- 1.4.14 (a) to the financial statements which describe the uncertainty related
to the company’s ability to continue as a going concern and our report is not modified in respect of the
matter.

Other Information
Management is responsible for the other information. The other information comprises all of the information
in the Directors’ Report to the Shareholders other than the financial statements and our auditors’ report
thereon.
Our opinion on the financial statements does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with
the financial statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated. If, based on the work we have performed, we conclude that there is a material misstatement
of this other information, we are required to report the fact, we have nothing to report in this regard.

An independent member firm of

Moore Global Network Limited

Annual Report 2020- Page

 M. J. ABEDIN & CO
Chartered Accountants

Responsibilities of Management and Those Charged with Governance for the Financial
Statements and Internal Controls
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with International Financial Reporting Standards 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.
In preparing the financial statements, management is responsible for assessing the Company’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless management either intends to liquidate the Company or to
cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with ISAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.

Page Annual Report 2020-

 M. J. ABEDIN & CO
Chartered Accountants

• Conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Company’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
auditor’s report to the related disclosures in the financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to
the date of our auditor’s report. However, future events or conditions may cause the Company to
cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including
the disclosures, and whether the financial statements represent the underlying transactions and events in
a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.

Report on other Legal and Regulatory Requirements

In accordance with the Companies Act, 1994, we report the following:

a) we have obtained all the information and explanation which to the best of our knowledge and belief
were necessary for the purpose of our audit and made due verification thereof;

b) 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; and

c) the statement of financial position and the statement of profit or loss and other comprehensive income
dealt with by the report are in agreement with the books of account.

Dhaka, 24 October 2021 M. J. ABEDIN & CO

Chartered Accountants
Partner: Kamrul Abedin FCA
Enroll. Number: 0527
DVC No: 2110240527AS312006

Annual Report 2020- Page

ACI Foods Limited
Statement of Financial Position
as at 30 June 2021

30 June 30 June
In Taka 2021 2020

Assets
Property, plant and equipment 829,704,473 784,465,733
Capital work-in-progress 75,777,255 99,780,342
Deferred tax asset 94,441,657 105,286,455
Non-current assets 999,923,385 989,532,529

Inventories 1,242,433,588 831,426,777

Trade receivables 231,998,741 254,807,397
Other receivables 43,116,432 62,926,026
Advances, deposits and prepayments 49,166,681 162,944,882
Inter-company receivable - 1,425,159
Cash and cash equivalents 109,368,262 91,907,995
Current assets 1,676,083,704 1,405,438,235
Total assets 2,676,007,089 2,394,970,764

Equity
Share capital 287,000,000 287,000,000
Revaluation surplus 77,473,949 27,318,125
Retained earnings (2,165,013,777) (2,122,483,357)
Total equity (1,800,539,828) (1,808,165,232)

Liabilities
Long term bank loan - 23,936,235
Employee benefits 433,393 432,984
Non-current liabilities 433,393 24,369,219

Bank overdraft 115,498,956 111,575,107

Short term bank loan 692,099,238 234,024,181
Long term bank loan -current portion 26,763,906 54,636,014
Trade payables 505,277,823 582,572,823
Other payables 359,815,370 226,043,032
Inter-company liabilities 2,680,679,052 2,880,342,875
Liability for current tax 95,979,180 89,572,743
Current liabilities 4,476,113,524 4,178,766,777
Total liabilities 4,476,546,917 4,203,135,996
Total equity and liabilities 2,676,007,089 2,394,970,764

Shusmita Anis Kamran Tanvirur Rahman Mohammad Mostafizur Rahman

Director Director Company Secretary
As per our separate report of even date annexed.

M. J. ABEDIN & CO
Chartered Accountants
Partner: Kamrul Abedin FCA
Enroll. Number: 0527
Dhaka, 24 October 2021 DVC No: 2110240527AS312006

Page Annual Report 2020-

ACI Foods Limited
Statement Profit or Loss and other Comprehensive Income

For the year ended 30 June 2021

30 June 30 June
In Taka 2021 2020

Revenue 5,976,243,212 5,158,693,173

Cost of sales (5,174,779,061) (4,397,652,429)
Gross profit 801,464,151 761,040,745
Administration, selling and distribution expenses (524,961,286) (443,759,498)
Other income 24,525,444 6,359,891
Operating profit 301,028,308 323,641,139
Finance cost (293,408,636) (370,647,466)
Profit before contribution to WPPF 7,619,672 (47,006,327)
Contribution to WPPF (380,984) -
Profit before tax 7,238,688 (47,006,327)
Income tax expenses
Current tax expenses (40,117,459) (61,179,637)
Deferred tax expense (9,651,648) 1,198,841
(49,769,107) (59,980,796)
Net Loss after tax (42,530,420) (106,987,123)

Other Comprehensive Income:

Revaluation of Property, plant and equipment 51,348,973 -
Deferred tax expense on revaluation (1,193,150) -
Net Other Comprehensive Income 50,155,824 -

Total profit or loss and other comprehensive income 7,625,404 (106,987,123)

Shusmita Anis Kamran Tanvirur Rahman Mohammad Mostafizur Rahman

Director Director Company Secretary
As per our separate report of even date annexed.

M. J. ABEDIN & CO
Chartered Accountants
Partner: Kamrul Abedin FCA
Enroll. Number: 0527
Dhaka, 24 October 2021 DVC No: 2110240527AS312006

Annual Report 2020- Page

ACI Foods Limited
Statement of Changes in Equity
For the year ended 30 June 2021

For the year ended 30 June 2021

Share Revaluation Retained Total
In Taka Capital Surplus earnings equity

Balance on 01 July 2020 287,000,000 27,318,125 (2,122,483,357) (1,808,165,232)

Other comprehensive income net of tax - 50,155,824 - 50,155,824
Loss after tax - - (42,530,420) (42,530,420)
Balance at 30 June 2021 287,000,000 77,473,949 (2,165,013,777) (1,800,539,828)

For the year ended 30 June 2020

Share Revaluation Retained Total
In Taka Capital reserve earnings equity

Balance on 01 July 2019 287,000,000 27,318,125 (2,015,496,234) (1,701,178,109)

Loss after tax - - (106,987,123) (106,987,123)
Balance at 30 June 2020 287,000,000 27,318,125 (2,122,483,357) (1,808,165,232)

Page Annual Report 2020-

ACI Foods Limited
Statement of Cash Flows

For the year ended 30 June 2021

30 June 30 June
In Taka 2021 2020

Cash flows from operating activities

Cash received from customers 5,999,051,868 5,270,775,263
Cash receipts from other income 9,584,703 6,778,410
6,008,636,571 5,277,553,673

Cash received/(paid) from/(for) :

Purchase of inventory (5,602,815,460) (4,392,075,185)
Other receivables 34,883,530 4,542,863
Operating expenses (386,796,391) (335,605,986)
Advances, deposits and prepayments 113,778,201 (72,518,084)
(5,840,950,121) (4,795,656,393)
Cash generated from operations 167,686,452 481,897,283

Financing cost (293,408,636) (370,647,466)

Income tax (33,711,023) (39,850,376)
(327,119,659) (410,497,841)
Net cash from/(used in) operating activities (159,433,207) 71,399,442

Cash flows from investing activities

Acquisition of property, plant and equipment (2,037,073) (13,062,777)
Payment for capital work-in-progress (32,888,154) (94,868,273)
Net cash from/(used in) investing activities (34,925,227) (107,931,050)

Cash flows from financing activities

Inter-company debts (paid)/received (198,238,664) 51,503,980
Short term loan (paid)/received 458,075,056 70,798,054
Long term loan (paid)/received (51,808,343) (38,864,573)
Net cash from/(used in) financing activities 208,028,049 83,437,462

Net cash increase/(decrease) in cash and cash equivalents 13,669,614 46,905,852

Opening Cash and cash equivalent (19,667,112) (66,154,445)
Effects of Exchanges Rate Changes on Cash and Cash Equilavents (133,195) (418,519)
Cash and cash equivalent at reporting date (6,130,694) (19,667,112)

Closing balance represents

Cash and cash equivalent 109,368,262 91,907,995
Bank overdraft (115,498,956) (111,575,107)
(6,130,694) (19,667,112)

Annual Report 2020- Page

ACI Salt Limited
Directors' Report

Under the Companies Act 1994, ACI Salt Limited was registered as a private company limited by shares
with the Registrar of Joint Stock Companies in Dhaka in 2004. The holding company, Advanced
Chemical Industries Limited, holds 77.67 percent of the business's stock.

Bangladesh's salt industry has been reshaped by ACI Pure Salt. ACI has caused a dramatic shift in
the industry by introducing the highest grade iodized edible salt and educating consumers on the
differences between regular salt and 100% pure salt. Consumer behavior has changed as a result, and
the number of vacuum salt users is steadily increasing. ACI PURE Salt, as the market leader, feels
obligated to continue contributing to the advancement of life's possibilities.

With its unique packaging and product development, ACI PURE Salt continues to bring in novel
techniques in the salt business. ACI PURE Salt's quality management system has been certified by
the ISO 9001:2015. This is a testament to the dedication of the ACI Salt to ensure safety and
regulatory requirements.

It rose to the top of the poll and earned the best brand award in the Salt category for the 9th time
in a row. ACI Pure Salt was named Superbrand 2020-21 for its top-of-mind awareness, brand
heritage, consistent delivery of promise, trust and social perception on relevance and quality.

The operating results of the Company for the year ended on 30 June 2021 are as follow:

Key Financial Results Taka

Revenue 2,032,515,352

Gross Profit/(Loss) 598,730,137

Operating Profit/(Loss) 342,421,332

Profit/(Loss) Before Tax 404,728,600

Profit/(Loss) After Tax 282,960,909

On behalf of the Board

Shusmita Anis Kamran Tanvirur Rahman

Director Director

Dhaka, 21 October 2021

Page 190 Annual Report 2020-2021

 Hoda Vasi Chowdhury & Co
Chartered Accountants

Independent Auditor’s Report to the Shareholders of

ACI Salt Limited
Report on the Audit of the Financial Statements

Opinion

We have audited the financial statements of ACI Salt Limited (the “Company”), which comprise the
statements of financial position as at 30 June 2021, and the statements of profit or loss and other
comprehensive income, statements of changes in equity and statements of cash flows for the year then
ended, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying financial statements give true and fair view of the financial position of the
Company as at 30 June 2021, and of its financial performance and its cash flows for the year then
ended in accordance with International Financial Reporting Standards (IFRSs).

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for the Audit of the
Financial Statements section of our report. We are independent of the Company in accordance with the
International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA
Code) and we have fulfilled our ethical responsibilities in accordance with the IESBA Code and the
Institute of Chartered Accountants of Bangladesh (ICAB) Bye Laws. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Responsibilities of Management and Those Charged with Governance for the Financial
Statements

Management is responsible for the preparation and fair presentation of the financial statements in
accordance with IFRSs, the Companies Act, 1994 and 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.

In preparing the financial statements, management is responsible for assessing the Company’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless management either intends to liquidate the Company or to
cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company’s financial reporting process.

th th
National Office : BTMC Bhaban (6 & 7 Floor), 7-9 Karwan Bazar Commercial Area, Dhaka-1215, Bangladesh
Chattogram Office : Delwar Bhaban (4th Floor), 104 Agrabad Commercial Area, Chattogram-4100, Bangladesh

Annual Report 2020- Page

 Hoda Vasi
Chowdhury & Co

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with ISAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for expressing an opinion on the effectiveness of
the Company’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Company’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
auditor’s report to the related disclosures in the financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to
the date of our auditor’s report. However, future events or conditions may cause the Company to
cease to continue as a going concern.

Page Annual Report 2020-

 Hoda Vasi
Chowdhury & Co

• Evaluate the overall presentation, structure and content of the financial statements, including
the disclosures, and whether the financial statements represent the underlying transactions and events in
a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.

Report on other Legal and Regulatory Requirements

In accordance with the Companies Act, 1994, 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; and

c) the statements of financial position and statements of profit or loss and other comprehensive
income along with the annexed notes 1 to 36 dealt with by the report are in agreement with
the books of account.

Dhaka, 21 October 2021 A F Nesaruddin, FCA

Senior Partner
DVC: 2110260469AS582277 Enrolment no: 469
Hoda Vasi Chowdhury & Co
Chartered Accountants

Annual Report 2020- Page

ACI Salt Limited
Statement of Financial Position
As at 30 June 2021

30 June 2021 30 June 2020

Taka Taka
Assets
Non-current assets
Property, plant and equipment 837,838,430 755,803,598
Capital work-in-progress 275,701,713 202,928,094
1,113,540,143 958,731,692
Current assets
Inventories 136,154,912 180,581,241
Trade receivables 34,493,266 26,831,711
Other receivables 1,699,843 1,068,037
Advances, deposits and prepayments 30,859,492 19,404,009
Inter-company receivables 1,434,750,198 1,294,345,916
Cash and cash equivalents (90,942,739) (60,862,328)
1,547,014,972 1,461,368,586
Total assets 2,660,555,116 2,420,100,278
Equity and Liabilities
Shareholders' equity
Share capital 300,000,000 300,000,000
Revaluation reserve 259,856,683 142,447,883
Retained earnings 1,105,841,961 824,813,102
1,665,698,644 1,267,260,985
Non-current liabilities
Employee benefit 31,704,522 33,161,578
Deferred tax liability 126,561,961 135,751,748
Long-term loan 56,262,052 6,729,564
214,528,535 175,642,890
Current liabilities
Bank overdrafts 132,002,273 153,445,921
Short-term loan 270,028,427 489,971,546
Trade payables 56,514,671 80,027,746
Other payables 219,705,431 167,372,690
Current tax liability 102,077,134 86,378,500
Total current liabilities 780,327,936 977,196,402
Total liabilities 994,856,472 1,152,839,293
Total equity and liabilities 2,660,555,116 2,420,100,278

Shusmita Anis Kamran Tanvirur Rahman Mohammad Mostafizur Rahman

Director Director Company Secretary
Auditors' report to the shareholders, See annexed report of date

A F Nesaruddin, FCA
Senior Partner
Dhaka, 21 October 2021 Enrolment no: 469
DVC: 2110260469AS582277 Hoda Vasi Chowdhury & Co
Chartered Accountants

Page Annual Report 2020-

ACI Salt Limited
Statement of Profit or Loss and other Comprehensive Income

For the year ended 30 June 2021

30 June 2021 30 June 2020

Taka Taka

Revenue 2,032,515,352 2,103,692,277

Cost of sales (1,433,785,215) (1,539,759,316)
Gross profit 598,730,137 563,932,961
Administrative, selling and distribution expenses (264,883,038) (267,948,416)
Other income 8,574,233 8,524,151
Operating profit 342,421,332 304,508,696
Financing income/(expense) 83,608,773 46,163,685
Profit before contribution to WPPF 426,030,105 350,672,381
Contribution to WPPF (21,301,505) (17,533,619)
Profit before tax 404,728,600 333,138,761
Income tax expenses
Current tax expenses (133,760,656) (117,987,194)
Deferred tax income 11,992,966 1,025,962
(121,767,690) (116,961,232)
Net profit after tax 282,960,909 216,177,529
Other comprehensive income:
Remeasurement of defined benefit plan (2,760,072) -
Related deferred tax on defined benefit plan 828,022 -
(1,932,050) -
Revaluation surplus of property plant and equipment 121,040,000 -
Ralated deferred tax on revaluation (3,631,200) -
117,408,800 -
Total comprehensive income 398,437,659 216,177,529

Shusmita Anis Kamran Tanvirur Rahman Mohammad Mostafizur Rahman

Director Director Company Secretary
Auditors' report to the shareholders, See annexed report of date

A F Nesaruddin, FCA
Senior Partner
Dhaka, 21 October 2021 Enrolment no: 469
DVC: 2110260469AS582277 Hoda Vasi Chowdhury & Co
Chartered Accountants

Annual Report 2020- Page

ACI Salt Limited
Statement of Changes in Equity
For the year ended 30 June 2021

Share Revaluation Retained

Particulars capital reserve earnings Total equity
Taka Taka Taka Taka

Balance as at 01 July 2019 300,000,000 142,447,883 608,635,573 1,051,083,456

Profit after tax - - 216,177,529 216,177,529
Balance as at 30 June 2020 300,000,000 142,447,883 824,813,102 1,267,260,985
Profit after tax - - 282,960,909 282,960,909
Other comprehensive income - 117,408,800 (1,932,050) 115,476,750
Balance as at 30 June 2021 300,000,000 259,856,683 1,105,841,961 1,665,698,644

Page Annual Report 2020-

ACI Salt Limited
Statement of Cash Flows
For the year ended 30 June 2021

30 June 2021 30 June 2020

Taka Taka
A Cash flows from operating activities
Cash received from customers 2,024,853,798 2,108,418,437
Cash received from other income 955,865 271,445
2,025,809,663 2,108,689,882
Cash (paid)/received (for)/from:
Purchase of inventories (1,361,370,350) (1,326,405,584)
Operating expenses (219,708,933) (253,157,640)
Workers' profit participation fund (17,215,336) (8,394,953)
Advances, deposits and prepayments (4,468,922) 13,471,045
(1,602,763,541) (1,574,487,132)
Cash generated from operating activities 423,046,122 534,202,750

Financing income 83,608,773 46,163,685

Income tax (118,062,022) (90,098,801)
(34,453,251) (43,935,117)
Net cash from operating activities 388,592,871 490,267,633

B Cash flows from investing activities

Purchase of property, plant and equipment (13,641,102) (5,762,629)
Long term investment - 13,438,262
Cash paid for capital work-in-progress (72,773,619) (169,297,428)
Net cash (used) in investing activities (86,414,721) (161,621,795)

C Cash flows from financing activities

Received/(paid) of short term loan (219,943,118) 131,203,996
Received of long term loan 49,532,488 6,729,564
Inter-company loan paid (140,404,282) (601,501,793)
Net cash (used) in financing activities (310,814,912) (463,568,233)
D Net cash flows (A+B+C) (8,636,763) (134,922,395)
E Opening cash and cash equivalents (214,308,249) (79,385,853)
F Closing cash and cash equivalents (D+E) (222,945,012) (214,308,248)

Closing balance represents:

Cash and cash equivalents (90,942,739) (60,862,328)
Bank overdrafts (132,002,273) (153,445,921)
(222,945,012) (214,308,248)

Annual Report 2020- Page

ACI Motors Limited
Directors' Report

ACI Motors Limited (The Company) is a private company limited by shares incorporated in 2007 with the Registrar of Joint Stock Companies, Dhaka,
as a subsidiary of Advanced Chemical Industries (ACI) Limited. ACI holds a 52.7% share in the Company. The business of the Company has been
segmented into three major SBUs: 1) Farm Mechanization 2) Yamaha 3) Construction Equipment, Commercial Vehicles, and Others.
ACI Motors, the leading farm mechanization company in Bangladesh provides a complete farm mechanization solution with their wide range of
products and services which covers all the farm mechanization requirements of a farmer starting from cultivation, transplanting, irrigation,
harvesting, and post-harvest preservation. In FY 20-21, ACI Motors Farm mechanization unit ensured 27% growth over last year. ACI Motors’
Tractor brand Sonalika has continued market leadership with 36% market share through excellent product and superior service commitment. ACI
power tiller was also leading in the high HP power tiller segment in FY 20-21. This year in the Boro harvesting season, ACI Motors played a major
role in solving the harvesting problem of customers during the COVID-19. Also, the Government has provided 50% subsidy on the harvesters. Due
to the superior product quality and the best after-sales service; this business is projecting huge expansion in near future. Also, ACI Agri-Machinery
manufacturing factory is currently manufacturing Thresher, Hand Power Tiller & Trailers and in the future modern Agri-machineries will be
assembled & manufactured in this facility.
ACI Motors had started manufacturing of 150 CC Yamaha motorcycle (FZS V3) from May 2021 with maintaining Yamaha international standard. In
the 150CC segment, Yamaha is regarded as the most premium motorcycle. With this manufacturing & Complete Knock Down (CKD) setup Yamaha
motorcycle had continued its growth in the motorcycle market. The Motorcycle industry experienced 19% growth in FY 20-21 whereas Yamaha
motorcycle had experienced growth of 15% and maintained 6% market share. Yamaha inventory was unavailable from August 2020 to January
2021 due to COVID-19 impact & supply shortage, otherwise the portfolio would have gained an additional 2% market share. ACI Motors had
continued all kinds of precautions at showrooms with safety measures to take the first mover initiative. It created awareness among customers that
motorcycles can be an alternative and safe transport for them to keep social distancing. To promote music among the young generation, ACI
Motors has continued Yamaha Music School jointly with EMK Center Dhaka by using the online platform. In the pandemic situation, the music school
has gained popularity amongst the music enthusiasts and 500 young musicians were trained by the music school in FY 20-21.
In the Construction Equipment business, ACI Motors is dealing with world-renowned construction equipment brands like Kobelco, Case, Lovol &
Indopower. ACI Motors created its footstep in more mega projects this year like Rampal Power Plant, Shahjalal International Airport 3rd terminal
project, Mirsharai Economic Zone, etc. ACI Motors is expecting to be a part of the infrastructure development of the country through the
construction equipment segment.
ACI Motors started Commercial Vehicle business with the Global number one Light Commercial Vehicle manufacturer Foton International. Due to the
good product quality and service competency of ACI Motors; along with standardized sales and service network throughout the country, Foton is
getting a very positive response from the customers. Foton 1 ton model was highly accepted by the customers because of its’ more cargo space &
aesthetic outlook. Though the market growth was negative in FY 20-21 by 5%, Foton had significant growth of 100% over the last financial year by
ensuring standardized dealer network expansion (from 17 to 23 nos. 3S Dealers), service & spare parts availability, superior product positioning, and
efficient online & offline marketing communication. Foton International awarded ACI Motors as the global best distributor for after-sales service for
the period of January 2021 to March 2021. This business is expecting to flourish more in the coming days.
ACI Motors had also launched global leader lubricant brand, ENI in the automotive and industrial segment. This business has very good perspective
in the future. ACI Motors was flexible regarding credit recovery in FY 20-21 by taking COVID-19 impact on rural people income & situation,
and governments’ recommendation into consideration. ACI Motors is approaching for sustainable growth with its quality products backed up with
superior service commitment and customer centric activities in the upcoming year.
The operating results of the Company for the year ended on 30 June 2021 are as follows:
Key Financial Results Taka
Revenue 16,311,631,673
Gross Profit/(Loss) 3,734,347,973
Operating Profit/(Loss) 1,937,332,599
Profit/(Loss) before tax 1,581,216,731
Profit/(Loss) after tax 1,069,246,517

On behalf of the Board

Dr. A.K.M Fareyzul Haque Ansarey Kamran Tanvirur Rahman

Managing Director Director

Dhaka, 21 October 2021

Page 198 Annual Report 2020-2021

 Hoda Vasi Chowdhury & Co
Chartered Accountants

Independent Auditors’ Report to the Shareholders of

ACI Motors Limited
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of ACI Motors Limited (“the Company”), which comprise the statement of
financial position as at June 30, 2021, and the statement of profit or loss and other comprehensive
income, statement of changes in equity and statement of cash flows for the year then ended, and notes to the
financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of
the Company as at June 30, 2021, and its financial performance and its cash flows for the year then ended in
accordance with International Financial Reporting Standards (IFRSs).

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under
those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements
section of our report. We are independent of the Company in accordance with the International Ethics
Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code), and we have fulfilled
our ethical responsibilities in accordance with the IESBA Code and the Institute of Chartered Accountants of
Bangladesh (ICAB) by Laws. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.

Other Matter
The financial statements of ACI Motors Limited for the year ended June 30 2020 were audited by Ashraful
Haque Nabi & Co. Chartered Accountants who expressed an Unmodified opinion on the Financial statements.

Responsibilities of Management and Those Charged with Governance for the Financial Statements
Management is responsible for the preparation of financial statements that give a true and fair view in accordance
with IFRSs, the Companies Act, 1994 and other applicable Laws and regulation 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.
In preparing the financial statements, management is responsible for assessing the Company’s ability to continue
as a going concern, disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless management either intends to liquidate the Company or to cease operations, or
has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud
or error and are considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these financial statements.

National Office : BTMC Bhaban (6th & 7th Floor), 7-9 Karwan Bazar Commercial Area, Dhaka-1215, Bangladesh
Chattogram Office : Delwar Bhaban (4th Floor), 104 Agrabad Commercial Area, Chattogram-4100, Bangladesh

Annual Report 2020- Page

 Hoda Vasi
Chowdhury & Co

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error, design and perform audit procedures responsive to those risks and, obtain audit evidence that
is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit 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 Company’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the
related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence obtained up to the date of our auditor's report.
However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures,
and whether the financial statements represent the underlying transactions and events in a manner that
gives a true and fair view.

We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control that
we identify during our audit.

Report on Other Legal and Regulatory Requirements

In accordance with the Companies Act, 1994, we also report the following:

a) we have obtained all the information and explanation which to the best of our knowledge and belief were
necessary for the purpose of our audit and made due verification thereof;

b) 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; and

c) the statement of financial position and statement of profit or loss and other comprehensive income along with
the annexed notes 1 to 33 dealt with by the report are in agreement with the books of account.

Dhaka, 21 October 2021 Sk Md Tarikul Islam, FCA

Partner
Membership no.: 1238
Hoda Vasi Chowdhury & Co
Chartered Accountants
DVC: 2110261238AS228077

Page Annual Report 2020-

ACI Motors Limited
Statement of Financial Position

30 June 30 June
In Taka 2021 2020
Assets
Property, plant and equipment 819,100,914 612,384,247
Capital work in progress 92,460,611 159,041,786
Investment in shares 2,056,732 -
Right-of-use assets 33,195,906 52,904,195
Deferred tax assets 29,892,351 -
Non-current assets 976,706,514 824,330,228
Inventories 3,382,229,246 1,543,208,905
Trade receivables 5,428,439,222 4,388,327,072
Other receivables 37,880,808 61,129,918
Inter-company receivables 2,252,704,788 4,925,011,607
Advances, deposits and prepayments 588,853,979 191,376,745
Cash and cash equivalents 1,384,445,595 254,158,771
Current assets 13,074,553,638 11,363,213,018
Total assets 14,051,260,152 12,187,543,246
Equity
Share capital 1,233,333,400 1,000,000,000
Share premium 998,804,745 -
Retained earnings 3,166,879,513 2,104,254,996
Reserves 77,083,013 -
Total equity 5,476,100,671 3,104,254,996
Liabilities
Long term loans - 1,233,530,683
Lease liability 17,986,667 35,380,204
Employee benefit 66,221,447 47,447,080
Deferred tax liability - 1,160,188
Non-current liabilities 84,208,114 1,317,518,155
Bank overdraft 15,321,978 177,994,399
Loans and borrowings 5,872,212,390 6,163,344,800
Lease liability-current portion 17,393,537 16,987,644
Trade payables 150,594,534 64,119,081
Other payables 2,320,995,236 1,199,614,007
Current tax liability 114,433,692 143,710,164
Current liabilities 8,490,951,367 7,765,770,095
Total liabilities 8,575,159,481 9,083,288,250
Total equity and liabilities 14,051,260,152 12,187,543,246

Dr. A.K.M Fareyzul Haque Ansarey Kamran Tanvirur Rahman Mohammad Mostafizur Rahman
Managing Director Director Company Secretary
As per our report of same date.

Sk Md Tarikul Islam, FCA

Partner
Dhaka, 21 October 2021 Membership No.: 1238
Hoda Vasi Chowdhury & Co
Chartered Accountants
DVC: 2110261238AS228077

Annual Report 2020- Page

ACI Motors Limited
Statement of Profit or Loss

For the year ended For the year ended

In Taka 30 June 2021 30 June 2020

Revenue 16,311,631,673 13,148,386,635

Cost of sales (12,577,283,700) (9,685,127,640)
Gross profit 3,734,347,973 3,463,258,995
Administrative, selling and distribution expenses (1,912,521,504) (1,779,770,659)
Other income 115,506,130 99,668,097
Operating profit 1,937,332,599 1,783,156,433
Financing costs (272,893,935) (503,379,955)
Profit before contribution to WPPF & tax 1,664,438,664 1,279,776,478
Contribution to WPPF (83,221,933) (63,988,824)
Profit before tax 1,581,216,731 1,215,787,654
Income tax expenses :
Current tax (546,481,707) (387,971,985)
Deferred tax income/(expense) 34,511,493 (14,800,043)
(511,970,214) (402,772,028)
Profit after tax 1,069,246,517 813,015,626

Earnings per share

Basic and diluted earnings per share 94.11 81.30

Dr. A.K.M Fareyzul Haque Ansarey

Kamran Tanvirur Rahman Mohammad Mostafizur Rahman
Managing Director
Director Company Secretary
As per our report of same date.

Sk Md Tarikul Islam, FCA

Partner
Dhaka, 21 October 2021 Membership No.: 1238
Hoda Vasi Chowdhury & Co
Chartered Accountants
DVC: 2110261238AS228077

Page Annual Report 2020-

ACI Motors Limited
Statement of Profit or Loss and Other Comprehensive Income

For the year ended For the year ended

In Taka 30 June 2021 30 June 2020

Profit after tax 1,069,246,517 813,015,626

Other comprehensive income:

Items that will not be reclassified to profit or loss 162,659

Change in fair value of available-for-sale financial assets 180,732 -
Related tax on fair value of available-for-sale financial assets (18,073) -
(6,622,000)
Remeasurement of defined benefit plan (9,460,000) -
Related tax on remeasurement of defined benefit plan 2,838,000 -
76,920,354
Revaluation surplus on property, plant and equipment 83,199,234 -
Related tax on revaluation surplus (6,278,880) -
Total other comprehensive income for the year, net of tax 70,461,013 -

Total comprehensive income for the year 1,139,707,530 813,015,626

Dr. A.K.M Fareyzul Haque Ansarey

Kamran Tanvirur Rahman Mohammad Mostafizur Rahman
Managing Director
Director Company Secretary
As per our report of same date.

Sk Md Tarikul Islam, FCA

Partner
Dhaka, 21 October 2021 Membership No.: 1238
Hoda Vasi Chowdhury & Co
Chartered Accountants
DVC: 2110261238AS228077

Annual Report 2020- Page

ACI Motors Limited
Statement of Changes in Equity

For the year ended 30 June 2021

Share Share Retained Revaluation FVOCI
In Taka capital premium earnings reserve reserve Total equity

Balance as at 1 July 2020 1,000,000,000 - 2,104,254,996 - - 3,104,254,996

Profit/(Loss) after tax - - 1,069,246,517 - - 1,069,246,517
Other comprehensive income-net off tax - - (6,622,000) 76,920,354 162,659 70,461,013
Issuance of convertible preference share 233,333,400 - - - - 233,333,400
Share premium - 998,804,745 - - - 998,804,745
Balance as at 30 June 2021 1,233,333,400 998,804,745 3,166,879,513 76,920,354 162,659 5,476,100,671

For the year ended 30 June 2020

Share Share Retained Revaluation FVOCI
In Taka capital premium earnings reserve reserve Total equity

Balance as at 1 July 2019 1,000,000 - 2,290,239,371 - - 2,291,239,371

Profit/(Loss) after tax - - 813,015,625 - - 813,015,625
Other comprehensive income-net off tax - - - - - -
Issuance of bonus share 999,000,000 - (999,000,000) - - -
Balance as at 30 June 2020 1,000,000,000 - 2,104,254,996 - - 3,104,254,996

Page Annual Report 2020-

ACI Motors Limited
Statement of Cash Flows

For the year ended For the year ended

In Taka 30 June 2021 30 June 2020

Cash flows from operating activities

Cash received from customers 15,271,519,523 12,556,705,847
Cash received from other income 137,967,552 96,968,018
Cash (used in)/generated from operating activities 15,409,487,075 12,653,673,865

Payment for purchase (14,297,411,944) (9,144,583,227)

Payment for operating expenses (790,653,112) (1,271,099,549)
Payment for WPPF (28,023,988) (39,411,436)
Payments for advances, deposits and prepayments (394,519,901) 189,888,580
(15,510,608,945) (10,265,205,632)
Cash used in operation (101,121,870) 2,388,468,233

Interest paid, net (265,309,316) (405,003,305)

Income tax paid (575,758,179) (448,842,006)
(841,067,495) (853,845,311)
Net cash (used in)/from operating activities (942,189,365) 1,534,622,922

Cash flows from investing activities

Acquisition of property, plant and equipment (194,908,504) (210,635,627)
Payment for capital work in progress 66,581,175 (20,208,950)
Payment for investment in shares (1,876,000) -
Sales proceed from property, plant and equipment 2,557,711 -
Net cash from (used in)/from investing activities (127,645,618) (230,844,577)

Cash flows from financing activities

Inter-company debts received/(paid) 2,672,306,819 (1,611,700,098)
Short-term loan received/(paid) 1,763,137,857 425,536,229
Payment for lease liability(rent) (16,987,643) (11,372,745)
Long term loan and other liability received/(paid) (3,287,800,951) (100,205,263)
Receipt of equity investment 1,232,138,145 -
Net cash (used in)/from financing activities 2,362,794,227 (1,297,741,877)

Net increase/(decrease) in cash and cash equivalents 1,292,959,244 6,036,468

Opening cash and cash equivalents 76,164,372 70,127,904
Cash and cash equivalents at reporting date 1,369,123,616 76,164,372

Closing balance represents

Cash and cash equivalents 1,384,445,595 254,158,771
Bank overdraft (15,321,978) (177,994,399)
1,369,123,616 76,164,372

Annual Report 2020- Page

Creative Communication Limited
Directors' Report

Creative Communication Limited (The Company) is a private company limited by shares incorporated in
2007 with the Registrar of Joint Stock Companies, Dhaka. Being the parent company, Advanced
Chemical Industries (ACI) Limited has 60% equity participation in the Company. It is an integrated
communication house staffed by dedicated and pragmatic specialists working as a team. As a
forward-thinking marketing and advertising firm, Creative Communication Limited is a solid partner at
both strategic and tactical levels and has developed several partnerships with the most state-of-the-art
players in numerous fields.

The principal business of the Company is to provide result-oriented advertisement, public relations and
complete corporate communication solutions and has long experience in handling outdoors, events and
project management along with strong rapport in the electronic and press media.

The operating results of the Company for the year ended on 30 June 2021 are as follows:

Key Financial Results Taka

Revenue 59,063,895

Gross Profit/(Loss) 11,153,978

Operating Profit/(Loss) 9,172,888

Profit/(Loss) before tax 10,396,930

Profit/(Loss) after tax 6,632,021

On behalf of the Board

Bilkis Mansoor Kamran Tanvirur Rahman

Director Director

Dhaka, 24 October 2021

Page 206 Annual Report 2020-2021

ASHRAFUL HAQUE NABI & CO.
Chartered Accountants

Independent Auditors’ Report to the Shareholders of

Creative Communication Limited
Report on the Audit of the Financial Statements
Opinion

We have audited the accompanying financial statements of Creative Communication Limited which comprise
the statement of financial position as at 30 June 2021, and the statement of profit or loss and
other comprehensive income, statement of changes in equity, statement of cash flows for the year then
ended, and notes to the financial statements, including a summary of significant accounting policies and
other explanatory information.

In our opinion, the accompanying financial statement presents fairly, in all material respects, the
financial position of “Creative Communication Limited” as at 30 June 2021, and its financial performance
and its cash flows for the year then ended in accordance with the International Financial Reporting
Standards (IFRSs).

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities
under those standards are further described in the Auditors’ Responsibilities for the Audit of the
Financial Statements section of our report. We are independent of the Organization in accordance with
the ethical requirement that is relevant to our audit of the financial statements in Bangladesh, and we
have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Responsibilities of Management and Those Charged with Governance for the Financial
Statements and Internal Controls

Management is responsible for the preparation of financial statements that give a true and fair
view in accordance with IFRSs 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.

In preparing the financial statements, management is responsible for assessing the company’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless management either intends to liquidate the Company or to
cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company’s financial reporting process.

Annual Report 2020- Page

 Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with ISAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.

• Obtain an understanding of internal control relevant to the audit 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 Company's internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.

• Obtain sufficient appropriate audit evidence regarding the financial information of the entities
or business activities within the organization to express an opinion on the financial statements. We
are responsible for the direction, supervision and performance of the audit. We remain solely
responsible for our audit opinion.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting and
based on the audit evidence obtained, Whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the Group’s and company’s ability to continue as a
going concern. If we conclude that an uncertainty exists, we are required to draw attention in our
auditor’s report to the related disclosures in the financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to
the date of our auditor’s report. However, future events or conditions may cause the Group and the
Company to cease to continue as a going concern.

Page Annual Report 2020-

• Evaluate the overall presentation, structure and content of the financial statement, including
the disclosure, and whether the financial statements represent the underlying transactions and events
in a manner that gives a true and fair view.

• We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit

Report on other Legal and Regulatory Requirements

In accordance with the Companies Act 1994, we also report the following:

a) we have obtained all the information and explanations which to the best of our knowledge and
belief were necessary for the purpose of our audit and made due verification thereof;

b) in our opinion, proper books of account as required by law have been kept by the organization so
far as it appeared from our examination of those books;

c) the statement of financial position and the statement of profit or loss and other comprehensive income
dealt with by the report are in agreement with the books of accounts.

Dhaka, 24 October 2021 Ashraful Haque Nabi & Co.

Chartered Accountants.
Firm Registration No.
Signed by: Minhaz Shahid, FCA
Partner/Enrolment No. 1446
DVC # 2110241446AS329247

Annual Report 2020- Page

Creative Communication Limited
Statement of Financial Position

30 June 30 June
In Taka 2021 2020

Assets
Property, plant and equipment 697,806 796,621
Deferred tax assets 143,510 158,840
Non-current assets 841,316 955,461

Trade receivables 104,785,559 149,624,998

Other receivables 2,371,519 2,371,519
Advances, deposits and prepayments 2,385,865 512,701
Cash and cash equivalents 65,462,763 140,138
Current assets 175,005,706 152,649,356
Total assets 175,847,021 153,604,817

Equity
Share capital 1,000,000 1,000,000
Retained earnings 126,757,471 120,125,451
Total equity 127,757,471 121,125,451

Liabilites
Long term employee benefit 8,990,261 9,509,976
Non-current liabilities 8,990,261 9,509,976

Bank overdraft 3,507,077 1,934,152

Other payables 10,071,862 9,429,151
Inter-company paybles 19,352,064 3,009,426
Current tax liabilities 6,168,286 8,596,662
Current liabilities 39,099,289 22,969,390
Toatl liabilities 48,089,550 32,479,366
Total equity and liabilities 175,847,021 153,604,817

Bilkis Mansoor Kamran Tanvirur Rahman Mohammad Mostafizur Rahman

Director Director Company Secretary

As per our report of same date.

Ashraful Haque Nabi & Co.

Chartered Accountants.
Firm Registration No.
Dhaka, 24 October 2021 Signed by: Minhaz Shahid, FCA
Partner/Enrolment No. 1446
DVC # 2110241446AS329247

Page Annual Report 2020-

Creative Communication Limited
Statement of Profit or Loss and Comprehensive Income

Jul'20- Jul'19-
In Taka Jun'21 Jun'20

Revenue 59,063,895 50,855,394

Cost of service (47,909,917) (44,309,016)
Gross profit 11,153,978 6,546,378
Administrative and selling expenses (1,981,090) (2,180,018)
Other income - 25,000
Financing income/(cost) 1,224,042 (584,926)
Profit before tax 10,396,930 3,806,434
Income tax expense:
Current tax (3,749,579) (2,899,684)
Deferred tax income/(expense) (15,330) (27,626)
(3,764,909) (2,927,310)
Profit after tax 6,632,021 879,124
Total Comprehensive Income 6,632,021 879,124

Bilkis Mansoor Kamran Tanvirur Rahman Mohammad Mostafizur Rahman

Director Director Company Secretary

As per our report of same date.

Ashraful Haque Nabi & Co.

Chartered Accountants.
Firm Registration No.
Dhaka, 24 October 2021 Signed by: Minhaz Shahid, FCA
Partner/Enrolment No. 1446
DVC # 2110241446AS329247

Annual Report 2020- Page

Creative Communication Limited
Statement of Changes in Equity
For the year ended 30 June 2021

Share Retained
In Taka capital earnings Total Equity

Balance at 1 July 2020 1,000,000 120,125,451 121,125,451

Total comprehensive income - - -

Profit after tax - 6,632,021 6,632,021
Other comprehensive income - net of tax - - -
Total comprehensive income - 6,632,021 6,632,021

Balance at 30 June 2021 1,000,000 126,757,471 127,757,471

Balance at 1 July 2019 1,000,000 119,246,327 120,246,327

Total comprehensive income - - -

Profit after tax - 879,124 879,124
Other comprehensive income - net of tax - - -
Total comprehensive income - 879,124 879,124

Balance at 30 June 2020 1,000,000 120,125,451 121,125,451

Page Annual Report 2020-

Creative Communication Limited
Statement of Cash Flows

Jul'20- Jul'19-
In Taka Jun'21 Jun'20
Cash flows from operating activities
Cash receipts from customers and others 103,903,334 64,940,359
Cash paid to suppliers and employees (51,402,609) (40,370,603)
Cash generated from operating activities 52,500,725 24,569,756

Finance income/(Cost) 1,224,042 (584,926)

Income tax paid (6,177,955) (5,618,628)
(4,953,913) (6,203,554)
Net cash from operating activities 47,546,812 18,366,202

Cash flows from investing activities

Acquisition of property, plant and equipment (139,750) (181,684)
Net cash (used) in investing activities (139,750) (181,684)

Cash flows from financing activities

Inter-company debts received/(paid) 16,342,638 (16,992,702)
Net cash (used)/from financing activities 16,342,638 (16,992,702)

Net increase in cash and cash equivalents 63,749,700 1,191,816

Cash and cash equivalents at 1 July (1,794,014) (2,985,830)
Cash and cash equivalents at 30 June 61,955,686 (1,794,014)

Closing cash and cash balance represents:

Cash and cash equivalents 65,462,763 140,138
Bank overdraft (3,507,077) (1,934,152)
61,955,686 (1,794,014)

Annual Report 2020- Page

Premiaflex Plastics Limited
Directors' Report

Premiaflex Plastics Limited (The Company) is a private company limited by shares, incorporated in 2007 with the Registrar of Joint
Stock Companies, Dhaka and governed by the Companies Act, 1994. Being the parent company, Advanced Chemical Industries
(ACI) Limited holds 87.32% shares of the Company. The Company Contains two business divisions: Premiaflex Plastics (Flexible
Packaging products manufacturer) and ACI Premio Plastics (premium category consumer plastic products manufacturer).
Premiaflex Plastics specializes in the manufacture and sale of Flexible Packaging products. It offers a diverse portfolio that includes
Lamitube and Label Stickers in addition to the existing Flexible Packaging product line. Due to the pandemic, there was a global
raw material scarcity throughout this fiscal year, making it challenging to ensure optimal capacity utilization. As a result, customers
are not willing to buy the products at a higher price. Regardless of the obstacles, Premiaflex has grown by 21% in FY 20-21.
Premiaflex Plastics is a B2B Business that places a significant focus on client loyalty through the use of high-quality raw materials
and the continuous development of new products for customers. It has an advanced quality management system. The Company
planned to exploit this advantage to develop a niche market for exclusive and privileged customers. The Company is focusing more
on multinationals and large reputable clientele. This will allow the Company to make full use of its resources and enhance
profitability.
With these and numerous other strategies under consideration throughout the year, Premiaflex Plastics was able to gain a
significant market share of 16% while maintaining a decisive competitive edge in the flexible packaging sector. Furthermore, the
Bangladesh Food Processing Sector is evolving, increasing the demand for high-quality packaging. The business intends to
capitalize on this demand by offering high-quality products.
ACI Premio Plastics, another business division of Premiaflex Plastics Limited started its’ journey in 2018. Premio plastics is
producing consumer plastics which consists of plastic made household, furniture and toys products. Nationwide more than 500
distributors are connecting Premio products with consumers. In FY 20-21 business has achieved 6% market share and grown 83%
over last year. Due to COVID-19 situation, raw material purchase price was higher than usual. Given the competitive nature of the
market, it was not possible to ease the pressure by increasing the selling price. As a result, the company experienced a thin profit
margin.
During lockdown period business focused on toys category development to subsidize the revenue which was hampered due to the
market shutdown for non-necessary goods. Toy category grew most 171% over last year. During same period household
and furniture category grew 15% and 26% respectively. Premio plastics launched 25 new artwork designs for its furniture and
household products’ line extension which has created immense competitive edge to standout in the product design benchmark.
Business has also added new category of Water Bottle. Existing categories has also improved through plastic and metal
combination specially in Toy category.
ACI Premio Plastics took many initiatives to communicate its brand and create brand awareness among consumers. In line with
that out of multiple communications, Captain Bike Digital advertisement went viral on social media and also awarded best Film
Bronze award by Bangladesh Brand Forum.
Furthermore, due to the changing lifestyle and earning capacity, demand for the premium plastic products and toys are increasing.
Business is determined to address this changing market dynamics through future investment.

The operating results of the Company for the year ended 30 June 2021 are as follows:

Key Financial Results Taka

Revenue 5,932,517,561
Gross Profit/(Loss) 998,605,044
Operating Profit/(Loss) 523,688,051
Profit/(Loss) before tax 58,086,519
Profit/(Loss) after tax (111,038,160)

On behalf of the Board

Dr. A.K.M Fareyzul Haque Ansarey Kamran Tanvirur Rahman

Managing Director Director

Dhaka, 24 October 2021

Page 214 Annual Report 2020-2021

 SHIRAZ KHAN BASAK & CO.
C H A R T E R E D A C C O U N TA N T S

Independent Auditors' Report to the Shareholders of

Premiaflex Plastics Limited
Report on the Audit of the Financial Statements
Opinion

We have audited the financial statements of Premiaflex Plastics Limited (“the Company”) which
comprise statement of financial position as at 30th June, 2021, and the statement of profit or loss
and other comprehensive income, statement of changes in equity and statement of cash flows for
the year then ended, and notes to the financial statements, including a summary of significant
accounting policies and other explanatory information.

In our opinion, the accompanying financial statements give a true and fair view of the financial position
of the company as at 30th June, 2021, and of its financial performance and its cash flows for the year
then ended in accordance with International Financial Reporting Standards (IFRSs), the Companies Act 1994
and other applicable laws and regulations.

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities
under those standards are further described in the Auditor's Responsibilities for the Audit of the
Financial Statements section of our report. We are independent of the Company in accordance with the
International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA
Code) together with ethical requirement that are relevant to our audit of the financial statements in
Bangladesh, and we have fulfilled our other ethical responsibilities in accordance with these
requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.

Responsibilities of Management and Those Charged with Governance for the Financial
Statements

Management is responsible for the preparation of financial statements that give a true and fair
view in accordance with IFRSs, the Companies Act, 1994 and 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.

Annual Report 2020- Page

 SHIRAZ KHAN BASAK & CO.
C H A R T E R E D A C C O U N TA N T S

In preparing the financial statements, management is responsible for assessing the Company’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless management either intends to liquidate the Company or to
cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company’s financial reporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor's
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement
when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of these (consolidated) financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.

• Obtain an understanding of internal control relevant to the audit 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 Company’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Company’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
auditor's report to the related disclosures in the financial statements or, if such disclosures are in
adequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to
the date of our auditor's report. However, future events or conditions may cause the Company to
cease to continue as a going concern.

Page Annual Report 2020-

 SHIRAZ KHAN BASAK & CO.
C H A R T E R E D A C C O U N TA N T S

• Evaluate the overall presentation, structure and content of the financial statements, including
the disclosures, and whether the financial statements represent the underlying transactions and events in
a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.

Report on Other Legal and Regulatory Requirements

In accordance with the Companies Act 1994, we also report the following:

a) We have obtained all the information and explanation which to the best of our knowledge and belief
were necessary for the purpose of our audit and made due verification thereof;

b) 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;

c) The statement of financial position and statement of comprehensive income dealt with by the report
are in agreement with the books of accounts and returns;

d) The expenditure incurred was for the purpose of the Company’s business.

Dhaka, 24 October 2021 Chaity Basak, FCA (Enrol # 1772)

Partner
Shiraz Khan Basak & Co.
Chartered Accountants
DVC: 2110241772AS326079

Annual Report 2020- Page

Premiaflex Plastics Limited
Statement of Financial Position

In Taka 30 June 2021 30 June 2020

Assets
Property, plant and 2,815,853,489 2,667,771,337
equipment Right-of-use 33,297,733 58,271,033
assets Investments 2,131,154 1,522,328
Non-current assets 2,851,282,376 2,727,564,698

Inventories 1,909,992,177 1,091,736,365

Trade receivables 1,160,868,742 1,201,662,525
Advances, deposits and prepayments 260,677,363 210,957,396
Current tax assets 714,756,560 525,341,462
Cash and cash equivalents 23,201,716 32,992,788
Current assets 4,069,496,559 3,062,690,536
Total assets 6,920,778,934 5,790,255,233

Equity
Share capital 300,000,000 300,000,000
Reserves 560,154,438 285,021,937
Retained earnings (95,669,168) 17,181,992
Total equity 764,485,270 602,203,929

Liabilities
Long term bank loan 474,780,257 654,008,216
Lease liabilities 9,683,588 34,685,697
Deferred tax liabilities 8,102,957 (18,237,753)
Employee benefit 22,759,659 20,665,085
Non-current liabilities 515,326,461 691,121,245

Bank overdraft 99,076,197 222,852,153

Loans and borrowings 2,453,776,728 1,616,014,423
Lease liabilities-current portion 25,002,109 20,495,363
Trade payables 200,584,117 114,362,861
Other Payables 60,330,495 59,571,707
Inter-company payables 2,802,197,558 2,463,633,553
Current liabilities 5,640,967,204 4,496,930,060
Total liabilities 6,156,293,665 5,188,051,305
Total equity and libilities 6,920,778,934 5,790,255,233

Dr. A.K.M Fareyzul Haque Ansarey Kamran Tanvirur Rahman Mohammad Mostafizur Rahman
Managing Director Director Company Secretary
As per our report of same date.

Chaity Basak, FCA (Enrol # 1772)

Partner
Dhaka, 24 October 2021 Shiraz Khan Basak & Co.
Chartered Accountants
DVC: 2110241772AS326079

Page Annual Report 2020-

Premiaflex Plastics Limited
Statement of Profit or Loss and other Comprehensive Income

For the Year ended For the Year ended

In Taka 30 June 2021 30 June 2020
Revenue 5,932,517,561 4,330,965,190
Cost of sales (4,933,912,517) (3,871,142,891)
Gross profit 998,605,044 459,822,299
Administrative, selling and distribution expenses (501,923,040) (426,615,805)
Other income 27,006,047 19,584,062
Operating profit 523,688,051 52,790,556
Financing cost (462,544,346) (513,158,999)
Profit before contribution to WPPF 61,143,705 (460,368,443)
Contribution to WPPF (3,057,185) -
Profit before tax 58,086,519 (460,368,443)

Income tax expenses (169,124,679) (17,258,701)

Current tax (155,101,239) (107,036,593)
Deferred tax income/(expenses) (14,023,440) 89,777,893
Profit after tax (111,038,160) (477,627,143)

Other comprehensive income

Change in fair value of financial assets 608,826 (617,450)
Related tax on FVOCI of financial assets (60,883) 61,745
547,943 (555,705)
Revaluation surplus of property, plant & equipment 287,617,945 -
Related tax on revaluation surplus (13,033,387) -
274,584,558 -
Remeasurement of defined benefit plan (2,590,000) -
Related tax on defined benefit plan 777,000 -
(1,813,000) -
Other comprehensive income, net of tax 273,319,501 (555,705)
Total comprehensive income 162,281,341 (478,182,848)

Basic earnings per share (370.13) (1,592.09)

Dr. A.K.M Fareyzul Haque Ansarey

Kamran Tanvirur Rahman Mohammad Mostafizur Rahman
Managing Director
Director Company Secretary
As per our report of same date.

Chaity Basak, FCA (Enrol # 1772)

Dhaka, 24 October 2021 Partner
Shiraz Khan Basak & Co.
Chartered Accountants
DVC: 2110241772AS326079

Annual Report 2020- Page

Premiaflex Plastics Limited
Statement of Changes in Equity

For the year ended 30 June 2021

Share FVOCI Revaluation Retained Total
In Taka capital reserve reserve earnings equity

Balance as at 1 July 2020 300,000,000 (1,842,661) 286,864,598 17,181,992 602,203,928

Total comprehensive income
Profit after tax - - - (111,038,160) (111,038,160)
Other comprehensive income - net of tax - 547,943 274,584,558 (1,813,000) 273,319,501
Total comprehensive income - 547,943 274,584,558 (112,851,160) 162,281,341
Contributions by and distributions to owners of the Company:

Total contribution by and distribution to owners of the company - - - - -

Balance as at 30 June 2021 300,000,000 (1,294,718) 561,449,156 (95,669,168) 764,485,269

For the year ended 30 June 2020

Share FVOCI Revaluation Retained Total
In Taka capital reserve reserve earnings equity

Balance as at 1 July 2019 300,000,000 (1,286,956) 286,864,598 494,809,135 1,080,386,777

Total comprehensive income
Profit after tax - - - (477,627,143) (477,627,143)
Other comprehensive income - net of tax - (555,705) - - (555,705)
Total comprehensive income - (555,705) - (477,627,143) (478,182,848)

Total contribution by and distribution to owners of the company - - - - -

Balance as at 30 June 2020 300,000,000 (1,842,661) 286,864,598 17,181,992 602,203,928

Page Annual Report 2020-

Premiaflex Plastics Limited
Statement of Cash Flows

For the year ended For the year ended

In Taka 30 June 2021 30 June 2020

Cash flows from operating activities

Cash received from customers 5,968,479,674 4,177,265,238
Cash receved from other income 27,006,047 19,584,062
5,995,485,722 4,196,849,301
Cash received/(paid) from/(for):
Purchase of inventory (5,390,818,714) (3,404,012,786)
Operating expenses (486,533,202) (393,128,957)
Other payables (2,298,398) 7,471,482
Advances, deposits and prepayments (47,328,622) (39,772,694)
(5,926,978,935) (3,829,442,955)
Cash generated from operations 68,506,786 367,406,345

Finance cost (461,507,745) (508,219,188)

Income tax paid (344,516,337) (186,790,648)
(806,024,082) (695,009,836)
Net cash from operating activities (737,517,295) (327,603,490)

Cash flows from investing activities

Acquisitions of property, plant and equipment (52,379,135) (78,627,318)
Payments for capital-work-in-progress (68,214,928) (65,559,190)
Net cash (used) in investing activities (120,594,063) (144,186,508)

Cash flows from financing activities

Inter-company debt received/(Paid) 338,564,006 633,476,633
Payment for lease obligation (25,002,109) (16,592,153)
Short term bank loan received/(paid) 811,449,849 (254,605,009)
Long term bank loan received/(paid) (152,915,503) (36,432,495)
Net cash (used)/from financing activities 972,096,243 325,846,976

Net increase/(decrease) in cash and cash equivalents 113,984,885 (145,943,022)

Opening cash and cash equivalents (189,859,366) (43,916,343)
Closing cash and cash equivalents (75,874,481) (189,859,366)

Closing Balance represents:

Cash and cash equivalents 23,201,716 32,992,788
Bank overdraft (99,076,197) (222,852,154)
(75,874,481) (189,859,366)

Annual Report 2020- Page

ACI Agrolink Limited
Directors' Report

ACI Agrolink Limited (The Company) is a subsidiary of Advanced Chemical Industries (ACI) having 90% equity participation in the
company. Since its inception in 2006 as ACI Agrochemical limited, the business has been working for the development of
the marginal farmers. Later, the business was renamed as ACI Agrolink Limited in September 2015 and aimed to establish forward
and backward linkage for farmers and agro value addition industry. In October 2019, ACI Agrolink stepped into export and
started exporting shrimp to worldwide.
ACI Agrolink Limited has established a state-of-the-art shrimp processing factory which has opened the new horizon to the
business. In FY 20-21, the business achieved 172% growth over last year. The business has exported 67 containers worth
of 1,226.6 MT shrimps. Due to poor landing of shrimp, there was a shortage in supply of raw materials which resulted
in an increased raw material purchase price. Despite having extremely arduous situations due to the COVID-19 pandemic last
year, the business endeavored relentlessly to accelerate its achievement.
ACI Agrolink Limited overhauled its strategies by shifting the purchase plan. It has consciously diversified the product line to Cat
Tiger, Brown, Chaka White Pud Cooked, Ocean Tiger and Scampi along with BT shrimp. The business reshaped its supply chain
process by adding new suppliers to strengthen the forward & backward linkage and integrated its manpower by engaging skilled
labor and increasing peeling workers to fulfill the additional sales requirement.
Since shrimp is one of the rapidly perishable products, its needs special attention to maintain the quality marinating proper time
and requisite temperature. One of the significant areas of the shrimp business is ensuring quality of the product. ACI
Agrolink Limited mounted strong monitoring policy (how) by setting up efficient quality control management team to ensure
quality products and stimulate the productivity of the workers. As an export business, the business demands a strong
connection with the people from local farmers and suppliers to overseas buyers. ACI Agrolink played a significant role to up
bring the potential communication with all of the people associated with the business.
The business has completed construction of the factory as per international food safety compliances. All the necessary licenses
from Bangladesh Government and other regulatory authorities have made ACI Agrolink Amian shrimp even more feasible to the
industry. Aqua Culture Steward Council (ASC) and Best Aqua Culture Practice (BAP) certification are under process to add with
HACCP and BRC Certificates. As the processing plant is in remote area, the business has provisioned proper training arrangement
for the scientists and graduates working in the shrimp industry.
The operating results of the Company for the year ended 30 June 2021 are as follows:

Key Financial Results Taka

Revenue 871,842,296
Gross Profit/(Loss) 63,829,386
Operating Profit/(Loss) 142,838
Profit/(Loss) before tax (62,174,596)
Profit/(Loss) after tax (68,209,565)

On behalf of the Board

Dr. A.K.M Fareyzul Haque Ansarey Kamran Tanvirur Rahman

Managing Director Director

Dhaka, 24 October 2021

Page 222 Annual Report 2020-2021

 SHIRAZ KHAN BASAK & CO.
C H A R T E R E D A C C O U N TA N T S

Independent Auditor's Report to the Shareholders of

ACI Agrolink Limited
Report on the Audit of the Financial Statements
We have audited the financial statements of ACI Agrolink Limited (“the Company”), which comprise
Statement of financial position as at 30th June 2021, and the statement of Profit or Loss and Other
Comprehensive Income, statement of changes in equity and statement of cash flows for the year
then ended, and notes to the financial statements, including a summary of significant accounting
policies.

In our opinion, the accompanying financial statements give a true and fair view of the financial position
of the Company as at 30th June 2021, and of its financial performance and its cash flows for the year
then ended in accordance with International Financial Reporting Standards (IFRSs), the Companies Act 1994
and other applicable laws and regulations.

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities
under those standards are further described in the Auditor's Responsibilities for the Audit of the
Financial Statements section of our report. We are independent of the Company in accordance with the
International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA
Code) together with ethical requirement that are relevant to our audit of the financial statements in
Bangladesh, and we have fulfilled our other ethical responsibilities in accordance with these
requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.

Material Uncertainty Related Going Concerns

We draw attention to the Financial Statements, which indicates that the Company incurred a net loss of
Tk. 68,209,565 during the year ended June 30, 2021 and also for the last few consecutive years. As of
the date, the Company’s current liabilities exceeded its total assets by Tk. 147,714,620 As stated above,
it indicates that a material uncertainty exists that may cast significant doubt in the Company’s
ability to continue as a going concern. Our opinion is not modified in respect.

Responsibilities of Management and Those Charged with Governance for the Financial
Statements

Management is responsible for the preparation of financial statements that give a true and fair
view in accordance with IFRSs, the Companies Act 1994 and 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.

Annual Report 2020- Page

 SHIRAZ KHAN BASAK & CO.
C H A R T E R E D A C C O U N TA N T S

In preparing the financial statements, management is responsible for assessing the Company’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless management either intends to liquidate the Company or to
cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company’s financial reporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor's
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement
when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of these (consolidated) financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.

• Obtain an understanding of internal control relevant to the audit 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 Company’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Company’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
auditor's report to the related disclosures in the financial statements or, if such disclosures are in
adequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to
the date of our auditor's report. However, future events or conditions may cause the Company to
cease to continue as a going concern.

Page Annual Report 2020-

 SHIRAZ KHAN BASAK & CO.
C H A R T E R E D A C C O U N TA N T S

• Evaluate the overall presentation, structure and content of the financial statements, including
the disclosures, and whether the financial statements represent the underlying transactions and events in
a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.

Report on Other Legal and Regulatory Requirements

In accordance with the Companies Act 1994, we also report the following:

a) We have obtained all the information and explanation which to the best of our knowledge and belief
were necessary for the purpose of our audit and made due verification thereof;

b) 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;

c) The statement of financial position and statement of comprehensive income dealt with by the report
are in agreement with the books of accounts and returns;

d) The expenditure incurred was for the purpose of the Company’s business.

Chaity Basak, FCA (Enrol # 1772)

Dhaka, 24 October 2021 Partner
Shiraz Khan Basak & Co.
Chartered Accountants
DVC: 2110241772AS999924

Annual Report 2020- Page

ACI Agrolink Limited
Statement of Financial Position

In Taka 30 June 2021 30 June 2020

Assets
Property, plant and 243,705,426 244,769,884
equipment Deferred tax 7,878,234 4,103,761
assets
Non-current assets 251,583,660 248,873,644

Inventories 101,344,118 98,539,345

Trade receivable 284,440,720 163,228,111
Other receivable 49,464,029 20,819,267
Advances, deposits and prepayments 6,829,070 5,042,225
Cash and cash equivalents 390,360 25,936,884
Current assets 442,468,297 313,565,831
Total assets 694,051,957 562,439,476

Equity
Share capital 32,020,000 32,020,000
Reserves 8,976,555 -
Retained earnings (188,711,175) (120,501,610)
Total equity (147,714,620) (88,481,610)

Liabilities
Bank overdraft 200,400,000 -
Inter-company payables 582,492,859 633,045,670
Trade payables 38,656,110 11,431,057
Other Payables 18,193,957 6,437,152
Current tax liability 2,023,651 7,207
Current liabilities 841,766,577 650,921,086
Total liabilities 841,766,577 650,921,086
Total equity and liabilities 694,051,957 562,439,476

Dr. A.K.M Fareyzul Haque Ansarey

Kamran Tanvirur Rahman Mohammad Mostafizur Rahman
Managing Director
Director Company Secretary
As per our report of same date.

Chaity Basak, FCA (Enrol # 1772)

Dhaka, 24 October 2021 Partner
Shiraz Khan Basak & Co.
Chartered Accountants
DVC: 2110241772AS999924

Page Annual Report 2020-

ACI Agrolink Limited
Statement of Profit or Loss and other Comprehensive Income

For the year ended For the year ended

In Taka 30 June 2021 30 June 2020

Revenue 871,842,296 320,213,412

Cost of sales (808,012,910) (292,368,649)
Gross profit 63,829,386 27,844,762
Administrative, selling and distribution expenses (64,560,778) (34,909,387)
Other income 874,230 68,020
Operating profit 142,838 (6,996,605)
Financing cost (62,317,434) (57,351,866)
Profit before income tax (62,174,596) (64,348,471)

Income tax expenses

Current tax expenses (9,954,442) (1,100,704)
Deferred tax income/(expenses) 3,919,473 3,385,021
(6,034,969) 2,284,318
Profit after tax (68,209,565) (62,064,154)

Other comprehensive income

Revaluation surplus of property, plant & equipment 9,121,555 -
Related tax on revaluation surplus (145,000) -
Other comprehensive income, net of tax 8,976,555 -
Total comprehensive income (59,233,010) (62,064,154)

Dr. A.K.M Fareyzul Haque Ansarey

Kamran Tanvirur Rahman Mohammad Mostafizur Rahman
Managing Director
Director Company Secretary
As per our report of same date.

Chaity Basak, FCA (Enrol # 1772)

Dhaka, 24 October 2021 Partner
Shiraz Khan Basak & Co.
Chartered Accountants
DVC: 2110241772AS999924

Annual Report 2020- Page

ACI Agrolink Limited
Statement of Changes in Equity

For the year ended 30 June 2021

Share Revaluation Retained Total
In Taka capital reserve earnings equity

Balance as at 01 July 2020 32,020,000 - (120,501,610) (88,481,610)

Net profit after tax - (68,209,565) (68,209,565)
Other comprehensive income - net of tax - 8,976,555 - 8,976,555
Total comprehensive income - 8,976,555 (68,209,565) (59,233,010)
Balance as at 30 June 2021 32,020,000 8,976,555 (188,711,175) (147,714,620)

For the year ended 30 June 2020

Share Available Retained Total
In Taka capital for sale earnings equity
Balance as at 01 July 2019 32,020,000 - (58,437,457) (26,417,457)
Net profit after tax - (62,064,154) (62,064,154)
Total other comprehensive income - - - -
Total comprehensive income - - (62,064,154) (62,064,154)
Balance as at 30 June 2020 32,020,000 - (120,501,610) (88,481,610)

Page Annual Report 2020-

ACI Agrolink Limited
Statement of Cash Flows

For the year ended For the year ended

In Taka 30 June 2021 30 June 2020

Cash flows from operating activities

Cash receipts from customers 721,984,924 269,446,029
Cash receipts from other income 874,230 68,020
722,859,154 269,514,049
Cash received/(paid) from/(for):
Purchase of inventory (769,790,740) (363,889,718)
Operating expenses (63,897,931) (34,206,795)
Receipts from/(payments to) other payables 11,756,805 2,392,827
Advances, deposits and prepayments (1,786,845) 5,578,250
(823,718,711) (390,125,437)
Cash generated from operations (100,859,557) (120,611,388)

Financing cost (62,317,434) (57,351,866)

Income tax paid (7,937,998) (1,166,496)
(70,255,432) (58,518,362)
Net cash from/(used in) operating activities (171,114,989) (179,129,750)

Cash flows from investing activities

Acquisition of property, plant and equipment (2,366,587) (1,512,627)
Payments for capital-work-in-progress (1,912,137) (47,524,511)
Net cash used in investing activities (4,278,724) (49,037,138)

Cash flows from financing activities

Inter-company received/(Paid) (50,552,811) 237,897,958
Net cash flows provided by financing activities (50,552,811) 237,897,958

Net increase/(decrease) in cash and cash equivalents (225,946,524) 9,731,070

Opening cash and cash equivalents 25,936,884 16,205,814
Closing cash and cash equivalents (200,009,640) 25,936,884

Closing Balance represents:

Cash and cash equivalents 390,360 25,936,884
Bank overdraft (200,400,000) -
(200,009,640) 25,936,884

Annual Report 2020- Page

ACI Edible Oils Limited
Directors' Report

ACI Edible Oils Limited commenced its proceedings in the year 2010 as a subsidiary of Advanced
Chemical Industries (ACI) and is registered with the Registrar of Joint Stock Companies, Dhaka,
having 85% ownership in ACI. The company’s constructive vision of working as the centrality of
consigning the comprehensive range of edible oils has resulted in the launching of five types of edible
oil, both from own manufacturing facilities and import from the finest sources of the world. This dynamic
vision has enabled the company to have a yearly growth of 60.56% at the end of the FY 2020-2021.

ACI Edible Oils Limited has been complementing its full-fledged delivery of the Soybean Oil and Rice
Bran Oil through the smooth functioning of two factories which are situated at Narayanganj and
Naogaon respectively. The factories are operated maintaining a strict quality control and persistent
supervision throughout the entire production process. Aligning with the viewpoint of the increasing
demand of practicing a healthy and diversified lifestyle, the company has incorporated two imported
edible oils in its product line. Le Blanc Premium Sunflower Oil and Well’s Olive Oil are two of the
most trusted and extensively used oils by the consumers. ACI Edible Oils Limited managed to fulfil the
gaps caused by the
COVID-19 pandemic through its visionary and eloquent decision making process and strategic
implementation.

The operating results of the company for the year ended on 30 June 2021 are as follows:

Key Financial Results Taka

Revenue 842,458,219
Gross Profit/(Loss) 59,404,186
Operating Profit/(Loss) 27,339,039
Profit/(Loss) Before Tax 29,968,426
Profit/(Loss) After Tax 21,666,126

On behalf of the Board

Dr. Arif Dowla Kamran Tanvirur Rahman

Director Director

Dhaka, 24 October 2021

Page 230 Annual Report 2020-2021

Annual Report 2020- Page

ASHRAFUL HAQUE NABI & CO.
Chartered Accountants

Independent Auditors' Report to the Shareholders of

ACI Edible Oils Limited
Report on the Audit of the Financial Statements
Opinion

We have audited the accompanying financial statements of ACI Edible Oils Ltd. (“The Company”) which
comprise the statement of financial position as at 30 June 2021, and the statement of profit or loss and
other comprehensive income, statement of changes in equity, statement of cash flows for the year then
ended, and notes to the financial statements, including a summary of significant accounting policies and
other explanatory information.

In our opinion, the accompanying financial statement presents fairly, in all material respects, the
financial position of “ACI Edible Oils Ltd.” as at 30 June 2021, and of its financial performance and its
cash flows for the year then ended in accordance with the International Financial Reporting Standards
(IFRSs).

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities
under those standards are further described in the Auditors’ Responsibilities for the Audit of the
Financial Statements section of our report. We are independent of the Organization in accordance with
the ethical requirement that are relevant to our audit of the financial statements in Bangladesh, and we
have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Responsibilities of Management and Those Charged with Governance for the Financial
Statements and Internal Controls

Management is responsible for the preparation of financial statements that give a true and fair
view in accordance with IFRSs, 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.

In preparing the financial statements, management is responsible for assessing the company’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless management either intends to liquidate the Company or to
cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company’s financial reporting process.

Annual Report 2020- Page

 Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with ISAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.

• Obtain an understanding of internal control relevant to the audit 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 Company's internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.

• Obtain sufficient appropriate audit evidence regarding the financial information of the entities
or business activities within the organization to express an opinion on the financial statements. We
are responsible for the direction, supervision and performance of the audit. We remain solely
responsible for our audit opinion.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting and
based on the audit evidence obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the Company’s ability to continue as a going
concern. If we conclude that a uncertainty exists, we are required to draw attention in our auditor’s
report to the related disclosures in the financial statements or, if such disclosures are inadequate,
to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date
of our auditor’s report. However, future events or conditions may cause the Company to cease to
continue as a going concern.

Page Annual Report 2020-

• Evaluate the overall presentation, structure and content of the financial statement, including
the disclosure, and whether the financial statements represent the underlying transactions and events
in a manner that gives a true and fair view.

• We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.

Report on other Legal and Regulatory Requirements

In accordance with the Companies Act 1994, we also report the following:

a) we have obtained all the information and explanations which to the best of our knowledge and belief
were necessary for the purpose of our audit and made due verification thereof;

b) in our opinion, proper books of account as required by law have been kept by the organization so far as
it appeared from our examination of those books; and

c) the statement of financial position and the statement of profit or loss and other comprehensive
income dealt with by the report are in agreement with the books of accounts.

Dhaka, 24 October 2021 Ashraful Haque Nabi & Co.

Chartered Accountants.
Firm Registration No.
Signed by: Minhaz Shahid, FCA
Partner/Enrolment No. 1446
DVC # 2110241446AS644130

Annual Report 2020- Page

ACI Edible Oils Limited
Statement of Financial Position

In Taka 30 June 2021 30 June 2020

Assets
Property, plant and 41,149,622 26,751,934
equipment Capital work-in- 43,306 2,176,336
progress Deferred tax assets - 252,736
Non-current assets 41,192,928 29,181,006

Inventories 60,045,907 42,316,825

Trade receivables 44,582,286 11,115,430
Advances, deposits and prepayments 127,917,333 5,892,993
Inter-company receivables 438,059 77,447,577
Cash and cash equivalents 14,642,337 2,457,671
Current assets 247,625,922 139,230,496
Total assets 288,818,850 168,411,502

Equity
Share capital 10,000,000 10,000,000
Revaluation reserve 5,684,419 -
Retained earnings 93,634,413 71,968,287
Total Equity 109,318,832 81,968,287

Liabilities
Deferred tax liabilities 1,649,719 -
Employee benefits 25,000 -
Non-current liabilities 1,674,719 -

Bank Overdraft - 1,536,387

Loan & borrowings - 31,354,116
Trade payables 77,765,808 24,930,737
Other payables 24,085,446 22,608,003
Inter-company payables 68,211,050 1,425,159
Current tax liability 7,762,994 4,588,814
Current liabilities 177,825,299 86,443,215
Total equity and liabilities 288,818,850 168,411,502

Dr. Arif Dowla Kamran Tanvirur Rahman Mohammad Mostafizur Rahman

Director Director Company Secretary

As per our report of same date.

Ashraful Haque Nabi & Co.

Chartered Accountants.
Firm Registration No.
Signed by: Minhaz Shahid, FCA
Partner/Enrolment No. 1446
Dhaka, 24 October 2021 DVC # 2110241446AS644130

Page Annual Report 2020-

ACI Edible Oils Limited
Statement of Profit or Loss and other Comprehensive Income

From 01 July 2020 From 01 July 2019

In Taka to 30 June 2021 to 30 June 2020

Revenue 842,458,219 524,652,544

Cost of goods sold (783,054,033) (471,446,219)
Gross profit 59,404,186 53,206,326

Administrative, Selling and Distribution expenses (32,024,139) (36,094,983)

Other Income (41,009) 107,052
Operating profit 27,339,039 17,218,394
Finance Income/(expenses) 4,206,673 2,193,917
Profit before contribution to WPPF 31,545,712 19,412,311

Contribution to WPPF (1,577,286) (970,616)

Profit before tax 29,968,426 18,441,696
Income tax expenses:
Current tax expenses (6,534,970) (4,654,867)
Deferred tax (expense)/Income (1,767,330) 1,399,458
(8,302,300) (3,255,409)
Profit after tax 21,666,126 15,186,287
Other comprehensive income
Revaluation Surplus 5,819,544 -
Deferred tax on revaluation surplus (135,125) -
Total other comprehensive income, net of tax 5,684,419 -

Total comprehensive income 27,350,545 15,186,287

Dr. Arif Dowla Kamran Tanvirur Rahman Mohammad Mostafizur Rahman

Director Director Company Secretary

As per our report of same date.

Ashraful Haque Nabi & Co.

Chartered Accountants.
Firm Registration No.
Signed by: Minhaz Shahid, FCA
Partner/Enrolment No. 1446
Dhaka, 24 October 2021 DVC # 2110241446AS644130

Annual Report 2020- Page

ACI Edible Oils Limited
Statement of Changes in Equity

for the year ended 30 June 2021

Share Retained Revaluation Total

In Taka capital earnings surplus equity

Balance at 01 July 2020 10,000,000 71,968,287 - 81,968,287

Total comprehensive income
Profit after tax - 21,666,126 - 21,666,126
Total other comprehensive income - 5,684,419 5,684,419
Total comprehensive income for the year - 21,666,126 5,684,419 27,350,545
Balance at 30 June 2021 10,000,000 93,634,413 5,684,419 109,318,832

Share Retained Revaluation Total

In Taka capital earnings surplus equity

Balance at 01 July 2019 10,000,000 56,782,000 - 66,782,000

Total comprehensive income
Profit after tax - 15,186,287 - 15,186,287
Total other comprehensive income - - - -
Total comprehensive income for the year - 15,186,287 - 15,186,287
Balance at 30 June 2020 10,000,000 71,968,287 - 81,968,287

Page Annual Report 2020-

ACI Edible Oils Limited
Statement of Cash Flows

From 01 July 2020 From 01 July 2019

In Taka to 30 June 2021 to 30 June 2020

A. Cash flows from operating activities

Cash received from customers 808,950,354 561,924,428
Cash received/(paid) from/(for):
Purchase of Inventories (745,057,002) (468,317,055)
Operating expenses (32,098,981) (52,151,798)
Advance, deposits and prepayments (122,024,340) 6,955,497
(899,180,322) (513,513,356)
Cash generated from/(used in) operations (90,229,968) 48,411,072
Finance income 4,206,673 2,193,917
Income tax paid (3,360,789) (3,725,251)
845,884 (1,531,334)
Net Cash generated from/(used in) operations (89,384,084) 46,879,738

B. Cash flows from investing activities

Payment for capital work in progress 2,133,030 (2,133,030)
Acquisition of Property, Plant & equipement (11,469,186) (548,679)
Net Cash used in investing activities (9,336,156) (2,681,709)

C. Cash flows from financing activities

Inter-company debts(paid) received 143,795,409 (84,260,628)
Short term loan received/(paid) (31,354,116) 26,206,560
Net cash (used)/from financing activities 112,441,293 (58,054,068)

D. Net increase in cash and cash equivalents(A+B+C) 13,721,053 (13,856,039)

Opening cash and cash equivalents 921,284 14,777,323
Cash and cash equivalents at reporting date 14,642,337 921,284

Closing balance represents :

Cash and cash equivalents 14,642,337 2,457,671
Bank overdrafts - (1,536,387)
14,642,337 921,284

Annual Report 2020- Page

ACI HealthCare Limited
Directors' Report

ACI HealthCare Limited (The Company) was incorporated with the Register of Joint Stock Companies, Dhaka in 2013
as a public limited Company by shares and is governed by the Companies Act 1994. The parent company, Advanced
Chemical Industries (ACI) Limited has 92.94% ownership in the Company.
ACI HealthCare Limited, was initiated with an objective to manufacture and marketing pharmaceutical products for
regulated markets, especially for the USA market. The Company may also manufacture for local market. With this
aim, a state-of-the-art pharmaceutical factory of the company has been built in full compliance with US FDA, EMEA,
WHO cGMP and other relevant agencies of that nature at its own land at mouza-Tripurdi, Sonargaon, Narayangonj.
The company has already got approval of nine Abbreviated New Drug Application (ANDA) by US FDA and
commercial supply of some of these products has been initiated by toll manufacturing arrangement with
contract manufacturing companies in India and in the USA.
The factory has now been operational after successful inspection and approval by the Directorate General of Drug
Administration (DGDA), Bangladesh for manufacturing operation. During the year, R&D team continued its effort to
develop complex generic products beside site transfer of already approved products at the Sonargaon factory. The
company completed several submissions of original ANDAs and site transfer applications to US FDA. Some of these
submissions are approved pending inspection while others are in ongoing review stage. The factory inspection and
approval by US-FDA is being delayed due to COVID-19 outbreak.
Considering delay of US FDA approval, company has initiated manufacturing of some products for local market
through toll manufacturing arrangement. Under this manufacturing agreement, in FY 2020-21 company has
manufactured and supplied 368 million units of Tablets & Capsules as well as played a significant role in
country wide COVID management by manufacturing and supplying of 4 million units of hand sanitizer and liquid
anti-septic product.
Company believe that with the improved COVID pandemic situation worldwide inspection by US FDA will be resumed
and the factory will have successful inspection & approval to initiate commercial manufacturing and supply of
products to the USA market.
The operating results of the Company for the year ended 30 June 2021 are as follows:

Key Financial Results (Consolidated): Taka

Revenue 1,609,962,276
Gross Profit/(Loss) 112,371,598
Operating Profit/(Loss) (993,478,953)
Profit/(Loss) before tax (1,868,607,587)
Profit/(Loss) after tax (1,722,614,980)

On behalf of the Board

M Mohibuz Zaman Pradip Kar Chowdhury

Managing Director Director

Dhaka, 25 October 2021

Page 238 Annual Report 2020-2021

 dhaka@kpmg.com

Independent Auditor's Report to the Shareholders of

ACI HealthCare Limited
Report on the Audit of the Consolidated Financial Statements

Opinion

We have audited the consolidated financial statements of ACI HealthCare Limited and its subsidiary
(together referred to as the ""Group"") as well as the separate financial statements of ACI
HealthCare Limited (“the Company”), which comprise the consolidated and separate statement of
financial position as at 30 June 2021, and the consolidated and separate statement of profit or loss and
other comprehensive income, consolidated and separate statement of changes in equity and
consolidated and separate statement of cash flows for the year then ended, and notes to the
consolidated and separate financial statements, including a summary of significant accounting policies
and other explanatory information.

In our opinion, the accompanying consolidated financial statements give a true and fair view of the
financial position of the Group as at 30 June 2021, and of its financial performance and its cash flows for
the year then ended in accordance with International Financial Reporting Standards (IFRSs).

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities
under those standards are further described in the Auditor's Responsibilities for the Audit of the
Financial Statements section of our report. We are independent of the Group in accordance with the
ethical requirement that are relevant to our audit of the financial statements in Bangladesh, and we
have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Emphasis of Matter

We draw attention to Note 35(R) to the financial statements where management explains the Group will
continue in operational existence for the foreseeable future in spite of having net current liabilities and
accumulated losses as at the reporting date by virtue of support from the parent company,
Advanced Chemical Industries Limited. Our opinion is not modified in respect of this matter.

78 (13th

chittagong@kpmg.com

Annual Report 2020- Page

Page Annual Report 2020-
Responsibilities of Management and Those Charged with Governance for the
Consolidated Financial Statements
Management is responsible for the preparation of consolidated financial statements that give a true and fair
view in accordance with International Financial Reporting Standards, and for such internal control
as management determines is necessary to enable the preparation of consolidated financial statements
that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless management either intends to liquidate the Group or to
cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with ISAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgement and maintain
professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the consolidated financial statements, whether
due to fraud or error, design and perform audit procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
• Obtain an understanding of internal control relevant to the audit 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 Group's internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Group’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures
are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up
to the date of our auditor’s report. However, future events or conditions may cause the Group to
cease to continue as a going concern.

Annual Report 2020- Page

• Evaluate the overall presentation, structure and content of the consolidated financial
statements, including the disclosures, and whether the consolidated financial statements represent
the underlying transactions and events in a manner that achieves fair presentation.

• Obtain sufficient appropriate audit evidence regarding the financial information of the entities
or business activities within the Group to express an opinion on the consolidated financial statements.
We are responsible for the direction, supervision and performance of the group audit. We remain
solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.

Report on other Legal and Regulatory Requirements

In accordance with the Companies Act 1994, we also report the following:

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 Group so far as
it appeared from our examination of these books; and

c) the consolidated and separate statement of financial position and statement of profit or loss and
other comprehensive income dealt with by the report are in agreement with the books of
accounts and returns.

Ali Ashfaq, Partner

Enrolment number: 509
Rahman Rahman Huq
Chartered Accountants
Dhaka, 25 October 2021 KPMG in Bangladesh
Firm Registration Number: N/A
DVC: 2111070509AS142097

Annual Report 2020- Page

241
ACI HealthCare Limited
Consolidated and Separate Statement of Financial Position

Consolidated Separate
In BDT 30 June 2021 30 June 2020 30 June 2021 30 June 2020
Assets
Property, plant and equipment 5,289,430,894 5,559,770,136 5,279,306,134 5,547,550,223
Intangible assets 56,303,328 70,291,956 56,303,328 70,291,956
Capital work-in-progress 1,258,327,770 1,063,401,970 1,258,327,770 1,063,401,970
Investment in subsidiary - - 8,495 8,495
Deferred tax assets 453,027,048 269,816,617 216,990,622 123,251,705
Non-current assets 7,057,089,040 6,963,280,679 6,810,936,349 6,804,504,349
Inventory 588,582,150 554,592,536 - -
Accounts receivable 456,494,215 485,122,433 - -
Other receivable 29,291,254 50,344,550 28,049,641 40,818,827
Inter company receivable - - 43,566,881 50,629,094
Advances, deposits and prepayments 105,277,659 446,822,375 79,692,010 75,629,747
Investment in FDR 1,158,369,377 1,070,000,000 1,158,369,377 1,070,000,000
Cash and cash equivalents 28,677,265 69,944,109 9,321,808 8,366,896
Current assets 2,366,691,920 2,676,826,003 1,318,999,717 1,245,444,564
Total assets 9,423,780,960 9,640,106,681 8,129,936,066 8,049,948,913
Equity
Share capital 500,000,000 500,000,000 500,000,000 500,000,000
Retained earnings (4,081,124,322) (2,355,369,342) (3,380,100,159) (1,938,800,368)
Currency translation reserve (1,502,736) (1,502,736) - -
Total equity (3,582,627,058) (1,856,872,078) (2,880,100,159) (1,438,800,368)
Liabilities
Long term bank loan (non-current portion) 3,697,464,043 3,470,672,725 3,697,464,043 3,470,672,725
Employment benefits 17,800,003 12,517,189 17,800,003 12,517,189
Non-current liabilities 3,715,264,046 3,483,189,914 3,715,264,046 3,483,189,914
Long term bank loan (current portion) 994,033,258 994,033,258 994,033,258 994,033,258
Short term loan 1,633,299,744 1,110,486,982 1,129,300 37,285,984
Accounts payable 244,232,394 816,379,769 - -
Other payables and accruals 259,589,655 350,759,223 139,612,205 232,102,017
Inter company payables 6,131,061,240 4,737,689,301 6,131,069,735 4,737,697,796
Current tax liability 28,927,681 4,440,312 28,927,681 4,440,312
Current liabilities 9,291,143,972 8,013,788,845 7,294,772,179 6,005,559,367
Total liabilities 13,006,408,018 11,496,978,759 11,010,036,225 9,488,749,281
Total equity and liabilities 9,423,780,960 9,640,106,681 8,129,936,066 8,049,948,913

M Mohibuz Zaman Pradip Kar Chowdhury Mohammad Mostafizur Rahman

Managing Director Director Company Secretary
As per our report of same date.

Ali Ashfaq, Partner

Enrolment number: 509
Rahman Rahman Huq
Chartered Accountants
Dhaka, 25 October 2021 KPMG in Bangladesh
Firm Registration Number: N/A
DVC: 2111070509AS142097

Page Annual Report 2020-

ACI HealthCare Limited
Consolidated and Separate Statement of Profit or Loss and other C

For the year ended

Consolidated Separate
In BDT 30 June 2021 30 June 2020 30 June 2021 30 June 2020

Revenue 1,609,962,276 2,059,918,065 - -

Cost of sales (1,497,590,678) (2,221,733,843) - -
Gross profit 112,371,598 (161,815,778) - -
Other income/(expenses) 140,027,540 19,825,356 130,138,370 19,176,483
Selling and distribution expenses (90,606,297) (129,336,502) - -
General and administrative expenses (1,155,271,794) (1,014,078,980) (855,044,721) (812,459,536)
Operating loss (993,478,953) (1,285,405,904) (724,906,351) (793,283,053)
Finance income 66,748,966 35,367,886 71,155,003 39,592,321
Finance costs (941,877,600) (820,447,923) (836,845,347) (740,440,856)
Net finance costs (875,128,634) (785,080,037) (765,690,344) (700,848,535)
Loss before tax (1,868,607,587) (2,070,485,941) (1,490,596,695) (1,494,131,588)
Income tax (expense)/income 145,992,607 227,485,542 52,436,904 81,779,577
Loss after tax (1,722,614,980) (1,843,000,400) (1,438,159,791) (1,412,352,012)
Other comprehensive income/(loss) -
Items that are or may be reclassified
subsequently to profit or loss
Foreign operation-foreign currency translation differences - (589,887) - -
- (589,887) - -
Items that will not be reclassified to profit or loss
Actuarial gain/(loss) on staff gratuity valuation (3,140,000) - (3,140,000) -
(3,140,000) - (3,140,000) -
Other comprehensive income for the period (3,140,000) (589,887) (3,140,000) -
Total comprehensive income/(loss) (1,725,754,980) (1,843,590,287) (1,441,299,791) (1,412,352,012)

M Mohibuz Zaman Pradip Kar Chowdhury Mohammad Mostafizur Rahman

Managing Director Director Company Secretary
As per our report of same date.

Ali Ashfaq, Partner

Enrolment number: 509
Rahman Rahman Huq
Chartered Accountants
Dhaka, 25 October 2021 KPMG in Bangladesh
Firm Registration Number: N/A
DVC: 2111070509AS142097

Annual Report 2020- Page

243
 ACI HealthCare Limited

Consolidated Statement of Changes in Equity

For the year ended 30 June 2021

Attributable to owners of the Company

Share Translation Retained Total
In BDT capital reserve earnings equity

Balance at 1 July 2019 500,000,000 (912,849) (512,368,942) (13,281,791)

Profit/(loss) for the year - - (1,843,000,400) (1,843,000,400)
Other comprehensive income/(loss) - (589,887) - (589,887)
Total comprehensive income/(loss) - (589,887) (1,843,000,400) (1,843,590,287)
Balance at 30 June 2020 500,000,000 (1,502,736) (2,355,369,342) (1,856,872,078)

Share Translation Retained Total

In BDT capital reserve earnings equity

Balance at 1 July 2020 500,000,000 (1,502,736) (2,355,369,342) (1,856,872,078)

Profit/(loss) for the year - - (1,722,614,980) (1,722,614,980)
Other comprehensive income/(loss) - - (3,140,000) (3,140,000)
Total comprehensive income/(loss) - - (1,725,754,980) (1,725,754,980)
Balance at 30 June 2021 500,000,000 (1,502,736) (4,081,124,322) (3,582,627,058)

Separate Statement of Changes in Equity

For the year ended 30 June 2021
Attributable to owners of the Company
Share Retained Total
In BDT capital earnings equity

Balance at 1 July 2019 500,000,000 (526,448,356) (26,448,356)

Profit/(loss) for the year - (1,412,352,012) (1,412,352,012)
Other comprehensive income - - -
Total comprehensive income/(loss) - (1,412,352,012) (1,412,352,012)
Balance at 30 June 2020 500,000,000 (1,938,800,368) (1,438,800,368)

Share Retained Total

In BDT capital earnings equity

Balance at 1 July 2020 500,000,000 (1,938,800,368) (1,438,800,368)

Profit/(loss) for the year - (1,438,159,791) (1,438,159,791)
Other comprehensive income - (3,140,000) (3,140,000)
Total comprehensive income/(loss) - (1,441,299,791) (1,441,299,791)
Balance at 30 June 2021 500,000,000 (3,380,100,159) (2,880,100,159)

Page Annual Report 2020-

ACI HealthCare Limited
Consolidated and Separate Statement of Cash Flows

For the year ended

Consolidated Separate
In BDT 30 June 2021 30 June 2020 30 June 2021 30 June 2020

Cash flows from operating activities

Receipts from customers 1,648,479,664 2,933,301,806 - -
Receipts/(payments) from other sources 121,923,252 (35,576,826) 121,923,252 (35,576,826)
Payment to employees, suppliers
and service providers (3,022,616,906) (3,802,918,559) (778,360,501) (547,842,825)
Income tax paid (12,730,456) (11,164,313) (16,814,644) (5,235,376)
Net cash (used in)/generated from
operating activities (1,264,944,446) (916,357,892) (673,251,892) (588,655,027)

Cash flows from investing activities

Acquisition of property, plant and equipment (63,910,907) (39,162,197) (63,797,089) (27,189,984)
Cash paid for capital work-in-progress (194,925,800) (236,914,926) (194,925,800) (236,914,926)
Investment in FDR (88,369,377) (1,070,000,000) (88,369,377) (1,070,000,000)
Net cash used in investing activities (347,206,085) (1,346,077,124) (347,092,266) (1,334,104,910)

Cash flows from financing activities

Proceeds/(repayments) from
inter company borrowings 1,383,987,109 1,249,598,853 1,393,371,939 1,254,203,715
Proceeds/(repayments) from short term bank loan 522,812,763 293,943,545 (36,156,684) 14,511,072
Proceeds/(repayments) from long term bank loan (335,916,185) 655,532,330 (335,916,185) 655,532,330
Net cash generated from financing activities 1,570,883,687 2,199,074,728 1,021,299,070 1,924,247,117
Net increase in cash and cash equivalents (41,266,844) (63,360,288) 954,912 1,487,180
Adjustment for foreign exchange translation - 170,105 - -
Opening cash and cash equivalents 69,944,109 133,134,292 8,366,896 6,879,716
Cash and cash equivalents at reporting date 28,677,265 69,944,109 9,321,808 8,366,896

Annual Report 2020- Page

245
ACI Chemicals Limited
Directors' Report

ACI Chemicals Limited was incorporated in 2013 under the Companies Act, 1994 as a Private
Limited Company and started its operation from June 2014. Advanced Chemical Industries (ACI)
Limited holds 75% ownership of the Company.

The vision of the company is to become a leading sourcing agent and to provide value added
supply chain solution to its customers in Bangladesh. The major focusing areas are textile, leather,
paint, food, plastic, pharmaceuticals and personal care industries. The company has agreement with
many reputed global companies to work as their exclusive/non-exclusive agent and distributor in
Bangladesh.

The operating results of the Company for the year ended on 30 June 2021 are as follow:

Key Financial Results Taka

Revenue 10,791,580

Gross Profit/(Loss) (9,875,298)

Operating Profit/(Loss) (14,079,100)

Profit/(Loss) Before Tax (31,915,359)

Profit/(Loss) After Tax (33,080,441)

On behalf of the Board

M. Anis Ud Dowla Kamran Tanvirur Rahman

Managing Director Director

Dhaka, 24 October 2021

Page 246 Annual Report 2020-2021

Annual Report 2020- Page

247
ASHRAFUL HAQUE NABI & CO.
Chartered Accountants

Independent Auditors' Report to the Shareholders of

ACI Chemicals Limited
Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying financial statements of ACI Chemicals Ltd. (“The Company”) which
comprise the statement of financial position as at 30 June 2021, and the statement of profit or loss and
other comprehensive income, statement of changes in equity, statement of cash flows for the year then
ended, and notes to the financial statements, including a summary of significant accounting policies and
other explanatory information.

In our opinion, the accompanying financial statement presents fairly, in all material respects, the
financial position of “ACI Chemicals Ltd.” as at 30 June 2021, and of its financial performance and its
cash flows for the year then ended in accordance with the International Financial Reporting Standards
(IFRSs).

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities
under those standards are further described in the Auditors’ Responsibilities for the Audit of the
Financial Statements section of our report. We are independent of the Organization in accordance with
the ethical requirement that are relevant to our audit of the financial statements in Bangladesh, and we
have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Responsibilities of Management and Those Charged with Governance for the Financial
Statements and Internal Controls

Management is responsible for the preparation of financial statements that give a true and fair
view in accordance with IFRSs, 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.

In preparing the financial statements, management is responsible for assessing the company’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless management either intends to liquidate the Company or to
cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company’s financial reporting process.

Annual Report 2020- Page

 Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with ISAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.

• Obtain an understanding of internal control relevant to the audit 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 Company's internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by management.

• Obtain sufficient appropriate audit evidence regarding the financial information of the entities
or business activities within the organization to express an opinion on the financial statements. We
are responsible for the direction, supervision and performance of the audit. We remain solely
responsible for our audit opinion.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting and
based on the audit evidence obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the Company’s ability to continue as a going
concern. If we conclude that a uncertainty exists, we are required to draw attention in our auditor’s
report to the related disclosures in the financial statements or, if such disclosures are inadequate,
to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date
of our auditor’s report. However, future events or conditions may cause the Company to cease to
continue as a going concern.

Page Annual Report 2020-

• Evaluate the overall presentation, structure and content of the financial statement, including
the disclosure, and whether the financial statements represent the underlying transactions and events
in a manner that gives a true and fair view.

• We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.

Report on other Legal and Regulatory Requirements

In accordance with the Companies Act 1994, we also report the following:

a) we have obtained all the information and explanations which to the best of our knowledge and
belief were necessary for the purpose of our audit and made due verification thereof;

b) in our opinion, proper books of account as required by law have been kept by the organization so far as
it appeared from our examination of those books; and

c) the statement of financial position and the statement of profit or loss and other comprehensive income
dealt with by the report are in agreement with the books of accounts.

Dhaka, 24 October 2021 Ashraful Haque Nabi & Co.

Chartered Accountants.
Firm Registration No.
Signed by: Minhaz Shahid, FCA
Partner/Enrolment No. 1446
DVC# 2110241446AS292659

Annual Report 2020- Page

ACI Chemicals Limited
Statement of Financial Position

In Taka 30 June 2021 30 June 2020

Assets
Property, plant and equipment 413,343 777,335
Non-current assets 413,343 777,335

Inventories 12,313,160 15,227,829

Trade receivables 4,572,289 12,875,287
Advances, deposits and prepayments 826,536 896,833
Cash and cash equivalents 1,077,761 375,910
Current assets 18,789,745 29,375,858
Total assets 19,203,088 30,153,194

Equity
Share capital 20,000,100 20,000,100
Retained earnings (217,897,163) (184,816,722)
Total equity (197,897,063) (164,816,622)

Liabilites
Employee benefit 110,000 -
Non-current liabilities 110,000 -

Bank overdraft - 154,874

Other payables 254,452 967,715
Short term bank loan 2,704,646 3,976,917
Inter-company payables 211,883,816 188,194,212
Current tax liabilities 2,147,237 1,676,097
Current liabilities 216,990,151 194,969,816
Toatl liabilities 217,100,151 194,969,816
Total equity and liabilities 19,203,088 30,153,194

M. Anis Ud Dowla Kamran Tanvirur Rahman Mohammad Mostafizur Rahman

Managing Director Director Company Secretary

As per our report of same date.

Ashraful Haque Nabi & Co.

Chartered Accountants.
Firm Registration No.
Dhaka, 24 October 2021 Signed by: Minhaz Shahid, FCA
Partner/Enrolment No. 1446
DVC# 2110241446AS292659

Page Annual Report 2020-

ACI Chemicals Limited
Statement of Profit or Loss and other Comprehensive Income

For the year ended For the year ended

In Taka 30 June 2021 30 June 2020

Revenue 10,791,580 20,061,183

Cost of sales (20,666,878) (43,891,428)
Gross profit (9,875,298) (23,830,245)
Administrative & selling expenses (4,203,802) (16,724,797)
Operating Profit (loss) (14,079,100) (40,555,042)

Other income/(loss) 55,500 -

Finance cost (17,891,759) (18,114,179)
Profit/(loss) before tax (31,915,359) (58,669,221)
Income tax expense:
Current tax (1,165,082) (2,404,571)
(1,165,082) (2,404,571)
Profit after tax (33,080,441) (61,073,793)
Total Comprehensive Income (33,080,441) (61,073,793)

M. Anis Ud Dowla Kamran Tanvirur Rahman Mohammad Mostafizur Rahman

Managing Director Director Company Secretary

As per our report of same date.

Ashraful Haque Nabi & Co.

Chartered Accountants.
Firm Registration No.
Dhaka, 24 October 2021 Signed by: Minhaz Shahid, FCA
Partner/Enrolment No. 1446
DVC# 2110241446AS292659

Annual Report 2020- Page

ACI Chemicals Limited
Statement of Changes in Equity

For the year ended 30 June 2021

Share Retained Total

In Taka capital earnings equity

Balance at 1 July 2020 20,000,100 (184,816,722) (164,816,622)

Issue of share capital - -
Total comprehensive income
Profit after tax - (33,080,441) (33,080,441)
Total other comprehensive income - net of tax - - -
Total comprehensive income - (33,080,441) (33,080,441)

Balance at 30 June 2021 20,000,100 (217,897,163) (197,897,063)

Balance at 1 July 2019 20,000,100 (123,742,929) (103,742,829)

Issue of share capital - - -
Total comprehensive income
Profit after tax - (61,073,793) (61,073,793)
Total other comprehensive income - net of tax - - -
Total comprehensive income - (61,073,793) (61,073,793)

Balance at 30 June 2020 20,000,100 (184,816,722) (164,816,622)

Page Annual Report 2020-

ACI Chemicals Limited
Statement of Cash Flows

For the year ended For the year ended

In Taka 30 June 2021 30 June 2020

Cash flows from operating activities

Cash received from customers 17,948,264 28,224,218
17,948,264 28,224,218

Cash received/(paid) from/(for):

Operating expenses (17,601,088) (60,675,482)
Purchase of inventory (2,968,648) (6,474,994)
Advances, deposits and prepayments (445,786) 370,468
(21,015,522) (66,780,008)
Cash generated from operations (3,067,258) (38,555,790)

Financing costs (17,891,759) (18,114,179)

Income tax (693,942) (928,915)
(18,585,701) (19,043,094)
Net cash from operating activities (21,652,959) (57,598,883)

Cash flows from investing activities

Acquisition/disposal of property, plant and equipment 92,352 (64,715)
Net cash (used) in investing activities 92,352 (64,715)

Cash flows from financing activities

Inter-company debts received/(paid) 23,689,604 54,279,461
Short term bank loan (paid)/received (1,272,271) 3,723,343
Net cash (used)/from financing activities 22,417,333 58,002,804

Net increase in cash and cash equivalents 856,725 339,206

Cash and cash equivalents at 1 July 221,035 (118,171)

Cash and cash equivalents at 30 June 1,077,761 221,035

Closing cash and cash balance represents

Cash and cash equivalents 1,077,761 375,910
Bank overdraft - (154,874)
1,077,761 221,035

Annual Report 2020- Page

INFOLYTX Bangladesh Limited
Directors' Report

INFOLYTX Bangladesh Limited was incorporated with the Registrar of Joint Stock Companies and Firms,
Dhaka, Bangladesh in 2015 as a private Company limited by shares and governed by the Companies Act
1994. The Company has been formed under a joint venture effort of Advanced Chemical Industries
(ACI) Limited and Odysseus Global, LLC, Delaware, USA, with a view to establish an IT Company of
international standards. ACI Limited holds 60% ownership in the Company. The principal activities of the
Company are to promote the advancement of software development and to work closely with
international clients in the ICT area with a view to enabling the Bangladesh software and
information technology industry to reach global pre-eminence.

The Company in FY2020-21 continued building and broadening its offerings around three key Artificial
Intelligence and Machine Learning technologies serving the healthcare and retail industries. INFOLYTX
also added new long-term clients in the US during FY2020-21 to develop advanced data infrastructure
and computer vision solutions.

In FY2021-22 INFOLYTX will continue it custom development activities while strengthening the
intellectual property for its various solutions and products to be marketed in the US. Furthermore,
INFOLYTX will continue innovating its sales and marketing approach so as to reach its financial goals as
quickly as possible.

The operating results of the Company for the year ended on 30 June 2021 are as follow:

Key Financial Results Taka

Revenue 339,800
Gross Profit/(Loss) 339,800
Operating Profit/(Loss) (101,193,636)
Profit/(Loss) before tax (130,359,837)
Profit/(Loss) after tax (135,837,921)

On behalf of the Board

Badrul Husain Dr. Arif Dowla

Managing Director Director

Dhaka, 24 October 2021

Page 254 Annual Report 2020-2021

ASHRAFUL HAQUE NABI & CO.
Chartered Accountants

Independent Auditor’s Report to the Shareholders of

INFOLYTX Bangladesh Ltd.
Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying financial statements of INFOLYTX Bangladesh Ltd. (“The Company”)
which comprise the statement of financial position as at 30 June 2021, and the statement of profit or
loss and other comprehensive income, statement of changes in equity, statement of cash flows for the year
then ended, and notes to the financial statements, including a summary of significant accounting policies
and other explanatory information.

In our opinion, the accompanying financial statement presents fairly, in all material respects, the
financial position of “INFOLYTX Bangladesh Ltd.” as at 30 June 2021, and of its financial performance
and its cash flows for the year then ended in accordance with the International Financial Reporting
Standards (IFRSs).

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities
under those standards are further described in the Auditors’ Responsibilities for the Audit of the
Financial Statements section of our report. We are independent of the Organization in accordance with
the ethical requirement that are relevant to our audit of the financial statements in Bangladesh, and we
have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Responsibilities of Management and Those Charged with Governance for the Financial
Statements and Internal Controls

Management is responsible for the preparation of financial statements that give a true and fair
view in accordance with IFRSs, 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.

In preparing the financial statements, management is responsible for assessing the company’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless management either intends to liquidate the Company or to
cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company’s financial reporting process.

Annual Report 2020- Page

 Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with ISAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.

• Obtain an understanding of internal control relevant to the audit 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 Company's internal control

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.

• Obtain sufficient appropriate audit evidence regarding the financial information of the entities
or business activities within the organization to express an opinion on the financial statements. We
are responsible for the direction, supervision and performance of the audit. We remain solely
responsible for our audit opinion.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting and
based on the audit evidence obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the Company’s ability to continue as a going
concern. If we conclude that a uncertainty exists, we are required to draw attention in our auditor’s
report to the related disclosures in the financial statements or, if such disclosures are inadequate,
to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date
of our auditor’s report. However, future events or conditions may cause the Company to cease to
continue as a going concern.

Page Annual Report 2020-

• Evaluate the overall presentation, structure and content of the financial statement, including
the disclosure, and whether the financial statements represent the underlying transactions and events
in a manner that gives a true and fair view.

• We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit

Report on other Legal and Regulatory Requirements

In accordance with the Companies Act 1994, we also report the following:

a) we have obtained all the information and explanations which to the best of our knowledge and belief
were necessary for the purpose of our audit and made due verification thereof;

b) in our opinion, proper books of account as required by law have been kept by the organization so far
as it appeared from our examination of those books; and

c) the statement of financial position and the statement of profit or loss and other comprehensive income
dealt with by the report are in agreement with the books of accounts.

Dhaka, 24 October, Ashraful Haque Nabi & Co.

Chartered Accountants.
Firm Registration No.
Signed by: Minhaz Shahid, FCA
Partner/Enrolment No. 1446
DVC# 2110241446AS362768

Annual Report 2020- Page

INFOLYTX Bangladesh Limited
Statement of Financial Position

In Taka 30 June 2021 30 June 2020

Assets
Property, plant and equipment 7,726,731 10,432,970
Non-current assets 7,726,731 10,432,970

Advances, deposits and prepayments 660,692 741,750

Trade receivables 11,665,638 11,745,000
Cash and cash equivalents 962,047 323,918
Current assets 13,288,377 12,810,668
Total assets 21,015,108 23,243,638

Equity
Share capital 100,000 100,000
Preference share 20,000,000 20,000,000
Share premium 80,000,000 80,000,000
Share money deposit 4,602 4,602
Accumulated loss (571,211,683) (435,373,761)
Total equity (471,107,081) (335,269,159)

Bank Overdraft 35,901 -

Inter-company payables 465,912,599 335,373,809
Other payables 15,704,069 11,960,402
Current tax liabilities 10,469,620 11,178,586
Current liabilities 492,122,189 358,512,797
Total equity and liabilities 21,015,108 23,243,638

Badrul Husain Dr. Arif Dowla Mohammad Mostafizur Rahman

Managing Director Director Company Secretary

As per our report of same date.

Ashraful Haque Nabi & Co.

Chartered Accountants.
Firm Registration No.
Signed by: Minhaz Shahid, FCA
Dhaka, 24 October 2021 Partner/Enrolment No. 1446
DVC# 2110241446AS362768

Page Annual Report 2020-

INFOLYTX Bangladesh Limited
Statement of Profit or Loss and Other Comprehensive Income

For the year ended For the year ended

In Taka 30 June 2021 30 June 2020

Revenue 339,800 2,535,000

Cost of sales - -
Gross profit/(loss) 339,800 2,535,000

General and administrative expenses (101,533,436) (111,018,554)

Operating loss (101,193,636) (108,483,554)

Other income(Loss) - -
Financing Cost (29,166,201) (23,757,492)
Loss before income tax (130,359,837) (132,241,046)

Income tax expense (5,478,084) (7,123,586)

Loss for the period (135,837,921) (139,364,632)

Badrul Husain Dr. Arif Dowla Mohammad Mostafizur Rahman

Managing Director Director Company Secretary

As per our report of same date.

Ashraful Haque Nabi & Co.

Chartered Accountants.
Firm Registration No.
Signed by: Minhaz Shahid, FCA
Dhaka, 24 October 2021 Partner/Enrolment No. 1446
DVC# 2110241446AS362768

Annual Report 2020- Page

INFOLYTX Bangladesh Limited
Statement of Changes in Equity

For the year ended 30 June 2021

Share Preference Share Share money Loss for the Total
In Taka capital shares Premium deposit period equity

Balance at 01 July 2020 100,000 20,000,000 80,000,000 4,602 (435,373,761) (335,269,159)

Share Capital - - - - - -
Share premium - - - - - -
Share money deposit - - - - -
Loss for the period - - - - (135,837,921) (135,837,921)
Balance as at 30 June 2021 100,000 20,000,000 80,000,000 4,602 (571,211,683) (471,107,081)

For the year ended 30 June 2020

Share Preference Share Share money Loss for the Total
In Taka capital shares Premium deposit period equity

Balance at 01 July 2019 100,000 20,000,000 80,000,000 4,602 (296,009,129) (195,904,527)

Share Capital - - - - - -
Share premium - - - - - -
Share money deposit - - - - - -
Loss for the period - - - - (139,364,632) (139,364,632)
Balance as at 30 June 2020 100,000 20,000,000 80,000,000 4,602 (435,373,761) (335,269,159)

Page Annual Report 2020-

INFOLYTX Bangladesh Limited
Statement of Cash Flows

For the year ended For the year ended

In Taka 30 June 2021 30 June 2020

Cash flows from operating activities

Cash receipts from customers and others 419,162 -
Cash paid to suppliers and employees (94,534,593) (98,230,011)
(94,115,431) (98,230,011)

Finance costs paid (29,166,201) (23,757,492)

Income Tax Paid (6,187,050) (15,000)
(35,353,251) (23,772,492)
Net cash from operating activities (129,468,682) (122,002,503)

Cash flows from investing activities

Acquisition of property, plant and equipment (467,879) (2,422,464)
Net cash generated from/(used in) investing activities (467,879) (2,422,464)

Cash flows from financing activities

Inter-company debts received/(paid) 130,538,789 124,283,688
Proceeds from share premium on Preference share - -
Proceeds from issue of Preference share - -
Net cash from financing activities 130,538,789 124,283,688

Net increase in cash and cash equivalents for the period (A+B+C) 602,228 (141,279)

Cash and cash equivalents at the beginning of the period 323,918 465,197

Cash and cash equivalents at the reporting date 926,146 323,918

Closing cash and cash balance represents

Cash and cash equivalents 962,047 323,918
Bank overdraft (35,901) -
926,146 323,918

Annual Report 2020- Page

ACI Biotech Limited
Directors' Report

ACI Biotech Limited (The Company) was incorporated in November 2016 with the Registrar of Joint
Stock Companies, Dhaka as a private limited company by shares and is governed by the Companies Act
1994. It is a subsidiary of Advanced Chemical Industries (ACI) Limited having 80% holding in
the company.

The company has been established with an objective to manufacture and market biotech products,
biotech specialty, monoclonal antibody, cell culture, anticancer, hormones, steroids, small molecule and
large molecule pharmaceuticals, genome, gene therapy, medicinal substances, biological and other alike
products in the country and aboard, as well. With this aim, a plant having state of the art manufacturing
facilities is planned to be established in line with the standards of US FDA, UK-MHRA, WHO cGMP
and other relevant agencies of that nature.

In FY 2020-21, a remarkable progress has been achieved to complete the state of the art manufacturing
plant. Superstructure of Biotech building and Oncology building has been completed.

The operating results of the Company for the year ended 30 June 2021 are as follows:

Key Financial Results Taka

Revenue Nil
Gross Profit/(Loss) Nil
Operating Profit/(Loss) (346,926)
Profit/(Loss) before tax (367,692)

On behalf of the Board

M Mohibuz Zaman Kamran Tanvirur Rahman

Managing Director Director

Dhaka, 24 October 2021

Page 262 Annual Report 2020-2021

ASHRAFUL HAQUE NABI & CO.
Chartered Accountants

Independent Auditors' Report to the Shareholders of

ACI Biotech Limited
Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying financial statements of ACI Biotech Limited (“The Company”) which
comprise the statement of financial position as at 30 June 2021, and the statement of profit or loss and
other comprehensive income, statement of changes in equity, statement of cash flows for the year then
ended, and notes to the financial statements, including a summary of significant accounting policies and
other explanatory information.

In our opinion, the accompanying financial statement presents fairly, in all material respects, the
financial position of “ACI Biotech Limited” as at 30 June 2021, and of its financial performance and its
cash flows for the year then ended in accordance with the International Financial Reporting Standards
(IFRSs).

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities
under those standards are further described in the Auditors’ Responsibilities for the Audit of the
Financial Statements section of our report. We are independent of the Organization in accordance with
the ethical requirement that are relevant to our audit of the financial statements in Bangladesh, and we
have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Responsibilities of Management and Those Charged with Governance for the Financial
Statements and Internal Controls

Management is responsible for the preparation of financial statements that give a true and fair
view in accordance with IFRSs, 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.

In preparing the financial statements, management is responsible for assessing the company’s ability to
continue as a going concern, disclosing , as applicable , matters related to going concern and using the
going concern basis of accounting unless management either intends to liquidate the Company or to
cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company’s financial reporting process.

Annual Report 2020- Page

 Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with ISAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.

• Obtain an understanding of internal control relevant to the audit 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 Company's internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.

• Obtain sufficient appropriate audit evidence regarding the financial information of the entities
or business activities within the organization to express an opinion on the financial statements. We
are responsible for the direction, supervision and performance of the audit. We remain solely
responsible for our audit opinion.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting and
based on the audit evidence obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the Company’s ability to continue as a going
concern. If we conclude that a uncertainty exists, we are required to draw attention in our auditor’s
report to the related disclosures in the financial statements or, if such disclosures are inadequate,
to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date
of our auditor’s report. However, future events or conditions may cause the Company to cease to
continue as a going concern.

Page Annual Report 2020-

• Evaluate the overall presentation, structure and content of the financial statement, including
the disclosure, and whether the financial statements represent the underlying transactions and events
in a manner that gives a true and fair view.

• We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.

Report on other Legal and Regulatory Requirements

In accordance with the Companies Act 1994, we also report the following:

a) we have obtained all the information and explanations which to the best of our knowledge and belief
were necessary for the purpose of our audit and made due verification thereof;

b) in our opinion, proper books of account as required by law have been kept by the organization so far as
it appeared from our examination of those books; and

c) the statement of financial position and the statement of profit or loss and other comprehensive
income dealt with by the report are in agreement with the books of accounts.

Dhaka, 24 October, Ashraful Haque Nabi & Co.

Chartered Accountants.
Firm Registration No.
Signed by: Minhaz Shahid, FCA
Partner/Enrolment No. 1446
DVC# 2110241446AS348470

Annual Report 2020- Page

ACI Biotech Limited
Statement of Financial Position

In Taka 30 June 2021 30 June 2020

Assets
Property, plant & equipment 33,067 45,467
Capital work-in-progress 896,873,932 812,420,841
Non-current assets 896,906,999 812,466,308

Advances, deposits and prepayments 134,790 322,465

Cash and cash equivalents 339,883 329,690
Current assets 474,674 652,156
Total assets 897,381,673 813,118,464

Equity
Share capital 10,000,000 10,000,000
Retained earnings (2,230,994) (1,863,302)
Total equity 7,769,006 8,136,698

Liabilities
Inter company payables 884,171,517 788,595,396
Other payables and accruals 5,441,150 16,386,370
Current liabilities 889,612,667 804,981,766
Total equity and liabilities 897,381,673 813,118,464

M Mohibuz Zaman Kamran Tanvirur Rahman Mohammad Mostafizur Rahman

Managing Director Director Company Secretary
As per our report of same date.

Ashraful Haque Nabi & Co.

Chartered Accountants.
Firm Registration No.
Signed by: Minhaz Shahid, FCA
Partner/Enrolment No. 1446
DVC# 2110241446AS348470
Dhaka, 24 October 2021

Page Annual Report 2020-

ACI Biotech Limited
Statement of Profit or Loss and other Comprehensive Income

In Taka 30 June 2021 30 June 2020

Revenue - -
Cost of sales - -
Gross profit - -
General and administrative expenses (346,926) (116,541)
Loss from operation (346,926) (116,541)
Financing cost (20,766) (7,769)
Loss before tax (367,692) (124,310)
Income tax expenses - -
Net loss after tax (367,692) (124,310)

M Mohibuz Zaman Kamran Tanvirur Rahman Mohammad Mostafizur Rahman

Managing Director Director Company Secretary
As per our report of same date.

Ashraful Haque Nabi & Co.

Chartered Accountants.
Firm Registration No.
Signed by: Minhaz Shahid, FCA
Partner/Enrolment No. 1446
DVC# 2110241446AS348470
Dhaka, 24 October 2021

Annual Report 2020- Page

ACI Biotech Limited
Statement of Changes in Equity

Share Retained Total

In Taka capital earnings equity

Balance at 1 July 2020 10,000,000 (1,863,302) 8,136,698

Loss for the period - (367,692) (367,692)
Balance at 30 June 2021 10,000,000 (2,230,994) 7,769,006

Share Retained Total

In Taka capital earnings equity

Balance at 1 July 2019 10,000,000 (1,738,992) 8,261,008

Loss for the period - (124,310) (124,310)
Balance at 30 June 2020 10,000,000 (1,863,302) 8,136,698

Page 268 Annual Report 2020-2021

ACI Biotech Limited
Statement of Cash Flows

30 June 30 June
In Taka 2021 2020

Cash flows from operating activities

Payment for operating expenses (346,926) (116,541)
Payment to other creditors (10,945,220) (14,374,781)
Finance costs paid (20,766) (7,769)
Net cash from operating activities (11,312,912) (14,499,092)

Cash flows from investing activities

Acquisition of Property, plant and equipment - -

Expenditure incurred for capital work-in-progress (84,253,016) (230,523,563)
Net cash used in investing activities (84,253,016) (230,523,563)

Cash flows from financing activities

Proceeds from inter company borrowings 95,576,121 245,109,967

Proceeds from share issue - -
Net cash from financing activities 95,576,121 245,109,967
Net increase/decrease in cash and cash equivalents 10,193 87,312
Opening cash and cash equivalents 329,690 242,378
Closing cash and cash equivalents 339,883 329,690

Annual Report 2020- Page

ACI Marine and Riverine Technologies Limited
Directors' Report

ACI Marine & Riverine Technologies Limited is a private limited company incorporated in December 2019
under the Companies Act 1994 being a 77% owned subsidiary of ACI Limited. The business is
driven with a mission of ‘Improving Quality of Life through responsible application of technology and
services in Marine & Riverine operation.’

With a dream of navigating through the sea of opportunities provided by Blue Economy, the
company has already started rolling out less capital intensive yet highly demanding product lines such
as Marine Engine, Lubes, Accessories and Spare Parts.

In Bangladesh, the surface area of river consists of 24,000 km and sea consists of 354 nautical
miles. This provides a huge potentiality of business. Operations in the areas like fisheries,
transportation and irrigation system. Major Lucrative opportunities include a) Carrying goods b)
Connecting traffic/Navigation through digital platform c) Surface water distribution d) Dredging
service. The company has aspirations for investing in the aforementioned areas based on feasibility
analysis.

The operating results of the Company for the year ended on 30 June 2021 are as follows:

Key Financial Results Taka

Revenue 46,627,508
Gross Profit/(Loss) 6,005,500
Operating Profit/(Loss) (1,176,420)
Profit/(Loss) before tax (146,696)
Profit/(Loss) after tax (2,610,651)

On behalf of the Board

Dr. A.K.M Fareyzul Haque Ansarey Dr. Arif Dowla

Managing Director Director

Dhaka, 24 October 2021

Page 270 Annual Report 2020-2021

 SHIRAZ KHAN BASAK & CO.
C H A R T E R E D A C C O U N TA N T S

Independent Auditors' Report to the Shareholders of

ACI Marine and Riverine Technologies Limited
Report on the Audit of the Financial Statements

Opinion

We have audited the financial statements of ACI Marine and Riverine Technologies Limited (“the
Company”), which comprise statement of financial position as at 30th June, 2021, and the statement of
profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows
for the year then ended, and notes to the financial statements, including a summary of significant
accounting policies and other explanatory information.

In our opinion, the accompanying financial statements give a true and fair view of the financial position
of the company as at 30th June, 2021, and of its financial performance and its cash flows for the year
then ended in accordance with International Financial Reporting Standards (IFRSs), the Companies Act 1994
and other applicable laws and regulations.

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities
under those standards are further described in the Auditor's Responsibilities for the Audit of the
Financial Statements section of our report. We are independent of the Company in accordance with the
International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA
Code) together with ethical requirement that are relevant to our audit of the financial statements in
Bangladesh, and we have fulfilled our other ethical responsibilities in accordance with these
requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.

Responsibilities of Management and Those Charged with Governance for the Financial
Statements

Management is responsible for the preparation of financial statements that give a true and fair
view in accordance with IFRSs, the Companies Act, 1994 and 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.

In preparing the financial statements, management is responsible for assessing the Company’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless management either intends to liquidate the Company or to
cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company’s financial reporting process.

Annual Report 2020- Page

 SHIRAZ KHAN BASAK & CO.
C H A R T E R E D A C C O U N TA N T S

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor's
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement
when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of these (consolidated) financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.

• Obtain an understanding of internal control relevant to the audit 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 Company’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Company’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
auditor's report to the related disclosures in the financial statements or, if such disclosures are in
adequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to
the date of our auditor's report. However, future events or conditions may cause the Company to
cease to continue as a going concern.

Page Annual Report 2020-

 SHIRAZ KHAN BASAK & CO.
C H A R T E R E D A C C O U N TA N T S

• Evaluate the overall presentation, structure and content of the financial statements, including
the disclosures, and whether the financial statements represent the underlying transactions and events in
a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.

Report on Other Legal and Regulatory Requirements

In accordance with the Companies Act 1994, we also report the following:

a) We have obtained all the information and explanation which to the best of our knowledge and belief
were necessary for the purpose of our audit and made due verification thereof;

b) 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;

c) The statement of financial position and statement of comprehensive income dealt with by the report are
in agreement with the books of accounts and returns;

d) The expenditure incurred was for the purpose of the Company’s business.

Dhaka, 24 October 2021 Chaity Basak, FCA (Enrol # 1772)

Partner
Shiraz Khan Basak & Co.
Chartered Accountants
DVC: 2110241772AS950611

Annual Report 2020- Page

ACI Marine and Riverine Technologies Limited
Statement of Financial Position

For the year ended For the year ended

In Taka 30 June 2021 30 June 2020

Assets
Property, plant and equipment 59,967 -
Non-current assets 59,967 -

Inventories 24,374,612 8,593,401

Trade receivables 3,833,000 -
Other receivables 23,000,000 23,000,000
Inter-company receivables 39,472,099 -
Advances, deposits and prepayments 1,964,127 1,781,906
Cash and cash equivalents 12,671,695 77,008,738
Current assets 105,315,533 110,384,045
Total assets 105,375,500 110,384,045

Equity
Share Capital 100,000,000 100,000,000
Retained earnings/(loss) (2,489,930) 120,721
Total equity 97,510,070 100,120,721

Liabilities
Loans and borrowings 3,911,438 -
Trade Payables 8,000 -
Inter-company payables - 10,130,838
Other payables 3,814,772 1,266
Current tax liability 131,220 131,220
Current liabilities 7,865,430 10,263,324
Total liabilities 7,865,430 10,263,324
Total equity and liabilities 105,375,500 110,384,045

Dr. A.K.M Fareyzul Haque Ansarey

Dr. Arif Dowla Mohammad Mostafizur Rahman
Managing Director
Director Company Secretary
As per our report of same date.

Chaity Basak, FCA (Enrol # 1772)

Dhaka, 24 October 2021 Partner
Shiraz Khan Basak & Co.
Chartered Accountants
DVC: 2110241772AS950611

Page Annual Report 2020-

ACI Marine and Riverine Technologies Limited
Statement of Profit or Loss

For the year ended For the year ended

In Taka 30 June 2021 30 June 2020

Revenue 46,627,508 21,869,940

Cost of sales 40,622,008 19,690,519
Gross profit 6,005,500 2,179,421
Administrative, selling and distribution expenses 7,181,920 1,394,726
Operating profit (1,176,420) 784,695
Financing costs (1,029,724) 531,489
Profit before contribution to WPPF & Tax (146,696) 253,206
Contribution to WPPF - 1,266
Profit before Tax (146,696) 251,940
Income tax expense 2,463,955 131,220
Profit after Tax (2,610,651) 120,720

Dr. A.K.M Fareyzul Haque Ansarey

Dr. Arif Dowla Mohammad Mostafizur Rahman
Managing Director
Director Company Secretary
As per our report of same date.

Chaity Basak, FCA (Enrol # 1772)

Dhaka, 24 October 2021 Partner
Shiraz Khan Basak & Co.
Chartered Accountants
DVC: 2110241772AS950611

Annual Report 2020- Page

ACI Marine and Riverine Technologies Limited
Statement of Changes in Equity

For the year ended 30 June 2021

Share Retained Total
In Taka capital earnings equity

Balance as at 01 July 2020 100,000,000 120,721 100,120,721

Profit/(Loss) after tax - (2,610,651) (2,610,651)
Issuance of share - - -
Balance as at 30 June 2021 100,000,000 (2,489,930) 97,510,070

For the year ended 30 June 2020

Share Retained Total
In Taka capital earnings equity

Balance as at 01 July 2019 - - -

Profit/(Loss) after tax - 120,721 120,721
Issuance of share 100,000,000 - 100,000,000
Balance as at 30 June 2020 100,000,000 120,721 100,120,721

Page Annual Report 2020-

ACI Marine and Riverine Technologies Limited
Statement of Cash Flows

For the year ended For the year ended

In Taka 30 June 2021 30 June 2020

Cash flows from operating activities

Cash received from customers 42,794,508 21,869,940
Cash (used in)/generated from operating activities 42,794,508 21,869,940

Payment for purchase (56,395,219) (28,283,920)

Payment for operating expenses (4,409,316) (1,394,726)
Payment for WPPF - -
Payments for advances, deposits and prepayments (182,221) (1,781,906)
(60,986,756) (31,460,552)
Cash used in operation (18,192,248) (9,590,612)
Interest paid 2,080,659 (531,488)
Income tax paid (2,463,955) -
(383,296) (531,488)
Net cash (used in)/from operating activities (18,575,544) (10,122,100)

Cash flows from investing activities

Acquisition of property, plant and equipment (70,000) -
Net cash generated from/(used in) investing activities (70,000) -

Cash flows from financing activities

Inter-company debts received/(paid) (49,602,937) 10,130,838
Short term loan received/(paid) 3,911,438 -
Proceeds from issue of Share Capital - 77,000,000
Net cash (used in)/from financing activities (45,691,499) 87,130,838

Net increase/(decrease) in cash and cash equivalents (64,337,043) 77,008,738

Opening cash and cash equivalents 77,008,738 -

Cash and cash equivalents at reporting date 12,671,695 77,008,738

Closing balance represents

Cash and cash equivalents 12,671,695 77,008,738
Bank overdraft 12,671,695 77,008,738

Annual Report 2020- Page

Advanced Chemical Industries Limited Corporate Directory

Registered Office Share Office

ACI Centre 9 Motijheel C/A
245 Tejgaon Industrial Dhaka-1000
Area Dhaka-1208 Phone : (8802) 9556254
Phone : (8802) 8878603
Fax : (8802) 8878619
Email : info@aci-bd.com
Web : www.aci-bd.com

Manufacturing Facilities

Advanced Chemical Industries Ltd ACI Salt Limited

Pharmaceuticals Unit 9. Salt Unit
7 Hajiganj Road, Godnail, Narayanganj Phone : (8802) 7630493,
Murapara,7630496,
Rupganj,7630525
Narayanganj Phone : 01714029810
Fax: (8802) 7630524
Electrical Products Unit
Plot - 13, 14, Block-B, BSCIC Industrial Estate, Tongi, Gazipur 1700
Phone : 01714163172
Sanitary Napkin & Diaper Unit Nil Nagar, Konabari, GazipurACI Foods
Phone : Limited
01730007780
Foods Unit
Kutirchar, Bhadraghat Kamarkhand, Sirajganj
Phone : 01755607412
Rice Unit
Swarashatipur, Mohadevpur, Naogaon
Mobile: 01709650770

ACI Formulations Limited

4. Formulations Unit Rajabari, Sreepur, Gazipur Phone : 01766668863

Premiaflex Plastics Limited

Premiaflex Unit
Kewa Poschim Khondo, Mouna, Sreepur, Gazipur
ACI Pure Flour Limited Phone : 01711136494
Flour Unit-1 Premio Plastics Unit Dharmagonj, Fatullah, Narayanganj Phone : 017300
6/3 Dewli Chowrapara, Bondor, Narayanganj Phone : 01713 069714
Flour Unit-2
52/A, Faizderhat Industrial Area, Sagorika Road, Chittagong Phone : 01708130207

ACI HealthCare Limited

14. HealthCare Unit Treepordi, Sonargaon, Narayanganj - 1440
Phone : 01713238832
ACI Edible Oils Limited
7. Belghoria, Hat Chalk Gouri, Mohadebpur, Naogaon

ACI Biotech Limited

ACI Agrolink Limited 15. Treepordi, Sonargaon
Narayanganj - 1440
8. Amiyan, Tarail, Kaliganj, Satkhira Phone : 01713052969
Phone : 01713238832

Page 278 Annual Report 2020-2021

 Advanced Chemical Industries Limited
Registered Office
ACI Centre, 245 Tejgaon Industrial Area, Dhaka-1208

PROXY FORM

I/We

of
being a Member of Advanced Chemical Industries Limited, hereby appoint

of

whose signature is appended below as my/our proxy to attend and vote for me/us and on my/our behalf

at the 48th Annual General Meeting of the Company to be held on Sunday, 26 December 2021 at 11:30

a.m. and/or at any adjournment thereof.

As witness my hands this day of 2021.

Signature on
Tk.20
Revenue Stamp

(Signature of the Proxy) (Signature of the Shareholder)

Registered Folio/BO ID No.

No. of Shares held

Date:

Note : A Member entitled to attend and vote at the Annual General Meeting may appoint a proxy

to attend and vote on his/her behalf. The Proxy Form, duly completed, must be deposited
at the Share Office of the Company at 9 Motijheel C/A, Dhaka 1000, not later than 48

hours before the time fixed for the meeting.

Annual Report 2020-2021 Page 279

Please complete the attendance slip and hand it over at the venue of the Meeting.

ADVANCED CHEMICAL INDUSTRIES

LIMITED
Registered Office
ACI Centre, 245 Tejgaon Industrial Area, Dhaka-1208

ATTENDANCE SLIP

I hereby record my Attendance at the 48th Annual General Meeting being held on Sunday, 26 December
2021 at 11:30 through digital platform.

Name of member/proxy

Registered Folio/ BO ID No.

No. of Shares held:

Signature of Shareholder(s)
Safety, Health and Environment (SHE) Policy
ACI is committed to conduct all its operations in a manner that is
protective of the environment, health and safety of employees,
customers and the community. To this end, the company has already
obtained ISO 14001 Certification for Environmental Management
System. ACI will provide the resources to educate and involve
every individual in the Company in achieving this objective. In
fulfillment of this commitment, we shall maintain a continuing
effort to adhere to the following principles.

Principles

1 We believe that all accidents, incidents and work- related ill health
are preventable and with this aim in mind we will manage our
businesses. We will deploy adequate resources for the prevention
and control of accident.

2 We will investigate all workplace accidents and illnesses in

order to promptly correct any unsafe conditions or practices,
and to prevent repetition of these occurrences.

3 We will fully comply with all the national regulations but in

addition will set our own stringent internal corporate standards on
matters relating to safety, health and the environment, and
endeavour to strictly adhere to them.

4 We will continue to improve communication and exchange

views with employees, employee representatives, customers,
contractors, suppliers, neighbours and any other individual or
organisation affected by our business.

5 We will integrate SHE considerations into business planning

and decision-making.

6 We will continue to innovate in order to improve our products and

processes so that their effects on safety, health and the
environment are reduced.

7 We will increase shareowners' value through SHE excellence.

Annual Report 2020-2021