SOVEREIGN IN

WAVE
Sovereign in Wave
The theme “Sovereign in Wave”
defines that this company has the
own capability to maintain distinction
even in any calamitous situation. As
well as the wheel of a ship, used as in
metaphor, implies the process of total
internal and external control by the
competent and skilled leadership.

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 CONTENTS

27th Annual Letter of Transmittal 05

General Meeting AGM Notices (English Version) 06
AGM Notices (Bangla Version) 08
Access process to join Virtual General Meeting 11

Company Performance at a Glance FY 2019-2020 13

Over View Overview of the Group 15
Overview of the BPML 16
Our Mission 18
Our Values 19
Commitment and Priority 20
Code of Conducts 23
Policy Statement 24
Corporate Directory 26
Time line of the BPML 28

Leadership Chairman’s Message 32

Managing Director’s Review 34
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Board of Directors 37
Director’s Profile 38

Bashundhara Paper Mills Ltd.

Annual Report-2020
Information for Director’s Report to Shareholders 43
Shareholders Performance of last 5 years 65
Graphical Presentation 66
Statement of Wealth Creation & Distribution 68
Communication of Shareholders 69
Shareholdings Position 70

Financial Statements CFO & CEO Declaration on Financial Statements 73

Independent Auditors’ Report to the Shareholders 74
Statement of Financial Position 78
Statement of Comprehensive Income 79
Statement of Changes in Equity 80
Statement of Cash Flow 81
Notes to Financial Statements 82

Corporate Governance Statement on Corporate Governance 145

Report of the Audit Committee 147
Report of the Nomination and Remuneration Committee 150
Corporate Goveranance Compliance Certification 153
Status Report on Corporate Governance Code 154

Achievements & Others Global Footprint of BPML 169

Awards and Certification 170
Corporate Social Responsibility 172
Brand Communications 173
26th AGM in Action 176

Shareholders Proxy Form (English Version) 179

Attendance Form Proxy Form (Bangla Version) 180
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Bashundhara Paper Mills Ltd.

Annual Report-2020
 27th
ANNUAL
GENERAL
MEETING
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Bashundhara Paper Mills Ltd.

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Annual Report-2020
LETTER OF
TRANSMITTAL

To
All Stakeholders of Bashundhara Paper Mills Limited;
Bangladesh Securities and Exchange Commission;
Registrar of Joint Stock Companies and Firms;
Dhaka Stock Exchange Limited;
Chittagong Stock Exchange Limited;
Bangladesh Bank and all Financial Institutions;
National Board of Revenue.

Concertation: Annual Report of Bashundhara Paper Mills Limited for the year ended
30 June 2020.

Dear Sir (s),

We are pleased to present before you the Annual Report of the Bashundhara Paper Mills Limited
(BPML) along with the audited Financial Statements as on 30 June 2020 for your kind information
and record.

General review of this, unless explained otherwise, is based on the financials of the ‘BPML’.

Yours sincerely,
Sd/-
M. Mazedul Islam
Company Secretary in charge Printed on Bashundhara Paper

Bashundhara Paper Mills Ltd.

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Annual Report-2020
 NOTICE OF
ANNUAL GENERAL MEETING

NOTICE OF THE 27th ANNUAL GENERAL MEETING

(Virtual Meeting through Digital Platform)

Notice is hereby given that the 27th Annual General Meeting of the Members of Bashundhara Paper Mills Limited will be
held on Thursday, 24 December, 2020 at 10:30 AM (local time) by using Digital Platform through the link-
http://bpml.digitalagmbd.net to transact the following business:

A. Special Business:
To consider and if deem fit to pass the following resolution as “Special Resolution” to be read as follows-

1. To amend the Article no. 122 of the Articles of Association of the Company.
“122. Subject to the approval of the Board of Directors, the company can open bank account(s) with any schedule
bank(s) and financial institution(s). The company's bank account(s) would be operated- i) jointly by two Directors;
and/or ii) by any other person or persons as decided or nominated by the Board of Directors from time to time.”

2. To amend the IPO Prospectus: BO ID number of two Directors of the Company.

“That the BO ID numbers of - i) Mr. Md. Imrul Hassan and ii) M/S. East West Property Development (Pvt.) Ltd. be
and are hereby amended as 1203250018087777 and 1601880000066143 respectively, instead of 1202550023711915
and 1202550025299080 at Part-XXIII (b), Page no. 238 in the IPO Prospectus of the Company with immediate
effect.”

B. Ordinary Business:
1. To receive, consider and adopt the Directors’ Report, the Auditors’ Report and the Audited Accounts of the
Company for the Financial Year ended on 30 June 2020;
2. To declare and approve the Dividend for the Financial Year ended on 30 June 2020;
3. To elect the Directors;
4. To appoint Statuary Auditors for the Financial Year 2020-2021 and to fix their remunerations;
5. To appoint Compliance Auditors for the Financial Year 2020-2021 and to fix their remunerations.

By Order of the Board of Directors

Sd/-
M. Mazedul Islam
Date: 26 November,2020 Company Secretary in charge
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06
Annual Report-2020
Notes:

i. The “Record Date” of the Company has been fixed on 30/11/2020. Members whose names appeared in the Company's
Member Register (certificated and depository) at the close of business on the Record Date be entitled to attend/join the
Annual General Meeting. General Shareholders (excepting the Sponsors, Directors and Pre-IPO placement holders)
will only be entitled to receive the dividends;

ii. The 27th AGM of the Company would be conducted through “Digital Platform” in accordance with the Order No. SEC/
SRMIC/04-231/932 dated 24 March 2020 of Bangladesh Securities and Exchange Commission (BSEC);

iii. The details log-in process for the meeting though the mentioned link will be available in the Company’s website
www.bashundharapapermills.com and the link will be emailed to the respective Member’s address which is available
with the registers on the record date. The members will be able to log-in with the link 24 hours before the time fixed for
the Meeting for expressing their valuable comments. Please visit the website for technical assistance (if any) in accessing
the virtual meeting;

iv. Any member entitled to attend and vote at the Annual General Meeting may appoint a proxy on his/her behalf provided
that such proxy must be a member of the company. The Proxy Form (attached with the Annual Report) must be affixed
with revenue stamp of Tk. 20/- and must be sent through at the email to [email protected] not later than 72
hours before the time fixed for the Meeting;

v. Members are requested to notify the changes of their bank accounts and addresses including email addresses (if any),
through their respective Depository Participants (DP) well in time;

vi. The soft copy of the Annual Report-2020 of the Company will be sent to the e-mail addresses of the Members available
in their BO accounts maintained with the CDBL as per BSEC Notification No. BSEC/CMRRC
D/2006-158/208/Admin/81dated 20June 2018. The Annual Report-2020 will also be available in the website
www.bashundharapapermills.com of the Company.

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Bashundhara Paper Mills Ltd.

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Annual Report-2020
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Bashundhara Paper Mills Ltd.

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Bashundhara Paper Mills Ltd.

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ACCESS PROCESS TO JOIN
VIRTUAL GENERAL MEETING
Considering the health and safety of all the Stakeholders of Bashundhara Paper Mills Limited due to global pandemic
situation, the Board of Directors has arranged its 27th Annual General Meeting through digital platform in accordance with
the BSEC’s order no. SEC/SRMIC/04-231/932 dated 24 March 2020.

The valued shareholders can be join/conduct in the virtual meeting via live webcast by using the link:
http://bpml.digitalagmbd.net. The access process of join in the virtual meting adhere for the convenience of the
shareholders. So that, the shareholders are able to participate fully and equally from any location of the world.

ACCESS QUESTION & VOTE

ANSWER
Login as a Shareholder you’ll have to- BPML encourages shareholders to Shareholder shall be to vote either
ask out anything as per the agenda in favor or against of any proposed
i. Click shareholder Tab to the board and management. agenda using the option of the tab.
ii. Enter BO ID/ Folio in the text box. The management will try to answer
iii. Enter number of shares held as of the questions as they come in. The vote shall be count based on
record date. number of shares held by that
iv. Click login. The login link shall be open before shareholder. The voting result shall
24 hours of the meeting for put be published in real time at the
And to login in as Proxy- valuable comments and sugges- time of approval on the specific
tion of the shareholders. agenda.
i. Click Proxy Tab.
ii. Enter BO ID of original shareholder.
iii. Enter number of shares held by
original shareholder.
iv. Enter BO ID of proxy shareholder
v. Enter number of shares held by
proxy shareholder.
vi. Click login.

27th AGM Helpline:

Mr. M. Mazedul Islam Mr. Md. Mahbubur Rahman Mr. Mamun Hossain
[email protected] [email protected] [email protected]

Tel: +88 02 8432289-93, Ext-4449 and 4450

Fax: +8802 55037257
Web. www.bashundharapapermills.com

You may download a digital

You may also download a copy of this
Printed on Bashundhara Paper

copy of the Annual Report-2020

Annual Report from the website:
by scanning this QR code on
www.bashundharapapermills.com
your smart device.

Bashundhara Paper Mills Ltd.

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Annual Report-2020
 COMPANY
OVERVIEW
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Bashundhara Paper Mills Ltd.

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Annual Report-2020
PERFORMANCE
AT A GLANCE FY 2019-2020

Net Revenue Gross Profit Profit after Tax Export Sales

(BDT.mn) (BDT.mn) (BDT.mn) (BDT.mn)

8,544.46 1,877.58 285.83 738.27

Contribution to
National Export Capacity
Exchequer Destination Utilization Net Asset Values
(BDT.mn) (Country) (%) (NAV)/Share

721.54 30 61% 43.55

Earnings Per Net Operating Human

share (EPS) Cash Flow/Share Capital nos.

1.64 24.85 3,954

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Bashundhara Paper Mills Ltd.

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Bashundhara Paper Mills Ltd.

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OVERVIEW ON
BASHUNDHARA
GROUP
Bashundhara Group, has started its journey as a real estate venture known as "Bashundhara" under the aegis of the group's
first concern- the East-West Property Development (Pvt.) Ltd in 1987. By the ramifications of this success, Bashundhara
concentrated to invest in many new arenas like Manufacturing, Trading and Service. Most of the enterprises were
established in the early 1990s, covering diverse activities involving the production of Cement, Paper and Pulp, Tissue paper,
Shipping, Foods, Refinery, LPG bottling and distribution, and trading company, among others. The group experienced this
tremendous growth over the last two decades. The Group's first publicly-traded company, the Meghna Cement Mills
Limited, is listed in 1996 and the last addition by Bashundhara Paper Mills Ltd. on 2018 with the two Stock Exchanges of
Bangladesh.

The group has established a media house named “East West Media Group Ltd” which was in 2009. This house owns Bangla
daily – “Kaler Kantho”, “Bangladesh Pratidin”, English daily “Daily Sun” and online portal “Banglanews24.com”. The media
house also introduced a FM radio known as “Radoi Capital 94.80” and a television news channel “News24” in 2016 as well.

A micro-credit program under Bashundhara Foundation, Bashundhara Technical Institute, Bashundhara ad-din Medical
College Hospital, Bashundahara Eye Hospital & Research Institute and Bashundhara Special Children Foundation are being
operated by the assistance and patronization of the group. The group also a patron of Sheikh Jamal Dhanmondi Cub Ltd.
and Sheikh Russel Krira Chakra Ltd.

This Group has come a long way in reaching its goals by listening to customer’s needs, learning real-time lessons from past
projects, innovating and partnering its project implementation process. Around 50,000 employees directly and 200,000
indirectly continuously contributing to grow up this Group. Through major investment undertakings in all key sectors,
Bashundhara has a meaningfully contributed to the country’s socio-economic stability in financial and capital markets.
Underlying all of the Group's activities are the common threads of change, flexibility, and fostering closer ties with the
Government, the City Corporation and Bashundhara customers. Most of its projects have been success stories - this fact
alone is enough to justify its moto “For the People, for the Country”.

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 OVERVIEW
ON THE BPML

Bashundhara Paper Mills Limited incorporated as a private limited company in the year 1993 and subsequently it was
converted into a public limited company, now a publicly listed company. After starting its commercial operation as an
import-substitute local paper manufacturing company another two companies of the Bashundhara Group of same nature
namely “Bashundhara Newsprint & Duplex Board Industries Limited” (Former Shahjalal News Print Industries Ltd.) and
“Bashundhara Tissue Industries Limited” (Former Freyschmidt Tissue Limited) amalgamated with BPML on October 10,
2009. After the amalgamation of all three companies caring out its business as a single legal entity and operated three
separate units as “Unit 1”, “Unit-2” and “Unit-3” for the administrative purpose.

The three industrial units, are separate in their location and product diversity. All are equipped with industry-best
state-of-the-art facilities and are regularly going through meticulously opted refurbishment processes to cope up achieving
"scale of economies" and "resource conservation" esp. in energy (power consumption) and water usage per unit output.
These significant alterations have been easily accomplished backed by dependable partnerships with World’s top
technology providers e.g. Valmet, Andritz, ABB, Siemens, Voith, Caterpillar, Gapcon, Cleaverbrooks, Thermex, Sigma
Engineering, Recard, Parker, Eurotherm, OK Machineries, Adpep, Taisan, Omet, ZWC etc.

The company has been relentless over more than two decades to offer its diversified products ranging from different types
of Paper, Tissue & Hygiene portfolio, thereby it has rightly been entrusted from customer’s fraternity of home and abroad. At
present, Bashundhara Paper is the trusted source of volume Paper-needs of both Government level and, while keep general
consumers pace of exporting to over 35 different global destinations. Noteworthy, it has been successful to become the only
Company in Bangladesh having the certification of ISO 9001:2015 and FSC-CoC at the same time, certainly due to its thrust
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on environment is visible in various eco-friendly initiatives at the Plant sites by adopting modern technology and process
innovations. On the other hand, quality of products in line with the market demand and by an efficient management the
company introduced itself as the change leader in this industry.

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BPML (Unit-1)
The unit-1 was established in 1993 with an integrated paper plant with 36,000 MT and 43,200 MT tissue per annam installed
capacity. It commenced its commercial production in February 1997 to address the rapidly growing local demands of Paper
and Paper products. Over the years, the production capacity has been enhanced with the addition of 3 more paper plants
and 10 converting units.
In this Unit the company produce a diversified product range from 20 GSM to 300 GSM of different grades of White Writing
& Printing Papers, Carbonless Paper, Colored/ Offset Printing & Wrapping Papers, Color Ledger Paper, Sticker Papers,
Cigarette Tipping Papers, OGR Paper, Exercise Books, A4 Paper, Paper Sack also time to time produce plng warps stiffener
Glassine paper, PP woven Bag, MG paper, Coted , uncoated Paper Board and all types of tissue etc. The very Company was
the pioneer to introduce local-made Offset Paper in the Market.

Periodic renovation and modernization of the Plant machineries well foreseen by the skilled resources of home and abroad
have helped the plant to remain in healthy condition even after decades. The Company’s firm commitment and success
delivering high quality products and services to customers has been the major reason to attain and retain the leadership
position sector of this country.

BPML (Unit-2)
It was formally known as Bshundhara Newspaper & Duplex Board Ltd. before amalgamations with the PBML, The Unit-2
three modern plants in producing newsprint, white writing/printing paper, duplex board, liner paper, Kraft paper, Art card,
art paper and allied products.

The first plant produces duplex boards and other industrial packing papers used in packaging industry. An off line coater
produces coated duplex board & Art card in this unit.The second unit produces environment friendly newsprint from
recycled pulp (DIP) for national dailies, weeklies, fortnightlies. It also produces writing and printing paper for local
consumption and also for printing text book for NCTB.

BPML (Unit-3)
Unit–3 of Bashundhara Paper Mills Limited, formerly known as Bashundhara Tissue Industries Limited, was set up at
Anarpura, Gazaria, Munshiganj in 1995. It is the country’s first basic tissue manufacturing factory at the face of growing
popularity of tissue with fast changing urban lifestyle and elevation of living standards as a whole.

The Unit-3 was set up This first basic tissue paper manufacturing facility in Bangladesh later emerged as the pioneer in the
trade at the backdrop of rising demands of Tissue products thanks to changing lifestyle of urban to suburban consumers –
‘Bashundhara Tissue’ has become a trusted name with solid brand equity.
The unit, obsession towards Quality and Customer Satisfaction is reflected in understanding & fulfilment of expectations of
the consumers, big or small. This in turn has been a key factor in its growth and the advantage that the Company has been
able to build over the years in terms of a wide and loyal distribution network throughout Bangladesh.

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 OUR
MISSION
We Are Passionate
About Helping the World Excel In Education,
Communication, Business And Salutariness
By Offering Eco-Sustainable
Paper-Based Solutions.
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OUR
VALUES
Values form the acronym SPIRIT and it is the SPIRIT
in which we operate. The word SPIRIT stands for
SOUL, ESSENCE, LIFE and ATTITUDE. This the Spirit
that nourishes the SOUL of the people of
‘Bashundhara Paper’; it is the ATTITUDE and the
ESSENCE that gives LIFE to our winning culture.

S
Supportive
we value, respect, develop, reward, appreciate and empower
each other and help each other to grow to their true potential

P Passionate
we love our company and we love winning

I Integrity
we listen to our conscience and do the right thing all the time

R Responsible
we are responsible to all our stakeholders

I Ingenuity
we are always ahead through innovation and operational
excellence

T Togetherness
we are stronger when we work as one team
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 COMMITMENT
AND PRIORITY

In near future our Our globally accepted

Stakeholders will see eco-sustainable product
Bashundhara Paper as a range is designed and
company driven by a manufactured to add value
passionate team of to our Customers and as a
employees, operating in a result our local and
professional manner, international markets are
guided by powerful growing significantly.
mission, more specifically;

Our Team Member Our Suppliers rate us as

satisfaction ratings grows their best customers and
will be increase per year as give us preference as we
we help employees, our have policies that help
greatest resource, to live them be successful keep
their dreams in a happy our commitments and
work place governed by treat them as our business
supportive HR polices and partners.
process.
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 Our Financial Our Regulatory
Institutions authorities rate us one of
consider us one of the the best complaint
most reliable companies companies in the industry
in the industry and as we are transparent in
provide us favorable relation to laws governing
terms due to the our business and pay
professional manner we taxes, bills and wages in
conduct our business. an accurately and timely
manner.

Our Shareholders are proud Our Society sees us as one

about the professional of the most socially
manner in which the responsible companies as
organization operates, and we use eco-sustainable
are satisfied with the manufacturing, provide
tangible and non-tangible employment with good
return the company benefits, support education
provides. and improve salutary
practices.
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CODE OF
CONDUCTS
Fair governance practice is the key to inclusive and sustainable growth. We have clearly articulated in our organizational
code of conduct- guidelines. All the probable is as involving ethical dilemmas for the responsible and values - driven
management and control i.e. our code of conduct and ethical guidelines are as follows:

All our employees are to follow and comply with the

Compliance of Laws laws of the land and internal rules and regulations of
the Company and the Bashundhara Group as well.

The Company maintains business practices with

highest integrity and ensure accuracy of all
transactions. It shores up the privacy of the customers’
affairs. Employees of the company divulge the BPML’s
plans, methods, and activities considered by the
Integrity in Business Practice
employer to be proprietary and confidential'. Moreover,
employees are not expected to disclose such
information without proper authorization.

Our employees are expected to act honestly and with

due integrity at all times. They should act rightly
Integrity equitably when dealing with the stakeholders the
consumers and public as well as and other employees
of the Company.
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 POLICIES OF THE
COMPANY
This Company is aimed to provide products and services of high quality within the affordable range of our clientele.

Our quality policy is to -

▶ Achieve excellence by understanding and providing products as per
customers’ expectations.

▶ Follow consistent quality in our production and supply of products to meet

all regulatory requirements of our businesses.
Quality Policy
▶ Consider and follow due procedures to ensure compliance with all quality
standards.

▶ Develop all our human resources as asset of the Company through training
and skill development.

The is committed to run its operations by following environment friendly, ensuring continual improvement in the utilization
of resources and prevention of pollution or degradation of the environment.

In pursuit of this, the Company follows the policy to -

▶ Comply with all environmental related legislations and regulations of this

country.

Environmental ▶ Conserve mother nature by adopting environmentally safe production

processes.
Policy
▶ Ensure appropriate treatment of all effluents prior to discharge.

▶ Create and maintain awareness on environmental issues within the Company.

▶ Ensure waste management system runs through continuous upgradation

process.

The occupational health and safety for all related persons as well as employed by the BPML is of the utmost importance. As
per the provision of the common law, various codes and regulations of all employed persons. The BPML has introduced a full
code of conduct for its employees since long.

BPML has developed comprehensive policies and procedures in relation to

occupation health, safety, and welfare policies. The company –
Occupational
▶ Ensures, as far as reasonably practicable, the health, safety, and welfare of its
Health and employees and associated persons;
Safety Policy
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▶ Ensures, as far as reasonably practicable, that people who aren't our

employees (i.e. visitors, participants) are not exposed to health or safety risks.

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Specific duties require that BPML:

▶ Identify and reduce risks in the workplace;

▶ Provide and maintain safe systems at work place;
▶ Provide and maintain equipment and substances in a safe condition;
▶ Provide facilities in a safe and healthy condition for the welfare of employees;
▶ Provide adequate information, instruction, training and supervision;
▶ Maintain our environment and facilities in a safe condition;
▶ Maintain accurate and up-to-date records about the health of employees and volunteers including information about
accidents and incidents;
▶ Develop and implement policies and procedures about working in the human resources safely;
▶ Consult with employees about safety issues;
▶ Provide and share adequate information with the employees regarding health & safety issues;

BPML is committed to providing a safe and positive working environment for all its staff and acknowledging that the wellbe-
ing of staff is a prime factor in enabling them to perform their duties to the best of their abilities. In return, The BPML desires
that staff accept their responsibilities to work safely.

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 CORPORATE
DIRECTORY
Name of the Company : Bashundhara Paper Mills Limited
Legal Status of the Company : Public Limited Company (listed)
Date of Incorporation : 23 September, 1993
Financial Year : 30 June
Listing at Stock Exchange : DSE : June,2018 CSE : June,2018
Category in Stock Exchange : DSE : A : A
Capital of the Company : Authorized : 500 Cr. Paid-Up : 173.17 Cr.

Category Percentage of Shares

Composition of Ownership Board of Directors (incl.MD) 67.47%

As on 30 June 2020 Sponsor Shareholders (incl. pre-IPO Sponsors) 17.55%
Institutions 6.39%
General Public 8.59%
Total 100%

Name Person in Company

Mr. Ahmed Akbar Sobhan Chairman

Composition of Board
Mr. Md. Imrul Hassan Director
Mr. Md. Nazmul Alam Bhiyan Director
Mr. Khawaja Ahmedur Rahman Independent Director
Mr. Safwan Sobhan Managing Director

Name Position in Committee

Audit Committee Mr. Khawaja Ahmedur Rahman Chairman

Mr. Md. Imrul Hassan Member
Mr. M. Mazedul Islam Member Secretary

Name Position in Committee

Nomination & Mr. Khawaja Ahmedur Rahman Chairman

Remuneration Committee Mr. Md. Imrul Hassan Member
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Mr. M. Mazedul Islam Member Secretary

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 Name Position in Company

Compliance Committee Mr. Safwan Sobhan Managing Director

Mr. Mirja Mujahidul Islam Chief Financial Officer
Mr. M. Mazedul Islam Company Secretary
in Charge

Name of Members Position in Company Person in Company

Mr. Safwan Sobhan Managing Director Chairman

Ms. Yeasha Sobhan Director Vice-Chairman
Mr. Md. Mustafizur Rahman Deputy Managing Director Member
Mr. Md. Mozammel Hossain, Advisor (Technical) Member
Mr. Md. Aman Ullah Sr. ED (Construction) Member
Mr. Khairul Bashir Khan Head of Logistics Member
Executive Committee Mr. Md. Abul Hasan Head of Project, BPML-3 Member
Mr. S.M. Sorowar Head of Project, BPML-1 Member
Mr. Mirja Mujahidul Islam CFO Member
Mr. Nihar Ranjan Sarkar Head of Project, BPML-2 Member
Mr. Md. Delwar Hossain HOD (HR) Member
Mr. Md. Masudur Rahman HOD (Sales) Member
Mr. Mohammad Kamrul Hassan HOD (A&F) Member
Mr. Mohammad Eleas Hossain Head of Internal Audit & Control Member
Mr. Khijir Ahammed GM (Supply Chain) Member
Mr. Md. Bakiul Alam, GM (Banking) Member
Mr. Md. Mazedul Islam Company Secretary in charge Member Secretary

Statuary Auditors : M/S. Aziz Halim Khair Chowdhury

Chartered Accountants

Governance Compliance Auditors : M/S. Itrat Husain & Associates

Chartered Secretaries in Practices

Legal Adviser : M/S. Law Valley

Tax Consultants : M/S. Ahsraf & Associates

Registered Office: Head Office & Share Office:

Plot 125/A, Road-2, Bashundhara Industrial Headquaters-2
Block-A, Bashundhara R/A, Plot-56/A, Umme Kulsum Road, Block-C,
Dhaka-1229. Bashundhara R/A, Dhaka-1229.

Factory Premises:
Unit-1 Unit-2 Unit-3
Meghnaghat, Baranagar, Meghnaghat, Anurpura,
Sonargaon, Narayangonj. Sonargaon, Narayangonj. Gazaria, Munshigonj.
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 TIME LINE OF
BPML

Amalgamation with
Bashundhara Newsprint & Duplex Limited
and
Bashundhara Tissue Ltd.
Amalgamated with its sister
concerns-Bashundhara Newsprint & Duplex Ltd. Inception of exporting
and Bashundhara Tissue Ltd. to increase the 2010 The endeavor to expand
production efficiency which is one of our most
successful strategic business unit by now. 2009 its market beyond the
domestic border.

The commercial production

1997
Started its commercial production in order to meet
growing need for paper and paper products.

1993 Year of Incorporation

BPML was incorporated
in this year aiming to
fulfill the primary paper
demand in the country.
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 Listing with Stock
The Super Brand Award
2018 Exchanges
For offering consumers with significant emotional 2018 In this year BPML steeped in the
and/or physical advantages over its competitors,
capital market with DSE & CSE
accomplished this prestigious award.

2017

2015
Touch the capital of 100 Cr+
Reached its Paid-up Capital
Paper Exhibition Award
of 100 + Cr.
BPML received an award
from the World’s largest
2015 Paper exhibition in this
year

2015
FSC-COC Mix Certification
The Forest Stewardship
Council (FSC) certified BPML
with the praiseworthy Chain
of Custody certification.
The ISO Certification
The International Standardizing Organization
(ISO) certified as one of the standard paper
products of the time.

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LEADERSHIP

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 CHAIRMAN’S
MESSAGE

“ Good governance is not just a choice for us but

one of the building blocks of our sophisticated
management culture. It is one of our
fundamentals to comply with regulatory
“
obligations with the highest level of integrity
and transparency
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Dear Shareholders,

It is an immense pleasure for me to welcome you in our annual report for the year ended June, 2020 and I am proud of your
association with us.

Bashundhara Paper Mills Limited, at its heart, is dedicated to uphold the highest standard of corporate governance and
conduct business practices that agree with company’s framework of ethics and values.

It’s visionary board members and proactive management have effectively sought for rigorous accomplishment of policies
and practices which represents a culture of integrity and compliance that meets highest level of accountability and
disclosure. A clearly defined vision and policy statement have enabled us to act in favor of the interest of the stakeholders and
maintain highest level of governance. I wish to reiterate that good governance is not just a choice for us but one of our
building blocks of a sophisticated management culture.

Our management pays the highest attention and due diligence in regulatory and legal stances. It is one of our fundamentals
to comply with regulatory obligations with integrity and transparency. At the same time, we are paying our highest attention
to develop the quality of products with an affordable price for all segments of our customers. We take the responsibility to
engage ourselves to ensure the strategic planning in alignment with the customer’s needs and demand in competitive
market so that we can ensure the return on investment to our shareholders and achieve the ultimate organizational goal.

I would like to convey my gratitude towards our board members for their continuous support, guidance and insights over
the years. I would also like to special thanks to the regulatory agencies for their dependable support and cooperation. I also
acknowledge the enthusiasm, loyalty and energy of our employees and proud of the way they uphold our commitments,
high standards of ethics and integrity. Finally, a special thanks to our shareholders, consumers, distributors and business
partners for placing their faith and trust on us.

A robust stakeholder’s engagement is a competitive advantage to our growth. So, on behalf of the board, I would like to
thank all our stakeholders for their relentless support rendered to this company. We believe, together we will be a
contributory partner to build vibrant developed Bangladesh.

May Allah bless us all.

Sd/-
Ahmed Akbar Sobhan
Chairman
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 MANAGING DIRECTORS’
REVIEW

“ We strive to attain competitive edge and

maintain positive growth trajectory with our
resilient human capital and the trust of the
“
investors.
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Dear Shareholders,

Inspired by its group moto “For the People for the Country” the Bashundhara Paper Mills Limited has stepped in year three
in the capital market of Bangladesh. The company takes the pride of 27 years’ glorious track-record. In the meantime, BPML
has achieved immense appreciation as a compliant company from its stakeholders and regulatory agencies.

During the year under review, the production capacity was increased than previous year, and now we are working tirelessly
to ensure the quality of products and in addition some new products are under process to be launched at market
considering the demand. The company has contributed an industry highest of around BDT 72.15 Cr. to the national
exchequer in this year.

Financial year 2019-2020, by far, has been the hardest year for doing business locally and globally. Disruptions in global
economy induced by COVID-19 have affected almost all business more or less. Yet, it is a matter of satisfaction that BPML has
successfully maintained price competitivity even in the face of price hike of raw materials due to the disruptions in global
supply chain.

Educational institute closure, fall in demand of paper and paper product in the pick season have caused fall in our turnover
this year. But we have been able to control the declining rate of net profit after tax which was no more than 1% even in this
global crisis. We have ensured the uninterrupted production and timely delivery. On the other hand, our export has
increased around 70% comparing previous year even in this tumultuous period which was possible for tremendous efforts
and support of our resilient workforces and strategic decision of the board.

I would like to report, in this year, when cut-off of the employee has become a common practice worldwide, our company
has had its humanitarian and professional stance and did not furlough a single employee. During the period under review
the BPML has complied all the regulatory compliance including the financial reporting in every level to ensure the good
governance.

This unusual year was a year of learning for all of us. Considering the increase use of hygiene products, the company is
planning to invest more in the research and development to introduce new product to meet the market demand. Keeping
all these in mind, I wish to reiterate that we strive to attain competitive edge and maintain positive growth trajectory with our
resilient human capital and the trust of the investors.

We all in this company express our heartfelt gratitude to all the shareholders, stakeholders and consumers for their cordial
support, co-operation and patronage without which this company could not take a stand and come up to this position. And
we also look forward to getting extended cooperation in days to come.

Lastly, I would like to express my special note of gratitude to the board of directors of this company for their excellent
guidance, and all our business partners, associates, well-wishers and above all my colleague team members for their untiring
efforts, support and cooperation.

Thanking you all.

Sd/-
Safwan Sobhan
Managing Director
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BOARD OF
DIRECTORS
CHAIRMAN
Mr. Ahmed Akbar Sobhan

DIRECTORS
Md. Imrul Hassan

Mr. Md. Nazmul Alam Bhuiyan

Nominated by:
East West Property Development
(Pvt.) Ltd.

INDEPENDENT DIRECTOR
Mr. Khawaja Ahmedur Rahman

MANAGING DIRECTOR
Mr. Safwan Sobhan

COMPANY SECRETARY
(IN CHARGE)
M. Mazedul Islam
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 AHMED AKBAR SOBHAN
Chairman

Mr. Ahmed Akbar Sobhan is one of the Sponsor Directors and Chairman of this Company. He graduated in Business
Studies from the University of Dhaka. He founded Bashundhara Group back in the 80s, which is now a leading
industrial group of Bangladesh. Bashundhara Group (BG) now consisting of more than seven dozens of companies
comprising of moderate to heavy industrial and business units. His leadership, commitment and vision placed this
group in a formidable position and now BG emerged as one of the biggest industrial and commercial
conglomerates in Bangladesh.

He is the Director of East West Property Development (Pvt.) Ltd., Bashundhara LP Gas Ltd., Bashundhara Industrial
Complex Ltd., Bashundhara Food & Beverage Industries Ltd., East West Media Group Ltd., Bashundhara Multi Paper
Industries Ltd., Bashundhara Infrastructure Development Ltd., East West Special Economic Zone Ltd., Bashundhara
International Trade Center Limited, Bashundhara Cement Industries Ltd., Bashundhara Agricultural Products Ltd.,
Dhaka Multi Agricultural Complex Ltd., and many other companies of the group.

Mr. Sobhan was the President of the Board of many financial institutions, trade organizations and trade bodies
including Bangladesh Paper Mills Association, Bangladesh Land Developers Association, Bangladesh Cement
Manufacturers Association etc. He was member of general body of FBCCI, DCCI, and ICC and he also performed the
responsibility as the honorary Consul General of Ukraine in Bangladesh for a long.

Mr. Sobhan received many accolades at home and abroad, in recognition of his excellent business leadership,
performance and remarkable contributions in the socio-economic fields, international understanding, conflict
resolution and bringing peace, including President's Gold Medal in 1994, Kazi Nazrul Islam National Award in 1992,
Moulana Bhasani National Award in 1993, Arthakantha Business Award in 2001, USA Summit International Award in
2002 and Janata Bank Prime Customer Award in 2002 and Agrani Bank Best Client Award in 2010. He was a sports
man and now a sponsor of sports in the country. He is the owner of Bashundhara Kings, a leading Sports Club of
Bangladesh.

He is the Chairman of Board of Trustees of Bashundhara Foundation and the Chief Patron of Afroza Begum Welfare
Foundation. These Foundations have been working tirelessly for the betterment of the poor and unprivileged people
of this country by providing various supports including the interest free loan and running of technical School etc. He
is the core steward of the Bashundhara Group’s promise of "For the People for the Country".
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MD. IMRUL HASSAN
Director
Mr. Imrul Hassan is a director of Bashundhara Paper Mills Limited. He was born in Comilla on July 22, 1968 in a
recognized muslim family. He completed his Post Graduation from University of Dhaka. Mr. Hassan visited different
countries around the world as such India, Singapore, Thailand, Qatar, KSA. A successful business personality and
holding a fabulous track of experience, he is also a sports loving personality. Presently he has been holding the
position of President, Bashundhara Kings- the runner-up team Club football Tournament of Bangladesh. He is very
known person for his moral social work and activity. Mr. Hassan is keenly interested in development of sports and
socio-cultural activities and a successful businessman indeed.

He is the member of the Audit Committee of the Bashundhara Paper Mills Ltd. Mr. Hassan is also a trusty of the
Bashundhara Foundation.

MD. NAZMUL ALAM BHUIYAN

Director- Nominated by -East West Property Development (Pvt.) Ltd.

East West Property Development (Pvt.) Ltd. (EWPD) is the flagship company of Bashundhara Group, which was
founded back in 1987 to address the ever increasing housing demand of the citizens in Dhaka. EWPD has
successfully developed several integrated residential projects adjacent to the capital city and also taking up more
and more projects in the vicinity of the capital. Since the very first day of its inception, EWPD has been doing business
with the reputation and has earned a great deal of trust of people.

The first and prime projects which is popularly known as "Bashundhara" near the Baridhara Diplomatic Zone, Dhaka
has been developed on several hundred acres of land while the second project named " Savar Housing Project" has
been developed at Savar. The Third project named "River View" has been developed on three thousand acres of land
at Hasnabad, Keranigonj near the capital to provide well planned housing facilities for people of old Dhaka. The
fourth project named " Mouchak Housing Project" which is located at Gazipur nearer to Scout Jamburee and the
fifth Project named "River View Dokhina Project" which is located at Dakhin Keranigonj nearer to River View Project
and 4 km away from Dhaka Maowa highway. Some lucrative land projects are under way under same umbrella of
East West Property Development (Pvt.) Ltd.

EWPD has also been constructing apartments at different blocks of Baridhara and River View Projects for
contributing to mitigate the burgeoning housing need of city dwellers.

EWPD currently holding 101,050,575nos. of ordinary shares which is the 58.14% of the shares of the Bashundhara
Paper Mills L td. The EWPD has nominated one of its experienced Executive Director- Mr. Md. Nazmul Alam Bhuiyan,
to act as the Director in the board of Bashundhara Paper Mills Ltd. to protect its investment in Bashshundhara Paper
Mills Ltd. since 2015.

The nominated Director of this Company- Mr. Bhuiyan was born in Brammonbaria on December 25, 1971 in a
recognized muslim family. He is business graduation from University of Dhaka and visited various countries
including India, China, Hong Kong, Singapore, Thailand, Nepal, Malaysia, Macao, Egypt, UAE, USA, Switzerland,
France, Australia, Turkey, Qatar, South Korea. A successful personality and holding a fabulous track of experience to
compete the global race. He is very known person for his social work and activities.
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 KHAWAJA AHMEDUR RAHMAN
Independent Director
Mr. Khawaja Ahmedur Rahman (68) completed his Graduation in 1969 and started his career as a government officer.
After his retirement from the civil service, he started his business career by setting up various business ventures in
audio video & electronics sector in this country. He has been associated with many companies as sponsor directors
including Rose Valley Audio Video Ltd., Rumki Electronics Industries Ltd., Matsha & Krishi Khamar, Singha
Bangladesh Ltd. and Link-up International Ltd., etc. He has a vast knowledge of finance, business, corporate
management, industrial, trade and labour laws. He is the Managing Director of Link-up International Ltd. He is
associated with many socio-cultural and philanthropic organizations.

He has been in the Board of this Company since 2015 as an Independent Director and is the current Chairman, Audit
Committee of this Company. He is also the Chairman of the Remuneration and Nomination Committee of the Board
of Directors of this company.

SAFWAN SOBHAN
Managing Director
The Managing Director of the Bashundhara Paper Mills Ltd.- Mr. Safwan Sobhan is a dynamic and enterprising young
entrepreneur. He had his schooling in Oxfordshire in the UK and had his bachelor's degree in business
administration. He established various corporate houses at home and abroad and earned laurels for his leadership
qualities. He is also Director of Bashundhara LP Gas Ltd., City Multi Agricultural Company Ltd., Bashundhara
Horticulture Ltd., Bashundhara Infrastructure Development Company Ltd., Bashundhara Logistics Ltd.,
Bashundhara Airways Ltd., Bashundhara Amusement Park Ltd., Bashundhara Multi Paper Industries Ltd.,
Bashundhara Agricultural Products Ltd., Toggi Shipping & Logistics Ltd. Bashundhara Electricity Ltd., Bashundhara
Industrial Economic Zone Ltd. Bashundhara Multi Chemical Industries Ltd. Bashundhara Pharma API Ltd. , and
many other companies of Bashundhara Group. He is also a Trustee of Bashundhara Foundation.

Mr. Safwan is a keen sportsman and a sports loving personality. He Has been involved in various activities to promote
sports activities in this country and abroad. He is now the Managing Director of Toggi Sports Ltd. and the Chairman
of the Rangpur Riders, the Champion Cricket Team in the prestigious Bangladesh Premier League (BPL) - 2017. He is
the present President of Lt. Sheikh Jamal Dhanmondi Club Ltd. He is also one of the valued patron of the Army Golf
Club, Dhaka and a Member of the Dhaka Club Ltd. He is selected as the CIP of Bangladesh for his business activities
and contribution to national exchequer.

He was appointed in the Board as the Managing Director in 2015 before that he was a Director of this company. Since
his inclusion in the Board, he has been contributing actively in overall planning, strategy formulation, HRM,
decision-making process of this company and Bashundhara Group as well. His specialization in the time
management, branding of products and promotion, risk & crisis management brought a positive results and wide
acclamation.
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 INFORMATION
FOR
SHAREHOLDERS
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DIRECTORS’ REPORT TO
SHAREHOLDERS
Dear Respected Members,

By the grace of Almighty Allaha, I would like to take the pleasure on behalf of the Board of Directors of Bashundhara Paper Mills
Limited to welcome you all in the 27th Annual General Meeting of the company through the Digital Platform. It is a privilege
of us to present the 27th Annual Report of the company along with the Audited Financial Statements for the Financial Year
2019-2020, notes to the accounts as well as the Statutory Auditors' Report thereon, the Audit Committee’s Report, Corporate
Governance Statement, Compliance Report, and Nomination and Remuneration Committee’s Report to you for your kind
consideration, approval and adoption.

Outlook of Global Economy

The world economy is observing a challenging time than ever before. According to a projection of World Bank dated June
2020, the global economic output is to contract by 5.2% by the end of 2020. In their global economic prospects report, it has
been noticed that the advanced economies are expected to shrink by 7% in the current calendar year, while emerging market
economies will contract by 2.5%. The COVID-19 pandemic is perpetrating high and rising human costs worldwide. The health
crisis is having a severe impact on the economic activity and resulting the global economy to contract sharply by 3% in 2020
reports IMF. Global growth barely would begin to recover at around 1.3% next year as projected by the World Bank.

Outlook of Bangladesh Economy

Bangladesh is now one of the emerging economies of the world. The growth of this economy has a positive trend by a digit.
The last couple of years the growth rate was rooting around 6%-7.30%. This economy is 29th largest considering the its
purchasing ability. According to an economic outlook published recently by IMF the economy of Bangladesh is going to grow
by a positive 3.8% even in the face of COVID-19 during the year. It is the highest among all other South Asian countries. While
the most part of the world is experiencing a contraction in their economic growth, Bangladesh has kept up the positive trend
of growth and handling the impact of the virus on economy better than others. It is due to the uninterrupted flow of
remittance which helped the foreign reserve to reach a record high of around $40 billion as of October, 2020 coupled with its
agricultural production, which helped the economy rebound quickly from this pandemic period. In terms of Per Capita GDP,
Bangladesh is now even ahead in the sub-continent with an amount of $1887.

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(Source: World Economic Outlook, October, 2020, International Monitory Fund)

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Annual Report-2020
 Policy reforms, better governance, motivated human resource along with stable inflation condition and macro-economic
environment helped Bangladesh to become a role model of sustainable development for the least developed countries.
Bangladesh is now placed in the middle-income transitions and continuing its focus on easing infrastructure bottlenecks,
improving of livelihood, set up manufacturing units, reduce the import, increase the export and containing of cost of doing
business skills and resilient private sector have contributed to this positive growth trajectory. Bangladesh is expected to
graduate from least developed countries (LDC) list by 2024 and is now a role model for developing and least developed
economies.

Outlook of Global Paper Industry

As an important material the paper and the allied products taken a significant position worldwide. The growth of last few
decades was noticeable. It was due to increases in population, literacy rates, and quality. Due to its daily usages, the global
production of paper and cardboard stood at approximately 419.7 million MT in 2017 and expected to be 490 million MT by this

year of 2020. More than half of that production was attributable to packaging paper, while almost one third was attributable
to graphic paper. The world's three largest paper producing countries are China, the United States, and Japan.

Around 423.3 million MT of paper consumed globally in recent years, the world's paper consumption is roughly equal to the
amount of paper produced annually. China is the world's largest paper and paperboard consumer in the world, using more
than 113 million MT annually, followed by the US with a consumption rate of nearly 71 million MT. The world’s highest per capita
consumption of paper of any region, consuming 213 kilograms which is given context when compared to the world average
per capita consumption of paper of just 57 kilograms per year. Since paper can be classified as a renewable resource, recovery
is crucial within the paper industry. Paper, among many materials, has one of the highest recycling rates. In the United States,
nearly 53 million short tons of paper and paperboard were recovered in 2018, which is double in the percentage comparing
with 1990. The Environmental Paper Network is a global coalition of civil society organizations working together to achieve our
Global Paper Vision. The overall global paper industry is fragmented in consequence of rapid urbanization, improvements in
lifestyle of consumers, rise in disposable income and literacy rate. Some special factors - demographic condition, economic
condition and environmental regulations have a significant impact on the global paper industry dynamics. The increase in the
literacy rate, recycling, population, and economic growth are anticipated as the significant factors to boost the global paper
industry. Through innovation and energy diversification the paper industry in the developed countries has been turning away
from natural forest resources as its raw materials. The industry witnessed many up and downs over the last few decades due
to remarkable changing pattern in publications.

Although a number of countries with adoption of advanced technologies reduced paper consumption, it is expected that the
market for paper and paper board will continue to grow gradually. However, the global paper industry has also been facing
certain challenges posed by increased trend of automations, enhanced environmental regulations in the developed and
developing countries, volatility in raw materials availability and prices, energy inputs and increasing trend of trend of
transportation cost etc.

Outlook of Paper & Tissue Industry in Bangladesh

Papers and allied products -

The paper and pulp industry is one of the largest industries in the world. The industry dominated by North American, Northern
European and East Asian companies. Latin America and Australasia also have significant pulp and paper industries. Over the
next few years, it is expected that both India and China will become key players in the industry. On the other hand, Paper
industry in Bangladesh has been on a positive growth trajectory as the demand for paper rising on both the local and
Printed on Bashundhara Paper

international markets. Only a few years back, imported paper met a large portion of domestic demand, but now the market
share and the capacity of local manufacturers has grown significantly. Historical data suggests that Bangladesh began its first
paper production in the year of 1953 when Karnaphuli Paper Mills was established by government’s initiatives. Since then,

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private manufacturers have come forward and join the industry. The number of paper mills has now increased to 100 from
around 50 five years back, while 15 or 20 more units are under process to go into operation soon. These paper mills produce
different grades of paper including writing, printing, liner, media, simplex, duplex, board, newsprint, cigarette paper, packaging
products. BPML has continued to hold about 30% market share of the paper and paper products sector. Considering the
production and supply of the paper and paper products there is an opportunity for around 1,00,000 MT per year. By the year
2020, private sector paper mills have outperformed government mills who currently have a bare minimum of 3% market share.

Tissue paper and allied products -

The market size of tissue paper has more than doubled within a decade in Bangladesh courtesy of urbanization, growing per
capita income and increasing health consciousness among people. The yearly tissue production capacity of the country was
more than 84,000 tons in resent year, up from 30,000 tons in 2016-17. Bangladesh has not only become almost self-reliant in
the segment but is also exporting the product to more than 23 countries, including the UK, Australia, Bahrain, the UAE, China,
India and Bhutan. The export size around 1,238 tons yearly. Data from 2018 suggests that per capita tissue consumption is

about 4.1 kg per year in Bangladesh. The company being the industry leader, started commercial production of tissue and in
the year of 1997. It now has about 80% of market share in terms of tissue paper. As part of tissue paper, the hygiene product’s
consumption is growing up due to the increased health issues and health awareness.

Demand and Supply Gap

With the increased of uses of papers and paper board, literacy rate, change of lifestyles as well as awareness of hygiene
products the demand upward trend in is expected to reach its all-time high. Per capita income has also increased and so did
the expendable income. There is shortage in supply of paper and tissue paper globally besides China, one of the largest paper
producers have closed numbers of paper mills of their environment issue. Under this circumstances demand for paper
products are expected to increase locally and globally. It is projected that the demand for paper products (mainly writing paper
and hygiene products) will reach at about 10 lakh tone annually in the domestic market. Our nationwide awareness
development program through discussion, meeting and seminar has well driven people towards increased sense of
sanitation. As a result, there will be a surge in demand for our hygiene products. Currently we are operating at 80-85% of our
capacity and generating about 1,15,000 ton annually. Previously installed brand-new automated machineries added more than
30,000 tons yearly. Meanwhile our company added many facilities from time to time which we hope will enable us to take the
opportunity of supply in upcoming days.

17%

20% 52%

11%

Source: IPMA CARE Rating

This company has continued to export of its products, although in a lesser volume, but it is increasing significantly. India,
Middle East and Europe is the export market of this company. The company also searching out the new export market and
implementing the plan of further business expansion outside of the country.

Objective of the Company

The key objective of the company is managing business as to achieve the sustainability and profitability, increase the value of
Printed on Bashundhara Paper

the business for its sponsors and as well as the stakeholders. The Company’s aim is to continue as the market leader in this
particular sector of this country. The company also emphasize to develop and maintain the long-term customer relationship
by providing diversified products that enhance the customer’s prospects of success in their end markets. During its lively

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 journey more than two decades the company has established itself as a supplier of innovative products by maintaining best
quality of its products at an affordable price range. It has also engaged all its efforts to introduce more and more new products
and services to cater the requirements of the consumers.

Business Strategy of the Company

Bashundhara Paper Mills Limited is the pioneer in the paper production industries of the private sector in Bangladesh. The
company is a modern paper industry which is divided into several units, sections and process areas. The venture, since its
incorporation in the year 1993, has been producing quality papers and paper products having wide market demand and with
this it has been contributing to save huge amount of foreign currency by reducing dependence on imported paper products
for the country.

Strategic Goal of the Company

The leader of paper industry- BPML has designed a business model for sustainable growth and continues to develop its
presence in the markets, particularly in the paper, tissue and allied products. In its paper and tissue and allied businesses, the
company sees a huge opportunity to develop by leveraging the competencies in both mature and emerging markets.
Sustainable development is integral to the success of the business and its ability to create value. The Strategic Goal of the
Company is:

▶ To focus on developing markets that offer us growth opportunities;

▶ To invest in the exceptional people and high-quality, low-cost operations;

▶ To passion about performance, reliability and sustainability; and

▶ To work with the customers, value them and involve efforts to meet their needs.

There’s a saying that failing to effective plan is planning to fail. As competition increases and belts tighten in the paper sector
this Company in the production and business operation put emphasis on:
▶ Growth plans, which may include expanding the business, introducing new products, locations, and market segments;
▶ Product diversification;
▶ Changes in manufacturing methods;
▶ Supply chain revisions;
▶ Safety initiatives;
▶ Ways to reduce the cost of goods sold including efficiencies in manufacturing and reduction of water and utility
consumption;
▶ Asset consolidation/optimization;
▶ Asset preservation/maintenance plans including capital expenditures for meeting current regulations and maintaining
the future of existing assets;
▶ Continuous training of the human resources to match with modern technological upgrades.

Market Segmentation and Customer Segmentation

Market Segmentation-
Market segmentation is a process of dividing a heterogeneous market into relatively more homogenous segments based on
certain parameters like geographic, demographic, psychographic, and behavioral. It is the activity of dividing a broad
Printed on Bashundhara Paper

consumer or business market, normally consisting of existing and potential customers, into sub-groups of consumers known
as segments which based on some type of shared characteristics as well. Considering the nature of business, product and
customer the market has some segments.

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 Chart: Market Segmentation chart of BPML

Consumers Segmentation-
Customer segmentation is the process of dividing customers into groups based on common characteristics so companies can
market to each group effectively and appropriately. In business-to-business marketing, a company might segment customers
according to a wide range of factors, including- Industry, Products previously purchased from the company, Location. In
business-to-consumer marketing, companies often segment customers according to demographics that include: Age,
Gender, Location (urban, suburban, rural) income level and the Life style of the consumers.

Considering the diversification of demand for the products of this company like white writing paper, paper boards, art cards,
newsprints, toilet paper, facial tissue, kitchen towels, table napkin, and wrapping tissue including all hygiene products the
company segmented its customers pool so that It can pay more focus to meet the customers demand. The main segments of
the customers of BPML has defined as follows:

Chart: Customer Segmentation chart of BPML

BPML has set its strategy considering the mentioned segment to build up the customer relationship, effective brand
promotion, meet up the customer demand and maximize the sales growth of the company. The segment has kept up
growing gradually due to increase of population, development of health and hygiene awareness, changes in life styles and
rising of income levels of the country people. During the year the production and demand has also reported the growth rate
significantly.

Market Competition
Printed on Bashundhara Paper

Being an organization of modern world, most of the businesses and industries have to face competitions - both locally and
globally. Our country’s paper sector is of no exception. There are more than 100 modern paper mills out of which 41 mills are
running and are producing a huge quantity of paper and paper products in our local market. The scenario has been changed

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Annual Report-2020
 by just for few years. And since the establishment of small numbers of paper mills in the private sector, these industries started
to take lead and since then trying to make this country self-sufficient in production of paper and paper products to ensure the
domestic demand.

During late 1950s the paper industry of Bangladesh went into operation and more than 100 paper mills were established
meanwhile, and 41 local private paper mills were in operation producing more than 600,000 MT of paper and paper products
per year. The paper industry has proved as a potential sector in Bangladesh and may become one of the foreign currency
earners of this country.

In order to reduce dependency on imported items, the local producers of paper and paper board have to cut down their
production to some extent. Most of the local paper mills compelled to produce paper and paper board utilizing only half of
their capacities. By introducing modern technology, the paper producers adding values to this sector, and foreign buyers have
started coming to import paper products because of the good quality from Bangladesh. Recently, many factories in China and
some European countries were set close due to higher production costs and environmental issues, bringing up hopes for
Bangladesh. Our country can take advantages by entering into global market with more products.

This company views that if the matters are being reviewed regularly, challenges are faced on time and necessary steps are
taken. It has started to switch to new techniques to reduce production costs and produce more export quality paper products
maintaining international standards. The company already introduced advanced paper production technology to process
wastages of our factory and converting those into by-products and place those in the market commercially.

Marketing Environment
Marketing environment keeps focus in concentrating organizations resources so that it can lead to increased sales and
supremacy on a targeted market. The organizations marketing goals has to be identified and methods developed to achieve
the target within a time frame. Products like papers and allied product including hygiene products require a branding and
promotion to achieve trust of customers with an affordable price.

To succeed in branding, it is necessary to have a clear understanding of the requirements of the targeted clients. Incorporating
effective brand strategies so as to influence the hearts of customers is essential. Due to the highly competitive market a strong
brand name is important. It is necessary to spend time investing in researching, defining, and building brand name. Paper
consumers of our country can be segmented by location, purchasing approaches, behaviors, seasonal variation, volume and
frequency, personal characteristics, brand preferences etc. Paper customer’s characteristics could also be segmented into
price sensitive customers, quality conscious customers and quality and price tolerance customers.

BPML has operated its market promotional programs through campaigns aimed for the consumers, users and sellers of
various levels and continuous innovative activities. The promotional activities of this company are carried out through wide
range of promotional activities for the target customers and it has been carried out by a team of creative and energetic
personnel who launch frequent programs including advertising, personal selling, sales promotion, direct marketing, training
and knowledge sharing, public relations, etc.

Raw Materials Supply & Production

The major raw materials that we use are hard wood pulp, soft wood pulp, hard and soft wood kraft pulp, waste papers and
various agricultural residue. Singapore, India, Indonesia, Canada, Sweden, Oman, Malaysia, China, South Korea, Brazil, Finland,
USA and Philippines are leading in the market for raw materials suppliers in the paper industry.

The paper consumption during the last 20th century and current 21st century have been increased to many folds which is
faster than the global population growth during same period. But the resources of nature are not the same in growth rate.
Since in our country there is a lack of natural forest resources required for paper production, we, as a paper producing country,
are heavily dependent on import of raw materials. For which we are facing a challenge in this industry.
Printed on Bashundhara Paper

Increased price of raw materials hinders in our way to grab a bigger market share. It is to state that per metric ton price of
softwood pulp is around $1,000 which is the double comparing last few years. Thus, it is hard for the local manufacturer to

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Annual Report-2020
adjust with this increased cost of raw materials which hits the price of finished goods negatively. Then comes other
considering factors i.e. the necessary resources like power and water. As we run with modern machineries, an uninterrupted
power supply is must in order to keep flow of production. Transportation cost ranging from import of raw materials to
exporting at various destinations, plays a vital role in this industry’s performance.

At Bashundhara Paper Mills, we use cargo-vessel, chemical tankers, pick-ups, covered van for delivery of raw materials to the
factory. With a smooth global supply chain, stability in raw materials’ price and skilled manpower, we hope we will have a more
competitive position in the domestic and global market for paper.

During under review the company has had addressed some adversity due to global pandemic, global lock down the
transportation of raw materials was sharply affected and in addition of unviability of raw materials and price hike were another
factor which has a negative reflection in our supply chain and sales revenue as well.

Production - Supply management

The production supply management refers to the act of identifying, acquiring, and managing resources and suppliers that are
essential to the operations of a company. This management of BPML concerned about the process of procurement supply
management includes the purchase of physical goods, information, services, and any other necessary resources that enable a
company to continue operating and growing.
The manufacturing process of paper and paper products is a cross-functional approach includes managing of the movement
of raw materials, processing of materials into finished goods, and the movement of finished goods towards the end users
effectively, timely and efficiently. Because the supply management is an integral part of most businesses and essential to the
company success and customer satisfaction. Considering the nature of the business the management of BPML has
emphasized the following issues in these segments which includes--
▶ Identifying, sourcing, negotiating, and procuring a service or good that is essential to a company's ongoing operations
according to the wishes of the organization's leaders and supervisors;
▶ Formulating a strategy for developing and maintaining relationships with suppliers—and then executing on it as well as
holding suppliers accountable;
▶ Utilizing technology and procedures that facilitate the procurement process;
▶ Considering the theories of supply and demand and what influence they have on supply management.

Seasonality
Every product has a seasonality considering the products supply, demand, utility, necessity and purchasing ability of the
customers. It is observed that the volume of consumption of the products defers from time to time round the year and the
products of BPML are no exception considering seasonality. The products of the BPML are segmented in five broad segments:

Health & Hygiene

Paper Products Tissue Products Sacks Bags Insecticides
Products

Chart: Products segments of BPML

For the core product of the BPML i.e. Paper product has the seasonal variation on demand basis in the market our country. In
different period of a year demand for paper products, specially the bulk white paper, face sharp variations. The demand
reaches to the peak, for bulk white papers, during the period of September to February months. It is the time when text books
are printed before the advent of the education year at the national level and distributed among the students. The other one in
February when the national book fair of this country takes place where huge crowds, irrespective of their nationalities ages,
gender, class and castes, pay visits. It is being regarded as the peak time for the printing and publication houses of this country
Printed on Bashundhara Paper

as well. After this pick hour from the March to June period the demand for bulk white paper reduces to the very low position.
This period is considered as the off season for the bulk papers. And during July-August period the demand for the bulk papers
reaches to its lowest level as it’s the dull season.

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Annual Report-2020
 Seasonal Product consumption table of BPML-

Sl Quarterly Consumption
Segments of Products
No. 1 Quarter
st
2nd
Quarter 3rd Quarter 4th Quarter
1. Paper Products Low High High Average/Low
2. Tissue Products Good High High Average/Low
3. Health & Hygiene Products Average/Low Good/High High/Average Average
4. Sacks Bags Average Average Average Average
5. Insecticides (mosquito coils) Average Average Average Average

The seasonal variations in tissue paper products segment relatively lower than other paper products. The consumer behaviors
are the prime considering factor here. The dull season in the tissue paper products segment being observed during Ramadan,
when the majority of the people of this country use to perform fasting. After the Ramadan rituals are over then and during the
festivals the demand for tissue paper products take its position in the market. The Rainy season of this country being
considered as the off season for tissue paper products segment. The demand for tissue paper products remains almost static
during the remaining part of a year.

Health & Hygiene Products segment also faces the seasonal challenges. It is observed that the demand for hygiene products
touch its peak during winter season in this country. After the recession of winter, the demand for health and hygiene products
experiences the decreasing trend. By the month of March, it reduces to the lower level. It is the period which has been
considered as the off season for health and hygiene products segment of paper sector of our country. Consumer behaviors is
also the prime considering factor here. Although the health and hygiene products segment have the utility round the year
even then the remaining part of a year is considered its dull season.

The other product segment Sacks bags are consumed by the industrial customers, so the segment has no specific pick and
dull season.

Insecticides (mosquito coils) segment is the last and new segment than others segment which is a by-product of the company
and has average consumption record by the customer round the year.

Considering the seasonality adversity, consumer behaviors and other significant observations the management of this
company has taken some strategic plan and researching to introduce the season-oriented products for its consumers and to
ensure the positive trend in the revenue in each quarter of the year.

Transportation
With the encasement of the production capacity and to ensure availability the product from door to door of its consumer, the
company emphasis to improve its transportation activities. For the nature of the business the transporting has a significant
effect in the operational activities. Not only the product distribution channel but also the row material in bulk amount. The
industry depends on the imported raw material. The most of the import of raw materials is made through waterways as the
paper producers have to import raw materials in bulk quantity by ships. In view of this the cost of transportation is considered
as very vital in paper sector.

BPML pays special attention on cost effective raw materials sourcing and paper and paper products distribution channels
because this cost has direct intervention on the product pricing.
Printed on Bashundhara Paper

The company has been successful to set up a strong distribution channels and supply network for its own. For raw materials
and finished products carrying work and supplying ships and cargo-vessels are used, most of them owned by this company.
This company for its delivery of raw materials to the factory and supply of finished products - paper and paper products from

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Annual Report-2020
the factory all over in the country uses cargo-vessel, chemical tankers, pick-ups, refrigerated vans, trucks, covered vans of
different capacities.

The FY 2019-2020 has a significant effect in the transportation costs in both the road and waterways for which this company
incurred additional costs for transportation of both raw materials and finished paper and paper products. Having all
mentioned factors, the fuel costs, water transportation costs and maintenance of the vehicles were increased significantly and
inflation of the country also raised and delays in unloading of raw materials in the ports and the global pandemic crisis also
had negative effects on the cost of transportation of this company.

Environment Protection
Environmental protection refers to any measure that is taken to conserve, maintain or preserve the state of the environment.
Pollution of the environment going to be a global crisis in near future. To protect the environment is a moral obligation for
future generation and mankind as well. Due to continuous uses of plastic, chemicals, conversion of natural resource
discharging the carbon and increasing the global warmness has been destroying the ecosystem of the world. The global
community in this regard is also highly concerned and taken several measures to protect the environment. The management
of BPML is very much concerned about the protection of the environment and conservation as well.

The BPML has designed its production process and adopt modern policies to ensure a sustainable environment and the
policies refers as follows:
▶ Ensure sustainable and equitable use of resources without degrading the environment;
▶ Consider health or safety risks in production and business operation and ensure adequate measures to those risks;
▶ Prevent and control degradation of land, water, vegetation and air in its operational areas;
▶ Improve condition and productivity of in the factory and office premises;
▶ Set up the water-treatment plant using by modern technology;
▶ Using less chemicals and recycles the production wastage to create the by-products;
▶ Raise awareness for tree plantation and understanding of the link between environment and development.

Risk Factors and Management Perceptions

Risk is ubiquitous in all areas of business and the risk management is considered must to do, in the managing of the company.
Although this sector has large span of potentiality but has some risk factors involved with the industries. In every business there
are uncertainties where some of the possibilities involve price fluctuations, currency fluctuations, inflation, economic recession,
loss, catastrophe, other undesirable outcome, absence of complete certainty, existence of more than one possibility. In spite of
a noticeable supply & demand opportunity in paper and allied products although there has also some risk factors-

Interest & Exchange

Technological Risk Rate Risk Liquidity Risk

Risk Factors

Industry Risk Distribution Risk

Raw Material Risk

Chart: Core risk factors of BPML

Management of BPML has addressed the issue of interest and exchange rate risk and has taken active measure to keep the
gap between interest sensitive assets and interest sensitive liabilities at a minimum to ensure that changes in interest rates. To
manage liquidity (cash and cash equivalents) to meet its liabilities when due, under both normal and stressed conditions,
without incurring unacceptable losses and the company prepare its cash flow forecast on time line of payment of the financial
obligation and accordingly arrange for sufficient liquidity/fund to make the expected payment within due date.
Printed on Bashundhara Paper

To minimise industry risk diversity of products, introduce new product and quality are the prime tools of BPML. The company
always emphasize on the market needs and demand for its customer. BY prescribed guidelines and terms and conditions to
its Dealers and Distributors which minimize distribution risk.

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 To ensure proper supply of imported raw materials for large volume of production facilities the Company has to keep huge
inventory putting pressure on liquidity position to minimize the raw material management risk The Management of the
Company has regularly upgraded its technology and factory set up during the last five years conducted to smooth operation
of the factory.

However, this Company has put its special emphasis on the risk management matters. The system has been designed to face
the challenges of the risk factors involved in this sector. The company has designed its operational plan covering the risk
management by identifying and characterizing the areas of risks and threats at the very early stages and to set business
strategies, take adequate and measures on proper time either to remove, or limit those as far as possible.

Production and Sales

The paper industry is the competitive market then others in this country, the numbers of modern manufacturing units are
available in the market with their quality product. Moreover, imported products price and our domestic produced product has
long span of difference. Considering the demand and supply as well as the price of product has an impact on the final
consumer of this product. At present, the paper industry of this country is no longer limited to production of writing and
printing papers. On production and supply of paper and paper products. There are several factors that have impact like - rate
of inflation, fiscal policies and financing opportunities etc. which affect the buying power of the customers and thus result in
change of supply situation of paper and paper products. This company has carefully designed its production and business
strategy with the option of midterm evaluations on regular basis.

BPML has arranged series of competitions, seminars, idea sharing meetings, conferences, and assemblies of the dealers,
students, teachers, professionals and the consumers round the year. To ensure the availability of products, the company create
multi option of distribution channels to increase sales revenue.

BPML BPML BPML BPML BPML

Distributor

Wholesaler Distributor Dealer

Retailers Retailers Retailer Retailer

Industrial Printers & Individual Individual Other

Customer Publishers Customer Customer Customer

Chart: Distribution chart of BPML

In spite of challenge of Covid-19, the product line of this company was on full swing except the lock-down period and able to
produce 97,308 MT finished goods of papers, sack, sludge, board & tissue papers and in the health and hygiene segment the
production was around 6,837 MT during the period under review which was the 61% of production capacity.
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During the year under review the scope had contracted due to global pandemic of Covid-19 in pick season of sales. In
comparison to the previous year, during the year under review the production of the paper and papers products decreased
due to effect of global pandemic of Covid-19. So, the sales revenue also has influenced by this crisis.

1% 1%

8%
14%

26% 58%

92%

In FY 2019-2020, the company was able to earn the net revenue by sale of paper and paper products amounting to BDT 854.44
Cr. which was BDT 1,103.91 Cr. in the FY 2018-2019 which was a sharp fall by 22.59% from previous year. But changing the strategy
the company was able to control the cost of production and over had cost significantly.

We also have engaged our expert team to monitor the emergence of new competitions and risk issues. Although the global
crisis the export of this company increased by 70% than previous year and the export was 8% considering domestic and foreign
revenue.

Performance of the Company

Motivated by its mission and value statements the company has been paying its highest concentration to moving forward and
achieving its ultimate goal – Maximize the Profit and Wealth creation. In this pursuit, the company regularly reviews its periodic
business performances, market positioning, customer base, and adjust its marketing strategy at various stages and even
revised the annual business plan.

The Covid-19 pandemic has thus far spread to 208 countries and regions of the world, significantly affecting the global
economy. This pandemic has caused disruptions to global trade, business, and education. Bangladesh is equally affected by
this contagion. The economic consequences of the pandemic outbreak are tough to handle as the entire of the global supply
chain has been interrupted due to worldwide long-time lockdown, and transportation shutdown as well. During the year
under reviewed the company has been facing this challenge with previous all.

Due to these factors during the year, financial performance of this company has decreased by all indicators during the year. A
comparative change with the previous year in the financial performance appended as follows –

Sl 2019-2020 2018-2019
Particulars
No. BDT in Cr. % Change BDT in Cr. % Change
1. Net Revenue 854.44 (22.59%) 1,103.91 2.10
2. Cost of Goods Sold 666.66 (25.50%) 894.03 0.45%
3. Gross Profit 187.75 (10.53%) 209.87 9.27%
4. Net Profit after Tax 28.58 (1.03%) 29.18 (57.92%)

Although the production costs had increased to a significant extent due to the pandemic condition, the company had
engaged it’s all effort to protect the interest of its shareholder. Compromising with many essential overhead expenses the
company has been able to limit decreased rate of net profit within 1.03% during the year.
Printed on Bashundhara Paper

The management of the company has undertaken various strategic drives, engaged untiring efforts, and tried extensively to
negotiate the risks and challenges as far as possible. However, by careful handling of all the issues, this company will be able to
earn a handsome amount of net profit in the forthcoming years.

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 Dividend Policy
The company always considers the interests of its shareholders before all other issues and it has continued to share its profits
and gains among the real owners of the company. The company emphasize maintaining all the provisions, guidelines and
standard practices in the industry to declare its divided.

The Board of Directors of this company has been pleased to recommend for the payment of 10% Cash Dividend for all the
ordinary/general shareholders other than the sponsor shareholders/directors/Pre-IPO placement shareholders of this
company for the period ended on 30 June 2020.

The members other than the sponsor shareholders/directors/Pre-IPO placement shareholders (as per Note no. 15.02.1 of the
Financial Statement FY 2019-2020) whose names appeared in the Members Register of this company on the Record Date on
30/11/2020 will be entitled for the Cash Dividend.

Contribution to the National Exchequer

The company has been recognized by the National Board of Revenue (NBR) as one of the largest corporate taxpayers in this
sector for couple of years. The company has generated direct and indirect employment for a significant number of people over
the years. During the year the company had 3,954nos. permanent full-time employees, in addition to the many people who are
directly and indirectly dependent on this company for their livelihoods, working for the distributors, retailers, suppliers,
vendors, contractors and other business partners. With the payment of taxes and the investment in the production capacity,
BPML is making a significant contribution to the country’s growth and development.

In the FY 2019-2020, this company has contributed an amount of BDT BDT 72.15 crore in the form of Income Tax, Customs
Duties, Supplementary Duty, Regulatory Duty and VAT. The contribution to the national exchequer was equivalent to 8.44% of
the total sales revenue of the company during the period under review. Where in the Financial Year 2018-209 the contributions
of this company to the national exchequer was BDT 61.17 crore which was 5.54% of the total sales of the same period.

Related Party Transactions

The company in its business efforts and practices put special care to compliances to laws, protection and preservation of
interests of the stakeholders by following the code of conduct for ethical behavior, accountability and transparency. The
information on the related party transactions has been disclosed in the note no. 13 of the financial statement hereinafter in
this report.

Shareholders
The Shareholders are the real owners of the company and play vital role in the financing, operations, governance and control
aspects of a company. The Shareholders play both direct and indirect roles in a company's operational activities. The first and
foremost consideration of the Board of the company was the protection and value addition to the interests of the valued
shareholders.
Printed on Bashundhara Paper

The total numbers of shareholders of this company were 13,315 nos. as on the Record Date of the company on 30/11/2020. The
issued, subscribed and paid up share capital of the company is BDT 1,737,914,410/- which has been the accumulated totals by
the Sponsors, Directors, Institutional and General Public.

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Minority Shareholders’ Interest
The Board of Directors is very much concerned about the interest of the shareholders including the minority shareholders of
this Company. The board has dedicated all its efforts to ensure fair and equal treatment to every shareholder including the
minority shareholders. In order to protect the interest of minority shareholders, the company undertook various measures to
establish accountability and transparency and also established a practice to serve small investors and minority shareholders
promptly. The company communicated all its strategic information as required in its operation under the regulatory directives
without any delay and tried to serve the minority shareholders as and when they are required so from time to time. With a view
to serving the minority shareholders better, the Company disseminates all strategic decision through most popular and
well-accessed channels/options to make them aware of the developments as well as activities of this Company.

Board of Directors
In composition of the board, the company always emphasize on the capability, qualification and efficiency of each director
individually since incorporation with the compliance to protect interest of its stakeholders. And take the pleasure to inform you
that -

▶ The Chairman and the Managing Director of this company are two individual persons. These positions were filled in by
individual persons since the incorporation of this company. And the practice was also complied with during the FY
2019-2020. The resume of the Chairman and the Managing Director are appended at the beginning of this annual report.

▶ The Board of Directors of this company is fairly independent and they play role, discharge their duties and
responsibilities without any interferences. The Terms of References of the Directors clearly defined. During the year
under review the members of the Board of Directors of this company had discharged their duties and
responsibilities independently and no matter of interference was occurred.

▶ Composition and Roles & Responsibilities of the Board:

The Board of Directors' key of BPML is fairly independent and responsibility is to ensure the company's affairs and
operation on right direction by collective decision making and direction, whilst meeting the appropriate interests of its
shareholders and stakeholders. In addition to business and financial issues, boards of directors deals with challenges
and issues relating to business affairs, compliance and governance issues. It oversees the management of the Company,
making appropriate decisions on timely basis, taking other necessary actions and optimizing long-term value on
stockholders' behalf. The Board of the company had laid down the terms of reference for its members and compliance
thereto.

Composition of Board-
It has monitored the overall activities of the top management team of the Company including their making of appropriate
operational decisions at proper time, taking necessary actions and optimizing long-term value. The Board of this company is
consisted of 05 (five) nos. of directors, out of which 03 (three) are from the part of Sponsor Shareholders/Members elected by
the members of the company in the general meetings, one Independent Director as compliance of CG Code- 2018 and the
Managing Director of the company as the executive director on the board.

20%

20%
60%
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 Roles & Responsibility of the Directors-
▶ Providing entrepreneurial leadership;
▶ Setting of goals and objectives for the company;
▶ Setting company’s values and standards;
▶ Ensuring human and financial resources be available to achieve objectives;
▶ Constructive challenges mitigation and help in developing proposals on business strategy;
▶ Reviewing management team’s performance and monitoring of performance reports;
▶ Satisfying themselves on integrity of financial information and reporting; controls and risk management systems and
measures;
▶ Determining appropriate levels of remuneration and compensation issues;
▶ Appointment and removal of executive directors, and succession planning.
▶ Ensuring that obligations to shareholders and other stakeholders are understood and met.

The resume of the present Board of Directors is appended hereinbefore in this Annual Report.

Directors' Board Meeting Attendance

In accordance with relevant rules and procedures and Bangladesh Secretarial Standards (BSS) the Members of the board of
this company has conducted its meetings and contained in its governing documents.

The common practice of the company to take collective decisions in the board meetings. As a body, the directors deal with the
affairs of the company those needed its attention and guidance. The meetings of the Board of Directors of this Company were
held at regular intervals so that the directors can discharge their responsibilities, to have control over the company's overall
operation, strategy and policy, and to monitor the exercise of any delegated authority, and so that individual directors can
report on their particular areas of responsibility.

The Board of Directors of BPML has conducted its meetings in accordance with the rules, regulations and procedures
contained in its governing documents. The Board has taken collective decisions in its meetings likewise before. As a body, the
directors deal with the affairs of the company those needed its attention. The meetings of the Board of Directors of this
Company were held at regular intervals in accordance with the law as well as the need of this company.

During the period under review Nine Meetings of the Board of Directors were held. The attendance status of the Directors of
the company during the period under review were as follows:

Sl.no. Name of the Directors Position in Company No of meetings and

attendance

1. Mr. Ahmed Akbar Sobhan Chairman 09/09

2. Mr. Md. Imrul Hasan Director 09/08

3. Mr. Md. Nazmul Alam Bhuiyan Nominated Director 09/08

4. Mr. Khawaja Ahmedur Rahman Independent Director 09/06

5. Mr. Safwan Sobhan Managing Director 09/09

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Directors' Shareholding Status
The shareholdings position of the Directors of the company as on 30 June 2020 were as follows:

Sl.no. Name of the Directors Position in Company No of Shares Holding in (%)

1. Mr. Ahmed Akbar Sobhan Chairman 40,00,000 2.30%

2. Mr. Md. Imrul Hasan Director 40,02,000 2.31%

3. Mr. Md. Nazmul Alam Bhuiyan Nominated Director 10,10,50,575 58.14%

4. Mr. Khawaja Ahmedur Rahman Independent Director nil nil

5. Mr. Safwan Sobhan Managing Director 82,03,000 4.72%

Directors' Remuneration
During the period under review, the member of Board of Directors of the company including the Independent Directors did
not receive any remuneration from the company likewise previously.

Appointment & Retirement of Directors

To ensure the compliance of the Companies act 1994, the Board of Directors’ of this company is concerned to guide and direct
the company's affairs collectively and to protect the interests of the stakeholders as well. During the year under review, in
addition to dealing with the business and financial issues, the Board of this company, dealt with various challenges,
compliances, governance, social responsibility and corporate ethical issues, etc. In accordance with the provisions of the Article
no. 100 of the Articles of Association of the Company the following 02 (two) of the Directors of this company are retiring by
rotation in this 27th Annual General Meeting and all of them are eligible under the Article no. 101 of the Articles of Association
for re-appointment as the Directors of the company in this Annual General Meeting:

▶ Mr. Md. Imrul Hassan; and

▶ Mr. Md. Nazmul Alam Bhuiyan nominated by - East West Property Development (Pvt.) Ltd.

The Board of Directors of this company has also recommended for the reelection of the retiring Directors and placed the
matter before shareholders in this 27th General Meeting for their consent. A brief resume of the above-mentioned Directors
has been appended along with the other directors’ resume hereinbefore this Report.

Independent Directors
In pursuance to the directives of the Bangladesh Securities and Exchange Commission's Corporate Governance Code as
issued under the Notification no. BSEC/CMRRCD/2006-158/207/Admin/80 dated 03/06/2018 every listed company has to
appoint the Independent Directors, to be 1/5th of the Board of Directors size, as the members of the Board of Directors.

The Independent Directors so appointed should not have material or pecuniary relationship with the appointing company or
related persons. It is prescribed in the said Notification that the independent directors shall be knowledgeable with integrity
to ensure compliance with financial, regulatory and corporate laws and can make significant and meaningful contributions to
business operations and shall have at least 12 (twelve) years of corporate management or professional experiences. The
company had appointed two experienced corporate leaders having proven professional experiences as its independent
directors under the directives of the Corporate Governance Code of BSEC previously. After the 26th General Meeting Mr. Zeaur
Rahman, Independent Director of the company has expressed his intention to resign from the position of independent
director for his personal ground and the Board of Directors had accepted the resignation. During the period under review Mr.
Khawaja Ahmedur Rahman continued as the Independent Director of this company under the BSEC’s Corporate Governance
Code.

The resume of the present Independent Director is appended hereinbefore in this Report.
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 Internal Control System
The company has an effective internal control system to reach its destination. The system assists to take strategic decision
through an authentic financial and managerial reporting. The systems ensured the overall financial checking with the
compliance of the polices and guidelines and related laws and regulations as well. The system plays vital role to reduce the
business risk. The Board of Directors has delegated the responsibility of overall supervision of internal control system some
different Committee of the Board and Management. The core committees which are ensures the internal control mentioned
below:

Nomination &
Audit Committee Compliance Committee
Remuneration Committee

Audit Committee
In accordance with the directives of the Bangladesh Securities and Exchange Commission regarding the Corporate
Governance Code by the its Notification no. BSEC/CMRRCD/2006-158/207/Admin/80 dated 03/06/2018 the Board of Directors
of the company had reconstituted an Audit Committee with specific Terms of Reference.

This committee is responsible to provide oversight of the financial reporting process, the audit process, the system of internal
controls and compliance with laws and regulations. The audit committee can expect to review significant accounting and
reporting issues and recent professional and regulatory pronouncements to understand the potential impact on financial
statements. An understanding of how management develops internal interim financial information is necessary to assess
whether reports are complete and accurate. The committee reviews the results of the audit with management and external
auditors, including matters required to be communicated to the committee under generally accepted auditing standards.

The Audit Committee comprised by Mr. Khawaja Ahmedur Rahman, Independent Directors and Mr. Md. Imrul Hassan,
Director of the company during the period under review as the committee Members. The Board designated Mr. Khawaja
Ahmedur Rahman as the Chairman of the committee and Mr. M. Naseemul Hye FCS, Company Secretary as the Member
Secretary of the committee and by the order of the Board Mr. M. Mazedul Islam performing the responsibility as the Company
Secretary in charge and as the Member Secretary of this committee from the fourth quarter of the FY 2019-2020.

The Members of this committee of this Company have adequate experience and knowledge on business and trade, corporate
laws, financially literacy, ability to analyze and interpret the financial statements for effective discharging of the duties and
responsibilities as the members of the Audit Committee.

The core responsibilities of the audit committee of this company include:

▶ To monitor accounting policies and principles.
▶ To oversee financial reporting and disclosure process.
▶ To oversight of regulatory compliance matters;
▶ To monitor internal control system;
▶ To oversee performance of internal audit function;
▶ To oversee hiring, performance and independence of the external auditors;
▶ To discuss risk management policies and practices with management

The report of the Audit Committee is appended herewith this Annual Report.

Nomination & Remuneration Committee

In compliance with the Notification no. BSEC/CMRRCD/2006-158/207/Admin/80 dated 03/06/2018 regarding the Corporate
Printed on Bashundhara Paper

Governance Code of Bangladesh Securities and Exchange Commission, BPML has re-constituted the Nomination &
Remuneration Committee during the period under reviewed. The Nomination & Remuneration Committee’s Terms of
Reference has been determined by the board as follows:

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Annual Report-2020
The committee consists with the three members- Mr. Khawaja Ahmedur Rahman, Independent Director, Mr. Md. Nazmul
Alam Bhuiyan, Nominated Director of East West Property Development (Pvt.) Ltd., and Mr. M. Naseemul Hye FCS, Company
Secretary. The Board of Directors has designated Mr. Khawaja Ahmedur Rahman as the Chairman of the committee and Mr.
M. Naseemul Hye FCS, Company Secretary as the Member Secretary and by the order of the board Mr. M. Mazedul Islam
performing the responsibility as the Company Secretary in charge and act as Member Secretary of the committee from the
fourth quarter of the FY 2019-2020.

The core responsibilities of the Nomination & Remuneration Committee of this company included:
▶ To devise policy for Board’s diversity;
▶ To be independent, responsible and accountable;
▶ To set the qualifications and attributes for appointment, remuneration of suitable persons for appointment as directors
and top-level executives;
▶ To identify suitable qualified persons as directors and top-level executives in accordance with the devised policy and
recommend for their remunerations;
▶ To formulate the criteria for evaluation of the performance of Independent Directors, Non-Executive Directors and
Board’s function.
▶ To assess the need for employees and determination of selection criteria as well as transfers/ replacements/promotions
matters;
▶ To develop and recommend the human resources and training policies and review of those annually.

The report of the Nomination & Remuneration Committee is appended herewith this Report.

Compliance Committee
With the other different board committee of this company, the Board of Director has introduced a committee to play a role in
the Internal Control System. The composition of the committee by the top management executives of the company with the
knowledge of finance, corporate laws and compliance related matters both internal and external affairs.

The committee consists with the three members - Mr. Safwan Sobhan, Managing Director Mr. Mirja Mujahidul Islam, Chief
Finance Officer, and Mr. M. Mazedul Islam, Company Secretary in charge. The Board of Directors has designated Mr. Safwan
Sobhan, as the Chairman of the committee and Mr. M. Mazedul Islam, Company Secretary in charge as the Member Secretary
of the committee.

The core responsibilities of the Compliance Committee of this company included:

▶ To comply all the compliance in the financial statements;
▶ To meet the regulatory requirements;
▶ To assist in the internal control process;
▶ To make and develop policy to meet the regulatory obligations;
▶ To review and analyze the overall compliance process of the company;
▶ To protect the interest of the shareholder;
▶ To ensure the Compliance of the Corporate Governance Code.

Reporting of Financial Statements

We are pleased to report you that-
▶ The Financial Statements of the BPML has been prepared under true and fair view basis.
▶ The Financial Statements (FS) of the BPML has duly prepared in accordance with the applicable International Financial
Reporting Standards (IFRS) in addition to comply the directives of the concerned regulatory bodies and along with
notes to the statements and disclosure thereon.
▶ The required books of accounts properly maintained and recorded by the company.
▶ Considering the nature of business, the appropriate accounting policies have been consistently applied in preparation
Printed on Bashundhara Paper

of the financial statements on priority basis.

▶ Details of the Inter Company Transactions and Related Party Transactions has been duly disclosed as per the guidelines.
▶ In the Financial Statements all financial indicators have reflected its authenticity. The periodical/ quarterly financial
statements have duly disclosed to its stakeholders through the proper available channels.

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Annual Report-2020
 Financial Year
The company has adopted the period spread from July up to June as its financial year since the FY 2016-2017. It was adopted in
compliance with the directives of National Board of Revenue (NBR) of the country. The July-June period is also followed as the
financial year for keeping, preparation and reporting of the financial statements for the period under review.

Statuary Auditors
The existing statutory auditors - M/S. Aziz Halim Khair Chowdhury, Chartered Accountants who were appointed in the 26th
Annual General Meeting have completed their responsibilities during the period under review. The Auditors have requested for
their reappointment being they are eligible.

The Board of Directors of BPML has recommended for the reappointment of M/S. Aziz Halim Khair Chowdhury, Chartered
Accountants for the Financial Year 2020-2021. In view of this, the Board of Directors has decided to place the matter of
reappointment of the Statutory Auditors of the company for the Financial Year 2020-2021, at a fee of BDT 3,50,000/- (Three Lac
Fifty Thousand) excluding VAT for its approval by the shareholders of this company in this 27th Annual General Meeting.

Executives' Shareholdings Status

The shareholdings position of the top Executives, Governance Officers, their spouses and children (minor) as on 30.06.2020 has
been appended below:

Nos. of Shares
Sl.
Name Position in Company
no Children
Self Spouse
(Minor)
1. Mr. Md. Mustafizur Rahman FCA Deputy Managing Director Nil Nil Nil
2. Mr. Mirja Mujahidul Islam Chief Financial Officer Nil Nil Nil
3. Mr. Md. Kamrul Hassan Head of Accounts & Finance Nil Nil Nil
4. Mr. Md. Eleas Hossain Head of Internal Audit & Control Nil Nil Nil
5. Mr. M. Mazedul Islam Company Secretary in charge Nil Nil Nil

Corporate Governance
Every company have to recognize the rights and privileges of its stakeholders, preserve the interests of the stakeholders
including financiers, customers, management, employees, government, and the society, establish board’s responsibilities by
clearly outlining it, establish code of conduct for ethical behavior, establish and practice the business transparency for
promoting shareholders’ trust towards establishment of the good governance.

The corporate governance is aimed for increase of the accountability of a company, ensuring of transparency within a
company. It is the set of rules, policies, procedures and practices by which a board ensures its accountability, fairness, and
transparency. Under Corporate Governance system, a company is directed, guided and controlled by its Board and which is
accountable to its stakeholders. It is used for operating, controlling and structuring of a company as a tool with a view to achieve
long term strategic goals to satisfy shareholders, creditors, employees, customers and suppliers, complying with the legal and
regulatory requirements. A review and statements on corporate governance during the year appended with this report.

Corporate Governance Compliance Certification & Appointment of Compliance Auditors

The company duly ensured the all the compliance of Code of Corporate Governance. In compliance of BSEC’s notification vide
BSEC/CMRRCD/2006-158/207/Admin/80 dated 03/06/2018, M/S. Itrat Husain & Associates, Chartered Secretaries in Practice, has
conducted the keen investigation work on the compliance of the Code of Corporate Governance by this company during the
FY 2019-2020. The Compliance Certificate in Annexure-B and CG Code Status Report Annexure-C as directed by the BSEC and
has included in the Annual Report as well.

The existing Compliance Auditors- M/S. Itrat Husain & Associates Chartered Secretaries in Practice who were appointed in the
Printed on Bashundhara Paper

26th AGM are going to complete their terms for three consecutive year during the year. Meanwhale the company has received
a proposal from a valued shareholder to appoint M/S. M. Mohasin & Co. Chartered Secretaries, as the new Compliance Auditor
for the Financial Year 2020-2021.

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In view of this the Board of Directors has also recommended to appoint M/S. M. Mohasin & Co. Chartered Secretaries, for the
purpose of Compliance Certification on corporate governance of this company under the BSEC Code for the Financial Year
2020-2021 with the fee of BDT 100,000/- (One Lac) excluding the VAT and placing the matter before the shareholders of this
company in the 27th Annual General Meeting for its approval.

Certifications

▶ Bashundhara Paper Mills Limited has been awarded with ISO 9001:2015 Quality Management System by
RoyalCert International Registrars GmbH, Germany in 2020 for Bashundhara Paper Mills Ltd. Unit-1, Unit-2 and Unit-3.
Certifies that the management system of the organization has been assessed and found to be in accordance with the
requirements of the related standard.

BPML has been awarded with the ISO 14001:2015 Environmental Management System (EMS) Certification by The Con Cert
Quality Management (CCQM) GmbH, Switzerland in 2020.

▶ BPML has been awarded with the Certification in 2018 by Control Union Certifications of The Netherlands, after it
assessed the units and products of the company under i. FSC-STD-40-007 V2-0 Sourcing Reclaimed Material, ii.
FSC-STD-40-004 V3-0 Chain of Custody Certification, iii. FSC-STD-50-001 V2-0 Requirements for use of the FSC
Trademarks Certificate Holders.

The company has also been awarded with the Certification in 2016 by RINA Services SpA of The Italy, after it assessed the units
and products of the company under FSC-STD-40-004 V3-0 with the groups of products according to the FSC-STD-40-004a
with the products i. P2.3-Wrapping and packaging paper, ii. P6.4-Toilet paper/ bathroom tissue, iii. P6.5- Sanitary towels,
tampons, diapers and similar.

Award

▶ Bashundhara Tissue of BPML, under an initiative by the Bangladesh Brand Forum, this Tissue brand has been awarded
‘Best Brand 2018’ and ‘Best Brand 2019’ in consecutive years, where the Brand was audited by the Nielson.

▶ Bashundhara Paper has been awarded as the ‘Superbrands 2018’. The first ‘Suparbrands’ award was launched in
Bangladesh in 2010. For the second time on 2018, a number of renowned brands have been selected for ‘Superbrands
2018’ in recognition of their work.

These all are the recognition for the company for keeping its promises, dedicated service and contributions towards
cleanliness and serving the nation with the solution of healthy and better living. It has been regarded now-a-days that
“Bashundhara Tissue” and “Bashundhara Paper” are the name which is inseparable from the daily livelihood of the citizens of
this country. BPML views that these achievements are the recognition not only to this company but also to its consumers,
patrons, business partners and well-wishers.

Corporate Social Responsibility

An effective corporate social responsibility (CSR) practice put emphasis and focus on social, environmental and economic
sustainability issues. It is a form of corporate self-regulation which reflects the responsibility of it towards the impact it causes
on the society and its own prosperity. It is synonymous with responsible business practices of a company.

BPML has always been the front-runner to associate itself with various welfare functionalities for the society esp. Two of BPML’s
notable foundations e.g. Bashundhara Foundation and Bashundhara Special Children Foundation have propelled the
humanitarian drives into a new height by working tirelessly for the betterment of the poor and underprivileged folks. These
two foundations have been living up to Bashundhara’s promise of “For the People, for the Country”.
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 BPML from the very inception has been practicing to serve the community as well the country as a whole and the year under
review is no exception. The company has undertaken various activities for the betterment of the society. The notable CSR
activities of this company during the FY 2019-2020 are mentioned below –

▶ Bashundhara Special Children Foundation: Over 200 underprivileged autistic students studying at different grades; 2
separate 5-storied full-fledged school facility set-up with own pick & drop bus services for students and teachers.

▶ Humanitarian supports during Covid-19 period: Donated necessary COVID-19 kits i.e., Face Mask, PPE etc. to different
Govt. and Public entities in support of mass people in COVID-19 pandemic situation. Also, regularly distributed Foods to
underprivileged people to support them for their daily livelihood.

▶ Hospitals:
■ Ibrahim Cardiac Hospital & Research Institute: Bashundhara extends its assistance for the treatment of the poor
cardiac children.
■ Ad-Din Hospital: Bashundhara has been regularly on the side of Ad-Din Hospitals.

▶ Bashundhara Islamic Research Center: Islamic Research Center Bangladesh popularly known as Bashundhara
Islamic Research Center, a higher Islamic research institution situated at Bashundhara, Dhaka offers Islamic Education
in the following fields of Islamic Studies.

■ Department of Fatwa (Darul Ifta)

■ Department of Higher Islamic Law and Fiqh
■ Department of Dawra-e-Hadeeth

▶ Sports:
■ Toggi Sports Limited: A leading national level sports club. Under the sponsorship of BPML the Club has been
providing and conducting training programs for sportsmen and players of different disciplines. Toggi Sports Ltd. it’s
the owner of Rangpur Riders - the champion of BPL-2017.

■ Sheikh Jamal Dhanmondi Club: Lt. Sheikh Jamal Dhanmondi Club is a sports club in Dhaka based in the
Dhanmondi area. They play in the national level football league of Bangladesh.

▶ Education: Supporting various educational institutions, all over the country, by providing educational materials,
scholarships, sponsoring of sports events, etc., donating considerable quantity of education materials, multi-media and
photo copiers to different educational institutes all over the country.

▶ Natural Disasters/ Calamities: Always front-liner to help the people in natural disasters/ calamities all over Bangladesh.

Acknowledgments
The Board of Directors of Company is indebted to its customers for their excellent cooperation, support and having their
confidence on us as their preferred list. We believe and look forward to their support and cooperation to continue in future like
as before.

The Members of Board of Directors would like to express their special thanks and gratitude to all the well-wishers, patrons and
valued shareholders, for extending their commendable support, co-operation and patronage to this company without which
we could not achieve our objectives.

We, all in the Board of Directors of this company, express our sincere regards and gratitude to the banking and non-banking
financial institutions including Southeast Bank Ltd., First Security Islami Bank Ltd., IFIC Bank Ltd., Shahjalal Islami Bank Ltd.,
AB Bank Ltd., Mutual Trust Bank Ltd., Agrani Bank Ltd., Bank Asia Ltd., Janata Bank Ltd., BASIC Bank Ltd., Trust Bank Ltd.,
Printed on Bashundhara Paper

Mercantile Bank Ltd., National Bank Ltd., NCC Bank Ltd., Social Islami Bank Ltd., Standard Bank Ltd., Union Bank Ltd., United
Commercial Bank Ltd., BSEC, DSE, CSE, RJSC, BIDA, MoI, MoC and various other government and semi-government agencies
for their continued support and cooperation towards this company during the FY 2019-2020.

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The Board of Directors would also be extending its appreciation and gratitude to the Management of this company for their
concentrated efforts excellent teamwork and to all the employees of this company for their dedication, efforts and services for
which this company could accomplish its goals and objectives.

Dear Respected Members,

All of you may be aware of the present global pandemic situations. The policymakers worldwide are engaged in
damage-control of the economic losses at the moment and preparing for confronting the upcoming economic crisis. In
addition, there are evidences and indications that the manufacturing industries around the globe might have to face
remarkable instability for around the year. The government of Bangladesh has taken many effective package/strategy/policies
to overcome this economic recession. If we look at the sector-wise resource distribution of operating and development budget
for the fiscal year 2019-2020, we would see the health sector has received merely 4.9% of the total allocation. In response to the
current health & hygiene situation the company has involved its efficient management and workforce to innovate new
products and explore new destinations to export, diversify products and maximize quality. At the same time the company has
rearranged its operational activities considering the health issue of the workers. By ensuring our stakeholders with cooperative
governance, we all shall overcome this crisis situation.

It is a matter of privilege that in our endeavors we got support and cooperation from our members, patrons and stakeholders
during the period under review. We are hopeful and determined that if the support and cooperation from our respected
members, stakeholders, patrons and wide range of customers are continued then no odds shall obstruct our journey and we
shall come out successful in the long run.

May the Almighty Allah bless us all and thanking you.

On behalf of Board of Directors

Sd/-
Ahmed Akbar Sobhan
Chairman

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Printed on Bashundhara Paper

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FINANCIAL HIGHLIGHTS
OF FIVE YEARS
Financial of Highlights of last Five Years of Bashundhara Paper Mills Limited including FY 2019-2020
Financial Position

Amount in Million

Particular 2019-2020 2018-2019 2017-2018 2016-2017 2015-2016

Paid-up-Capital 1,737.91 1,737.91 1,737.91 1,477.50 1,477.50

Shareholders’ Equity 7,727.02 7,480.25 7,549.50 4,887.17 4,504.85

Total Assets 28,032.71 30,186.24 25,062.14 20,677.89 18,908.85

Total Liabilities 20,305.69 22,705.99 17,512.64 15,790.71 14,404.00

Working Capital 1,393.617 2,640.11 2,665.46 2,926.87 3,495.44

Capital Employed (times) 0.37 0.09 0.11 0.13 0.16

Operating Performance
Particular 2019-2020 2018-2019 2017-2018 2016-2017 2015-2016

Revenue 8,544.46 11,039.12 10,821.10 10,004.08 10,834.64

Gross Profit 1,877,58 2,095.28 1,920.58 1,824.41 1,956.45

Income from Operating 1,395.88 1,604.42 1,390.59 1,423.88 1,515.64

Profit Before Int., Tax & Dep. 2,385,39 2,540.09 2,214.35 2,168.97 2,156.35

Net profit after Tax 285.83 291.84 693.64 385.13 430.02

Financial Ratio
Particular 2019-2020 2018-2019 2017-2018 2016-2017 2015-2016

Current Ratio 1.52 1.16 1.10 1.04 1.00

EBIT to Net Interest Cover (times) 1.51 1.45 1.60 1.78 1.57

Debt to Equity 2.63 3.04 2.32 3.23 3.20

Gross Profit Margin 21.97% 19.01% 17.75% 18.24% 18.08%

Operating Profit Margin 16.34% 14.53% 12.85% 14.23% 13.99%

Net profit Margin 3.35% 2.64% 6.41% 3.85% 3.97%

Market Performance
Particular 2019-2020 2018-2019 2017-2018 2016-2017 2015-2016

Face value per Share 10 10 10 10 10

Dividend on Paid up Capital 10% 15% 20% n/a n/a

NAV per Share 43.55 42.52 49.18 31.38 30.49

Printed on Bashundhara Paper

Earnings per Share 1.64 1.68 3.99 2.57 2.91

Price Earning Ratio (P/E Ratio) 24.85 37.52 20.75 n/a n/a

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 GRAPHICAL
PRESENTATION
Revenue Tk. (in million) Gross Profit Tk. (in million)

11,039.12 10,821.10 10,834.08

12000 2150
2,095.28
10,004.08 2100
10000
2050
8,544.46 1,956.45
2000
8000 1,920.58
1950
1,877.58
6000 1900
1,824.41
1850
4000
1800
1750
2000
1700
0 1650
2019-20 2018-19 2017-18 2016-17 2015-16 2019-20 2018-19 2017-18 2016-17 2015-16

Operating Income Tk. (in Million) Net Profit after tax Tk. (in million)

1650 800
1,604.42 693.64
1600 700
1,515.64
1550 600
430.02
1500 500
1,423.88 385.13
1450 400
1,395.88 1,390.59 285.83 291.84
1400 300

1350 200

1300 100

1250 0
2019-20 2018-19 2017-18 2016-17 2015-16 2019-20 2018-19 2017-18 2016-17 2015-16

Paid up Capital Tk. (in Million) Shareholder’s Equity Tk. (in million)

1800 10000
1,737.91 1,737.91 1,737.91
1750 7,727.02 7,480.25 7,549.50
1700 8000
1650
1600 6000
4,887.17 4,504.85
1550
1,477.50 1,477.50
1500 4000
1450
1400 2000
Printed on Bashundhara Paper

1350
1300 -
2019-20 2018-19 2017-18 2016-17 2015-16 2019-20 2018-19 2017-18 2016-17 2015-16

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 Total Liabilities Tk. (in million) Total Assets Tk. (in million)

22,705.99
25000 35000
30,186.24
20,305.96 28,032.71
17,512.64 30000
20000
25,062.14
15,790.71
14,404 25000
15000 20,677.89
18,908.85
20000
10000
15000

5000
10000

0.00 5000
2019-20 2018-19 2017-18 2016-17 2015-16 2019-20 2018-19 2017-18 2016-17 2015-16

Net Working Capital Tk. (in Million) Capital Employed as percentage of Outstanding Capital

4000 0.4
3,495.44
3500 0.35
2,640.11 2,665.46 2,926.87
3000 0.3

2500 0.25

2000 0.2
1,393.61
1500 0.15

1000 0.1

500 0.05

0.00 0
2019-20 2018-19 2017-18 2016-17 2015-16 2019-20 2018-19 2017-18 2016-17 2015-16

Earnings Per Share Tk. (Per Share) Net Asset Value Tk. (Per Share)

4.5 60
3.99
4 43.55 42.52 49.18 31.38 30.49
50
3.5
2.91
3 40
2.57
2.5
1.64 1.68 30
2
1.5 20
1
Printed on Bashundhara Paper

10
0.5
0 0
2019-20 2018-19 2017-18 2016-17 2015-16 2019-20 2018-19 2017-18 2016-17 2015-16

Bashundhara Paper Mills Ltd.

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Annual Report-2020
 STATEMENT OF WEALTH
CREATION & ITS DISTRIBUTION
The Bashundhara Paper Mills Limited has accretion its wealth through manufacturing products in FY2019-2020 for its
directors, employees, government and shareholders in the form of remuneration, salaries & allowances, duties & taxes, net
profit after tax respectively and also indicates value of use of fixed assets through depreciation.

Value Added for the year ended 30 June, 2020

Figures in BDT
Particulars 2019-2020 2018-2019

Wealth Creation
Revenue 9,021,484,850 11,488,209,576
Less: Cost of Sales (5,799,393,263) (8,119,575,940)
Operating Expenses (137,275,934) (194,851,443)
3,084,815,653 3,173,782,193

Other Income 74,513,580 129,637,231

Provision for Expenses (110,078,848) (125,844,073)

Total Wealth Creation 3,049,250,385 3,177,575,351

Wealth Distribution
Employees & Directors
Employees as salaries & Allowances 1,002,642,747 964,297,357
Directors as fees 17,500,000 28,500,000

Government 714,699,540 611,747,735

Corporate Tax 109,262,362 70,831,934
Value added Tax 448,713,657 435,504,614
Supplementary Duty 28,307,975 13,578,382
Customs Duty 128,415,546 91,832,805

Shareholders
Dividend to Shareholders 39,062,499 347,582,882

Retention for future business growth

Retained Earnings 285,832,152 291,848,486
Depreciation and Amortization 989,513,447 933,598,891

Total Wealth Distribution 3,049,250,385 3,177,575,351

Wealth distribution (%) 2019-2020 Wealth distribution (%) 2018-2019

33% 34% 30% 31%

9% 23% 9%
11% 19%
Printed on Bashundhara Paper

1%

Bashundhara Paper Mills Ltd.

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Annual Report-2020
INVESTORS RELATION
COMMUNICATION & CONTACTS
During the FY 2019-2020 the published Notice and Price Sensitive Information (PSI) for the Shareholders:

Communicated through
Sl. No. Particulars Category Date
BPML Regulators

Finalize FS for FY 2018-2019 PSI Newspapers, Online Portal, DSE, CSE, 11 Nov, 2019
1.
and declaration of 26th AGM Website BSEC

Un-audited FS of 1Q of PSI Newspapers, Online Portal, DSE, CSE, 15 Nov, 2019

2.
FY 2019-2020 approval Website BSEC

26th AGM Notice General Notice Newspapers, Online Portal, DSE, CSE, 07 Nov,2019
3.
Website BSEC, CDBL

Distribution of Dividend for General Notice Newspapers, Online Portal, DSE, CSE, 23 Jan, 2020
4.
FY 2018-2019 Website BSEC

Un-audited FS of 2Q of PSI Newspapers, Online Portal, DSE, CSE, 30 Jan, 2020

5.
FY 2018-2019 approval Website BSEC

Un-audited 3Q FS approval PSI Newspapers, Online Portal, DSE, CSE, 10 June, 2020
6.
Website BSEC

Investors Relation Contacts:

Name Position in Company Contact Details

Mr. M. Mazedul Islam Company Secretary in charge + 88 02 8431256-8

+ 88 02 8432289-93
+ 88 02 8432305
[email protected]
[email protected]

Complain Cell: www.bashundharapapermills.com//investors relation/complain cell

Business Hour: Saturday-Thursday, 9:00 AM – 4:00 PM (excluding govt. holidays)

Share Office : Bashundhara Industrial Headquaters-2

Plot-56/A, Umme Kulsum Road, Block-C
Bashundhara R/A, Dhaka-1229.
Printed on Bashundhara Paper

Bashundhara Paper Mills Ltd.

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 SHAREHOLDING
INFORMATION
1. Shareholding position by Category of the Company:
Shareholding Position in number and percentage on the basis on Record Date i.e. 30/11/2020:

Number of
Particulars No. of Shares Ownership (%)
Shareholders

Sponsors (including pre-IPO sponsors) 04 30,500,398 17.55%

Directors (including MD) 04 117,257,085 67.47%

Institutions 184 11,727,984 6.74%

General Public 13,125 14,305,774 8.23%

Total 13,315 173,791,441 100.00%

Shareholding by Categories in (%)

9%
6% 18%
Sponsors (Incl.Pre-IPO)
Directiors (Incl. MD)
Institutions
General Public

67%

2. Quarterly Shareholding position by Category in Percentage as on 30 June 2020:

Shareholding by Categories in (%)

Sponsors Directors Institutions Public

67.47%

67.47%

67.47%

67.47%
PERCENTANGE

17.55%
17.55%

17.55%

17.55%
8.02%
8.64%
6.34%

8.59%

8.59%
6.96%

6.39%

6.39%
Printed on Bashundhara Paper

JUN-2020 MAR-2020 DEC-2019 SEP-2019

Quarter Ends

Bashundhara Paper Mills Ltd.

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3. Position of Lock-in Shares and Free float Shares in (%) as on 30 June 2019:

Lock in Vs Free Float in (%)

89.51%
100.00%
90.00%
70.14% 70.14%
80.00%
70.00%
60.00%
50.00%
29.86% 29.86%
40.00%
30.00%
10.49%
20.00%
10.00%
00.00%
June, 2020 June, 2019 June, 2018

Lock in Free float

4. Distribution schedule of each class of equity security setting out the number of holders and percentage as on
30 June 2020:

Share Holding Range Number of Shareholders No. of Shares Ownership (%)

0000000001-0000000500 12,582 1,715,224 0.987%

0000000501-0000005000 3,845 6,760,033 3.890%

0000005001-0000010000 406 2,975,198 1.712%

0000010001-0000020000 236 3,325,912 1.914%

0000020001-0000030000 92 2,171,206 1.249%

0000030001-0000040000 27 916,993 0.528%

0000040001-0000050000 27 1,218,565 0.701%

0000050001-0000100000 36 2,598,112 1.495%

0000100001-0001000000 23 4,360,423 2.509%

0001000001-1000000000 7 147,749,775 85.016%

Printed on Bashundhara Paper

Bashundhara Paper Mills Ltd.

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Annual Report-2020
 FINANCIAL
STATEMENTS
Printed on Bashundhara Paper

Bashundhara Paper Mills Ltd.

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CERTIFICATE OF
DUE DILIGENCE OF CEO & CFO
Annexure-A
[as per condition No.1(5)(xxvi) of the CG Code, 2018]
Date: 07 November, 2020

The Board of Directors

Bashundhara Paper Mills Limited

Subject: Declaration on Financial Statements for the year ended as on 30/06/2020.

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 03/06/2018 under section 2CC of the Securities and Exchange Ordinance,
1969, we do hereby declare that:

1) The Financial Statements of Bashundhara Paper Mills Limited for the year ended on 30/06/2020 have been
prepared incompliance 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 them 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 appro
priate 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 30/06/2020 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,
Printed on Bashundhara Paper

Sd/- Sd/-
Safwan Sobhan Mirja Mujahidul Islam
Managing Director Chief Financial Officer

Bashundhara Paper Mills Ltd.

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Annual Report-2020
 AHKC
AZIZ HALIM KHAIR CHOUDHURY
Chartered Accountants
Exclusive Correspondent Firm of PKF International

Independent Auditor’s Report

To the Shareholders of Bashundhara Paper Mills Ltd.
Report on the Audit of the Financial Statements

Opinion
We have audited the accompanying financial statements of Bashundhara Paper Mills’ Ltd. ("the Company”), which comprise
the Statement of Financial Position as at 30 June 2020, 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 present fairly, in all material respects, the financial position of the
company as at 30 June 2020, and its financial performance and its cash flow year then ended in accordance with
International Financial Reporting Standards (lFRSs), the Companies Act 1994, the Securities and Exchange Rules 1987 and
other applicable laws and regulations.

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (lASs). 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 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
the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis of our
opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the
financial statements of the current period. Those matters were addressed in context of our audit of the financial statements
as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For each matter
below, our description of how our audit addressed the matter is produced in the context.

Risk Our response to the risk

Property, plant and equipment (PP&E)

The carrying value of PP&E as at 30 June 2020 was BDT. Our audit procedures to assess the carrying value of PP&E
15,407,776,066. Which is 54.96% of total assets. included the following:

There are a number of areas where management assessing the design, implementation and operating
judgment impacts the carrying value of PP&E, and the effectiveness of l‹ey internal controls over the
related depreciation profiles. These include: completeness, existence and accuracy of property, plant
and equipment, including the key internal controls over
• Determining which costs meet the criteria for the estimation of useful economic lives and residual
capitalization; values;
• The estimation of economic useful lives and residual assessing, on a sample basis, costs capitalized during
values assigned to property, plant and equipment. the year by comparing the costs capitalized with the
relevant underlying documentation, which included
We identified the carrying value of property, plant purchase agreements and invoices, and assessing
and equipment as a key audit matter because of the high whether the costs capitalized met the relevant criteria
Printed on Bashundhara Paper

level of management judgment involved and because of for capitalization; and

its significance to the financial statements. evaluating management's estimation of useful
economic lives and residual values

Bashundhara Paper Mills Ltd.

74
Annual Report-2020
 Risk Our response to the risk
by considering our knowledge of the business.

See note no. 4.00 of the financial statements.

Valuation of Inventory

The Company had inventory of BDT 7,464,742,402 We performed a number of audit procedures for
at 30 June 2020, held and across multiple product lines. inventory valuation and existence. The procedure
Inventories are carried at the lower of cost and net introduced any others the followings:
realizable value.
Evaluated and selected systems and processes for
Inventory valuation and existence was a key audit matter inventory and tested a sample of key controls for
because of store/ location that inventory was held and establishing volumes and cost;
the judgment applied in the valuation of inventory. Evaluated the stocking process in the selected stores
and undertook our own test of control;
Tested, on a sample basis, stocks of raw materials to
actual prices. Assessed the reasonableness of the
product and service costing;
Comparing the net realizable value obtained through
a detailed review of sales subsequent to the year-end,
to the cost price of a sample of inventories;
Participated in stock takes at a number of locations
and tested the cut-off of deliveries in or out of
inventory; and Obtained the company’s monitoring
controls of slow movers and assessments of
obsolescence as well as net selling prices.

See note no. 9.00 to the financial statements

Revenue recognition

At year end of the Company reported total revenue of Our audit procedures included, among others, the
BDT 8,544,463,487. following:

The Company has multiple revenue units including We evaluated the revenue recognition principles
Unit-1, Unit-2 & Unit-3. Since the company has complex applied by the Company towards applicable
terms of contracts which require significant accounting standards;
management estimation and judgment in determining We evaluated the revenue recognition of different
the timing of revenue recognition and measurement. segments of revenue in relation to the terms of the
Revenue is derived from several business segments and service terms;
agreement with customers contain more than one We tested the key controls over the calculation,
performance obligation. Hence the management needs authorization and approval of bills forwarded to
to determine the basis for allocating the consideration customers and the capturing and recording of
received between the separate performance obligations revenue transections;
based on relative standard selling price. This matter is We tested the timing of the revenue recognition;
considered a key audit matter due to the level of We evaluated the appropriateness of the notes related
judgment required to determine the timing of revenue to the Company’s revenue;
recognition and measurement. We critically assessed manual journals posted to
revenue to identify unusual or irregular items; and
Printed on Bashundhara Paper

Finally assessed the appropriateness and presentation

of disclosures against relevant accounting standards.

See note no. 28 of the financial statements

Bashundhara Paper Mills Ltd.

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Annual Report-2020
 Reporting on Other Information
Management is responsible for the other information. The other information comprises all of the information in the Annual
report 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.

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 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 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 a 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 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, misrepresentation, 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 polices 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
doubts 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 conclusion is 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.
Printed on Bashundhara Paper

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.

Bashundhara Paper Mills Ltd.

76
Annual Report-2020
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of
the 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 matter communicated with those charged with governance, we determine those matters that were of most
significance in the audit of the financial statements of the current period and are therefore the key audit matters. We
describe these matters in our auditor’s 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 be 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, the Securities and Exchange Rules 1987 and relevant notifications issued by
Bangladesh Securities and Exchange Commission and other applicable laws and regulations. We, as required by law, further
report that:
a) We have obtained all the information and explanations which to the best of our knowledge and belief where
necessary for the purpose of our audit and made due verification thereof;
b) In our opinion, proper books of accounts, records and other statutory books are required by law have been kept
by the Company so far as it appeared from our examinations of those books ;
c) The information and explanations required by us have been received and found satisfactory;
d) The Statement of Financial Position, and the Statement of Profit or Loss and Other Comprehensive Income and
Statement of Changes in Equity and Statement of Cash Flows of the Company dealt with by the report are in
agreement with the books of account and returns; and
e) The expenditure was incurred for the purpose of the Company’s business

Sd/-
Aziz Halim Khair Choudhury
Chartered Accountants

Dhaka Signed by
Dated: 08 November 2020. Md. Aftab Uddin Ahmed FCA
Senior Partner
ICAB Enrolment # 804
Printed on Bashundhara Paper

Bashundhara Paper Mills Ltd.

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Annual Report-2020
 BASHUNDHARA PAPER MILLS LIMITED
Statement of financial position
As at 30 June 2020

30-Jun-2020 30-Jun-2019
Notes Amount in Taka

ASSETS
Non-current assets 17,200,941,398 15,729,748,507

Property, plant and equipment, net 4 15,407,776,066 13,289,188,831

Intangible Assets, net 5 158,794,592 166,798,327
Right-of-use assets 6 41,169,020 -
Capital work-in-progress 7 1,328,201,720 2,008,761,348
Investment 8 265,000,000 265,000,000
Current assets 10,831,777,022 14,456,497,247
Inventories 9 7,464,742,402 7,866,400,203
Trade and other receivables 10 1,404,774,156 3,693,325,197
Advances, deposits and prepayments 11 708,955,164 829,368,883
Advance income tax 12 483,959,471 374,697,109
Intercompany current account 13 488,355,587 356,051,064
Cash and bank equivalents 14 280,990,242 1,336,654,791
Total assets 28,032,718,420 30,186,245,753
EQUITY AND LIABILITIES
Capital and reserves 7,727,026,536 7,480,252,300

Share capital 15 1,737,914,410 1,737,914,410

Share premium 16 1,739,583,292 1,739,583,292
Revaluation reserve 17 2,072,945,223 2,092,726,250
Retained earnings 18 2,176,583,611 1,910,028,348
Liabilities
Non-current Liability 13,201,888,017 10,193,472,915
Long term borrowings 19 10,977,987,601 8,397,659,591
Lease Liabilities 20 343,036,876 38,946,320
Deferred tax liability 21 1,189,125,397 1,076,753,353
Intercompany Payable 22 691,738,143 680,113,651

Current liabilities 7,103,803,866 12,512,520,539

Long term borrowings-current portion 23 1,974,333,458 1,740,500,152
Short term borrowings 24 3,126,622,374 8,084,230,977
Trade and other payables 25 1,576,257,948 2,296,713,495
Provision for expenses 26 110,078,848 125,844,073
Income tax provision 27 316,511,236 265,231,842
Total liabilities 20,305,691,883 22,705,993,454
Total equity and liabilities 28,032,718,420 30,186,245,753
Net Asset Value Per Share 44 43.55 42.08

The annexed notes 1 to 55 form an integral part of these financial statements.

Sd/- Sd/- Sd/-
Chief Financial Officer Company Secretary Managing Director
Printed on Bashundhara Paper

Sd/- Sd/-
Director Chairman Sd/-
Dated, Dhaka Aziz Halim Khair Choudhury
08 November 2020 As per our report of same date Chartered Accountants

Bashundhara Paper Mills Ltd.

78
Annual Report-2020
BASHUNDHARA PAPER MILLS LIMITED
Statement of profit or loss and other comprehensive income
for the year ended 30 June 2020

01-Jul-2019 to 01-Jul-2018 to
Notes
30-Jun-2020 30-Jun-2019
Amount in Taka

Revenue, net 28 8,544,463,487 11,039,126,581

Cost of sales 29 (6,666,877,871) (8,940,367,498)
Gross profit 1,877,585,616 2,098,759,083

Other income 30 74,513,580 129,637,231

Administrative expenses 31 (360,254,388) (392,866,946)
Selling & distribution expenses 32 (195,964,212) (229,030,716)
Finance costs 33 (922,735,151) (1,103,924,593)

Profit before distribution of WPP & WF 473,145,445 502,574,059

Workers' profit participation & welfare fund 34 (23,657,272) (25,128,703)

Profit before tax 449,488,173 477,445,356

Income tax expenses 35 (163,651,438) (185,596,870)

Current tax expense (51,279,394) (66,235,531)
Deferred tax (expense)/income (112,372,044) (119,361,339)

Profit after tax 285,836,735 291,848,486

Other comprehensive income
Items that will not be reclassified subsequently to profit or loss _ _
Items that may be reclassified subsequently to profit or loss _ _

Total Comprehensive Income for the year 285,836,735 291,848,486

Earnings per share

Basic earnings per share (per value of Tk. 10) 36 1.64 1.68

The annexed notes 1 to 55 form an integral part of these financial statements.

Sd/- Sd/- Sd/-

Chief Financial Officer Company Secretary Managing Director

Sd/- Sd/-
Director Chairman

As per our report of same date

Printed on Bashundhara Paper

Sd/-
Dated, Dhaka Aziz Halim Khair Choudhury
08 November 2020 Chartered Accountants

Bashundhara Paper Mills Ltd.

79
Annual Report-2020
 Printed on Bashundhara Paper

80
BASHUNDHARA PAPER MILLS LIMITED
Statement of changes in equity
for the year ended 30 June 2020

Bashundhara Paper Mills Ltd.

Annual Report-2020
Share Share Revaluation Retained Total
Capital Premium Reserve Earnings Equity
Amount in Taka

Balance as on 01 July 2018 1,737,914,410 1,739,583,292 2,112,514,322 1,959,489,520 7,549,501,545

Transfer to retained earnings _ _ (19,788,072) 19,788,072 _
Payment of cash dividend _ _ _ (347,582,882) (347,582,882)
Adjustment for current tax of prior years _ _ _ (13,514,849) (13,514,849)
Total Comprehensive Income for the year _ _ _ 291,848,486 291,848,486
Balance as at 30 June 2019 1,737,914,410 1,739,583,292 2,092,726,250 1,910,028,347 7,480,252,300

Balance as at 01 July 2019 1,737,914,410 1,739,583,292 2,092,726,250 1,910,028,347 7,480,252,300

Transfer to retained earnings _ _ (19,781,027) 19,781,027 _
Payment of cash dividend _ _ _ (39,062,499) (39,062,499)
Total Comprehensive Income for the year _ _ _ 285,836,735 285,836,735
Balance as at 30 June 2020 1,737,914,410 1,739,583,292 2,072,945,224 2,176,583,610 7,727,026,536

Sd/- Sd/- Sd/-

Chief Financial Officer Company Secretary Managing Director

Sd/- Sd/-
Director Chairman
BASHUNDHARA PAPER MILLS LIMITED
Statement of cash flows
for the year ended 30 June 2020

01-Jul-2019 01-Jul-2018
Notes
to 30-Jun-2020 to 30-Jun-2019
Amount in Taka

A) Cash flows from operating activities

Receipts from customers 39.01 11,347,128,003 10,763,476,984
Receipts from other income 39.02 37,421,737 117,403,047
11,384,549,740 10,880,880,031
Payment to suppliers, employees & others 39.03 (6,471,221,104) (8,598,987,415)
Cash generated from operations 4,913,328,636 2,281,892,616
VAT paid 28 (448,713,657) (435,504,614)
SD Paid 28 (28,307,975) (13,578,382)
Income taxes paid 12 (109,262,362) (70,831,934)
Bank charges and commission 33 (8,023,610) (12,181,862)

Net cash (used in)/ generated by operating activities 4,319,021,031 1,749,795,824

B) Cash flows from investing activities

Payments for property, plant and equipment 650,121,637 (514,187,248)
Adjustment/ transfer of intangible assets 5,703,750 _
Adjustment/ transfer for property, plant and equipment 478,993 _
Receipts/ transfer of capital work-in-progress (3,119,210,982) (4,256,734,211)

Net cash (used in)/ generated by investing activities (2,462,906,602) (4,770,921,459)

C) Cash flows from financing activities

Received/ (repayment) of short term borrowings (4,957,608,603) (891,740,884)
Payments of Bank interest and other charges (912,679,720) (1,098,292,889)
Payments of dividends to owners of the company (39,062,499) (50,970,631)
Received/ (repayment) of Intercompany debt (120,680,030) (229,653,586)
Received/ (repayment) of lease liabilities 304,090,556 _
Received/ (repayment) of long term borrowings 2,814,161,317 5,108,983,925

Net cash (used in)/ generated by financing activities (2,911,778,980) 2,838,325,934

D) Net increase in cash and cash equivalents (A+B+C) (1,055,664,550) (182,799,701)
E) Cash and cash equivalents at the beginning 14 1,336,654,791 1,519,454,492
F) Cash and cash equivalents at the end (D+E) 14 280,990,242 1,336,654,791
Net Operating Cash Flows per share 45 24.85 10.07

The annexed notes 1 to 55 form an integral part of these financial statements.

Sd/- Sd/- Sd/-

Chief Financial Officer Company Secretary Managing Director

Sd/- Sd/-
Printed on Bashundhara Paper

Director Chairman

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 BASHUNDHARA PAPER MILLS LIMITED
Notes to the financial statements
As at and for the year ended 30 June 2020
1. REPORTING ENTITY

1.1 COMPANY PROFILE

Bashundhara Paper Mills Limited (hereinafter referred to as “BPML”/” the Company”) is a public limited company by
shares is domiciled in Bangladesh which was incorporated on 28 September 1993 vide registration no.C-24705(539)/93
under the Companies Act 1913, subsequently replaced by Companies Act 1994. The Company has been listed to both
the Dhaka Stock Exchange Ltd. and Chittagong Stock Exchange Ltd. on 19 June 2018. Trading of the shares of the
company started in two stock exchanges from 02 July 2018.

1.2 ADDRESS OF REGISTERED OFFICE AND FACTORIES

The registered office of the company is situated at 125/A, Basahundhara R/A, Block-A, Baridhara, Dhaka-1212,
Bangladesh. Corporate office address is Bashundhara Industrial Headquarters-2, Plot# 56/A, Block# C, Umme Kulsum
Road, Bashundhara R/A, Dhaka-1229, Bangladesh. The industrial units 1 and 2 are established at New town, Meghna
Ghat, Sonargoan, Narayangonj and Unit-3 is Anarpura, Gazaria, Munshigonj.

1.3 NATURE OF BUSINESS

The company is engaged in manufacturing and marketing of all kinds of paper products, tissue products, Hygienic
products, PP woven bag, paper sack and other consumer brand items. The enterprise, since its inception, is helping
the nation save huge amount of hard-earned foreign exchange by cutting dependence on imported paper products.

2. SUMMARY OF SIGNIFICANT ACCOUNTING AND VALUATION POLICIES

The principal accounting policies applied in the preparation of these financial statements are set out below. These
policies have been consistently applied to all the years presented, unless otherwise stated. The specific Accounting
Policies selected and applied by the company’s management for significant transactions and events that have a
material effect within the framework of IAS-1 Presentation of Financial Statements in preparation and presentation of
financial statements. Compared to the previous year, there were no significant changes in the accounting and
valuation principals affecting the financial position and performance of the company. Accounting and valuation
methods are disclosed for reasons of clarity.

2.1 BASIS OF FINANCIAL STATEMENTS PREPARATION AND PRESENTATION

2.1.1 Accounting standards

The financial statements of the company have been prepared in accordance with International Accounting Standards
(IAS) and International Financial Reporting Standards (IFRS) as adopted by the Institute of Chartered Accountants of
Bangladesh (ICAB).

2.1.2 Accounting Convention

The financial statements are prepared under the historical cost convention except items of fixed assets revalued in
2010 and 2015. The company classified the expenses using the function of expenses method as per IAS-1.

2.1.3 Statement of compliance

The Financial Reporting Act, 2015 (FRA) was enacted in 2015. The Financial Reporting Council (FRC) under the FRA has
been formed in 2017 but the Financial Reporting Standards (FRS) under this council is yet to be issued for public
interest entities such as listed entities.

As the FRS is yet to be issued by FRC hence as per the provisions of the FRA (section-69), the financial statements have
been prepared in accordance with International Financial Reporting Standards (IFRSs) and the Companies Act, 1994.
Printed on Bashundhara Paper

The title and format of these financial statements follow the requirements of IFRSs which are to some extent different
from the requirement of the Companies Act, 1994. However, such differences are not material and in the view of
management, IFRS format gives a better presentation to the shareholders.

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 As required, Bashundhara Paper Mills Limited complies with the following major legal provisions and other applicable
laws and regulations:

/ The Companies Act 1994

/ The Securities and Exchange Rules, 1987
/ The Securities & Exchange Ordinance, 1969
/ The Income Tax Ordinance, 1984
/ The Income Tax Rules, 1984
/ The Value Added Tax and Supplementary Duty Act, 2012
/ The Customs Act, 1969
/ The Bangladesh Labor (Amendment) Act 2013, 2006
/ International Accounting Standards (IAS)
/ International Financial Reporting Standards (IFRS)
/ The Listing Regulations of Dhaka Stock Exchange Ltd. & Chittagong Stock Exchange Ltd.

2.2 FUNCTIONAL AND PRESENTATIONAL CURRENCY

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

2.3 USE OF ESTIMATES AND JUDGMENT

The preparation of these financial statements is in conformity with IFRSs requires management to make judgments,
estimates and assumptions that affect the application of accounting policies and the reported amounts of assets,
liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an on going basis. Revisions to accounting estimates are
recognized in the period in which the estimates are revised and in any future periods affected.

In particular, information about significant areas of estimation uncertainty and critical judgments in applying
accounting policies that have the most significant effect on the amount recognized in the financial statements are
described in the following notes:

Note 20: Finance lease obligations (classification and measurement)

Note 21: Deferred tax liabilities (manner of recovery of temporary differences for determination of deferred
tax liabilities)
Note 28: Revenue (allocation of revenue among multiple elements, determination of percentage of
completion for services rendered)
Note 35: Income tax expenses

Topic Policy No. Note No.

Property, plant & equipment-Cost 3.1.1 4.00
Property, plant & equipment-Depreciation 3.1.3 4.00
Valuation of inventories 3.6 9.00
Deferred tax 3.10.2 21.00
Impairment of property, plant & equipment 3.1.9 N/A

2.4 PRESENTATION OF FINANCIAL STATEMENTS

The presentation of these financial statements is in accordance with the guidelines provided by IAS 1: Presentation of
Financial Statements, The Financial Statements comprises:
/ a statement of financial position;
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/ a statement of profit or loss and other comprehensive income;

/ a statement of changes in equity;
/ a statement of cash flows; and
/ notes, comprising a summary of significant accounting policies and explanatory information.

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 2.5 CURRENT VS. NON-CURRENT CLASSIFICATION
The Company presents assets and liabilities in statement of financial position based on current/noncurrent
classification.

An asset is current when it is:

a) expected to be realized or intended to be sold or consumed in normal operating cycle
b) held primarily for the purpose of trading
c) expected to be realized within twelve months after the reporting period or
d) cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve
months
All other assets are classified as non-current.

A liability is current when it is:

a) expected to be settled in normal operating cycle
b) held primarily for the purpose of trading
c) due to be settled within twelve months after the reporting period or
d) there is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting

The Company classifies all other liabilities as non-current.

Deferred tax assets/liabilities are classified as non-current assets/liabilities.

2.6 COMPLIANCE WITH THE REQUIREMENTS OF NOTIFICATION OF THE SECURITIES AND EXCHANGE COMMISSION
DATED 04.06.2008 under Ref. # SEC/CMMRPC/2008-81/53/Adm/03/28

2.6.1 Notes to the financial statements marked from 3.00 to 3.30 setting out the policies are unambiguous with respect
to the reporting framework on which the accounting policies are based.

2.6.2 The accounting policies on all material areas have been stated clearly in the notes marked from 3.00 to 3.30

2.6.3 The accounting standards that underpin the policies adopted by the company can be found in the following
places of the notes to the financial statements:

The following IASs and IFRSs are applicable for the preparation of financial statements for the year under review:

IAS 1 Presentation of Financial Statements

IAS 2 Inventories
IAS 7 Statement of Cash Flows
IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
IAS 10 Events After the Reporting Period
IAS 12 Income Taxes
IAS 16 Property, Plant and Equipment
IAS 19 Employee Benefits
IAS 21 The Effects of Changes in Foreign Exchange Rates
IAS 23 Borrowing Costs
IAS 24 Related Party Disclosures
IAS 33 Earnings Per Share
IAS 34 Interim Financial Reporting
IAS 36 Impairment of Assets
IAS 37 Provisions, Contingent Liabilities and Contingent Assets
IAS 38 Intangible Assets
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IFRS 7 Financial Instruments: Disclosures

IFRS 8 Operating Segments
IFRS 9 Financial Instruments

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 IFRS 12 Disclosure of Interests in Other Entities
IFRS 13 Fair Value Measurement
IFRS 15 Revenue from Contracts with Customers
IFRS 16 Leases

2.7 CHANGES IN SIGNIFICANT ACCOUNTING POLICIES

Except for the changes below, the Company has consistently applied the accounting policies to all periods presented
in these financial statements.

IFRS 16 eliminates the earlier operating/finance lease dual accounting model for leases. The change interprets a single
accounting model on balance sheet, similar to current finance lease accounting. Issued in January 2016, the new IFRS
is replaced the existing guidance in IAS 17 Leases. IFRS 16 is effective from or after 1 January 2019.

As a lessee, the Company previously classified leases as operating or finance leases based on its assessment of
whether the lease transferred significantly all of the risks and rewards incidental to ownership of the underlying asset
to the Company. Under IFRS 16, BPML recognises right-of-use assets and lease liabilities for all leases.

2.8 NEW ACCOUNTING STANDARDS ISSUED BUT NOT YET ADOPTED

A number of new standards are effective for annual periods beginning after 1 April 2019 and earlier application is
permitted; however, the Company has not early adopted the new or amended standards in preparing these financial
statements.

The following amended standards and interpretations are not expected to have a significant impact on the
Company's financial statements.

–Amendments to References to Conceptual Framework in IFRS Standards.

–IFRS 17 Insurance Contracts.
–Definition of Material (Amendments to IAS 1 and IAS 8)
–Definition of a Business (Amendments to IFRS 3)

2.9 REPORTING PERIOD

The financial period of the Company covers from 01 July to 30 June. The Company follows its reporting period from 01
July to 30 June in order to comply with the provision of section 9 of the Finance Act, 2015 and interpretations and
implementation of Bangladesh Securities and Exchange Commission Directive No. SEC/SRMIC/2011/1240/445 dated
April 27, 2016 concerning uniform income year. However, the company was followed its reporting period from 01
January to 31 December up to 30 June 2016.

2.10 DATE OF AUTHORIZATION FOR ISSUE

The financial statements were approved by the Board of Directors and authorized for issue on 07 November 2020.

2.11 BOOKS OF ACCOUNTS

The Company maintains its books of accounts for main business in electronic form through its own customized
software. Besides, the Company using SAP software which under process of full implementation. SAP ERP is
enterprise resource planning software developed by the German company SAP SE next year. Business Processes
included in SAP ERP include Operations (Sales & Distribution, Materials Management, Production Planning, Logistics
Execution, and Quality Management), Financials (Financial Accounting, Management Accounting and Financial
Supply Chain Management) and Human Capital Management (Payroll).

2.12 COMPARATIVE INFORMATION AND REARRANGEMENT THEREOF

Comparative information for the financial position has been disclosed in respect of the year ended June 30, 2019 for all
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numerical information in the financial statements and also the narrative and descriptive information where it is
relevant for understanding of the current year's financial statements.
Figures for the year ended June 30, 2019 have been re-arranged wherever considered necessary to ensure better
comparability with the current year.

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 3. SIGNIFICANT ACCOUNTING POLICIES
The accounting policies set out below have been applied consistently (otherwise as stated) to all periods presented in
these financial statements.

3.1 PROPERTY, PLANT AND EQUIPMENT

3.1.1 Recognition and Measurement

Land, building, plant and machinery, furniture, fixtures and equipments held for use in the production or supply of
goods and services, or for administrative purposes, are stated in the statement of financial position at their cost and
revalued amounts, being the fair value at the date of revaluation, less any subsequent accumulated depreciation and
subsequent accumulated impairment losses. Capital work-in-progress represents the cost incurred for acquisition
and/or construction of property, plant and equipment that were not ready for use at the end of June 30, 2020 and
these are stated at cost. Revaluations are performed with sufficient regulatory such that the carrying amounts do not
differ materially from those that would be determined using fair values at the end of each reporting period.

Properties in the course of construction for production, supply or administrative purposes are carried at cost, less any
recognized impairment loss. Cost includes professional fees and, for qualifying assets, borrowing costs capitalized in
accordance with the company’s accounting policy. Such properties are classified to the appropriated categories of
property, plant and equipment when completed and ready for intended use. Depreciation of these assets, on the
same basis as other property assets, commences when the assets are ready for their intended use.

3.1.2 Subsequent Costs and Maintenance Activities

The company recognizes in the carrying amount of an item of property, plant and equipment the cost of replacing
part of such an item when the cost is incurred, it is probable that the future economic benefits embodied with the
item will flow to the company and the cost of the item can be measured reliably. Expenditure incurred after the assets
have been put into operation, such as repair and maintenance is normally charged off as revenue expenditure in the
period in which it is incurred. In situation where it can be clearly demonstrated that the expenditure has resulted in an
increase in the future economic benefit expected to be obtained from the use of fixed assets, the expenditure is
capitalized as an additional cost of the assets. All other costs are recognized to the profit or loss account as expenses if
incurred. All up-gradation/enhancement are generally charged off as revenue expenditure unless they bring similar
significant additional benefits.

3.1.3 Depreciation
Depreciation is recognized so as to write off the cost or valuation of assets, less their residual values over their useful
lives, using the straight-line method. The estimated useful lives, residual values and depreciation method are reviewed
for the 1st time at end of 2010 by SGS Bangladesh Limited, with the effect of any changes in estimate accounted for on
a prospective basis.

Depreciation on revalued buildings, plant and machinery, furniture, fixtures and equipments is recognized in profit or
loss. On the subsequent sale or retirement of a revalued property, the attributable revaluation surplus remaining in
the properties revaluation reserve is transferred directly to retained earnings.

Freehold land is not depreciated.

Depreciation begins when the asset is available for use and continues until the asset is derecognized. All items of
property, plant and equipment have been depreciated on straight line basis over the estimated useful lives of
property, plant & equipment as under:

Category Useful life (Year)

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Land and Land Development** Nil

Building and other constructions 10-50
Furniture & Fixtures 5-15

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 Office Equipment 5-15
Motor Vehicle 2-10
Plant & Machinery 2-20
Sundry Assets 5-15
Factory apparatus and Loose Tools 2-20

**Land is not depreciated as it deemed to have an infinitive life.

3.1.4 Derecognition of Property, Plant and Equipment

An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are
expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item
of property, plant and equipment is determined as the difference between the sales proceeds and the carrying
amount of the asset and is recognized in profit or loss.

3.1.5 Revaluation
The fixed assets as at 31 December 2010 were 1st time revalued to their fair market value as per decisions of the Board
of Directors. All fixed assets under property, plant and equipment available on the cut-off date 31 December 2010 were
revalued by an independent valuer S. F. Ahmed & Co., Chartered Accountants (Representative of ERNST & YOUNG
GLOBAL in Bangladesh) and the revaluation surplus has been incorporated in the financial statements as on 31
December 2010.

Further as per decision of the Board of Directors (BoD) of the Company has revalued its freehold land to
determination of current fair market value to be used to show the actual picture of the company in the Financial
Statements in 2015 by an independent valuer Mahfel Huq & Co.; Chartered Accountants dated 16 May 2015. As per BoD
meeting dated 05 July 2015, the Board of Directors has accepted the revaluation report and agreed to effect
revaluation surplus amount in the accounts of BPML by following necessary accounting policies.

Any revaluation increase arising on the revaluation of such land, buildings, plant and machinery, furniture, fixtures and
equipments is recognized in other comprehensive income and accumulated in equity as revaluation reserve, except
to the extent that it reverses a revaluation decreases for the same asset previously recognized in profit or loss, in which
case the increase is credited to profit or loss to the extent if the decrease previously expensed. A decrease in the
carrying amount arising on the revaluation of such Land, building, plant and machinery, furniture, fixtures and
equipments is recognized in profit or loss to the extent that it exceeds the credit balance, if any, held in the properties
revaluation reserve relating to a previous revaluation of that asset.

3.1.6 Software
Software is generally charged off as revenue expenditure. Customized software that is integral to the functionality of
the related equipment is capitalized as part of that equipment.

Acquired computer software’s capitalized on the basis of the costs incurred to acquire and bring to use the specific
software. These costs are amortized over their estimated useful lives.

3.1.7 Disposal of Fixed Assets

On Disposal of Fixed Assets, the cost and accumulated depreciation are eliminated and gain or loss on such disposal
is reflected in the statement of profit or loss and other comprehensive income, which is determined with reference to
the net book value of the assets and net sales proceeds.

3.1.8 Maintenance Activities

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The company incurs maintenance cost for all its major items of property, plant and equipment. Repair and
maintenance costs are charged as expenses when incurred.

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 3.1.9 Impairment

The carrying value of the Company’s assets other than inventories, are reviewed to determine whether there is any
indication of impairment. If any such indication exists, the asset's recoverable amount is estimated. An impairment
loss is recognized whenever the carrying amount of the assets or its cash-generating unit exceeds its recoverable
amount. Impairment losses, if any, are recognized in the statement of profit or loss and other comprehensive income
in the year concerned.

3.2 INTANGIBLE ASSETS

3.2.1 Recognition
The recognition of an item as an intangible asset requires to demonstrate that the item meets the definition of an
intangible asset and the recognition criteria. An intangible asset is recognized as an asset if, and only if:

/ it is probable that expected future economic benefits that are attributable to the asset will flow to the company;
and
/ the cost of the item can be measured reliably.

3.2.2 Measurement
An intangible asset is measure at cost less any accumulated amortization and any accumulated impairment losses.
Subsequent expenditures are likely to maintain the expected future economic benefits embodied in an existing
intangible asset rather than meet the definition of an intangible asset and the recognition criteria. In addition, it is
often difficult to attribute subsequent expenditure directly to a particular intangible asset rather than to the business
as a whole. Therefore, expenditure incurred after the initial recognition of an acquired intangible asset or after
completion of an internally generated intangible asset is usually recognised in profit or loss as incurred. This is because
such expenditure cannot be distinguished from expenditure to develop the business as a whole.

3.2.3 Separately Acquired Intangibles Assets

The cost of a separately acquired intangible asset comprises:

/ its purchase price, including import duties and non-refundable purchase taxes, after deducting trade discounts
and rebates;
/ and any directly attributable cost of preparing the asset for its intended use.

3.2.4 Internally Generated Intangible Assets

The cost of an internally generated intangible asset is the sum of expenditure incurred from the date when the
intangible asset first meets the recognition criteria. The cost of an internally generated intangible asset comprises all
directly attributable costs necessary to create, produce, and prepare the asset to be capable of operating in the
manner intended by management.

3.2.5 Research Phase

No intangible asset arising from research (or from the research phase of an internal project) is recognised.
Expenditure on research (or on the research phase of an internal project) is recognised as an expense when it is
incurred.

3.2.6 Development Phase

An intangible asset arising from development (or from the development phase of an internal project) is recognised in
IAS-38: Intangible asset. The company’s intangible assets include computer software development (SAP), Design,
Printed on Bashundhara Paper

construction and development of products, Augmented Reality. Internally generated brands, mastheads, publishing
titles, customer lists and items similar in substance are not recognised as intangible assets.

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3.2.7 Recognition of an Expense
Income cases, expenditure are incurred to provide future economic benefits to an entity, but no intangible asset or
other asset is acquired or created that can be recognised. For example, expenditure on research is recognised as an
expense when it is incurred, except when it is acquired as part of a business combination. Other examples of
expenditure that is recognised as an expense when it is incurred include:

/ expenditure on start-up activities i.e. start-up costs/ pre-operating cost.

/ expenditure on training activities.
/ expenditure on advertising and promotional activities.
/ expenditure on relocating or reorganising part or all of an entity.

3.2.8 Past Expenses

Expenditure on an intangible item that was initially recognised as an expense is not recognised as part of the cost of
an intangible asset at a later date.

3.2.9 Revaluation of Intangibles

The revaluation model requires an intangible asset shall be carried at a revalued amount, being its fair value at the
date of the revaluation less any subsequent accumulated amortisation and any subsequent accumulated
impairment losses. However, fair value shall be measured by reference to an active market. The revaluation model
does not allow the revaluation of intangible assets that have not previously been recognised as assets; or the initial
recognition of intangible assets at amounts other than cost.

3.2.10 Amortization
The amortization amount of an intangible asset with a finite useful life shall be allocated on a systematic basis over its
useful life. Amortisation begin when the asset is available for use, ie when it is in the location and condition necessary
for it to be capable of operating in the manner intended by management. Amortisation cease at the earlier of the date
that the asset is classified as held for sale and the date that the asset is derecognised. An intangible asset with an
indefinite useful life is not amortised.

Sl. no. Category Useful lives

1 SAP Software 25
2 CRM Software 10

3.2.11 Derecognition of Intangible Assets

The carrying amount of an item of intangible assets is derecognised on disposal or when no future economic benefits
are expected from its use or disposal. The gain or loss arising from the derecognition of an item of intangible assets is
included as other income in profit or loss when the item is derecognised. When the revalued assets are disposed off,
the respective revaluation surplus is transferred to retained earnings.

3.3 RIGHT-OF-USE ASSET

The Company recognises a right-of-use asset at the lease commencement date. The right-of-use asset is initially
measured at cost, and subsequently at cost less any accumulated depreciation and impairment losses, and adjusted
for certain remeasurements of the lease liabilities. When a right-of-use asset meets the definition of investment
property, it is presented in investment property. The right-of-use asset is initially measured at cost, and subsequently
measured at fair value, in accordance with the Company’s accounting policies.

3.4 FINANCIAL INSTRUMENTS

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity
instrument of another entity. IFRS 9 sets out requirements for recognising and measuring financial assets, financial
liabilities and some contracts to buy or sell non-financial items. This standard replaces IAS 39 Financial Instruments:
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Recognition and Measurement.

The details of new significant accounting policies and the nature and effect of the changes to previous accounting
policies are set out below.

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 3.4.1 Recognition and initial measurement

IFRS 9 largely retains the existing requirements in IAS 39 for the classification and measurement of financial liabilities.
However, it eliminates the previous IAS 39 categories for financial assets of held to maturity, loans and receivables and
available for sale.

Trade receivables and debt securities issued are initially recognised when they are originated. All other financial assets
and financial liabilities are initially recognised when the Company becomes a party to the contractual provisions of the
instrument.

A financial asset (unless it is a trade receivable without a significant financing component) or financial liability is
initially measured at fair value plus, for an item not at FVTPL, transaction costs that are directly attributable to its
acquisition or issue. A trade receivable without a significant financing component is initially measured at the
transaction price.

3.4.2 Classification and subsequent measurement

Financial assets – Policy applicable from 1 July 2018

On initial recognition, a financial asset is classified as measured at: amortised cost; FVOCI – debt investment; FVOCI –
equity investment; or FVTPL.

Financial assets are not reclassified subsequent to their initial recognition unless the Company changes its business
model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the
first reporting period following the change in the business model.

A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at
FVTPL:

■ it is held within a business model whose objective is to hold assets to collect contractual cash flows; and
■ its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest
on the principal amount outstanding.

A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL:

■ it is held within a business model whose objective is achieved by both collecting contractual cash flows and
selling financial assets; and
■ its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest
on the principal amount outstanding.

On initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect to
present subsequent changes in the investment’s fair value in OCI. This election is made on an investment-
by-investment basis.

All financial assets not classified as measured at amortised cost or FVOCI as described above are measured at FVTPL.
This includes all derivative financial assets. On initial recognition, the Company may irrevocably designate a financial
asset that otherwise meets the requirements to be measured at amortised cost or at FVOCI as at FVTPL if doing so
eliminates or significantly reduces an accounting mismatch that would otherwise arise.

i. Financial assets – Business model assessment: Policy applicable from 1 July 2018
The Company makes an assessment of the objective of the business model in which a financial asset is held at a
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portfolio level because this best reflects the way the business is managed and information is provided to
management. The information considered includes:

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■ the stated policies and objectives for the portfolio and the operation of those policies in practice. These include
whether management’s strategy focuses on earning contractual interest income, maintaining a particular
interest rate profile, matching the duration of the financial assets to the duration of any related liabilities or
expected cash outflows or realising cash flows through the sale of the assets;

■ how the performance of the portfolio is evaluated and reported to the Company's management; the risks that
affect the performance of the business model (and the financial assets held within that business model) and
how those risks are managed;

■ how managers of the business are compensated – e.g. whether compensation is based on the fair value of the
assets managed or the contractual cash flows collected; and

■ the frequency, volume and timing of sales of financial assets in prior periods, the reasons for such sales and
expectations about future sales activity.

Financial assets – Subsequent measurement and gains and losses: Policy applicable from 1 July 2018

Financial assets at FVTPL Financial assets at amortised cost

These assets are subsequently measured These assets are subsequently measured
at fair value. Net gains and losses, at amortised cost using the effective
including any interest or dividend income, nterest method. The amortised cost is
are recognised in profit or loss. reduced by impairment losses. Interest
income, foreign exchange gains and losses
and impairment are recognised in profit or
loss. Any gain or loss on derecognition is
recognised in profit or loss.

Debt investments at FVOCI Equity investments at FVOCI

These assets are subsequently measured at These assets are subsequently measured
fair value. Interest income calculated using at fair value. Dividends are recognised as
the effective interest method, foreign income in profit or loss unless the
exchange gains and losses and impairment dividend clearly represents a recovery of
are recognised in profit or loss. Other net part of the cost of the investment. Other
gains and losses are recognised in OCI. On net gains and losses are recognised in OCI
derecognition, gains and losses accumulated and are never reclassified to profit or loss.
in OCI are reclassified to profit or loss.

Financial assets includes cash and cash equivalents, trade and other receivables and short term investment.

a) Cash and cash equivalents

Cash and cash equivalents comprise cash balances and all cash deposits with maturities of three months or less
that are subject to an insignificant risk of changes in their fair value, and are used by the Company in the
management of its short-term commitments.

b) Trade and other receivables

Trade and other receivables are recognised initially at fair value. Subsequent to initial recognition they are
measured at amortised cost using the effective interest method, less any impairment losses.
Printed on Bashundhara Paper

c) Short-term investment
Short-term investment consists of fixed deposits with original maturity of more than three months. The Company
has the positive intent and ability to hold FDR to maturity, and such financial assets are carried as financial assets at

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 amortised cost. Held-to-maturity financial assets are recognised initially at fair value plus any directly attributable
transaction costs. Subsequent to initial recognition, held-to-maturity financial assets are measured at amortised
cost using the effective interest method, less any impairment losses.

ii. Financial liability

All financial liabilities are recognised initially on the transaction date at which the Company becomes a party to
the contractual provisions of the liability.

The Company derecognises a financial liability when its contractual obligations are discharged or cancelled or
expired.

Financial liabilities include loans and borrowings, finance lease obligation, accounts payables and other payables

a) Finance lease obligation

Leases in terms of which the entity assumes substantially all the risks and rewards of ownership are classified as
finance leases. Upon initial recognition the leased asset is measured at an amount equal to the lower of its fair
value and the present value of minimum lease payments. Subsequent to initial recognition, the asset is accounted
for in accordance with the accounting policy applicable to that asset. Incremental borrowing rate has been used
to calculate the present value of minimum lease payments.

b) Loans and borrowings

Principal amounts of the loans and borrowings are stated at their amortised amount. Borrowings repayable after
twelve months from the date of statement of financial position are classified as non-current liabilities whereas the
portion of borrowings repayable within twelve months from the date of statement of financial position, unpaid
interest and other charges are classified as current liabilities.

c) Trade and other payables

The Company recognises a trade and intercompany payables 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 economic benefits.

3.5 IMPAIRMENT OF FINANCIAL ASSETS

IFRS 9 replaces the ‘incurred loss’ model in IAS 39 with an ‘expected credit loss’ (ECL) model. The new impairment
model applies to financial assets measured at amortised cost, contract assets and debt investments at FVOCI, but not
to investments in equity instruments.

a) Financial assets
The Company recognises loss allowances for ECLs on:
■ financial assets measured at amortised cost;
■ debt investments measured at FVOCI; and
■ contract assets.

Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount of the
assets.

The Company measures loss allowances at an amount equal to lifetime ECLs, except for the following, which are
measured at 12-month ECLs:

■ debt securities that are determined to have low credit risk at the reporting date; and
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■ other debt securities and bank balances for which credit risk (i.e. the risk of default occurring over the expected
life of the financial instrument) has not increased significantly since initial recognition.

Loss allowances for trade receivables and contract assets are always measured at an amount equal to lifetime ECLs.

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 The financial assets at amortised cost consist of trade receivables, cash and cash equivalents, and corporate debt
securities. The Company measures loss allowances at an amount equal to ECL from trade receivables.

When determining whether the credit risk of a financial asset has increased significantly since initial recognition and
when estimating ECLs, the Company considers reasonable and supportable information that is relevant and available
without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on
Company’s historical experience and informed credit assessment and including forward-looking information.

BPML considers a financial asset to be in default when the debtor is unlikely to pay its credit obligations to the
company in full, without recourse by BPML to actions such as realising security (if any is held).

Measurement of Expected Credit Losses (ECL)

ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash
shortfalls (i.e. the difference between the cash flows due to the entity in accordance with the contract and the cash
flows that the company expects to receive). ECLs are discounted at the effective interest rate of the financial asset.

At each reporting date, the company assesses whether financial assets carried at amortised cost and debt securities
at FVOCI are credit-impaired. A financial asset is ‘credit-impaired’ when one or more events that have a detrimental
impact on the estimated future cash flows of the financial asset have occurred.

b) Non-financial assets

The carrying amounts of the Company's non-financial assets (other than inventories) are reviewed at each reporting
date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s
recoverable amount is estimated in order to determine the extent of impairment loss (if any). Where it is not possible
to determine the recoverable amount of an individual asset, the Company estimates the recoverable amount of the
Cash Generating Unit (CGU) to which the asset belongs. An impairment loss is recognised if the carrying amount of
an asset or its CGU exceeds its recoverable amount.

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 pretax discount rate that
reflects current market assessments of the time value of money and the risks specific to the asset or CGU.

Impairment losses are recognised in profit or loss. An impairment loss is reversed only to the extent that the asset's
carrying amount does not exceed the carrying amount that would have been determined, net of depreciation, if no
impairment loss had been recognised.

3.6 INVENTORIES
Inventories are measured at the lower of cost and net realizable value. The cost of inventories is based on the weighted
average principle, 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-process, cost includes an appropriate share of production overheads based on normal operation capacity.
Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of
completion and selling expenses.
Inventory losses and abnormal losses are recognized as expenses. Basis for valuation of inventories are as under:

Category Basis of valuation

Finished goods and Work-in-process At the lower of cost and net realizable value. The cost includes expenditure
incurred in acquiring the inventories, production or conversion costs and
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other costs incurred in bringing them to their existing location and

condition.

Raw and packing materials At the lower of cost and net realizable value.

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 Stores and spares At the lower of weighted average cost and net realizable value.
Materials and stores in-transit At cost including related charges.

3.7 CAPITAL WORK-IN-PROGRESS

Capital work-in-progress is recorded at cost to the extent of expenditure incurred up to the date of statements of
Financial Position. Upon completion of construction, the cost of such assets together with the cost directly
attributable to construction, including capitalised borrowing costs are transferred to the respective class of asset. No
depreciation is charged on capital work in progress.

3.8 PROVISION
Provisions are recognized in the statement of financial position when the Company has a present obligation (legal or
constructive) as a result of a past event, it is probable that the Company will be required to settle the obligation, and a
reliable estimate can be made of the amount of the obligation.
The amount recognized as a provision is the best estimate of the consideration required to settle the present
obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the
obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying
amount is the present value of those cash flows (when the effect of the time value of money is material)
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third
party, a receivable is recognized as an asset if it is virtually certain that reimbursement will be received and the amount
of the receivable can be measured reliably.

3.9 CONTINGENT LIABILITIES AND CONTINGENT ASSETS AND COMMITMENTS

Contingent liabilities are disclosed in respect of possible obligations that arise from past events but their existence will
be confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the
control of the company. A provision is made based on a reliable estimate when it is probable that an outflow of
resources embodying economic benefits will be required to settle an obligation and in respect of which a reliable
estimate can be made. Provision is not discounted and is determined based on best estimate required to settle the
obligation at the year-end date. Contingent assets are not recognized or disclosed in these financial statements.
Details are given in note no. # 38.

3.10 INCOME TAX EXPENSES

Income tax expense comprises current and deferred tax. Income tax expense is recognized in the statement of profit
or loss and other comprehensive income account except to the extent that it relates to items recognized directly in
equity, in which case it is recognized in equity.

3.10.1 Current Tax

Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantially
enacted at the reporting date, and any adjustment to tax payable in respect of previous years. The applicable tax rate
for the company is 25% (2018-2019: 25%). Provision for taxation has been made on the basis of the Finance Act, 2020.

3.10.2 Deferred Tax

Deferred tax is recognized using the balance sheet method. Deferred tax arises due to temporary difference
deductible or taxable for the events or transactions recognized in the income statement. A temporary difference is the
difference between the tax bases of an asset or liability and its carrying amount/reported amount in the balance sheet.
Deferred tax asset or liability is the amount of income tax recoverable or payable in future period's recognized in the
current period. The deferred tax asset /income or liability/expense does not create a legal liability/recoverability to and
from the income tax authority. The Company recognized deferred tax on temporary difference arose from
depreciation on property, plant & equipment, difference for vehicle, intangible assets and pre-operating expenses.

Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and
Printed on Bashundhara Paper

assets, and they relate to taxes levied by the same tax authority on the same taxable entity, or on different tax entities,
but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised
simultaneously.

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 A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences, to the extent
that it is probable that future taxable profits will be available against which they can be utilised. 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.

3.11 EMPLOYEE BENEFIT

3.11.1 Defined contribution plan (provident fund)

Defined contribution plan is a post-employment benefit plan under which the Company provides benefits for all of its
permanent employees. The recognized Employees' Provident Fund is being considered as defined contribution plan
as it meets the recognition criteria specified for this purpose. All permanent employees contribute 10% of their basic
salary to the provident fund and the Company also makes equal contribution. This fund is recognized by the National
Board of Revenue (NBR) vide Letter No. fwetZtAbzt(emzÜiv)/e…KBD/2015-2016/2312(3) dated 29 February 2016.
The Company recognizes contribution to defined contribution plan as an expense when an employee has rendered
required services. The legal and constructive obligation is limited to the amount it agrees to contribute to the fund.
Obligations are created when they are due.
3.11.2 Defined benefit plan (gratuity)
A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The employee
gratuity plan is considered as defined benefit plan as it meets the recognition criteria. The company’s obligation is to
provide the agreed benefits to current and former employees. This fund is recognized by the National Board of
Revenue (NBR) vide ¯gviK bs-08.01.0000.035.02.0022.2017/75 ZvwiLt 07/09/2017 wL«t. The net defined benefit liability (asset) is
made up of:
a. the present value of defined benefit obligation; less
b. the fair value of plan assets; adjusted for
c. any effect of limiting a net defined benefit asset to the asset ceiling.

The Company operates an unfunded gratuity scheme for its permanent employees, under which an employee is
entitled to the benefits depending on the length of services and last drawn basic salary. The Company calculated the
provisions for maximum exposures as at the reporting date for all eligible employees. Gratuity payable at the end of
each year is determined on the basis of following rules and regulations of the company:

Service length (Years) Payment basis

0 < 10 Nill
10 30 days basic salary/ wages for every completed year of service
>10 45 days basic salary/ wages for every completed year of service
The expected cost of this benefit is included in respective annual statement of profit or loss and other comprehensive
income over the period of employment.

3.11.3 Group insurance scheme

The Company operates a group insurance scheme for its permanent employees. Insurance premium is being
charged to statement of profit or loss and other comprehensive income.

3.11.4 Short-term employee Benefits

Short-term employee benefits include salaries, bonuses etc. Obligations for such benefits are measured on an
undiscounted basis and are expensed as the related service is provided.

3.12 WORKERS' PROFIT PARTICIPATION AND WELFARE FUND

This is made in terms of section 234(1)(b) of Bangladesh Labour Law (Amendment) Act 2013, 5% of the net profit of
Printed on Bashundhara Paper

each year, not later than nine (9) months from the close of that period, is required to be transferred to the Fund, the
proportion of the payment to the Participation Fund and the Welfare Fund being 80:10. The remaining 10% of the
amount of net profit shall be paid by the Company to the Workers' Welfare Foundation Fund, as formed under the
provision of the Bangladesh Worker's Welfare Foundation Act, 2006.

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 3.13 FOREIGN CURRENCY TRANSACTIONS
Foreign currency transactions are recorded at the applicable rates of exchange ruling at the transactions date.

The monitory assets and liabilities, if any, denominated in foreign currencies at the balance sheet date are translated
at the applicable rates of exchanges ruling at that date. Exchange differences are charged off as revenue expenditure/
income in compliance with the provision of IAS 21: The Effects of Changes in Foreign Exchange Rates.

3.14 REVENUE RECOGNITION

IFRS 15 establishes a comprehensive framework for determining whether, how much and when revenue is
recognized. It replaces existing revenue recognition guidance, including IAS 18 Revenue, IAS 11 Construction Contracts
and IFRIC 13 Customer Loyalty Programmes. IFRS 15 is effective for annual reporting periods beginning on or after 1
January 2018, with early adoption permitted.

3.14.1 Sales of goods

Under IFRS 15, revenue will be recognised when a customer obtains control of the goods.

Revenue will be recognised for the contracts to the extent that it is probable that a significant reversal in the amount
of cumulative revenue recognised will not occur. As a consequence, for those contracts for which the Company is
unable to make a reasonable estimate of return, revenue is expected to be recognised sooner than when the return
period lapses or a reasonable estimate can be made.

Based on the Company’s assessment, the timing of revenue recognition from sale of goods are broadly similar.
Therefore, the Company does not expect the application of IFRS 15 to result in significant differences in the timing of
revenue recognition for these sales.

3.14.2 Rendering of services

Under IFRS 15, the total consideration in the service contracts will be allocated to all services based on their
stand-alone selling prices. The stand-alone selling prices will be determined based on the list prices at which the
Company sells the services in separate transactions.

Based on the Company’s assessment, the fair value and the stand-alone selling prices of the services are broadly
similar. Therefore, the Company does not expect the application of IFRS 15 to result in significant differences in the
timing of revenue recognition for these services.

3.14.3 Construction contracts

Contract revenue currently includes the initial amount agreed in the contract plus any variations in contract work,
claims and incentive payments, to the extent that it is probable that they will result in revenue and can be measured
reliably. When a claim or variation is recognised, the measure of contract progress or contract price is revised and the
cumulative contract position is reassessed at each reporting date.

Under IFRS 15, claims and variations will be included in the contract accounting when they are approved.

The Company does not expect the application of IFRS 9 and IFRS 15 to have a significant impact on its financial
statements.

The Company recognises as revenue the amount that reflects the consideration to which the Company expects to be
entitled in exchange for goods or services when (or as) it transfers control to the customer. To achieve that core
principle, this standard establishes a five-step model as follows:

■ Identify the contract with a customer;

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■ Identify the performance obligations in the contract;

■ Determine the transaction price;
■ Allocate the transaction price to the performance obligations in the contract; and
■ Recognise revenue when (or as) the entity satisfies a performance obligation

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 Considering the five steps model, the Company recognises revenue when (or as) the Company satisfies a
performance obligation by transferring a promised good to a customer. Goods is considered as transferred when (or
as) the customer obtains control of that goods. Revenue from sale of goods is measured at the fair value of the
consideration received or receivable net of returns and allowances, trade discounts, rebates and Value Added Tax
(VAT).

Interest income on bank deposits and short-term investments is recognized on accrual basis.
Other income is recognized on receipt or due basis.

3.15 BORROWING COSTS

Interest and other incurred by the company in respect of borrowing of fund are recognized as expenses in the year in
which they incurred unless the activities that are necessary to prepare the qualifying assets for its intended use are in
progress. Finance expenses comprise interest expense on bank loan, finance lease and other borrowings. All
borrowing costs are recognized in the statement of profit or loss and other comprehensive income using effective
interest method. Expenses capitalized also include applicable borrowing cost considering the requirement of IAS 23:
Borrowing Costs.

3.15.1 Recognition
The company capitalises borrowing costs that are directly attributable to the acquisition, construction or production
of a qualifying asset as part of the cost of that asset. BPML recognises other borrowing costs as an expense in the year
in which it incurs them.

3.15.2 Borrowing Costs Eligible for Capitalization

The borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset
are those borrowing costs that would have been avoided if the expenditure on the qualifying asset had not been
made.
To the extent that the company borrows funds specifically for the purpose of obtaining a qualifying asset, BPML
determines the amount of borrowing costs eligible for capitalisation as the actual borrowing costs incurred on that
borrowing during the year less any investment income on the temporary investment of those borrowings.

3.15.3 Commencement of Capitalization

BPML begins capitalising borrowing costs as part of the cost of a qualifying asset on the commencement date. The
commencement date for capitalisation is the date when the company first meets all of the following conditions:
⁄ it incurs expenditures for the asset;
⁄ it incurs borrowing costs; and
⁄ it undertakes activities that are necessary to prepare the asset for its intended use or sale. Cessation of capitalization
BPML ceases capitalising borrowing costs when substantially all the activities necessary to prepare the qualifying
asset for its intended use or sale are complete.

3.16 SHARE CAPITAL

Proceeds from issuance of ordinary shares are recognized as share capital in equity when there is no contractual
obligation to transfer cash or other financial assets.

3.17 DIVIDEND TO THE EQUITY HOLDERS

The Company recognises a liability to make cash dividend when the distribution is authorised and the distribution is
no longer at the discretion of the Company. As per the corporate laws in Bangladesh, a distribution is authorised when
it is approved by the shareholders. A corresponding amount is recognised directly in equity.
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3.18 STATEMENT OF CASH FLOWS

Statement of Cash Flows has been prepared in accordance with International Accounting Standards IAS-7: Statement
of Cash Flows”. Cash flow from operating activities has been presented under direct method.

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 3.19 STATEMENT OF CHANGES IN EQUITY
Statement of changes in equity has been prepared in accordance with International Accounting Standards IAS-1:
Presentation of Financial Statements.

3.20 EARNINGS PER SHARE

The Company presents its basic earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated by
dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of
ordinary shares outstanding during the year.

Basic Earnings per Share (Numerator/Denominator)

Earnings (Numerator)
This represents earning for the year attributable to ordinary shareholders.

No. of Ordinary shares (Denominator)

This represents weighted average number of ordinary share outstanding during the year.

Diluted Earnings per Share

Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted
average number of ordinary shares outstanding for the effects of all dilutive potential ordinary shares, if any.

3.21 RELATED PARTY TRANSACTIONS

As per International Accounting Standards IAS-24: Related Party Disclosures, parties are considered to be related if
one of the party has the ability to control the other party or exercise significant influence over the other party in
making financial and operating decisions. The Company carried out transactions in the ordinary course of business on
an arm’s length basis at commercial rates with its related parties which have been given in note no. 41.00.

3.22 SEGMENT REPORTING

A segment is a distinguishable component of the Company that is engaged either in providing related products or
services (business segment), or in providing products or services within a particular economic environment
(geographical segment), which is subject to risks and rewards that are different from those of other segments. The
Company's primary format for segment is based on business segments.

3.23 OFFSETTING
Financial assets and liabilities are offset and the net amount is reported in the financial statements only when there is
legally enforceable right to set-off the recognized amounts and the company intends either to settle on a net basis, or
to realize the assets and to settle the liabilities simultaneously.

3.24 MATERIALITY 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.

3.25 GOING CONCERN

The Board of Directors are convinced after making appropriate enquiries at the time of approving the financial
statements the company has adequate resources to carry out its operational existence for the foreseeable future. It is
therefore appropriate to adopt going concern basis in preparing the financial statements.
The management do not see any issue with respect to going concern due to recent pandemic COVID-19. Besides, the
management is not aware of any other material uncertainties that may cast significant doubt upon the Company's
ability to continue as a going concern, which is most unlikely though yet considering overall perspectives.
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3.26 ACCRUAL BASIS OF ACCOUNTING

BPML prepares its financial statements, except for cash flow information, using the accrual basis of accounting. Since

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the accrual basis of accounting is used, the company recognizes items as assets, liabilities, equity, income and expenses (the
elements of financial statements) when they satisfy the definitions and recognition criteria for those elements in the
Framework.

3.27 CHANGES IN ACCOUNTING POLICIES, ESTIMATES AND ERRORS

The effect of change in an accounting estimate shall be recognised prospectively by including it in profit or loss in:

⁄ the period of the change, if the change affects that period only; or
⁄ the period of the change and future periods, if the change affects both.

To the extent that a change in an accounting estimate gives rise to changes in assets and liabilities, or relates to an
item of equity, it shall be recognised by adjusting the carrying amount of the related asset, liability or equity item in
the period of the change.

Changes in accounting policies and material prior period errors shall be retrospectively corrected in the first financial
statements authorized for issue after their discover by:

⁄ restating the comparative amounts for the prior period(s) presented in which the error occurred; or
⁄ if the error occurred before the earliest prior period presented, restating the opening balances of assets, liabilities
and equity for the earliest prior period presented.

3.28 RESPONSIBILITY FOR PREPARATION AND PRESENTATION OF FINANCIAL STATEMENT

The Board of Directors is responsible for the preparation and presentation of Financial Statements under section 183
of the Companies Act 1994 and as per provision of “The Framework for the Preparation and Presentation of Financial
Statements” issued by the International Accounting Standard Committee (IASC).

3.29 EVENTS AFTER REPORTING PERIOD

In compliance with the requirements of IAS-10: Events after the Reporting Period, post statement of financial position
events that provide additional information about the company’s position at the statement of financial position date
are reflected in the financial statement and events after the statement of financial position date that are not adjusting
event are disclosed in the notes when material.

3.30 COMPARATIVES, RECLASSIFICATION AND RESTATEMENT

3.30.1 These notes form an integral part of the annexed financial statements and accordingly are to be read in
conjunction therewith;

3.30.2 Figures appearing in these accounts have been rounded off to the nearest taka;

3.30.3 Previous year’s figures and account titles in the financial statements have been rearranged and reclassified, wherever
necessary for the purpose of comparison, without, however, creating any impact on the profit and value of assets and
liabilities as reported in the financial statements for the current year.
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 4.00 PROPERTY, PLANT AND EQUIPMENT Amount in Taka
30-Jun-20 30-Jun-19

1. Based on Cost:
A. Cost:
Opening Balance 15,239,687,497 10,005,200,142
Less: Transfer/ Disposal/ Reclassification during the year (112,803,043) (22,262,213)
Add: Addition during the year 3,141,744,959 5,256,749,567
Closing Balance 18,268,629,413 15,239,687,497
B. Accumulated depreciation:
Opening Balance 4,532,244,778 3,639,499,101
Less: Transfer/ Disposal/ Reclassification during the year (57,152,926) (2,225,710)
Add: Charged during the year 938,939,130 894,971,387
Closing Balance 5,414,030,981 4,532,244,778
C. Written down value on cost (A-B) 12,854,598,431 10,707,442,719
2. Based on Revaluation:
A. Cost:
Opening Balance 2,848,337,977 2,848,337,977
Less: Transfer/ Disposal during the year _ _
Add: Addition during the year _ _
Closing Balance 2,848,337,977 2,848,337,977
B. Accumulated depreciation:
Opening Balance 266,591,866 235,580,086
Less: Transfer/ Disposal during the year _ _
Add: Charged during the year 28,568,477 31,011,778
Closing Balance 295,160,343 266,591,865
C. Written down value on revaluation (A-B) 2,553,177,635 2,581,746,113
3. Written down value on cost and revaluation (1+2) 15,407,776,066 13,289,188,831
Details of property, plant & equipment are shown in 'Annexure-A'

4.01 During the year management of the Company carried out a review of the recoverable amount of the
manufacturing plant and other related assets. The review does not led to an impairment loss. The recoverable
amount of the relevant assets has been determined on the basis of their value in use. It also may mentioned here
that no indication of impairment was determined in the year 2018-2019 as well.

4.02 The company has been availing long term lease facility against use of 18.7709 acres land from East West Property
Development (Pvt.) Limited. All maintenance cost incurred during the year for the said land bear by BPML but
rent or any other cost regarding the use of land has not been bear in current or prior year's as per decision of the
both Companies management.

4.03 Depreciation begins when the asset is available for use and continues until the asset is derecognized.

5.00 INTANGIBLE ASSETS

A. Cost:
Opening Balance 189,627,705 189,627,705
Less: Transfer/ Disposal during the year - -
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Add: Addition during the year - -

Closing Balance 189,627,705 189,627,705

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 Amount in Taka
30-Jun-20 30-Jun-19

B. Accumulated amortization:
Opening Balance 22,829,378 15,213,651
Less: Transfer/ Disposal during the year _ _
Add: Charged during the year 8,003,735 7,615,726
Closing Balance 30,833,113 22,829,378
C. Written down value (A-B) 158,794,592 166,798,327

Details of Intangible assets are shown in 'Annexure- B'

6.00 RIGHT-OF-USE ASSETS

A. Cost:
Opening Balance _ _
Add: Reclassification on initial application of IFRS 16 as at 01 January 2019 111,791,600 _
Less: Addition during the year _ _
Closing Balance 111,791,600 _

B. Accumulated amortization:
Opening Balance _ _
Add: Reclassification on initial application of IFRS 16 as at 01 January 2019 56,620,476 _
Add: Charged during the yearr 14,002,104 _
Closing Balance 70,622,580 _
C. Written down value (A-B) 41,169,020 _

Details of right of use of assets are shown in 'Annexure- C'

7.00 CAPITAL WORK-IN-PROGRESS

A. Plant and machinery:

Opening Balance 1,445,471,202 1,337,539,088
Add: Addition made during the year 2,618,610,970 3,498,593,574
Less: Adjustment/transfer to appropriate asset category (3,118,444,425) (3,390,661,461)
Closing Balance 945,637,747 1,445,471,202
B. Factory building and other constructions:
Opening Balance 557,586,396 1,155,085,789
Add: Addition made during the year 489,091,262 752,436,887
Less: Adjustment/transfer to appropriate asset category (675,622,435) (1,349,936,279)
Closing Balance 371,055,224 557,586,396

C. Intangible assets (SAP Software):

Opening Balance 5,703,750 _
Add: Addition made during the year 11,508,750 5,703,750
Less: Adjustment/transfer to appropriate asset category (5,703,750) _
Closing Balance 11,508,750 5,703,750
D. Total (A+B+C) 1,328,201,720 2,008,761,348

8.00 INVESTMENT
Printed on Bashundhara Paper

Investment in shares (unquoted) 265,000,000 265,000,000

Total 265,000,000 265,000,000

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 8.01 This represents investments in 26,500,000O rdinary Share @ Tk. 10/- each of Bashundhara Industrial Complex
Limited, being sister concern of the company, is the owner of 6.63% shares of the company.
9.00 INVENTORIES Amount in Taka
30-Jun-20 30-Jun-19

Raw material 3,806,453,628 2,749,515,772

Finished goods 1,205,490,807 1,404,133,797
Stores and spare parts 998,492,809 938,762,100
Work-in-process 1,182,430,158 1,249,774,443
Material in transit 271,875,000 1,524,214,090
Total 7,464,742,402 7,866,400,203

9.01 All stocks are good and it does not include any wastage and defective materials.
9.02 Management has been carried out a stock taking as on the close of the period and found all right in terms of quality
9.03 The cost of inventories recognized as an expense during the period in Statement of profit or loss and other
comprehensive income .
9.04 Inventories are valued at lower of cost or net realizable value. Net realizable value is based on estimated selling
price less any other cost anticipated to be incurred to make the sale .

10.00 TRADE & OTHER RECEIVABLES

Trade receivables 1,162,896,496 2,689,538,372

Other receivables 241,877,660 1,003,786,825
Total 1,404,774,156 3,693,325,197

10.01 Trade receivables: 1,162,896,496 2,689,538,372

Hygiene product 10,785,362 11,604,898
Paper product 709,175,185 2,097,834,873
Demy paper (2,540,060) (566,460)
Paper sack product 175,222,320 176,076,317
Tissue products 225,710,712 342,169,289
Export 44,542,978 62,419,456

10.01 Other receivables: 241,877,660 1,003,786,825

Bashundhara Industrial Complex Ltd. 336,593,134 518,598,596
Bashundhara Food & Beverage Industries Ltd. 1,680,701 1,680,701
Bashundhara Multi-Trading Ltd. 2,909,786 _
Bashundhara Amusement Park Ltd. 1,650,618 1,360,012
Bashundhara Glass Industries Ltd. 3,000 3,000
Bashundhara Paper Mills Ltd.-Staff Provident Fund 764,072 _
Sundorban Industrial Complex Ltd. 1,120,887 1,120,887
Bashundhara Multi-Paper Industries Ltd. (204,159,343) 362,339,434
Bashundhara Industrial Economic Zone Ltd. (910,678) _
Cash incentive receivables 71,769,617 34,677,774
Interest receivable from FDR _ 68,506,421
East West Property Development (Pvt.) Ltd. 24,671,099 15,500,000
East West Media Group Ltd. 1,303,125 _
Pioneer Insurance Company Limited 4,481,643 _

10.03 Age of trade receivables that are past due but not impaired based on products basis are shown under:
30-Jun-20 0-90 days past due 90-180 days past due Dues over 6 months Total
Paper products 260,159,785 409,882,406 36,592,934 706,635,124
Tissue products 155,665,037 43,933,270 26,112,404 225,710,711
Printed on Bashundhara Paper

Hygiene products 2,429,122 1,133,798 7,222,442 10,785,362

Paper sack products 11,909,914 9,394,702 153,917,704 175,222,320
Export 40,201,744 8,970,577 (4,629,343) 44,542,978
Total 470,365,601 473,314,754 219,216,141 1,162,896,496

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Details of property, plant & equipment are shown in 'Annexure-A'

 30-Jun-19 0-90 days past due 90-180 days past due Dues over 6 months Total
Paper products 782,589,522 976,083,210 338,595,681 2,097,268,413
Tissue products 274,703,324 65,433,407 2,032,558 342,169,289
Hygiene products 5,794,427 264,118 5,546,353 11,604,898
Paper sack products 26,676,888 103,628,479 45,770,950 176,076,317
Export 53,681,594 6,371,905 2,365,957 62,419,456
Total 1,143,445,755 1,151,781,118 394,311,499 2,689,538,372

10.04 Disclosure as per Schedule-XI, Part -I, of The Companies Act, 1994 Amount in Taka
30-Jun-20 30-Jun-19
Maturity within 3 months 470,365,601 1,143,445,755
Maturity over 3 months but within 6 months 473,314,754 1,151,781,118
Maturity more than 6 months 219,216,141 394,311,499
Total 1,162,896,496 2,689,538,372
Debts considered Good & Secured 441,850,332 2,239,661,235
Debts considered Good without security - -
Debts considered doubtful & bad - -
Debts due by directors or other officers & staffs - -
Debts due from companies under same management 721,046,165 449,877,136
Maximum debt due by directors or officers & staffs at any time - -
Total 1,162,896,496 2,689,538,372

10.05 All amounts are short-term. The net carrying value of trade receivables is considered a reasonable approximation
of fair value.
10.06 There is no such trade receivable due by or to directors or other officers of the Company.
10.07 Management considered the receivables are collectable and thus no provision had been made for any receivable.

11.00 ADVANCES, DEPOSITS AND PREPAYMENTS

Advances:
Advance against advertisement 1,592,650 489,569
Advance against Legal and consultancy 3,180,000 2,580,000
Advance against insurance premium 412,214 1,108,770
Advance against land and land development NOTE 11.08 55,801,339 55,801,339
Advance against motor vehicle 239,826 391,826
Advance against rental vehicle - 755,000
Advance to employee 845,000 408,400
Advance to other expense 91,604,909 117,245,260
Advance to suppliers NOTE 11.09 75,109,660 77,792,208
Advance Tax 29,768 -
SD current account 49,363 49,363
VAT current account NOTE 11.10 19,146,264 11,091,163
Total advance 248,010,994 267,712,897
Deposit:
Bank guarantee margin NOTE 11.11 18,545,534 22,573,753
Deposit to Bangladesh Bank NOTE 11.12 150,000,000 150,000,000
Deposit to Finance Lease 1,644,495 1,644,495
L/C margin deposit NOTE 11.13 223,515,762 322,933,576
Printed on Bashundhara Paper

Security deposit NOTE 11.14 67,238,379 64,504,163

Total deposits 460,944,170 561,655,987
Total 708,955,164 829,368,883

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 Amount in Taka
30-Jun-20 30-Jun-19
11.01 These include dues realizable/adjustable within one year from
the balance sheet date 192,209,655 211,911,558
11.02 These include aggregate amount due by, executives,
managers, officers and staffs 845,000 408,400
11.03 The maximum aggregated amount due by executives,
managers, officers and staffs of the company at the end of 646,092 200,000
any month during the year
11.04 Advance recoverable in cash 845,000 408,400
11.05 Advance outstanding for a period exceeding six months 55,801,339 55,801,339

11.06 Disclosure as per Schedule-XI, Part -I, of The Companies Act, 1994

Advance, deposits & prepayments considered good & secured 707,464,072 828,760,483
Advance, deposit & prepayments considered Good without security - -
Advance, deposit & prepayments considered doubtful & bad - -
Advance, deposit & prepayments due by directors or other officers & staffs 845,000 408,400
Advance, deposit & prepayments due from companies under same
management - -
Maximum advance due by directors or officers & staffs at any time 646,092 200,000
Total 708,955,164 829,368,883

11.07 All advances and deposits amount are considered good and recoverable. There is no agreement amount
due fromdirectors or officers of the Company.
11.08 This represent advance paid for earth and sand filing and land purchase. The procured land will be transferred
to PPE when the registration will be completed.
11.09 Advance to suppliers due to advances given to suppliers for packing materials, spare parts, construction materials etc.
11.10 The company has no pending current liability for VAT. VAT current account showed positive balance
(advancepayment) as of 30 June 2020.
11.11 This represents the guarantee margins with different banks against guarantee provided by them favoring
suppliers and other parties.
11.12 Deposit to Bangladesh Bank represents amount of Tk. 150,000,000 (Fifteen Crore) paid in favour of the
Government of the Peoples Republic of Bangladesh during the Care Taker Government. A writ petition
(no # 8603 of 2009) was filed in this regard claiming the deposited money back in the High Court Division of the
Hon'ble Supreme court of Bangladesh. The Hon'ble Court was satisfied and issued a Rule Nisi on 31.12.2009 calling
upon the respondents including Bangladesh Bank to show cause as to why the claim of the respondent should
not be declared to have been passed without lawful authority and why the respondents should not be directed
to refund Tk. 15 crore in the bank account of BPML. The rule was made returnable within four weeks but the
respondents did not return back within the stipulated time.

However, the respondents made a civil petition for leave to appeal (Ref: appealno # 1174/2014) for stay operation of
the judgment and order dated 29.08.2012 passed by High Court Division in Write Petition No. 8603 of 2009 till
hearing of the leave petition by the Governor of Bangladesh Bank to Appellate Division of the Hon’ble Supreme
Court. The Appellate Division of the Hon’ble Supreme Court granted the prayer of Bangladesh Bank and stays the
order accordingly.

In the year 2017 the Supreme Court upheld the High Court verdict that asked the Government to return the said
money collected during the army-led caretaker government. A four-member Supreme Court bench headed by
chief Justice passed the order, after dismissing appeals of Bangladesh Bank challenging the HC verdict on March
Printed on Bashundhara Paper

16, 2017.

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 11.13 Break up of L/C margin deposit: Amount in Taka
30-Jun-20 30-Jun-29
Shahjalal Islami Bank Ltd. 21,970,439 20,888,258
Bank Asia Ltd. - 11,976,890
Social Islami Bank Ltd. 950,000 950,000
Standard Bank Ltd 17,430,723 12,832,202
IFIC Bank Ltd. 391,000 34,885,000
First Security Islami Bank Ltd. 43,458,109 28,345,000
Mercantile Bank Ltd. 20,852,000 1,423,000
South East Bank Ltd. 28,386,729 2,035,017
National Bank Ltd. 24,853,186 173,665,209
Trust Bank Ltd. 1,162,577 4,372,000
Al-Arafa Islami Bank Ltd. 64,061,000 31,561,000
223,515,762 322,933,576

11.14 Break up of Security Deposit: Amount in Taka

Name of Company/ Party Purpose 30-Jun-20 30-Jun-19
Titas Gas Co. Ltd. Supply of GAS 53,677,567 53,677,567
DESA Supply of Electricity 3,600,000 3,600,000
BTCL Telephone line 125,000 125,000
Rent-A-Car Transport support 152,000 152,000
Narayanganj Polli Bidyut Samity Supply of Electricity 534,000 534,000
Comilla polly Biddut Samity-1 Supply of Electricity 2,534,400 2,534,400
CSD Filling Station Gas filling for vehicle 75,000 75,000
Bangladesh Oxygen Ltd. Supply of Oxygen 40,000 40,000
Telecommunication Using sim card - 1,000
Abdul Goffur Bhuiyan Office Rent - 500,000
Pacific Bangladesh Telecom Limited Telecom Service 2,500 2,500
Ansar & VDP Munshigonj Security Service 490,134 490,134
Aktel Mobile Service 82,062 82,062
Different Institution Tender purpose 5,925,716 2,690,500
Total 67,238,379 64,504,163

12.00 ADVANCE INCOME TAX

Opening balance 374,697,109 548,937,062

Add: addition during the year, on: 109,262,362 70,831,934
Import of raw materials and machineries 54,435,601 40,287,970
Interest income 1,343,433 773,699
Sales 47,897,387 25,257,011
License, renewal and registration 3,514,000 3,330,000
Others 2,071,941 1,183,253
Less: adjusted during the year - (245,071,887)
Closing balance 483,959,471 374,697,109

12.01 Advance income tax paid during the year represents income tax deducted by customs authority on purchase of
raw materials, tax deducted by customers on bill for goods and service supply, tax deducted at source from export
sales, tax deducted at source from interest income etc.
12.02 Advance income tax paid will be setoff with provision for corporate tax to comply with IAS1 and IAS12 as and when
the assessment is completed.

13.00 INTER COMPANY CURRENT ACCOUNT

Bashundhara Airways Ltd. 157,671,902 155,665,588
Bashundhara Amusement Park Ltd. 21,197,872 18,628,585
Printed on Bashundhara Paper

Bashundhara Cement Industries Ltd. 2,518,436 12,318,436

Bashundhara Infrastructure Development Ltd. 3,281,222 3,281,222
Bashundhara Food & Beverage Industries Ltd. 4,065,831 18,965,831

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 Bashundhara Fine Paper Mills Ltd. 800,000 800,000
Bashundhara Industrial Complex Ltd. (164,966,492) (118,506,492)
Bashundhara Glass Industries Ltd. 1,371,500 1,371,500
Bashundhara Industrial Economic Zone Ltd. 107,749,300 73,849,300
Bashundhara Multi-Paper Industries Ltd. 34,689,441 (108,009,373)
Bashundhara Multi Trading Ltd. (5,243,150) -
Bashundhara Steel & Engineering Ltd. 57,390,293 58,490,293
Bashundhara Chemical Industries Ltd. (7,680,000) (12,480,000)
East West Media Group Ltd. 140,228,346 139,422,265
Meghna Cement Mills Limited 54,363,621 54,363,621
Toggi Services Ltd. 72,300,000 52,300,000
Toggi Real Estate & Construction Ltd. 1,250,000 1,250,000
Sundarban Industrial Complex Ltd. 7,367,465 4,340,289
Total 488,355,587 356,051,064

13.01 Inter company receivables/ (payables) represents short term financialfacility arrangemen tavailed from/ given to it
ssister companies. Similarly the company has payables to it ssister concerns an amount of Tk. 691,738,143 (Ref:
Note: 22).
13.02 All receivables/ (payables) will be realized/ paid shortly.

14.00 CASH AND BANK EQUIVALENTS

For the purposes of the statement of cash flows, cash and bank equivalents include cash on hand and in banks. Cash and
bank equivalents at the end of the reporting period as shown in the statement of cash flows can be reconciled to the related
items in the statement of financial position as follows:

Cash in hand 29,636,725 29,384,396

Investment in FDR - 1,075,020,000
Bkash Account 12,000 -
Cash at bank 251,341,517 232,250,395
Current deposit 217,284,809 173,588,105
Short term bank deposits (STD) 34,056,707 58,662,290
Cash and bank balances in the statement of cash flows 280,990,242 1,336,654,791
All bank balances are reconciled with bank statements.

15.00 SHARE CAPITAL

As per the disclosure requirements laid down in schedule under the rule 12(2) of the Securities and Exchange Rules 1987, the
followings are the part and parcel of share capital:

Amount in Taka
30-Jun-20 30-Jun-29
Authorized share capital:
500,000,000 nos. ordinary shares of Taka 10 each. 5,000,000,000 5,000,000,000

Issued, subscribed & paid up:

173,791,441 nos. ordinary shares of Taka 10 each issued and fully 1,737,914,410 1,737,914,410
paid-up in cash.
Total 1,737,914,410 1,737,914,410

15.01 Movement of share capital:

Printed on Bashundhara Paper

Opening balance 1,737,914,410 1,737,914,410

Issuance of ordinary shares during the year - -
Closing balance 1,737,914,410 1,737,914,410

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 15.01 Movement of share capital: Amount in Taka
30-Jun-20 30-Jun-29
Opening balance 1,737,914,410 1,737,914,410
Issuance of ordinary shares during the year - -
Closing balance 1,737,914,410 1,737,914,410

15.02.1 Position of shareholding

30-Jun-20 30-Jun-20
Name of shareholders Percentages of Percentages of
Nos. of Shares Nos. of Shares
holdings holdings
Mr. Ahmed Akbar Sobhan 4,000,000 2.30% 4,000,000 2.30%
Mrs. Afroza Begum 5,885,200 3.39% 5,885,200 3.39%
Mr. Sadat Sobhan 8,203,000 4.72% 8,203,000 4.72%
Mr. Shafiat Sobhan 8,203,000 4.72% 8,203,000 4.72%
Mr. Sayem Sobhan 8,203,000 4.72% 8,203,000 4.72%
Mr. Safwan Sobhan 8,203,000 4.72% 8,203,000 4.72%
Mr. Md. Imrul Hassan 4,002,000 2.30% 4,002,000 2.30%
East West Property Development (Pvt.)
Ltd. Represented by-Mr. Md. Nazmul 101,050,575 58.14% 101,050,575 58.14%
Alam Bhuiyan
General public and institutions 26,041,666 14.98% 26,041,666 14.98%
Total 173,791,441 100% 173,791,441 100%

15.02.2 Classification of shareholder's by holding range

No of Share holders No of shares

30-Jun-20 30-Jun-19 30-Jun-20 30-Jun-19

1-500 shares 10,990 12,582 1,488,280 1,715,224

501 to 5,000 shares 3,431 3,845 6,183,233 6,760,033
5,001 to 10,000 shares 402 406 2,968,122 2,975,198
10,001 to 20,000 shares 211 236 2,975,638 3,325,912
20,001 to 30,000 shares 91 92 2,228,692 2,171,206
30,001 to 40,000 shares 24 27 819,454 916,993
40,001 to 50,000 shares 24 27 1,096,164 1,218,565
50,001 to 100,000 shares 31 36 2,214,559 2,598,112
100,001 to 1,000,000 shares 30 23 6,067,524 4,360,423
1,000,001 to 1,000,000,000 shares 7 7 147,749,775 147,749,775
Total 15,241 17,281 173,791,441 173,791,441

16.00 SHARE PREMIUM

Opening Balance 1,739,583,292 1,739,583,292
Add: Addition during the year - -
Less: Adjustment during the year - -
Closing Balance 1,739,583,292 1,739,583,292

16.01 In the year 2017-18 the Company issued 26,041,666 ordinary shares, from which 60% i.e. 15,625,000
ordinaryshares for Eligible Investors (EIs) at cut-off price of Tk.80.00 at apremium Tk.70 and remaining 40% i.e
Printed on Bashundhara Paper

10,416,667 ordinary shares at a1 0% discounted from the cut-off priceof Tk. 72.00 per share at a premium Tk. 62 for
General Public including NRB and Others totaling Tk. 2,000,000,000 (approx.)

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 17.00 REVALUATION RESERVE Amount in Taka
30-Jun-20 30-Jun-19
Opening Balance 2,092,726,250 2,112,514,322
Add: Increase arising on revaluation of properties - -
Less: Transferred to retained earnings (19,781,027) (19,788,072)
Closing Balance 2,072,945,223 2,092,726,250

18.00 RETAINED EARNINGS

Opening balance 1,910,028,348 1,959,489,520

Add: Profit attributable to the owners of the Company 285,836,735 291,848,486
Transferred from properties revaluation reserve 19,781,027 19,788,072
Less: Adjustment for current tax of prior years - (13,514,849)
Payment of dividend (39,062,499) (347,582,882)
Closing balance 2,176,583,611 1,910,028,348

19.00 LONG TERM BORROWINGS

Project Loan 507,281,520 606,111,135

Term loan 12,297,225,932 9,426,796,309
Total Long Term borrowings 12,804,507,452 10,032,907,444
Less: Current portion of long term borrowings (1,826,519,851) (1,635,247,853)
Due after one year 10,977,987,601 8,397,659,591

19.01 The details of bank loan arrangement is enumerated below:

Institution Particulars
Limit amount Project: Tk. 117.71 Crore; Project Block: Tk. 5.81 crore; LTR & LTR
Block : 45.34 Crore
Purpose To establish and support the project.
Security Project land at Sonargoan, Narayanganj and plant & machineries
Janta Bank Limited
Interest rate Fixed at respective contract dates.
Mode of Monthly installment
payment Project Loan
Type of Facility 30.06.2022
Validity Term loan: Tk. 223.26 Crore
Limit amount Importation of raw materials and spare parts
Purpose 316.5 decimal of land at block-I, J&K of BRA & 14,431 sft. 9th floor
Mercantile Bank Limited Security of BCDL.
Fixed at respective contract dates.
Interest rate Term loan
Type of Facility 10.10.2023
Validity Term Loan Tk. 99.76 Crore
Limit amount To retire import documents
Purpose 33,177 sft of level 16th, 17th, 18th of BCDL
Standard Bank Limited
Security Fixed at respective contract dates.
Interest rate Term Loan
Type of Facility 31.10.2023
Validity Tk. 148.54 crore
Limit amount To retire import documents.
Purpose 78,848.27 sft of level 1-8 (78,848 sft.) of BCDL and 702.51 decimal
Southeast Bank Limited Security of land at BRA.
Printed on Bashundhara Paper

Fixed at respective contract dates.

Interest rate Term loan
Type of Facility 28.03.2023

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 Institution Particulars
Limit amount Term loan: Tk. 54.52 crore
Purpose To meet working capital requirements.
Security 2.1160 acres of land at Bashundhara R/A.
BASIC Bank Limited
Interest rate Fixed at respective contract dates.
Type of Facility Term loan
Validity 01.04.2022
Limit amount Term loan: Tk. 141.97 crore
Purpose To meet working capital requirements.
Security 702.51 decimal of land at BRA and 78,848 sft of (8-11 office floor)
IFIC Bank Limited at BCDL
Interest rate Fixed at respective contract dates.
Type of Facility Term loan
Validity 30.06.2025
Limit amount Term loan: Tk. 202.98 crore
Purpose To meet working capital requirements.
Security 734.30 decimal of land at BRA and 1,195 decimal of land at
National Bank Limited Keranigonj.
Interest rate Fixed at respective contract dates.
Type of Facility Term loan
Validity 28.02.2024
Limit amount HPSM: Tk. 86 crore
Purpose To meet working capital requirements
Security 713.75 decimal of land at factory, 111.53 decimal of land at Khilkhet
Shahjalal Islami Bank Limited and 75.27 decimal land at Vatara.
Interest rate Fixed at respective contract dates.
Type of Facility Term loan
Validity 16.12.2022
Limit amount HPSM: Tk. 43 crore
Purpose To meet working capital requirements.
Security Post dated cheque of Tk. 43Cr., Hypothecation of 04 Nos. of
First Security Islami Bank Limited generator, Corporate Guarantee.
Interest rate Fixed at respective contract dates.
Type of Facility Term loan
Validity 24.03.2024
Limit amount Term Loan: Tk. 23.48 crore
Purpose To meet working capital requirements.
Bank Asia Limited Security 719.08 decimal of land at BRA
Interest rate Fixed at respective contract dates.
Type of Facility Term loan
Validity 30.11.2020

20.00 LEASE LIABILITIES Amount in Taka

30-Jun-20 30-Jun-19
Islamic Finance & Investment Ltd. 39,217,782 43,089,327
First Security Islami Bank Ltd. 410,186,979 -
GSP Finance Company (BD) Ltd. 41,445,722 101,109,292
Total lease liabilities 490,850,484 144,198,619
Printed on Bashundhara Paper

Less: Current portion of lease liabilities (147,813,607) (105,252,299)

Due after one year 343,036,876 38,946,320

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 20.01 Finance lease liabilities: Amount in Taka
Particulars 30-Jun-20 30-Jun-19
Not later than one year 191,111,799 33,570,288
Later than one year but not later than five years 377,332,349 123,176,699
Later than five years - -
568,444,148 156,746,987
Less: Future finance charge (77,593,664) (12,548,367)
Present value of minimum lease payments 490,850,484 144,198,620
Included in the financial statements as:
current borrowings 147,813,607 105,252,299
non-current borrowings 343,036,877 38,946,321
Total 490,850,485 144,198,620

20.02 The details of finance lease arrangement is enumerated below:

Institution Particulars
Limit amount Tk. 5.13 crore
Purpose Machinery and vehicle.
Security Machinery and Vehicle title/ownership.
Islamic Finance & Investment Interest rate Fixed at respective contract dates.
Limited Mode of payment Monthly installment
Type of Facility Finance Lease
Validity 20.03.2023
Limit amount Tk. 25.15 crore
Purpose Machinery
Security Machinery title/ownership.
Interest rate Fixed at respective contract dates.
GSP Finance Company (BD) Ltd. Mode of payment Monthly installment
Type of Facility Finance Lease
Validity 25.10.2020

21.00 DEFERRED TAX (ASSETS) / LIABILITIES

Deferred tax assets and liabilities have been recognized and measured in accordance with the provisions of IAS12:
Income Taxes. The following is the analysis of deferred tax (assets)/liabilities presented in the statement of financial
position:

Opening balance 1,076,753,353 957,392,014

Provided during the year: 112,372,044 119,361,339
Deferred tax income - (75,485,710)
Deferred tax expense NOTE 21.01 112,372,044 194,847,049
Adjustment made during the year - -
Closing balance 1,189,125,397 1,076,753,353

21.01 Temporary timing difference: Accounting base Temporary

Tax base
As at June 30, 2020 Carrying Amount Difference

Property, Plant and equipment 12,726,022,925 (8,004,050,536) 4,721,972,390

Right-of-use assets 41,169,020 (33,767,634) 7,401,386
Printed on Bashundhara Paper

Intangible assets 158,794,592 (124,129,432) 34,665,160

Pre-operating expenses - (56,841,355) (56,841,355)
Unused tax loss carry forward - (847,461,539) (847,461,539)

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 Difference for vehicle - (4,271,954) (4,271,954)
As at June 30, 2020
Net taxable temporary difference 12,925,986,537 (9,070,522,450) 3,855,464,087

Applicable tax rate 25%

Deferred tax liability-30 June 2020 963,866,022

Deferred tax liability-30 June 2019 (851,493,978)
Deferred tax expense/ (income) for the year 112,372,044

Accounting base Temporary

As at June 30, 2019 Tax base
Carrying Amount Difference

Property, Plant and equipment 10,627,228,338 (6,882,986,673) 3,744,241,665

Intangible assets 166,798,327 (137,948,293) 28,850,034
Pre-operating expenses - (59,833,006) (59,833,006)
Unused tax loss carry forward - (301,942,839) (301,942,839)
Difference for vehicle - (5,339,942) (5,339,942)
Net taxable temporary difference 10,794,026,665 (7,388,050,753) 3,405,975,913

Applicable tax rate 25%

Deferred tax liability-30 June 2019 851,493,978

Less: Deferred tax liability-30 June 2018 (732,132,639)
Deferred tax expense/ (income) for the year 119,361,339

21.02 Deferred tax (assets)/ liabilities in relation to:

Recognized in Other
Recognized in
Year Particulars Opening balance Comprehensive Closing balance
profit & loss
Income

Property, plant & equipment 936,060,415 244,432,681 - 1,180,493,096

Difference for vehicle (1,334,986) 266,997 - (1,067,988)
Intangible assets 7,212,509 1,453,781 - 8,666,290
30-Jun-20 Pre-operating expenses (14,958,251) 747,913 - (14,210,338)
Unused tax loss (75,485,710) (136,379,675) - (211,865,385)
Right-of-use assets - 1,850,347 - 1,850,347
Revaluation 225,259,375 - - 225,259,375
Total 1,076,753,353 112,372,044 - 1,189,125,396

Property, plant & equipment 744,275,706 191,784,709 - 936,060,415

Difference for vehicle* (1,668,732) 333,746 - (1,334,986)
Intangible assets 5,271,192 1,941,317 - 7,212,509
30-Jun-19 Pre-operating expenses (15,745,527) 787,276 - (14,958,251)
Unused tax loss - (75,485,710) - (75,485,710)
Revaluation 225,259,375 - - 225,259,375
Total 957,392,014 119,361,339 - 1,076,753,353

21.03 Difference for vehicle

Printed on Bashundhara Paper

Thisrepresentsthepermanentdifferencerelatedtosedancars,notplyingforhire,ownedbyBashundharaPaperMillsLimite
d.AspertheprovisionsofIncomeTaxOrdinance1984,depreciationonsuchcarsisallowedonlyuptocertainlimitofcost(curren
tlyTk.2,500,000percar)ofsuchcarsfortaxpurpose.Differenceforvehiclerepresentsthe amount of depreciated cost
exceeding such limits.

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 22.00 INTERCOMPANY PAYABLE Amount in Taka
30-Jun-20 30-Jun-19
East West Property Development (Pvt.) Ltd. 500,991,777 489,367,285
Bashundhara LP Gas Ltd. 190,746,366 190,746,366
Total 691,738,143 680,113,651

23.00 LONG TERM BORROWINGS-CURRENT PORTION

Bank loan 1,826,519,851 1,635,247,853
Finance Lease obligation 147,813,607 105,252,299
Total 1,974,333,458 1,740,500,152

23.01 This represents the amount will be payable in the next financial year was made in accordance with Para 60(b)
of IAS-1: "Presentation of Financial Statements".

24.00 SHORT TERM BORROWINGS

Cash Credit 1,060,021,437 2,315,475,866
Bai Murabaha 333,595,703 324,642,550
Force/ UPAS/Time/ Demand loan 1,166,096,413 5,236,933,514
LTR 566,908,822 207,179,047
3,126,622,374 8,084,230,977

24.01 Short term credit facilities available as at June 30, 2020:

The Company enjoys both funded and non funded short term working capital facilities. The non funded
facilities include Letters of Credit(L/C), Letters of Guarantee. The funded facilities include overdraft facility, short
term loan and import loan. The limit, purpose and security details of short term bank overdraft arrangement is
enumerated below:

Name of Bank Particulars

Limit amount CC: Tk. 30 Crore; L/C: Tk.70 crore
Purpose To meet working capital requirements.
Security 7.6220 acres of project land at Meghnaghat, Sonargoan, Narayan-
Agrani Bank Limited ganj & Plant & Machineries.
Interest rate Fixed at respective contract dates.
Type of Facility Cash Credit (CC) & L/C
Validity 31.03.2021
Limit amount LTR: Tk. 50 Crore; L/C Tk. 450 crore
Purpose To meet working capital requirements
Security i) 1195.69 decimal of land from BRP ii) Hypothecation of stock
National Bank Limited iii) 734.30 decimal of land from BRA.
Interest rate Fixed at respective contract dates.
Type of Facility CC (Hypo) LTR & L/C
Validity 28.02.2021
Limit amount OD: Tk. 15 Crore; LTR: Tk. 18 crore; L/C: Tk. 60 crore
Purpose To meet working capital requirements.
Security i) 719.08 decimal of land at BRA. Ii) Hypothecation of stock.
Bank Asia Ltd.
Interest rate Fixed at respective contract dates.
Type of Facility LTR, Demand Loan & L/C, OD
Validity 30.12.2020
Limit amount LTR: Tk. 30 crore; Bank Guarantee: Tk. 5 crore; L/C: Tk. 50 crore.
Purpose To meet working capital requirements. Capital machinery purchase.
Security 713.75 decimal of land at factory, 111.53 decimal of land at Khilkhet
and 75.27 decimal land at Vatara.
Printed on Bashundhara Paper

Shahjalal Islami Bank Ltd.

Interest rate Fixed at respective contract dates.
Type of Facility Bai-Muazzal (TR); WES Bill L/C, Bank Guarantee & LTR
Validity 31.07.2021

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 Name of Bank Particulars
Limit amount CC (Hypo): Tk. 56 crore; L/C: Tk. 22 Crore
Purpose To meet working capital requirements.
Security Hypothecation of stock; 7.3775 acres of project land at Anarpura,
Janata Bank Limited Gazaria, Munshigonj, 846.66 decimal land at BRA; 1,396.50
decimal of land at factory and Stock under pledge godown.
Interest rate Fixed at respective contract dates.
Type of Facility CC Hypo, LTR and L/C.
Validity 15.12.2020
Limit amount LTR: Tk. 160 crore; L/C (Sight/UPAS/ Deferred) Tk.525Crore; BG: 50
crore and FDBP: 50 crore.
Purpose To retirement of shipping documents/ import of capital machinery.
Security 78,848.27 sft of level 1-8 (78,848 sft.) of BCDL and 702.51 decimal
Southeast Bank Limited
of land at BRA.
Interest rate Fixed at respective contract dates.
Type of Facility LTR, BG, FDBP & L/C
Validity 31.05.2021
Limit amount Tk. 200 Crore
Purpose To retire import documents.
Standard Bank Limited Security 33,177 sift of level 16th, 17th, 18th of BCDL.
Interest rate Fixed at respective contract dates.
Type of Facility L/C
Validity 31.05.2021
Limit amount L/C: Tk. 350 Crore, Bai Muazzal Tk.115 Crore
Purpose To meet working capital requirements.
Social Islami Bank Limited Security 116.52 decimal of land at BRA.
Interest rate Fixed at respective contract dates.
Type of Facility L/C & Force Loan
Validity 31.08.2020
Limit amount L/C: Tk. 200 Crore & BG: Tk. 5 Crore
Purpose To meet working capital requirements.
Security 22,100 sift 11th & 19th floor of BCDL.
IFIC Bank Limited
Interest rate Fixed at respective contract dates.
Type of Facility L/C , Force Loan & BG
Validity 31.01.2021
Limit amount L/C: Tk. 220 Crore.& OD: Tk. 30 Crore
Purpose Importation of raw materials.
First Security Islami Bank LimitedInterest rate Fixed at respective contract dates.
Type of Facility L/C
Validity 31.07.2021
Limit amount L/C: Tk. 300 Crore; OD: Tk. 10 crore; BG: Tk. 1 crore
Purpose Importation of raw materials and spare parts.
Security 316.50 decimal of land at BRA & Level 9 (14,431sft.) of BCDL.
Mercantile Bank Limited
Interest rate Fixed at respective contract dates.
Type of Facility L/C, OD & BG
Validity 31.10.2020
Limit amount L/C: Tk. 75 Crore
Purpose Importation of raw materials and spare parts.
Rupali Bank Limited Security 277.44 decimal of land at BRA
Printed on Bashundhara Paper

Interest rate Fixed at respective contract dates.

Type of Facility L/C
Validity 29.08.2020

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 25.00 TRADE AND OTHER PAYABLES Amount in Taka
30-Jun-20 30-Jun-19
Trade Payable NOTE 25.01 726,395,237 1,416,588,233
Other Payable NOTE 25.02 849,862,711 880,125,262
Total 1,576,257,948 2,296,713,495

25.01 Trade Payables

Unit - 1 292,394,337 810,016,982
Unit - 2 67,774,721 176,179,816
Unit - 3 366,226,178 430,391,435
Total 726,395,237 1,416,588,233

25.1.1 This represents amount payable to regular suppliers of raw materials, chemicals, packing materials,s pareparts
etc. All suppliers were paid on a regular basis. No interest is charged on the trade payables. The Company has
financial risk management policies in place to ensure that all payables are paid within the pre-agreed credit terms.
25.1.2 The carrying values of trade payables are considered to be a reasonable approximation of fair value.

25.02 Other Payable

East West Media Group Ltd. - 35,721,783
Payable for advertisement 70,312,207 68,837,749
Payable for C & F bill 26,104,464 26,071,299
Payable for constructions expenses - -
Payable for consultancy 367,500 484,500
Payable for director remuneration 1,435,909 3,150,000
Payable for expenses 10,113,457 55,492,114
Payable for insurance premium 4,343,295 4,217,784
Payable for motor vehicle 840,036 3,192,300
Payable for office rent 1,843,250 2,883,450
Payable for provident fund 3,443,108 2,624,782
Payable for tax & VAT at source 12,786,804 18,428,571
Payable for VAT 7,008,501 -
Payable for transportation 331,751 689,811
Payable for workers' profit participation & welfare fund NOTE 34.00 74,805,337 82,332,767
Payable to carrying contractor 46,032,558 36,018,363
Payable to contractors 3,862,901 3,862,901
Payable for Electric bill 1,159,755 1,913,464
Payable for Gas bill 119,572,025 66,761,406
Payable for Labor & wages 33,492,684 38,955,912
Payable for Salary and allowances 124,617,556 126,530,266
Dividend Account-Unclaimed Portion 302,374,119 296,612,253
Unclaimed Subscription 315,494 343,787
Security deposit payable 4,700,000 5,000,000
Total 849,862,711 880,125,262

25.2.1 All accrued expenses are paid on regular basis.

25.2.2 Liabilities have arisen in the continuous process in course of business transactions and are either payable or
adjustable within very shortly from date of the Financial Position.
25.2.3 Salary and allowances for the month of June 2020 has been paid in subsequent month.
Printed on Bashundhara Paper

25.2.4 All the utility bills like gas, electricity and others for the month of June 2020 has been paid to the subsequent
month.

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26.00 PROVISION FOR EXPENSES Amount in Taka
30-Jun-20 30-Jun-19
Audit fees 270,000 225,000
Other expense 109,808,848 119,691,430
Finance Lease charges - 2,031,821
Gas bill - 3,895,822
Total 110,078,848 125,844,073

27.00 INCOME TAX PROVISION

Opening balance 265,231,842 430,553,349

Add: Current tax expense in respect of the current year 51,279,394 66,235,531
Less: Adjustment made during the year - (231,557,038)
Closing balance 316,511,236 265,231,842

27.01 Income tax adjustment of prior years

Adjustment made
Income Tax as Income Tax as
Income Year (Over)/under provision adjusted Income tax
per Accounts per Assessment AIT
with retained earnings provision

2017-2016 231,557,038 245,071,887 13,514,849 245,071,887 231,557,038

Total 231,557,038 245,071,887 13,514,849 245,071,887 231,557,038

27.02 Provision for Current Tax of the Company are as under:

Assessment Cumulative
Accounting Assessment Tax Demand/
Under Section of Status provision
year year (Refundable)
ITO 1984 for current tax
2018-2019 2019-2020 83(2) Assessment is underway 448,449 265,231,841
2017-2018 2018-2019 83(2)/156 Assessment is not Completed (6,705,157) 430,553,348

28.00 REVENUE FROM CONTRACTS WITH CUSTOMERS

Gross Sales 8,283,211,263 11,055,188,942
VAT (448,713,657) (435,504,614)
SD (28,307,975) (13,578,382)
Sales Local 7,806,189,631 10,606,105,946
Sales Export 738,273,857 433,020,634
Total 8,544,463,487 11,039,126,581

28.01 Segment revenues:

The following is an analysis of the Company's revenue including export sales from operations of its major
products and services by reportable segment for the year ended June 30, 2020 excluding VAT:

Products UNIT-1 UNIT-2 UNIT-3 Total

Paper product 2,415,690,968 942,037,566 1,482,074,657 4,839,803,191

Tissue product 312,095,097 - 1,870,776,568 2,182,871,665
Paper Sack product 73,761,676 - - 73,761,676
Mosquito Coil 5,197,100 - 38,338,633 43,535,733
Hygiene product - - 1,143,238,997 1,143,238,997
Printed on Bashundhara Paper

Local Sales 2,806,744,840 942,037,566 4,534,428,857 8,283,211,263

Export Sales 605,919,010 - 132,354,847 738,273,857
Total 3,412,663,850 942,037,566 4,666,783,704 9,021,485,119

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 In USD ($) In BDT
28.02 Revenue from export
30-Jun-20 30-Jun-19 30-Jun-20 30-Jun-19

Paper product 1,676,382 2,588,986 142,241,013 218,769,291

Tissue paper product 7,010,298 2,530,127 594,823,800 213,795,745
Hygiene product 14,249 5,392 1,209,043 455,598
Total 8,700,929 5,124,505 738,273,857 433,020,634

Proceeds frome xport sales are recognized in net off balance received through bank. Export Gain/ Loss on foreign
currency transactions are considered on realized basis.

29.00 COST OF SALES Amount in Taka

30-Jun-20 30-Jun-19
Opening stock of finished goods 1,404,133,797 1,012,008,949

Add: Cost of goods manufactured NOTE 29.01 6,468,234,882 9,332,492,347

Cost of goods available for sale 7,872,368,678 10,344,501,295
Less: Closing stock of finished goods (1,205,490,807) (1,404,133,797)
Cost of Sales 6,666,877,871 8,940,367,498

29.01 Cost of goods manufactured

Material Consumption 3,721,043,685 7,105,401,897
Opening stock 2,749,515,772 2,623,923,219
Add: Purchase during the year 4,777,981,541 7,230,994,450
Less: Closing stock (3,806,453,628) (2,749,515,772)

Factory overhead 2,679,846,912 2,701,840,983

Salary and allowances 658,279,302 619,666,022
Gas bill 714,155,879 494,281,322
Electricity bill 15,519,838 21,301,250
Labour and wages 161,581,186 408,981,333
Repair and maintenance 147,852,101 159,761,187
Other direct expenses NOTE 29.1.1 50,024,381 118,165,859
Depreciation Annex.-A 932,434,226 879,684,007
Add: Opening work in process 1,249,774,443 775,023,910
Less: Closing work in process (1,182,430,158) (1,249,774,443)
Total 6,468,234,882 9,332,492,347

29.1.1 Other direct expenses

Carriage inwards 1,971,496 3,684,051
Conveyance 770,990 1,585,938
Entertainment 1,962,417 2,293,303
License, renewal and registration 2,217,803 944,214
Office expense 1,567,794 4,660,068
Office repair & maintenance 344,700 243,660
Oil, fuel, CNG & lubricant 29,690,102 88,746,487
Company's contribution to PF 5,678,672 9,593,082
Inspection & consultancy - 900,000
Postage, telephone and fax 2,007,469 2,194,736
Rent, rates & taxes 2,591,255 2,451,499
Stationery 104,812 68,122
Utility bill 1,116,870 800,699
Printed on Bashundhara Paper

Total 50,024,380 118,165,859

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29.02 Analysis of materials consumed

Category Unit 30-Jun-20 30-Jun-19 30-Jun-20 30-Jun-19

Quantity Value

Waste Paper & Pulp MT 104,915 82,696 3,179,754,801 5,904,972,556

Chemicals MT 4,456 4,156 487,802,439 579,378,509
Packing materials Various - - 53,486,444 621,050,831
Total 109,371 86,852 3,721,043,684 7,105,401,897

29.03 Quantitative details of raw materials

Description Unit Opening Stock Purchase Consumption Closing Stock

30-Jun-20

Waste Paper & Pulp MT 37,424 86,682 104,915 19,192

Chemicals MT 4,048 5,777 4,456 5,369

Description Unit Opening Stock Purchase Consumption Closing Stock

30-Jun-19

Waste Paper & Pulp MT 27,796 92,324 82,696 37,424

Chemicals MT 3,347 4,857 4,156 4,048

**Packing materials quantities are not given due to its units are different like Pkt, Pcs, MT, Kgs etc.

29.04 Quantitative details of finished goods

Description Unit Opening Stock Purchase Sales Closing Stock

30-Jun-20
White writing & printing MT 4,246 18,299 20,402 2,143
Bidi paper MT 11 1,426 1,356 80
BBS MT 844 5,456 5,408 891
Coated paper MT 554 6,953 7,419 88
Newsprint MT 162 25,569 25,645 85
Carbon less coating paper MT 112 2,577 2,611 78
Glassine paper/Color/Ledger MT 136 - 13 -
Liner Paper MT 58 2,213 1,771 499
White Liner Paper MT 27 37 52 12
Packaging Paper MT 32 3,391 3,116 308
Simplex Paper MT - 0.05 0.05 -
Sludge Board MT - 206 206 -
Duplex Board MT 32 56 88 -
Paper Sack MT 91 543 543 91
Tissue product MT 1,284 30,794 30,531 1,546.56
Monalisa Sanitary Napkin KG 86,117 62,508 115,805 32,820
Tooth pick, cotton buds, straw etc PKT 4,584 69,077 67,654 6,007
Baby Diaper KG 84,349 77,415 133,357 28,407
Baby Diaper loose KG 6,647 26,391 27,664 5,374
Baby Diapant KG 111,647 2,819,337 2,566,394 364,590
Baby wet wipes KG 19,219 448,520 429,644 38,095
Wet Tissue PKT 16,559 10,296 16,855 10,000
Printed on Bashundhara Paper

Hand Gloves PKT 10,502 - - 10,502

Feeding Bottle PKT - 1,180,300 1,122,888 57,412
Xtreme Mosquito Coil PCS 53,889 1,938,912 1,887,880 104,921

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 Description Unit Opening Stock Production Sales Closing Stock
30-Jun-19
White writing & printing MT 3,474 19,475 18,702 4,247
Bidi paper MT 26 1,226 1,241 11
BBS MT 786 3,310 3,253 844
Coated paper MT 891 6,365 6,702 553
Newsprint MT 53 9,453 9,345 162
Carbon less coating paper MT 83 1,918 1,889 112
Glassine paper/Color/Ledger MT - 198 62 -
Liner Paper MT 246 368 556 58
White Liner Paper MT 38 1 12 27
Packaging Paper - 66 244 279 32
Simplex Paper - - 8 8 -
Sludge Board MT - 42 42 -
Duplex Board MT 32 41 41 32
Tissue product MT 1,228 17,746 17,684 1,290.00
Paper Sack Pcs. 50,000 3,293,275 3,268,275 75,000
PP Woven Bag Pcs. - - - -
Monalisa Sanitary Napkin Pkt. 809,957 487,976 666,798 631,135
Tooth pick, cotton buds, straw - 768 351,376 293,671 58,473
Baby Diaper Pkt. 140,327 843,323 737,263 246,387
Pcs. 366,075 727,105 896,678 196,502
Baby Diapant Pkt. 221,615 4,431,177 4,334,301 318,491
Baby wet wipes Cont. 37,133 428,842 398,623 67,352
Wet Tissue PKT 5,184 318,488 307,113 16,559
Hand Gloves Box 18,478 19,528 27,504 10,502

30.00 OTHER INCOME Amount in Taka

30-Jun-20 30-Jun-19
Scrap sales & other recoveries 40,062 128,575
Cash Incentive 71,647,281 53,132,985
Other Income 764,072 -
Interest income 2,062,165 76,375,672
Total 74,513,580 129,637,231

31.00 ADMINISTRATIVE EXPENSES

Audit fee 437,000 523,250

Credit Ratings Fees 322,500 321,000
Salaries and allowances 185,407,767 185,368,324
Director remuneration NOTE 31.02 17,500,000 28,500,000
Entertainment 3,042,105 4,550,272
Insurance premium 19,464,249 23,451,202
Advisory, legal and consultancy 61,061 464,600
License, renewal and registration 3,242,192 6,434,615
Corporate and Social responsibility expenses 14,214,266 13,929,696
Rent and rates 9,334,350 10,800,000
Office repair and maintenance 7,952,457 12,893,675
IT & computer expense 312,121 376,161
Printed on Bashundhara Paper

IPO Expense - 6,400,000

Annual General Meeting expense 1,510,377 2,890,070
Incidental loss of assets destroyed by fire 5,382,147 -
Postage, telegram and fax 1,129,886 1,399,087

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 Amount in Taka
30-Jun-20 30-Jun-19
Company's contribution to PF 7,371,646 7,681,972
Stationery 1,189,534 443,948
Telecommunication expense 6,460,723 8,992,551
Travelling and Conveyance 2,268,672 3,079,847
Utilities 6,865,230 7,299,278
Vehicle running and maintenance 3,773,601 4,863,823
Vehicle oil, fuel & lubricant 5,933,283 7,380,810
Vehicle rent - 907,880
Depreciation Annex.-A & C 49,075,486 46,299,158
Amortisation of intangible assets Annex.-B 8,003,735 7,615,726
Total 360,254,388 392,866,946

31.02 Director Remuneration for the year

Gross Income Tax

Name Position held Net Paid
Remuneration Deducted

Mr. Ahmed Akbar Sobhan Chairman _ _ _

Mr. Md. Imrul Hassan Director _ _ _
Mr. Md. Nazmul Alam Bhuiyan Nominated Director _ _ _
Mr. Khawaja Ahmedur Rahman Independent Director _ _ _
Mr. Safwan Sobhan Managing Director 17,500,000 5,250,000 12,250,000
Total 17,500,000 5,250,000 12,250,000

31.2.1 Payment to Directors and Officers

The aggregate amount paid/provided during the period in respect of Directors and Officers of the Company is as follows:

Directors Remuneration - -
Managing Director Remuneration 12,250,000 19,950,000
Board Meeting fee - -
Total 12,250,000 19,950,000

32.00 SELLING AND DISTRIBUTION EXPENSES

Salaries and allowances 158,955,678 159,263,011
Advertisement 13,157,411 14,662,174
Carriage outwards 10,962,037 34,905,390
Company's contribution to PF 114,000 114,600
Foreign Exchange gain/ loss 1,217,458 3,461,462
Commission on sales 10,702,385 16,574,696
Other Selling and distribution expenses 97,695 49,383
Conveyance 757,548 -
Total 195,964,212 229,030,716

33.00 FINANCE COSTS

Interest on bank overdrafts and loans 891,039,729 1,063,089,605
Bank charges and commission 8,023,610 12,181,862
Interest on obligations under finance lease 23,671,812 28,653,126
Printed on Bashundhara Paper

Total financial expense 922,735,151 1,103,924,593

Less: Amounts included in the cost of qualifying assets - -
Total 922,735,151 1,103,924,593

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 34.00 WORKERS' PROFIT PARTICIPATION & WELFARE FUND

Opening Balance 82,332,767 57,204,064

Add: Addition during the year NOTE 34.01 23,657,272 25,128,703
Less: Paid during the year (31,184,702) -
Adjusted made during the year - -
Closing balance 74,805,337 82,332,767

34.01 Workers' profit participation & welfare fund for the year:

Profit before Workers' profit participation & welfare fund 473,145,445 502,574,059
Rate 5% 5%
Workers' profit participation & welfare fund for the year 23,657,272 25,128,703

As per provision of Workers’ Profit Participation Fund (WPPF) of Labor Act 2006 as amended till to date, the company has
been maintaining provision for WPPF & WF. Workers Participation Committee (WPC) has been formed. The company
expects to distribute the fund very shortly as per Workers' profit participation & welfare fund policy.

35.00 INCOME TAX EXPENSE

In compliance with the requirements of Para 79 of IAS-12: Income Tax, the major components of tax expenses are given
below:

Amount in Taka
30-Jun-20 30-Jun-19
a. Current tax expense: 51,279,394 66,235,531
Current tax expense in respect of the current year 51,279,394 66,235,531
Adjustments recognized in the current year in relation to the current
tax of prior year's - -
b. Deferred tax expense/ (income): 112,372,044 119,361,339
Deferred tax expenses recognized in the year 112,372,044 119,361,339
Adjustments to deferred tax attributable to changes in tax rates and
laws - -
c. Total income tax expense recognized in the current year (a+b) 163,651,438 185,596,870

35.01 The income tax expense for the year can be reconciled to the accounting profit as follows:
In compliance with the requirements of para-81 (c) of IAS-12: (Income tax), the reconciliation of tax expense and product
of accounting profit are given below:

Accounting profit for the year 449,488,173 477,445,356

Less: Share of profit of equity - -
449,488,173 477,445,356
Tax on accounting profits @ 25% ( 2018-19 @ 25%) 112,372,043 119,361,339

Effect of income that is exempt from taxation - -

Effect of expenses that are not deductible in determining taxable profit - -
Effect of concessions (research and development and other allowances) - -
Impairment losses on goodwill that are not deductible - -
Effect of minimum tax
Printed on Bashundhara Paper

51,279,394 66,235,531
Effect of unused tax losses and tax offsets not recognized as deferred tax assets - -
Effect of previously unrecognized and unused tax losses and deductible - -
temporary differences now recognized as deferred tax assets - -

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 Effect of different tax rates of subsidiaries operating in other jurisdictions - -
Effect on deferred tax balances due to the change in income tax rate - -
Effect of unused tax credits - -
163,651,438 185,596,870
Adjustments recognized in the current year in relation to the current tax of
prior years - -
Income tax expense recognized in profit or loss 163,651,438 185,596,870

36.00 EARNINGS PER SHARE (EPS)

36.01 Basic Earnings per Share Amount in Taka

30-Jun-20 30-Jun-19
Profit attributable to the Ordinary Shareholders 285,836,735 291,848,486
Weighted Average Number of shares 173,791,441 173,791,441
Basic Earnings Per Share 1.64 1.68

36.02 Diluted Earnings Per Share

As per IAS-33 "Earnings Per Share", the calculation of diluted earning per share does not assume conversion, exercise or
other issue of potential ordinary shares that would have an anti dilutive effecton earning per share. No diluted EPS was
required to be calculated for the year since there was no scope for dilution of share during the year under review.

36.03 Weighted average number of ordinary shares

The weighted average number of ordinary shares outstanding during the year is the number of ordinary shares
outstanding at the beginning of the year, adjusted by the number of ordinary shares issued during the year multiplied by
a time weightingf actor. The time-weighting factor is the number of days that the shares are outstanding as a proportion
of the total number of days in the year.

36.3.1 Total Number of Ordinary Share outstanding

Opening number of shares outstanding 173,791,441 173,791,441
Add: Ordinary shares issued during the year - -
Total 173,791,441 173,791,441

36.04 The calculation of the basic earnings per share is made in accordance with IAS33: Earnings Per Share, dividing the
profit for the year by weighted average number of the shares issued.

36.05 Basic Earnings represents earnings for the year attributable to the ordinary shareholders. As there was no preference
dividend, minority interest or extra ordinary items, the net profit after tax for the year has been considered as fully
attributable to the ordinary shareholders.

37.00 CAPITAL COMMITMENT

None, except for letter of credit for importation of plant & machinery - -
as shown under contingent liabilities.
Printed on Bashundhara Paper

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 38.00 CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Contingent Liabilities and assets as on the date of Statement of Financial Position were as under:

Amount in Taka
30-Jun-20 30-Jun-19

Letter of credit for importation of raw materials. 2,235,157,621 3,229,335,761

VAT claimed which is under jurisdiction of Hon'ble Supreme Court. 20,752,670 20,752,670
Claim of income tax against the company. 448,449 127,499,295
Guarantees issued by the Company's scheduled bank to third
parties on counter indemnities given by the Company. 185,455,336 225,737,528
Claims against the Company acknowledge as debts. - -
Total 2,441,814,075 3,603,325,253
Capital commitment and Contingent liabilities 2,441,814,075 3,603,325,253

38.01 L/C ( Sight/UPAS/Deferred) Liabilities

Shahjalal Islami Bank Ltd. 219,704,392 208,882,580
Bank Asia Ltd. - 119,768,900
Social Islami Bank Ltd. 9,500,000 9,500,000
Standard Bank Ltd 174,307,225 128,322,020
IFIC Bank Ltd. 3,910,000 348,850,000
First Security Islami Bank Ltd. 434,581,091 283,450,000
Mercantile Bank Ltd. 208,520,000 14,230,000
South East Bank Ltd. 283,867,285 20,350,171
National Bank Ltd. 248,531,860 1,736,652,094
Trust Bank Ltd. 11,625,767 43,720,000
Al-Arafa Islami Bank Ltd. 640,610,000 315,610,000
Total 2,235,157,621 3,229,335,761

38.02 Bank Guarantee

Social Islami Bank Ltd. 27,707,030 40,357,530
Mercantile Bank Ltd. 600,000 600,000
Southeast Bank Ltd. 136,700,000 165,837,678
Standard Bank Ltd. - -
Shahjalal Islami Bank Ltd. 20,448,308 18,942,320
Total 185,455,336 225,737,528

38.03 There are contingent liabilities in respect of certain tax claims made against the Company. However, these are
being vigorously defended by the Company and the Board of Directors do not consider it is appropriate to make
provision in respect of any of these claims.

39.00 STATEMENTS OF CASH FLOWS

The statement cash flows shows the company’s cash and cash equivalents changed during the year through
inflows and outflows. The statement of cash flows has been prepared as per IAS -7 using the Direct Method. Net
cash inflow from operating activities arrived after adjusting operating expenses, interest and taxes paid during the
year.

Net cash used in investing activities includes cash outflow for purchase of property, plant and equipment after
Printed on Bashundhara Paper

adjusting sale proceeds.

Net cash inflow from financing activities mainly resulted from repayment of long term loan as well as received
from short term loan.

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39.01 Cash receipts from customers and others:
Gross cash received from customers arrived at after adjusting accounts receivables with revenue for the year. The
make-up of :

Amount in Taka
30-Jun-20 30-Jun-19

Opening trade and other receivables 3,693,325,197 2,467,975,294

Add: Sales during the year 9,021,485,119 11,488,209,577
Closing trade and other receivables except receivable against cash Incentive (1,367,682,313) (3,192,707,887)
Total 11,347,128,003 10,763,476,984

39.02 Receipts from other income:

Other income NOTE: 30.00 74,513,580 129,637,231

Less: Incentive receivables (37,091,843) (12,234,184)
Total 37,421,737 117,403,047

39.03 Cash payment to suppliers, employees and others:

Cash paid to suppliers arrived at after adjusting cost of raw materials and consumption cost of spares parts consumed
with creditors for trade supplies, non-cash items and creditors forrevenue expenses. Employee remuneration includes all
types of benefits paid and provided both in cash and kind other than the re-imbursement of expenses incurred for the
Company’s business. The make-up of :

Purchase of raw materials 4,777,981,541 7,230,994,450

Administrative expense 360,254,388 392,866,946
Workers' profit participation & welfare fund 23,657,272 25,128,703
Selling & distribution expense 195,964,212 229,030,716
Factory overhead 2,679,846,912 2,701,840,983
Increase/ (decrease) in material in transit (1,252,339,091) (73,009,199)
Increase/ (decrease) in Stores and spare parts 59,730,708 (70,114,876)
(Increase)/ decrease in trade payables and other payable 718,103,282 (687,277,878)
(Increase)/ decrease in provision for expense 17,797,045 (109,414,646)
Increase/ (decrease) in advance, deposit & prepayments (120,261,719) (107,458,891)
Adjustment for non-cash item:
Amortization of intangible assets (8,003,735) (7,615,726)
Depreciation expense (981,509,711) (925,983,166)
Total 6,471,221,104 8,598,987,415

40.00 SEGMENT REPORTING

BPML essentially provides similar products and services to customers across the country and its products and services
essentially have similar risk profile. BPML's business is not organized in product orgeographical components and its
operating result is reviewed as a whole by its management. Hence, segment information is not relevant. However, based
on the business segment, segment result for the year ended June 30, 2020 and segment assets and liabilities as included
in the internal management reports that are reviewed by the Board of Directors. Segment profit is used to measure
performance as management believes that such information is the most relevant in evaluating the results is as follows:

Particulars 2020-2019 2019-2018

Printed on Bashundhara Paper

Revenue, net of VAT 8,544,463,487 11,039,126,581

Cost of sales 6,666,877,871 8,940,367,498
Gross Profit 1,877,585,616 2,098,759,083

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 Assets and Liabilities
Segment Assets excludes Cash & Cash Equivalents 27,751,728,178 28,849,590,962
Segment Liabilities excludes tax liabilities 19,989,180,647 22,440,761,612

41.00 RELATED PARTY TRANSACTIONS

Balances and transactions between the Company and its sister concern, and shareholders, which are related parties of
the company, have been eliminated are not disclosed in this note. Details of transactions between the Company and
other related parties are disclosed below:

41.01 Loans to/from related parties:

Nature of
Name of related Companies Relationship 30-Jun-20 Compensation
transaction

East West Property Development (Pvt.) Ltd. Shareholder & Long term Loan (500,991,777) Market Price
Sister Concern
East West Media Group Ltd. Sister Concern Short term Loan 140,228,346 Market Price
Bashundhara Steel and Engineering Ltd. Sister Concern Short term Loan 57,390,293 Market Price
Bashundhara Multi-Paper Industries Ltd. Sister Concern Short term Loan 34,689,441 Market Price
Bashundhara Infrastructure Development Ltd. Sister Concern Short term Loan 3,281,222 Market Price
Bashundhara Industrial Complex Ltd. Sister Concern Short term Loan (164,966,492) Market Price
Bashundhara Industrial Complex Ltd. Sister Concern Investment 265,000,000 Market Price
Bashundhara Cement Industries Ltd. Sister Concern Short term Loan 2,518,436 Market Price
Sundarban Industrial Complex Ltd. Sister Concern Short term Loan 7,367,465 Market Price
Bashundhara Food & Beverage Ind. Ltd. Sister Concern Short term Loan 4,065,831 Market Price
Bashundhara Fine Paper Mills Ltd. Sister Concern Short term Loan 800,000 Market Price
Bashundhara Glass Industries Ltd. Sister Concern Short term Loan 1,371,500 Market Price
Bashundhara LP Gas Ltd. Sister Concern Short term Loan (190,746,366) Market Price
Bashundhara Airways Ltd. Sister Concern Short term Loan 157,671,902 Market Price
Bashundhara Amusement Park Ltd. Sister Concern Short term Loan 21,197,872 Market Price
Meghna Cement Mills Limited Sister Concern Short term Loan 54,363,621 Market Price
Bashundhara Industrial Economic Zone Sister Concern Short term Loan 107,749,300 Market Price
Bashundhara Chemical Industries Ltd. Sister Concern Short term Loan (7,680,000) Market Price
Toggi Services Ltd. Sister Concern Short term Loan 72,300,000 Market Price
Toggi Real Estate & Construction Ltd. Sister Concern Short term Loan 1,250,000 Market Price
Bashundhara Multi Trading Ltd. Sister Concern Short term Loan (5,243,150) Market Price
Total 61,617,443

The movement during the year under review is enumerated below:

Transaction during the year

Name of related Companies 30-Jun-20 30-Jun-19
Provided Adjusted
East West Property Development (Pvt.) Ltd. 262,502,994 274,127,486 (500,991,777) (489,367,285)
East West Media Group Ltd. 2,117,666 1,311,585 140,228,346 139,422,265
Bashundhara Steel and Engineering Ltd. - 1,100,000 57,390,293 58,490,293
Bashundhara Multi-Paper Industries Ltd. 276,184,179 133,485,365 34,689,441 (108,009,373)
Bashundhara Infrastructure Development Ltd. - - 3,281,222 3,281,222
Bashundhara Industrial Complex Ltd. 157,270,000 203,730,000 (164,966,492) (118,506,492)
Bashundhara Industrial Complex Ltd. - - 265,000,000 265,000,000
Bashundhara Cement Industries Ltd. - 9,800,000 2,518,436 12,318,436
Sundarban Industrial Complex Ltd. 16,127,176 13,100,000 7,367,465 4,340,289
Printed on Bashundhara Paper

Bashundhara Food & Beverage Ind. Ltd. 100,000,000 114,900,000 4,065,831 18,965,831
Bashundhara Fine Paper Mills Ltd. - - 800,000 800,000
Bashundhara Glass Industries Ltd. - - 1,371,500 1,371,500

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 Bashundhara Airways Ltd. 11,695,916 9,689,602 157,671,903 155,665,589
Bashundhara Amusement Park Ltd. 5,069,287 2,500,000 21,197,872 18,628,585
Bashundhara LP Gas Ltd. - - (190,746,366) (190,746,366)
Meghna Cement Mills Limited 2,000,000 2,000,000 54,363,621 54,363,621
Bashundhara Industrial Economic Zone 43,900,000 10,000,000 107,749,300 73,849,300
Bashundhara Chemical Industries Ltd. 4,800,000 - (7,680,000) (12,480,000)
Toggi Services Ltd. 135,000,000 115,000,000 72,300,000 52,300,000
Toggi Real Estate & Construction Ltd. - - 1,250,000 1,250,000
Bashundhara Multi Trading Ltd. 29,826,400 35,069,550 (5,243,150) -
Total 1,046,493,619 925,813,588 61,617,444 (59,062,586)

41.02 Trading transactions:

During the year, the Company carried out a number of transactions with related parties in the normal course of business
and on an arms' length basis. The name of related parties, nature of these transactions and their outstanding amount
have been set out in accordance with the provisions of IAS 24 : Related Party Disclosure.

Nature of
Name of related Companies Relationship 30-Jun-20 30-Jun-19
transaction

East West Property Development (Pvt.) Ltd. Shareholder & Trade payable/ (15,134,491 18,052,887
Sister Concern receivable
Bashundhara Airways Ltd. Sister Concern Do 45,605 (353,906)
Bashundhara Amusement park Ltd. Sister Concern Do 5,950,585 4,425,596
Bashundhara LP Gas Ltd. Sister Concern Do (56,238,800) 1,265,024
Bashundhara Logistics Ltd. Sister Concern Do 801,596 471,780
Bashundhara Oil & Gas Company Ltd. Sister Concern Do 302,314 -
Bashundhara Steel and Engineering Ltd. Sister Concern Do 66,738 68,100
Bashundhara Multi-Paper Industries Ltd. Sister Concern Do (177,579,770) (42,803,673)
Bashundhara Glass Industries Ltd. Sister Concern Do - 3,000
East West Media Group Ltd. Sister Concern Do (144,250,553) (10,461,849)
Sundarban Industrial Complex Ltd. Sister Concern Do 921,002 876,132
Meghna Cement Mills Ltd. Sister Concern Do 11,918,565 8,952,788
Bashundhara Cement Industries Ltd. Sister Concern Do 411,600 417,062
International Convention City Bashundhara Sister Concern Do (1,330,084) (1,849,798)
Bashundhara Food & Beverage Industries Ltd. Sister Concern Do 12,222,106 7,006,113
Bashundhara Infrastructure Development Ltd. Sister Concern Do 615,957 359,632
Toggi Services Ltd. Sister Concern Do - (7,081,890)
Bashundhara Industrial Complex Ltd. Sister Concern Do 709,901,906 714,314,249
Bashundhara Multi Food Industries Ltd. Sister Concern Do 988,363 164,704
Toggi Services Ltd. Sister Concern Do - 671,235
Bashundhara Technologies Ltd. Sister Concern Do 14,000 14,000
Bashundhara Industrial Economic Zone Sister Concern Do (910,678) -
Bashundhara Chemical Industries Ltd. Sister Concern Do 3,000 -
Toggi Services Ltd. Sister Concern Do (757,678) -
Bashundhara Multi Trading Ltd. Sister Concern Do 1,733,961 -
Total 379,964,228 694,511,184

41.03 As per Company Act,1 994part-II, Schedule-XI(4) The profit and loss account will give by way of a note detailed
Printed on Bashundhara Paper

information, showing separately the following payments provided or made during the financial year to the
directors, including managing director, the managing agents or manager, ifany, by the company, subsidiaries
of the company and any other person:-

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 Amount in Taka
30-Jun-20 30-Jun-19

Managerial Remuneration paid or payable during the period to the

directors, including managing directors, a managing agent or 17,500,000 28,500,000
manager
Expenses reimbursed to Managing Agent - -
Commission received or receivable by the managing agent or his
associate as selling or buying agent of other concerns in respect of - -
contracts entered into by such concerns with the company
The money value of the contracts for the sale or purchase of goods and
materials or supply of services, entered into by the company with the - -
managing agent or his associate during the financial period.
Any other perquisite or benefits in cash or in kind stating, approximate
money value where applicable. - -
Other allowances and commission including guarantee commission
Pensions etc.
- -
(i) Pensions - -
(ii) Gratuities - -
(iii) Payments from a provident funds, subscription and interest thereon - -
(iv) Share Based payments - -

41.04 Compensation of key management personnel during the year as follows:

Short-term benefits 17,500,000 28,500,000

Post-employment benefits - -
Other long term benefits - -
Termination benefits - -
Total 17,500,000 28,500,000

41.05 Disclosure requirements of IAS 24, Para 18 minimum disclosure shall include

a) The amount of transaction 17,500,000 28,500,000

b) The amount of outstanding balance, including commitments, and: 79,117,444 723,011,184
i) Their terms & condition, including whether they are Remuneration, Remuneration,
secured,and the nature of the consideration to be provided Working Capital Working Capital
in settlement; and Management Management
ii) details of any guarantee given or received Nil Nil
c) Provisions for doubtful debts related to the amount of outstanding
balances; and Nil Nil
d) The expenses recognized during the period in respect of bad or
doubtful debts due from related parties Nil Nil

41.06 Aggregated amount of Remuneration, Fess, Salary & Wages of employees are given below:

Directors Remuneration 17,500,000 28,500,000

Board Meeting Attendance Fees - -
Printed on Bashundhara Paper

Wages & Allowance 161,581,186 408,981,333

Salary & Allowance 1,002,642,747 964,297,357
Total 1,181,723,933 1,401,778,691

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Details of property, plant & equipment are shown in 'Annexure-A'

41.07 Transactions with related parties were carried out on commercial terms and conditions and at prices agreed
based on intercompany prices.

41.08 Sales of goods to related parties were made at the Company's usual list price. Purchases were made at market
price discounted to reflect the quantity of goods purchased and the relationships between the parties.

41.09 The amounts outstanding are unsecured and will be settled in cash without any appalling experience. No
guarantees have been given or received. No expense has been recognized in the current or prior periods for bad or
doubtful debts in respect of the amounts owed by the Company and its related parties.

42.00 EMPLOYEES Amount in Taka

30-Jun-20 30-Jun-19
Number of employees whose salary below Tk 3,000 per month - -
Number of employees whose salary above Tk 3,000 per month 3,954 4,040
Total 3,954 4,040

43.00 CAPACITY & UTILIZATION

Machine production capacity and its utilization as on June 30, 2020 is as follows:

Product Measure Unit Annual Capacity Actual Production Capacity utilized

Paper & Tissue MT 133,750 74,059 55%
Paper Section-Value addition MT 34,308 22,500 66%
Sack Bag MT 10,809 543 5.0%
Sludge Board MT 1,667 206 12%
Monalisa Sanitary Napkin MT 1,550,016 62,508 4%
Baby Diaper MT 1,509,581 103,806 7%
Baby Diapant MT 3,265,920 2,819,336 86%
Wet Tissue MT 6,739,200 10,296 0.15%
Wet Wipes MT 1,213,056 448,520 37%

44.00 NET ASSET VALUE (NAV) PER SHARE

Total Assets 28,032,718,420 30,186,245,753

Less: Intangible Assets (158,794,592) (166,798,327)
Total Liabilities (20,305,691,883) (22,705,993,454)
Net Asset Value (NAV) 7,568,231,945 7,313,453,973
Weighted Average Number of Ordinary shares outstanding 173,791,441 173,791,441
Net Asset Value (NAV) Per Share (per value Tk. 10 each) 43.55 42.08

45.00 NET OPERATING CASH FLOW (NOCFPS) PER SHARE

Printed on Bashundhara Paper

Net Operating Cash Flows 4,319,021,031 1,749,795,824

Weighted Average Number of Ordinary shares outstanding 173,791,441 173,791,441
Net Operating Cash Flows per share (per value Tk. 10 each) 24.85 10.07

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 46.00 RECONCILIATION OF OPERATING CASH FLOW WITH NET PROFIT

Amount in Taka
30-Jun-20 30-Jun-19
Total Comprehensive Income for the year 285,836,735 291,848,486
Adjustment for:
Income tax expense recognized in profit and loss 163,651,438 185,596,870
Workers' profit participation & welfare fund 23,657,272 25,128,703
Amortization of intangible assets 8,003,735 7,615,726
Depreciation of non-current assets 981,509,711 925,983,166
1,462,658,892 1,436,172,951
Adjustment for separate consideration
Finance cost recognized in profit and loss 914,711,541 1,091,742,731

Movements in working capital:

(Increase)/decrease in inventories 401,657,800 (849,343,859)
(Increase)/decrease in trade and other receivables 2,288,551,041 (736,966,777)
(Increase)/decrease in advance, deposit and prepayment 120,261,719 107,458,891
Increase/(decrease) in trade payables & other payables (741,760,555) 687,277,878
Increase/(decrease) in provision for expense (17,797,045) 84,285,943
Cash generated from operations 2,050,912,961 (707,287,924)
Income taxes paid (109,262,362) (70,831,934)
Net cash (used in)/ generated by operating activities 4,319,021,031 1,749,795,824

47.00 DIRECTOR'S RESPONSIBILITY ON STATEMEMT

The Board of Directors takes the responsibility for the preparation and presentation of these financial statements.

48.00 DIRECTORS' INTEREST IN CONTRACTS WITH THE COMPANY

There was no transaction resulting in Directors' interest with the company and no leasing facilities have been made
available to the Directors.
49.00 RECEIVABLE FROM DIRECTORS
No amount is lying as receivable from the Directors.

50.00 FOREIGN REMITTANCES

No remittances were made in foreign currency on account of dividend, royalty, technical experts, professional adviso
rfees, interest, etc.
51.00 EVENTS AFTER THE REPORTING PERIOD

51.01 The Board of Directorsin it’s meeting held on 07 November 2020 approved the financial statements of the company
for the year ended 30 June 2020 and authorised the same for issue. The Board of Directors also recommended
cash dividend @ 10% for the General Shareholders other than the Directors, Sponsors and the Pre-IPO Placement
holders for the FY 2019-2020 which is subject to approval of the shareholders in the ensuing Annual General Meeting.

51.02 No circumstances have arisen since the date of statement of financial position, which would require adjustment to
or disclosure in the financial statement or notes thereto.

52.00 STATUS OF INCOME TAX ASSESSMENT

From the inception of the Company to the income Year 2016-2017 (Assessment year 2017-2018) has been completed. The
status of income tax assessment of the Company is as under:

Assessment completed
Income Year Assessment Year Demand/ (Refund) Status
U/S of ITO 1984
The DCT has completed the
Printed on Bashundhara Paper

assessment on 14 September 2020

2018-2019 2019-2020 448,449 83(2)
against which the Company filled an
appeal to the Commissioner (Appeals)

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53.00 GOING CONCERN BASIS OF ACCOUNTING
The financial statements have been prepared on a going concern basis, which assumes that the Company will be ableto
meet the mandatory repayment terms of the banking facilities as disclosed in Note 19, 23 & 24.
The Companies retained earning stand at Tk. 2,176,579,027 as on June 30, 2020 which includesTk. 285,832,151 net profit
after tax of for the year and, as at that date, current assets exceed current liabilities. Besides that the company has
sustainable products, debts with excellent repayment records, bright operating cashf lows, positive key financial ratios,
reliability in payment of obligations, excellent corporate environment and employee satisfaction.

Management acknowledges that uncertainty remains over the Company’s ability to meet its funding requirements and
to refinance or repay its banking facilities as they fall due. In that particular circumstance, management has a reasonable
expectation that the Company has adequate resources to continue in operational existence for the foreseeable future.

54.00 FINANCIAL RISK MANAGEMENT

54.01 Basis of fair value measurement

As fair value is a market - based measurement, when measuring the fair value of an asset or aliability, BPML uses market
observable data as far as possible though entity's intention to hold an asset or to settle or other wise fulfil a liability is not
relevant when measuring fair value.
Fair values are categorised into different levels in a fair value hierarchy based on inputs used in the valuation technique as
follows:
Level 1: quoted prices (unadjusted) in active markets for identical assets and 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 input).

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 fair value hierarchy as the
lowest level input that is significant to the entire measurement.

BPML recognises transfers between levels of the fai rvalue hierarchy at the end of the reporting period during which the
change has occurred.

Printed on Bashundhara Paper

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 Printed on Bashundhara Paper

54.02 Accounting classifications and fair values

The following table shows the carrying amounts of financial assets and financial liabilities. It does not include fair value information for financial assets and

130
financial liabilities not measuredat fair value as the carrying amount is a reasonable approximation of fair value.

Carrying amount Fair value

Held Fair value Held Loans Other
Designated Available
Reconciliation of carrying amount Note for - hedging -to- and financial Total Level 1 Level 2 Level 3 Total
at fair value for sale
trading instruments maturity receivables liabilities

Bashundhara Paper Mills Ltd.

Annual Report-2020
30 June 2020:
Financial assets measured at fair value - - - - - - - - - - - -
- - - - - - - - - - - -
Financial assets not measured at fair value
Trade receivables and Other receivables 10 - - - - 1,404,774,156 - - 1,404,774,156 - - - -
Advances, deposits and prepayments 11 - - - - 708,955,164 - - 708,955,164 - - - -
Cash and cash equivalents 14 - - - - 280,990,242 - - 280,990,242 - - - -
- - - - 2,394,719,562 - - 2,394,719,562 - - - -
Financial liabilities measured at fair value - - - - - - - - - - - -
- - - - - - - - - - - -
Financial liabilities not measured at fair value
Long term borrowings-current portion 23 - - - - - - 1,974,333,458 - - - - -
Short term borrowings 24 - - - - - - 3,126,622,374 - - - - -
Trade and other payables 25 - - - - - - 1,576,257,948 - - - - -
- - - - - - 6,677,213,781 - - - - -
30 June 2019:
Financial assets measured at fair value - - - - - - - - - - - -
- - - - - - - - - - - -
Financial assets not measured at fair value
Trade receivables and Other receivables 10 - - - - 3,693,325,197 - - 3,693,325,197 - - - -
Advances, deposits and prepayments 11 - - - - 829,368,883 - - 829,368,883 - - - -
Cash and cash equivalents 14 - - - - 1,336,654,791 - - 1,336,654,791 - - - -
- - - - 5,859,348,871 - - 5,859,348,871 - - - -
Financial liabilities measured at fair value - - - - - - - - - - - -
- - - - - - - - - - - -
Financial liabilities not measured at fair value
Long term borrowings-current portion 23 - - - - - - 1,740,500,152 - - - - -
Short term borrowings 24 - - - - - - 8,084,230,977 - - - - -
Trade and other payables 25 - - - - - - 2,296,713,496 - - - - -
- - - - - - 12,121,444,625 - - - - -

The Company has not disclosed the fair values for financial instruments such as trade and other receivables, cash and cash equivalents, trade and other
payables, and other non–current liabilities because their carrying amounts are a reasonable approximation of fair values.
54.03 Financial Risk Management
The Company has exposure to the following risks:

- Credit risk
- liquidity risk
- Market risk
This note presents information about the Company's exposure to each of the above risks, the Company's objectives,
policies and processes for measuring and managing risk, and the Company's management of capital.

Risk management framework:

The Company’s Board of Directors has overall responsibility for the establishment, developing, oversight and monitoring
of the Company’s risk management framework. The Company’s risk management policies are established to identify and
analyze the risk faced by the Company, to set appropriate risk limits and controls, and to monitor risks and adherence to
limits. Risk management policies and system are reviewed regularly to reflect changes in market conditions and the
Company’s activities. The Company, through its training and management standards and procedures, aims to develop a
disciplined and constructive control environment in which all employees understand their roles and obligations.

The Company has established Internal Audit Department to oversee how management monitors compliance with the
Company’s risk management policies and procedures, compliance with operational and legal requirements,
identification of foreseeable trends and reviews the adequacy of the risk management framework in relation to the risks
faced by the Company. Internal Audit undertakes both regular and ad hoc reviews of risk management controls and
procedures, the result of which are reported to the Board of Directors.

The Company’s financial liabilities mainly comprise trade and other payables and short term running finance. The main
purpose of financial liabilities is to raise finance for the Company’s operation. The Company’s financial assets comprise
loans to employees, trade and other receivables, bank balances. The Company is exposed to credit risk, liquidity risk and
market risk.

54.3.1 Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet
its contractual obligations, and arises principally from the Company’s receivables from customers.

The Company’s exposure to credit risk is influenced mainly by the individual characteristic of each customer. The
management of the Company has established a credit policy under which each new customer is analyzed individually
creditworthiness before the Company’s standard payment and delivery terms and conditions are offered. Purchase limit
are established for each customer, which represents the maximum open amount without requiring approval from the
concerned authority; these limits are reviewed twice a year. Customers that fail to meet the Company’s benchmark
creditworthiness may transact with the Company only on a prepayment basis. More than 80 percent of the Company’s
customers have been transacting with the Company since long, and no impairment loss has been recognized against
these customers. Trade and other receivable relate mainly to the Company’s Wholesale customer. The Company's
maximum exposure to credit risk at the reporting date is as follows:

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk
at the reporting date was:
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 a) 17.00
Exposure to credit risk:
REVALUATION RESERVE

Amount in Taka
30-Jun-20 30-Jun-19
Trade receivables
Local customer 1,118,353,518 2,627,118,916
Foreign customer 44,542,978 62,419,456
Advance, deposit and prepayments 708,955,164 829,368,883
Due/ (payable) from/to inter companies (203,382,557) (324,062,587)
Cash and bank balances 280,990,242 1,336,654,791
The maximum exposure to credit risk for accounts receivable by geographic regions was:

Bangladesh 1,118,353,518 2,627,118,916

Asia 46,288,147 68,061,005
Europe 211,500 (4,390,906)
Australia 12,909 12,909
Africa 1,394,035 (1,263,552)
North America (3,363,613) -

17.00 REVALUATION RESERVE

b) The aging of trade receivables other than other product and services at the reporting date is as follows:

Trade receivables
0-90 days past due 470,365,601 1,143,445,755
90-180 days past due 473,314,754 1,151,781,118
above 180 days past due 219,216,141 394,311,499
1,162,896,496 2,689,538,372

c) Credit exposure by credit rating:

Trade receivables 1,162,896,496 2,689,538,372
Advance, deposit and prepayments 708,955,164 829,368,883
Other receivables 241,877,660 1,003,786,825

Cash and Bank balances:

Cash in hand 29,636,725 29,384,396

Bkash Account 12,000 -
Cash at bank:
Bank name & branch Account No. 251,341,517 232,250,395

Agrani Bank Ltd., Principal Branch, Dhaka CD: 11217-8 - -

Al-Arafa Islami Bank Ltd., Motijheel Branch, Dhaka CD-3059 12,683 13,373
Bank Asia Ltd., Bashundhara Branch CD: 404, 568, 569 92,574,973 46,117,254
Bank Asia Ltd., Bashundhara Branch SND: 0135 2,628,651 1,134,815
Bank Asia Ltd., Principal Branch CD: 00333005904 290,949 40,699
Basic Bank Ltd., Bashundhara Br. STD: 057 232,082 2,031,282
Basic Bank Ltd.-Main Branch, Dhaka. CD: 05787 5,276 699,850
Dutch Bangla Bank Ltd., Bashundhara Branch SND: 147.120.1895 10,097,221 3,000,273
Printed on Bashundhara Paper

Dutch Bangla Bank Ltd., Local Office CD: 10111012348 134,133 3,281,102
First Security Islami Bank Ltd., Banani Branch CD: 2215 5,695,083 476,111
IFIC Bank Ltd., Kawranbazar Branch CD: 313926-001 14,887,468 133,308

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Islami Bank Bangladesh Ltd., Head Office Complex Br. CD: 87816 6,249,739 5,294,752
Janata Bank Ltd., Helatola Branch, Khulna CD:001039442 3,332 3,332
Janata Bank Ltd., Janata Bhaban Corp. Br. STD: 004001006 2,543,559 7,854,176
Janata Bank Ltd., JBCB,Dhaka CD: 001022542 5,894,419 6,601,991
Janata Bank Ltd., JBCB,Dhaka FC: 402000464 1,436,689 1,436,689
Mercantile Bank Ltd., Main Branch, Dhaka CD: 81042 4,144,573 11,026,333
Mutual Trust Bank Ltd., Bashundhara City Br. CD: 15608,1015, 15617 14,252,702 6,619,468
Mutual Trust Bank Ltd., Sonargoan Branch CD: 10258,10427,10294,10267 151,191 69,163
Mutual Trust Bank Ltd., Sonargoan Branch CD: 12,303 -
National Bank Ltd., Dilkusha Branch CD: 233137485 2,452,239 5,004,137
National Bank Ltd. SND accounts 198,031 459,417
NCC Bank Ltd., Motijheel Branch CD: 22785 9,963 9,963
The Premier Bank Ltd., Banani Branch CD: 1604-0 3,565 3,565
The Premier Bank Ltd.-Dilkusha Branch CD: 019010 3,735 4,425
Prime Bank Ltd. Gulshan Br. CD: 2118116023883 10,000 -
Rupali Bank Ltd.-Local Office, Dhaka. CD: 0018020010093 126,634 1,654,761
Shahjalal Islami Bank Ltd., Gulshan Branch CD: 4061 2,781,207 1,428,176
Sonali Bank Ltd. SND: 000025 3,543,622 -
Social Islami Bank Ltd., Bashundhara Branch CD: 1330000079 7,157,856 29,840,240
Social Islami Bank Ltd., Panthapath Branch CD: 12885, 16735,16741 13,630,774 38,963,851
Social Islami Bank Ltd., Sonargoan Branch CD: 64,6459, 6718,6661 2,346,682 2,060,297
Southeast Bank Ltd., Principal Branch, Dhaka CD: 7935 15,359,807 4,106,324
Southeast Bank Ltd., Principal Branch, Dhaka FC: 0462 5,431,121 2,331,175
Southeast Bank Ltd., Principal Branch, Dhaka DAD Account-588 42 42
Southeast Bank Ltd., Principal Branch, Dhaka IPO_BDT_197 12,165 15,154
Southeast Bank Ltd., Principal Branch, Dhaka IPO_GBP_552 13,504 13,504
Southeast Bank Ltd., Principal Branch, Dhaka IPO_Euro_774 - 13,476
Southeast Bank Ltd., Principal Branch, Dhaka IPO_USD_066 280,194 316,808
Standard Bank Ltd., Principal Branch CD: 00233009262 815,704 117,095
Standard Bank Ltd., Principal Branch STD: 00236001976 44,129 -
Trust Bank Ltd., Senakallyan Bhaban Branch CD: 0003-0210011205 406,817 124,550
Union Bank Ltd., Gulshan Branch CD: 1623 84,481 85,286
United Commercial Bank Ltd., Bashundhara Br. STD: 119/198 31,281,067 48,776,832
United Commercial Bank Ltd., Gulshan Branch CD: 1360 4,101,153 1,087,349

The Company’s maximum exposure to credit risk at the reporting date is trade receivable. To mitigate the credit risk
against trade receivables, the Company has a system of specific credit line period to the distributor which is regularly
monitored.

54.3.2 Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is
to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal
and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.
Therefore, managing sufficient cash, the availability of funding through an adequate amount of committed bank
facilities, the company manages the liquidity risk. The Company's maximum exposure to financial liabilities as at the
reporting date is as follows:
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 Contractual Cash Flows
Non-derivative financial
liabilities Year Carrying Amount Within 12 months 1 to 5 years More than 5 years

Finance Lease 490,850,484 147,813,607 343,036,876 -

Long term bank loan - 1,826,519,851 (1,826,519,851) -
Short term bank loan 2019-20 5,100,955,833 5,100,955,833 - -
Trade and other payables 1,576,257,948 1,576,257,948 - -
Provision for expenses 110,078,848 110,078,848 - -
Finance Lease 144,198,619 105,252,299 38,946,320 -
Long term bank loan - 1,635,247,853 (1,635,247,853) -
Short term bank loan 2018-19 9,824,731,129 9,824,731,129 - -
Trade and other payables 2,296,713,495 2,296,713,495 - -
Provision for expenses 125,844,073 125,844,073 - -

54.3.3 Market risk

Market risk is the risk that changes in market prices, such as foreign exchanges rates, interest rates and equity prices will
affect the Company’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 optimizing the return.

a) Currency risk:
The company is exposed to currency risk on sales, purchase that are denominated in a currency other than the respective
functional currencies of the entities BDT Tk. The risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange
rates relates primarily to Company’s operating activities with the foreign suppliers.
i) Exposure to currency risk:
Foreign currency monetary assets and liabilities: Amount in Taka
30-Jun-20 (U$D) 30-Jun-19 (U$D)
Assets:
Trade receivables 524,961 738,692
Cash at bank 16,932 17,002
Liabilities:
Trade and other payables - -
Net exposure:
The following significant average exchange rates are applied during the year:
Exchange rate of US Dollar $ 84.85 $ 84.50

(ii) Foreign exchange rate sensitivity analysis for foreign currency expenditures:
A strengthening or weakening of the Taka, as indicated below, against the U$D at 30 June 2020 would have
increased/(decreased) equity and profit or loss. This analysis is based on foreign currency exchange rate variances that the
Company considered to be reasonably possible at the reporting date. The analysis assumes that all other variables, in
particular interest rates, remain constant.

b) Interest rate risk: c) Other price risk:

The Company ensuring that between 45 and 65 percent Equity price risk arises from available-for-sale equity
of its exposure to changes in interest rates on borrowings securities held for meeting partially the unfunded portion
is on a fixed-rate basis, taking into account assets with of the Company’s defined benefit pension obligations as
exposure to changes in interest rates. The risk that the fair well as investments at fair value through profit and loss
value or future cash flows of a financial instrument will (other than those arising from interest rate risk and
fluctuate because of changes in market interest rates. The currency risk). The Company is not exposed to any equity
Printed on Bashundhara Paper

Company’s exposure to the risk of changes in market price risk, as the Company does not have any investment
interest rates relates primarily to Company’s short-term in equity shares and also to commodity price risk.
deposits and running finance.

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55.00 CAPITAL MANAGEMENT
The Company's capital management objectives are:

-to ensure the Company's ability to continue as a going concern;

-to provide an adequate return to shareholders;

The Board of Directors has set a policy to maintain a strong capital base so as to maintain investor, creditor and market
confidence and to sustain future development of the business. Capital consists of total equity attributable to the equity
holders. The Board of Directors monitors the level of capital as well as the level of dividend to the ordinary shareholders.
In order to maintain or adjust the capital structure, the Company may adjust the amount of dividend, return capital to
No changes were made in the objectives, policies or processes for managing capital during the year ended 30 June, 2020.

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BASHUNDHARA PAPER MILLS LIMITED
Schedule of Property, Plant & Equipment
Annexure-A
COST DEPRECIATION
Wri�en down
PARTICULARS Transfer from Adjustment/ Closing Adjustment/ Closing
Opening balance Reclassifica�on Addi�on Opening balance Reclassifica�on Deprecia�on value
CWIP Disposal balance Disposal balance
1 2 3 4 5 6 7=2+3+4+5+6 8 9 10 11 12=8+9+10+11 13=7-12
a) Based on Cost: 15,239,687,497 (111,791,600) 567,055,861 2,574,689,098 (1,011,443) 18,268,629,413 4,532,244,778 (56,620,476) 938,939,130 (532,450) 5,414,030,981 12,854,598,431
i) Own assets: 15,118,960,997 - 567,055,861 2,574,689,098 7,923,457 18,268,629,413 4,467,185,785 - 938,690,938 8,154,258 5,414,030,981 12,854,598,431
Land and land development 554,324,896 - 19,792,647 - - 574,117,543 - - - - - 574,117,543
Plant and machinery 10,533,897,815 - 465,166,227 1,552,078,363 (1,011,443) 12,550,130,963 3,678,141,082 - 759,511,124 (532,450) 4,437,119,755 8,113,011,208
Office equipment 99,099,181 - 7,580,877 - - 106,680,058 46,002,837 - 12,443,904 - 58,446,742 48,233,317
Furniture and fixture 34,827,156 - - - - 34,827,156 16,932,381 - 2,474,989 - 19,407,370 15,419,786
Factory apparatus and loose tools 209,920,627 - 3,796,173 - - 213,716,800 71,823,583 - 11,879,606 - 83,703,189 130,013,611
Motor Vehicles 553,999,879 - 9,989,435 - 8,934,900 572,924,214 263,310,771 - 64,737,836 8,686,708 336,735,316 236,188,899
Factory building and other construc�ons 3,077,600,889 - 56,441,167 894,672,924 - 4,028,714,981 349,440,240 - 83,414,084 - 432,854,323 3,595,860,658
Sundry assets 55,290,553 - 4,289,334 127,937,810 - 187,517,697 41,534,892 - 4,229,395 - 45,764,287 141,753,411
ii) Leased assets: 120,726,500 (111,791,600) - - (8,934,900) - 65,058,993 (56,620,476) 248,192 (8,686,708) - -
Plant and machinery - - - - - - - - - - - -
Motor Vehicles 120,726,500 (111,791,600) - - (8,934,900) - 65,058,993 (56,620,476) 248,192 (8,686,708) - -
b) Based on Revalua�on: 2,848,337,977 - - - - 2,848,337,977 266,591,866 28,568,477 - 295,160,343 2,553,177,635
Land and land development 2,107,635,598 - - - - 2,107,635,598 - - - - - 2,107,635,598
Plant and machinery 115,317,906 - - - - 115,317,906 82,847,476 - 11,188,042 - 94,035,518 21,282,387
Office equipment 1,733,807 - - - - 1,733,807 1,234,929 - 126,742 - 1,361,671 372,136
Furniture and fixture 1,036,791 - - - - 1,036,791 639,710 - 62,190 - 701,900 334,891
Factory apparatus and loose tools 4,160,493 - - - - 4,160,493 1,901,955 - 199,617 - 2,101,572 2,058,921
Motor Vehicles 7,767,090 - - - - 7,767,090 7,153,266 - 409,588 - 7,562,854 204,236
Building and other construc�ons 604,376,645 - - - - 604,376,645 167,262,233 - 16,270,922 - 183,533,156 420,843,490
Sundry assets 6,309,647 - - - - 6,309,647 5,552,297 - 311,375 - 5,863,672 445,975
Total (a+b) 18,088,025,474 (111,791,600) 567,055,861 2,574,689,098 (1,011,443) 21,116,967,390 4,798,836,643 (56,620,476) 967,507,607 (532,450) 5,709,191,324 15,407,776,066

Total (2018-2019) 12,853,538,120 - 1,001,965,701 4,254,783,867 (22,262,213) 18,088,025,474 3,875,079,187 - 925,983,166 (2,225,710) 4,798,836,643 13,289,188,831

Allocation of depreciation:
Administra�ve overhead @ 5% 48,375,380
Factory overhead @ 95% 919,132,226
Total 967,507,607
Name of valuer: S.F. Ahmed & Co., Chartered Accountants (Representative of ERNST & YOUNG GLOBAL in Bangladesh), in 2010 and followed by Mahfel Huq & Co., Chartered Accountants in 2015.
Valuation Method: Net Assets Value Method and Current Fair Market Value Method.
Date of Capitalization: 30 June 2010 and 05 July 2015.
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BPML (UNIT-1) Annexure-A.1
COST DEPRECIATION
Wri�en down
PARTICULARS Transfer from Adjustment/ Closing Adjustment/ Closing
Opening balance Reclassifica�on Addi�on Opening balance Reclassifica�on Deprecia�on value
CWIP Disposal balance Disposal balance
1 2 3 4 5 6 7=2+3+4+5+6 8 9 10 11 12=8+9+10+11 13=7-12
a) Based on Cost: 7,755,904,073 - 385,517,253 1,147,725,163 - 9,289,146,489 1,115,835,123 - 381,591,591 - 1,497,426,713 7,791,719,776
i) Own assets: 7,746,969,173 - 385,517,253 1,147,725,163 8,934,900 9,289,146,489 1,107,396,606 - 381,343,399 8,686,708 1,497,426,713 7,791,719,776
Land and land development 293,954,278 - 19,792,647 - - 313,746,925 - - - - - 313,746,925
Plant and machinery 4,862,032,365 - 298,741,144 373,424,480 - 5,534,197,989 760,096,897 - 293,521,084 - 1,053,617,981 4,480,580,007
Office equipment 60,135,888 - 1,100,141 - - 61,236,029 20,625,642 - 7,355,556 - 27,981,199 33,254,830
Furniture and fixture 17,304,530 - - - - 17,304,530 6,295,964 - 1,356,257 - 7,652,222 9,652,308
Factory apparatus and loose tools 185,624,015 - 2,407,320 - - 188,031,335 58,653,280 - 9,957,427 - 68,610,707 119,420,628
Motor Vehicles 254,371,937 - 2,745,500 - 8,934,900 266,052,337 119,559,111 - 20,547,583 8,686,708 148,793,403 117,258,935
Factory building and other construc�ons 2,057,455,356 - 56,441,167 646,362,873 - 2,760,259,396 131,111,613 - 47,776,976 - 178,888,589 2,581,370,807
Sundry assets 16,090,805 - 4,289,334 127,937,810 - 148,317,949 11,054,097 - 828,515 - 11,882,613 136,435,336
ii) Leased assets: 8,934,900 - - - (8,934,900) - 8,438,517 - 248,192 (8,686,708) - -
Plant and machinery - - - - - - - - - - - -
Motor Vehicles 8,934,900 - - - (8,934,900) - 8,438,517 - 248,192 (8,686,708) - -
b) Based on Revalua�on: 856,038,012 - - - - 856,038,012 72,058,348 - 9,674,805 - 81,733,153 774,304,859
Land and land development 739,453,096 - - - - 739,453,096 - - - - - 739,453,096
Plant and machinery 83,051,356 - - - - 83,051,356 56,974,047 - 8,662,803 - 65,636,850 17,414,505
Office equipment 423,389 - - - - 423,389 284,500 - 33,102 - 317,603 105,786
Furniture and fixture 354,654 - - - - 354,654 215,525 - 21,130 - 236,655 117,999
Factory apparatus and loose tools 2,523,455 - - - - 2,523,455 1,118,696 - 123,225 - 1,241,920 1,281,535
Motor Vehicles 6,493,899 - - - - 6,493,899 6,054,585 - 312,638 - 6,367,223 126,676
Building and other construc�ons 21,226,067 - - - - 21,226,067 5,039,139 - 520,829 - 5,559,968 15,666,100
Sundry assets 2,512,096 - - - - 2,512,096 2,371,856 - 1,078 - 2,372,935 139,161
Total (a+b) 8,611,942,085 - 385,517,253 1,147,725,163 - 10,145,184,501 1,187,893,471 - 391,266,396 - 1,579,159,866 8,566,024,634
Total (2018-2019) 4,066,502,701 - 770,893,268 3,758,145,787 16,400,329 8,611,942,084 939,365,818 - 247,234,435 1,293,217 1,187,893,470 7,424,048,614
Allocation of depreciation:
Administra�ve overhead @ 5% 19,563,320
Factory overhead @ 95% 371,703,076
Total 391,266,396
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BPML (UNIT-2) Annexure-A.2
COST DEPRECIATION
Wri�en down
PARTICULARS Transfer from Adjustment/ Closing Adjustment/ Closing
Opening balance Reclassifica�on Addi�on Opening balance Reclassifica�on Deprecia�on value
CWIP Disposal balance Disposal balance
1 2 3 4 5 6 7=2+3+4+5+6 8 9 10 11 12=8+9+10+11 13=7-12

a) Based on Cost: 1,966,536,298 - 36,086,001 986,110,729 (1,011,443) 2,987,721,584 1,155,360,663 - 111,370,867 (532,450) 1,266,199,080 1,721,522,504
i) Own assets: 1,966,536,298 - 36,086,001 986,110,729 (1,011,443) 2,987,721,584 1,155,360,663 - 111,370,867 (532,450) 1,266,199,080 1,721,522,504
Land and land development 86,439,658 - - - - 86,439,658 - - - - - 86,439,658
Plant and machinery 1,556,609,354 - 32,032,726 837,289,800 (1,011,443) 2,424,920,437 1,058,051,541 - 97,896,613 (532,450) 1,155,415,704 1,269,504,733
Office equipment 9,391,373 - 682,550 - - 10,073,923 6,458,888 - 1,016,541 - 7,475,430 2,598,493
Furniture and fixture 2,167,061 - - - - 2,167,061 1,567,561 - 167,563 - 1,735,124 431,937
Factory apparatus and loose tools 12,853,647 - 538,353 - - 13,392,000 7,615,969 - 782,304 - 8,398,273 4,993,727
Motor Vehicles 15,872,555 - 2,832,373 - 18,704,928 8,216,758 - 2,251,140 - 10,467,897 8,237,030
Factory building and other construc�ons 262,190,090 - - 148,820,929 - 411,011,019 56,309,087 - 7,549,249 - 63,858,336 347,152,683
Sundry assets 21,012,559 - - - - 21,012,559 17,140,859 - 1,707,457 - 18,848,316 2,164,243

ii) Leased assets: - - - - - - - - - - - -

Plant and machinery - - - - - - - - - - - -
Motor Vehicles - - - - - - - - - - - -

b) Based on Revalua�on: 1,173,870,582 - - - - 1,173,870,582 119,969,511 - 11,591,714 - 131,561,225 1,042,309,357

Land and land development 798,420,922 - - - - 798,420,922 - - - - - 798,420,922
Plant and machinery 5,301,867 - - - 5,301,867 2,977,012 - 280,485 - 3,257,496 2,044,371
Office equipment 645,079 - - - - 645,079 548,317 - 53,757 - 602,074 43,005
Furniture and fixture 47,843 - - - - 47,843 36,971 - 3,624 - 40,595 7,248
Factory apparatus and loose tools 290,522 - - - - 290,522 145,261 - 14,241 - 159,503 131,019
Motor Vehicles - - - - - - - - - - - -
Building and other construc�ons 366,026,540 - - - - 366,026,540 113,594,813 - 10,978,124 - 124,572,936 241,453,604
Sundry assets 3,137,809 - - - - 3,137,809 2,667,137 - 261,484 - 2,928,621 209,188

Total (a+b) 3,140,406,880 - 36,086,001 986,110,729 (1,011,443) 4,161,592,167 1,275,330,174 - 122,962,581 (532,450) 1,397,760,305 2,763,831,861

Total (2018-2019) 3,103,765,273 39,657,508 - (3,015,901) 3,140,406,881 1,122,957,721 152,573,514 (201,060) 1,275,330,174 1,865,076,706

Allocation of depreciation:
Administra�ve overhead @ 5% 6,148,129
Factory overhead @ 95% 116,814,452
Total 122,962,581
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BPML (UNIT-3) Annexure-A.3
COST DEPRECIATION
Wri�en down
PARTICULARS Transfer from Adjustment/ Closing Adjustment/ Closing
Opening balance Reclassifica�on Addi�on Opening balance Reclassifica�on Deprecia�on value
CWIP Disposal balance Disposal balance
1 2 3 4 5 6 7=2+3+4+5+6 8 9 10 11 12=8+9+10+11 13=7-12
a) Based on Cost: 5,517,247,126 (111,791,600) 145,452,608 440,853,206 - 5,991,761,339 2,261,048,992 (56,620,476) 445,976,672 - 2,650,405,188 3,341,356,151
i) Own assets: 5,405,455,526 - 145,452,608 440,853,206 - 5,991,761,339 2,204,428,516 - 445,976,672 - 2,650,405,188 3,341,356,151
Land and land development 173,930,960 - - - - 173,930,960 - - - - - 173,930,960
Plant and machinery 4,115,256,096 - 134,392,358 341,364,083 - 4,591,012,538 1,859,992,643 - 368,093,427 - 2,228,086,070 2,362,926,468
Office equipment 29,571,920 - 5,798,186 - - 35,370,107 18,918,307 - 4,071,806 - 22,990,113 12,379,994
Furniture and fixture 15,355,565 - - - - 15,355,565 9,068,856 - 951,169 - 10,020,025 5,335,541
Factory apparatus and loose tools 11,442,965 - 850,500 - - 12,293,465 5,554,334 - 1,139,875 - 6,694,209 5,599,256
Motor Vehicles 283,755,387 - 4,411,562 - - 288,166,949 135,534,902 - 41,939,114 - 177,474,016 110,692,933
Factory building and other construc�ons 757,955,444 - - 99,489,122 - 857,444,566 162,019,540 - 28,087,858 - 190,107,398 667,337,168
Sundry assets 18,187,189 - - - - 18,187,189 13,339,935 - 1,693,423 - 15,033,358 3,153,831
ii) Leased assets: 111,791,600 (111,791,600) - - - - 56,620,476 (56,620,476) - - - -
Plant and machinery - - - - - - - - - - -
Motor Vehicles 111,791,600 (111,791,600) - - - 56,620,476 (56,620,476) - - - -
b) Based on Revalua�on: 818,429,383 - - - - 818,429,383 74,564,006 - 7,301,958 - 81,865,964 736,563,419
Land and land development 569,761,580 - - - 569,761,580 - - - - - 569,761,580
Plant and machinery 26,964,683 - - - 26,964,683 22,896,418 - 2,244,754 - 25,141,172 1,823,511
Office equipment 665,339 - - - 665,339 402,111 - 39,883 - 441,994 223,345
Furniture and fixture 634,294 - - 634,294 387,214 - 37,436 - 424,650 209,644
Factory apparatus and loose tools 1,346,516 - - - 1,346,516 637,998 - 62,151 - 700,149 646,367
Motor Vehicles 1,273,191 - - - 1,273,191 1,098,681 - 96,950 - 1,195,631 77,560
Building and other construc�ons 217,124,038 - - - 217,124,038 48,628,282 - 4,771,970 - 53,400,252 163,723,786
Sundry assets 659,742 - - - 659,742 513,303 - 48,813 - 562,116 97,626
-
Total (a+b) 6,335,676,510 (111,791,600) 145,452,608 440,853,206 - 6,810,190,723 2,335,612,998 (56,620,476) 453,278,630 - 2,732,271,152 4,077,919,570
Total (2018-2019) 5,683,270,146 - 191,414,925 496,638,080 (35,646,641) 6,335,676,509 1,812,755,649 - 526,175,217 (3,317,867) 2,335,612,999 4,000,063,511
Allocation of depreciation:
Administra�ve overhead @ 5% 22,663,932
Factory overhead @ 95% 430,614,699
Total 453,278,630
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BASHUNDHARA PAPER MILLS LIMITED
Schedule of Intangible Assets
As at 30 June 2020 Annexure-B

COST AMORTIZATION
Wri�en down
PARTICULARS Adjustment/ Closing Adjustment/ Closing
Opening balance Addi�on Opening balance Amor�za�on value
Disposal balance Disposal balance
1 2 3 4 5=2+3+4 6 7 8 9=6+7+8 10=5-9

1 SAP So�ware 189,147,070 - - 189,147,070 22,697,648 7,964,087 - 30,661,736 158,485,334

2 CRM So�ware 480,635 - - 480,635 131,730 39,648 - 171,378 309,257

Total 189,627,705 - - 189,627,705 22,829,378 8,003,735 - 30,833,113 158,794,592

Total (2017-2018) 189,627,705 - - 189,627,705 15,213,651 7,615,726 - 22,829,378 166,798,327

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Annual Report-2020
BASHUNDHARA PAPER MILLS LIMITED
Schedule of Right-of-use assets
Annexure-C
COST DEPRECIATION
Wri�en down
PARTICULARS Opening Closing Opening Closing
Reclassifica�on Addi�on Reclassifica�on Deprecia�on value
balance balance balance balance
1 Motor Vehicles - 111,791,600 - 111,791,600 - 56,620,476 14,002,104 70,622,580 41,169,020
Total - 111,791,600 - 111,791,600 - 56,620,476 14,002,104 70,622,580 41,169,020
Allocation of depreciation:
Administra�ve overhead @ 5% 700,105
Factory overhead @ 95% 13,301,999
Total 14,002,104
 Glossary
Accounting policies Specific principles, bases, conventions, rules and practices adopted by an enterprise in
preparing and presenting financial statements.
AIT Advance Income Tax
BPML / The Company Bashundhara Paper Mills Limited
BASs Bangladesh Accounting Standards
BFRSs Bangladesh Financial Reporting Standards
BB Bangladesh Bank
BoD Board of Directors
Basic earnings per share Basic income per share
BSEC Bangladesh Securities & Exchange Commission
Capital/Revaluationre serves Reserves identified for specific purposes and considered not available for distribution.
CGU Cash Generating Unit
Contingents Liabilities Conditions or situations at the balance sheet date the financial effect of which are to be
determined by future events which may or may not occur.
DTL/ DTA Deferred Tax Liability/ Deferred Tax Assets
DTE/ DTI Deferred Tax Expense/ Deferred Tax Income
Deferred Taxation The net tax effect on terms which have been included in the income statement, which would
only qualify for inclusion on a tax return at a future date.
Diluted earnings per share Diluted income per share.
Earnings per share Profit attributable to ordinary shareholders divided by the weighted average number of
ordinary shares in issue.
Equity Shareholders' fund.
ECL Expected Credit Loss
Finance lease Capital lease
FRA The Financial Reporting Act.
FRC The Financial Reporting Council
FRS Financial Reporting Standards
FVOCI Fair Value Through Other Comprehensive Income
FVTPL Fair Value Through Profit and Loss
HC High Court
IASs International Accounting Standards
IFRSs International Financial Reporting Standards
IFRIC International Financial Reporting Interpretations Committee
ICAB The Institute of Chartered Accountants of Bangladesh
ITO 1984 Income Tax Ordinance 1984
NAV Net Assets Value
NAVPS Net Assets Value per Share
NBR National Board of Revenue
Net Assets per Share Shareholders' funds divided by the weighted average number of ordinary shares in issue. A
basis of share valuation.
NOCFPS Net Operating Cash Flow per Share
OCI Other Comprehensive Income
PPE Property, Plant and Equipment/ Fixed Assets
Profit Income
Profit attributable to Net income after tax
shareholders
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Share capital Ordinary shares, capital stock or common stock issued and fully paid.
SIC Standard Interpretations Committee
WPP & WF Workers' Profit Participation and Welfare Fund

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 CORPORATE
GOVERNANCE
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STATEMENT ON
CORPORATE GOVERNANCE
Dear Valued Shareholders,

The Bashundhara Paper Mills Limited has always fulfilled its responsibilities as a trusted business organization and cautious
of its obligation to all its stakeholders. We are pleased to present to you the Annual Corporate Governance Report for the FY
2019-2020 of the Company.

One principle of corporate governance is shareholder recognition, which is a policy that ensures that all shareholders have a
say in the inner workings of a company. The Board of the Company are collectively responsible to shareholders for its
performance and for the organization’s governance framework, its value system and its growth strategies. The Board,
comprising luminaries from diverse fields, provide the leadership necessary for the Company to meet its performance
objectives within a robust framework of internal processes and controls. Transparency must be apparent, which should take
the form of record keeping and reports on income. It is valuable therefore to reflect specifically on the milestones we have
attained and the challenges we have considered in our corporate governance journey and to highlight our focus areas for the
year ahead.

Review on FY 2019-2020
As a truly people’s entity, the Company is fully transparent and maintains the highest levels of integrity and accountability
and best practiced. These practices have also become a key factor for investors and lenders when making their investment
and funding decisions. In light of the growing interest among stakeholders, including shareholders and potential investors,
we have given due attention in this report to cover governance issues that are of interest to all constituents of our ecosystem.
During under reviewed due to global pandemic the capital market was shut downed. To protect the interest of the
shareholder and to ensure the good governance of the company duly complied all the provision as the regulatory directives.
The company believes good governance practices have become substantially important for the development and
sustainability of the capital markets and the protection of investor interests. The Compliance Certificate in Annexure-B and
CG Code Status Report Annexure-C as directed by the BSEC and has included in the Annual Report as well.

Focused area Framework of Corporate Governance

The board and the management of this Company has paying highest concentration to protect the interest of its
stakeholders, we are taking as the responsibility to ensure the transparency and accountability in the company which can
able to ensure the good governance in company. In view of this we are engaged ourselves in to the frame work and focused
with the followings factors -

Shareholder's Shareholder's Regulatory

Interest Engagement Compliances

Dividend Strategic Company

Governance
Policy Planning Policies
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The Company’s corporate governance focused area and framework is also reviewed and updated from time to time by the
Board to ensure its relevance, effectiveness and impact in addressing the business challenges in an evolving and also fiercely
and unevenly competitive environment.

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 The most concentrated area for the Financial Year 2019-2020

▶ Companies Act 1994;

▶ BSEC’S Order, Directives, Notifications & Guidelines;
▶ Stock Exchanges Listing Regulations;
▶ Labour Act, 2006;
▶ Other applicable Law & Regulations;
▶ Provision of the Memorandum and Articles of Association of the Company;
▶ Composition of Board, Management & Executive Committee;
▶ Independency of the Board & Committee and its effectiveness;
▶ Separate entity of key Executive(s) and the role and responsibility;
▶ Financial Reporting as per the provision;
▶ Statement of delegated authorities of the Company;
▶ Statuary General Meeting & Committee meeting;
▶ Internal Control system;
▶ Corporate Social Responsibility & Relationship;
▶ Formulating Eco& Employee friendly work place and policy & guideline; and
▶ Standard practices in this sector.

As we believe, we are ensured the mentioned focused and concentrated factors by our strategic decision and administrative
activities in the company in light of compliance, accountability and transparency so, we are delighted to report about the
existence of good governance in all level of this company.

In conclusion, we uphold our commitment to good corporate governance and pledge to continue to work in meeting the
best interests of our shareholders and all other stakeholder groups being a fully compliant entity, the Company upholds the
spirit of transparency and accountability to the society through the establishment of an effective governance regime. Hence,
the Company drives good governance procedures across all functions, as it is a key input in managing the business
professionally, effectively and responsibly, which makes it transparent, ethical and law abiding, while ensuring accountability.
And this is way to introduce ourselves be a sustainable develop country.

With best wishes,

Sd/-
M. Mazedul Islam
Company Secretary in charge
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REPORT OF
AUDIT COMMITTEE
Report of the Audit Committee for the FY 2019-2020 of Bashundhara Paper Mills Limited
An Audit Committee (AC) was formed under the Code of Corporate Governance introduced by the Bangladesh Securities &
Exchange Commission (BSEC) with due course of work and some Terms of Reference as well.

Audit Committee
The Committee is to monitor the integrity of the financial statements of the Company, review of the same and when appro-
priate make its recommendations to the Board on matters including business risks, internal controls, compliance and audit.
The Committee has to be satisfied by means of required information, proper and satisfactory internal control systems,
identify and mitigate business risks and that the company’s business is conducted in a proper and financially sound manner
by following the Corporate Governance Code of BSEC under the reference no. SEC/CMRRCD/2006-158/207/Admin/80, dated
3 June, 2018 issued under section 2CC of the Securities and Exchange Ordinance,1969.

This Committee is comprised of three Members, appointed by the Board of the company. The Committee includes one
Independent Director, one Sponsor Shareholder/Director and the Company Secretary. The Audit Committee of Bashundha-
ra Paper Mills Ltd. being one of its prime Board Sub-Committees, has been assigned by the Board to discharge its
governance and compliance responsibilities.

Composition of the Audit Committee of Bashundhara Paper Mills Ltd. for the FY 2019-2020

Sl. No. Name of Members Position in Company Position in Committee

1. Mr. Khawaja Ahmedur Rahman Independent Director Chairman
2. Mr. Imrul Hasan Director Member
3. Mr. M. Naseemul Hye FCS Company Secretary Member Secretary

Qualifications of Members of the Audit Committee

All the Members of the AC of Bashundhara Paper Mills Ltd. possess adequate knowledge on business management and all
of them are financially literate as per the regulatory requirements and are also able to analyze and interpret, corporate laws,
finance issues and the financial statements. The Audit Committee has to coordinate with the Internal and External Auditors
of this Company as and when are required. The Committee has been empowered to examine the matters related to financial
and internal control management and other affairs of the company. The Committee ensures that adequate internal control,
check and balance system are in their places.

Meeting and attendance by the Members

In the FY 2019-2020 the Committee had four meeting and the proceedings were reported regularly to the Board of Directors.
The number of the AC meetings held and attendance of each members during the year 2019-2020 are mentioned below:

Sl. No. Name of Members Position Meeting attendance

1. Mr. Khawaja Ahmedur Rahman Chairman 4/4
2. Mr. Imrul Hasan Member 4/4
Mr. M. Naseemul Hye FCS 2/4
3. Member Secretary
Mr. M. Mazedul Islam 2/4
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 Roles and Responsibilities of the Audit Committee
The Committee of this company has been playing an effective role in providing a bridge between the Board, Members and
other Stakeholders. The roles and responsibilities of the Audit Committee are clearly mentioned in the Terms of Reference
of the Audit Committee. The Audit Committee in fulfilment of its responsibilities hold periodic meetings, at least once in a
quarter and provide appropriate decision to the management. The Committee meetings usually considered operational
performance, financial results, capital expenditures, products lines, procurement of raw materials, plant and machinery etc.
The Audit Committee during the period under review had found that the overall internal control and management process
of the company was satisfactory.

Major Roles and Responsibilites of Audit Committee

▶ Monitored and reviewed of the quarterly, half-yearly and periodic financial statements, other financial results of the
company and on the basis of its review and recommendation the Board of Directors considered those and given its
approval;
▶ Reviewed and recommended various issues pertaining the quarterly and annual financial statements;
▶ Submitted Reports to the Board of Directors on internal control issues and deviations on the basis of internal audit
reports;
▶ Reviewed and monitored compliance issues with laws, rules, regulations, code of conducts etc. with a view to
safeguard the interest of all stakeholders of this Company;
▶ Reviewed the performance of the external auditors of the Company and assessed their independence;
▶ Reviewed the statements of significant related party transactions submitted by the management from time to time;
▶ Recommended to the Board of Directors to consider the appointment of the statutory auditors of the Company for
the next FY 2019- 2020 in place of the existing auditors considering the proposal of the stakeholders.
▶ Overseen other issues within the terms of the code of conduct of the Audit Committee;

Activities of the Audit Committee during the period ended on 30 June 2020
During the period ended on 30 June 2020, the Committee had discharged the responsibilities as mentioned below:

Financial Reporting
Reviewed, among other issues, the quarterly, half yearly and the annual financial statements of the company FY 2019-2020.
It recommended to the Board of Directors for adoption and circulation those to the regulatory authorities as per the
directives in this respect.

Internal Control
During the year the Committee reviewed the effectiveness of internal control, also reviewed the audit objections and observa-
tions raised by the Internal Audit Department and action plans of the Internal Audit Department. It monitored and ensured
that the system of internal control was in place, effectively administered. It recommended to the Board of Directors for taking
steps needed to improve the system of internal control derived from the findings of the internal and external auditors and
from the understanding and by consultations of the audit committee members. In view of all, the Audit Committee is of the
opinion that the internal control procedures are adequate to present a true and fair view of the activities and financial status
of the Company.

Audit Committee Reports

The Audit Committee has prepared the annual audit committee report and submitting it to the Board which includes the
composition of the Audit Committee, its terms of reference, number of meetings held, summary of its activities during the
FY 2019-2020 and the existence of the internal audit services and summary of the activities for its inclusion in the audit report.

Internal Audit
The Audit Committee had also overseen and reviewed the procedure and tasks of the internal audit department. The
Committee has been satisfied that the Internal Audit Team has the competency and qualifications to complete its mandates
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and accomplish according to the approved audit plans. It observed that the Internal Audit has full, free and unrestricted
access to all activities, records, property and other issues necessary to perform its responsibilities. The Audit Committee also
got the co-operation of the Internal Audit Team in carrying out its duties and responsibilities during the FY 2019-2020.

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External Audit
The Audit Committee has forwarded the draft financial statements (which were placed to it by the management earlier) to
the external auditors after its review. The Board has to approve the audited financial statements and to place before the
members of the Company for their discussion and consideration in the forthcoming 27th Annual General Meeting. It also
reviewed the matters concerning the reappointment and the audit fees of the external auditors.

Related Party Transaction

In the FY 2019-2020 the company had carried out considerable numbers of transactions in carrying out its operation and also
with the related parties in its normal courses of business. The names of the related parties, the nature of the related party
relationships as well as information about the transactions, the amount of the transactions and the amount of outstanding
balances at the financial year ending have been monitored, disclosed and set out in the financial statements in accordance
with the provisions of BAS-24 “Related Party Disclosures”.

Compliance with existing laws & Regulations:

In the considering year, the directives, notifications, guidelines, rules and regulations of BSEC and the Stock Exchanges and
other regulatory agencies and the all internal policies, guidelines & instructions endorsed by the management & Board have
been duly complied.

The recommendation of the AC which containing the suggestions and recommendation has duly submit before the board
for its visualization of activities.

On behalf of Audit Committee -

Sd/- Sd/-
M. Mazedul Islam Khawaja Ahmedur Rahman
Member Secretary Chairman
Audit Committee Audit Committee

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 REPORT OF THE NOMINATION AND
REMUNERATION COMMITTEE
Report of the Nomination and Remuneration Committee
Bashundhara Paper Mills Limited was constituted the Nomination and Remuneration Committee (NRC) in accordance with
the directives of the Bangladesh Securities and Exchange Commission through its Corporate Governance Code under
notification no. BSEC/CMRRCD/2006-158/207/Admin/80 dated 03/06/2018.

The three members were appointed by the Board of Directors of the Company to adhere the directives as follows:

Sl. no. Name of members Position in Company Position in Committee

1. Mr. Khawaja Ahmedur Rahman Independent Director Chairman
2. Mr. Md. Imrul Hassan Director Member
3. Mr. M. Mazedul Islam Company Secretary in charge Member Secretary

During the period under review the Independent Director of this Company- Mr. Khawaja Ahmedur Rahman re-appointed as
the Chairman of the NRC and Mr. M. Mazedul Islam, Company Secretary in charge, performed as the Member Secretary of
the NRC as per considering Corporate Governance Code.

Qualifications of the committee Members

The members possess the pre-requisite knowledge on business management and good governance issues, financially
literate and able to analyze, understand and interpret corporate laws, finance and financial tools and have business expertise
in their respective arena.

Major Roles and Responsibilities

The roles and responsibilities of the NRC have been clearly mentioned in the Terms of Reference of the Committee as
approved by the Board of Directors of Bashundhara Paper Mills Ltd.

▶ The Committee discharged its responsibility by holding a meeting in the FY-2019-2020 and provided required
advises recommendation and suggestions to the Board of Directors to execute those duly.

▶ In the meeting the committee it considered and assisted the Board in formulation of the nomination criteria and
determining of the qualifications of the prospective candidates attributes, experiences etc. of the directors and top
level executives and the remunerations of directors, top level executive of the company as well as.

▶ The Committee reviewed the drafted succession plan designed for the executive and non-executive appointments
to the Board, taking into account the objectives of the Company and the rotation of directors. In this process the
Committee also considered the business the skills, commitment and knowledge as to be required for operation of
this Company.
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Meeting Attendance by the Members

The Committee held 01 (one) no. of meeting during the period ended on 30 June 2020. The Committee has placed its report
to the Board of Directors in due course. The attendance status of the NRC Committee Meeting is appended below:

Sl. no. Name of members Position Meeting held & Attendance

1. Mr. Khawaja Ahmedur Rahman Chairman 1/1
2. Mr. Md. Imrul Hassan Member 1/1
3. Mr. M. Mazedul Islam Member Secretary 1/1

Activity summary of NRC during the FY 2019-2020

▶ During the year under review the Committee has evaluated for recommendation of 02 (two) non-executive
Directors- i. Mr. Imrul Hassan and ii. Mr. Md. Nazmul Alam Bhuiyan Nominated Director of East West Properties
Development (Pvt.) Ltd. who were to resign by rotation and eligible for their re-elections/ appointments as per the
provisions of the Article no. 100 and Article no. 101 of the Article of Association of the Company.

▶ Guidance to the Board for the composition board along with their practical experience and reputation;

▶ Evaluation and recommendation to revised the top management compensation in line of the requirement,
expertise, market demand and availability in the related filed;

▶ Considered and accommodated various issues in connection with appointments, retirements in the Board of
Directors;

▶ Reviewed the issues including the company’s requirement for employees as to be placed at different levels, review
the employee benefits as policies of company and determine their selection procedures and criteria;

▶ Reviewed the performance of the senior-level executives of the Company and placed the recommendation on their
findings;

▶ Reviewed the company’s human resources status and the development and training policies of the Company
aimed for the employees;

▶ Reviewed vacancy positions or new position or recommend to create new position and reported and/or
recommended and forward to the board for ultimate appraisal;

▶ Overseen other issues within the Code of Conduct of the NRC.

The Committee expressing its of the view that the nomination, re-election and remuneration as well as internal control were
adequate to present a true and fair view of the Administration, HR activities and Internal Governance status of the Company.
The Report of NRC is made in accordance with resolution of the Board of Directors on 25 June 2020.

On behalf of Nomination and Remuneration Committee -

Sd/- Sd/-
M. Mazedul Islam Khawaja Ahmedur Rahman
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Member Secretary Chairman

Nomination and Remuneration Committee Nomination and Remuneration Committee

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CERTIFICATE ON CORPORATE
GOVERNANCE CODE
Annexure-B
[as per condition No.1(5)(xxvii) of the CG Code,2018]

Report to the Shareholders of

Bashundhara Paper Mills Limited
On
Compliance of Corporate Governance Code

We have examined the compliance status to the Corporate Governance Code by Bashundhara Paper Mills Limited for the
year ended 30 June, 2020. This Code relates to the Notification No. BSEC/CMRRCD/2006-158/ 207/ Admin/80 dated 3 June,
2018 of the Bangladesh Securities and Exchange Commission.

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
the Corporate Governance Code.

This is a scrutiny and verification and an independent audit on compliance of the conditions of the Corporate Governance
Code as well as the provisions of 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 this Corporate Gover-
nance Code.

We state that we have obtained all the information and explanations, which we have required, and after due scrutiny and
verification thereof, we report that, in our opinion:

a) The Company has complied with the conditions of the Corporate Governance Code as Stipulated in the above
mentioned Corporate Governance Code issued by the Commission;
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 governance of the company is satisfactory.

For: Itrat Husain & Associates

Sd/-
Itrat Husain FCMA, FCS
Dhaka, 07 November, 2020 Chief Executive
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 STATUS REPORT ON CORPORATE
GOVERNANCE CODE
Annexure-C
[as per condition No. 1(5)(xxvii) of the CGCode,2018]

Corporate Governance Code Disclosures of

Bashundhara Paper Mills Ltd. for the Financial Year 2019-2020
Status of compliance with the conditions imposed by the Commission’s Notification No. SEC/CMRRCD/2006-158/207/Ad-
min/80, dated 3 June, 2018 issued under section 2CC of the Securities and Exchange Ordinance,1969:

Report under Condition No. 9

Compliance Status
(Put √ in the appropriate
Condition column) Remarks
Title
No. (if any)
Not
Complied
Complied

1. Board of Director

Total number of Company’s Board of Directors shall not

1(1) √
be less than 5 (five) and more than 20 (twenty);

One-fifth (1/5) of the total number of directors in the

1(2)(a) √
company’s Board be Independent Directors (ID);

ID does not hold any shares or holds less than one

1(2)(b)(i) √
percent (1%) shares in the company;

ID not a sponsor of the company nor connected with

any sponsor/director/nominated director/ shareholder
of the company or any of its associates, sister concerns,
subsidiaries and parents or holding entities who holds
1(2)(b)(ii) √
one percent (1%) or more shares of the total paid-up
shares of the company by family relationship and his/
her family members also shall not hold above
mentioned shares in the company;

who has not been an executive of the company in

1(2)(b)(iii) √
immediately preceding 2 (two) financial years;

who does not have any other relationship, whether

1(2)(b)(iv) √
pecuniary or otherwise;

who is not a member or TREC holder, director or officer

1(2)(b)(v) √
of any stock exchange;

who is not a shareholder, director excepting

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independent director or officer of any member or TREC

1(2)(b)(vi) √
holder of stock exchange or an intermediary of the
capital market;

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 Compliance Status
(Put √ in the appropriate
Condition column) Remarks
Title
No. (if any)
Not
Complied
Complied

1. Board of Director

who is not a partner or an executive or was not a

partner or an executive during the preceding 3 (three)
years of the concerned company’s statutory audit firm
1(2)(b)(vii) √
or audit firm engaged in internal audit services or audit
firm conducting special audit or professional certifying
compliance of this Code;

Independent director in more than 5 (five) listed

1(2)(b)(viii) √
companies;

who has not been convicted by a court of competent

1(2)(b)(ix) √
jurisdiction as a loan defaulter of Bank or NBFI);

who has not been convicted for a criminal offence

1(2)(b)(x) √
involving moral turpitude;

Independent director(s) shall be appointed by the

1(2)(c) √
Board and approved by the shareholders in the AGM;

The post of independent director(s) cannot remain

1(2)(d) √
vacant for more than 90 (ninety) days;

The tenure of office of an independent director shall be

1(2)(e) √
for a period of 3 (three) years, which may be extended
for 1 (one) tenure only;

Independent director shall be a knowledgeable

1(3)(a) √
individual with integrity.

ID is business leader who is or was a promoter or

director of an unlisted company having minimum
√
paid-up capital of Tk.100 million or any listed company
1(3)(b)(i)
or a member of any national or international chamber
of commerce or business association;

who is or was a top level executive not lower than

CEO/MD/DMD/CFO/Head of Finance or Accounts/
CS/HIAC/Head of Legal Service or a candidate with
1(3)(b)(ii) n/a
equivalent position of an unlisted company having
minimum paid-up-capital of Tk.100.00 million or of a
listed company;

Former official of government or statutory or

autonomous or regulatory body in the position not
below 5th Grade of the national pay scale, who has at
1(3)(b)(iii) n/a
least educational background of bachelor degree in
economics or commerce or business or Law;
Printed on Bashundhara Paper

University Teacher who has educational background in

1(3)(b)(iv) n/a
Economics or Commerce or Business Studies or Law; or

Bashundhara Paper Mills Ltd.

155
Annual Report-2020
 Compliance Status
(Put √ in the appropriate
Condition column) Remarks
Title
No. (if any)
Not
Complied
Complied

1. Board of Director

Professional who is or was an Advocate practicing at

least in the High Court Division of Bangladesh Supreme
1(3)(b)(v) Court or CA/CMA/CFA/CCA/CPA/ Chartered n/a
Management Accountant/ CS or equivalent
qualification;

1(3)(c) Independent director shall have at least 10 (ten) √

years of experiences in any field as clause (b);

1(3)(d) In special cases, the above qualifications or experiences

may be relaxed subject to prior approval of the n/a
Commission.

1(4)(a) Chairperson of the Board and the MD and/or CEO of √

the company shall be filled by different individuals;

1(4)(b) MD and/or CEO of a listed company shall not hold the √

same position in another listed company;

1(4)(c) Chairperson of the Board shall be elected from among √

the non-executive directors of the company;

1(4)(d) Board shall clearly define respective roles and

responsibilities of the Chairperson and the MD and/or √
CEO;

In the absence of the Chairperson of the Board the

1(4)(e) remaining members may elect one of themselves from √
non- executive directors as Chairperson for that
particular Board’s meeting;

1(5)(i) An industry outlook and possible future developments √

in the industry;

1(5)(ii) The segment-wise or product-wise performance; √

Risks and concerns including internal and external

1(5)(iii) risk factors, threat and negative impact on √
environment, if any;

1(5)(vi) A discussion on COGS, GP Margin and NP Margin, √

where applicable;

1(5)(v) A discussion on continuity of any extraordinary √

activities and their implications (gain or loss);
Printed on Bashundhara Paper

A detailed discussion on related party transactions

1(5)(vi) along with a statement showing amount, nature of
√
related party, nature of transactions and basis of
transactions of all related party transactions;

Bashundhara Paper Mills Ltd.

156
Annual Report-2020
 Compliance Status
(Put √ in the appropriate
Condition column) Remarks
Title
No. (if any)
Not
Complied
Complied

1. Board of Director

A statement of utilization of proceeds raised through

1(5)(vii) public issues, rights issues and/or any other √
instruments;

An explanation if the financial results deteriorate after

1(5)(viii) the company goes for IPO, RPO, Rights Share Offer, n/a
Direct Listing, etc.;

An explanation on any significant variance that occurs

1(5)(ix) between Quarterly Financial performances and Annual n/a
F/S;

A statement of remuneration paid to the directors

1(5)(x) √
including independent directors;

A statement that the F/S prepared by the management

1(5)(xi) √
of the issuer company present fairly its state of affairs

A statement that proper books of account of the issuer

1(5)(xii) √
company have been maintained;

A statement that appropriate accounting policies have

been consistently applied in preparation of the
√
financial statements and that the accounting
1(5)(xiii)
estimates are based on reasonable and prudent
judgment;

A statement that IAS or IFRS, as applicable in

Bangladesh, have been followed in preparation of the
1(5)(xiv) √
FY and any departure there from has been adequately
disclosed;

A statement that the system of internal control is sound

√
in design and has been effectively implemented
1(5)(xv)
and monitored;

A statement that minority shareholders have been

protected from abusive actions by, or in the interest of,
1(5)(xvi) √
controlling shareholders acting either directly or
indirectly and have effective means of redress;

A statement that there is no significant doubt upon the

issuer company’s ability to continue as a going concern,
if the issuer company is not considered to be a going √
1(5)(xvii) concern, the fact along with reasons there of shall be
disclosed;

An explanation that significant deviations from the last

Printed on Bashundhara Paper

year’s operating results of the issuer company shall

1(5)(xviii) be highlighted and the reasons thereof shall be √
explained;

Bashundhara Paper Mills Ltd.

157
Annual Report-2020
 Compliance Status
(Put √ in the appropriate
Condition column) Remarks
Title
No. (if any)
Not
Complied
Complied

1. Board of Director

A statement where key operating and financial data of

1(5)(xix) at least preceding 5 (five) years shall be summarized; √

An explanation on the reasons if the issuer company

1(5)(xx) has not declared dividend (cash or stock) for the year; √

Board’s statement to the effect that no bonus share or

1(5)(xxi) stock dividend has been or shall be declared as interim √
dividend;

Total number of Board meetings held during the year

1(5)(xxii) and attendance by each director; √

Parent or Subsidiary or Associated Companies and

1(5)(xxiii)(a) other related parties (name-wise details); n/a

1(5)(xxiii)(b) Directors, CEO, CS, CFO, HIAC and their spouses and √
minor children (name-wise details);

1(5)(xxiii)(c) Executives; √

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

interest in the company (name-wise details);

1(5)(xxiv)(a) a brief resume of the director; √

1(5)(xxiv)(b) Nature of Directors expertise in specific functional √

areas;

Names of companies in which the person also holds the

1(5)(xxiv)(c) directorship and the membership of committees of √
the Board;

1(5)(xxv)(a) Accounting policies and estimation for preparation of √

financial statements;

Changes in accounting policies and estimation, if any,

1(5)(xxv)(b) clearly describing the effect on financial performance √
or results and financial position as well as cash flows in
absolute figure for such changes;

Comparative analysis (including effects of inflation) of

financial performance or results and financial position √
1(5)(xxv)(c) as well as cash flows for current financial year with
immediate preceding five years explaining reasons
thereof;
Printed on Bashundhara Paper

Compare such financial performance or results and

1(5)(xxv)(d) financial position as well as cash flows with the peer √
industry scenario;

Bashundhara Paper Mills Ltd.

158
Annual Report-2020
 Compliance Status
(Put √ in the appropriate
Condition column) Remarks
Title
No. (if any)
Not
Complied
Complied

1. Board of Director

Briefly explain the financial and economic scenario of

1(5)(xxv)(e) the country and the globe; √

Risks and concerns issues related to the financial

statements, explaining such risk and concerns
1(5)(xxv)(f) mitigation plan of the company; and √

Future plan or projection or forecast for company’s

operation, performance and financial position, with
1(5)(xxv)(g) justification thereof, i.e., actual position shall be √
explained to the shareholders in the next AGM;

Declaration or certification by the CEO and the CFO to

the Board as required under condition No. 3(3) shall be
1(5)(xxvi) disclosed as per Annexure-A; √

The Report as well as certificate regarding compliance

of conditions of this Code as required under condition
1(5)(xxvii) No. 9 shall be disclosed as per Annexure-B and √
Annexure-C.

The company shall conduct its Board meetings and

1(6) √
record the minutes of the meetings as well as keep
required books and records..

The Board shall lay down a code of conduct, based on

1(7)(a) √
the NRC at condition No. 6.

The code of conduct as determined by the NRC shall be

1(7)(b) √
posted on the website of the company

2. Governance of Board of Directors of Subsidiary Company

Provisions relating to the composition of the Board of
the holding company shall be made applicable to
2(a) n/a
the composition of the Board of the subsidiary
company;

At least 1 (one) Independent director on the Board of

the holding company shall be a director on the Board of
2(b) n/a
the subsidiary company;

The minutes of the Board meeting of the subsidiary

company shall be placed for review at the following
2(c) n/a
Board meeting of the holding company;

The minutes of the respective Board meeting of the

holding company shall state that they have reviewed
2(d) n/a
Printed on Bashundhara Paper

the affairs of the subsidiary company also;

Bashundhara Paper Mills Ltd.

159
Annual Report-2020
 Compliance Status
(Put √ in the appropriate
Condition column) Remarks
Title
No. (if any)
Not
Complied
Complied

The Audit Committee of the holding company shall

also review the financial statements, in particular the
2(e)
investments made by the subsidiary company. n/a
3. MD/CEO/CFO/HIAC and CS

The Board shall appoint a MD or Chief Executive CEO, a

3(1)(a)
CS, a CFO and a HIAC; √

The positions of the MD or Chief Executive Officer

3(1)(b) CEO, CS, CFO and HIAC shall be filled by different
individuals; √

The MD or CEO, CS, CFO and HIAC of a listed company

3(1)(c) shall not hold any executive position in any other √
company at the same time;

The Board shall clearly define respective roles,

3(1)(d) responsibilities and duties of the CFO, the HIAC and the √
CS;

The MD or CEO, CS, CFO and HIAC shall not be removed √

3(1)(e)
from their position without approval of the Board

The MD or CEO, CS, CFO and HIAC of the company shall √

3(2)
attend the meetings of the Board:

These statements do not contain any materially untrue

√
3(3)(a)(i) statement or omit any material fact or contain
statements that might be misleading; and

These statements together present a true and fair view

3(3)(a)(ii) of the company’s affairs and are in compliance with
√
existing accounting standards and applicable laws;

The MD or CEO and CFO shall also certify that there are,
to the best of knowledge and belief, no transactions
√
3(3)(b) 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 or its members;

The certification of the MD or CEO and CFO shall be

3(3)(c) √
disclosed in the Annual Report.
4. Board of Directors’ Committee

4(i) Audit Committee

√

4(ii) Nomination and Remuneration Committee

√
Printed on Bashundhara Paper

5. Audit Committee
The company shall have an Audit Committee as a sub-
5(1)(a) √
committee of the Board;

Bashundhara Paper Mills Ltd.

160
Annual Report-2020
 Compliance Status
(Put √ in the appropriate
Condition column) Remarks
Title
No. (if any)
Not
Complied
Complied
5. Audit Committee
The Audit Committee shall assist the Board in ensuring
5(1)(b) that the FS reflect true and fair view of the state of √
affairs of the company.

5(1)(c) The Audit Committee shall be responsible to the Board; √

5(2)(a) The Audit Committee shall be composed of at least 3 √

(three) members;

The Board shall appoint members of the Audit

5(2)(b) Committee who shall be non-executive directors of the √
company excepting Chairperson of the Board and shall
include at least 1 (one) Independent director;

All members of the audit committee should be

5(2)(c) “financially literate” and at least 1 (one) member shall √
have accounting or related financial management
background and 10 (ten) years of such experience;

When the term of service of any Committee member

expires or there is any circumstance causing any
Committee member to be unable to hold office before
expiration of the term of service, thus making the
5(2)(d) number of the Committee members to be lower than √
the prescribed number of 3 (three) persons, the Board
shall appoint the new Committee member to fill up the
vacancy immediately or not later than 1 (one) month
from the date of vacancy in the Committee to ensure
continuity of the performance of work of the Audit
Committee;

The company secretary shall act as the secretary of the

5(2)(e) √
Committee;

The quorum of the Audit Committee meeting shall not

5(2)(f) √
constitute without at least 1 (one) independent director.

The Board shall select 1 (one) member of the Audit

Committee to be Chairperson of the Audit Committee,
5(3)(a) √
who shall be an independent director;

In the absence of the Chairperson of the Audit

Committee, under condition No. 5(4)(b) and the reason
5(3)(b) √
of absence of the regular Chairperson shall be duly
recorded in the minutes;

Chairperson of the Audit Committee shall remain

5(3)(c) √
Printed on Bashundhara Paper

present in the Annual General Meeting.

The Audit Committee shall conduct at least its four

5(4)(a) √
meetings in a financial year;

Bashundhara Paper Mills Ltd.

161
Annual Report-2020
 Compliance Status
(Put √ in the appropriate
Condition column) Remarks
Title
No. (if any)
Not
Complied
Complied
5. Audit Committee

The quorum of the meeting of the Audit Committee

5(4)(b) shall be constituted in presence of either two members √
or two-third of the members;

5(5)(a) Oversee the financial reporting process; √

5(5)(b) Monitor choice of accounting policies and principles; √

5(5)(c) Monitor Internal Audit and Compliance process and √

review of the Internal Audit and Compliance Report;

5(5)(d) Oversee hiring and performance of external auditors; √

Hold meeting with the external or statutory auditors

5(5)(e) for review of the annual financial statements before √
submission to the Board for approval or adoption;

5(5)(f) Review along with the management, the annual F/S √

before submission to the Board for approval;

Review along with the management, the quarterly and

5(5)(g) half yearly financial statements before submission to √
the Board for approval;

5(5)(h) Review the adequacy of internal audit function; √

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

before disclosing in the Annual Report;

5(5)(j) Review statement of all related party transactions √

submitted by the management;

5(5)(k) Review Management Letters/Letter of Internal Control √

weakness issued by statutory auditors;

Oversee the determination of audit fees based on

5(5)(l) scope and magnitude, level of expertise deployed and √
time required for effective audit and evaluate the
performance of external auditors; and

Oversee whether the proceeds raised through IPO/

5(5)(m) RPO or Rights Share Offer have been utilized as per the √
purposes stated in relevant offer document or
prospectus approved by the Commission:

5(6)(a)(i) The Audit Committee shall report on its activities to the √

Printed on Bashundhara Paper

Board.

5(6)(a)(ii)(a) Report on conflicts of interests; √

Bashundhara Paper Mills Ltd.

162
Annual Report-2020
 Compliance Status
(Put √ in the appropriate
Condition column) Remarks
Title
No. (if any)
Not
Complied
Complied
5. Audit Committee

Suspected or presumed fraud or irregularity or material

5(6)(a)(ii)(b) defect identified in the internal audit and compliance n/a
process or in the financial statements;

Suspected infringement of laws, regulatory

5(6)(a)(ii)(c) compliances including securities related laws, rules and n/a
regulations; and

5(6)(a)(ii)(d) Any other matter which the Audit Committee deems n/a
necessary shall be disclosed to the Board immediately;

If the Audit Committee has reported to the Board

about anything which has material impact on the
financial condition and results of operation and has
discussed with the Board and the management that
5(6)(b) any rectification is necessary and if the Audit n/a
Committee finds that such rectification has been
unreasonably ignored, the Audit Committee shall
report such finding to the Commission, upon reporting
of such matters to the Board for three times or
completion of a period of 6 (six) months from the date
of first reporting to the Board, whichever is earlier

Report on activities carried out by the Audit

Committee, including any report made to the Board
5(7) under condition No. 5(6)(a)(ii) above during the year, √
shall be signed by the Chairperson of the Audit
Committee and disclosed in the annual report of the
issuer company.
6. Nomination and Remuneration Committee (NRC)

6(1)(a) NRC as a sub-committee of the Board; √

The NRC shall assist the Board in formulation of the

nomination criteria or policy for determining
6(1)(b) qualifications, positive attributes, experiences and √
independence of directors and top level executive as
well as a policy for formal process of considering
remuneration of directors, top level executive;

The Terms of Reference (ToR) of the NRC shall be clearly

set forth in writing covering the areas stated at the
6(1)(c) √
condition No.6(5)(b).

The Committee shall comprise of at least three

6(2)(a) √
members including an independent director;
Printed on Bashundhara Paper

All members of the Committee shall be

6(2)(b) √
non-executive directors;

Bashundhara Paper Mills Ltd.

163
Annual Report-2020
 Compliance Status
(Put √ in the appropriate
Condition column) Remarks
Title
No. (if any)
Not
Complied
Complied
6. Nomination and Remuneration Committee (NRC)

Members of the Committee shall be nominated and √

6(2)(c)
appointed by the Board;

The Board shall have authority to remove and appoint √

6(2)(d)
any member of the Committee;

In case of death, resignation, disqualification, or

removal of any member of the Committee or in any
other cases of vacancies, the board shall fill the vacancy √
6(2)(e)
within 180 (one hundred eighty) days of occurring such
vacancy in the Committee;

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 feels that advice or
6(2)(f) n/a
suggestion from such external expert and/or
member(s) of staff shall be required or valuable for the
Committee;

The company secretary shall act as the secretary of √

6(2)(g)
the Committee;

The quorum of the NRC meeting shall not constitute √

6(2)(h)
without attendance of at least an independent director;

No member of the NRC shall receive, either directly or

indirectly, any remuneration or fees other than √
6(2)(i)
Director’s fees or honorarium from the company.

The Board shall select 1 (one) member of the NRC to be

Chairperson of the Committee, who shall be an √
6(3)(a)
independent director;

In the absence of the Chairperson of the NRC, the

remaining members may elect one of themselves as
Chairperson for that particular meeting, the reason of √
6(3)(b)
absence of the regular Chairperson shall be duly
recorded in the minutes;

Chairperson of the NRC shall attend the AGM to answer √

6(3)(c)
the queries of the shareholders:

The NRC shall conduct at least one meeting in a √

6(4)(a)
financial year;

The Chairperson of the NRC may convene any

Printed on Bashundhara Paper

n/a
emergency meeting upon request by any member of
6(4)(b)
the NRC;

Bashundhara Paper Mills Ltd.

164
Annual Report-2020
 Compliance Status
(Put √ in the appropriate
Condition column) Remarks
Title
No. (if any)
Not
Complied
Complied
6. Nomination and Remuneration Committee (NRC)

The quorum of the meeting of the NRC shall be

6(4)(c) constituted in presence of either two members or two √
third of the members of the Committee.

6(4)(d) The proceedings of each meeting of the NRC shall duly √

be recorded in the minutes.

6(5)(a) NRC shall be independent and responsible or √

accountable to the Board and to the shareholders;

The level and composition of remuneration is

6(5)(b)(i)(a) reasonable and sufficient to attract, retain and motivate √
suitable directors to run the company successfully;

The relationship of remuneration to performance is

6(5)(b)(i)(b) clear and meets appropriate performance benchmarks; √
and

Remuneration to directors, top level executive involves

a balance between fixed and incentive pay reflecting
6(5)(b)(i)(c) short and long-term performance objectives √
appropriate to the working of the company and its
goals;

Devising a policy on Board’s diversity taking into

6(5)(b)(ii) consideration age, gender, experience, ethnicity, √
educational background and nationality;

Identifying persons who are qualified to become

directors and who may be appointed in top level
6(5)(b)(iii) executive position in accordance with the criteria laid √
down, and recommend their appointment and
removal to the Board;

6(5)(b)(iv) Formulating the criteria for evaluation of performance √

of independent directors and the Board;

Identifying the company’s needs for employees at

6(5)(b)(v) different levels and determine their selection, transfer √
or replacement and promotion criteria;

6(5)(b)(vi) Developing, recommending and reviewing annually √

the company’s human resources and training policies;

The company shall disclose the nomination and

6(5)(c) remuneration policy and the evaluation criteria and √
activities of NRC during the year at a glance in its
Printed on Bashundhara Paper

annual report.

Bashundhara Paper Mills Ltd.

165
Annual Report-2020
 Compliance Status
(Put √ in the appropriate
Condition column) Remarks
Title
No. (if any)
Not
Complied
Complied
7. External or Statutory Auditors

Appraisal or valuation services or fairness opinions;

7(1)(i) √

Financial information systems design and

7(1)(ii) √
implementation;

Book-keeping or other services related to the

7(1)(iii) √
accounting records or financial statements;

Broker-dealer services;
7(1)(iv) n/a

Actuarial services
7(1)(v) n/a

Internal audit services or special audit services;

7(1)(vi) n/a

Any service that the Audit Committee determines;

7(1)(vii) √

Audit or certification services on compliance of

corporate governance as required under condition No.
7(1)(viii) √
9(1); and

Any other service that creates conflict of interest.

7(1)(ix) √

No partner or employees of the external audit firms

shall possess any share of the company they audit at
7(2) √
least during the tenure.

Representative of External or Statutory Auditors

7(3) √
present in the Shareholders’ Meeting AGM or EGM.
8. Maintaining a Website

The company shall have an official website linked with

8(1) √
the website of the stock exchange.

The company shall keep the website functional from

8(2) √
the date of listing.

The company shall make available the detailed

8(3) √
disclosures on its website as per listing regulations.
9. Reporting and Compliance of Corporate Governance

The company shall obtain a certificate from a

practicing Professional Accountant or Secretary (CA or
9(1) √
CMA or CS) and disclosed in the Annual Report.

The Compliance Auditors’ shall be appointed by the

9(2) √
shareholders in the annual general meeting.
Printed on Bashundhara Paper

The directors of the company shall state, in accordance

9(3) √
with the Annexure-C

Bashundhara Paper Mills Ltd.

166
Annual Report-2020
 Printed on Bashundhara Paper

Bashundhara Paper Mills Ltd.

167
Annual Report-2020
 ACHIEVEMENTS
& OTHERS
Printed on Bashundhara Paper

Bashundhara Paper Mills Ltd.

168
Annual Report-2020
GLOBAL
GLOBALFOOTPRINT
FOOTPRINT
OF
OFBPML
BPML

Export Export
destination
destination
of paper
of&paper
paper&products
paper products
of the comapny.
of the comapny.
Printed on Bashundhara Paper

Bashundhara Paper Mills Ltd.

169
Annual Report-2020
 AWARD AND CERTIFICATION
Printed on Bashundhara Paper

Bashundhara Paper Mills Ltd.

170
Annual Report-2020
 CERTIFICATO N.
RINA-COC-000101 La validità di questo
certificato deve essere
CERTIFICATE No. verificata sul sito
http://info.fsc.org
SI CERTIFICA CHE LA CATENA DI CUSTODIA DI
IT IS HEREBY CERTIFIED THAT CHAIN OF CUSTODY OF The validity of this
certificate shall be
BASHUNDHARA PAPER MILLS LTD. verified on
http://info.fsc.org

Plot-3, Block –G, Umme Kulsum Road, Bashundhara R/A, Dhaka-1229, Bangladesh
NELLE SEGUENTI UNITA’ OPERATIVE / IN THE FOLLOWING OPERATIONAL UNITS

Plot-3, Block –G, Umme Kulsum Road, Bashundhara R/A, Dhaka-1229, Bangladesh
Unit-03: Anarpura, Gazaria, Munshigonj, Bangladesh
E’ CONFORME ALLA NORMA / IS IN COMPLIANCE WITH THE STANDARD
Per l’elenco completo
FSC®-COC dei prodotti coperti dal
certificato fare
FSC-STD-40-004 V3-0 riferimento al database
sul sito:
http://info.fsc.org

PER I SEGUENTI PRODOTTI / FOR THE FOLLOWING PRODUCTS

For the full list of
Categorie di materiale FSC / FSC product groups
Nome del/i gruppo/i di prodotto/i secondo la FSC-STD-40-004a
Processi produttivi / Production processes Material Categories (es. FSC 100%,
Name of group/s of product/s according to the FSC-STD-40-004a
FSC Mix, FSC Recycled) covered by the
certificate refer to the
P2.3 - Wrapping and packaging paper Manufacturing of Wrapping and database on the site:
P6.4 – Toilet paper / bathroom tissue packaging paper, Toilet paper / http://info.fsc.org
P6.5 - Sanitary towels, tampons, diapers and bathroom tissue and sanitary FSC Mix
similar towels, tampons, diapers and
similar

Il presente certificato deve rimanere proprietà del RINA e tutte le copie o riproduzioni devono essere restituite o distrutte se richiesto dal RINA
This certificate shall remain the property of RINA and all copies or reproduction of this shall be returned or destroyed if requested by RINA
Questo certificato di per sè non costituisce un’evidenza che un particolare prodotto fornito dal titolare del certificato sia certificato FSC (o Legno Controllato FSC).
I prodotti offerti, spediti o venduti dal titolare del certificato possono essere considerati coperti solo dallo scopo di que sto certificato quando la dichiarazione FSC richiesta è chiaramente indicata
nelle fatture e nei documenti di trasporto
This certificate itself does not constitute evidence that a particular product supplied by the certificate holder is FSC -certified (or FSC-Controlled Wood). Products offered, shipped or sold by the
certificate holder can only be considered covered by the scope of this certificate when the required FSC claim is clearly stated on invoices and shipping documents
La validità del presente certificato è subordinata a sorveglianza periodica annuale / semestrale ed al riesame completo della catena di custodia con periodicità quinquennale.
The validity of this certificate is dependent on an annual/six monthly audit and on a complete review, every five years, of t he chain of custody
L'uso e la validità del presente certificato sono soggetti al rispetto del documento RINA: Regolamento per la Certificazione della Catena di Custodia dei prodotti di origine forestale
The use and validity of this certificate are subject to compliance with the RINA document: Rules for the Certification of Chain of Custody of forest products

Prima Emissione Laura Severino

First Issue 23/03/2016
Sustainability & Food Certification Compliance Head
Emissione Corrente
Current Issue 19/07/2018
Data scadenza
22/03/2021
Expiry Date
RINA Services SpA
Via Corsica 12 – 16128 Genova Italy
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 CORPORATE SOCIAL
RESPONSIBILITY
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BRAND
COMMUNICATIONS

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 26TH AGM IN
ACTION
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PROXY
FORM

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 Notes
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 PROXY FROM

I/We……………………………………………………………………………………………of……………………………………………………………………………………………….………
………………………………………………………………………………………………………………………………………………………………………………………………………………..…
being Member of Bashundhara Paper Mills Limited, hereby appoint ..........................................................................
...................................................................................................................................................................................................................................................
of……………………………………………………………………………………………………………………………………………………………………………….....................................
as my/our proxy to attend and vote for me/us on my/our behalf at the 27th Annual General
Meeting of the Company to be held on Thursday, 24 December, 2020 at 10:30 AM (local time)
and/or at any adjournment thereof.

As witness I/We put my/our hand this …………………………………………………………... day of……………………………………2020.

Signature of the Shareholder : ……………………………………………………………….

Affix
Signature of the Proxy : ………………………………………………………………. the revenue
stamp of
Register Folio no. /BO ID no. : ……………………………………………………………… Taka 20/-
Numbers of shares held : ………………………………………………………………..

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 Registered Office of the company or email to

[email protected] not later than 72 hours before the time fixed for the meeting.

.................................................................................................................................................................................................................................................

ATTENDANCE SLIP
I, hereby record my attendance at the 27th ANNUAL GENERAL MEETING being held on Thursday,
24 December, 2020 at 10:30 AM (local time) through Digital Platform.

Name of Shareholder : ……………………………………..…. Signature of Shareholder : ..................................………………….....

Folio no. /BO ID no. : …………………………………..……. Numbers of shares held : ...................................……………………..
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Name of Proxy : ..………………………………………. Signature of proxy : ..............................................................

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Bashundhara Paper Mills Ltd.

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Registered Office: Head Office:
Plot 125/A, Road-2, Bashundhara Industrial Headquaters-2
Block-A, Bashundhara R/A Plot-56/A, Umme Kulsum Road, Block-C
Dhaka-1229. Bashundhara R/A, Dhaka-1229.

Email: [email protected] Web: bashundharapapermills.com