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This is an annual report of an Agricultural Marketing Company Ltd . Now ans the question below;

Who are the users of the accounting information of this business. ?What are the different types of inventories reported by the assigned company in its annual report? Do you think the valuation of inventory requires subjective judgements? Why or why not? (3 marks) What are the different administrative expenses and selling, marketing and Distribution expenses reported by the assigned company in its annual report? How much has it increased or decreased from last year? What is the main reason for this increase or decrease? (4 marks) What are the different components of the payment/perquisites to Managers and Directors. Other Information:

FRAN AGRICULTURAL MARKETING CO LTD ETT P R A N BOARD MEMBERS Chairman Managing Director Director Director Independent Director SENIOR MANAGEMENT Chief Financial Officer Director Marketing Company Secretary Mr Ahsan Khan Chowdhury Mr. Md. Eleash Mridha Mrs. Uzma Chowdhury Mrs. Sabiha Amjad Md. Abdus Salam, FCA QUALITY POLICY Programme for Rural Advancement Nationally Mr. Mohammad Yeamin Mr. Chowdhury Kamruzzaman Advocate Kazi Abdur Rahman FACTORY Gharashal Palash Narsingdi IT IS THE POLICY OF AGRICULTURAL MARKETING CO LTD TO MARKET PRODUCTS OF CONSISTENT QUALITY AT HOME & ABROAD AS PER WORLD STANDARDS PRODUCED HYGIENICALLY IN ACCORDANCE WITH GOOD MANUFACTURING PRACTICES IN STATE-OF-THE-ART PLANTS & PROCESSES, PACKED IN APROPRIATE PACKAGING AND REMAIN COMMITTED TO THESE OBJECTIVES AT ALL TIMES We in Bangladesh are blessed with a climate ideally suited to agriculture, specially fruits and vegetables-rich in taste and flavour, sweet, mellow and juicy REGISTERED OFFICE PRAN CENTRE Ga-105/1, Middle Badda, Dhaka-1212 Ph:BI-02-222281792 Fax B6 02-B637484 Web: www.amcipran.com AUDITORS ACNABIN Chartered Accountants BDBL Bhaban (Level-13 & 14) 12 Kawran Bazar, CIA Dhaka-1215, Bangladesh Our deltaic plains are among the most fertile in the world created and drained by the mighty rivers-the Padma, the Jamuna & the Meghna. There is plenty of water. LEGAL ADVISERS The Legal Empiricism Tropicana Tower, Suite No. A-10 10th Floor, 45 Topkhana Road Dhaka-1000. Bangladesh And farming is a way of life to our people. AMCL HAVE ADOPTED ISO-9001 AS THE MODEL FOR THEIR QUALITY MANAGEMENT SYSTEM. ACCORDINGLY A DOCUMENTED SYSTEM SYSTEM OF PROCEDURES AND INSTRUCTIONS HAVE BEEN ESTABLISHED THROUGHOUT THE ORGANISATION DEFINING BUSINESS PROCESSES, RESPONSIBILITIES AND AUTHORITIES Our comparative advantage as an economy lies in agriculture. We believe the way to economic prosperity is through agri and agro-business PRAN is in testimony to our convictions. It stands for: "Programme for Rural Advancement Nationally", or in Bangla " BANKERS & The Hong Kong and Shanghai Banking Corporation Ltd (HSBC) Margement Office, Level 4 Shanta Western Tower 186 Bir Uttam Mir Shawkat Al Road Tejgaon A Dhaka-1208 b. Commercial Bank of Caylon PLC Corporate Brance, Hadi Tower, NWK) 1. R# 50. Kemal Ataturk Avenue, Gulshan 2 Dhaka-1217 Bangladesh Krishi Bank Local Principal Office 83-85 Motijheel CIA, Dhaka-1000 Citibank NA 109. Gulshan Avenue, Gulshan Dhaka-1212 State Bank of India Uday Tower, 57-57/A Guhan Gulshan, Dhaka-1212 PRAN is the largest grower and processor of fruits and vegetables in the country 9. Bank Asia Ltd Scolis Branch. 117/1 Rangs Bh Level-1, Old Airport Road, Toge De MANAGEMENT IS COMMITTED TO PROVIDING THE RESOURCES AND CREATING AN ENVIRONMENT IN WHICH EACH EMPLOYEE CAN CONTRIBUTE HIS/HER SKILL, TALENT AND IDEAS IN A NEVER-ENDING PROCESS OF IMPROVEMENT AND INNOVATION IN ALL ASPECTS OF BUSINESS Our contract growers cultivate the choicest fruits and vegetables which are processed in our modern and hygienic factories to highest quality standards. h. IFIC Bank Ltd Ghoshal Narsingdi d. Standard Chartered Bank SC House 07. Gulshan Avenus Culshan 3 30.06.2020 Taka 30.06.2019 Taka 30.06.2020 Taka 5. 6.3 Property, plant and equipment of the Company Al cost evaluation Opening Balance Ade Motion during the year 1,146.408.901 1.146.400,001 212,000 1.146,620,901 Finished goods Opening balance Adet Cost of goods manufactured during the year Lass: Cost of goods sok during the year Accounts receivable 27,854,554 2.135060.875 2.183.915.429 2,147,164 973 16,750 456 1,146.408.901 ( B) Accumulated depreciation Opening Balance Add Carped curing eyes 7. 820 050 821 53,365.763 873,416,584 754 017699 65,033,122 820060.821 2. Inventories See Noted to the financial statements Key sudit matters How the matters were addressed in our audit The Company had invertories of Tk. 586.9 ron Wo assess the acpropaloness of maragement's 2:30 June 2020, which is 41.99% of total assets. assumplos appled in calculating the value of the The carrying amount of inventores shown in Inventory by accounts are held in factory wirehouse and across Evaluaing the design and implementaton of key multiple prod. Ines inventory controls operating across the Company including those at a sample of disbution centers Inventories are carried at the lower of cost and he and warehouses realizable value. As a result, there may be a risk Atending inventory counts and recording the that inventory being included in the financat count rests of the mentory listings to test the completeness of data statements at the inaccurate value due to miscalculation of cost of the fact that cost has been have been recorded a proprialny Vertying a sample of inventory items that costs used though not realizace value is lower than comparing the net realizate value obtained cost. For that reason, we consider this matter as a through a detailed review of sales subsequent to the key sudt point. yearend at the cost price of a sample of invertories Checking that inventory at the end of the period was recorded at lower of cost and realizable value by losing a sample of inventory toms, C) Written down value (AB) 273 204,316 326,358,000 Schedule of Property, plant and Equipment is given in Annexure -A MIS. Golem Mostara & Associates elued the lord factory building machinery & equiement and hides of the Company as of 10 Doomber 1906 51. Right of us assets (A Cost Valuation Opening Balance Ad Addition during the year 8.524.04 8.594.044 (8Accumulated depreciation Opening Balance Adi Charged during the year 1420 14 1420.674 IC Written down value (A-B) 7,103 370 AMCL has aled FRS 18 Leases for the first time wth the date of initial application of 1 July 2019. 6. Inventories Raw materials Note: 6.11 563.222437 541 300415 Worces Note: 6.2 15.904248 17.14249 Finished goods (Note: 6.31 16.750456 27.854 554 6.1 595,887 139 536 269.218 Raw materials Opening balance 119,034049 Add: Addition during the year 2.641.267,831 2,700,301,680 Less: Adjusted during the year : 2.618.712.958 141,588.722 Schedule of Accounts Receivables ghen in Annexure - B. 1. Debt considered good in respect of which the company is fully secured Accounts recebebles have been stated at their nominal value. Accounts receivables are accrued course of business, Accounts receivable of Tk. 119.034,049 is considered good, IL Debt considered good for which the company hold no security Recenables are unsecured but considered good, 1. Debt due by directors or other officers of the company There is no such deblors due by or to directors or other offers of the Company, IV. Debt considered doubtful or bad Management considered the debts are collectable and thus no provision had been made for any doubt V. The maximum amount due by directors or other officers of the company There are no such debt due in this respect as at 30 June 2020. The aging of Accounts Receivable as at the statement of financial position date was: Less than 05 months 141,588.722 More than 06 months but less than 12 months More than 12 months 141,588.722 & Advance, deposits and prepayment Opening dance Adi Purchase during the year We were sorsfied that the nventory recognition and measurement policies have been applied appropriately. Based on the work performed we conduded that inventores have been recorded appropriately 3. Property plant & equipment See Note #5 to the financial statements Key audit matters How the matters were addressed in our audit At year and the company had Property plant & We have tested the design and cperating cupment of Tk 2732 milion equivalent to efectiveness of key control over property plant and 19.23% of the Company's total assets, which is equipment. Our audit procedures included, among significantly material to the financial statements. Others, considering the income risk of the assets. Property, plant and equipment induce the Company's long term assets which flow economc value and impairment risk of property art and Followings are our audit rooidures on the carrying benefits to the entity more than one year Property cument: dant and equement are stated at cost or revalued Reviewing the bass of recognition, mea.rement amount, any less accumulated depreciation in and valuation of assets compliance with Intematical Accounting Stardard Otserving the proced.res of assels acquisition (148-16 Property Part and Equipment depreciation and disposal Checking ownership of the major assets Apparendy, the carrying value of property, plant and acf Perfomng shysical asse verification during our and, and scuipment represents significant portion of the We critically evaluated the Company's assumptions Company's wet which is a function of in relation to recoverable amounts of the major depreciation charges & marment that involved property plant and equipment to enly there is ssimation. Therefore, it has been considered as a ay requirement of recognition of impaimeni. significant area auditor's udgment and recures special attention. There is a risk that the Our lesing did not identity any issues with regard to carrying value of property, plant and ecuipment and mpairment charges may not have been any indicators that would tracer main 541.300.415 5,845 210880 2,382 511 275 1,819.278.838 563.232437 519,564.737 1937 573,128 2,507 237.865 1,965,507 450 541,300,415 Adiance Deposits Prepayment Note 1) Note 2) IN & 3) Less Consumed during the year 294 456,17 28,683.805 1.325,681 1 324,464,662 . Raw materials consist of the following: Packing staff Store & sports Others ran materials 6.2 Work In process Opening balance Add: Material used during the year Factory Cemead Note: 24.1) 204,140 280 7.605,197 351 488 971 563.232 437 284 407 872 22,326.902 234,585 641 541,300,415 a) Al the adences & deposits are considered good and recoverable, and b) There is no amount due from directors of the company against advances. 81 Advance (Nole: 8.1.11 17,114 249 1,819,278.838 315,572034 2.151.565.121 2,136,080 875 15,904 246 17.481 358 1,965,597.450 314 480 591 2,297 899,399 2,220,785 150 17,114 249 Achance against income tai Athenots against import LC Adence against VAT Advence against SD Achance to employees against purchase 207,979,172 28,938,971 53,914 446 29,839 3,504,743 294, 455,176 Less Transferred to cost of good manufactured during the year FIVE YEAR FINANCIAL STATISTICS Blo DIRECTORS REPORT PRAN TO THE SHAREHOLDERS For the year ended 30 June 2020 COMPANY PRODUCTS Agricultural Marketing Co. Limited produces consumable products usng the agro-commodity and various WELCOMING SHAREHOLDERS beverages. It includes a comprehensive range of raw and finished goods under the classification of agro and agricultural products. The company produce different types and brands of Juice and Drinks, Mineral The Board of Directors of Agricultural Marketing Co. Limited (AMCL) welcomes all of you to the 35th Annual Water Soft Drinks, le Pop Mango Basics and drinks are battled in Taimseck Glass Botti. Per General Meeting of the company. It is our utmeest leasure to submit before you the glimpse of operational Bottle, Can Bctie. AMCL IS NOW producng two categories of drinks. One is Favored Drinks and anothers activities, audited financial statements with auditor's report and the compliance report of the compliance Soft Drinks auditor of the company for the year ended on 30 June 2020 for your consideration, approval and adoption Company's current business situation has been elaborated and compared considering prevailing economic HUMAN RESOURCE MANAGEMENT condition of the country. Human Resources Management playing a vital role to sustainable development of an organization. Each BUSINESS OPERATION REVIEW new member joining Agricultural Merweting Company Ltd. AMCLis to become a participant in developine a sustainable qually culture which implies a commitment to the organization and a sense to continuous Agricultural Marketing Co. Ltd is dedicated to produce and market safe food for the all classes of people of improvement leaving no room for complacency. The Agricultural Marketing Company Ltd. is committed to the country. To make the consumable itens cheap for the consumer and to keep the cost within reasonable Management System is very scientifichere which has ensured that talented people take the lead and being limit, management is concern to modify the recipe complying the regulations of the country. In maintain the the organization onward to compete in the gobel market successfully sustainable growth, expense allocation been made according to the demand of the food market Training is another secret behind the high-performing Human Resources of ANCL. We conduct Training Juice and drinks production capacity was 309,212.000 Pcs/Pit in the previous year and this year capacity Nad Asment and organiza Ned Based Training for each and vary individ.al seam members of ANC.. kept static to utilize the existing facility. The management ensured optimization of company's equipment This year we have conducted training on Career Planning Employee Victivation Team Building Gnevance usage and tried to maximus actual production in the reporting year. To operate those production Handing Fire and Electrical Safety, Chemical Safety, Workplace Safety Computer Literacy, Personal equipment, human resources of the company has utilized the equipment, services of human resources to Development etc. We have also conducted customized training for the electricians plumbers, welders, their full potential lathe man, drugs in different phases Financial cost for the reporting year was 12.97 or whereas it was 15.40 or in the last year. But COMPLIANCE MANAGEMENT administrative expense, selling experse and distribution cxpense were near about previous year expense and marketing expenses is decreased from the previous year respectively to continue uninterrupted complante maragement is a critical component of the internal control process for any business and a business operation. Considering the entire unfavorable factors for manufacturing and marketing of food prerequisite for assessing compliance with corporate performance standards in Aricultural Marketing Compeny Limited ( ACL) we try our level best to keep up with the growing industry business, Net Revenue decreased from Tk. 282 crore to Th. 264 crore which is 6,40 percent lower than the and its refoming compliance standards by prioritizing our assessment and evenation system in buyer's last years proceeds compliance, port compliance and social compliance. And therefore at those fundamental points we have to cut off an amount of foreseeable profit. We interpret tomplante as incorporating standards that The percentage of production capacity for the products of the company is listed below. conform to specific requirements Name of items Production Capachy PP Production 2019 in Pcs Fat Percentage DIRECTORS RESPONSIBIUTIES FOR FINANCIAL STATEMENTS Juice Drinks & others 309.212.000 99.414.066 32.15% Mineral Water 53 890.000 11.985 306 22.27% According to condition 15of OJG 2018. The directors of the company are responsible for preparation Soft Drinks 16.450.000 7.011,097 49.11% and true and fair presentation of financial statements. This responsibility includes designing, implementine and maintaining intemal control mlevant to the preparation and fair presentation of financial statements Le Poe, Mango Bar and Others 24.720.000 34,482,154 58.58% those are free from material misstatement whether due to fraud or error selecting and applying appropriate sccounting policies in that capacity, the Directors confirm to the best of their owledee that Particulars Authorized Capital Paid up Capital Share Premium Turnover Gross) TurnoverNet Gross Margin Profit Before Tax Surplus Alter Tax Holiday Reserve Tang ble Fixed Assets (Net) Cumulative Reserve & Surplus Shareholders' Equity Dividend Proposed Return on Puidup Capital Book Value Per Share Tk. Earning Per Share Tk.) Market value Per Share (TK) Price Earning Ratio (Times) Value in'000 Taka 2015-16 2016-17 2017-18 2018-19 2019-20 500.000 500,000 500.000 500.000 500.000 30.000 80.000 80,000 80.000 80.000 40.000 40.000 40.000 40,000 40,000 2.305.711 2,566.826 2,748,717 3.149,049 2,976.941 2.091.554 2,380,335 2,538.528 2,821.830 2,641.268 406,214 454,804 487,016 541,503 494 103 68.474 72,681 70.456 77,568 68,829 52.998 54,937 55,548 58,418 45,579 544,637 474,194 392,391 326,358 273,204 424.449 453,787 493, 109 515.950 535,948 544.449 573,787 603,109 635,950 655,948 32% % 32% 32% 32% 32% 66.25 88.77 69.44 7.30 56.97 68.06 7272 75.39 79.49 81.99 6.62 6.87 6.94 730 5.70 195.70 216.50 226.65 241.80 189.75 29.54 31.51 32.66 33.11 33.30 Number of Shareholders (As on 30th June) General Public ICB Investors Account Financial institutions Sponsors 4,547 28 17 05 4.552 17 25 03 4,278 4.367 10 15 30 47 03 03 4,090 02 38 03 Statement of Financial Position as at 30 June 2020 Statement of Profit or Loss & Other Comprehensive income for the year ended 30 June 2020 Agricultural Marketing Company Limited Siatement of Profit or Loss and Other Comprehensive Income For the year ended 30 June 2020 30.06.2019 Taka 2014-2020 Noles 326,358,080 326 358,080 2018-2019 Taka Agricultural Marketing Company Limited Statement of Financial Position As at 30 June 2020 30.06.2020 Noles Tala ASSETS Non-Current Assets 280,307 686 Property, plant and equipment 5 273.204,316 Right of use assets 5a 7.100.370 Current Assets 1,140,122,154 hventores 6 595887139 Accounts receivable 7 141588.722 Adrance, depois & prepayment 3 324 464,062 Cash and bank balances 9 78,181 631 TOTAL ASSETS 1,420 429,840 EQUITY AND UABILITIES Shareholders' Equity 655,948 120 Share Capital 10 BO 000,000 Share premium 11 40.000.000 Revaluation surplus 12 14807,533 Retained earnings 13 521.140,587 Non-Current Liabilities 16,420.366 Deferred tax labity 14 10.769,414 Long term sans net of current portion 15 Lease obligation net of current portion 15a 5.650,942 Current Liabilities 748,061 363 Current portion of long term kans 15.3 Current porton Wease collation 150 1.486,664 Short term credit facilities 16 652.629,160 Accounts payable 17 5.074,585 Provision for expenses 18 35 406,867 Security deposit of distributors 19 27.067,848 home tax payat 20 15,342,884 Workers' profit participation und (WPPF) & WF payable 21 4,335,245 Other lates 22 6.719,110 TOTAL LIABILITIES 764 481,719 TOTAL EQUITY AND LIABILITIES 1420,429.840 Net Assets Value (NAV) Per Share with revaluation 34 81.99 Net Assets Value (NAV) Per Share without revaluation 34 80.14 The annexed roles from 1 to 44 form an integral part of these Financial Statements. Balance as at 30 June 2019 Cash Dividend for the year 2017-2018 Balance as at 01 July 2018 Net Profit after income tax for the year Depreciation or deleted tex against revaluation of assets other than land and land development (Note: 14) Balance as at 30 June 2020 Cash Dividend for the year 2018-2019 assets other than lend and fand development inte Balance as at 01 July 2019 Net Profit after income tax for you Adiustment for deferred tax against revaluation of The annexed notes from 1 to 44 form an integral part of these Financial Statements. for the year Particulars 80,000,000 40,000,000 14,865,209 501,084,800 635,950,009 80,000,000 40,000,000 14,865,209 Premium Surplus 80,000,000 40,000,000 14,807,533 521,140,587 655,948, 120 14,932,150 22314 Revaluatior +9225 58,418,206 89,256 468,177,339 25,600,000) Earnings *. 001 (25,600,000)(25,600,000) 902.004,800 635.950.009 58,418,206 22,314 603, 109,489 (Amount in Taka) 45,578,000 19.225 000 0000 000 000 08 Share Capital Share Revenue 23 2641,287 631 2821632 393 1,075,439,943 586260218 Les Cost of goods salt 24 2,147,164978 2.280.327.820 119.034,049 Gross Profit 494,102.658 541,502,773 270 314,500 99 872,173 Less Operating Epurses 286,148,195 310,469,99 1,401.798,023 Administrative perses 25 65.769 218 67,435 306 Marketing courses 26 93.222 345155257 635,950,000 80.000.000 Sangereses 21 44.782.891 43798,058 40.000.000 Distribution expenses 28 $2864323 $5,082,750 14.666,209 Gross Operating Proft for the year 197,963,860 231,081 284 501.064.800 Less Finance dipenses 29 129,794348 154086378 34,234,116 Net Operating Profit for the year 68159512 76.947.996 13.067,398 Add: Non operating income 21236718 Other income 30 4110476 449847 Proft before cortbunlar to Workers' Profit Participation Fund 72,289.948 81,44 353 731,553,810 25762,183 Less Provision for contrbution to WPPFSWF 341426 3.878,398 Profit before income tax 68,62522 77,567,955 597 638,807 Les hoteles 23.249.638 19.149 749 3880.556 Current la 31 25.518394 19.392 631 29.994,139 Defined tax 14 27.002,818 12268.758) 1242 882) 36.179,471 Net profit after income tax 45.578 886 58.418.2016 4286398 Other compreensive income 6.809,496 Total comprehensive income 45574896 58418.276 765,848,014 1401.798 023 Eaming Per Share (EPS) 32 5.70 7.30 79.49 77.64 The arreved notes from 10.44 from an integral part of these Financial Statements. for the year ended 30 June 2020 Statement of Changes In Equity ar (5768) Retained Total Equny (000 009 92) Statement of Cash Flows for the year ended 30 June 2020 30 Tai 14 med dry Tau Tayatta dienne 1990 77.347,12 21 Agricultural Marketing Company Limited Statement of Cash Flows For the year ended 30 June 2020 und Lasal werd 8.30 SUNN Revolution Notes 2019-2020 Taka 2018-2019 Taka R SAL wand 59, right A Cash flows from operating activities Receipt from customers Payment to suppliers Payment for general administrave expenses Income tax payment Net cash flow from operating activities 2 4.14 4.140.00 2.624270.803 (1,840.018,830) (594,152,662) (66 921.600) 124,179,811 3,160.044.522 (1,986,885,921 (871,910,548) (29.238.785) 281.011.668 LUCE Lesoto F AT, 2. A.ID BEST 35 5 1212.000) (212.000) ( 29% B. Cash flows from investing activities Acquisition of property, Blant & cuipment Net cash used in investing activities C. Cash flows from financing activities Repayment of loro term loan Receipt of short tomban Receipt of liabilities for other nance Interest payment Repayment of lease ability Princide) Dividend payment Net cash used in financing activities 70.000 4591 2010-2.20 2016-2018 23. Reveni Toh TO DWT & 21 ARO +R Ft.51 Export 2221 101 PRO 2.641,267,631 2.621.60.300 21.1 Domestic sales et of VAT 850 Don WATAN 2 CREAT ZTT 22.11 2017 Sudo 4101 OC 1/11 212 Export 20.061 T41 203, 2 140215 11.PIT MATE During your post Th 19128216m 5 +062776. T . 7112 FOO US $827557 for the endetare 2017 24.Cowulaude Export Local 2012-20-2013 Taka Taka www 17 314672 541,300411 SIA Suchend mig year 790,00 ID002.15 1141, 210,450,172,12 Chang stock 4.21178.317.851) Where court 7744173 1041 1.610, www css 1 GB Op work in 4,195,00 12:51 17.114 1741 www The 24.11 119.93.11 175.1732 SIT.COM al Cheng work in 23163714 (17.11 19 115 21 Cost from 913.002.733 92,202.738 1223.2.1872134.238006616 od ned 7,317.42 27. ATA DO 2051749 Contowwe 27 999 206 211 P10.17 Check for 2017.7200 19 20 116 24.1 Pustory over 912.422.151 1.234.232.019 2.147.164, 373 2.200,327, avui Str. A. W 51721 16:436441 134,110,347 Gang Uning 132.100,00 EAM AM 15,14973 HTC Trwel AUT 1.391312 2,284, 22,23 Prima Siwy www w 1.4.06 1144 1.727,13 Apie 8997 1 1,366116 2.300 2.231,90 Deportion 39.071 21.124 100 61.500 3307 - Ata 3918ta 547.418 52025 31 BROS Post & 630294 660 1.510823 1.42735 Power 99.227202 66.806362 50.98 Testing Foo 216911 308.02 $10.963 460,50 Mk3 2013 120.86 722.200 361.7 2012 U BOL 5573 79040 135411 1606 Pro 1.343.00 2.104 1.568.00 Corage & Other Charges 6.21.133 106912 10,584, 14.3.2013 123 21 $18524 1414 42 to wise guard and value of raw material Particles Unit 30 June 2000 30 June 2012 out in total Quantity Ansuntin Taka Darby Aerount in Put, isalatta , ka 22421 1117.301 2410 Crush UE 30231 2.368 H & But, Chama 16.000 ) 692 24 0.446 416116 P&Oder * 1827233 198430,33 1.431.746 140.606.54 I UNE 28.45420 141.358,822 14 66 6728 4.04.09 ...4804 22.012 41.300:41 (46.998.901 ) 54.990.360 65.000 (126,707 852) (1.388,439) (25,690,386) (145.728.2251 Applicatie E Luca word Rewwww Deterre 2000 Debne nebo a Alan Del Tokree with Delvedere ROU not DM 2000 T20 Die SAP 200 Ls tant F Dabei Debe Der Text 302 301 Deferred as the parede Laual Den before 2018 Der Ter home for a paranded 30 June 2120 Tatal Datud Tax Income Beatr Land and taste (66,274.427 1,120,035 194,000 (150.477.2011 41 1. 122001 CH 15. TAG 2704 20.112 1,233 127 192,570) (242.690,163) D. Net (decrease increase in cash and bank balances (A+B+C) E. Uhreatsed foreign exchange gain 30 F. Cash and bark barces at beginning of the year 9 G. Cash and bank balances at the end of the year (21,760,414) 119 872 99.822.173 78,181,631 7301.10 16.14 T 38,381505 725,122 80.715,516 99.822.173 445001 2011 Net operating cash flow per share (NOCFPS) 15.52 35,13 , The arrexed notes from 1 to 44 form en integral part of these Financial Statements. Deered To A013 Datarred Tex experiw far the war essed 2000 Neuests Detered The Lady D A Dared The 2018 Debe Teenyaran Toal ACL Serienheter of 2011 . 18. 15.02 199,2253 30.06.2018 Tasa Tx . Carrying amount 000990 Taxable temporary diterence 90.670 54 72.2004 10.401.600 Export whe Local Property and und & Indommer Aala Ravintson a trend andere de Rather than in 1. 1 14.03639 14.000 RA T4,818,47 Apple Hot 3. 2017-2020 2016-2019 Take Take 32. Earning Per Share Net Prome to the ordinary() 45.575.00 58.418.20 Weighted a number of RO Daxi Caming Per Share (ES) 7.30 The Sale bon declined by Th.2.2 due to demo effect from Cavi-1. The most impact was in as for the master than to that provision of the prior y Antyw 2016-19 8 20TL 2017 Income tax sa of Income Tax Ordin 1984 og lok. 101.76,610 to have been changed 3. Net operating cash flow pershor (NOCEPSI . Nechte www 194.179111 20101,65 Wewed average number of shares 3.000.000 8.000 UDU Nur Operating Cash Flow Pershore (NOCFP8) 35.13 Net cash flow from expering live by Th 162.600.674 cm. and increase per previous years come tax pays during the year. * Net ovet Value (NAV) Per Share ) Net Vn NAV) with even wups 655 BMS viation 84 607 530) (14.05.2003 VINA) Naturbered with min) 841.140,587 621.064 Number of cardiary has tundi) ARAN 0.000.000 Not A VINAV) Per Share with valuation surple (AC) 01.03 19.45 Net Asal VINAV Per Share without B-C) 0.14 27 Motos e has been credty Tk, 2006, 477 due to incrementotut value by Th. 18.581.817 man in totality T. 13,304.300 with good manager of the Company 38. Reconciliation of cash flows from operating activities Net Profit Before Tax 68,828.572 T7.587.1955 Adjunts for Depreciation 670 0.033.122 Elle rote chatons on and in 199.872 (725, 1321 Repayento scatty 1.3.430 26,742 con 150,477 201 Payment of Income Tax (46.384.0811 (94.11.00 changes in Working Capital: Inventor (9.617,211 (21 260.000) Acce 22584.873 Adrance depaat & grep 160,10 an,100 Accounts paye 8,194.030 Ter 200 Provision for men 5.411.7 19.33 Workers' propraction Fund (WPPF & WF powe 47 (276, 100) Not a flow from operating activities 124.179.811 281.011. Rektion med and development Reinet Cedex YRIR Der TaxLody as 201 Loc Deaned Tax Low June 2010 Ron rand & band Defend Texty June 2010 Retorn for others 2.307.712 10.11.12 445001 T. 1. antal 2.307.712 4.2. (1,7,8 10.140.00 2.422.400 MB) aput www... Dedy Duaned Tax Lau 30 June 2010 Deferred Tax Income for the year ended 30 June 2019) Leul Cys20 Dewa 20 Deterd Tax income for the year anded 30 June 2010 Total erred tax income Meratus for and stand development De 32 G Quid Taxa Deferred Tax experime for the year andes June 2013 NI Revaluation for other Gen 2018 de 2018 Dead Tax income for the yearded on 2018 Total Deferred Tax income 1a-) 45001 445.000 2 100.20 1223101 1222319 1 lia. 2016 12 Agricultural Marketing Company Limited Schedule of Property. Plant and Equipment As at 30 June 2020 Coet Deprecision Category of written Down walance as at Addition during alca Charged during Malance as al Value em 30 2. July 2013 the year June 232 rata July 2015 the year June 2010 June - Frtaitta itals L & LERE and common 20.887.706 20.8670 20. POS 154.104.02 154.104.00 10% TOT. 127.300 7,671 111.224.080 42.27.641 My 2021 IN 21 MO 4.714.67 TIPS P&P ( 2.301.217 201212 2.2014 2.282, 168827 T & AC 272.41 272.417 215 20.0 .857 T1042.00 71 042.00 20 ABS 1.05 429911 6.782.044 locum 2.531.430 212.000 ! 2743.430 1 15% 2.2015 45,437 416417 2.326.91 Plate Container 10.302.050 032.058 20 10.07.10 51.0 10 10.1420 2440 Oheid 22 22.DAC 22.217.000 204 GAZDAS LAKI 22.02.220 Bub Total 1.120.000 212,000 1.120.297.aa 099,195.214 10.4.06 53.200,062 062.404,070 257.0-12.946 Rawalud Ant Land & Land Down 14.450,380 54.33 14.036 303 Factory Duding 5.02.135 . 5.02.125 50% 4.320 49,476 4.575,00 Machinery Art 6, 127,036 445 205 0127.000 20 SSA2107 , aadi 020117 107.721 225 wa 22, 90 3230 1961 Sub Total 2017, 12,7 10. La TUM. 18.01.11 Total of 30 June 2020 1.14R 4Rs. 212.17 LALAR HARI 20.GAN 28 STS 7341 771.214 315 Todas 11464085 June 2013 0.146.400.000 754.017. 0.0332 620.000.00 32.383.000 Riga RISMO www30 June 0.524,044 52,014 1.420,674 1.420,674 7,109.370 Allocation of depreciation Amount in Taka Freehold Assets 3030 June 2012 30 Cast of Good 51.AZ 5,756 Administrative G 707 and con dal 1.11 TA B.228.2, 122 Right of Assets Admite 385.100 saling und hatribution Expert . Subtotal 1.420.87 Grand To CODPXF Ma.com Word and trying many mandate C10 December 1968 Agricultural Marketing Company Limited Schedule of Iroperty. Plant und Equipment As of June apo Depresion Wirten Down Category of ance additionalaca 120 Rate lance as a Charges dunne July 2019 the year June 2020 Balanca as at 30 Value at 30 RM19July 2010 the year June 2010 | Press Land & Lund Drogen 20.867.73 20.857.706 20.887.703 ructory Building 154.104.021 154.104.021 10 % 197.27 300 4.697.671 1 11.024.03 42.21904 My & 830.24.218 0.248.218 E 20% 240 48.714 425 49.38.521 Furrure & 185.657.6 2.351211 2.31 211 2204352 25.025 Toob & Accessori 272.417 272 417 20 270.471 300 270.000 1.567 wwhides 1.042.000 112.000 2960300 1.695.36 6,702, 4200.161 CA Carmen 2.12 219.000 2inG $ 2.742 4139 15 22 16 201 416477 10 Lars 1019 1 7 11 M. 200217 38917 2013 HRT a The 9 X 11 Sub Total 1.1 OKA 712 1.17 ZRT 0122 214 AX 14 7W7.02. b. Le & Lere valued aseta 14.8.11 14 3.383 14.5 ructory Budg 5.004.13 5.024 125 10% 4.92954 49.478 4.575.543 449 29 Neschery & C. 0.127.630 0.127030 20% 5.900.1 26.030 8.02.17 107.721 Wider 225.53 330107 485 HO Bub Tot 20.12.479 279 10.256 G 7621 2. 10.0320D 15,291, Testamonlama 22 1,168 213.00 114 1101 21 SEE TEX H7X Toldal 2018 11414.901 AM - 1.14.400.000 754.0IT 622 O 033.122 020.05.0.621 126.00 Higit Right RUTH NAS 200 1.92 1.74 21, Allocation of depreciation Me 1 Freehold Ant | || | 30.hr 999 hin 2013 de 2018 , 2. 1 HR B. Am E TOY.575 8.14 Salg und dabblin Express 1. LORS 1.210. Subtotal 525.763 OXF2 Right of una AARNA ... 1 I Babel 14224 Grand Total 3470607 wwa. Gem Amanda bingwhethany A 10 D. 201030 PRAN AGRICULTURAL MARKETING CO LTD P R A N QUALITY POLICY Programme for Rural Advancement Nationally IT IS THE POLICY OF AGRICULTURAL MARKETING CO LTD TO MARKET PRODUCTS OF CONSISTENT QUALITY AT HOME & ABROAD AS PER WORLD STANDARDS PRODUCED HYGIENICALLY IN ACCORDANCE WITH GOOD MANUFACTURING PRACTICES IN STATE OF - THE - ART PLANTS & PROCESSES, PACKED IN APROPRIATE PACKAGING AND REMAIN COMMITTED TO THESE OBJECTIVES AT ALL TIMES. We in Bangladesh are blessed with a climate ideally suited to agriculture, specially fruits and vegetables-rich in taste and flavour, sweet, mellow and juicy. Our deltaic plains are among the most fertile in the world created and drained by the mighty rivers-the Padma, the Jamuna & the Meghna. There is plenty of water. And farming is a way of life to our people. AMCL HAVE ADOPTED ISO-9001 AS THE MODEL FOR THEIR QUALITY MANAGEMENT SYSTEM ACCORDINGLY A DOCUMENTED SYSTEM OF PROCEDURES AND INSTRUCTIONS HAVE BEEN ESTABLISHED THROUGHOUT THE ORGANISATION DEFINING BUSINESS PROCESSES, RESPONSIBILITIES AND AUTHORITIES. Our comparative advantage as an economy lies in agriculture. We believe the way to economic prosperity is through agri and agro-business. PRAN is in testimony to our convictions. It stands for: "Programme for Rural Advancement Nationally", or in Bangla MANAGEMENT IS COMMITTED TO PROVIDING THE PRAN is the largest grower and processor of fruits and vegetables in the country. RESOURCES AND CREATING AN ENVIRONMENT IN WHICH EACH EMPLOYEE CAN CONTRIBUTE HIS/HER SKILL, Our contract growers cultivate the choicest fruits and vegetables which are TALENT AND IDEAS IN A NEVER - ENDING PROCESS OF processed in our modern and hygienic factories to highest quality standards. IMPROVEMENT AND INNOVATION IN ALL ASPECTS OF RIISINESS DIRECTORS' REPORT PRAN TO THE SHAREHOLDERS COMPANY PRODUCTS For the year ended 30 June 2020 Agricultural Marketing Co. Limited produces consumable products using the agro-commodity and various beverages. It includes a comprehensive range of raw and finished goods under the classification of agro WELCOMING SHAREHOLDERS and agricultural products. The company produces different types and brands of Juice and Drinks, Mineral Water, Soft Drinks, Ice Pop & Mango Bars. Juices and drinks are bottled in Tetra pack, Glass Bottle, Pet The Board of Directors of Agricultural Marketing Co. Limited (AMCL) welcomes all of you to the 35th Annual Bottle, Can Bottle. AMCL is now producing two categories of drinks. One is Flavored Drinks and another is General Meeting of the company. It is our utmost pleasure to submit before you the glimpse of operational Soft Drinks. activities, audited financial statements with auditor's report and the compliance report of the compliance auditor of the company for the year ended on 30 June 2020 for your consideration, approval and adoption. HUMAN RESOURCE MANAGEMENT Company's current business situation has been elaborated and compared considering prevailing economic condition of the country. Human Resources Management playing a vital role to sustainable development of an organization. Each new member joining Agricultural Marketing Company Ltd. (AMCL) is to become a participant in developing BUSINESS OPERATION REVIEW a sustainable quality culture which implies a commitment to the organization and a sense for continuous improvement leaving no room for complacency. The Agricultural Marketing Company Ltd. is committed to ensure a talent based, transparent, fair and equal employment opportunity in all of its sections. The Talent Agricultural Marketing Co. Ltd is dedicated to produce and market safe food for the all classes of people of Management System is very scientific here, which has ensured that talented people take the lead and bring the country. To make the consumable items cheap for the consumer and to keep the cost within reasonable the organization onward to compete in the global market successfully. limit, management is concern to modify the recipe complying the regulations of the country. In maintain the Sustainable growth, expense allocation been made according to the demand of the food market. Training is another secret behind the high-performing Human Resources of AMCL. We conduct Training Need Assessment and organize Need Based Training for each and every individual team members of AMCL. Juice and drinks production capacity was 309,212,000 Pcs/Pkt in the previous year and this year capacity This year we have conducted training on Career Planning Employee Motivation, Team Building, Grievance kept static to utilize the existing facility. The management ensured optimization of company's equipment Handling, Fire and Electrical Safety, Chemical Safety, Workplace Safety, Computer Literacy, Personal usage and tried to maximize actual production in the reporting year. To operate those production Development etc. We have also conducted customized training for the electricians, plumbers, welders, equipment, human resources of the company has utilized the equipment, services of human resources to lathe men, drivers in different phases. their full potential. COMPLIANCE MANAGEMENT Financial cost for the reporting year was 12.97 cr whereas it was 15.40 cr in the last year. But Compliance management is a critical component of the internal control process for any business and a administrative expense, selling expense and distribution expense were near about previous year expense prerequisite for assessing compliance with corporate performance standards. and marketing expenses is decreased from the previous year respectively to continue uninterrupted In Agricultural Marketing Company Limited (AMCL) we try our level best to keep up with the growing industry business operation. Considering the entire unfavorable factors for manufacturing and marketing of food and its reforming compliance standards by prioritizing our assessment and evaluation system in buyer's business, Net Revenue decreased from Tk. 282 crore to Tk. 264 crore which is 6.40 percent lower than the compliance, export compliance and social compliance. And therefore at those fundamental points we have last year's proceeds. to cut off an amount of foreseeable profit. We interpret compliance as incorporating standards that conform to specific requirements. The percentage of production capacity for the products of the company is listed below: DIRECTORS' RESPONSIBILITIES FOR FINANCIAL STATEMENTS Name of Items Production Capacity (In Pcs/Pkt.) Production 2019 (In Pcs/Pkt.) Percentage Juice, Drinks & others 309,212,000 99,414,066 32.15% According to condition 1(5)(xi)of CGG 2018, the directors of the company are responsible for preparation Mineral Water 53,830,000 11.985,305 22.27% and true and fair presentation of financial statements. This responsibility includes designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements Soft Drinks 16,650.000 7,011,097 42.11% those are free from material misstatement whether due to fraud or error, selecting and applying appropriate Ice Pop, Mango Bar and Others 24,720.000 14,482,154 58.58% accounting policies. In that capacity, the Directors confirm to the best of their knowledge that- FIVE YEAR FINANCIAL STATISTICS Statement of Changes In Equity for the year ended 30 June 2020 Revaluation . - 19 Value in' 000 Taka (Amount in Particulars 2015-16 2016-17 2017-18 2018-19 2019-20 Share Retained Particulars Share Capital Total Equ Authorized Capital 500.000 500,000 500.000 500,000 500.000 Premium Surplus Earnings Paid up Capital 40,000,000 80,000 Balance as at 01 July 2019 80,000 80.000 501,084 800 635,950 80,000 14.865,209 80,000,000 80,000 Net Profit after income tax for the year 45,578,888 45,578 Share Premium 40,000 40.000 40,000 40.000 40,000 Depreciation on revalued asset 76,901) 78,901 Turnover (Gross) 2,305,711 2,566,826 2,748,717 3,149,049 2,976,941 Adjustment for deferred tax against revaluation of Turnover (Net) 19,225 2,091,554 2,380,335 2,538,528 2,821,830 2,641,268 assets other than land and land development (Note: 14) Gross Margin 406,214 454,804 487,016 541,503 494,103 Cash Dividend for the year 2018-2019 25,600,000) 25,600 ( Profit Before Tax 68,474 72,681 70.456 77.568 68.829 Balance as at 30 June 2020 80,000,000 40,000,000 14,807,533 521,140,587 655,948 Surplus After Tax Holiday Reserve 52.998 54,937 55.548 58,418 45,579 B0,000,000 474,194 Balance as at 01 July 2018 40,000,000 Tangible Fixed Assets (Net) 14,932,150 544,637 326,358 603,109 392,391 468,177,339 273,204 Net Profit after income tax for the year Cumulative Reserve & Surplus 58,418,206 58,418 424,449 453,787 483,109 515,950 535,948 Depreciation on revalued asset (89,255) 89,255 Shareholders' Equity 544,449 573,787 603.109 635,950 655,948 Adjustment for deferred tax against revaluation of Dividend Proposed % 32% 32% 32% 32% 32% 22,314 assets other than land and land development (Note: 14) Return on Paid up Capital 66.25 68.77 69.44 7.30 56.97 Cash Dividend for the year 2017-2018 25,600,000) (25,600 Book Value Per Share (Tk.) 68.06 71.72 75.39 79.49 81.99 Balance as at 30 June 2019 80,000,000 40,000,000 14,865,209 501,084,800 635,950 Earning Per Share (TK.) 6.62 6.87 6.94 7.30 5.70 Market Value Per Share (Tk.) 195.70 216.50 226.65 241.80 The annexed notes from 1 to 44 form an integral part of these Financial Statements. 189.75 Price Earning Ratio (Times) 29.54 31.51 32.66 33.11 33.30 Statement of Financial Position | as at 30 June 20 20 Number of Shareholders (As on 30th June) . 22 General Public ICB Investors Account Financial Institutions Sponsors 4,547 28 17 4,552 17 25 4,278 10 30 03 4,367 15 47 03 4.090 02 38 03 05 03 30.06.2019 Taka Statement of Profit or Loss & Other Comprehensive income for the year ended 30 June 2020 326,358,080 326,358,080 Agricultural Marketing Company Limited Statement of Profit or Loss and Other Comprehensive Income For the year ended 30 June 2020 1,075,439,943 586,269,218 119,034,049 270,314,503 99.822 173 1,401,798,023 2019-2020 Notes 2018-2019 Taka Revenue Less: Cost of goods sold Gross Profit 23 24 2,641,267,631 2,821,830,393 2.147,164,973 2.280,327,620 494,102,658 541,502,773 296,148,798 65,769,238 93,232,346 44.782.891 92,364,323 197,953,860 129,794,318 68,159,542 310,469,489 67,435,305 104,155,357 43,796,068 95,082.759 231,033,284 154,085,378 76,947,906 25 26 27 28 Agricultural Marketing Company Limited Statement of Financial Position As at 30 June 2020 Notes 30.06.2020 Taka ASSETS Non-Current Assets 280, 307,686 Property, plant and equipment 5 5 273,204,316 Right of use assets 5a 7,103,370 Current Assets 1,140,122,154 Hventories 6 595,887,139 Accounts receivable 7 141,588,722 Advance, deposits & prepayment & 8 324 464,662 Cash and bank balances 9 78,181,631 TOTAL ASSETS 1,420,429,840 EQUITY AND LIABILITIES Shareholders' Equity 655,948,120 Share capital 10 80,000,000 Share premium 11 40,000,000 Revaluation surplus 12 14,807,533 Retained earnings 13 521,140,587 Non-Current Liabilities 16,420,356 Deferred tax lability 14 10,769,414 Long term kans net of current portion 15 Lease obligation net of current portion 15a 5,650,942 Current Liabilities 748,061,363 Current portion of bong term loans 15.3 Current portion of lease obligation 15b 1,486,664 Short term credit facities 16 652,629,160 Accounts payable 17 5,074,585 Provision for expenses 18 35,405,867 Security deposit of distributors 19 27,067 848 Income tax payable 20 15,342,884 Workers' profit participation fund (WPPF) & WF payable 21 4335 245 Other labilities 22 6,719,110 TOTAL LIABILITIES 764,481,719 TOTAL EQUITY AND LIABILITIES 1,420,429,840 Net Assets Value (NAV) Per Share with revaluation 34 81.99 Net Assets Value (NAV) Per Share without revaluation 34 80.14 The annexed notes from 1 to 44 form an integral part of the tof these Financial Sta 635,950,009 80,000,000 40,000,000 14,865,209 501,084 800 34,294,116 13,057 398 21,236,718! 29 Less: Operating Expenses Administrative expenses Marketing expenses Selling expenses Distribution expenses Gross Operating Profit for the year Less: Finance expenses Net Operating Profit for the year Add: Non operating income Other income Profit before contribution to Workers' Profit Participation Fund Less: Provision for contribution to WPPF & WF Profit before income tax Less: Income tax expense Current tax Deferred tax Net profit after income tax Other comprehensive income Total comprehensive income 731,553.898 25,762,183 30 4,110,406 72,269,948 3,441,426 68,828,522 23,249,636 25,518,394 (2.268,758) 45,578,886 4,498,447 81,446,353 3,878,398 77,567,955 19, 149,749 19.392,631 (242,882) 58,418,206 aw 31 14 597,638,807 3,880,555 29,994,139 27,002,848 36,179,471 4,286,398 6,809,496 765,848,014 1,401,798,023 79.49 45.578.886 58,418,206 5.70 7.30 Earning Per Share (EPS) 32 The annexed notes from 1 to 44 form an integral part of these Financial Statements. . 77.64 Statement Statement of Cash Flows for the year ended 30 June 2020 2. Inventories See Note # 6 to the financial statements Key audit matters The Company had inventories of Tk. 595.9 million at 30 June 2020, which is 41.95% of total assets. The carrying amount of inventories shown in accounts are held in factory warehouse and across multiple product lines. Agricultural Marketing Company Limited Statement of Cash Flows For the year ended 30 June 2020 Notes 2019-2020 Taka 2018-2019 Taka A Cash flows from operating activities Receipt from customers Payment to suppliers Payment for general & administrative expenses Income tax payment Net cash flow from operating activities Inventories are carried at the lower of cost and net realizable value. As a result, there may be a risk that inventory being included in the financial statements at the inaccurate value due to miscalculation of cost or the fact that cost has been used although net realizable value is lower than cost. For that reason, we consider this matter as a key audit point. How the matters were addressed in our audit We assessed the appropriateness of management's assumptions applied in calculating the value of the inventory by Evaluating the design and implementation of key Inventory controls operating across the Company, including those at a sample of distribution centers and warehouses: Attending inventory counts and reconciling the count results of the inventory listings to test the completeness of data: Verifying a sample of Inventory items that costs have been recorded appropriately: Comparing the nel realizable value obtained through a detailed review of sales subsequent to the year-end with the cost price of a sample of inventories: . Checking that inventory at the end of the period was recorded at lower of cost and net realizable value by testing a sample of inventory items. We were satisfied that the inventory recognition and measurement policies have been applied appropriately. Based on the work performed. we concluded that inventories have been recorded appropriately. 2,624,270,803 (1.840,016,830) (594,152,662) ( (65,921,500) 124,179,811 3.169,044,922 (1,986,885,921) (871,910,548) ) (29,236.785) ) 281,011,668 35 B. Cash flows from investing activities Acquisition of property, plant & equipment Net cash used in investing activities 5 (212,000) (212,000) C. Cash flows from financing activities Repayment of long term loan Receipt of short term loan Receipt of liabilities for other finance Interest payment Repayment of lease lability (Principle) Dividend payment Net cash used in financing activities (46.998,901) 54.990,353 65,000 (126,707,852) (1,386,439) (25.690,386) (145,728,225) (66.274,427) 1,120,035 194,000 (150,477,201) (27,192,570) (242,630,163) D. Net (decrease)/increase in cash and bank balances (A+B+C) E. Unrealised foreign exchange gain 30 F. Cash and bank balances at beginning of the year 9 G. Cash and bank balances at the end of the year (21.760,414) 119,872 99.822,173 78,181,631 38,381,505 725,122 60,715,546 99,822, 173 3. Property, plant & equipment See Note # 5 to the financial statements Key audit matters At year end the Company had Property, plant & equipment of Tk. 273.2 million, equivalent to 19.23% of the Company's total assets, which is significantly material to the financial statements. Property, plant and equipment include the Company's long term assets, which flow economic benefits to the entity more than one year. Property plant and equipment are stated at cost or revalued amount, if any, less accumulated depreciation in compliance with International Accounting Standard (IAS)-16: Property, Plant and Equipment. Apparently, the carrying value of property, plant and equipment represents significant portion of the Company's assets which is a function of depreciation charges & impairment that involved estimation. Therefore, it has been considered as a significant area of auditor's judgment and requires special attention. There is also a risk that the impairment charges may not have been How the matters were addressed in our audit We have tested the design and operating effectiveness of key controls over property, plant and equipment. Our audit procedures included, among others, considering the impairment risk of the assets. Followings are our audit procedures on the carrying value and impairment risk of property, plant and equipment: Reviewing the basis of recognition, measurement and valuation of assets Observing the procedures of assets acquisition depreciation and disposat . Checking ownership of the major assets; Performing physical asset verification during our audit; and - We criticaly evaluated the Company's assumptions in relation to recoverable amounts of the major property, plant and equipment to identify if there is any requirement of recognition of impairment. Our testing did not identify any issues with regard to carrying value of property, plant and equipment and any indicators that would triager impairment. Net operating cash flow per share (NOCFPS) 33 15.52 35.13 The annexed notes from 1 to 44 form an integral part of these Financial Statements. 5. 30.06.2020 Taka 30.06.2019 Taka 6.3 Finished goods Opening balance Add Cost of goods manufactured during the year 27,854,564 2.136.060,875 2,163, 915,429 2.147. 161.973 16.750,456 27.397.024 2.280,785,150 2.308, 182, 174 2.280.327.620 27.854,554 Less Cost of goods sold during the year Accounts receivable 7. Sa. 30.06.2020 30.06.2019 Taka Taka Property, plant and equipment of the Company (A) Cost revaluation Opening Balance 1.146,408,901 1.146.408,901 Add: Addition during the year 212.000 1.146.620,001 1.146,408,901 (B) Accumulated depreciation Opening Balance 820,050.821 754.017.699 Add: Charged during the year 53,365,763 66,033, 122 873,416.584 820.050.821 (C) Written down value (A-B) 273,204, 316 326,358,080 Schedule of Property. Plant and Equipment is given in Annexure - A. MS. Golam Mostafa & Associates revolued the land, factory building machinery & equipment and vehicles of the Company as of 10 December 1996. Right of use assets (A) Cost Valuation Opening Balance Add: Addition during the year 8,524.044 8,524.044 (B) Accumulated depreciation Opening Balance Add: Charged during the year 1.420,674 1,420,674 (C) Written down value (A-B) 7.103,370 AMCL has applied FRS 16: Leases for the first time with the date of initial application of 01 July 2019. . Inventories Raw materials (Note: 6.1) 563.232,437 541,300 415 Work-in-process (Note: 6.2) 15,904 245 17.114.249 Finished goods (Note: 6.3) 16.750.456 27 854,554 Raw materials 595,887139 586,269,218 Opening balance 119,034,049 135,2556.478 Add: Addition during the year 2.841 267,831 2.886,459.536 2.760,301,680 3.021,716 014 Less: Adjusted during the year 2.618,712.95 2.902,031.965 141.588,722 119,034,049 Schedule of Accounts Receivable is given in Annexure - B. I. Debt considered good in respect of which the company is fully secured Accounts receivables have been stated at their nominal value. Accounts receivables are accrued in the ordinary course of business. Accounts receivable of Tk. 119,034,049 is considered good, II. Debt considered good for which the company hold no security Receivables are unsecured but considered good. IR. Debt due by directors or other officers of the company There is no such debtors due by or to directors or other officers of the Company. IV. Debt considered doubtful or bad Management considered the debts are collectable and thus no provision had been made for any doubt treceivable. V. The maximum amount due by directors or other officers of the company There are no such debt due in this respect as at 30 June 2020. The aging of Accounts Receivables as at the statement of financial position date was Less than 06 months 141,588,722 119,034,049 More than 6 months but less than 12 months - More than 12 months 141,588,722 119,034,049 Advance, deposits and prepayment 6.1 8. 541,300,415 1,841,210.880 2,382,511.275 1.819,278,838 563,232,437 519,564.737 1,887,673,128 2,507 237.865 1,965, 937.450 541,300,415 Advance Deposits Prepayment (Note 8 (Note: 8.2) (Note: 8.3 224,455, 176 28,883,805 1,325,681 324,464,662 208,278,676 24.983,805 37,052 022 270,314,503 Opening balance Add: Purchase during the year Less. Consumed during the year Raw materials consist of the followings: Packing statt Store & Spares Others raw materials Work-in-process Opening balance Add: Material used during the year Factory overhead (Note: 24.1) (: Less: Transferred to cost of goods manulactured during the year 204,140 280 7,605,187 351, 486.971 563.232.437 284.407.872 22.326.902 234.565.641 541.300,415 3.1 a) All the advances & deposits are considered good and recoverable; and b) There is no amount due from directors of the company against advances. Advance 6.2 (Note 8.1.1) 17.114.249 1.819,278.838 315,572 034 2, 151,965, 121 2.136,060.875 17.481,358 1,965,937,450 314.480,591 2.297.899,399 2.280.785.150 Advance against income tax Achances against import LC Advance against VAT Advance against SD Advance to employees against purchase 207.979, 177 28,935,971 53.914,446 29,839 3,594,743 188,412.668 18,710,313 36,718 29.839 1,089,148 2019-2020 Taka 2018-2019 Taka 30.06.2020 Taka Revenue 14 Deferred tax liability Domestic sales net of VAT & SD Export sales (Note: 23.1) (Note: 23.2) 1,539,419,792 1,101,847,839 2,641,267,631 1,939,571,613 882,258,780 2,821,830,393 Carrying amount Tax base Taxable temporary difference 98,837,228 77347136 21,490,090 Domestic sales net of VAT & SD Domestic sales including VAT & SD Less: VAT Supplementary duty (SD) Export sales Export Cash incentive 1,875,092,857 277,262,911 58,410,154 1,539,419,792 2,266,790,388 261,417 490 65,801,285 1,939,571,613 139 088 015 10802.661 30.024354 893,282,051 208,565,788 1,101,847,839 741,269,622 140,989,158 882,258,780 14.836,383 . 14836,383 Export Property, plant and equipment excluding land & land development Local Property, part and equipment excluding land & land development Revaluation Revaluation reserve for land and land development Revaluation reserwe bor assets other than land and land development Right of use assets Export Local Lease obligation Export Local 554.987 554.987 Taka 2963 287 4140,083 2963,287 4140083 (2.977.569 14.160.037) 2.977,569 41600371 66,871,578 12,50 Applicable Rate Export Local Revelation reserve for land and and development Revluation reserve for other assets 25% 3% 25% During the year, export sales include Tk. 893,282,051 equivalent to US $ 105,90,774.09 (TK. 741,269,622 equivalent to US $ 8,827,555.07 for the year ended 30 June 2019). Cost of goods sold 2019-2020 2018-2019 Export Local Taka Opening stock of raw materials 196,627,796 344,672,619 541,300,415 519,564.737 Purchase during the year 756,138,045 1,085,072,815 1,841,210,860 1,987,673,128 Closing stock of raw materials(Note: 24.2) (178,317,951) (384,914,486) (563,232,437) (541,300,415) Materials consumed 774,447,890 1,044,830,948 1,819,278,838 1,965,937,450 Opening work in process 4,495,760 12,618,489 17,114,249 17.481,358 Factory overhead (Note: 24.1) 140, 193,803 175,378,231 315,572,034 314,480,591 Closing work in process (Note: 24.3) (6,634,715) (9,269,531) (15,904,246) (17,114,249) Cost of goods manufactured 912,502,738 1,223,558,137 2,136,060,875 2,280,785,150 Opening stock of finished goods 7,317,142 20,537,412 27,854,554 27,397,024 Cost of goods available for sale 919,819,880 1,244,095,549 2,163,915,429 2,308,182,174 Closing stock of finished goodeNote: 24.4) (6,987,726) ( 9,762,730) (16,750,456) (27,854,554) 912,832,154 1,234,332,819 2,147,164,973 2,280,327,620 Factory overhead Salaries, Alowances & Wages 54,724,103 76,456,444 131,180,547 122, 103,928 Carriage, Loading & Unloading 6,430,609 8,984,369 15,414,978 14,555,593 Travel & Conveyance 953,042 1,331,519 2,284,561 2,967,201 Printing & Stationery 769,433 1,074,995 1,844,428 1.727,134 Repairs & Maintenance 999,276 1,396,114 2,395,390 2,231,904 Depreciation (Annexure - A) 30,071,927 21,524,140 51,596,067 63,835,756 Entertainment 391,818 547,419 939,237 892,078 Postage & Telephone 880,559 1,510,823 1,427,357 Power & Fuel 39,227 248 54,805,392 94,032,640 90,978,377 Testing Fees 216,911 303,052 519,963 460,959 Medical & Sanitation 301,303 420,957 722,260 691,707 Uniform & Gloves 56,573 79,040 135,613 160,600 hsurance Premium 961,329 1,343,098 2,304,427 1,863,003 Cold Storage & Other Charges 4,459,967 6,231,133 10,691,100 10,584,994 140, 193,803 175,378,231 315.572,034 314,480,591 Item wise quantity and value of raw materials Particulars Unit 30 June 2020 30 June 2019 Quantity Amount in Taka Quantity Amount in Taka Fruits, Vegetables & Kg 2,118,598 224,274,115 3,117,301 304,642,410 Consumable Stores, Spices, Unit 30.231 109,785 2,383 16,052 Ol & Salt, Chemical & Litre 592 53,284 9,445 415,179 Packing & Others kg 1,827,233 193,430,313 1,437,748 140,505,847 Additives Unit 38,914,020 141,318,922 14,202,927 95,672,881 Litre 44,982 4,046,018 1,093 48,046 563, 232,437 541,300,415 Deferred Tax Llability as at 30 June 2020-Export Dedemed Tax Liability as at 30 June 2020- Local Deleted Tax Liability as at 30 June 2020-Revaluation resere for land Defemed Tax Liability as at 30 June 2020-Revaluation resene for other assets Deferred Tax Liability as at 30 June 2020-ROU (Export) Deferred Tax Liability as at 30 June 2020-ROU (Local Delormed Tax Assets as at 30 June 2020-Lease obligation (Export) Delemad Tax Assets as at 30 June 2020-Lease obligation (Local 2.096,261 7.506,089 445091 138 747 370.411 1.005,021 (372.196) 11.040,000 10,769,414 630.264 2684.476 2307.712 376,763 7.501,101 10,146,622 12.645,522 (2.268,758) Export Deferred Tax Liability as at 30 June 2020 Deferred Tax Liability as at 30 June 2019 Deferred Tax Expense for the year ended 30 June 2020 (a) Local Delemed Tax Liability as at 30 June 2020 Deferred Tax Liability as at 30.une 2019 Deferred Tax Income for the year ended 30 June 2020 (b) Total Deferred Tax Income (a+b) Revaluation reserve for Land and land development Deemed Tax Liability as at 30 June 2020 Deemed Tax Liability as at 30 June 2013 Deferred Tax expense for the year ended 30 June 2020 (a) Revaluation reserve for other assets Deferred Tax Lability as at 30 June 2020 Deferred Tax Liability as at 30 June 2019 Deferred Tax income for the year ended 30 June 2020 (b) Total Deferred tax income fa+b) 445.091 445091 . 138,747 157.972 (19,225 (19,225 AMCL has aplod FRS 16: Leases for the first time with the date of initial application 1 July 2019 FRAN AGRICULTURAL MARKETING CO LTD ETT P R A N BOARD MEMBERS Chairman Managing Director Director Director Independent Director SENIOR MANAGEMENT Chief Financial Officer Director Marketing Company Secretary Mr Ahsan Khan Chowdhury Mr. Md. Eleash Mridha Mrs. Uzma Chowdhury Mrs. Sabiha Amjad Md. Abdus Salam, FCA QUALITY POLICY Programme for Rural Advancement Nationally Mr. Mohammad Yeamin Mr. Chowdhury Kamruzzaman Advocate Kazi Abdur Rahman FACTORY Gharashal Palash Narsingdi IT IS THE POLICY OF AGRICULTURAL MARKETING CO LTD TO MARKET PRODUCTS OF CONSISTENT QUALITY AT HOME & ABROAD AS PER WORLD STANDARDS PRODUCED HYGIENICALLY IN ACCORDANCE WITH GOOD MANUFACTURING PRACTICES IN STATE-OF-THE-ART PLANTS & PROCESSES, PACKED IN APROPRIATE PACKAGING AND REMAIN COMMITTED TO THESE OBJECTIVES AT ALL TIMES We in Bangladesh are blessed with a climate ideally suited to agriculture, specially fruits and vegetables-rich in taste and flavour, sweet, mellow and juicy REGISTERED OFFICE PRAN CENTRE Ga-105/1, Middle Badda, Dhaka-1212 Ph:BI-02-222281792 Fax B6 02-B637484 Web: www.amcipran.com AUDITORS ACNABIN Chartered Accountants BDBL Bhaban (Level-13 & 14) 12 Kawran Bazar, CIA Dhaka-1215, Bangladesh Our deltaic plains are among the most fertile in the world created and drained by the mighty rivers-the Padma, the Jamuna & the Meghna. There is plenty of water. LEGAL ADVISERS The Legal Empiricism Tropicana Tower, Suite No. A-10 10th Floor, 45 Topkhana Road Dhaka-1000. Bangladesh And farming is a way of life to our people. AMCL HAVE ADOPTED ISO-9001 AS THE MODEL FOR THEIR QUALITY MANAGEMENT SYSTEM. ACCORDINGLY A DOCUMENTED SYSTEM SYSTEM OF PROCEDURES AND INSTRUCTIONS HAVE BEEN ESTABLISHED THROUGHOUT THE ORGANISATION DEFINING BUSINESS PROCESSES, RESPONSIBILITIES AND AUTHORITIES Our comparative advantage as an economy lies in agriculture. We believe the way to economic prosperity is through agri and agro-business PRAN is in testimony to our convictions. It stands for: "Programme for Rural Advancement Nationally", or in Bangla " BANKERS & The Hong Kong and Shanghai Banking Corporation Ltd (HSBC) Margement Office, Level 4 Shanta Western Tower 186 Bir Uttam Mir Shawkat Al Road Tejgaon A Dhaka-1208 b. Commercial Bank of Caylon PLC Corporate Brance, Hadi Tower, NWK) 1. R# 50. Kemal Ataturk Avenue, Gulshan 2 Dhaka-1217 Bangladesh Krishi Bank Local Principal Office 83-85 Motijheel CIA, Dhaka-1000 Citibank NA 109. Gulshan Avenue, Gulshan Dhaka-1212 State Bank of India Uday Tower, 57-57/A Guhan Gulshan, Dhaka-1212 PRAN is the largest grower and processor of fruits and vegetables in the country 9. Bank Asia Ltd Scolis Branch. 117/1 Rangs Bh Level-1, Old Airport Road, Toge De MANAGEMENT IS COMMITTED TO PROVIDING THE RESOURCES AND CREATING AN ENVIRONMENT IN WHICH EACH EMPLOYEE CAN CONTRIBUTE HIS/HER SKILL, TALENT AND IDEAS IN A NEVER-ENDING PROCESS OF IMPROVEMENT AND INNOVATION IN ALL ASPECTS OF BUSINESS Our contract growers cultivate the choicest fruits and vegetables which are processed in our modern and hygienic factories to highest quality standards. h. IFIC Bank Ltd Ghoshal Narsingdi d. Standard Chartered Bank SC House 07. Gulshan Avenus Culshan 3 30.06.2020 Taka 30.06.2019 Taka 30.06.2020 Taka 5. 6.3 Property, plant and equipment of the Company Al cost evaluation Opening Balance Ade Motion during the year 1,146.408.901 1.146.400,001 212,000 1.146,620,901 Finished goods Opening balance Adet Cost of goods manufactured during the year Lass: Cost of goods sok during the year Accounts receivable 27,854,554 2.135060.875 2.183.915.429 2,147,164 973 16,750 456 1,146.408.901 ( B) Accumulated depreciation Opening Balance Add Carped curing eyes 7. 820 050 821 53,365.763 873,416,584 754 017699 65,033,122 820060.821 2. Inventories See Noted to the financial statements Key sudit matters How the matters were addressed in our audit The Company had invertories of Tk. 586.9 ron Wo assess the acpropaloness of maragement's 2:30 June 2020, which is 41.99% of total assets. assumplos appled in calculating the value of the The carrying amount of inventores shown in Inventory by accounts are held in factory wirehouse and across Evaluaing the design and implementaton of key multiple prod. Ines inventory controls operating across the Company incl

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