ACTIVEFINE 2014 Annual Report (Unaudited) PDF

Ref.
No-SB/1102/2015
Dated: April 29, 2015
AUDITORS REPORT TO THE SHAREHOLDERS

We have audited the annexed Statement of Financial Position of ACTIVE FINE CHEMICALS LIMITED, as on
December 31, 2014 and its Statement of Comprehensive Income, Cash Flow Statement and Statement of Changes
in Equity for the year ended as on that date together with the accompanying Notes thereto.
Respective Responsibilities of the Management:

The preparation of this Financial Statement is the responsibility of the companys management.
Respective Responsibilities of the Auditors:

Our responsibility is to express an independent opinion on this Financial Statement based on our audit.
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Scope:
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d.
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We conducted our audit in accordance with BSA. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and significant estimates made by
management as well as evaluating the overall financial statement presentation. We believe that our audit provides
a reasonable basis for our opinion.
Opinion:
(i)
(ii)
(iii)
(iv)
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We also report that:
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In our opinion, the Financial Statements are prepared and maintained according to the Bangladesh Accounting
Standard (BAS) and reported in accordance with the Bangladesh Financial Reporting Standard (BFRS), give a true
and fair view of the state of the companys affairs as of December 31, 2014 and of the results of its operations and
its cash flows for the year then ended and comply with the Companies Act, 1994.
We have obtained all the information, explanations and documents which to the best of our knowledge
and belief were necessary for the purpose of our audit and made due verification thereof.
The Company management has followed relevant provision of law and rules in managing the affairs of
the Company and that proper books of account, records and other statutory books have been properly
maintained.
The Statement of Financial Position and Statement of Comprehensive Income, Statement of Changes in
Equity are in agreement with the said books of account maintained by the Company and examined by us
while the Cash Flow Statement conforms with the presentation laid out in the Bangladesh Financial
Reporting Standard (BFRS); and
The expenditure incurred and payments made were for the purpose of the Companys business for the year.
Dated Dhaka
April 29, 2015
SHAFIQ BASAK & CO.

CHARTERED ACCOUNTANTS
ACTIVE FINE CHEMICALS LIMITED

STATEMENT OF FINANCIAL POSITION
As at 31st December, 2014
Amount (In Taka)

Notes 31st December 2014 31st December 2013
ASSETS:
Non-Current Assets:
Property, Plant and Equipments at Carrying
Value
1,258,084,851
909,579,060
Product Development Cost
20,614,667
20,614,667
23,559,619
23,559,619
Investment
302,900,000
172,704,257
Current Assets:
Inventories
Advances, Deposits and Prepayments
Accounts Receivable
Cash and Cash Equivalents
5
6
7
8
1,577,429,128
392,828,786
60,429,093
667,119,275
457,051,974
634,245,832
292,576,456
41,743,967
284,451,238
15,474,171
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d.
c
TOTAL ASSETS
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Intangible Assets:
3,159,028,645
1,740,088,768
10
11
12
2,758,596,616
1,018,170,000
950,850,000
493,374,800
109,452,272
186,749,543
1,292,912,291
690,000,000
315,230,291
110,329,984
177,352,016
13
14
84,046,306
45,200,376
38,845,930
43,000,421
17,425,921
25,574,500
15
16
17
18
316,385,724
58,725,760
185,654,308
57,071,159
14,934,496
404,176,056
259,452,733
86,624,186
38,337,561
19,761,576
3,159,028,645
1,740,088,768
SHARE HOLDERS' EQUITY & LIABILITIES:

Shareholders' Equity :
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Share Capital
Share Premium
Retained Earnings
Revaluation Surplus
Tax Holiday Reserve
Non-Current Liabilities:
Deferred Tax Liability
Long Term Loan
Current Liabilities:
Short term Loan
Provision for Current Tax
Liabilities for Expense & Services
Liabilities for Other Finance
TOTAL SHARE HOLDERS' EQUITY AND LIABILITIES
Sd/Md. Zia Uddin

Chairman
Sd/S.M Saifur Rahman

Managing Director
Sd/Md. Mahbubur Rahman

Company Secretary

STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
For the year ended 31st December, 2014
Notes
Particulars
Amount in Taka
2014
2013
Net Turnover
19
1,395,039,566
1,227,110,415
Cost of Goods Sold
20
(784,003,794)
(698,448,597)
Gross Profit
611,035,772
528,661,818
Operating Expenses
(67,503,702)
(76,782,246)
21
(49,047,592)
(59,881,527)
Selling & Distribution Expenses
22
(18,456,110)
(16,900,719)
543,532,070
451,879,572
(38,706,116)
(37,418,063)
5,441,392
531,581
510,267,346
414,993,090
(24,298,445)
(19,761,576)
485,968,901
395,231,514
(126,804,577)
(60,382,532)
(99,030,122)
(53,916,954)
(27,774,455)
(6,465,578)
359,164,324
334,848,982
359,164,324
334,848,982
4.26
3.97
Profit from Operation
Other Income
Net Profit before WPPF
Allocation for WPPF
Net Profit Before Tax
Income Tax Expenses
Provision for Current Tax
Net Profit After Tax
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Provision for Deferred Tax
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d.
c
Finance Cost
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Administrative Expenses
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(Transferred to Statement of Changes in Equity)
23
Earnings per Share (Restated)
Sd/Md. Zia Uddin

Chairman

Managing Director

Company Secretary

STATEMENT OF CHANGES IN EQUITY (UNAUDITED)
Tax
Holiday
Reserve
Share
Share
Retained
Capital
Premium
Earnings
Balance 1st January 2014
690,000,000
315,230,291
Allotment made during the year
190,170,000
190,170,000
Bonus Share Issued
138,000,000
(138,000,000)
950,850,000
-
(34,500,000)
9,397,527
(877,712)
-
(34,500,000)
950,850,000
359,164,323
-
Cash Dividend
Share Premium
Revaluation Surplus Adjustment
Net Profit after Tax
Provision for Tax Holiday
1,018,170,000 950,850,000
877,712
359,164,323
(9,397,527)
493,374,800
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Balance 31st December 2014
Revaluation
Total
Surplus
Taka
177,352,016 110,329,984 1,292,912,291
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Particulars
186,749,543 109,452,272 2,758,596,615

Share
Particulars
Retained
Premium
Earnings
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Capital
Share
552,000,000
179,598,505
Bonus Share Issued
138,000,000
Revaluation Surplus
Adjustment
Balance 31st December 2013
Sd/Md. Zia Uddin

Chairman
Revaluation
Total
Surplus
Taka
115,182,790
111,282,013
(138,000,000)
952,029
(952,029)
334,848,982
(62,169,226)
62,169,226
690,000,000
315,230,291
177,352,016
110,329,984
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Balance 1st January 2013
Tax
Holiday
Reserve

Managing Director
958,063,308
334,848,982
1,292,912,291

Company Secretary

STATEMENT OF CASH FLOWS (UNAUDITED)
Amount (In Taka)
Particulars
2014
2013
A. Cash Flows from Operating Activities:

Collection from Sales
Payment to Suppliers
1,012,371,529
(771,216,781)
1,064,958,504
(685,931,117)
Payment for Expenses

Payment for Advance
(86,208,378)
(18,685,126)
(81,103,780)
(10,877,480)
Payment of WPPF
(34,455,880)
(24,877,571)
Other Income
5,441,392
531,581
107,246,756
262,700,137
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Net Cash Generated from Operating Activities

B. Cash Flows from Investing Activities:
Investment during the year
(130,195,743)
(95,504,257)
(459,868,022)
(195,107,547)
(590,063,765)
(290,611,804)
Increase/(Decrease) in Short Term Loan
(200,726,973)
26,159,865
Increase/(Decrease) in Long Term Loan
13,271,430
11,172,000
950,850,000
(29,169,645)
Increase of Share Capital

Received/(Payment) under lease Obligation
190,170,000
-
(404,593)
Net Cash Generated/(Used) from Financing Activities
924,394,812
36,927,272
441,577,803
9,015,605
15,474,171
6,458,566
457,051,974
15,474,171
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d.
c
Purchase of Fixed Assets

Net Cash used in Investing Activities
C. Cash Flows from Financing Activities:
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Receipts of Share Premium

Payment Of Dividend
D. Net Cash Inflow/(Outflow) from Total Activities (A+B+C)

E. Opening Cash & Cash Equivalents
F. Cash and Cash Equivalents at the End (D+E)
Sd/Md. Zia Uddin

Chairman

Managing Director

Company Secretary
ACTIVE FINE CHEMICALS LTD.

REPORTS ON THE FINANCIAL STATEMENTS
BASED ON
BANGLADESH FINANCIAL REPORTING STANDARDS (BFRS)
FOR THE YEAR ENDED DECEMBER 31, 2014.
SIGNIFICANT ACCOUNTING POLICIES AND OTHER MATERIAL INFORMATION:
1.01
Legal form of the Enterprise:

The Active Fine Chemicals Limited was incorporated in Bangladesh on 1st December
2004 as a Private Limited Company under the Companies Act, 1994 and subsequently it
was converted into Public Limited Company on 9th December, 2009. The company has
been listed with Dhaka Stock Exchange and Chittagong Stock Exchange in 2010.
1.02
Registered Office and Factory:

The Companys registered office is situated at Tanaka Tower (2nd Floor), 42/1/Gha,
Segun Bagicha, Dhaka 1000, Bangladesh and its factory is located at West Muktarpur,
Munshiganj, Bangladesh 20 Km. away from Dhaka City.
1.03
Nature of Business Operations:
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1.00
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Active Fine Chemicals Ltd. has been established in 2004 with a vision to share in local
market for supply of bulk drug materials. The main objective of the company is to enter
into fast growing pharmaceutical local market by providing highest quality products in
the market at a competitive price.
1.04
Commercial Production:
Its commercial production has been started since 5th October, 2009.
1.05
Components of Financial Statements:

1. Statement of Financial Position as at December 31, 2014.
2. Statement of Comprehensive Income for the year ended December 31, 2014.
3. Statement of Cash flows for the year ended December 31, 2014.
4. Statement of Changes in Equity for the year ended December 31, 2014.
5. Accounting policies and explanatory notes.
1.06
Application of Bangladesh Accounting Standards (BASs):

Following BASs are applicable for the preparation and presentation of financial statements for
the year under report.
BAS 1 Presentation of Financial Statements
BAS 2 Inventories
BAS 7 Statement of Cash Flows
BAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
BAS 10 Events after the Balance Sheet
BAS 12 Income Taxes
BAS 16 Property, Plant and Equipment
BAS 19 Employee Benefits
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BAS 18 Revenue
BAS 23 Borrowing Costs
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BAS 21 The effects of Changes in Foreign Exchange Rate
BAS 24 Related Party Disclosures

BAS 33 Earnings per Share
BAS 37 Provisions, Contingent Liabilities and Contingent Assets
Basis of Preparation and presentation of Financial Statements:

i.
Statement of compliance:
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1.07
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BAS 38 Intangible Assets
The financial statements have been prepared on going concern basis under the
Historical Cost convention in accordance with generally accepted accounting
principles and practice in Bangladesh, Bangladesh Accounting Standards (BAS), the
Companies Act 1994, the Securities & Exchange Rules 1987, Listing Regulations of Dhaka
Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) and other applicable laws
and regulation.
ii.
Basis of measurement:
The financial statements have been prepared on the Historical Cost basis except for
certain assets which are stated at revalued amount.
iii.
Functional and presentational currency and level of precision:

These financial statements are prepared in Bangladesh Taka (Taka/Tk.), which is the
companys functional currency. All financial information is presented in Taka currency
and has been rounded to the nearest taka except where indicated otherwise.
iv.
Use of estimates and judgments:

The preparation of financial statements requires management to make judgment,
estimates and assumptions that affect the applicable accounting policies and reported
amounts of assets, liabilities, income and expenses. Actual results may differ from these
estimates.
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Estimates and underlying assumptions are reviewed on an ongoing basis. Revision of

accounting estimates are recognized in the period in which the estimates are revised
and in any future periods affected.
v.
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d.
c
In particular, the key areas of estimation, uncertainty and critical judgments in applying
accounting policies that have the most significant effect on the amounts recognized in
the financial statements include depreciation, inventory valuation, accrued expenses
and other payables.
Reporting Period:
The period of financial statements of the company covers one year from 1st January to
31st December and it followed consistently.
vi.
Comparative Accounts:
viii.
Presentation of Financial Statements:

The presentation of this financial statement is in accordance with the guidelines
provided by BAS-1 Presentation of Financial Statements.
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vii.
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Figures of previous year has been re-arranged to conform to the current years
presentation, wherever necessary.
Regulatory Compliances:
As required Active Fine Chemicals Limited comply with the following major legal
provision in addition to the Companies Act 1994, the Securities and Exchange Rules
1987 and other applicable laws and regulations:
The Income Tax Ordinance 1984
The Income Tax Rules 1984
The Securities Exchange Rules 1987
The Value Added Tax Act 1991
The Value Added Tax Rules 1991
Significant Accounting Policies:

The accounting policies set out below have been applied consistently to all periods presented in
these financial statements.
i.
Inventories:
Inventories are valued at the lower of cost or net realizable value as prescribed
by BAS- 2 Inventories. The cost is assigned following weighted average cost
formula and includes expenditure incurred for acquiring the inventories,
production or conversion costs and other costs in bringing them to their existing
location and condition. In the case of manufacturing inventories and work-inprogress cost includes an appropriate share of production overheads based on
normal operation capacity.
Inventories are consists of as follows:
Statement of Cash Flows:

Statement of Cash flows has been prepared in accordance with BAS-7 Statement
of Cash Flow. Cash generated from operating activities has been reported using
the Direct Method as prescribed by the Securities and Exchange Rule 1987 and
as the benchmark treatment of BAS-7, whereby major classes of gross cash
receipt and gross cash payments from operating activities are disclosed.
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ii.
Raw Materials.
Work-in Process.
Finished Goods.
Packing Materials.
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a)
b)
c)
d)
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Net realizable value is the estimated selling price in the ordinary course of
business, less the estimated costs of completion of sales and selling expenses.
iii.
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1.08
Income Tax:
Income tax expenses comprises current and deferred tax. Income tax expenses is
recognized in Statement of Comprehensive Income.
Tax Holiday Reserve:
Tax holiday reserve has been made @ 40% from Tax exempted income for the year
under audit.
Deferred Tax:
This is the fifth year of commercial operation. Deferred tax has been calculated
according to BAS-12 and due effect has been given in the financial statements.
iv. Property, Plant and Equipments:

Recognition and Measurement:
All property, plant, equipment is measured at cost or revaluation less accumulated
depreciation less impairment loss, if any. The items of land, building, plant and
machinery were revalued in the year 2009 by a firm of professional valuer GK Adjusters
Limited on the basis of open market value. Details of revalued amount were as under:
Particulars
Amount
Land & Land Development
9,48,00,000/-
Building
1,05,70,000/5,70,000/-
Plant & Machinery
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Gas Line Installation & Other Cons.
11,34,40,000/-
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d.
c
Total
75,00,000/-
Depreciation:
Depreciation has been charged on straight line method and depreciation is charged to
manufacturing expense and administrative expense on prorata basis.
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Depreciation is charged at the rate varying from 3% to 20% depending on the estimated
useful lives of the assets. The revalued property, plant and equipment are depreciated
by writing off their net book value at the date of revaluation over their remaining
estimated useful life.
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No depreciation is charged on land and land development. The rate of depreciation

applied on straight line method for the current and comparative years are as follows:
Name of Assets
Building
Depreciation Rate
Useful Life
03%
34 Years
Plant & Machinery
10%
10 Years
Furniture & Fixture
10%
10 Years
Office Equipment
20%
05 Years
Lab Equipment
20%
05 Years
Motor Vehicle
20%
05 Years
10%
10 Years
Gas Line Installation

& Other Construction
Subsequent Costs:
The cost of replacing part of an item of property, plant and equipment will recognize in
the carrying amount of the item if it is probable that the future economic benefits
embodied within the part will flow to the company and its cost can be measured
reliably. The cost of the day to day servicing of the property, plant and equipment are
recognized in the profit and loss account as incurred.
vi.
Product Development Cost:

This leads to Research & Development Expenses and Development of Products
that is definite to yield benefit to the company are capitalized and being
amortized over 10 years from 2011 using straight line basis as decided by the
Management.
Revenue Recognition:
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v.
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d.
c
In compliance with the requirements of BAS-18 Revenue, revenue from receipts from
customers against sales is recognized when products are dispatched to customers, that
is, when the significant risk and rewards of ownership have been transferred to the
buyer, recovery of the consideration is probable, the associated costs and possible
return of goods can be estimated reliably, and there is no continuing management
involvement with the goods.
Retirement Benefit Schemes:

(a) WPPF:
As per law, the company has created a fund for workers as Workers Profit
Participation Fund (WPPF) and 5% of the net profit after charging the
contribution has been provided for this fund.
(b) Other Benefits:
The company has not yet introduced any types of Employee Benefit Schemes
like Gratuity, Group Insurance for Staff, Provident Fund etc.
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vii.
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Sales price represents inclusive of VAT, but sales less VAT are recognized as Revenue.
viii.
Foreign Currency Transactions:

Foreign Currencies are transacted into taka at the exchange rates ruling on the
date of transactions in accordance with BAS-21 The effects of changes in
foreign exchange rates.
ix.
Borrowing Cost/Finance Cost:

Finance cost comprises interest expenses on bank loan, finance lease, bank
charge and other borrowings. All finance expenses are recognized in the profit &
loss account.
x.
Related Party Transaction:

No related party transaction took place except investment in shares with AFC
Capital Limited, AFC Solvents Limited & AFC Agro Biotech Limited & AFC Agro
Biology Limited and share money deposit with AFC Health Limited & AFC Capital
Limited.
xi.
Earning per Share (EPS):
Basic earnings per share:
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Earnings per Share (EPS) are calculated in accordance with the Bangladesh
Accounting Standard BAS-33 Earning per Share.
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d.
c
Earnings per share has been calculated by dividing the earning attributable to
ordinary shareholders of the company by the weighted average number of
ordinary shares outstanding during the year.
Diluted Earnings per Share:
xii.
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No diluted EPS was required to be calculated for the year under review as there
is no scope for dilution of EPS for the year.
Provisions:
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Provisions were made considering risk and un-certainties at best estimate of the
probable expenditure that would require to meet the current obligation on the Balance
Sheet date.
xiii.
Advance, Deposits and Prepayments:

Advances are initially measured at cost. After initial recognition advances are carried at
cost less deductions, adjustments or charges to other related account heads such as
property, plant and machinery, inventory or expenses. Deposits are measured at
payment value.
Prepayments are initially measured at cost. After initial recognition, prepayments are
carried at cost less charges to income statement.
xiv.
Cash and Cash equivalents:

Cash and Cash equivalents include cash in hand, cash at banks which are held and
available for use by the company without any restriction. There is insignificant risk of
change in value of the same.
xv.
Contingencies:
Contingencies arising from claims, litigation, assessment, fines, penalties etc. are
recorded when it is probable that a liability has been incurred and the amount
can be reasonably estimated.
Accounts Receivables:
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xvi.
Segment Reporting:
As there is a single business and geographic segment within which the company
operates as such no segment reporting is felt necessary.
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xvii.
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d.
c
Accounts receivables are initially recognized at cost which is the fair value of the
consideration given for them. After initial recognition these are carried at cost,
impairment losses due to uncollectible of any amount so recognized is written
off, firstly against any provision available and then to the profit and loss account.
Subsequent recoveries of amounts previously provided for credited to the profit
and loss account.
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xviii. General:
Previous years figures have been regrouped / reclassified where considered
necessary to conform to current years presentation. Figures have been rounded
off to the nearest taka, as the currency represented in this financial statements.
Amount (In Taka)

31st December 2014
2.00
31st December 2013
Property, Plant & Equipment :

Opening balance
Add: Addition during the year
1,077,962,869
882,855,322
459,868,022
195,107,547
1,537,830,891
1,077,962,869
Less: Disposal / Transfer during the year

Less: Accumulated Depreciation
Carrying Value
279,746,040
168,383,809
1,258,084,851
909,579,060
Details have been shown in Annexure-A.

Product Development Cost:
This consists of as follows:
Opening Balance
Add: Addition During the year
23,559,619
-
26,504,572
-
Less: Written off @ 10%
23,559,619
2,944,953
26,504,572
2,944,953
20,614,667
23,559,619
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3.00
Total
Investment :
Investment in Shares:
AFC Capital Ltd.
AFC Solvents Ltd.
AFC Agro Biotech Ltd.
AFC Agro Biology Ltd.
47,000,000
50,000
60,050,000
100,000
17,000,000
50,000
60,050,000
100,000
Total
Share money deposit with AFC Health Ltd.
Share money deposit with AFC Capital Ltd.
Investment in markatable Securities
107,200,000
151,700,000
32,000,000
12,000,000
77,200,000
60,000,000
30,000,000
5,504,257
Total
302,900,000
172,704,257
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4.00
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d.
c
This represents expenditure for Research & Development Expenses and Development of Products and is being
amortised over 10 years as decided by the Management.
5.00
10% of Tax Holiday Reserve has been invested in the secondery market as requirement of the cluse 46(b)
sub section 4 (b) of Income Tax Ordinance 1984.
Inventories :
The break-up is as follows:
Raw Materials
247,467,860
198,386,471
Packing Materials
19,234,567
14,285,675
Work in process
38,256,785
38,551,087
Finished goods
87,869,574
41,353,223
Total
392,828,786
292,576,456
The basis of valuation is stated in Note 1 (1.08.i)
In view of innumerable items of inventory and diversified quantities, it is not practical to disclose
quantities against each item of inventory.
Advances, Deposits & Prepayments :

Advances:
Tax Deducted at Sources
Note 6.01
Advance Income Tax at Import Stage Note 6.02
Advance VAT
Note 6.03
a) This is considered good.
5,813,122
12,802,891
4,761,336
82,000
678,500
1,239,460
25,377,309
1,510,339
17,366,483
18,876,822
1,508,264
10,827,745
12,336,009
4,796,100
4,796,100
60,429,093
4,030,650
4,030,650
41,743,968
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d.
c
Advance for rent and others

Advance to C & F agents and others
Sub Total
Deposits:
Security Money
L.C Margin
Sub Total
Prepayments :
Prepayment to parties
Sub Total
Total
10,807,785
18,655,328
5,382,758
283,500
690,500
936,300
36,756,171
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6.00
b) Employees advances of Tk. 82,000/- as shown above.

c) No amount was due from the Managing Director, Managing Agent, Directors, Managers. and Officers of the
company and any of them severally with any other person except as stated in (b) above
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d) No amount was due by the related party.

6.01 Tax Deduct at Sources:
Opening balance
Add: Deducted during the year
Less: Adjust during the year
Total
6.02
Advance Income Tax at Import Stage:

Opening balance
Add: Paid during the year
Total
6.03
Advance VAT:
Opening balance
Add:Paid during the year
Total
5,813,122
4,994,663
10,807,785
10,807,785
12,802,891
5,852,437
18,655,328
18,655,328
4,761,335
30,125,045
34,886,380
29,503,622
5,382,758
8,322,149
6,473,549
14,795,698
(8,982,576)
5,813,122
8,640,374
4,162,517
12,802,891
12,802,891
164,337
28,941,749
29,106,086
24,344,751
4,761,335
7.00
Accounts Receivable :
667,119,275
284,451,240
This includes receivable of Tk. 31,20,155/- against Institutions & Tk.66,39,99,120/- due from the local
distributors of the pharmaceutical product of the company,out of which TK. 45,49,03,932.00 has subsequantly
been realised up to April 20,2015.
No amount was due from the Managing Director, Managing Agent, Directors, Managers and Officers of the
company and any of them severally or jointly with any other person.
Cash & Cash Equivalents :
Cash in Hand
Cash at Bank:
One Bank Ltd. A/C No. 6007
Bank Asia Ltd. A/C No. 0020
Janata Bank Ltd. A/C No.1594
Janata Bank Ltd. A/C No.02009
Eastern Bank Ltd. A/C No.12092
NRB Bank Ltd. A/c No. 11234
Dutch Bangla Bank Ltd. A/c No.1724
Dutch Bangla Bank Ltd. A/c No.16657
Islami Bank Bangladesh Ltd. A/C No.5604
Premier Bank Ltd. A/C No. 0951
Premier Bank Ltd. A/C No. 0949(Dividend A/C)
Bangladesh Development Bank Ltd. A/C No. 4016
Bangladesh Development Bank Ltd. A/C No. 9673
1,127,473
378,150
56,184
1,348,844
3,418,592
863,593
5,027
157,028
1,149,651
87,164
602,536
92,848
22,249
441,403,143
5,330,355
1,387,287
6,753
524,397
2,258,784
8,853,627
5,590
Total
457,051,974
15,474,171
nk
Share Capital :
This is made-up as follows:
Authorized:
30,00,00,000 Ordinary Shares of Tk. 10 each
La
9.00
ab
d.
c
om
8.00
Issued and Paid-up Capital :

A) By Cash:
3,000,000,000
1,000,000,000
400,000,000
190,170,000
400,000,000
-
(New Capital Raise Vide BSEC Letter No.SEC/ci/cplc(pvt.)

-201/09/559 Dt. August,12 2014)
B) By Issue of Bonus Share:
60,00,000 Ordinary Shares of Tk. 10 each (2010 Stock 15%)
92, 00,000 Ordinary Shares of Tk. 10 each (2011 Stock 20%)
1, 38,00,000 Ordinary Shares of Tk. 10 each (2012 Stock 25%)
1,38,00,000 Ordinary Shares of Tk. 10 each (2013 Stock 20% & Cash 5%)
Total
206,081
88,434
91,697
1,628,168
22,943
1,073,483
336,064
60,000,000
92,000,000
138,000,000
138,000,000
1,018,170,000
60,000,000
92,000,000
138,000,000
690,000,000
Shareholding Position as on 31st December are as follows :

Number of Shares
Number of Shares
Directors / Sponsors
12,238,200
10,198,500.00
Institutions
General Shareholders
26,340,058
63,238,742
5,711,169.00
53,090,331.00
Total
101,817,000
69,000,000.00
A distribution schedule of the above shares are given below as required by the Listing Rules:
Less than 500 shares

501 to 5000 shares
No. of Share
Numbers
% of total
holder
of Share
Shareholding
4,152
6,009
1,080,368.00
9,189,728.00
1.06
9.03
4,520,029.00
4.44
5,093,149.00
2,986,167.00
5.00
2.93
1,949,984.00
1,782,784.00
1.92
1.75
74
102
5,537,814.00
30,009,867.00
5.44
29.47
16
39,667,110.00
38.96
11,515
101,817,000.00
100.00
605
10,001 to 20,000 shares

20,001 to 30,000 shares
347
118
30,001 to 40,000 shares

40,001 to 50,000 shares
53
39
50,001 to 1,00,000 shares

1,00,001 to 10,00,000 shares
Retained Earnings:
Opening Balance
Cash Dividend
Stock Dividend
Revaluation Surplus Adjustment
Total
La
10.00
nk
Over 10,00,000 shares
ab
d.
c
5,001 to 10,000 shares
om
Shareholdings
11.00
Revaluation Surplus :
Opening Balance
Less: Adjustment during the year
Total
(Note 11.01)
315,230,290
(34,500,000)
(138,000,000)
877,714
359,164,324
(9,397,527)
493,374,800
179,598,505
(138,000,000)
952,029
334,848,982
(62,169,226)
315,230,290
110,329,984
110,329,984
877,712
109,452,272
111,282,013
111,282,013
952,029
110,329,984
Adjustment During the Period:

Details are presented below:
Particulars
Land & Land Development
Building
Plant & Machinery
Gas Line Installation & Other Cons.
Total
12.00
Deferred Tax Liability:

Opening Balance
Add: Provision made
Depreciation Adjustment
Revaluation Surplus
31/12/2014
289,409
41,553
546,750
877,712
94,800,000
9,357,545
373,977
4,920,750
109,452,272
177,352,016
9,397,527
186,749,543
17,425,921
27,774,455
45,200,376
45,200,376
ab
d.
c
13.00
Tax Holiday Reserve:

Opening Balance
Total
Revaluation
Surplus
1/1/2014
94,800,000
9,646,954
415,530
5,467,500
110,329,984
om
11.01
Less: Adjustment during the year

Total
115,182,790
62,169,226
177,352,016
10,960,343
6,465,578
17,425,921
17,425,921
Long Term Loan:

Loan from Bank:
Bangladesh Development Bank Ltd
.A/C No.306011 (Note 14.01)
Total
La
14.00
nk
This represents provision is made for deferred income tax to pay future incom tax liability for temporary
differences.
14.01
38,845,930
38,845,930
Bangladesh Development Bank Ltd.A/C No.306011:

The details of above bank accounts are appended below:
Nature
Sanction Limit
Period
Interest Rate
25,574,500
25,574,500
: Balancing & Expansion

: Tk.14.49 Crore
: 5 years 6 months
: 15% (veriable)
15.00
Short term Loans :

Loan from Bank (CC/ OD):
NRB Bank Ltd. A/c No. 1245(O/D)
NRB Bank Ltd. A/c No. 0392
NRB Bank Ltd. A/c No. 0443 (LATR)
Janata Bank Ltd. A/c No. 010237004755 (Note 15.01)
Total
10,223,838
22,913,599
25,588,323
58,725,760
259,452,733
259,452,733
Janata Bank A/c # 010237004755 :

The details of above bank accounts are appended below:
Nature
: CC (HYPO)
Sanction Limit
: Tk.25.00 Crore
Expiry date
: 28/02/2016
Interest Rate
: 15.50% (veriable)
Renewal Status
: Renewed
Security
: 342 Decimal land at Mokterpur
in Munshigonj District & Ending inventory.
16.00
Provision for Current Tax:

Opening balance
Add: Addition During the year
ab
d.
c
om
15.01
Liabilities for Expenses & Services :

Salary & Remuneration
Rent
Utility Bill
Source Tax-Salary
Audit Fees
AGM Expenses
La
17.00
41,689,808
53,916,954
95,606,762
8,982,576
86,624,186
nk
Less: Payment during the year

Total
86,624,186
99,030,122
185,654,308
185,654,308
Add: Accounts Payable & L C Payable

Total
3,314,000
320,500
610,500
28,066
100,000
1,500,000
5,873,066
51,198,093
57,071,159
3,050,000
300,000
566,000
29,913
75,000
1,500,000
5,520,913
32,816,650
38,337,563
This represents amount payable to regular suppliers of raw materials, packing materials, promotional
materials etc. All suppliers were paid on a regular basis.
18.00
18.01
Liabilities for Other Finance :

Contribution to WPPF
Dividend payable
Total
(Note:18.01)
(Note:18.02)
Contribution to WPPF:
Opening balance
Add:Addition during the year
Total
Dividend Payable :
Opening balance
Add:Addition during the year
Cost of Goods Sold:

This is arrived as follows:
Opening W I P
Raw Material consumed
(Note:20.01)
Packing Material consumed
(Note:20.02)
Less: Closing W I P
Total Consumed
Add: Factory Overhead
(Note:20.03)
Cost of Production
Add: Opening Finished Goods
Finished Goods Available
Less: Closing Finished Goods
Less: Stock Damage
Less: Cost of Sample
Cost of Goods Sold
nk
20.00
Net Turnover :
Local Sales
Export
Total Turnover
La
19.00
19,761,576
24,298,445
44,060,021
34,455,880
9,604,141
24,877,571
19,761,576
44,639,147
24,877,571
19,761,576
34,500,000
34,500,000
29,169,645
5,330,355
ab
d.
c

Total
19,751,576
19,751,576
om
18.02
9,604,141
5,330,355
14,934,496
1,392,668,211
2,371,355
1,395,039,566
38,551,087
637,649,576
36,835,104
38,256,785
674,778,982
156,374,713
831,153,695
41,353,223
872,506,918
87,869,574
123,450
510,100
784,003,794
1,224,260,490
2,849,925
1,227,110,415
38,256,755
519,478,518
63,600,879
38,551,087
582,785,065
116,519,251
699,304,316
41,556,780
740,861,096
41,353,223
408,075
651,200
698,448,598
20.01
20.02
Raw Material Consumed :

Opening Raw Materials
Add: Purchase Raw Materials
Less: Closing Raw Materials
Total
198,386,471
686,730,965
247,467,860
637,649,576
151,732,435
566,132,554
198,386,471
519,478,518
Packing Material Consumed :

14,285,675
16,154,665
Add: Purchase Packing Materials
41,783,996
61,731,889
Less: Closing Packing Materials
19,234,567
14,285,675
Total
36,835,104
63,600,879

Car Maintenance
om
Factory Overhead :
295,680
189,125
177,200
110,835
94,657,897
61,060,638
57,000
Entertainment Expenses
402,081
658,755
Fuel, Patrol & Lubricant
814,656
703,543
1,913,500
1,469,000
1,814,313
1,184,760
Lab Materials
817,339
1,031,461
Medical Exp
22,677
209,458
Municipal Tax
5,230
10,581
News Paper Bills
2,890
3,025
Other Expenses
100,970
109,385
Printing & Stationery Expenses
755,772
366,389
2,555,685
2,073,970
Research & Development Exp.
10,398,435
13,175,039
Salary & Allowance
33,926,500
26,270,229
123,450
408,075
36,000
Telephone & Postage Exp.
272,238
372,491
Traveling & Conveyance Expenses
754,551
780,224
26,700
43,760
6,536,949
6,195,508
156,374,713
116,519,251
Depreciation
Donation
Rent
nk
Insurance Premium
ab
d.
c
Carrying Exp.
La
20.03
Opening Packing Materials
Repair & Maintenance Expenses
Stock Damage
Training Fees
Uniform Purchase
Utility Bill
Total
Administrative Expenses:
AGM & EGM Expenses
Audit Fees
Bank Charge
Books & periodicals
Car Maintenance
Depreciation
Director Remuneration
Donation
IPO Expenses(Written Off)
ISO Certificate
Lease Rent
Legal Expenses
Medical Exp.
News Paper Bill
Rent
Other Expenses
Product Development Cost (Written off)
Registration & Renewal
Regulatory Fees
Salary & Allowance
Telephone & Postage Expenses
Training Fees
Unallocated Revenue Expenditure(Written Off)
Uniform Purchase
Utility Bill
Total
447,634
49,047,592
3,726,129
111,250
113,875
2,450
416,890
10,775,407
325,000
30,000
689,281
394,778
15,914,648
293,250
60,470
46,800
9,507
12,960
546,000
66,902
609,913
2,944,953
337,913
1,311,300
1,549,088
5,961,307
271,924
320,445
9,275
12,556,979
5,560
467,274
59,881,527
Selling & Distribution Expenses:

Advertisiment Exp.
Car Maintenance
Carrying Charge
Director Remuneration
Donation
Export Expenses
Medical Exp.
Marketing & Promotional Exp.
1,234,875
961,918
110,285
325,000
5,000
805,343
334,711
452,565
2,089,268
942,729
546,329
79,752
325,000
75,000
556,365
130,882
518,766
11,044
2,779,991
om
2,781,792
146,125
117,670
30,210
536,714
16,704,335
325,000
65,000
1,426,539
477,739
La
nk
ab
d.
c
21.00
22.00
11,500
2,022
14,875
1,321,950
85,064
869,552
2,944,953
443,593
231,900
7,279,204
11,394,905
634,867
711,450
43,000
News Paper Bill

Other Expenses
Rent
Salary & Allowance
Sample cost
Telephone & Postage Expenses
Utility Bill
12,275
172,441
1,162,500
1,198,913
32,760
7,779,870
510,100
328,486
572,410
367,390
18,456,110
Total
31st December
2014
Earning per share (EPS):
ab
d.
c
The computation is given below:

Surplus for the year
Number of share outstanding during the period
Earning Per Share
Number of shares is calculated below :

Opening balance of outstanding number of shares
Add: Bonus shares issued for the year 2013 (20%)
Add: Weighted number of shares issued for the year 2014
Total
nk
Weighted number of shares is calculated below :

Add: Weighted average number of shares for the year 2014
{1,75,84,000 x 30/365
= 14,45,260}
{8,33,000 x 4/365
= 9,128}
{6,00,000 x 1/365
= 1,643}
Total
24.00 Capital Expenditure Commitment:
La
31st December
2013
om
23.00
8,240
166,294
463,500
1,391,888
33,060
6,433,767
651,200
538,923
933,993
313,996
16,900,719
359,164,323
84,256,031
4.26
334,848,982
69,000,000
4.85
69,000,000
13,800,000
1,456,031
84,256,031
1,456,031
1,456,031
There was no material capital expenditure authorized by the Board but not contracted for at 31st
December 2014.
25.00 Claim not acknowledged as Debt:
There was no claim against the company not acknowledged as debt as on 31st December 2014.
26.00 Un-availed credit Facilities:
There was no credit facility available to the company under any contract, other than trade credit
available in the ordinary course of business and not availed of as on 31st December 2014.
27.00 Number of Employees:
The number of employees engaged for the whole year who received a total remuneration of
Tk.3, 000/- and above per month was 217 for the whole year.
28.00 Contingent liability:
There have been no contingent liabilities to the company except some negligible letter of credits
in the ordinary course of business.
29.00 Related party Transaction :
a) Related party transaction took place for investment in share this year by Active Fine Chemicals Ltd. with
AFC Health Ltd. and AFC Capital Ltd. The name of the related partys transaction had been set out in
accordance with provision of BAS- 24: Related Party details are as follows :
Investment
AFC Solvents Ltd.
Investment
AFC Agro Biotech Ltd.
Investment
AFC Agro Biology Ltd.
Deposit
during the
year
Allotment
made
during the
year
30,000,000
17,000,000
50,000
60,050,000
ab
d.
c
AFC Capital Ltd.
Balance as
on 31st
December,
2013
om
Name of Related Party
Nature of
Transactions
Investment
Share Money Deposit
AFC Capital Ltd.
Share Money Deposit
60,000,000
91,700,000
30,000,000
32,000,000
47,000,000
50,000
60,050,000
100,000
151,700,000
(30,000,000)
32,000,000
nk
AFC Health Ltd.
100,000
Balance as
on 31st
December,
2014
La
b) Further AFC Agro Biotech Ltd. is one of the supplier of Active Fine Chemicals Ltd. during this year
Active Fine Chemicals Ltd. purchase product TK. 3,19,83,630.00 from AFC Agro Biotech Ltd. and
paid TK. 2,60,00,000.00 against purchase after adjusting payable balance of TK. 38,59,854.00
and balance payable to AFC Agro Biotech Ltd. as on 31st December, 2014 was TK. 98,43,484.00.
c) Related party transaction took place during normal course of business with AFC Agro Biotech
Ltd.
30.00 Events after financial position date :
Date of Authorization:
(a) The Board of Directors of Active Fine Chemicals Limited authorized these Financial Statements for
the year ended 2014 in its 116th Board Meeting held on 29th April, 2015.
(b) The Board of Directors at the 116th Board Meeting held on 29th April, 2015 recommended 20% stock
dividend & 6% cash dividend. This will be considered for approval by the shareholders at the 10th
Annual General Meeting (AGM).
(c) There has been no significant event other than above & normal activities between the financial year
closing date and Financial Statement signing date.
Sd./Md. Zia Uddin
Chairman
Sd./S.M Saifur Rahman

Managing Director
Sd./Md. Mahbubur Rahman

Company Secretary
ACTIVE FINE CHEMICALS LTD.

Schedule of Fixed Assets
As at 31st December, 2014
2 Building
3 Plant & Machinery
4 Furniture & Fixture
5 Office Equipment
6 Laboratory Equipment
7 Motor vehicle
Gas Line Installation &
8
Other Cons.
Total
177,989,231
15,889,235
308,772,461
59,879,688
438,379,200
180,997,266
13,118,282
4,537,483
9,910,729
3,065,660
112,203,590
168,853,690
7,361,400
26,645,000
10,227,976
1,077,962,869
Total
193,878,466
459,868,022
Rate
DEPRECIATION
Charged
Opening
during
Total
Balance
the year
0%
368,652,149
619,376,466
17,655,765
12,976,389
281,057,280
34,006,400
10,227,976
1,537,830,891
3%
10%
10%
20%
20%
20%
10%
20,468,627
10,161,369
30,629,996
338,022,153
100,401,314
52,887,783
153,289,097
466,087,369
3,749,137
1,538,702
5,287,839
12,367,926
5,922,896
2,288,712
8,211,608
28,104,314
39,326,087
67,430,401
213,626,879
5,407,730
4,136,780
9,544,510
24,461,890
4,329,793
1,022,798
5,352,590
168,383,809
111,362,231
279,746,040
Note: Depreciation of assets addition has been charged on an average period of one and half months.
Allocation of depreciation charged during the year:
Head of Accounts
Manufacturing
Expenses
Administrative
Expenses
Proportion
Amount
85%
94,657,897
15%
16,704,335
100%
111,362,231
Written
Down
Value
co
m
Land & Land

Development
Opening
Balance
COST
Addition
Disposal
during
during the
the year
year
ab
d.
Particulars
La
nk
SL
No.
Annexure-A
193,878,466
4,764,781
4,875,386
1,258,084,851

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Dated: April 29, 2015

AUDITORS REPORT TO THE SHAREHOLDERS

Respective Responsibilities of the Management:

Respective Responsibilities of the Auditors:

We also report that:

SHAFIQ BASAK & CO.

ACTIVE FINE CHEMICALS LIMITED

Amount (In Taka)

Product Development Cost

SHARE HOLDERS' EQUITY & LIABILITIES:

Sd/Md. Zia Uddin

Sd/S.M Saifur Rahman

Sd/Md. Mahbubur Rahman

ACTIVE FINE CHEMICALS LIMITED

Cost of Goods Sold

Selling & Distribution Expenses

Profit from Operation

Net Profit After Tax

Provision for Deferred Tax

(Transferred to Statement of Changes in Equity)

Earnings per Share (Restated)

Sd/Md. Zia Uddin

Sd/S.M Saifur Rahman

Sd/Md. Mahbubur Rahman

ACTIVE FINE CHEMICALS LIMITED

Balance 1st January 2014

Allotment made during the year

Bonus Share Issued

Balance 31st December 2014

177,352,016 110,329,984 1,292,912,291

186,749,543 109,452,272 2,758,596,615

For the year ended 31st December, 2013

Bonus Share Issued

Balance 31st December 2013

Sd/Md. Zia Uddin

Balance 1st January 2013

Sd/S.M Saifur Rahman

Sd/Md. Mahbubur Rahman

ACTIVE FINE CHEMICALS LIMITED

Amount (In Taka)

A. Cash Flows from Operating Activities:

Payment for Expenses

Net Cash Generated from Operating Activities

Increase/(Decrease) in Short Term Loan

Increase/(Decrease) in Long Term Loan

Increase of Share Capital

Net Cash Generated/(Used) from Financing Activities

Purchase of Fixed Assets

C. Cash Flows from Financing Activities:

Receipts of Share Premium

D. Net Cash Inflow/(Outflow) from Total Activities (A+B+C)

Sd/Md. Zia Uddin

Sd/S.M Saifur Rahman

Sd/Md. Mahbubur Rahman

ACTIVE FINE CHEMICALS LTD.

SIGNIFICANT ACCOUNTING POLICIES AND OTHER MATERIAL INFORMATION:

Legal form of the Enterprise:

Registered Office and Factory:

Nature of Business Operations:

Components of Financial Statements:

Application of Bangladesh Accounting Standards (BASs):