ACTIVEFINE 2014 Annual Report (Unaudited) PDF

Ref.
No-SB/1102/2015 Dated: April 29, 2015
AUDITOR’S 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 company’s management.
Respective Responsibilities of the Auditors:
Our responsibility is to express an independent opinion on this Financial Statement based on our audit.
Scope:
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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
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management as well as evaluating the overall financial statement presentation. We believe that our audit provides
d.
a reasonable basis for our opinion.
Opinion:
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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 company’s affairs as of December 31, 2014 and of the results of its operations and
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its cash flows for the year then ended and comply with the Companies Act, 1994.
We also report that:

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(i) 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.
(ii) 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.
(iii) 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
(iv) The expenditure incurred and payments made were for the purpose of the Company’s business for the year.
Dated – Dhaka SHAFIQ BASAK & CO.

April 29, 2015 CHARTERED ACCOUNTANTS
ACTIVE FINE CHEMICALS LIMITED
STATEMENT OF FINANCIAL POSITION
As at 31st December, 2014
Amount (In Taka)

ASSETS: Notes 31st December 2014 31st December 2013
Non-Current Assets:
Property, Plant and Equipments at Carrying
2 1,258,084,851 909,579,060
Value
Intangible Assets: 20,614,667 23,559,619
Product Development Cost 3 20,614,667 23,559,619
Investment 4 302,900,000 172,704,257
Current Assets: 1,577,429,128 634,245,832

Inventories 5 392,828,786 292,576,456
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Advances, Deposits and Prepayments 6 60,429,093 41,743,967
Accounts Receivable 7 667,119,275 284,451,238
Cash and Cash Equivalents 8 457,051,974 15,474,171
TOTAL ASSETS
c 3,159,028,645 1,740,088,768
d.
SHARE HOLDERS' EQUITY & LIABILITIES:
Shareholders' Equity : 2,758,596,616 1,292,912,291

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Share Capital 9 1,018,170,000 690,000,000

Share Premium 950,850,000 -
Retained Earnings 10 493,374,800 315,230,291
Revaluation Surplus 11 109,452,272 110,329,984
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Tax Holiday Reserve 12 186,749,543 177,352,016

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Non-Current Liabilities: 84,046,306 43,000,421

Deferred Tax Liability 13 45,200,376 17,425,921
Long Term Loan 14 38,845,930 25,574,500
Current Liabilities: 316,385,724 404,176,056

Short term Loan 15 58,725,760 259,452,733
Provision for Current Tax 16 185,654,308 86,624,186
Liabilities for Expense & Services 17 57,071,159 38,337,561
Liabilities for Other Finance 18 14,934,496 19,761,576
TOTAL SHARE HOLDERS' EQUITY AND LIABILITIES 3,159,028,645 1,740,088,768
Sd/- Sd/- Sd/-

Md. Zia Uddin S.M Saifur Rahman Md. Mahbubur Rahman
Chairman Managing Director Company Secretary
STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
For the year ended 31st December, 2014
Notes Amount in Taka

Particulars
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)

Administrative Expenses 21 (49,047,592) (59,881,527)
Selling & Distribution Expenses 22 (18,456,110) (16,900,719)
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Profit from Operation 543,532,070 451,879,572
Finance Cost (38,706,116) (37,418,063)

Other Income 5,441,392 531,581
Net Profit before WPPF
Allocation for WPPF c 510,267,346
(24,298,445)
414,993,090
(19,761,576)
d.
Net Profit Before Tax 485,968,901 395,231,514
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Income Tax Expenses (126,804,577) (60,382,532)

Provision for Current Tax (99,030,122) (53,916,954)
Provision for Deferred Tax (27,774,455) (6,465,578)
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Net Profit After Tax 359,164,324 334,848,982

(Transferred to Statement of Changes in Equity) 359,164,324 334,848,982
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Earnings per Share (Restated) 23 4.26 3.97
Sd/- Sd/- Sd/-

STATEMENT OF CHANGES IN EQUITY (UNAUDITED)
Tax
Share Share Retained Revaluation Total
Particulars Holiday
Capital Premium Earnings Reserve Surplus Taka
Balance 1st January 2014 690,000,000 - 315,230,291 177,352,016 110,329,984 1,292,912,291

Allotment made during the year 190,170,000 - - - - 190,170,000
Bonus Share Issued 138,000,000 - (138,000,000) - - -
Cash Dividend - - (34,500,000) - - (34,500,000)
Share Premium - 950,850,000 - - 950,850,000
Revaluation Surplus Adjustment - - 877,712 - (877,712) -
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Net Profit after Tax - - 359,164,323 - - 359,164,323
Provision for Tax Holiday - - (9,397,527) 9,397,527 - -
Balance 31st December 2014 1,018,170,000 950,850,000 493,374,800 186,749,543 109,452,272 2,758,596,615
c
d.
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Tax
Share Share Retained Revaluation Total
Particulars Holiday
Capital Premium Earnings Reserve Surplus Taka
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Balance 1st January 2013 552,000,000 - 179,598,505 115,182,790 111,282,013 958,063,308

Bonus Share Issued 138,000,000 - (138,000,000) - - -
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Revaluation Surplus - - 952,029 - (952,029) -

Adjustment
Net Profit after Tax - - 334,848,982 - - 334,848,982
Provision for Tax Holiday - - (62,169,226) 62,169,226 - -
Balance 31st December 2013 690,000,000 - 315,230,291 177,352,016 110,329,984 1,292,912,291
Sd/- Sd/- Sd/-

STATEMENT OF CASH FLOWS (UNAUDITED)
Amount (In Taka)

Particulars
2014 2013
A. Cash Flows from Operating Activities:
Collection from Sales 1,012,371,529 1,064,958,504
Payment to Suppliers (771,216,781) (685,931,117)
Payment for Expenses (86,208,378) (81,103,780)
Payment for Advance (18,685,126) (10,877,480)
Payment of WPPF (34,455,880) (24,877,571)
Other Income 5,441,392 531,581
Net Cash Generated from Operating Activities 107,246,756 262,700,137
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B. Cash Flows from Investing Activities:
Investment during the year (130,195,743) (95,504,257)
Purchase of Fixed Assets (459,868,022) (195,107,547)
c
Net Cash used in Investing Activities (590,063,765) (290,611,804)
d.
C. Cash Flows from Financing Activities:
Increase/(Decrease) in Short Term Loan (200,726,973) 26,159,865
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Increase/(Decrease) in Long Term Loan 13,271,430 11,172,000

Receipts of Share Premium 950,850,000 -
Payment Of Dividend (29,169,645) -
Increase of Share Capital
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190,170,000 -
Received/(Payment) under lease Obligation - (404,593)
Net Cash Generated/(Used) from Financing Activities 924,394,812 36,927,272
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D. Net Cash Inflow/(Outflow) from Total Activities (A+B+C) 441,577,803 9,015,605
E. Opening Cash & Cash Equivalents 15,474,171 6,458,566
F. Cash and Cash Equivalents at the End (D+E) 457,051,974 15,474,171
Sd/- Sd/- Sd/-

ACTIVE FINE CHEMICALS LTD.
REPORTS ON THE FINANCIAL STATEMENTS
BASED ON
BANGLADESH FINANCIAL REPORTING STANDARDS (BFRS)
FOR THE YEAR ENDED DECEMBER 31, 2014.
1.00 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
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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:

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The Company’s registered office is situated at Tanaka Tower (2nd Floor), 42/1/Gha,
d.
Segun Bagicha, Dhaka –1000, Bangladesh and its factory is located at West Muktarpur,
Munshiganj, Bangladesh 20 Km. away from Dhaka City.
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1.03 Nature of Business Operations:

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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
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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 (BAS’s):
Following BAS’s 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 – 18 Revenue
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BAS – 19 Employee Benefits
BAS – 21 The effects of Changes in Foreign Exchange Rate
BAS – 23 Borrowing Costs
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BAS – 24 Related Party Disclosures
d.
BAS – 33 Earnings per Share
BAS – 37 Provisions, Contingent Liabilities and Contingent Assets
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BAS – 38 Intangible Assets

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1.07 Basis of Preparation and presentation of Financial Statements:
i. Statement of compliance:
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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
company’s 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.
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.
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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.
v. Reporting Period: c
d.
The period of financial statements of the company covers one year from 1st January to
31st December and it followed consistently.
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vi. Comparative Accounts:

Figures of previous year has been re-arranged to conform to the current year’s
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presentation, wherever necessary.
vii. Presentation of Financial Statements:

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The presentation of this financial statement is in accordance with the guidelines

provided by BAS-1 Presentation of Financial Statements.
viii. 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
1.08 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-in-
progress cost includes an appropriate share of production overheads based on
normal operation capacity.
Net realizable value is the estimated selling price in the ordinary course of
business, less the estimated costs of completion of sales and selling expenses.
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Inventories are consists of as follows:
a) Raw Materials.
b) Work-in Process.
c)
d)
Finished Goods.
Packing Materials. c
d.
ii. Statement of Cash Flows:
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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
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receipt and gross cash payments from operating activities are disclosed.
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iii. 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/-
Plant & Machinery 5,70,000/-
Gas Line Installation & Other Cons. 75,00,000/-
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Total 11,34,40,000/-
Depreciation:
c
d.
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
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by writing off their net book value at the date of revaluation over their remaining
estimated useful life.
No depreciation is charged on land and land development. The rate of depreciation
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applied on straight line method for the current and comparative years are as follows:
Name of Assets Depreciation Rate Useful Life

Building 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
Gas Line Installation
& Other Construction 10% 10 Years
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.
v. 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.
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vi. Revenue Recognition:
In compliance with the requirements of BAS-18 Revenue, revenue from receipts from
c
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
d.
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
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involvement with the goods.

Sales price represents inclusive of VAT, but sales less VAT are recognized as “Revenue”.
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vii. Retirement Benefit Schemes:

(a) WPPF:
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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.
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):

Earnings per Share (EPS) are calculated in accordance with the Bangladesh
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Accounting Standard BAS-33 “Earning per Share”.
Basic earnings per share:
“Earnings per share” has been calculated by dividing the earning attributable to
c
ordinary shareholders of the company by the weighted average number of
ordinary shares outstanding during the year.
d.
Diluted Earnings per Share:
ab
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.
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xii. Provisions:
Provisions were made considering risk and un-certainties at best estimate of the
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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.
xvi. Accounts Receivables:
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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.
c
Subsequent recoveries of amounts previously provided for credited to the profit
d.
and loss account.
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xvii. 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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xviii. General:
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Previous year’s figures have been regrouped / reclassified where considered

necessary to conform to current year’s presentation. Figures have been rounded
off to the nearest taka, as the currency represented in this financial statements.
Amount (In Taka)
31st December 2014 31st December 2013
2.00 Property, Plant & Equipment :
Opening balance 1,077,962,869 882,855,322
Add: Addition during the year 459,868,022 195,107,547
1,537,830,891 1,077,962,869
Less: Disposal / Transfer during the year - -
Less: Accumulated Depreciation 279,746,040 168,383,809
Carrying Value 1,258,084,851 909,579,060
Details have been shown in Annexure-A.
3.00 Product Development Cost:
This consists of as follows:
Opening Balance 23,559,619 26,504,572
Add: Addition During the year - -
23,559,619 26,504,572
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Less: Written off @ 10% 2,944,953 2,944,953
Total 20,614,667 23,559,619
This represents expenditure for Research & Development Expenses and Development of Products and is being
amortised over 10 years as decided by the Management.
4.00 Investment :
c
d.
Investment in Shares:
AFC Capital Ltd. 47,000,000 17,000,000
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AFC Solvents Ltd. 50,000 50,000

AFC Agro Biotech Ltd. 60,050,000 60,050,000
AFC Agro Biology Ltd. 100,000 100,000
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Total 107,200,000 77,200,000

Share money deposit with AFC Health Ltd. 151,700,000 60,000,000
Share money deposit with AFC Capital Ltd. 32,000,000 30,000,000
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Investment in markatable Securities 12,000,000 5,504,257

Total 302,900,000 172,704,257
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.
5.00 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.
6.00 Advances, Deposits & Prepayments :
Advances:
Tax Deducted at Sources Note 6.01 10,807,785 5,813,122
Advance Income Tax at Import Stage Note 6.02 18,655,328 12,802,891
Advance VAT Note 6.03 5,382,758 4,761,336
283,500 82,000
Advance for rent and others 690,500 678,500
Advance to C & F agents and others 936,300 1,239,460
Sub Total 36,756,171 25,377,309
Deposits:
Security Money 1,510,339 1,508,264
L.C Margin 17,366,483 10,827,745
Sub Total 18,876,822 12,336,009
Prepayments :
Prepayment to parties 4,796,100 4,030,650
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Sub Total 4,796,100 4,030,650
Total 60,429,093 41,743,968
a) This is considered good.

c
d.
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:
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Opening balance 5,813,122 8,322,149

Add: Deducted during the year 4,994,663 6,473,549
10,807,785 14,795,698
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Less: Adjust during the year - (8,982,576)

Total 10,807,785 5,813,122
6.02 Advance Income Tax at Import Stage:
Opening balance 12,802,891 8,640,374
Add: Paid during the year 5,852,437 4,162,517
18,655,328 12,802,891
Less: Adjust during the year - -
Total 18,655,328 12,802,891
6.03 Advance VAT:
Opening balance 4,761,335 164,337
Add:Paid during the year 30,125,045 28,941,749
34,886,380 29,106,086
Less: Adjust during the year 29,503,622 24,344,751
Total 5,382,758 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.
8.00 Cash & Cash Equivalents :

Cash in Hand 1,127,473 378,150
Cash at Bank:
One Bank Ltd. A/C No. 6007 56,184 6,753
Bank Asia Ltd. A/C No. 0020 1,348,844 524,397
Janata Bank Ltd. A/C No.1594 3,418,592 2,258,784
Janata Bank Ltd. A/C No.02009 863,593 8,853,627
Eastern Bank Ltd. A/C No.12092 5,027 5,590
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NRB Bank Ltd. A/c No. 11234 157,028
Dutch Bangla Bank Ltd. A/c No.1724 1,149,651 206,081
Dutch Bangla Bank Ltd. A/c No.16657 87,164 88,434
Islami Bank Bangladesh Ltd. A/C No.5604 602,536 91,697
c
Islami Bank Bangladesh Ltd. A/C No.1910 92,848 1,628,168
d.
Islami Bank Bangladesh Ltd. A/C No.1708 22,249 22,943
Premier Bank Ltd. A/C No. 0951 441,403,143 -
Premier Bank Ltd. A/C No. 0949(Dividend A/C) 5,330,355 -
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Bangladesh Development Bank Ltd. A/C No. 4016 - 1,073,483

Bangladesh Development Bank Ltd. A/C No. 9673 1,387,287 336,064
Total 457,051,974 15,474,171
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9.00 Share Capital :

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This is made-up as follows:

Authorized:
30,00,00,000 Ordinary Shares of Tk. 10 each 3,000,000,000 1,000,000,000
Issued and Paid-up Capital :

A) By Cash:
4,00,00,000 Ordinary Shares of Tk. 10 each 400,000,000 400,000,000
1,90,17,000 Ordinary Shares of Tk. 10 each 190,170,000 -
(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%) 60,000,000 60,000,000
92, 00,000 Ordinary Shares of Tk. 10 each (2011 Stock 20%) 92,000,000 92,000,000
1, 38,00,000 Ordinary Shares of Tk. 10 each (2012 Stock 25%) 138,000,000 138,000,000
1,38,00,000 Ordinary Shares of Tk. 10 each (2013 Stock 20% & Cash 5%) 138,000,000 -
Total 1,018,170,000 690,000,000
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 26,340,058 5,711,169.00
General Shareholders 63,238,742 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:
Shareholdings No. of Share Numbers % of total

holder of Share Shareholding
Less than 500 shares 4,152 1,080,368.00 1.06
501 to 5000 shares 6,009 9,189,728.00 9.03
om
5,001 to 10,000 shares 605 4,520,029.00 4.44
10,001 to 20,000 shares 347 5,093,149.00 5.00
20,001 to 30,000 shares 118 2,986,167.00 2.93
30,001 to 40,000 shares 53 1,949,984.00 1.92
40,001 to 50,000 shares
50,001 to 1,00,000 shares c 39
74
1,782,784.00
5,537,814.00
1.75
5.44
d.
1,00,001 to 10,00,000 shares 102 30,009,867.00 29.47
Over 10,00,000 shares 16 39,667,110.00 38.96
ab
11,515 101,817,000.00 100.00

nk
10.00 Retained Earnings:

Opening Balance 315,230,290 179,598,505
Cash Dividend (34,500,000) -
La
Stock Dividend (138,000,000) (138,000,000)

Revaluation Surplus Adjustment 877,714 952,029
Net Profit after Tax 359,164,324 334,848,982
Provision for Tax Holiday (9,397,527) (62,169,226)
Total 493,374,800 315,230,290
11.00 Revaluation Surplus :

Opening Balance 110,329,984 111,282,013
Add: Addition during the year - -
110,329,984 111,282,013
Less: Adjustment during the year (Note 11.01) 877,712 952,029
Total 109,452,272 110,329,984
11.01 Adjustment During the Period:
Details are presented below:
Revaluation
Revaluation Surplus
Particulars Surplus Depreciation Adjustment
31/12/2014
1/1/2014
Land & Land Development 94,800,000 - 94,800,000
Building 9,646,954 289,409 9,357,545
Plant & Machinery 415,530 41,553 373,977
Gas Line Installation & Other Cons. 5,467,500 546,750 4,920,750
Total 110,329,984 877,712 109,452,272
12.00 Tax Holiday Reserve:

Opening Balance 177,352,016 115,182,790
Add: Addition during the year 9,397,527 62,169,226
Total 186,749,543 177,352,016
om
13.00 Deferred Tax Liability:
Opening Balance 17,425,921 10,960,343
Add: Provision made 27,774,455 6,465,578
Less: Adjustment during the yearc 45,200,376

-
17,425,921
-
d.
Total 45,200,376 17,425,921
This represents provision is made for deferred income tax to pay future incom tax liability for temporary
ab
differences.
nk
14.00 Long Term Loan:

Loan from Bank:
La
Bangladesh Development Bank Ltd

.A/C No.306011 (Note 14.01) 38,845,930 25,574,500
Total 38,845,930 25,574,500
14.01 Bangladesh Development Bank Ltd.A/C No.306011:

The details of above bank accounts are appended below:
Nature : Balancing & Expansion
Sanction Limit : Tk.14.49 Crore
Period : 5 years 6 months
Interest Rate : 15% (veriable)
15.00 Short term Loans :
Loan from Bank (CC/ OD):
NRB Bank Ltd. A/c No. 1245(O/D) 10,223,838 -
NRB Bank Ltd. A/c No. 0392 - -
NRB Bank Ltd. A/c No. 0443 (LATR) 22,913,599 -
Janata Bank Ltd. A/c No. 010237004755 (Note 15.01) 25,588,323 259,452,733
Total 58,725,760 259,452,733
15.01 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
om
Security : 342 Decimal land at Mokterpur
in Munshigonj District & Ending inventory.
16.00 Provision for Current Tax:

c
d.
Opening balance 86,624,186 41,689,808
Add: Addition During the year 99,030,122 53,916,954
185,654,308 95,606,762
ab
Less: Payment during the year - 8,982,576

Total 185,654,308 86,624,186
nk
17.00 Liabilities for Expenses & Services :

La

Salary & Remuneration 3,314,000 3,050,000
Rent 320,500 300,000
Utility Bill 610,500 566,000
Source Tax-Salary 28,066 29,913
Audit Fees 100,000 75,000
AGM Expenses 1,500,000 1,500,000
5,873,066 5,520,913
Add: Accounts Payable & L C Payable 51,198,093 32,816,650
Total 57,071,159 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 Liabilities for Other Finance :
Contribution to WPPF (Note:18.01) 9,604,141 19,751,576
Dividend payable (Note:18.02) 5,330,355 -
Total 14,934,496 19,751,576
18.01 Contribution to WPPF:

Opening balance 19,761,576 24,877,571
Add:Addition during the year 24,298,445 19,761,576
44,060,021 44,639,147
Less: Payment during the year 34,455,880 24,877,571
Total 9,604,141 19,761,576
18.02 Dividend Payable :

Opening balance - -
om
Add:Addition during the year 34,500,000 -
34,500,000 -
Less: Payment during the year 29,169,645 -
Total 5,330,355 -
19.00 Net Turnover :

c
d.
Local Sales 1,392,668,211 1,224,260,490
Export 2,371,355 2,849,925
ab
Total Turnover 1,395,039,566 1,227,110,415
20.00 Cost of Goods Sold:

nk
This is arrived as follows:

Opening W I P 38,551,087 38,256,755
Raw Material consumed (Note:20.01) 637,649,576 519,478,518
La
Packing Material consumed (Note:20.02) 36,835,104 63,600,879

Less: Closing W I P 38,256,785 38,551,087
Total Consumed 674,778,982 582,785,065
Add: Factory Overhead (Note:20.03) 156,374,713 116,519,251
Cost of Production 831,153,695 699,304,316
Add: Opening Finished Goods 41,353,223 41,556,780
Finished Goods Available 872,506,918 740,861,096
Less: Closing Finished Goods 87,869,574 41,353,223
Less: Stock Damage 123,450 408,075
Less: Cost of Sample 510,100 651,200
Cost of Goods Sold 784,003,794 698,448,598
20.01 Raw Material Consumed :
Opening Raw Materials 198,386,471 151,732,435
Add: Purchase Raw Materials 686,730,965 566,132,554
Less: Closing Raw Materials 247,467,860 198,386,471
Total 637,649,576 519,478,518
20.02 Packing Material Consumed :
Opening Packing Materials 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
20.03 Factory Overhead :
om
Car Maintenance 295,680 189,125
Carrying Exp. 177,200 110,835
Depreciation 94,657,897 61,060,638
Donation c - 57,000
d.
Entertainment Expenses 402,081 658,755
Fuel, Patrol & Lubricant 814,656 703,543
ab
Rent 1,913,500 1,469,000

Insurance Premium 1,814,313 1,184,760
nk
Lab Materials 817,339 1,031,461

Medical Exp 22,677 209,458
Municipal Tax 5,230 10,581
La
News Paper Bills 2,890 3,025

Other Expenses 100,970 109,385
Printing & Stationery Expenses 755,772 366,389
Repair & Maintenance Expenses 2,555,685 2,073,970
Research & Development Exp. 10,398,435 13,175,039
Salary & Allowance 33,926,500 26,270,229
Stock Damage 123,450 408,075
Training Fees - 36,000
Telephone & Postage Exp. 272,238 372,491
Traveling & Conveyance Expenses 754,551 780,224
Uniform Purchase 26,700 43,760
Utility Bill 6,536,949 6,195,508
Total 156,374,713 116,519,251
21.00 Administrative Expenses:
AGM & EGM Expenses 2,781,792 3,726,129
Audit Fees 146,125 111,250
Bank Charge 117,670 113,875
Books & periodicals 30,210 2,450
Depreciation 16,704,335 10,775,407
Director Remuneration 325,000 325,000
Donation 65,000 30,000
Entertainment Expenses 1,426,539 689,281
IPO Expenses(Written Off) 15,914,648
om
ISO Certificate - 293,250
Lease Rent - 60,470
Legal Expenses 11,500 46,800
Medical Exp. 2,022 9,507
News Paper Bill 14,875 12,960
Rent
c 1,321,950 546,000
d.
Printing & Stationery Expenses 869,552 609,913
Product Development Cost (Written off) 2,944,953 2,944,953
ab
Repair & Maintenance Expenses 443,593 337,913

Registration & Renewal 231,900 1,311,300
Regulatory Fees 7,279,204 1,549,088
nk
Telephone & Postage Expenses 634,867 271,924

Training Fees 43,000 9,275
La
Unallocated Revenue Expenditure(Written Off) 12,556,979

Uniform Purchase - 5,560
Utility Bill 447,634 467,274
Total 49,047,592 59,881,527
22.00 Selling & Distribution Expenses:

Advertisiment Exp. 1,234,875 942,729
Carrying Charge 110,285 79,752
Director Remuneration 325,000 325,000
Donation 5,000 75,000
Entertainment Expenses 805,343 556,365
Export Expenses 334,711 130,882
Medical Exp. - 11,044
Marketing & Promotional Exp. 2,089,268 2,779,991
News Paper Bill 12,275 8,240
Rent 1,162,500 463,500
Printing & Stationery Expenses 1,198,913 1,391,888
Repair & Maintenance Expenses 32,760 33,060
Sample cost 510,100 651,200
Telephone & Postage Expenses 328,486 538,923
Utility Bill 367,390 313,996
Total 18,456,110 16,900,719
31st December 31st December

23.00 Earning per share (EPS):
2014 2013
The computation is given below:
om
Surplus for the year 359,164,323 334,848,982
Number of share outstanding during the period 84,256,031 69,000,000
Earning Per Share 4.26 4.85
c
Number of shares is calculated below :
Opening balance of outstanding number of shares 69,000,000
d.
Add: Bonus shares issued for the year 2013 (20%) 13,800,000
Add: Weighted number of shares issued for the year 2014 1,456,031
ab
Total 84,256,031
Weighted number of shares is calculated below :

nk
Add: Weighted average number of shares for the year 2014 1,456,031
{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}
La
Total 1,456,031
24.00 Capital Expenditure Commitment:
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 party’s transaction had been set out in
accordance with provision of BAS- 24: Related Party details are as follows :
Balance as Allotment Balance as

Deposit
Nature of on 31st made on 31st
Name of Related Party during the
Transactions December, during the December,
year
2013 year 2014
AFC Capital Ltd. Investment - 30,000,000
om
17,000,000 47,000,000
AFC Solvents Ltd. Investment - -
50,000 50,000
AFC Agro Biotech Ltd. Investment - -
60,050,000 60,050,000
AFC Agro Biology Ltd.
c
Investment
100,000
- -
100,000
d.
AFC Health Ltd. Share Money Deposit
60,000,000 91,700,000 151,700,000
ab
AFC Capital Ltd. Share Money Deposit

30,000,000 32,000,000 (30,000,000) 32,000,000
nk
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
La
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./- Sd./- Sd./-

ACTIVE FINE CHEMICALS LTD. Annexure-A
Schedule of Fixed Assets
As at 31st December, 2014
COST DEPRECIATION Written

SL Particulars Addition Disposal Charged
Opening Rate Opening Down
No. during during the Total during Total
Balance Balance Value
the year year the year
Land & Land
1 - 0% - - -
Development 177,989,231 15,889,235 193,878,466 193,878,466
m
2 Building - 3%
308,772,461 59,879,688 368,652,149 20,468,627 10,161,369 30,629,996 338,022,153
3 Plant & Machinery - 10%
co
438,379,200 180,997,266 619,376,466 100,401,314 52,887,783 153,289,097 466,087,369
4 Furniture & Fixture - 10%
13,118,282 4,537,483 17,655,765 3,749,137 1,538,702 5,287,839 12,367,926
5 Office Equipment - 20% 4,764,781
d.
9,910,729 3,065,660 12,976,389 5,922,896 2,288,712 8,211,608
6 Laboratory Equipment - 20%
112,203,590 168,853,690 281,057,280 28,104,314 39,326,087 67,430,401 213,626,879
ab
7 Motor vehicle - 20%
7,361,400 26,645,000 34,006,400 5,407,730 4,136,780 9,544,510 24,461,890
Gas Line Installation &
8 - 10% 4,875,386
Other Cons. 10,227,976 - 10,227,976 4,329,793 1,022,798 5,352,590
nk
Total -
1,077,962,869 459,868,022 1,537,830,891 168,383,809 111,362,231 279,746,040 1,258,084,851
Note: Depreciation of assets addition has been charged on an average period of one and half months.
Allocation of depreciation charged during the year:
La
Head of Accounts Proportion Amount

Manufacturing
85% 94,657,897
Expenses
Administrative
15% 16,704,335
Expenses
100% 111,362,231

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No-SB/1102/2015 Dated: April 29, 2015

AUDITOR’S REPORT TO THE SHAREHOLDERS

Respective Responsibilities of the Management:

Respective Responsibilities of the Auditors:

We also report that:

Dated – Dhaka SHAFIQ BASAK & CO.

Amount (In Taka)

Current Assets: 1,577,429,128 634,245,832

Shareholders' Equity : 2,758,596,616 1,292,912,291

Share Capital 9 1,018,170,000 690,000,000

Tax Holiday Reserve 12 186,749,543 177,352,016

Non-Current Liabilities: 84,046,306 43,000,421

Current Liabilities: 316,385,724 404,176,056

Sd/- Sd/- Sd/-

Notes Amount in Taka

Net Turnover 19 1,395,039,566 1,227,110,415

Operating Expenses (67,503,702) (76,782,246)

Finance Cost (38,706,116) (37,418,063)

Income Tax Expenses (126,804,577) (60,382,532)

Net Profit After Tax 359,164,324 334,848,982

Earnings per Share (Restated) 23 4.26 3.97

Sd/- Sd/- Sd/-

Balance 1st January 2014 690,000,000 - 315,230,291 177,352,016 110,329,984 1,292,912,291

Balance 1st January 2013 552,000,000 - 179,598,505 115,182,790 111,282,013 958,063,308

Revaluation Surplus - - 952,029 - (952,029) -

Sd/- Sd/- Sd/-

Md. Zia Uddin S.M Saifur Rahman Md. Mahbubur Rahman

Amount (In Taka)

Increase/(Decrease) in Long Term Loan 13,271,430 11,172,000

D. Net Cash Inflow/(Outflow) from Total Activities (A+B+C) 441,577,803 9,015,605

E. Opening Cash & Cash Equivalents 15,474,171 6,458,566

F. Cash and Cash Equivalents at the End (D+E) 457,051,974 15,474,171

Sd/- Sd/- Sd/-

Md. Zia Uddin S.M Saifur Rahman Md. Mahbubur Rahman

1.00 SIGNIFICANT ACCOUNTING POLICIES AND OTHER MATERIAL INFORMATION:

1.01 Legal form of the Enterprise:

1.02 Registered Office and Factory:

1.03 Nature of Business Operations:

the market at a competitive price.

1.04 Commercial Production:

1.05 Components of Financial Statements:

BAS – 38 Intangible Assets

1.07 Basis of Preparation and presentation of Financial Statements:

ii. Basis of measurement:

iv. Use of estimates and judgments:

vi. Comparative Accounts:

presentation, wherever necessary.

vii. Presentation of Financial Statements:

The presentation of this financial statement is in accordance with the guidelines

viii. Regulatory Compliances:

iii. Income Tax:

Tax Holiday Reserve:

Name of Assets Depreciation Rate Useful Life

v. Product Development Cost:

involvement with the goods.

vii. Retirement Benefit Schemes:

viii. Foreign Currency Transactions:

x. Related Party Transaction:

xi. Earning per Share (EPS):

xiii. Advance, Deposits and Prepayments:

xvi. Accounts Receivables:

xvii. Segment Reporting: