•Rahman Mostafa Alam & Co.Chartered Accountants

~~T'".•..•.T.•.

~T~T~T~INPACTINTERNATIONAL.•• A f f III ATE

Auditors' Report to The ShareholdersOf

Confidence Cement Limited

We have audited the accompanying financial statements of Confidence Cement Limited C'the company") which comprise the statement offinancial position as at December 31, 2013 and statement of comprehensive income, statement of changes in equity and statement of cashflows for the year then ended and a summary of significant accounting policies and other explanatory information disclosed in Notes 1-37and Annexure A to B to the financial statements.

Management's Responsibility for the Financial Statements

Management of the company is responsible for the preparation and fair presentation of these financial statements in accordance withBangladesh Financial Reporting Standards (BFRS) and for such internal control as management determines is necessary to enable thepreparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance withBangladesh Standards on Auditing (BSA). Those standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. Theprocedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financialstatements, whether due to fraud or error. In making those risks of assessments, the auditor considers internal control relevant to theentity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in thecircumstances, but not for the purpose expressing an opinion on the effectiveness of the entity's internal control. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as wellas evaluating the overall presentation of the financial statement.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.:

Opinion:

In our opinion the financial statements of the company prepared in accordance with the Bangladesh Financial Reporting Standards (BFRS)give a true & fair view of financial position of Confidence Cement Limited as at December 31, 2013 and its financial performance and itscash flows for the year then ended and comply with the applicable section of the Companies Act 1994, the Securities and Exchange Rules1987 and other applicable laws and regulations.

We also report that:

(a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for thepurpose of our audit and made due verification thereof;

(b) In our opinion, proper books of accounts as required by law have been kept by the company so far as it appeared from ourexamination of those books ;

(c) The company's Statement of Financial Position & statement of Comprehensive Income dealt with by the report are in agreementwith the books of accounts ;

(d) The expenditure incurred was for the purpose of the company's business.

Dated: Chitta gongApril 27 ,2014

_,ohaka Office: Paramount Heights (7th Floor, D2), 65/2/1 Box Culvert Road, Purana Paltan, Dhaka-1000. Phone: 9553449, FAX: 9551128, E-mail: rma@dhaka.net

Chittagong Office: Taher Chamber (2nd Floor), 10Agrabad CIA, Chittagong, Bangladesh. Phone: 725314, E-mail: rmactg@gmail.com

CONFIDENCE CEMENT LIMITEDStatement of Financial PositionAs at 31 December 2013

ASSETSNon-Current Assets

Property, plant and equipment

Capital work in progress

Investments

Total non-current assets

Current AssetsInventories

Book Debts

Advances, deposits and pre-payments

Other receivables

Cash and cash equivalents

Total current assets

Total Assets

EQUITY AND LIABILITIESShareholders' equity

Share Capital

Share Premium

Reserves

Capital and revaluation surplus

Revenue reserve

Total equity

Non-current LiabilitiesDeffered Liability (Gratuity )

Deffered tax liability

Long term loan-Secured

Total non-current liabilities

Current LiabilitiesCreditors and accruals

Secured short term loans

Current portion of long term loans

Provision for taxation

Total current liabilities

Total equity and liabilities

Contingent Liabilities and Commitments 23The annexed notes 1 37 from an integral part of ~~:~ ,

. '-( Engr. Raul Karim) ( Rupam Kishore Barua )Chairman Managing Director

Signed in terms of our separate report of even date annexed

Dated : Chittagong

April 27,2014

2

678910

1112131415

161718

19202122

34

5

Taka

Taka

Rahman Mostafa Alam & Co.Chartered Accountants

2012Taka

2013~

2,009,477,427

108,267,454

708,470,710

2,826,215,591

233,412,271

583,170,584

763,282,961

72,933,623

108,087,011

1,760,886,450

1,895,072,261

87,968,269

556,092,406

2,539,132,936

360,255,810

445,863,355

645,505,620

50,113,216

43,105,373

4,587,102,041

449,935,200

658,089,549

371,862,754

728,366,691

721,220,353

1,544,843,374

4,083,976,310

449,935,200

658,089,549

371,862,754

754,994,398

259,143,496

2,494,025,397

22,508,820

322,839,766

52,655,961

398,004,547

2,929,474,547

28,031,330

303,247,882

78,725,253

410,004,465

192,856,352

856,009,317

40,920,165

157,837,195

174,798,129

840,787,656

36,447,874

139,912,707

1,191,946,366

4,083,976,310

( New., Mm~Ycusuf )Company Secretary

1,247,623,029

4,587,102,041

CONFIDENCE CEMENT LIMITEDStatement of Comprehensive IncomeFor the year ended 31 December 2013

Revenue

Less: Cost of goods sold

Gross Profit

Less: Expenses:

AdministrativeSelling and distribution

Trading profit

Less: Financial charges

Operating profit before other income

Add : Other income

Operating profit before income tax andworkers' profit participation fund

Less: Contribution to workers' profit

participation fund ( @ 5% )

Net profit before taxLess: Provision for Income tax

Current year

Deferred tax

Net profit after tax

Other comprehensive income/(Ioss)

Total comprehensive income for the year

Earning Per share

The annexednotes 1~o inteqral part of ~ fio," . • ._

( Engr. Rezaul Karim) ( Rupam Kishore Barua )Chairman Managing Director

2425

2627

28

29

30

31

32

Signed in terms of our separate report of even date annexed

Dated : Chittagong

April 27,2014

3

Rahman Mostafa Alam & Co.Chartered Accountants

2013lAY

3,481,284,388

2,765,198,852716,085,536

8.09

2012Taka

3,271,923,378

2,710,292,215561,631,163

59,041,342

37,056,159

96,097,501

465,533,662

81,698,612383,835,050

24,976,725

408,811,775

20,440,588

388,371,187

68,992,123

51,167,880

120,160,003

595,925,533

100,906,479

495,019,054

36,676,531

531,695,585

25,318,837

506,376,748

128,239,520

14,136,820142,376,340

364,000,408

97,969,97310,000,000

107,969,973280,401,214

(179,758,789)

100,642,425

6.23

(Newaz MOh~U'uf JCompany Secretary

127,707,078

491,707,486

CONFIDENCE CEMENT LIMITEDStatement of Changes in Equity

Rahman Mostafa Alam & Co.

Chartered Accountants

For the year ended 31 December 2012

Share Share General Revaluation Revenue Total

Capital premium Reserve surplus reserve

Opening balances 374,946,000 658,089,549 371,862,754 788,083,523 321,960,841 2,514,942,667

Adjustment for deferred tax liability 2011 (59,121,544) (59,121,544)

Restated Balance as on 1 Jan 2012 374,946,000 658,089,549 371,862,754 788,083,523 262,839,297 2,455,821,123

Adjustment for depreciation on

revalued assets 2012 - - - (45,640,174) 45,640,174 -

Adjustment for deffered tax - - - 12,551,049 - 12,551,049

Total comprehensive income during - - - - 100,642,425 100,642,425

the year

cash dividend paid-2011 - - - - (74,989,200) (74,989,200)

Stock dividend paid-2011 74,989,200 - - - (74,989,200) -

Closing balances 449,935,200 658,089,549 371,862,754 754,994,398 259,143,496 2,494,025,397

For the year ended 31 December 2013

Share Share General Revaluation Revenue TotalCapital premium Reserve surplus reserve

Opening balances 449,935,200 658,089,549 371,862,754 754,994,398 259,143,496 2,494,025,397

Adjustment for depreciation on

revalued assets-2013 - - - (60,356,411 ) 60,356,411 -

Adjustment for deffered tax - - - 33,728,704 - 33,728,704

Total comprehensive income during 491,707,486 491,707,486

the year - - - -

cash dividend paid-2012 - - - - (89,987,040) (89,987,040)

Closing balances 449,935,200 658,089,549 371,862,754 728,366,691 721,220,353 2,929,474,547

The annexed notes 1 to 37c.( Engr. Rezaul Karim)

Chairman

.- ( Newo, MOhlfl~'Uf)Company Secretary

( Rupam Kishore Barua )Managing Director

4

Rahman Mostafa Alam & Co.Chartered Accountants

CONFIDENCE CEMENT LIMITEDStatement of Cash flowsAs at 31 December 2013

2013 2012Taka Taka

CASH FLOW FROM OPERATING ACTIVITIES:Collection from cusromers 3,343,977,159

Payment to suppliers,employees & other 2799847350

Cash generated from operations 544,129,809

Receipts from other income 35,077,508 24,946,725

Income tax paid (110,315,032) (56,347,151)

Net cash generated by operating activities 468,892,285 27,298,206

CASH FLOW FROM INVESTING ACTIVITIES:Proceeds on sale of financial assets 7,014,000 72,000

Payment for acquire financial assets (225,133,899) (99,249,082)

Payment for capital work in progress (20,299,185) (87,968,269)

Investment in Fixed Deposits (30,027,845)

Share purchased in listed companies (10938583

Net cash (used in)/generated by investing activities (268,446,929) (198,083,934)

CASH FLOW FROM FINANCING ACTIVITIES:Proceeds from Long Term Borrowing 26,069,292 43,078,043

.: Proceeds from Short term Borrowing 15,221,661 259,306,211

Proceeds from Current portion of long term loan borrowing 4,472,291

Payments for financial expenses (100,906,479) (81,698,612)

Dividend paid to shareholders of the Company (80320483) (66306837'

Net cash (used in)/generated by financing activities (135,463,718) 154,378,805

INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS

43,105,373

64,981,638

OPENING CASH AND CASH EQUIVALENTS

CLOSING CASH AND CASH EQUIVALENTS 108,087,011

The annexed notes nto 37 form an Integral part of.these fina •

( Engr. ~arim ) ( Rupam Kishore BaM)Chairman Managing Director

(16,406,923)

59,512,296

43,105,373

(New., MO~OU"'f)Company Secretary

Signed in terms of our separate report of even date annexed

5

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