CONTENTS Report-2011.pdf · Founder Chairman and Managing Director Late Al-Hajj Ansar Uddin Ahmed 1922-2005 Page-2

STANDARD CERAMIC INDUSTRIES LTD.

ANNUAL REPORT 2011

CONTENTS

Page # 1. Corporate Directory. 3

2. Notice of Annual General Meeting. 4

3. Five years Financial Statistics. 5

4. Sales Distribution. 6

5. Directors' Report. 7-9

6. Corporate Governance Compliance Report. 10

7. cwiPvjK cl©‡ì cÖwZ‡e`b (evsjvq) 11-13

8. Auditors' Report. 14

9. Statement of Financial Position. 15

10. Statement of Comprehensive Income. 16

11. Statement of Cash Flows. 17

12. Statement of Changes in Equity. 18

13. Notes to the Financial Statements. 19-29 & 31

14. Ratio Analysis. 30

15. Proxy Form & Attendance Slip. 32

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Founder Chairman and Managing Director Late Al-Hajj Ansar Uddin Ahmed

1922-2005

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STANDARD CERAMIC INDUSTRIES LTD. 62-63 Motijheel C/A, Dhaka.

Corporate Directory

BOARD OF DIRECTORS

Mr. Helal Uddin Ahmed Managing Director

Mr. A.K.M. Jahangir Khan Director

Mr. Lutfur Rahman Director

Mr. Nasir Uddin Ahmed Director

Mr. Enamul Maqsud Operative Director

Mr. A.K.M Alamgir Khan Director

Dr. Khalid Bin Islam Director

Mr. Ghazi N. Abedin

Director Mr. A.Z.M Nazrul Haque

Independent Director

Auditors : M/s. HUDA HOSSAIN & Co. Chartered Accountants 230, New Elephant Road, Dhaka-1205. Company Secretary : Jamal Uddin Bhuiyan. Page-3

STANDARD CERAMIC INDUSTRIES LTD. Head Office: Amin Court (3rd Floor) Registered Office: 62-63 Motijheel C/A, Dhaka- 1000. 372/A, Dilu Road, Moghbazar, Dhaka.

Notice of the Twenty Seventh Annual General Meeting

Notice is hereby given that the 27th Annual General Meeting of Standard Ceramic Industries Ltd. will be held on Tuesday the 27th December 2011 at 10:00 A.M. at the Factory premises of the Company at Saydana, K.B. Bazar, Joydevpur, Gazipur-1700 to transact the following business:

AGENDA 1. To confirm the proceedings of the 26th Annual General Meeting held on 28th December 2010. 2. To receive, consider and adopt Audited Accounts for the year ended on 30th June, 2011 and Auditor's report and

Director's reports thereon. 3. To declare dividend for the year ended 30th June 2011. 4. To elect Directors in place of those retiring by rotation. 5. To appoint Auditors of the company for the year 2011-2012 and to fix up their remuneration. 6. To approve enhancement of Directors meeting fees. 7. To transact any other business which may be transacted at an Annual General Meeting with the permission of

the Chair. By order of the Board of Directors Dated: 03-11-2011 Sd/- (Jamal Uddin Bhuiyan) Company Secretary. N.B: a) October 25, is the Record Date .Shareholder whose names will appear in the Members Register of the company

or in the Depository Register on Record Date will be eligible to attend the Annual General Meeting and receive dividend.

b) A member entitled to attend and vote at the General Meeting may appoint a proxy to attend and vote in his/her behalf. The proxy form, duly stamped, must be deposited at the Head Office of the Company not later than 48 hours before the time fixed for the meeting.

c) Admission to the venue of meeting shall be allowed only on presentation of the attendance slip sent with the Annual Report.

d) Queries on the Annual Report may be sent to the Head Office, 72 hours before the time fixed for the meeting.

Page- 4

STATISTICAL PERFORMANCE OF LAST FIVE YEARS

Position Statement

Tk./000 Items As at 30 June 2011 2010 2009 2008 2007 Fixed Assets 111,756 113,824 105,682 110,300 114,621

Preliminary expenses & Public Issue Exp. 4,607 4,607 4,607 4,607 4,607

Net Current assets (12,049) (15,340) (7,032) (6,255) (8,956) Total Assets 104,314 103,091 103,257 108,652 110,272 Paid-up-Capital 64,607 61,530 58,600 58,600 58,600 Revenue Reserves and surplus 13,132 12,198 11,976 17,910 24,869 Capital reserve 26,384 26,384 26,384 26,384 26,384 Total equity 104,123 100,112 96,960 102,895 109,853 Long Term Loan 191 2,979 6,297 5,757 419 Total debt + equity 104,314 103,091 103,257 108,652 110,272 Earning Statement Items For the year ended 30 June 2011 2010 2009 2008 2007 Sales 210,283 172,586 110,755 106,049 163,673 Less Cost of goods sold (168,150) (138,866) (92,264) (90,927) (134,101) Gross profit 42,133 33,720 18,491 15,122 29,572 Less: Administrative and Selling expenses (30,087) (23,809) (17,558) (17,785) (18,969) Interest charges /write off (4,029) (4,754) (4,405) (4,295) (3,925) Other income 0 324 468 - - (34,116) (28,239) (21,495) (22,080) (22,894) Net Profit/(Loss) 8,017 5,481 (3,004) (6,959) 6,678 Contribution of WPPF (382) (274) 0 - (334) 7,635 5,207 (3,004) - 6,344 Less Provision for Tax (3,625) (2,055) 0 - (1,903) Ratained profit/(Loss) 4,010 3,152 (3,004) - 4,441 Transfered from Tax holiday reserve 0 0 0 - 2,225 Unappropriated Profit b/d (6,592) (9,743) (6,739) 219 (587) Proposed Devidend 0 0 0 0 (5,860) Unappropriated Profit (Loss) c/d (2,582) (6,592) (9,743) (6,739) 219

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SALES DISTRIBUTION

Page-6

3.81% Net Profit

1.92% Financial

14.31% Admin & Selling etc.

79.96% Cost of Goods



2008



2009

2.99% Net Profit

2.75% Financial



2011

2010

STANDARD CERAMIC INDUSTRIES LTD. Amin Court (3rd Floor), 62-63, Motijheel C/A,

Dhaka- 1000, Bangladesh.

DIRECTORS’ REPORT AT THE TWENTY SEVENTH ANNUAL GENERAL MEETING.

Dear Shareholders, We, on behalf of the Board of Directors, feel privileged to welcome you to the 27th Annual General Meeting of your Company and have the pleasure in presenting before you the Annual Report together with audited financial statements for the year ended 30th June 2011. General Economics & Environmental Situation: Bangladesh has experienced high growth of cost of living. Capability of international competitiveness of Bangladeshi exporters of ceramic products has decreased due to increase of cost of production of imported raw materials and ability of Chinese Exporters to Supply Ceramic products in international market at lower price. Consequently our export sales came down to an alarming stage. In the local market, we were able to improve our sales by lowering sales rate. our gross profit ratio has been adversely affected. State of Company's Affairs : Turnover amounted to taka 210.28 million in the year 2010-2011 as against taka 172.59 million in the year 2009-2010 showing an increase of taka 37.69 million. The gross profit for the year was taka 42.13 million as against taka 33.72 million of the previous year showing an increase of 0.50% only. The gross profit ratio could not increase sufficiently as expenses increased to a greater extent for high rate of local and imported raw materials, implementation of special allowance, increase of daily worker wages etc. Particulars Figure in Thousand (‘000) Tk. 2010-2011 2009-2010 Net Profit/(Loss) before Tax etc. 8,017 5,481

WPPF (382) (274) Provision for tax (3,625) (2,056) Net Profit /(Loss )after Tax etc. 4,010 3,151 Less: Previous years Accumulated Profit/(Loss) (6,592) (9,743) Accumulated Profit / (Loss) (2,582) (6,592)

Contribution to National Exchequer: Your company contributed a total amount of taka 37.03 million to the National Exchequer in the form of Custom duty, AIT, VAT, except gas, electricity etc, during the year under report. Dividend Despite the fact that the Company has a total accumulated loss of taka 6.59 million which lowered our reserve position, the Company earned a net profit of taka 4.01 million during the year. If accumulated loss is adjusted against the net profit, the reserve position will improve. On the other hand, the shareholders could not get expected dividend. In this situation the Board of Directors has recommended from this year's profit taka 5.00. (Taka Five) per share as dividend for all the shareholders. Page-7

Retirement of Directors and their Re-election : (1) Mr. AKM Alamgir Khan (2) Mr. AKM Jahangir Khan and (3) Mr. Lutfur Rahman Directors of the company who retire by rotation as per Article 44 of the Articles of Association of the Company and being eligible offer themselves for re-election. Corporate & Financial Reporting : The Company has complied most of the requirements of Corporate Governance as required by the Securities and Exchange Commission. Accordingly, the Directors are pleased to confirm the following: (a) The Financial Statements together with the notes thereon have been drawn up in conformity

with the Companies Act 1994 and Securities and Exchange Rules 1987. These statements present fairly the Company's state of affairs, the results of its operations, cash flow and changes in equity.

(b) Proper books of accounts of the Company have been maintained. (c) Appropriate Accounting Policies have been consistently applied in the preparation of

financial statements and the accounting estimates are based on reasonable and prudent judgment.

(d) The International Accounting Standards, as applicable in Bangladesh, have been followed in the preparation of financial statements.

(e) The systems of internal control are sound and have been effectively implemented and monitored.

(f) There are no significant doubts upon the Company's ability to continue as a going concern. (g) The key operating and financial data for the last five years is annexed. (h)The Profitability of the company has increased due to installation of 16" dia gas line replacing old 6" dia gas line. (i)Board Meetings and Attendance : The Board of Directors consisted of 9 members at present and during the year four Board meetings were held. j. The attendance record of the Directors is as follows: Sl # Name of the Directors Meeting attended Reason for non

attendance 01. Mr. Helal Uddin Ahmed 4 02. Mr. A.K.M. Jahangir Khan 4 03. Mr. Lutfur Rahman 4 04. Mr. Ghazi Nurul Abedin 1 Leave 05. Mr. Enamul Maqsud 4 06. Mr. Nasir Uddin Ahmed 4 07. Mr. A.K.M. Alamgir Khan 4 08. Mr. A.Z.M Nazrul Haque 4 09. Mr. Khalid Bin Islam 2 Leave

The Directors not attending the meetings were granted leave of absence. Page-8

(k)The pattern of shareholding is as follows:

Sl # Namewise details Shares held 01. Mr. Helal Uddin Ahmed, Managing Director 37,130 02. Mr. Lutfur Rahman, Director 37,130 03. Mr. Nasir Uddin Ahmed, Director 37,130 04. Mr. A.K.M. Jahangir Khan, Director 22,545 05. Mr. Enamul Maqsud, Director 20,396 06. Mr. Gazi Nurul Abedin, Director 1,052 07. Dr. Khalid Bin Islam, Director 5,243 08. Mr. A.K.M Alamgir Khan, Director 25,908 09. Mr. A.Z.M Nazrul Haque (Independent Director) nil 10. Mr. Jamal Uddin Bhuiyan (CFO & CS) 52 11. Mr. Abdur Rahim (Internal Auditor) nil Executives: 12. Mr. Md. Abu Taher 1 13. Mr. Mushfiqure Rahman 19 14. Mr. Mustafizur Rahman 1 15. ICB, Unit Fund 1,06,363

Corporate Governance Compliance Report : In accordance with the requirement of the Securities and Exchange Commission, "Corporate Governance Compliance Report" is annexed. Appointment of Auditors : M/s. Huda Hossain & Co, Chartered Accountants shall retire in this AGM. The Firm, being eligible, they offer themselves for re-appointment for the financial year 2011-12. Accordingly the Board of Directors recommended that M/s. Huda Hossain & Co. Chartered Accountants, be appointed as Auditors for the financial year 2011-2012 subject to the approval of the shareholders in the AGM with Tk57,500/-as their remuneration. Acknowledgement : We, on behalf of the Board of Directors of the company, express our sincere gratitude and thanks to all the respected Shareholders, Investors, Banks, Financial Institutions, Securities & Exchange Commission, Stock Exchanges, ICB, Government Agencies, News & Press Media, Suppliers, Customers and employees of the company for their continued support & co-operation. Conclusion : Finally, we, on behalf of the Board of Directors express our deep appreciation to all workers, Staff and Officers, both in the Head Office and Factory for their dedicated hard work rendered during the year and hope that they will continue to maintain spirit of team work in the coming years for the continued growth of the Company.

On behalf of the Board of Directors. Sd/- Sd/- Dhaka (Enamul Maqsud ) (Helal Uddin Ahmed) 16 Oct, 2011 Operative Director Managing Director

Page-9

Corporate Governance Compliance Report Status of compliance with a conditions imposed by the Commission's Notification No. SEC/CMRRCD/2006-158/Admin/02-08 dated 20th February 2006.

(Report under Condition No. 5.00)

Condition No.

Title Compliance status (Put in the appropriate

column)

Explanation for non-compliance with the

condition. Complied Not

complied 1.1 Board's Size

1.2(i) Independent Directors

1.2(ii) Independent Directors Appointment. 1.3 Chairman & Chief Executive Since it is "Preferable"

1.4(a) Directors Report on Financial Statement 1.4(b) Books of Account 1.4(c) Accounting Policies 1.4(d) IAS Applicable in Bangladesh 1.4(e) System of Internal Control 1.4(f) Going Concern 1.4(g) Deviations in Operating Results 1.4(h) Key Operating and Financial Data 1.4(i) Declaration of Dividend 1.4(j) Number of Board Meetings 1.4(k) Pattern of Shareholdings

2.1 CFO, HIA & CS Appointment CFO & CS : DGM (A & F) acting as CFO & CS

2.2 Board Meeting Attendance 3.00 Audit Committee 3.1(i) Composition of Audit Committee 3.1(ii) Audit Committee Members Appointment 3.1(iii) Terms of Service of Audit Committee 3.2(i) Chairman of Audit Committee 3.2(ii) Audit Committee Chairman's Qualification

3.3.1(i) Reporting to the Board of Directors 3.3.1(i)(a) Report of conflicts of Interest No such incidence 3.3.1(i)(b) Defect in the Internal Control System Do 3.3.1(i)(c) Suspected infringement of laws Do 3.3.1(i)(d) Any other matter Do

3.3.2 Reporting to the Authorities Do 3.4 Reporting to the Shareholders Do

4.00(i) Appraisal or Valuation Services 4.00(ii) Financial information System 4.00(iii) Book keeping or other services 4.00(iv) Broker dealer services 4.00(v) Actuarial Services 4.00(vi) Internal audit services 4.00(vii) Any other services

Page-10

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HUDA HOSSAIN & CO. CHARTERED ACCOUNTANTS

230, New Elephant Road (4th Floor) Dhaka-1205 Ph: 8614329, 8620590

AUDITORS' REPORT

TO THE SHAREHOLDERS Of

STANDARD CERAMIC INDUSTRIES LTD

We have audited the accompanying Statement of Financial Position of "STANDARD CERAMIC INDUSTRIES LTD." as of 30th June, 2011 and the related Statement of Comprehensive Income and Statement of Changes in Shareholders Equity and Statement of Cash Flows for the year then ended and significant accounting policies together with annexed notes. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit. Scope: We conducted our audit in accordance with Bangladesh Standards on Auditing (BSA).Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of 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 the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. Opinion: In our opinion, the financial statements prepared in accordance with Bangladesh Financial Reporting Standards (BFRS) and Bangladesh Accounting Standards (BAS), give a true and fair view of the state of Company's affairs as of 30th June, 2011 and of the results of its operations and its cash flows for the year then ended and comply with the applicable sections of the Companies Act, 1994 and the Securities and Exchange Rules, 1987 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 the purpose 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 our examination of those books; c) the company’s Statement of Financial Position and Statement of Comprehensive Income dealt with by

the report are in agreement with the books of account; and d) the expenditure incurred was for the purposes of the company's business. Dhaka October 20, 2011

Sd/- HUDA HOSSAIN & CO. Chartered Accountants

Page-14

Amount in TakaASSETS NOTES 30/06/11 30/06/10Non Current AssetsP roperty, P lan t & E qu ipm ent 2 .00 111,755,431 113,824,517 P re lim inary & P ub lic Issue E xpenses 3.00 4,606,694 4 ,606,694

116,362,125 118,431,211 Current AssetInventories 4 .00 75,543,574 92 ,214,272 C la im rece ivab le 5 .00 19,781,085 19 ,781,085 A dvances, depos its & pre-paym ents 6 .00 8,356,932 10 ,931,289 S hort T erm Investm ent 2 ,700,000 - C ash & C ash E qu iva len ts 7 .00 7,234,602 988,659

113,616,193 123,915,305 Total Assets 229,978,318 242,346,516

EQUITY & LIABILITIESShareholder's equity:S hare C ap ita l 8 .00 64,606,500 61 ,530,000 R eserve & S urp lus 9 .00 39,515,540 38 ,582,124

104,122,040 100,112,124 Non Current LiabilitiesLong T erm Loan 10.00 191,442 2,978,854 Current LiabilitiesC ash C red it (S ecured) 11.00 21,885,806 25 ,243,455 C urren t portion o f Long T erm Loan 12.00 2,796,941 3 ,301,105 B ank O verdra ft 13 .00 354,305 1 ,369,573 D irec tors ' & o ther loan 14.00 352,251 1 ,227,251 L iab ilities fo r expenses 15 .00 33,316,486 35 ,208,324 L iab ilities fo r o ther finance 16 .00 66,959,047 72 ,905,830

125,664,836 139,255,538 Total Shareholders' Equity & liabilities 229,978,318 242,346,516 N A V per share 154.03 155.22

D haka-1000.20-10-2011

Sd/- Sd/-(Jamal Uddin Bhuiyan) (Helal Uddin Ahmed)

C om pany S ecre tary D irec tor

Sd/-

P age-15 (Chartered Accountants)

Huda Hossain & Co.

M anag ing D irec tor

Sd/-

AS ON 30TH JUNE, 2011

( A.K.M. Jahangir Khan)

T he annexed notes 1 to 37 fo rm an in tegra l part o f these financ ia l s ta tem ents .T hese financ ia l s ta tem ents w ere approved by the B oard o f D irec tors on15 O ctober 2011 and w ere s igned on its beha lf by:

A s per report o f even da te annexed

STATEMENT OF FINANCIAL POSITION

STANDARD CERAMIC INDUSTRIES LTD."A M IN C O U R T ", 62-63 M O T IJH E E L C /A ,

D H A K A -1000.

Amount in Taka01/07/10 01/07/09

to toNOTES 30/06/11 30/06/10

Revenue 18.00 210,283,278 172,586,011

Less: C ost o f G oods S o ld 19 .00 168,150,181 138,866,175 Gross Profit 42,133,097 33,719,836 20.036 Operating Expenses: 34,116,222 28,562,181

Less:A dm in is tra tive & S e lling E xpenses 20.00 30,087,052 23 ,808,625 Less: F inanc ia l E xpenses 4,029,170 4 ,753,556

Operating Profit/(Loss) 8,016,875 5,157,655

A dd: O ther Incom e - 323,974

Net Profit / (Loss) 8,016,875 5,481,629

Less:C ontribu tion to W orkers P .P artic ipa tion Fund 381,756 274,082

Net Profit / (Loss ) before Tax 7,635,119 5,207,547

3,625,203 2 ,055,611

Net Profit/(Loss) after Tax 4,009,916 3,151,936

Less:Accumulated Profit / (loss) as per last account b/f 6,591,737 9,743,673

Retained Earnings (2,581,821) (6,591,737)

Earning per share(EPS) 6.21 4.88

D haka-1000.20-10-2011

S d/-(Jamal Uddin Bhuiyan)

C om pany S ecre tary

P age-16

Less: Incom e T ax E xpenses 21 .00

(Chartered Accountants)

As per report of even date annexed

Sd/-

D irec tor

Sd/-Huda Hossain & Co.


D H A K A -1000.

M anag ing D irec tor

Sd/- (Helal Uddin Ahmed)

STATEMENT OF COMPREHENSIVE INCOMEFOR THE YEAR ENDED 30TH JUNE, 2011

( A.K.M. Jahangir Khan)

T he annexed notes 1 to 37 fo rm an in tegra l part o f these financ ia l s ta tem ents . T hese financ ia l s ta tem ents w ere approved by the B oard o f D irec tors on 15 O ctober 2011 and w ere s igned on its beha lf by:

Amount in TakaCASH-FLOW FROM OPERATING ACTIVITIES 2010-11 2009-10

R ece ip ts from custom ers and o thers 247,057,681 214 ,151,105 P a id to supp lie rs , em ployees & o thers (215,668,587) (185,251,447) In te rest pa id (4 ,029,170) (4 ,753,556) Incom e T ax pa id (3 ,296,250) (801,508) N et cash in flow from opera ting activ ities 24,063,674 23 ,344,594

Cash Flow from investing activities.

A cqu is ition o f F ixed A ssets (6 ,315,600) (16 ,749,306) S hort T erm Investm ent (2 ,700,000) - N et cash ou tflow from investing activ ities (9 ,015,600) (16 ,749,306)

Cash Flow from Financing activities.C ash C red it Loan (P a id)/R ece ived (3 ,357,649) (2 ,953,224) Long T erm Loan (2 ,787,412) (3 ,318,420) C urren t portion o f long te rm loan (504,164) 517,461 N et D ividend pa id (262,638) (132,997) D irectors & O ther Loan (P a id)/R ece ived (875,000) (1 ,725,116) B ank O /D (P a id)/R ece ived (1 ,015,268) 370,363 N et cash ou tflow from financing activ ities (8 ,802,131) (7 ,241,933)

N et increase/(decrease) in C ash & C ash E qu iva len ts 6 ,245,943 (646,645)

C ash and C ash equ iva len ts a t beg in ing 988,659 1 ,635,304

Cash and Cash equivalents at end 7,234,602 988,659

D haka-1000.20-10-2011

S d/- S d/-(Jamal Uddin Bhuiyan) (Helal Uddin Ahmed) C om pany S ecre tary M anag ing D irec tor

A s per report o f even da te annexed

P age # 17

(A.K.M. Jahangir Khan)D irec tor

(Chartered Accountants)

S d/-Huda Hossain & Co.

S d/-


D H A K A -1000.

STATEMENT OF CASH FLOWSFO R TH E YE A R E N D E D 30TH JU N E , 2011


PARTICULARS SHARECAPITAL

REVALUATION& TAX HOLIDAY

RESERVE

SHAREPREMIUM

RETAINEDEARNINGS TOTAL

As at July 1, 2010 61,530,000 30,523,861 14,650,000 (6,591,737) 100,112,124

Addition during the year 3,076,500 (3,076,500) - 4,009,916 4,009,916 As at June 30, 2011 64,606,500 27,447,361 14,650,000 (2,581,821) 104,122,040

PARTICULARS SHARECAPITAL

REVALUATION& TAX HOLIDAY

RESERVE

SHAREPREMIUM

RETAINEDEARNINGS TOTAL

As at July 1, 2009 58,600,000 33,453,861 14,650,000 (9,743,673) 96,960,188

Addition during the year 2,930,000 (2,930,000) - 3,151,936 3,151,936 As at June 30, 2010 61,530,000 30,523,861 14,650,000 (6,591,737) 100,112,124

D haka-1000.20.10 .2011

S d/- S d/-(Jamal Uddin Bhuiyan) (Helal Uddin Ahmed)

C om pany S ecre tary M anag ing D irec torA s per report o f even da te annexed

P age # 18


D H A K A -1000.


(C harte red A ccountants)

FOR THE YEAR ENDED 30TH JUNE, 2011STATEMENT OF CHANGES IN EQUITY

S d/-( A.K.M. Jahangir Khan)

D irec tor

FOR THE YEAR ENDED 30TH JUNE, 2010

S d/-Huda Hossain & Co.

1.01 (A) Structure and Objects:

(B)

(C)

(D)

(E)

(F)

1.02 Significant Accounting Policies:

(A)

(B)

(C)

P age-19

Compliance with Auditing and Accounting Standards :T he financ ia l s ta tem ents com plied w ith the requ irem ents o f the B ang ladesh S tandard o f A ud iting (B S A 's) and B ang ladesh A ccounting S tandand (B A S 's) as fo r as app licab le .

FOR THE YEAR ENDED 30TH JUNE 2011

STANDARD CERAMIC INDUSTRIES LTD.NOTES TO THE FINANCIAL STATEMENTS

Recognition of Property, Plant & Equipment and Depreciation:P roperty, P lan t & E qu ipm ent a re s ta ted a t cos t less accum ula ted deprec ia tion in accordance w ith IA S 16 "P roperty, P lan t & E qu ipm ent". C ost represents cost o f acqu is ition o f construc tion and inc lude purchase price and o ther d irec tly a ttribu tab le cost o f b ring ing the assets to w ork ing cond itions fo r its in tended use, bu t do no t inc lude any cap ita lized borrow ing cost. N o. deprec ia tion is charged on land and land deve lopm ent. D eprec ia tion on a ll o ther fixed assets a re com puted us ing the reduc ing ba lance m ethod in am ount su ffic ien t to w rite o ff deprec iab le assets over the ir es tim ated usefu l life . E xpend itu re fo r m a in tenance and repa irs a re expenses; m a jor rep lacem ents , renew als and be tte rm ent a re cap ita lized .

T he com pany is a pub lic lim ited com pany reg is te red on 13-08-84 w ith authorized S hare cap ita l o f T k .10 crores d iv ided in to 10 lac ord inary shares of T k .100.00 each for m anufac ture o f C eram ic S tonew ares & T ab le w ares. In add ition to sponsors , the pro jec t w as in itia lly funded by B S B , IP D C &S A B IN C O . P roduction started in the la te r part o f 1993. A pprova l o f prospectus from S ecurities &E xchange C om m iss ion had been obta ined on 14th S eptem ber, 1996. T he com pany w as lis ted w ithD haka S tock E xchange and C hittagong S tock E xchange on 7th D ecem ber, 1996 and on 4thD ecem ber 1996 respective ly.

Basis of preparation:T hese financ ia l s ta tem ents are prepared as go ing concern under h is to rica l cost convention sub jec t toreva lua tion o f land and land deve lopm ent on 29-02-1996.

Revenue recognition: S ales is recogn ized a t the tim e o f de livery from godow n.

Nature of Business: T he com pany is a ceram ic industry fo r m anufac ture o f ceram ic s tone w ares & tab le w ares fo r loca l & fo re ign m arke ts .

Enclosures of The Financial Statement:(i) S ta tem ent o f F inanc ia l P os ition t as of 30 th June, 2011. (ii) S ta tem ent o f C om prehens ive Incom e forthe year ended 30th June, 2011, (iii) S ta tem ent o f C ash F low s for the year ended 30th June, 2011,(iv)S ta tem ent o f changes in E qu ity fo r the year ended 30th June, 2011 (v) A ccounting po lic ies andexp lanatory no tes .

Comparative Information :C om para tive in fo rm ation have been furn ished in respect o f the year 2009-2010 for a ll num erica ls in thefinanc ia l s ta tem ents and a lso the narra tive and descrip tive in fo rm ation cons idered re levant tounders tand ing of the curren t year financ ia l s ta tem ents .Last years figures have been rearranged toconform those o f curren t year.Compliance with Local Laws :T he financ ia l s ta tem ent have been prepared in com pliance w ith requ irem ents o f the C om panies A ct1994, S ecurities and E xchange R u les 1987 and o ther re levant loca l law s as app licab le .

P age # 18

(D)

(E)

(F)

(G)

(H)

(I)

(J)

(K)

(L)

(M)

P age-20

Reporting Period: F inanc ia l S ta tem ents o f the C om pany cover one year from 1st Ju ly to 30 th June cons is ten tly.

T he cost and accum ula ted deprec ia tion of deprec iab le assets re tired or o therw ise d isposed off a ree lim ina ted from the asssets and accum ula ted deprec ia tion and any ga in or loss or such d isposa l isre flec ted in opera tions fo r the year.T he annua l deprec ia tion ra tes app licab le to the princ ipa l ca tegories arei) B u ild ing & C vil C onstruc tion 7 .5% v) C ar V eh ic les 20%ii) P lan t & M ach inery 10% v i) T oo ls 25% iii) D eep T ubew ell 5% v ii) Furn itu re & F ittings 10%iv) E lec tric E qu ipm ent 10% v iii)O ffice E qu ipm ent 15% D eprec ia tion has been charged to cost o f goods so ld & adm in is tra tive expenses cons is ten tly."

Inventories: T he raw m ateria ls have been va lued at w e igh ted average m ethod. T he fin ished goods have beenva lued under variab le costing m ethod fo llow ing m arg ina l costing techn ique. T he w ork -in -process havebeen va lued at cost o f m ateria ls w ith proportion of e lec tric ity & gas and fac tory overhead absorbed inproduction .

Others: (i) A m ount appearing in these sta tem ents are rounded off to the nearest taka . (ii) T hese notes form anin tegra l part o f the annexed sta tem ents and accord ing ly are to be read in con junction therew ith . (iii)W herever cons idered necessary, previous year's phrases and figures have been rearranged toconform to the curren t year's c lass ifica tion .

Foreign Exchange: T ransactions in fo re ign currenc ies are converted in to T aka currency a t ra tes preva iling on the transaction da tes .

Earning per Share: T he com pany ca lcu la tes earn ings per share is T k .6 .21 aga ins t the previous yearT k .4 .88 in 2009-2010in accordance w ith the In terna tiona l A ccounting S tandards (IA S )-33 "E arn ing per share" as adopted bythe Ins titu te o f C harte red A ccountants o f B ang ladesh (IC A B ).

Related Party: T he C om pany does not have any transactions, w h ich requ ire to be d isc losed under re la ted partyd isc losure .

Statement of Cash Flows : S ta tem ent o f C ash F low s has been prepared as per requ irem ent o f (IA S )-7 as adopted in B ang ladeshfo llow ing d irec t m ethod as requ ired by the S E C .

Revenue (Turnover): T urnover a re s ta ted a t ne t va lue .

Retirement benefits : R etirem ent benefits a re incorpora ted on paym ent bas is .

Impairment of AssetsT he com pany review s the recoverab le am ount o f its assets a t each reporting da te . If there ex is ts any ind ica tion tha t the carrying am ount o f assets exceeds the recoverab le am ount, the com pany recogn ise such im pa irm ent loss in accordance w ith B A S -36 "Im pa irm ent o f A ssets"

Reporting Currency: T he figures in the financ ia l s ta tem ents represent B ang ladesh T aka C urrency.

Amount in Taka30/06/11 30/06/10

2.00 Property, Plant & Equipment; Tk.111,755,431.D eta ils a re as under:C ost on 01 /07 /2010 291,978,430 275,229,124 A dd ition during the year 6 ,315,600 16 ,749,306

298,294,030 291,978,430 Less: A ccum ula ted D eprec ia tion 186,538,599 178,153,913

111,755,431 113,824,517

3.00I) P ub lic Issue E xpenses

O pen ing B a lance 4,569,369 4 ,569,369 ii) P re lim inary expenses 37,325 37 ,325

4,606,694 4,606,694

4.00 Inventories: Tk.75,543,574. D eta ils a re as fo llow s:

I) R aw M ateria ls (4 .01) 16,280,100 14 ,230,200 ii) W ork -in p rocess 542 19,730,345 39 ,070,700

iiI) F in ished products 295 19,681,605 18 ,694,030 iv) S tores & spares 1,840,100 2 ,405,000 v) S tock o f M ou ld & S agger 813 18,011,424 17 ,814,342

75,543,574 92,214,272

4.01 Detail of raw materials: (Figures are rounded up to MT)

Particular UnitBody & glaze

Decoration materials

TotalQuantity

Opening stock M.ton 1,574 13,734,117 Sheet 5,226 496,083

A Total 14,230,200 Purchase M.ton 5,674 49,827,230

Sheet 185,084 14,386,470 B Total 64,213,700 A+B Total 78,443,900

Issued forproduction M.ton 5,569 48,229,724

Sheet 178,622 13,934,076 C Total 62,163,800

Closing Stock M.ton 1,679 14,992,351 Sheet 11,688 1,287,749

[A+B]-C 16,280,100 Page-21

T hese are defered revenue expend itu re & w ill be w ritten off g radua lly w hen suffic ien t pro fit w ill beava ilab le fo r am ortiza tion .

T he i)inventories( R aw m ateria ls ) on 30-06-11 w as taken and certified by the m anagem ent and va lued a t cos t.ii) W ork -in -process have been va lued a t cos t o f raw m ateria ls w ith p roportion o f e lec tric ity, gas and fac tory overhead absorbed in p roduction . iii)F in ished products va lued a t rea lizab le p rice and iv)spare parts a t cos t. Inventories w ere m ortgage to R upa li B ank L td , R am na corpora te branch as security o f w ork ing cap ita l.

TotalValue inTk.

Qty in M.ton

A ddition o f fixed asset represents a re m ajor repa irs and rep lacem ent o f fac to ry bu ild ing and p lan t & M ach inary, P ick up reg is tra tion and body m ade,M ajor repa irs o f genera tor, fu rn itu re and fix tu re purchase e tc .

Preliminary and Public Issue Expenses: Tk.4,606,694.

Amount in Taka30/06/11 30/06/10

5.00 Claim Receivable :Tk.19,781,085 19,781,085 19,781,085

6.00 Advance Deposits & Pre-payment:Tk.8,356,932 .I) A dvances 1 ,087,442 1 ,843,546 ii) S ecurity depos its 2 ,829,506 2 ,407,706 iii) A dvance Incom e T ax 2 ,061,885 4 ,225,996 iv) B ank M arg ins 2 ,265,182 1 ,649,482 v) V A T (V a lue A dded T ax) 112,917 804,559

8,356,932 10,931,289 I) Advances: Tk.1,087,442.

a) A dvance aga ins t w orks 1,060,039 1 ,739,563 b ) A dvance T rave l & T ours 4 ,578 4 ,578 c ) A dvance aga ins t S a laries 22,825 22 ,825 d ) A dvance ren t aga ins t S a les & D isp lay centre - 76 ,580

1,087,442 1,843,546 ii) Security deposits: Tk.2,829,506.

T & T B oard 145,025 143,025 P D B 253,800 253,800 B ang ladesh O xygen L td . 8 ,000 8 ,000 A m in M oh iudd in Foundation 811,800 592,000 T itas G as T ransm iss ion & D is tribu tion C o. L td . 1 ,408,276 1 ,408,276 Lease D epos it (U .L .C . L td .) 2 ,605 2 ,605 C D B L 200,000 -

2,829,506 2,407,706

iii) Advance Income-Tax: Tk.2,061,885.a) O pen ing ba lance 4 ,225,996 3 ,424,488 b ) A dd ition during the year 3 ,296,250 801,508

A d jus tm ent (5 ,460,361) - Total 2,061,885 4,225,996

iv) Bank Margins:TK.2,265,182.L/C M arg in 1 ,680,000 1 ,064,300 B ank G uarantee M arg in (aga ins t T itas G as ) 585,182 585,182

2 ,265,182 1 ,649,482

v) VAT (Value Added Tax) :Tk.112,917.O pening B a lance 804,559 541,285 A dd: C ash D epos it/V at on raw m ateria ls e tc . 30 ,634,446 26 ,090,391

31,439,005 26,631,676 Less: A d jus tm ent 15% on loca l S a le (31 ,326,088) (25 ,827,117) Closing Balance 112,917 804,559

a) T he C om pany has no advances w h ich m ay be c lass ified as doubtfu ll/bad.b) N o am ount w as due by the D irec tors (inc lud ing M anag ing D irec tor) and o fficers o f the C om pany or any o f them severa lly o r jo in tly w ith any o ther person.c) N o am ount w as due by the A ssoc ia ted under-tak ing .

P age-22

T he Factory has been devasta ted by to rnado on 7 th M ay, 1991. T he c la im adm itted by the Janata Indsurance C o. L td . T k . 3 ,97 ,81 ,085 from w h ich T k . 2 ,00 ,00 ,000 rea lised and ba lance has been carry fo rw arded w ithout any ad jus tm ent.

Amount in Taka7.00 Cash & Cash Equivalents:Tk.7,234,602. 30/06/11 30/06/10

a) C ash in hand: T k .603,972 .I) H ead O ffice 597,074 196,995 ii) Factory O ffice 4 ,898 4 ,898 iii) S a les & D isp lay C entre 2 ,000 2 ,000

603,972 203,893 b) Cash at Bank: Tk.6,630,630.

I) A gran i B ank , A m in C ourt B ranch 9 ,732 9 ,732 ii) A gran i B ank , D haka S hera ton H ote l B ranch 1,444 1 ,444 iii) A gran i B ank , N a litabari B ranch, S herpur. 1 ,000 1 ,000 iv) B D B L A /C N o. 113303653 1,743 1 ,743 v) S ona li B ank , M otijhee l B ranch. A /C N o.15609 240 240 v i) U C B L, M otijhee l B ranch 451 451 v ii) C ity B ank L td ., S T D A /C .no-7003 17,444 18 ,019 v iii) R upa li B ank L td . F /C A /C 14,012 5 ,502 ix ) IF IC B ank L td ., S T D A /C 6,657 6 ,657 x ) IF IC B ank L td .C /D A /C 951 951 x i) S tandard C harte red B ank 3,952,312 - x ii) A B B ank L td ., P ric ipa l B ranch, D haka. 120,563 22 ,134 x iii) C ity B ank L td ., S T D A /C .no-7001 17,863 18 ,438 x iv) C ity B ank L td ., S T D A /C .no-7002 16,074 16 ,649 xv) R upa li B ank L td . M otijhee l B r. 3 ,552 3 ,552 xv i) R upa li B ank L td . E lephant R d. B r. 3 ,780 2 ,198 xv ii) C ity B ank L td ., S T D A /C .no-5001 4,541 5 ,116 xv iii) C ity B ank L td ., S T D A /C .no-7004 1,760,022 670,940 x ix ) C ity B ank L td ., C D A /C - 5283 251,856 - xx) R upa li B ank T ong i b r.C /D A /C 441,393 - xx i) S outheast B ank , P rinc ipa l B r. 5 ,000 -

6 ,630,630 784,766 (a+b) 7,234,602 988,659

i) C ash-in -hand has been verified and certified by the M anagem ent.ii) B a lances w ith B anks are confirm ed by the certifica te .iii)

8.00 Share Capital: Tk. 64,606,500.(a) Authorized Capital: Tk. 100,000,000

10,00,000 O rd inary share o f T aka 100.00 each 100,000,000 100,000,000 (b) Issued, Subscribed & Paid-up Capital:

646,065 O rd inary shares o f T k . 100/= each fu lly pa id up :586,000 ord inary shares o f T k .100 each fu lly pa id up in cash 58,600,000 58 ,600,000 60 ,065 ord inary shares o f T k .100 each issued as 6,006,500 2 ,930,000 fu lly pa id B onus shares 64,606,500 61,530,000 Share holding S ponsors : 308,554 shares o f T k .100/= each 30,855,400 29 ,436,900 P ub lic : 337,511 shares o f T k . 100/= each 33,751,100 32 ,093,100

64,606,500 61,530,000 (c) The Shareholding pattern is as below :

Description No. of No. of Share holding Shareholders Share held %

Less then 500 S hares 7,588 117,954 18 .26 501 to 5000 S hares 77 124,161 19 .22 5001 to 10000 S hares 10 83 ,659 12 .95 10001 to above 9 320,291 49 .57

7,684 646,065 100.00

(d) The position of Shareholders as on 30th June, 2011 is as follows :Description No. of No. of Share holding

Shareholders Shares %S ponsors 43 308,554 47 .76F inanc ia l Ins titu tion 76 57 ,938 8 .97B S R S 1st M utua l Fund 1 1,700 0 .26IC B investor's A /c 320 7 ,415 1 .15O ther Inv.A /c 12 93 0 .01IC B M utua l Fund 9 5 ,029 0 .78IC B A M C L U n it Fund 2 814 0 .13IC B U n it Fund 1 106,363 16 .46G enera l P ub lic 7 ,220 158,159 24 .48

7,684 646,065 100.00P age 23

N on opera tive bank ba lances am ounting to T k .25 ,770 w ere no t reconc illed .

Amount in Taka30/06/11 30/06/10

9.00 Reserve & Surplus Tk.39,515,540.M ake up is as fo llow sR eva lua tion S urp lus 26,383,861 26 ,383,861 T ax ho liday reserve 1,063,500 4 ,140,000 S hare prem ium 14,650,000 14 ,650,000 R eta ined E arn ings (2 ,581,821) (6 ,591,737)

39,515,540 38,582,124

9.01 Revaluation Surplus: Tk. 26,383,861.

9.02 Tax holiday Reserve: Tk.1,063,500. 1,063,500 4,140,000 T he above am ount represents las t year's ba lance a fte r deducting bonus share fo r T k .3 ,076,500.

10.00 Long Term Loan: Tk.191,442.O pening ba lance 2,978,854 6 ,297,274 R epaym ent/ A d jus tm ent (2 ,787,412) (3 ,318,420) B a lance 191,442 2,978,854

11.00 Cash Credit (secured): Tk.21,885,806.I) C ash C red it (H ypo) 7 ,475,868 7 ,490,000 ii) C ash C red it (P ledge) 14 ,409,938 17 ,753,455

21,885,806 25,243,455

12.00 Current portion of Long Term Loan: Tk 2,796,941 . 2,796,941 3,301,105

13.00 Bank Overdraft: Tk.354,305.- 342,738

36 ,317 329,371 C ity B ank L td ., C D A /C - 5283 - 46 ,639 S tandard C harte red B ank - 410,842 U n ited C om m erc ia l B ank , T ong i 317,988 239,983

354,305 1,369,573

14.00 Directors & Others Loan:Tk.352,251. 352,251 1,227,251 T he above am ount represents in te res t free loan w h ich w as taken from D irec tors & o thers .

P age-24

R eva lua tion surp lus represents reva lua tion surp lus aris ing out o f reva lua tion of land & land deve lopm ent o fthe com pany as of 29 Feb, 1996 by M /s . G o lam M osta fa & A ssoc ia tes (pro fess iona l va luers) fo llow ingm arket ra te .

R upa li B ank L td ., T ong i B ranch, C /D a /c ,

T he C om pany is en joying cash cred it fac ilities from R upa li B ank L td ., R am na C orpora te B ranch,D haka. In te res t charge on a ll c red it a t 13% to 14% . A ll the fixed assets ( bo th present and fu tu re) fu rn ished as co lla te ra l and floa ting assets and book debts (bo th present and fu tu re) charged out as prim ary securities .

T h is am ount represents am ount payab le to U n ited Leas ing C o. L td . w h ich w as taken as te rm loan and fo r the purchase o f J iggering M ach ine .S anction am ount 4 .5 , 4 .00 and 2 .62 m illion respective ly. In te res t ra tes are 16 .46% , 16 .50% and 16.35% respective ly, payab le a t 36 , 60 and 48 m onth ly ins ta lm ents from the da te o f d isbursem ent.T h is loan is secured by a portion o f a fixed assets and d irec tors persona l gurantee .

T h is represents the am ount payab le to U n ited Leas ing C o. L td . w h ich w as taken th rough lease fo r veh ic les e tc . A ccord ing to B ang ladesh A ccounting S tandard (B A S ) 1 "P resenta tion o f F inanc ia l S ta tem ent" C urren t portion o f Long T erm Loan tha t a re due fo r se ttlem ent w ith in tw e lve m onths a fte r the ba lance sheet da te are curren t L iab ilities , there fore the above am ount has been show n in curren t L iab ilities .

R upa li B ank L td ., R am na B ranch, C /D a /c ,

Amount in Taka30/06/11 30/06/10

15.00 Liabilities for Expenses:Tk.33,316,486.a) E xpenses:I) M .D 's rem unera tion ( M ay & June 11 ) 200,000 200,000 ii) 5 ,987,660 6 ,843,612 iii) G as b ill ( M ay & June 11 ) 3 ,225,380 3 ,144,297 iv) E lec tric b ill (M ay & June 11 ) 976,656 685,499 v i) A ud it fees 50,000 40 ,000 v ii) W orkers P ro fit P artic ipa tion Fund 655,838 274,082 v iii) P rovidend Fund 16,219,611 16 ,088,417

27 ,315,145 27 ,275,907 b )T rade payab le 6 ,001,341 7 ,932,417 a+b 33,316,486 35,208,324

16.00 Liabilities for other finance:Tk.66,959,047.I) S ecurity m oney (A gency) 202,000 202,000 ii) S ecurity m oney em ploy 420,696 29 ,375 iii) A dvance aga ins t sa les 58,631,340 63 ,718,151 iv) P rovis ion fo r Incom e T ax:

A s per las t A /c - 2 ,785,875 a ) 2010-2011: Incom e T ax 3 ,006,328 2 ,055,611

3 ,006,328 4 ,841,486 v) U npa id D iv idend e tc .(D iv idend w arran ts e tc . 4 ,679,944 4 ,093,299

issued but no t p resented to bank )vi) O thers 18,739 21 ,519

66,959,047 72,905,830

17.00 Proposed dividend:Tk. 3,230,325 3,230,325 3,076,500

P age-25

S alary & O .T ( M ay & June11)

C ons idering the requ irem ents o f B A S -1 , B A S -10 and C om pan ies A ct 1994 d iv idend proposed have been d isc losed in the financ ia l s ta tem ents and no t show n as liab ility.

T he provis ion o f C om pan ies A ct, 1994, requ ires tha t d iv idend s ta ted to be in respect o f period covered by the financ ia l s ta tem ents and tha t a re proposed or dec la red a fte r the S ta tem ent o f F inanc ia l P os ition da te bu t be fore approva l o f the financ ia l s ta tem ents shou ld be e ither ad jus ted or d isc losed.

T he B oard o f D irec tors recom m ended cash d iv idend T k .5 .00(T aka F ive) per share (5% ) fo r the year ended 30th June 2011 a t the B oard M eeting he ld on O ctober 15 , 2011 sub jec t to the shareho lder's approva l a t the fo rth com ing A nnua l G enera l M eeting . T he proposed d iv idend is no t recogn ized as a liab ility a t the S ta tem ent o f F inanc ia l P os ition da te in accordance w ith B ang ladesh A ccounting S tandard (B A S ) 10 "E vents a fte r the S ta tem ent o f F inanc ia l P os ition D ate".

B ang ladesh A ccounting S tandard (B A S ) 1 "P resenta tion o f F inanc ia l S ta tem ents" a lso requ ire tha t the d iv idend proposed a fte r the S ta tem ent o f F inanc ia l P os ition da te bu t be fore the financ ia l s ta tem ents a re au thorized fo r issue, be d isc losed e ither on the face o f the S ta tem ent o f F inanc ia l P os ition as separa te com ponent o f equ ity o r in the no tes to the financ ia l s ta tem ents .

D eferred tax is no t cons idered.

Amount in Taka01/07/10 01/07/09

to to18.00 Revenue:Tk.210,283,278. 30/06/11 30/06/10

Break-up as followsN et Loca l S a les 208,840,587 172,180,798 E xport S a les 1,403,513 395,452 D uty D raw B ack 39,178 9 ,761 Total 210,283,278 172,586,011

19.00 Cost of Goods Sold: Tk.168,150,181. Materials Consumed:S tock on 01-07-10 14,230,200 14 ,540,300 P urchase during the year(-o .in3 ,821408) 64,213,700 46 ,305,121

78 ,443,900 60 ,845,421 Less: S tock on 30-06-11 16,280,100 14 ,230,200

62 ,163,800 46 ,615,221 A dd: W ork -in -p rocess on 01-07-10 39,070,700 39 ,547,360

101,234,500 86 ,162,581 Less: W ork -in -process on 30-06-11 19,730,345 39 ,070,700

81,504,155 47,091,881

Factory Overhead:D irec t w ages & B onus 23 ,50 ,000 33,515,050 32 ,345,016 S a la ry, W ages & B onus 2173430 5,618,473 7 ,700,203 P .F C ontribu tion . 969,917 1 ,030,319 G ra tu ity 550,100 420,100 P ack ing 7,643,149 5 ,935,532 P ow er, W ater & G as 21,759,312 20 ,633,720 Insurance 157,120 123,014 C onsum able s to res 1,643,302 892,920 M isce llaneous fac tory expenses 1 ,619,968 1 ,289,424 R epa irs & M ain tenance 6 ,053,453 4 ,208,707 D eprec ia tion 8,300,839 8 ,520,811

87 ,830,683 83 ,099,766 169,334,838 130,191,647

A dd: S tock o f fin ished products on 01-07-10 18,694,030 27 ,168,400

188,028,868 157,360,047 Less: S tock o f fin ished products on 30-06-11 19,681,605 18 ,694,030

168,347,263 138,666,017 A dd: S tock o f M ou ld and S agger on 01-07-10 17,814,342 18 ,014,500

186,161,605 156,680,517

Less: S tock o f M ou ld and S agger on 30-06-11 18,011,424 17 ,814,342

168,150,181 138,866,175 T ota l p roduction 3,250 M .T on 2 ,750 M .T on G ra tu ity trea ted on cash bas is .

P age-26

Amount in TakaTotal Total

01/07/10 01/07/09to to

30/06/11 30/06/1020.00 Administrative & Selling

expenses: Tk.30,087,052.

D irec tor's E m olum ent 2 ,772,040 2 ,170,000 O ffice S a laries 15 ,50 ,000+1569369 10,873,791 5 ,817,985

P .F . C ontribu tion . 149,505 152,515 G ra tu ity 8 ,00 ,000+1000000 3,781,359 2 ,456,928 T rave lling & C onveyance 1 ,075,370 840,740 B us iness P rom otiona l expenses 818,550 807,433 T rade Fa ir expenses 1 ,862,185 2 ,951,138

R ent, R ates & T axes 1,189,527 1 ,175,070 P ostage, T e legram & T e lephone 409,422 346,546 P rin ting & S ta tionery 685,580 706,497

R e lig ious & Festiva l E xpenses 53,360 370,100

Lega l & P ro fess iona l and O ther fees 265,580 197,500

A ud it fees 50,000 40 ,000

B ank charges 445,977 295,889

Form s & Fees 431,010 348,599 M otor V eh ic les m ain tenance 508,950 401,638 P e tro l, O il & Lubricant 360,540 346,400 O ffice M ain tenance e tc . 130,170 654,486 R esearch & D eve lopm ent E xpenses 390,180 250,500 A G M & o ther m eeting E xpenses e tc 1 ,495,330 1 ,315,810

Forw ard ing expenses 12,655 8 ,000

C arriage ou tw ard 1,750,880 1 ,447,981

E n terta inm ent expenses 180,570 300,315

M isce llaneous expenses 310,674 320,486 D eprec ia tion 83,847 86 ,069

30,087,052 23,808,625

a) M .D .'s R em unera tion w as T k . @ 100,000 per m onth .b)O ffice sa la ries increased due to new recru tm ent,transfer,im p lem enta tion o f spec ia l a llow ance e tc . c ) G ra tu ity trea ted on cash bas is .

P age-27

Amount in TakaTotal Total

01/07/10 01/07/09to to

30/06/11 30/06/1021.00 Income Tax Expenses

Current year tax 3,006,328 2,055,611Shortfall provision of earliar year 618,875 0

3,625,203 2,055,611

22.00 Credit facilities:There was no credit facilities that has not been availed of at the date of Statement of Financial Position.

23.00 Trade Debtors Statement:

24.00 Aggregate amount due by Directors & Officers: There was no such amount in the Statement of Financial Position.

25.00 Claims against the company not acknowledgement as debt:There was no contractual claim against the company not acknowledged as debt.

26.00 Aggregate amount of contracts for capital expenditure:There was no contractor & contract for capital expenditure on 30-06-11.

27.00 Capacity of the industrial unit:

28.00 Auditors Remuneration for auditing:The fees were for audit service only.

29.00 Sales - Item-wise:

30.00

Page-28

The company does not have credit sales. As such usual classification of debtors (good, bad, doubtful, secured/unsecured etc) was not needed.

i) Workers/Employees drawings Tk. 3000.00 or more per month 571 Nos.

ii) Workers & Employees drawing less than Tk. 3000.00 per month nil.

The factory is labour intensive. There are permanent labours as well as daily labours.

Number of employees drawing more than Tk. 3000 & less than Tk. 3000 per month:

The daily labour frequently changes and as such it is not possible to keep correct track by name to count the number annually. However on an average the following is number of workers/employees (permanent, daily).

Installed capacity - 4000 M/Tons. Capacity utilisation for the year was 81 % (Approx).as against 68 %(approx) of the previous year.

The company sells Stonewares under the brand name Classic Stone.

31.00 Expenses incurred in Foreign Currency:

32.00 Value of imported Raw Materials:

33.00 Amount of Foreign Exchange Earned:

34.00 Lease Commitment :The Company has lease commitments amounting to Tk.2,624,994 for Jiggering Machine and payments due within one year amounts to Tk.482,423 . . . .

Amount in Taka35.00 Basic Earnings per Share (EPS) : 30.06.11 30.06.10

Basic earnings per shares has been calculated as follows:Earnings attributable to the Ordinary Shareholders Net Profit/(Loss) after tax 4,009,916 3,151,936 Divided by number of Ordinary Shares outstanding during the year. 646,065 646,065

6.21 4.88

36.00

Page-29

The value of imported raw materials was Tk.44,092,288.

There was no expenses in foreign currency for royalty, technical expert, professional advising fees, interest etc. except imported items of US$ 530,000 Euro 10,988.

D uring the year under review 4 (four) board m eeting and th ree aud it com m ittee m eeting w ere he ld and D irec tors p resent w ere pa id T k . 2 ,000/= per m eeting as B oard M eeting Fee.

Amount of US$ 20,175 was earned during the financial year against export of products.

E P S ( A d jus ted E P S o f 2010)

37.00 Management information:R atio ana lys is : 30 .06 .11 30.06.10 .

N et P ro fit/(Loss)a) N et P ro fit/(Loss) - T urnover ra tio = x 100

S ales4,009,916

= x 100 = 1.91% 1.83%210,283,278

C urren t A ssetsb) C urren t ra tio =

C urren t L iab ilities113,616,193

= = 90.41:100 88.99:100125,664,836

G ross pro fitc ) G ross P ro fit - T urnover ra tio = x 100

S ales42,133,097

= x 100 = 20.04% 19.54%210,283,278

S alesd) T urn-over to ta l A ssets ra tio = x 100

T ota l assets

210,283,278= x 100 = 91.44% 72.59%

229,978,318

Inventorye) Inventory tu rn-over ra tio = x 100

S ales75,543,574

= x 100 = 35.92% 53.43%210,283,278

N et p ro fit/(Loss)g) R eturn on Investm ent ra tio = x 100

N et Investm ent

20-10-2011Sd/-

(Jamal Uddin Bhuiyan) ( A.K.M. Jahangir Khan)C om pany S ecre tary

P age-30

D irec tor

Sd/-

Sd/- Sd/-

D haka-1000.

(C harte red A ccountants)(HUDA HOSSAIN & CO.)

A s per report o f da te annexed

(Helal Uddin Ahmed) M anag ing D irec tor

Balance as at

01-07-10

Additionduring the

year

Sales/Adjustment

Total as at30-06-11

Land and Land development 30,555,601 - - 30,555,601 Building & Civil constructions 75,045,082 1,225,100 - 76,270,182 7.5%Plant & Machinery 169,738,670 3,638,130 - 173,376,800 10%Deep Tube Well 893,594 13,000 906,594 5%Electric Equipment 5,161,857 788,200 - 5,950,057 10%Car & other vehicles 7,069,089 359,870 - 7,428,959 20%Tools 338,065 - - 338,065 25%Office Equipment 1,477,179 197,500 - 1,674,679 15%Furniture & Fixture 1,654,821 93,800 - 1,748,621 10%Other Assets 44,472 - - 44,472 20%

291,978,430 6,315,600 0 298,294,030

Balance as at

01-07-10

Additionduring the

year

Sales/Adjustment

Total as at30-06-11

Land and Land development 0 - - - 30,555,601 Building & Civil constructions 39,427,499 2,763,201 - 42,190,700 34,079,482 Plant & Machinery 130,417,508 4,295,929 - 134,713,437 38,663,363 Deep Tube Well 330,433 28,808 - 359,241 547,353 Electric Equipment 1,477,416 447,264 - 1,924,680 4,025,377 Car & other vehicles 3,940,791 697,634 - 4,638,425 2,790,534 Tools 336,528 384 - 336,912 1,153 Office Equipment 1,137,285 80,609 - 1,217,894 456,785 Furniture & Fixture 1,043,909 70,471 - 1,114,380 634,241 Other Assets 42,544 386 - 42,930 1,542

178,153,913 8,384,686 0 186,538,599 111,755,431

N otes:(a )

M fg A /C & P /L A /C respective ly.

P age-31

D eprec ia tion charged on fixed assets fo r fu ll year.T k .8 ,300,839/= & T k . 83 ,847/=

SCHEDULE OF PROPERTY, PLANT & EQUIPMENT AS AT 30TH JUNE, 2011

(Refer to Note No.2.00)

Particulars

COSTRate of

Depreciation.

STANDARD CERAMIC INDUSTRIES LTD.

"A M IN C O U R T ", 62-63 M O T IJH E E L C /A ,

D H A K A -1000.

Particulars

DEPRECIATION Writtendown value

on 30-06-11

STANDARD CERAMIC INDUSTRIES LTD. Amin Court (3rd Floor), 62-63 Motijheel C/A, Dhaka-1000.

PROXY FORM

I ……………………….................................………………………….……...……………………………………………… of……………………………………...........................……...…………...…………….. being a member hereby appoint Mr./Mrs./Ms. ………………………………..........................……....……...………………………………………………… of …………………………………………………................................……………………………………………………… as my proxy to attend and vote for me and on my behalf at the 27th Annual General Meeting of the Company to held on 27th December 2011 at 10 A.M and at any adjournment thereof. As witness my hand this ................................... ……….. day of 2011. ____________________ __________________________ (Signature of the Proxy) (Signature of the Shareholder) Date : Holder of _____________ Share(s) Dated : ____________________ ______________________ (Signature of the witness) Register Folio/BO ID No. Note: A member entitles to attend and vote at the general meeting may appoint a proxy to attend and vote in his/her stead. The proxy form, duly stamped, must be deposited at the Head Office of the Company not less than 48 hours before the time fixed for holding the meeting.

SIGNATURE VERIFIED

__________________________ (AUTHORISED SIGNATURE)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

STANDARD CERAMIC INDUSTRIES LTD. Amin Court (3rd Floor), 62-63 Motijheel C/A, Dhaka-1000.

I, the under signed ............................................. or my Proxy or Mr./Mrs./Ms............................................. hereby record(s) presence at the 27th Annual General Meeting of 2011. Name of Shareholder: ................................................................... Address : …………………….........................………....……….. Numbers of Share: ................................ Register Folio/BO ID No. _____________________ _________________________ (Signature of the Proxy) Signature of the Shareholder

Note: Please fill-in the blanks & present the card at the entrance. Page-32

Revenue Stamp Tk. 8.00

Identification card to attend 27th AGM on 27.12.2011

Documents

CONTENTS Report-2011.pdf · Founder Chairman and Managing Director Late Al-Hajj Ansar Uddin Ahmed 1922-2005 Page-2