Bata Shoe Company (Bangladesh) Limited Statement of Financial Position (Un-audited) as at 30 June 2013

Notes 2013 Jun Taka Assets Property, plant and equipment Capital work in progress Prepayments of rent Total non-current assets Inventories Accounts receivable Advances, deposits and prepayments Cash and cash equivalents Total current assets Total assets Equity Share capital Reserves and surplus Total equity Liabilities Deferred liability Deferred tax liability Total non-current liabilities Creditors for goods Creditors for expenses Creditors for other finance Accrued expenses Provision for tax Unclaimed dividend Total current liabilities Total liabilities Total equity and liabilities 11 12 136,800,000 1,816,934,761 1,953,734,761 136,800,000 1,717,200,579 1,854,000,579 4 5 9 926,023,976 4,448,117 186,800,000 1,117,272,093 2,388,671,463 386,824,537 536,082,246 9,197,024 3,320,775,270 4,438,047,363 880,326,133 2,059,472 132,100,000 1,014,485,605 1,888,784,523 276,562,580 432,321,639 233,459,170 2,831,127,912 3,845,613,517 2012 Dec Taka

7 8 9 10

13 6

119,837,590 14,000,000 133,837,590 578,794,932 524,452,971 261,909,458 416,587,860 372,826,821 195,902,970 2,350,475,012 2,484,312,602 4,438,047,363

123,817,664 12,300,000 136,117,664 353,751,438 420,194,568 241,388,294 385,280,477 396,547,086 58,333,411 1,855,495,274 1,991,612,938 3,845,613,517

14 15 16 17 18

Previous year's figures have been rearranged, wherever necessary, to conform to current period's presentation. -

Sd/Company Secretary Sd/Finance Director Sd/Managing Director

Bata Shoe Company (Bangladesh) Limited Statement of Comprehensive Income (Un-audited) for the period ended 30 June 2013
Notes 2013 Jan - Jun Taka Revenue Cost of sales Gross profit Exchange gain/(loss) Other income Administration, selling and distribution expenses Profit from operating activities Finance income Finance expenses Net finance income/(expenses)
Profit before contribution to workers' profit participation fund

2012 Jan - Jun Taka 3,117,438,804 (2,036,306,431) 1,081,132,373 (4,457,136) 14,319,937 (795,783,858) 295,211,316 6,048,341 (2,239,893) 3,808,448 299,019,764 (14,950,988) 284,068,775 78,120,000 78,120,000 205,948,775

2013 Apr - Jun Taka 1,714,881,085 (1,116,389,007) 598,492,078 (1,103,841) 3,786,672 (445,509,798) 155,665,111 3,002,866 (1,500,000) 1,502,866 157,167,977 (7,858,399) 149,309,578 51,633,000 1,000,000 52,633,000 96,676,578

2012 Apr - Jun Taka 1,461,636,455 (956,589,216) 505,047,239 289,698 6,159,479 (394,243,052) 117,253,364 3,824,240 (1,132,331) 2,691,909 119,945,273 (5,997,263) 113,948,010 31,340,000 31,340,000 82,608,010

19 20

21

22 23

Contribution to workers' profit participation fund Profit before income tax Income tax expense: Current tax Deferred tax Total comprehensive income for the period

3,534,338,993 (2,283,017,375) 1,251,321,618 321,694 9,458,424 (885,144,498) 375,957,238 5,852,223 (2,990,322) 2,861,901 378,819,139 (18,940,957) 359,878,182 114,804,000 1,700,000 116,504,000 243,374,182

Basic earnings per share (par value Tk 10)

17.79

15.05

7.07

6.04

Sd/Company Secretary

Sd/Finance Director

Sd/Managing Director

Bata Shoe Company (Bangladesh) Limited Statement of Cash Flows (Un-audited) for the period ended 30 June 2013

2013 Taka Cash flows from operating activities Cash receipts from customers Cash payments to and on behalf of employees Cash payments to suppliers and contractors for goods and services Cash payments for deferred liability Cash generated from operating activities Interest received from STD account Income tax paid Net cash from operating activities Cash flows from investing activities Proceeds from sales of property, plant and equipment Acquisition of property, plant and equipment Payment for capital work in progress Net cash used in investing activities Cash flows from financing activities Dividend paid Net cash used in financing activities Net cash increase/(decrease) in cash and cash equivalents Cash and cash equivalents as at 1 January Cash and cash equivalents/ (Bank overdraft) as at 30 June (6,070,441) (6,070,441) (224,262,146) 233,459,170 9,197,024 1,864,386 (93,302,142) (2,388,645) (93,826,401) 3,415,405,528 (688,016,539) (2,702,175,684) (16,906,567) 8,306,738 5,852,223 (138,524,265) (124,365,304)

2012 Taka

3,044,056,628 (661,093,492) (2,232,837,620) (18,308,189) 131,817,327 6,048,341 (121,795,211) 16,070,457

5,179,322 (131,567,883) (126,388,561)

(15,391,078) (15,391,078) (125,709,182) 302,767,543 177,058,361

Previous period's figures have been rearranged, wherever necessary, to conform to current period's presentation.

Bata Shoe Company (Bangladesh) Limited

(Un-audited)

Statement of Changes in Equity for the Period ended 30 June 2013

Reserve on revaluation of land Taka 60,631,183 Nondistributable special reserve Taka 998,620

Particulars

Share capital Taka 136,800,000

General reserve Taka 48,863,000

Retained earnings Taka 1,313,782,103 (2,790,630)

Total equity Taka 1,561,074,906 (2,790,630) 671,916,303

Balance as at 1 January 2012 Loss on Investment in Subsidiary Total comprehensive income for 2012 Profit for the year Transactions with the shareholders Final dividend for the year 2011 Interim dividend for the year 2012 Balance as at 31 December 2012 Total comprehensive income for 2013 Profit for the period Transactions with the shareholders Final dividend for the year 2012 Interim dividend for the year 2013 Balance as at 30 June 2013

671,916,303

136,800,000

60,631,183

998,620

48,863,000

(143,640,000) (232,560,000) 1,606,707,776

(143,640,000) (232,560,000) 1,854,000,579

243,374,182

243,374,182

136,800,000

60,631,183

998,620

48,863,000

(143,640,000) 1,706,441,958

(143,640,000) 1,953,734,761

Statement of Changes in Equity for the Period ended 30 June 2012

Reserve on revaluation of land Taka 60,631,183 Nondistributable special reserve Taka 998,620

Particulars

Share capital Taka 136,800,000

General reserve Taka 48,863,000

Retained earnings Taka 1,075,165,050

Total equity Taka 1,322,457,853

Balance as at 1 January 2011 Total comprehensive income for 2011 Profit for the year Transactions with the shareholders Final dividend for the year 2010 Interim dividend for the year 2011 Balance as at 31 December 2011 Total comprehensive income for 2012 Profit for the period Transactions with the shareholders Final dividend for the year 2011 Interim dividend for the year 2012 Balance as at 30 June 2012

580,617,053

580,617,053

136,800,000

60,631,183

998,620

48,863,000

(143,640,000) (198,360,000) 1,313,782,103

(143,640,000) (198,360,000) 1,561,074,906

205,948,775

205,948,775

136,800,000

60,631,183

998,620

48,863,000

(143,640,000) 1,376,090,878

(143,640,000) 1,623,383,681

Bata Shoe Company (Bangladesh) Limited Notes to the interim financial information as at and for the half year ended 30 June 2013

1.

Reporting entity
Bata Shoe Company (Bangladesh) Limited (hereinafter referred to as "Bata"/"the Company"/"the parent Company") is a public Company limited by shares. It was incorporated in Bangladesh in 1972 under the Companies Act 1913. The address of the registered office of the Company is Tongi, Gazipur, Bangladesh. The Company is one of the operating companies of worldwide Bata Shoe Organization (BSO). The shares in the Company are listed in both Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) and mostly held by Baffin (Nederland) B.V. The financial year of the Company covers one year from 1 January to 31 December. The Company is mainly engaged in manufacturing and marketing of leather, rubber, plastic, canvas footwear, hosiery and accessories items as well as finished leather. Manufacturing plants of the Company are situated at Tongi and Dhamrai. These financial statements as at and for the period ended 30 June 2013.

2.
2.1

Basis of preparation
Statement of compliance The interim financial information have been prepared in accordance with Bangladesh Accounting Standards (BAS) and Bangladesh Financial Reporting Standards (BFRS). Comparative information has been provided in accordance with BAS 34: Interim Financial Reporting.

2.2

Basis of measurement These interim financial information have been prepared on historical cost basis except revaluation of land at Tongi made in 1979 .

2.3

Functional and presentational currency These interim financial information are presented in Bangladesh Taka (Taka/Tk), which is the company's functional currency. All interim financial information have been rounded off to the nearest Taka.

2.4

Use of estimates and judgments The preparation of financial information requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an on going basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future period affected. Information about critical judgements in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements included in the following notes: Note 4 Note 6 Note 7 Property, plant and equipment Deferred tax assets / (liabilities) Inventories

Note 13 Note 18 2.5 Going concern

Deferred liability Provision for tax

The company has adequate resources to continue in operation for the foreseeable future. For this reason the directors continue to adopt going concern basis in preparing the interim financial information. The current resources of the company provide sufficient fund to meet the present requirements of the existing business. 2.6 Reporting period These interim financial information cover half of the calendar year from 1 January to 30 June 2013.

3.

Significant accounting policies

The accounting policies set out below have been applied consistently to all periods presented in these interim financial information.

3.1

Foreign currency Foreign currencies are translated into Bangladesh Taka at the rates ruling on the transaction date. Monetary assets and liabilities are translated at the rates prevailing at the balance sheet date. Non-monetary assets and liabilities are reported using the exchange rate at the date of transaction. Differences arising on conversion are charged or credited to the statement of comprehensive income.

3.2 3.2.1

Property, plant and equipment Recognition and measurement Items of property, plant and equipment excluding land are measured at cost less accumulated depreciation and accumulated impairment losses. Land is measured at revalued amount. Cost includes expenditures that are directly attributable to the acquisition of assets. The cost of self-constructed assets includes the cost of materials and direct labour, any other cost directly attributable to bringing the asset to a working condition for the intended use, the costs of dismantling and removing the items and restoring the site on which they are located, and capitalised borrowing costs. The gain or loss on disposal of an item of property, plant and equipment is determined by comparing the proceeds from disposal with the carrying amount of the property, plant and equipment, and is recognised net within other income/other expenses in profit or loss. When revalued assets are sold, any related amount included in the revaluation reserve is transferred to retained earnings.

3.2.2

Subsequent costs The cost of replacing a component of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the component will flow to the group, and its cost can be measured reliably. The carrying amount of the replaced component is derecognised. The costs of the day-to-day servicing of property, plant and equipment are recognised in profit or loss as incurred.

3.2.3

Depreciation Items of property, plant and equipment are depreciated on a straight-line basis in profit or loss over the estimated useful lives of each component. Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Group will obtain ownership by the end of the lease term. Land is not depreciated.

depreciated. Items of property, plant and equipment are depreciated from the date that they are installed and are ready for use, or in respect of internally constructed assets, from the date that the asset is completed and ready for use.

The estimated useful lives for the current and comparative years of property, plant and equipment are as follows:

2013 Year Building Plant and machinery Motor vehicles Furniture, fixtures and equipment 40 13.33 5 4-13.33

2012 Year 40 13.33 5 4-13.33

Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.

3.2.4

Capital work in progress Property, plant and equipment that is being under construction/acquisition is accounted for as capital work in progress until construction/acquisition is complete and measured at cost.

3.3

Inventories Inventories except inventories in transit are measured at the lower of cost and net realizable value. The cost of inventories is based on the first-in first-out principle, and includes expenditure incurred in acquiring the inventories and bringing them to their existing location and condition. In the case of manufactured inventories and work in progress, cost includes an appropriate share of production overheads based on normal operating capacity.

Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses. 3.4 3.4.1 Impairment Non-derivative financial assets Financial assets not carried at fair value through profit or loss, loans and receivables are assessed at each reporting date to determine whether there is objective evidence that it is impaired. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event had a negative effect on the estimated future cash flows of that asset that can be estimated reliably. 3.4.2 Non-financial assets The carrying amounts of the group's non-financial assets, other than inventories and deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists then the recoverable amount of the asset is estimated. An impairment loss is recognised if the carrying amount of an asset or its related cash-generating unit (CGU) exceeds its estimated recoverable amount.

3.5

Share capital Paid up capital represents total amount contributed by the shareholders and bonus shares issued by the company to the ordinary shareholders. Holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to vote at shareholders' meetings. In the event of a winding up of the company, ordinary shareholders rank after all other shareholders and creditors are fully entitled to any residual proceeds of liquidation.

3.6

Employee benefits The company maintains both defined contribution plan and defined benefit plan for its eligible permanent employees. The eligibility is determined according to the terms and conditions set forth in the respective deeds.

3.6.1

Defined contribution plan (provident fund) The company maintains three contributory provident funds for its permanent employees categorised as managers, officers and supervisors and workers. These are administered by the Boards of Trustees.

3.6.2

Defined benefit plan (gratuity and pension fund) The company maintains an unfunded gratuity scheme, provision in respect of which is made annually for the employees other than managerial staff. Gratuity payable at the end of each year has been determined on the basis of existing rules and regulations of the company. Actuarial valuation of the gratuity fund is carried out by a professional actuary.

3.7

Provisions A provision is recognised if, as a result of past event, the company has a present legal or constructive obligation that can reliably be estimated, and it is probable that an outflow of economic benefits will be required to settle the obligation.

3.8

Revenue Revenue from the sale of goods is measured at fair value of the consideration received or receivable, net of returns and allowances, Value Added Tax. Revenue from sale of goods is recognised when the significant risks and rewards of ownership have been transferred to the buyer, the company has no managerial involvement of ownership for the goods, the amount of the revenue and the cost of the transaction can be measured reliably, and it is probable that the economic benefit associated with the transactions will flow to the company.

3.9

Finance income and expenses Finance income comprises interest income on funds invested and interest on shop managers account held with the company. Interest income is recognised on accrual basis. Finance expense comprises interest expense on overdraft, finance lease and interest on shop managers account held with the company. All finance expenses are recognised in the statement of comprehensive income.

3.10

Tax Income tax expense comprises current and deferred tax. Income tax expense is recognised in the statement of comprehensive income except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity.

3.10.1

Current tax

Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. Bata qualifies as a "Publicly Traded Company"; hence the applicable tax rate is 27.50 %. It enjoys 10% rebate on income tax payable for declaring dividend more than 20% of paid up capital. 3.10.2 Deferred tax Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences when they are reversed, based on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity. A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences, to the extent that it is probable that future taxable profits will be available against which they can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised. 3.11 Earnings per share The company presents basic and diluted (when dilution is applicable) earnings per share (EPS) for its ordinary shares. Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the company with the weighted average number of ordinary shares outstanding during the period, adjusted for the effect of change in number of shares for bonus issue, share split and reverse split. Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding, for the effects of all dilutive potential ordinary shares. However, dilution of EPS is not applicable for these financial statements as there was no dilutive potential ordinary shares during the relevant periods.

3.12

Duty drawback Duty drawback claimed on export sales is adjusted against cost of imported raw materials.

3.13

Sales proceeds from wastage, scrap etc. Sales of empty drum of chemicals, split leather and other wastage of materials have been adjusted with cost of raw materials consumed. Income from non-operating activities is recognised as other income.

3.14

Workers' profit participation fund (WPPF) The company provides 5% of its profit before charging such expense as WPPF in accordance with The Bangladesh Labour Act 2006.

3.15

Events after the reporting date Events after the reporting date that provide additional information about the company's position at the statement of financial position date are reflected in the interim financial information. Events after the reporting date that are not adjusting events are disclosed in the notes when material.

4.

Property, plant and equipment

4(a) Year 2013 Cost/Valuation As at 1 January 2013 Taka 86,057,856 376,199,684 715,581,267 25,008,751 501,033,308 1,703,880,866 Additions during the period Taka 1,277,868 22,153,271 69,871,003 93,302,142 Disposals/ transfers during the period Taka (8,249,584) (2,278,294) (10,527,878) As at 30 June 2013 Taka 86,057,856 377,477,552 729,484,954 25,008,751 568,626,017 1,786,655,130 As at 1 January 2013 Taka 173,370,544 420,509,650 19,648,227 210,026,312 823,554,733 Depreciation Adjustment Charged for for disposals/ the period transfers Taka Taka 4,409,789 19,314,587 757,819 22,502,067 46,984,262 (7,745,378) (2,162,463) (9,907,841) -

Particulars

As at 30 June 2013 Taka 177,780,333 432,078,859 20,406,046 230,365,916 860,631,154

Written down value as at 30 June 2013 Taka 86,057,856 199,697,219 297,406,095 4,602,705 338,260,101 926,023,976

Land 1 Building 2 Plant and machinery Motor vehicles Furniture, fixtures and equipment 4(b) Year 2012

Cost/Valuation As at 1 January 2012 Taka 86,057,856 311,515,463 728,467,578 20,564,552 453,568,460 1,600,173,909 Additions during the year Taka 64,684,221 76,685,218 5,559,199 115,826,141 262,754,779 (89,571,529) (1,115,000) (68,361,293) (159,047,822) Disposals/ transfers during the year Taka As at 31 December 2012 Taka 86,057,856 376,199,684 715,581,267 25,008,751 501,033,308 1,703,880,866 As at 1 January 2012 Taka 165,633,274 471,736,404 18,698,786 212,234,052 868,302,516

Particulars

Depreciation Adjustment Charged for for disposals/ the year transfers Taka Taka 7,737,270 31,168,993 2,064,441 59,581,899 100,552,603 (82,395,747) (1,115,000) (61,789,639) (145,300,386) -

As at 31 December 2012 Taka 173,370,544 420,509,650 19,648,227 210,026,312 823,554,733

Written down value as at 31 December 2012 Taka 86,057,856 202,829,140 295,071,617 5,360,524 291,006,996 880,326,133

Land 1 Building 2 Plant and machinery Motor vehicles Furniture, fixtures and equipment

Land includes Tk. 60,631,183 by revaluation in 1979. Building includes properties at 24 Bangabandhu Avenue, Dhaka which were purchased in 1985 from the Government of Bangladesh at a cost of Tk 5,344,417. Sale deed is yet to be executed.

5.

Capital work in progress

30 Jun 2013 Taka Balance as at 1 January Add: Addition during the year Less: Transfer to property plant & equipment during the year Closing Balance (note 5.1) 2,059,472 6,639,394 8,698,866 4,250,749 4,448,117 31 Dec 2012 Taka 38,251,715 2,059,472 40,311,187 38,251,715 2,059,472

5.1

Capital work in progress represent as follows

Plant and machinery Furniture , Fixture & Equipment 4,448,117 4,448,117 2,053,987 5,485 2,059,472

6.

Deferred tax assets / (liabilities)

Deferred tax assets is arrived at as follows: 30 Jun 2013 Taka Balance as at 1 January Addition/(reduction) during the year Closing Balance Carrying amount on the date of statement of financial position Taka (12,300,000) (1,700,000) (14,000,000) 31 Dec 2012 Taka (1,500,000) (10,800,000) (12,300,000)

Tax base Taka

Taxable/ (deductible) temporary difference Taka

(a)

As at 30 June 2013 Property, plant and equipment (excluding land and certain motor vehicles) Provision for staff gratuity (note 12) Provision for bad and doubtful debts Net deductible temporary difference Deferred tax liability

819,236,488 (119,837,590) (21,982,613)

621,674,917 -

197,561,571 (119,837,590) (21,982,613) 55,741,368 (14,000,000)

(b)

As at 31 December 2012 Property, plant and equipment (excluding land and certain motor vehicles) Provision for staff gratuity (net of payment) Provision for bad and doubtful debts Net deductible temporary difference Deferred tax liability

791,930,824 (123,817,664) (22,618,287)

596,187,798 -

195,743,026 (123,817,664) (22,618,287) 49,307,075 (12,300,000)

7.

Inventories
30 Jun 2013 Taka Raw materials Work in process Finished goods 447,183,332 82,415,963 1,859,072,168 2,388,671,463 31 Dec 2012 Taka 433,360,454 61,989,523 1,393,434,546 1,888,784,523

8.

Accounts receivable
Trade (unsecured) - considered good Export customers - Non BSO companies Export customers - BSO companies Receivables from dealers Receivables from institutional sale 9,293,038 20,995,856 301,590,680 45,864,520 377,744,094 6,216,924 13,931,813 190,793,961 47,867,930 258,810,628

Others (unsecured) - considered good Insurance claims VAT claims Interest receivable Joint venture commission receivable Duty drawback claim receivable

4,662,934 2,001,294 2,066,543 430,707 9,161,478 21,901,578 408,807,150 (21,982,613) 386,824,537

19,108,225 705,675 184,518 196,347 20,194,765 20,175,474 299,180,867 (22,618,287) 276,562,580

Agents and employees Total accounts receivable Provision for doubtful debts

9.

Advances, deposits and prepayments

30 Jun 2013 Taka Advances (considered good) to: Agents and employees Suppliers against materials and services 31 Dec 2012 Taka

10,319,327 13,884,935 24,204,262

6,268,911 7,638,007 13,906,918

Security and other deposits Prepayments to landlords (current portion - note 9.1)

455,507,136 56,370,848 536,082,246

335,292,718 83,122,003 432,321,639

9.1

Prepayments of rent Prepayments to landlords Less: Current portion (note 9) Non-current portion 243,170,848 56,370,848 186,800,000 215,222,003 83,122,003 132,100,000

10.

Cash and cash equivalents

Cash balances: On hand In transit: From depots From institutions Balances with banks in: Current accounts In Taka In USD Fixed deposits Short term deposits 1,186,315 1,330,139

1,365,194 14,456,502

1,374,000 11,032,568

(89,576,391) 5,490,562 6,000,000 70,274,842 (7,810,987) 9,197,024

(67,641,911) 20,158,297 4,000,000 263,206,077 219,722,463 233,459,170

11.

Share capital
Authorised: 20,000,000 ordinary shares of Tk 10 each Issued, subscribed and paid up: 2,850,723 ordinary shares of Tk 10 each issued for cash 10,829,277 ordinary shares (including 7,202,400 bonus shares) of Tk 10 each issued for consideration other than cash 28,507,230 28,507,230 30 Jun 2013 Taka 200,000,000 31 Dec 2012 Taka 200,000,000

108,292,770 136,800,000

108,292,770 136,800,000

12.

Reserves and surplus

30 Jun 2013 Taka Reserve on revaluation of land Non-distributable special reserve (note 13.1) General reserve Unappropriated profit (note 13.2) 60,631,183 998,620 48,863,000 1,706,441,958 1,816,934,761 31 Dec 2012 Taka 60,631,183 998,620 48,863,000 1,606,707,776 1,717,200,579

12.1

Non-distributable special reserve This represents 90% of the cumulative post-tax profit in respect of certain categories of income up to 1992 as defined and directed by Bangladesh Bank. Since 1993, the requirement for continuing to create such special reserve is applicable only to the profit on sale of immovable assets such as land, buildings, etc.

12.2

Unappropriated profit Balance as at 1 January Profit for the year / Period Loss of BB Export Interim dividend Final dividend 1,606,707,776 243,374,182 (143,640,000) 1,706,441,958 1,313,782,103 671,916,303 (2,790,630) (232,560,000) (143,640,000) 1,606,707,776

13.

Deferred liability
30 Jun 2013 Taka Balance as at 1 January Add: Provision made during the year/ Period Less: Paid during the year / Period Closing Balance Deferred liability represents provision for staff gratuity. 123,817,664 12,926,493 136,744,157 16,906,567 119,837,590 31 Dec 2012 Taka 150,704,000 (5,999,942) 144,704,058 20,886,394 123,817,664

14.

Creditors for goods

Payable to local suppliers Payable to BSO companies 545,084,302 33,710,630 578,794,932 340,871,856 12,879,582 353,751,438

15.

Creditors for expenses

Payable to local suppliers Payable to BSO companies 261,648,804 262,804,167 97,864,002 322,330,566

524,452,971

420,194,568

16.

Creditors for other finance

Workers' profit participation fund Personal accounts of employees and agents Security and other deposits Provident fund Tax deducted at source Pension fund VAT deducted at source Salary and wages payable Others 70,066,710 67,194,441 24,892,500 5,062,766 45,631,313 659,220 4,799,099 11,551,444 32,051,965 261,909,458 51,125,753 68,792,575 23,105,500 6,540,438 53,845,380 1,642,750 6,551,877 15,389,842 14,394,179 241,388,294

17.

Accrued expenses
Provision for bonus Provision for utility Provision for legal & audit fee Provision for royalty Joint venture commission Other accrued liabilities 108,844,809 10,840,780 2,314,250 22,099,142 9,432,051 263,056,828 416,587,860 81,610,676 7,333,000 2,011,250 15,692,857 13,279,976 265,352,718 385,280,477

18.

Provision for tax

Current year Earlier years (net of advance tax) 114,804,000 258,022,821 372,826,821 288,673,000 107,874,086 396,547,086

19.

Revenue
Half year ended 30\Jun\13 Taka Local Shoe Hosiery & accessories Export 3,398,718,609 94,853,675 40,766,709 3,534,338,993 2,978,950,479 99,208,615 39,279,710 3,117,438,804 Half year ended 30\Jun\12 Taka

20

Cost of goods sold

Half year ended 30\Jun\13 Taka Opening stock of finished goods Add: Cost of goods manufactured (Note 20.1) Finished goods purchased Less: Closing stock of finished goods 1,393,434,546 2,227,549,619 521,105,378 4,142,089,543 1,859,072,168 2,283,017,375 Half year ended 30\Jun\12 Taka 1,237,634,992 1,959,292,196 300,192,551 3,497,119,739 1,460,813,308 2,036,306,431

20.1

Cost of goods manufactured Cost of materials consumed (Note 20.1.1) Direct wages 1,788,647,286 288,532,904 2,077,180,190 170,795,869 1,424,636,875 352,882,654 1,777,519,529 160,313,211

Manufacturing overhead Difference in work in process: Work in process at beginning Work in process at closing Cost of goods manufactured 20.1.1 Cost of materials consumed Opening stock of raw materials Add: Purchase Materials available for use Less: Sale proceeds of wastage scrap Less: Closing stock of raw materials

61,989,523 82,415,963 (20,426,440) 2,227,549,619

60,596,257 39,136,801 21,459,456 1,959,292,196

433,360,454 1,809,894,980 2,243,255,434 7,424,817 2,235,830,617 447,183,331 1,788,647,286

458,166,010 1,434,714,358 1,892,880,368 6,093,949 1,886,786,419 462,149,544 1,424,636,875

21.

Other income
Gain/(loss) on disposal of property, plant and equipment Discount for early payment

Half year ended 30\Jun\13 Taka 1,244,349 8,214,075 9,458,424

Half year ended 30\Jun\12 Taka 2,308,273 12,011,664 14,319,937

22.

Finance income
Interest on short term deposit 5,852,223 6,048,341

23.

Finance expenses
Interest on secutiry deposits 2,990,322 2,239,893