Ar 2016

39th Annual General Meeting of the Company held on 4 October, 2015
A partial view of the Shareholders at the 39th Annual General Meeting
Apex Tannery Limited

Annual Report 2016
A partial view of the Shareholders at the 39th Annual General Meeting

Annual Report 2016
C O N T E N T S
Our Vision, Mission, Values and Objectives 04
Corporate Directory 05
Directors and Management Team 06
Prole of Directors 07
Prole of Management Team 10
Report of the Directors 11
Financial Highlights 19
Financial Highlights (Graphical presentation) 20
Statement of Value Addition 21
Report on Corporate Social Responsibilities (CSR) 22
Report on Corporate Governance 24
Corporate Governance Compliance Report 27
Pattern of Shareholding 36
Audit Committee Report 37
Auditors Report 40
Statement of Financial Position 41
Statement of Comprehensive Income 42
Statement of Cash Flow 43
Statement of Changes in Equity 44
Notes to the Financial Statements 45
Notice of the AGM 62
Attendance slip and Proxy form 64
Apex Tannery Limited 03

Annual Report 2016
OUR VISION, MISSION, VALUES AND OBJECTIVES
OUR VISION
Our vision is to attain 100% customer satisfaction worldwide through continual quality
improvement of our products.
OUR MISSION
To understand and satisfy customers wants and needs, we always try to add value,
reduce costs and provide innovative thinking for improvement of our product quality, with
world class compliance and working standards.
OUR VALUES
To our customers we offer
A commitment to provide best quality product and timely delivery
Production of world-class quality leather, meet the requirements of customers with
competitive price and up to date fashion trends
Quick response to the expectations of our valued customers in terms of quality and
product development
To our employees we offer
A desirable and rewarding place to work
Provide motivation for team work and career development
The opportunity to grow to employees maximum potential
Sufficient offsite and on the job training
To our shareholders we offer
Attractive return with minimum risk of their investment
OUR VISION, MISSION, VALUES AND OBJECTIVES
A commitment to continuous improvement and adding value through all activities and
managing resources
To our suppliers we offer
Easy terms of trade
Payment within due time
OUR OBJECTIVES
100% on time delivery of the services to our valued customers
100% accuracy in documentation
100% customers acceptance of our services as valid and usables in accordance with
their requirements
Overall reduction of cost by 2% every year
Reduction of customer complaints by 10 % every year.
04 Apex Tannery Limited

Annual Report 2016
CORPORATE DIRECTORY
BOARD OF DIRECTORS
Chairman
Syed Manzur Elahi
Managing Director
Md. Rahmatullah
Directors
Syed Nasim Manzur
Md. Hedayetullah
Md. Iftikhar-uz-zaman
Faruq Ahmad Siddiqi
Sayed Alamgir Farrouk Chowdhury
AUDIT COMMITTEE
Chairman CORPORATE GOVERNANCE AUDITOR
Faruq Ahmad Siddiqi ARTISAN
Chartered Accountants
Members
Syed Nasim Manzur CHIEF FINANCIAL OFFICER
Md. Hedayetullah Anup Kumar Mukherjee
Sayed Alamgir Farrouk Chowdhury
TAX ADVISER
MANAGEMENT COMMITTEE Khandker Fazlul Quadir
Chairman
LEGAL ADVISER
Syed Manzur Elahi
Mohsen Rashid
Members Advocate, Supreme Court
Md. Rahmatullah
Md. Hedayetullah BANKERS
Ansarul Islam Agrani Bank Ltd.
M. Abdul Majed Amin Court Corp. Branch, Motijheel C/A,
Anup Kumar Mukherjee Dhaka-1000
HUMAN RESOURCES COMMITTEE REGISTERED OFFICE

Chairman 127 Hazaribagh T/A
Md. Hedayetullah Dhaka-1209
Members FACTORY
Ansarul Islam Unit I
CORPORATE DIRECTORY
M. Abdul Majed 127 Hazaribagh T/A,

Anup Kumar Mukherjee Dhaka-1209
Md. Golam Sarwar
Unit II
COMPANY SECRETARY Shafipur
Jagadish Kumar Bhanja Kaliakoir, Gazipur
AUDITORS
Malek Siddiqui Wali

Annual Report 2016
DIRECTORS AND MANAGEMENT TEAM
Syed Manzur Elahi Md. Rahmatullah

Chairman Managing Director
Syed Nasim Manzur Md. Hedayetullah Md. Iftikhar-uz-zaman

Director Director Director
Faruq Ahmad Siddiqi Sayed Alamgir Farrouk Chowdhury M. Abdul Majed

DIRECTORS AND MANAGEMENT TEAM
Independent Director Independent Director Executive Director
Ansarul Islam Anup Kumar Mukherjee Jagadish Kumar Bhanja

Executive Director Chief Financial Officer Company Secretary

Annual Report 2016
PROFILE OF DIRECTORS
Syed Manzur Elahi Md. Rahmatullah

Chairman Managing Director
Chairman Chairman
Apex Footwear Ltd.
Parliamentary Standing committee for
Apex Investments Ltd.
ministry of Information
Apex Enterprise Ltd.
F B Footwear Ltd.
Quantum Consumer Solutions Ltd.
Blue Ocean Footwear Ltd. Footbed Footwear Ltd.
Apex Pharma Ltd. President
Grey Advertising Bangladesh Ltd. Dhaka Mohanagar Awami League (North)
Director Managing Director
International Publications Ltd. (Financial Express) Daichipex Textile Mills Ltd.
Mutual Trust Bank Ltd. Apex Property Development Ltd.
Central Depository Bangladesh Ltd. (CDBL)
Credit Rating Agency of Bangladesh Ltd. (CRAB) Director
Pioneer Insurance Company Ltd.
Trustee
East West University Member
Other Activities Central working committee, Bangladesh
Awami League
Former Advisor, Caretaker Government of Parliamentary Standing Committee on
Bangladesh, 1996 and 2001
Ministry of Post Telecommunication &
Former Director, Bangladesh Krishi Bank
Technology.
Former Director, Export Promotion Bureau
Bangladesh Jatiya Sangshad (1986, 1988,
Former Director, Bangladesh Bank
Former President, Metropolitan Chamber 1996, 2008 to till date)
of Commerce and Industry Chief Adviser
Former Director, Sonali Bank Ltd. Bangladesh Finished Leather, Leathergoods
Former President, Bangladesh Employers and Footwear Exporters Association
Association Dhaka Mahanagar Samity (Dhaka Samity)
Former Vice Chairman of the Bangladesh
Association of Publicly Listed Companies Founder
(BAPLC) A.K.M.Rahmatullah University College,

Beraid, Gulshan, Dhaka
Education
Roushan Ara Girls High School, Beraid,
B.A. (Distinction) in 1962 from St. Xaviers Gulshan, Dhaka
College, Kolkata & M.A. (Economics) in
Education
1964 from Dhaka University.
Bachelor of Arts from Chittagong University.

Annual Report 2016
Syed Nasim Manzur Md. Hedayetullah

Director Director
President Chairman
Metropolitan Chamber of Commerce and Hedayetullah Securities Ltd.
Industry (MCCI)
Vice Chairman
Chairman Mutual Trust Bank Ltd.
Landmark Footwear Ltd.
Managing Director
Adviser
FB Footwear Ltd.
Leathergoods and Footwear Manufacturers
& Exporters Association of Bangladesh. Footbed Footwear Ltd.
Managing Director Director

Apex Footwear Ltd. Daichipex Textile Mills Ltd.
Apex Property Development Ltd.
Founding Director
Quantum Consumer Solutions Ltd. Education
Blue Ocean Footwear Ltd. B.Sc (Honors) in Leather Technology from
Apex Investments Ltd. the British School of Leather Technology,
Guardian Life Insurance Ltd. Northampton, UK & M. A. in international
Director Business from Webster University, Regents
Apex Pharma Ltd. College, London, United Kingdom.
Grey Advertising Bangladesh Ltd.
Apex Enterprise Ltd.
Pioneer Insurance Co. Ltd.
International Publications Ltd.
FRIENDSHIP (An Internationally acclaimed
Non Government Organization which provides
health and educational service in remote and
inaccessible chars of the northern region of
the Country)
Bangladesh Business Limited
Guest Speaker
The National Defence College (NDC)
Mirpur, Dhaka.
Education
Graduated in Economics in Entrepreneurial
Management from the Wharton School of
the University of Pennsylvania, USA in 1990.

Annual Report 2016
Mr. Iftikhar-uz-zaman Faruq Ahmad Siddiqi Sayed Alamgir Farrouk Chowdhury

Director Independent Director Independent Director
Chairman Former Chairman Retired Secretary to the Govt.

ICB Capital Management Ltd. Bangladesh Securities of Bangladesh
and Exchange Ministry of Health and Family
Managing Director Welfare
Commission (March 2006
Investment Corporation of Ministry of Commerce
to March 2009)
Bangladesh(ICB) Ministry of Local Government
Retired secretary to the
Director Former President
Govt. of Bangladesh (2002
Linde Bangladesh Ltd National Tennis Federation
to 2006)
Glaxo Smith Kline Former Vice President
Ministry of Education
Bangladesh Ltd. (GSK) Bangladesh National Football
Ministry of Commerce
Reneta Ltd. and Cricket Federation
Ministry of Post &
Credit Rating Agency
Telecommunication Former Chairman
Bangladesh Ltd. (CRAB)
Selection Committee for the
Credit Rating Information and Member Bangladesh National Cricket
Services Ltd. (CRISL) National Board of and Soccer teams
Standard Bank Ltd. Revenue (1999-2001)
National Tea Company Ltd. Former Commissioner
Independent Director Rajshahi Division
Central Depository
Al-Arafah Islami Bank Ltd.
Bangladesh Ltd. CDBL) Former Director General
Runner Automobile Ltd.
CAMP Venture Capital & Industries and Food
Finance Ltd. ( CVCFL) Education Former Advisor
B. A. (Hons). M. A. English Bangladesh Enterprise
Trustee
Language and Literature Institute and FBCCI
Bangladesh Krishi Gobeshona
from the University of
Endowment Trust (BKGET) Former Partite consultant
Dhaka. (1967)
CIDA, CUTS, EU, DFID, Oxford
Past Responsibilities
Policy Management, OPM,
Deputy Managing Director, USAID
Janata Bank Ltd.
Deputy Managing Director, ICB. Education

General Manager, ICB. Masters Degree in
Economics from University of
Education Dhaka in 1964 and Masters
BA (Hons), MA in Statistics Degree in Economics from
from University of Rajshahi. Williams College, USA in
1978.

Annual Report 2016
PROFILE OF MANAGEMENT TEAM
Ansarul Islam M. A. Majed

Executive Director Executive Director
Past Responsibilities Director

Served under Orbital Commerce & Pioneer Insurance Company Ltd.
Agencies (BD) Ltd. Alliance Leathergoods & Footwear Ltd.
Alliance Focus Footwear Ltd.
Education
B.Com. from University of Dhaka.
Anup Kumar Mukherjee FCA Jagadish Kumar Bhanja FCS

Chief Financial Officer Company Secretary
Past Responsibilities Past Responsibilities

PROFILE OF MANAGEMENT TEAM
Head of Accounts and Finance, Company Secretary, Central Insurance

Sonargaon Textiles Ltd. Company Ltd.
Chief Accountant, Quality Group Senior Program-Coordinator, PROSHIKA.
Chief Accountant, Fashion Group (MUK)
Manager-Accounts and Finance, Shagufta Group Senior Officer(S-Grade) Grameen Bank.
Dy. Manager-Audit & Consultancy,
Education
ACNABIN, Chartered Accountants
B.Com. (Hons), M.Com in Accounting from
Finance Officer, CARE-Bangladesh
University of Rajshahi
Education Chartered Secretary from the ICSB
M.com., Chartered Accountant

Annual Report 2016
Annual Report 2016
Annual Report 2016
Annual Report 2016
Annual Report 2016
REPORT OF THE DIRECTORS
DEAR SHAREHOLDERS,
On behalf of your Directors, I have the pleasure in submitting the Report and Financial Statements for
the year ended June 30, 2016.
PERFORMANCE REVIEW
The reduction in sales by about 43% mainly due to recession in EU, which is our main Market. You will
recall that last year, we explained that due to the continuing recession in EU over the past 4 years, we
diverted our marketing to China. Unfortunately, the situation did not improve as Chinas inventories of
leather are high leading to a decline in the production of shoes and leather goods. However, despite of
negative growth in sales, the achievement was come as the management was able to reduce costs to a
great extent. The main contributing factor of cost reduction was low cost of raw hides and skins in the
4th Quarter of the year.
PERFORMANCE SUMMARY YEAR ON YEAR
+ Increase
This Year Previous Year - Decrease
%
Sales (Taka in 000) 2,158,363 3,771,638 (42.77)
Raw Cowhides purchase price (Taka/sft) 86.79 106.04 (18.15)
Raw Goatskins purchase price ,, 43.21 69.13 (37.49)
Cow leather selling price ,, 168.00 175.00 (4.00)
Goat leather selling price ,, 112.86 120.40 (6.26)
Chemical cost ,, 34.66 36.48 (4.99)
Operating expenses (Taka in 000) 146,534 175,884 (16.69)
Gross profit ,, 252,681 273,390 (7.57)
Net profit ,, 90,994 95,269 (4.49)
Earnings per share (Taka) 5.97 6.25 (4.49)
INVENTORIES
We normally purchase huge quantities of raw hides and skins during the Eid-ul-Azha festival, so that our
production is not adversely affected due to low supply during the rest of the year. This years inventory
represents 119 days of production.
APPROPRIATION OF PROFITS
Taka in thousand
Year Ended Year Ended
June 30, 2016 June 30, 2015
Profit after tax 90,994 95,269
Prior Years Retained Earnings (Post dividend) 383,353 356,664
Balance of profit available for Appropriation 474,347 451,933
Proposed cash dividend 60,960 68,580

Retained Earnings carried forward 413,387 383,353
474,347 451,933

Annual Report 2016
DIVIDENDS
During the year EPS of your Company was Taka 5.97. Directors decided in the Board Meeting held on
August 16, 2016 to recommend dividend of Taka 4.00 per share of Taka 10/- each. After your approval
in this General Meeting, the dividend will be paid to the Shareholders.
EMPLOYMENT
Although the labour situation in the RMG sector was unsatisfactory, if not violent sometimes, the labour
environment in the leather sector was quiet. Labour relation in your Company was cordial and morale of
the workers was high. The breakdown of your Companys human resources are:
This Year Previous Year

Total Total
Workers 611 657
Staff 179 189
Management 32 32
INDUSTRY OUTLOOK AND POSSIBLE FUTURE DEVELOPMENTS

The EU recession and depressed demand in China, have adversely affected leather exports from
Bangladesh. The management feels that, in order to improve the performance, the production of
finished leather for Japan could be a solution.
The Centralized Effluent Treatment Plant (CETP), built by the Chinese for Government of Bangladesh
is in the final stages of completion. The construction of our new tannery in Savar is going on in full swing
and we hope to start commercial production by December, 2016. We are happy to inform you that about
340,000 square feet of the new tannery will be fully compliant with latest machineries, fire fighting
equipments, rain water harvesting, workers dormitories, cross ventilation, ample natural light etc.
We are proud to inform you that the Savar tannery, when completed, will be one of the biggest and fully
compliant factories in South Asia.
RISKS AND CONCERNS

The international and local media continue to remain highly critical of the adverse environmental
situation in Hazaribagh, which we feel, is fully justified. No industry has the right to pollute the
environment.
Because of the delay in shifting to Savar, the High Court has imposed a fine of Tk. 10,000/- per day till
we start trial production in Savar. We hope to be in trial production by end of September, 2016.
DIRECTORS ELECTION
Mr. Md. Rahmatullah and Mr. Md. Hedayetullah retire from the Board in terms of Articles of Association,
and being eligible, offer themselves for re-election.
Mr. Md. Rahmatullah retires from the office of Managing Director in terms of section 109 & 110 of
Companies Act 1994, and being eligible, offers himself for re-appointment.

Annual Report 2016
BOARD MEETINGS AND ATTENDANCE
During the year four Board Meetings were held and the attendance by each Director was as follow:
Name of Directors No. of Meetings Attended
Syed Manzur Elahi 4
Md. Rahmatullah 4
Syed Nasim Manzur 3
Md. Hedayetullah 4
Md. Fayekuzzaman 2
Md. Iftikhar-uz-zaman 2
Faruq Ahmad Siddiqi 4
Sayed Alamgir Farrouk Chowdhury 4
The Directors who could not attend the meetings were granted leave of absence.
AUDIT COMMITTEE
The Audit Committee was set up to review the financial results, audit and compliance with the statutory
and regulatory requirements. The Committee recommended to the Board of Directors, the appointment
of the Companys Auditors and reviewed the scope of internal audit. Audit committee report is annexed.
1. Faruq Ahmad Siddiqi Independent Director Chairman
2. Syed Nasim Manzur Director Member
3. Md. Hedayetullah Director & Head of Internal Audit Member
4. Sayed Alamgir Farrouk Chowdhury Independent Director Member
CORPORATE & FINANCIAL REPORTING

The Company has complied with all the requirements of Corporate Governance as required by the
Bangladesh 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
Companys state of affairs, the results of its operations, cash flows 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
preparation of financial statements.
(e) The systems of internal control are sound and have been effectively implemented and monitored.
(f) The company has carried on transactions with Apex Footwear Limited, Mutual Trust Bank Ltd,
Guardian Life Insurance Ltd. and Pioneer Insurance Company Limited in the normal course of
business.
(g) There are no significant doubts upon the Companys ability to continue as a going concern.
(h) The key operating and financial data for last five years is annexed.

Annual Report 2016
SHARE HOLDING
In accordance with the requirement of the Bangladesh Securities and Exchange Commission, pattern of
shareholdings as of 30th June, 2016 are given in Annexure I.
REMUNERATION OF DIRECTORS
In accordance with the requirement of the Bangladesh Securities and Exchange Commission,
remuneration of directors for the year ended 30th June, 2016 are given in note number 39.
CORPORATE GOVERNANCE COMPLIANCE REPORT

In accordance with the requirement of the Bangladesh Securities and Exchange Commission,
Corporate Governance Compliance Report is annexed.
EXTERNAL AUDITORS APPOINTMENT

M/S. Malek Siddiqui Wali, Chartered Accountants, Auditors retires at this Annual General Meeting and
being eligible, offer themselves for re-appointment for the year 2016-2017.
ACKNOWLEDGEMENT
The Directors take this opportunity to acknowledge the continued support and efforts of all members of
the company, as well as all customers, suppliers and associates during the past year. Our performance
would not have been possible without their support.
On behalf of the Board,
August 16, 2016 Syed Manzur Elahi

Dhaka. Chairman.

Annual Report 2016
FINANCIAL HIGHLIGHTS
Taka in thousand
Particulars 2016 2015 2014 2013 2012

Sales 2,158,363 3,771,638 3,793,167 3,248,799 3,067,208
Gross profit 252,681 273,390 225,764 253,309 271,157
Profit before tax 110,011 117,843 106,931 126,047 131,981
Net profit after tax 90,994 95,269 84,024 100,157 107,676
Authorized capital 500,000 500,000 500,000 500,000 500,000
Issued and paid up capital 152,400 152,400 152,400 152,400 152,400
Property, plant & equipment 270,744 270,134 277,953 280,531 241,175
Investment & non current assets 961,915 608,940 375,989 323,791 283,146
Current assets 917,218 1,144,001 1,109,035 1,112,356 1,313,429
Current liabilities 575,602 542,389 313,070 311,474 525,849
Net current assets 341,616 601,612 795,965 800,882 787,580
Dividend 60,960 68,580 68,580 60,960 53,340
Earnings per share (Taka) 5.97 6.25 5.51 6.57 7.07
Dividend per share (Taka) 4.00 4.50 4.50 4.00 3.50
Market value per share at year end (Taka) 139.10 110.70 142.60 86.70 103.10
Net asset value per share (Taka) 74.72 73.48 71.67 69.38 66.44
Net operating cash flow per share (Taka) 3.08 6.05 4.97 31.12 9.35
Price earnings ratio (Times) 23.30 17.71 25.88 13.20 14.58

FINANCIAL HIGHLIGHTS
Dividend yield ratio (%) 2.88 4.07 3.16 4.61 3.39
Current ratio 1.59 2.11 3.54 3.57 2.50
Quick ratio 0.54 1.14 2.10 2.28 1.00
Return on Shareholders fund (%) 8.30 8.87 8.02 9.77 11.01
Interest coverage ratio 4.38 3.23 3.70 3.34 2.79

Annual Report 2016
FINANCIAL HIGHLIGHTS (GRAPHICAL PRESENTATION)
150 132 126 118 110

108 100 107
95 91
100 84 Profit before tax (Tk. in million)
50 Net profit after tax (Tk. in million)
0
2012 2013 2014 2015 2016
74.72
75 73.48
71.67
69.38
70
66.44 Net asset value per share (Tk.)
65
60
2012 2013 2014 2015 2016
142.60 139.10
150
103.10 110.70
86.70
100
Market value per share (Tk.) at year end
50
FINANCIAL HIGHLIGHTS (GRAPHICAL PRESENTATION)
0
2012 2013 2014 2015 2016
15
11.01 9.77
8.02 8.87
10 8.30
Return on Shareholders fund (%)
5
0
2012 2013 2014 2015 2016
6
5.01
5 3.82
3.54
4 3.03 2.96 3.46
2.55 2.79
3 Components of EPS (Tk.)
2.06 2.15
2 Net operating income
1 Net other income
0
2012 2013 2014 2015 2016

Annual Report 2016
STATEMENT OF VALUE ADDITION
Taka in thousand

June 30, 2016 June 30, 2015
Value added
Sales 2,158,363 3,771,638
Bought in materials and services (1,847,100) (3,479,616)
311,263 292,022
Other income 43,574 56,456
Available for distribution 354,837 348,478
Distribution of value addition

To Government (Income Tax) 20,844 05.87% 23,066 06.62%
To Employees & Workers (Salary, wages and other benefits) 210,617 59.36% 200,408 57.51%
To Banks (Interest and charges) 34,209 09.64% 30,227 08.67%
To Shareholders (Dividend) 60,960 17.18% 68,580 19.68%
326,630 92.05% 322,281 92.48%
Retained for reinvestment and future growth 28,207 7.95% 26,197 07.52%
354,837 100.00% 348,478 100.00%
To Shareholders 17% To Shareholders 19%

Retained for Retained for
To Banks 10% reinvestment 8% To Banks 9% reinvestment 8%
To Government 6% To Government 7%
STATEMENT OF VALUE ADDITION
To Employees & workers 59% To Employees & workers 57%
Distribution of Value Addition in 2015-2016 Distribution of Value Addition in 2014-2015

Annual Report 2016
REPORT ON CORPORATE SOCIAL RESPONSIBILITIES (CSR)
Apex Tannery Limited believes in commitment to society by achieving sustainable growth, protect
interest of stakeholders, continual quality improvement of business, enhance shareholders value and
manage risks in an improved way.
ATL maintain relationship, trust and commitment to stake holder's interest through:
Health care assistance to workers and people living in poverty
Provide training on occupational health and safety for its employees
Disaster relief to poor community people and slum dewllers
Assist in education for poor community people and workers
Donate to needy women for their marriage
Donate to Charitable Organizations like Mosques, graveyards etc.
CSR activities conducted during the year:

To develop Graveyard at
Rupganj of Narayanganj,
Freedom fighter Mr. Hazi Md.
Montajuddin received a cheque
from Executive Director Mr.
Ansarul Islam. Freedom fighter
Mr. Hazi Md. Abdul Ali and Mr.
Md. Atiqur Rahman (Teacher)
were present there.
Mrs. Fatima Begum of

Hazaribagh received a cheque
for her daughters education
from Mr. M.A. Majed, Executive
Director of the Company.

Annual Report 2016
Executive Director Mr. M.A. Majed
provided a cheque to Ms. Kamola
of Hazaribagh as financial
assistance for her mothers
treatment.

donated a cheque to Mrs. Nasima
of Hazaribagh as financial
assistance for her daughters
marriage.

provided a cheque as financial
assistance to Ms. Khaleda of
Hazaribagh for her marriage.
General Manager (Accounts) Mr.

Santosh Kumar Biswas disbursed a
cheque as financial assistance to
Mr. Habibur Rahman of Hazaribagh
for his treatment.

Annual Report 2016
REPORT ON CORPORATE GOVERNANCE
Corporate Governance clearly defines the rights and responsibilities of the Board of Directors,
Management, Shareholders and other Stakeholders. The Board supports Management, Internal and
External Auditors and other related parties including the Shareholders. A good corporate reputation is
the most valuable and competitive asset of a company. Apex Tannery Limited believes in the continued
improvement of corporate governance. The Board of Directors and the Management Team of Apex
Tannery Limited is committed to maintaining effective Corporate Governance through a culture of
accountability and transparency.
Board of Directors
The Board of Directors comprises of 07 (Seven) members including two Independent Directors. All
Directors have sound knowledge in the area of tannery, managerial expertise and sound academic and
professional knowledge. They are well conversant with corporate governance.
Appointment of Board Members
The Directors of the Board are appointed by the Shareholders in the Annual General Meeting who are
accountable to the Shareholders.
Appointment of Independent Directors
The Board of Directors appointed two Independent Directors. Shareholders approved appointment of
Independent Directors in its 38th Annual General Meeting held on September 23, 2014 and 39th Annual
General Meeting held on October 4, 2015. In selecting Independent Directors, the Company always look
for individuals who possess experience; strong inter personal skill and independence. Independent
Directors are considered by the Board to be independent of the Company and free of any business or
other relationship that could interfere with the exercise of their independent judgment. The Board
believes that their experience and knowledge assist in providing both effective and constructive
contribution to the Board.
The Role of the Chairman and Managing Director
Position of the Chairman and Managing Director (CEO) are clearly identified. The Chairman is
responsible for leading the Board and its effectiveness. The Managing Director serves as the Chief
Executive of the Company.
Audit Committee
The Audit Committee was established as a sub-committee of the Board and has jurisdiction over Apex
Tannery Limited. The audit committee is comprised of four members of the Board including two
Independent Directors one of them is the Chairman of the Committee. The Audit Committee assists the
Board.
Company Secretary
Jagadish Kumar Bhanja has been appointed as the Company Secretary of the Company. He provides
legal matters to the Board. Among other functions, the Company Secretary:
Bridges between the Board of Directors and Shareholders on strategic and statutory decision.
Acts as a quality assurance agent in all information towards the Shareholders and Board
Is responsible for ensuring that the appropriate Board procedures are followed.
Acts as the Disclosure Officer of the Company and monitors the compliance of the Acts, rules,
regulations, notifications, guidelines, orders/directives etc. issued by the Bangladesh Securities and
Exchange Commission, Stock Exchange (s) applicable to the conduct of the business activities of the
Company.
The Company Secretary keeps the records of the Companys compliance / noncompliance status of the
conditions imposed by BSEC which has been shown in the compliance report on BSEC Notification.

Annual Report 2016
Chief Financial Officer
Anup Kumar Mukherjee has been appointed as the Chief Financial Officer of the Company. He looks
after the overall financial affairs of the Company. Among other functions, the Chief Financial Officer:
Prepares Quarterly, Half yearly and Yearly financial statements.
Financial reporting procedures in line with the requirement of Bangladesh Accounting Standards.
Reports financial position of the Company in its Board meeting.
Financial Reporting and Transparency
Financial Statements have been prepared in line with the International Accounting Standards,
Bangladesh Accounting Standards and other legislations as applicable in Bangladesh. Timely
publication of quarterly, half yearly and annual financial statements with comprehensive details beyond
the statutory requirement.
Compliance with Applicable Rules and Regulations
The Companys business activities are guided and supervised by local laws and regulations:
The Companies Act 1994.
The Bangladesh Securities and Exchange Commission.
Listing rules of Dhaka and Chittagong Stock Exchange Limited.
Bangladesh Accounting Standards.
Purchase Committee
A purchase committee is functioning with a group of executives, headed by a senior most executive to
examine the purchase proposal of goods. Among others, the followings are the main responsibilities of
the Committee:
To evaluate the received proposal and find out the effectiveness of each proposal.
To prepare a report on the basis of evaluation of the purchase proposal with recommendation and
sent to concerned departments for obtaining approval from the competent authority.
To supervise the entire activities against procurement
Statutory Audit
Statutory Audit of the Company is governed by the Companies Act 1994. The Company Act provides
guidelines for the appointment, scope of work and retirement of auditors. Shareholders appoint auditors
and fix their remuneration in the Annual General Meeting.
Internal Audit
Internal Audit support the Company to achieve its objectives by bringing a systematic, disciplined

approach to evaluate and improve the effectiveness of its risk management and control. Internal Audit
activity is governed by the Internal Team, which is approved by the Board.
Internal Control
The Company has an Internal Audit department consisting of five members and headed by the Head of
Internal Auditor. The Internal control system is maintained and reviewed by an internal audit function that
reports to Management and the Audit Committee.
Internal Control mechanism is built by the Companys systems and procedures to reduce the risk of error
and fraud. It may be able to reduce the risk that financial statements contains. The Board of Directors
ensures sound internal control to provide reasonable assurance regarding the achievement of the
Company objectives in the areas of:
Effectiveness and efficiency of operations.
Reliability of financial reporting.
Compliance with laws and regulations.

Annual Report 2016
Code of Conduct
Apex Tannery Limited has adopted Codes of Conduct for securing good business ethics and conduct in
all aspects of the Companys activities. The Code of Conduct is properly communicated to and with all
employees and other activities, and is strictly required to abide by it.
Management Committee
The day-to-day Management of the Company is entrusted with the Managing Director and the
Management Committee. The Management Committee serves the interest of the Company and
achieves sustainable growth. The members of the Management Committee are jointly accountable for
the entire management of the Company and decide on the basic issues of business policy and corporate
strategies.
Restrictions on dealing in the Companys share by insiders
The Company has established policy relating to trading shares by Directors, Employees and other
insiders. The securities laws also impose restrictions on similar sort of transaction.
Group Term Life Insurance Policy
The Board of Directors has approved for Group Term Life Insurance Policy for employees of Apex
Tannery Limited with Guardian Life Insurance Limited.
Going Concern
The Company has adequate resources to continue operational existence for the future. For this reason,
the Company continues to adopt the going concern basis in preparing the financial statements.
Communication with Shareholders:

Shareholders
Accountable to:
Board of Directors
Accountable to:
Management
The Company encourages communication with shareholders throughout the year and welcomes their
participation at shareholders meeting. The Company is transparent with the stakeholders, including the
owners of the Company. Four times each year, Apex Tannery Limited reports to its shareholders
regarding its business, financial position and earnings. These include:
Quarterly and Annual financial statements
Annual General Meeting

PriceSensitive Disclosure and other disclosure to the BSEC and Stock Exchanges
In additional information, the Company is under a legal and regulatory requirement to publish via the
newspaper. Apex Tannery Limited believes in transparency and accountability to the society as a whole
through establishment of an efficient and effective Corporate Governance procedure.

Annual Report 2016
Status of compliance with the conditions imposed by the Commissions Notification No.
SEC/CMRRCD/2006-158/134/Admin/44 dated 07th August, 2012 issued under section 2CC of the
Securities and Exchange Ordinance, 1969 (Report under Condition No.7.00)
Condition Title Compliance Remarks

No. status (If any)
1 Board of Directors
1.1 Boards Size The Apex Tannery
The number of the Board members shall not be less than Complied Limited Board is
5 (five) and more than 20 (twenty) comprised of 7
(Seven) Directors
1.2 Independent Directors
At least one fifth (1/5) of total number of directors There are two
(i) Complied Independent
shall be Independent Director
Directors in the Board
of Apex Tannery
Limited, namely: Mr.
Faruq Ahmad Siddiqi
and Mr. Sayed
Alamgir Farrouk
Chowdhury.
(ii) For the purpose of this clause independent Complied The Independent
director means a director: Directors have
declared their
compliances.
(ii) a) Does not hold any share or holds less than 1% Complied DO
shares of the total paid-up shares of the
Company

(ii) b) Who is not a sponsor and not connected with any Complied DO
sponsor/director/ shareholder who hold 1% or
more shares of the total paid-up shares on the
basis of family relationship
(ii) c) Does not have any other relationship, whether Complied DO
pecuniary or otherwise, with the company or its
subsidiary/associated companies
(ii) d) Not a member, director or officer of any stock Complied DO
exchange
(ii) e) Not a shareholder, director or officer of any
member of stock exchange or an intermediary of Complied DO
the capital market
(ii) f) Not a partner or an executive or was not a partner
Complied DO
or an executive during the preceding 3 (three)
years of any statutory audit firm
(ii) g) Not be an independent director in more than 3 Complied DO
(three) listed companies

Annual Report 2016
No. status (If any)
(ii) h) Not been convicted by a court of competent Complied The Independent

jurisdiction as a defaulter in payment of any loan Directors have
to a bank or a Non-Banking Financial Institution declared their
(NBFI) compliances.
(ii) i) Not been convicted for a criminal offence Complied DO
involving moral turpitude
(iii) Appointed by the Board of Directors and Complied In practice
approved by the shareholders in the AGM
(iv) The post of Independent Director can not remain Complied There was no vacancy
vacant for more than 90 (ninety) days in the position of
Independent Director
(v) Board shall lay down a code of conduct of all Complied Every Director has
Board members and annual compliance of the signed a confirmation as
code to be recorded to its compliance
(vi) Tenure of office of an Independent Director shall Complied The Independent
be for a period of 3 (three) years, which may be Directors (IDs) are in
extended for 1 (one) term only their first term of office
1.3 Qualificatation of Independent Director

Shall be a Knowledgeable individual with integrity Complied The qualification and
(i)
who is able to ensure compliance with financial, background of Indepe
regulatory and corporate laws and can make ndent Directors justify
meaningful contribution to business their ability as such
(ii) Should be a Business Leader/Corporate Complied Existing Independent
Leader/Bureaucrat/University Teacher with Directors are
Economics or Business Studies or Law Bureaucrat having
background/Professionals like Chartered more than 12
Accountants, Cost and Management (Twelve) years
Accountants, Chartered Secretaries. Must have experience
at least 12 (twelve) years of corporate
management/professional experiences
(iii) In special cases the above qualifications may be Not
relaxed subject to prior approval of the applicable
Commission
1.4 Chairman of the Board and Chief Executive Officer

Chairman and CEO shall be filled by different Complied Chairman of the Board
individuals. Chairman shall be elected from and CEO are different
among the Directors. The Board of Directors shall individuals. The roles
clearly define respective roles and responsibilities and responsibilities of
of the Chairman and the CEO. Chairman and the
CEO are approved in
Board meeting
1.5 The Directors Report to Shareholders
(i) Industry outlook and possible future Complied The Directors report
comply with the
developments in the industry
Guidelines

Annual Report 2016
No. status (If any)
(ii) Segment-wise or product-wise performance; Complied The Directors report
comply with the
guidelines
(iii) Risks and Concerns Complied Do
(iv) Discussion on cost of goods sold, Gross Profit Complied Do
Margin and Net profit Margin
(v) Discussion on continuity of any Extra-ordinary Not Do
gain or loss applicable
(vi) Disclosure for related party transactions Complied Do
(vii) Utilization of proceeds from public issues, rights Not Do
issues and/or through any others applicable
(viii) Explanation if the financial results deteriorate Not
Do
after the company goes for IPO, RPO, Rights applicable
Offer and Direct Listing
(ix) Explanation about significant variance occurs Not Do
between Quarterly Financial performance and applicable
Annual Financial Statements
(x) Remuneration to directors including independent Complied Do
directors
(xi) Fairness of financial statement Complied Do
(xii) Maintenance of proper books of account Complied Do
(xiii) Application of appropriate accounting policies Complied Do
and estimates
(xiv) Followed IAS, BAS, IFRS, and BFRS in Complied Do
preparation of the financial statements
(xv) Soundness of internal control system Complied Do
(xvi) Ability to continue as a going concern Complied

Do
(xvii) Significant deviations from the last year Complied Do
(xviii) Key operating and financial data of at least Complied Do
preceding 5(five) years
(xix) Reasons for not declared dividend Complied Dividend has been
declared. Mentioned
in the Directors
Report
(xx) Number of Board meetings held during the year Complied Dislosed in Directors
and attendance Report
(xxi) Pattern of shareholdings and name wise details Complied Attached in Annexure-1
disclosing aggregate number of shares:
(xxi) a) Parent/Subsidiary/Associated Companies and Complied Attached in Annexure-1
other related parties (Name wise Details)

Annual Report 2016
No. status (If any)
(xxi) b) Directors, CEO, CS, CFO, HIA and their spouses Complied Attached in Annexure-1
and minor children (Name wise details)
(xxi) c) Executives (name wise details) Complied Do
(xxi) d) Shareholders holding ten percent (10%) or more Complied Do
voting interest (Name wise details)
(xxii) Director appointment/re-appointment: Complied Do
(xxii) a) A brief resume of the director Complied Do
(xxii) b) Expertise in specific functional areas Complied Do
(xxii) c) Holding the directorship and the membership of Complied Do
committees of the board other than this company
2 Chief Financial Officer (CFO), Head of Internal Audit
(HIA), Company Secretary (CS)
1 The company shall appoint a Chief Financial The Company has
Officer (CFO), a Head of Internal Audit (Internal appointed CFO, CS,
Control and Compliance) and a Company and Head of Internal
Secretary (CS). The Board of Directors should Complied Audit. There are
clearly define respective roles, responsibilities clearly defined roles,
and duties of CFO, The Head of Internal Audit and responsibilities and
the CS; duties which have
been approved by the
Board as per
requirement of BSEC
notification
2 The Chief Financial Officer (CFO) and the

Complied In practice
Company Secretary (CS) of the Company shall
attend the meetings of the Board of Directors
3 Audit Committee
(i) The company shall have an Audit Committee as a Complied

sub-committee of the Board of Directors Already in place
(ii) Assistance of the Audit Committee to the Board of Complied In practice
Directors
(iii) The Audit Committee shall be responsible to the Complied Do
Board of Directors. The duties of the Audit
Committee shall be clearly set forth in writing.
3.1 Constitution of the Audit Committee
(i) Compositions (At least three members should be Complied The Audit Committee
in Audit Committee) is composed of 4
(four) members
(ii) Appointment of Members of the Audit Committee Complied The members of the Audit
(Members should appointed by the Board with at Committee are appointed
by the Board who are
least one Independent Director) Directors and which
includes 2 (Two)
Independent Directors

Annual Report 2016
No. status (If any)
(iii) Qualification of Members of the Audit Committee Complied Based on the

(Members should be financially literate and at academic
least one (01) member shall have accounting or qualification and
related financial management experience) professional
experience, the Board
reviewed and
considered that all the
existing members of
the Audit Committee
are Financially
Literate and they
have Related
Financial Management
experience as per
BSEC notification.
(iv) Casual vacancy in Audit Committee shall be filled Complied The Board appointed
by the Board Audit Committee
member in due time.
(v) Complied In practice
The Company Secretary shall act as the
Secretary of the committee
(vi) The quorum of the Audit Committee (AC) meeting Complied Do
shall not constitute without at least 1 (one)
Independent Director
3.2 Chairman of the Audit Committee:
(i) The Board of Directors shall select 1 (one) Complied Mr. Faruq Ahmad
member of the Audit Committee to be Chairmen Siddiqi has been
of the Audit Committee, who shall be an appointed as
Independent Director Independent Director
who is the Chairman

of Audit Committee.
(ii) Chairman of the Audit Committee shall remain Complied In practice

present in the Annual General Meeting (AGM)
3.3 Role of the Audit Committee
(i) Oversee the financial reporting process Complied In practice
(ii) Monitor choice of accounting policies and Complied Do
principles
(iii) Monitor Internal Control Risk management Complied Do
process
(iv) Oversee hiring and performance of external Complied Do
auditors
(v) Review the annual financial statements before Complied Do
submission to the board for approval;
(vi) Review the quarterly and half yearly financial
Complied Do
statements before submission to the board for
approval

Annual Report 2016
No. status (If any)
(vii) Review the adequacy of internal audit function Complied In practice
(viii) Review statement of significant related party Complied Do
transactions
Review Management Letters/ Letter of Internal Complied Do
(ix)
Control weakness issued by statutory auditors
(x) Disclosure about the uses/ applications of funds Not Do
raised by IPO/RPO/ Right Issue applicable
3.4.1 Reporting of the Audit Committee
(i) The Audit Committee shall report on its activities Complied
In practice
to the Board of Directors
(ii) The Audit Committee shall immediately report on Not There was no
the following findings to the Board: applicable reportable case of
conflict of interest in
the year 2015- 2016.
(ii) a) Report on conflicts of interest to the Board of Complied Do
Directors
(ii) b) Will report any suspected or presumed fraud or Not
irregularities or material defect in the internal applicable Do
control system to the Board
(ii) c) Will report any suspected infringement of laws, Not
including securities related laws, rules and applicable Do
regulations to the Board
(ii) d) Will report any other matters which shall be Not
disclosed to the Board of Directors immediately applicable Do
3.4.2 Reporting to the Authorities (BSEC) Not
If any materials impact on the financial condition & results applicable Do
of operation, unreasonably ignored by the Board of

Directors
3.5 Reporting to the Shareholders and General Investors: Complied The Audit Committee
Report on activities carried out by the Audit Committee, report is disclosed in
including any report made to the Board of Directors under the Annual Report
condition 3.4.1 (ii) above during the year, shall be signed and signed by the
by the Chairman of the Audit Committee and disclosed in Chairman of the Audit
the annual report of the issuer company Committee.
4. Engagement of External/ statutory auditors

(i) Non-engagement of Appraisal or valuation Complied In practice
services or fairness opinions
(ii) Non-engagement in designing Financial Complied Do
information system and implementation
(iii) Non-engagement in Book-keeping Complied Do
(iv) Non-engagement in Broker-dealer services Complied Do

Annual Report 2016
No. status (If any)
(v) Non-engagement in Actuarial services Complied In practice
(vi) Non-engagement in Internal audit services Complied Do
(vii) Non-engagement in services that the Audit Complied Do
Committee determines
(viii) No partner or employees of the external audit Complied Do
firms shall possess any share of the company
they audit at least during the tenure of their audit
assignment of that company
(ix) Audit/certification Services on compliance of Complied Do
Corporate Governance as required under clause
(i) of condition # 7
5. Subsidiary Company:
(i) Composition of the Board of Directors Not Apex Tannery Limited

applicable does not have any
subsidiary company.
(ii) At least 1 (one) Independent Director to the Not
subsidiary company applicable
(iii) Submission of minutes to the holding company Not
applicable
(iv) Review of minutes by the holding company Not

applicable
(v) Review of Financial Statements by holding Not
company applicable
6.
(i) a) The CEO & CFO will certify to the Board that they heve

these statements do not contain any materially untrue Complied
statement or omit any material fact or contain statements statements
that might be misleading
(i) b) The CEO & CFO will certify to the Board that they heve
Complied Do
of the companys affairs and are in compliance with
existing accounting standards and applicable laws
(ii) There are, to the best knowledge and belief, no
transactions entered into by the Company during the
Complied Do
year which are fraudulent, illegal or violation of the
Companys code of conduct
7. Reporting and Compliance of Corporate Governance:

(i) Obtained certificate about compliance of Certified by ARTISAN,
conditions of Corporate Governance Guidelines Chartered Accountants
(ii) Directors shall state in the Directors report about Published with the
the compliance with the conditions of the Directors Report
Corporate Governance Notification

Annual Report 2016
CEO AND CFOs CERTIFICATION TO THE BOARD
Dated : 16 August, 2016
The Board of Directors

127, Hazaribagh T/A
Dhaka-1209
Dear Sir,
(1) We have reviewed financial statements of the company for the year ended 30th June, 2016 and to
the best of our knowledge and belief.
(a) These statements do not contain any materially untrue statements or omit any material fact or
contain statements that might be misleading.
(b) These statements together present true and fair view of the companys affairs and are in
compliance with Bangladesh Accounting Standards (BAS) and other applicable laws.
(2) There are, to the best of our knowledge and belief, no transaction entered into by the Company
during the year which is fraudulent, illegal or violation of the companys code of conducts.
Md. Rahmatullah Anup Kumar Mukherjee FCA

CEO AND CFOs CERTIFICATION TO THE BOARD
Chief Executive Officer Chief Financial Officer

Annual Report 2016
ARTISAN BSEC BHABAN (Level-10),
102, Kazi Nazrul Islam Avenue
CHARTERED ACCOUNTANTS Kawran Bazar, Dhaka-1215
Tel: 8189883-7
Fax: 8180187
Mobile # 01922797851
e-mail: info@artisan-ca.com
Web: www.artisan-ca.com
Certificate of Compliance to the Shareholders of

APEX TANNERY LIMITED
On the Conditions of Corporate Governance Guidelines
We have reviewed the statement of compliance of Conditions of Corporate Governance guidelines

prepared by the Management of APEX TANNERY LIMITED to comply with the Notification No.
SEC/CMRRCD/2006-158/134/Admin/44 dated 7th August, 2012 of Bangladesh Securities and
Exchange Commission (BSEC), where the company is listed.
The responsibility for compliance with the Conditions of Corporate Governance Guideline is that of the
Board of Directors of the company. Our responsibility is to review, to the extent where such compliance
can be objectively verified, whether the statement of compliance reflects the status of the Companys
compliance with the provisions of the conditions of Corporate Governance guidelines and report if it
does not.
Based on our review, we certify that nothing has come to our attention except as stated in status of
Compliance statement which causes us to believe that the Statement of Compliance does not
appropriately reflect the Companys compliance, in all material respects, with the best practices
contained in the Conditions of Corporate Governance as applicable to the Company for the year ended
June 30, 2016.
CERTIFICATE OF COMPLIANCE TO THE SHAREHOLDERS

Dhaka, 18 August 2016 Md. Selim Reza FCA FCS
Partner
ARTISAN

Annual Report 2016
PATTERN OF SHAREHOLDING
As of June 30, 2016
Annexure I
(a) Parent/Subsidiary/Associated companies and other related parties (name wise details): N/A
(b) Directors, Chief Executive Officer, Company Secretary, Chief Financial Officer, Head of
Internal Audit and their spouses and minor children (name wise details):
SL Number of Shares held

Name Name of Spouse
No. Shareholding by the
spouse/
Children
01 Directors:
i Syed Manzur Elahi 3,85,550 Mrs. Niloufer Manzur -
ii Md. Rahmatullah 3,04,800 Mrs. Halima Rahmatullah 1,43,500
iii Syed Nasim Manzur 3,24,100 Mrs. Samia Huq -
iv Md. Hedayetullah 3,04,950 Mrs. Afia Hedayetullah -
v Md.Iftikhar-uz-zaman (MD of ICB) 64,34,550 Mrs. Shayla Zaman -
vi Faruq Ahmad Siddiqi
(Independent Director) - Begum Shamsur Nahar -
vii Sayed Alamgir Farrouk Chowdhury
(Independent Director) - Mrs. Israt Alamgir -
02 Chief Executive Officer:
Md. Rahmatullah 3,04,800 Mrs. Halima Rahmatullah 1,43,500
03 Head of Internal Audit and Director :
Md. Hedayetullah 3,04,950 Mrs. Afia Hedayetullah -
04 Chief Financial Officer:
Anup Kumar Mukherjee - Mrs. Swapna Mukherjee -
05 Company Secretary:
Jagadish Kumar Bhanja - Mrs. Nanda Bhanja -
(c) Executives (Top five salaried employees of the company, other than the Directors, Chief
Executive Officer, Company Secretary, Chief Financial Officer and Head of Internal Audit):
PATTERN OF SHAREHOLDING
Name Designation Shares held

M. A. Majed Executive Director 4,200
Ansarul Islam Executive Director -
Syed Abdul Matin General Manager (Finance) 50
Md. Sayeed Hossain General Manager (Commercial) -
Md. Nazrul Islam Khan General Manager (Production) -

Annual Report 2016
AUDIT COMMITTEE REPORT
Background
In accordance to the best practices of Corporate Governance, the Board of Directors of Apex Tannery
Limited established an Audit Committee on April 24, 2006 in its 19th Board Meeting as per Circulation of
BSEC Vide order no SEC/CMRRCD/2006-158/ Admin/02-06 dated 9 January, 2006 and Status of
compliance with the conditions imposed by the Commissions Notification No. SEC/CMRRCD/2006-158/
129/Admin/43 dated 03 July, 2012 issued under section 2CC of the Securities and Exchange
Ordinance, 1969:
The Audit Committee supports the Board in fulfilling its responsibilities more efficiently.
Composition of the Audit Committee
The Audit Committee is now composed of the following members:
Faruq Ahmad Siddiqi Independent Director Chairman of Audit Committee

Syed Nasim Manzur Director Member of Audit Committee
Md. Hedayetullah Director & Head of Internal Audit Member of Audit Committee
Sayed Alamgir Farrouk Chowdhury Independent Director Member of Audit Committee
Jagadish Kumar Bhanja Company Secretary Secretary of Audit Committee
The Chief Financial Officer attends the meeting by invitation only as and when necessary. The Company
Secretary functions as the Secretary of the Audit Committee.
Meeting
During the year ended 30th June, 2016, the Audit Committee held four meetings. Proceedings of the
Audit Committee Meetings were reported regularly to the Board of Directors. The details of attendance
of the Audit Committee Members have been shown below:
Audit committee meeting and attendance during the year ended 30 June, 2016
Name of Members No. of Meeting Held No. of Meeting attended

Faruq Ahmad Siddiqi 4 4
Syed Nasim Manzur 4 3

Md.Hedayetullah 4 3
Sayed Alamgir Farrouk Chowdhury 4 4
The Members who could not attend the meetings were granted leave of absence.
Role of the Audit Committee
The Audit Committee assisted the Board of Directors in fulfilling its responsibilities regarding the
Companys accounting and financial reporting process by monitoring the following:

Annual Report 2016
The integrity of the Companys financial statements
The independence, qualifications and performance quality of its external auditors
The Companys system of internal controls
The performance of the Companys internal audit process
The Companys compliance with laws, regulations and codes of conduct with a view to safeguard the
interest of all stakeholders of the Company
Summary of Activities
The Audit Committee carried out the following activities during the financial year ended June 30, 2016
Regulatory Compliance
The Committee examined whether the Companys procedures are in place to ensure compliance with
The laws and regulations framed by the regulatory Authorities (BSEC,DSE,CSE and RJSC)
Internal regulations approved by the Board of Directors.
The Company is duly following the rules and regulation of the Regulatory bodies and also strictly follows
areas with conflict of interest. The Committee was satisfied that the Company substantially complied
with these regulatory requirements
Financial Reporting
The Committee assisted the Board of Directors and the management to carryout their responsibilities of
preparing true and fair financial statements in accordance with the books of accounts and Bangladesh
Accounting Standards by:
Reviewing the adequacy and effectiveness of the internal control system and procedures in order to
provide reasonable assurance that all transactions are accurately and completely recorded in the
books of account.
Reviewing the integrity of the process by which financial statements are prepared from the books of
account
Reviewing the process by which compliance of provision of Bangladesh Accounting Standards.
The Committee also reviewed:
The quarterly and annual financial statements of the Company prior to recommending them for the
approval by the Board.
The annual audited financial statements of the company with external auditors prior to submission to
the Board for approval. The review focused particularly on changes of accounting policy and
compliance with applicable accounting standards as adopted in Bangladesh and other legal &
regulatory requirements.
Internal Control
The Committee examined whether the management has set up the appropriate compliance culture
across the Company in order to ensure that all employees have a clear understanding of their roles and
responsibilities. The Committee reviewed the arrangements made by the management for building up a
suitable Management Information System (MIS) including computerized systems and its applications
thereof.
Internal Audit
The Committee reviewed and discussed the relevant reports of special investigations which were
submitted by the Audit Team. They are as follows:
The annual audit plan for adequacy of scope and comprehensive coverage of these activities of the
Company.

Annual Report 2016
The audit programs, resources requirements for the year and assessed the performance of the
internal audit functions
The internal audit reports, audit recommendations and management responses to these
recommendations and actions taken to improve the system of internal control and procedures.
Exercise Internal Audit of Apex Tannery Limited. Review the effectiveness of Internal Audit functions
including performance and compliance with professional standards. Examine audit findings and
material weakness and monitor implementation of audit action plans.
The Committee advised the management to take effective steps for rectification of all the lapses and
weaknesses identified by internal audit and to take utmost care, so that such weaknesses and lapses
shall not be repeated in future. Department heads attended the meetings when their reports were
discussed.
External Audit
The Committee met with the external auditors at the conclusion of the annual audit and exchanged
views on their Audit Report. The Committee reviewed the findings and recommendations made by the
external auditors in order to remove the weaknesses as detected in the external auditing process.
The Committee reviewed the performance of the External Auditors and recommended to the Board on
their appointment and fees.
Approval of Financial Statements
The Audit Committee reviewed and examined the Annual Financial Statements for the year ended 30
June, 2016 prepared by the Management and audited by the External Auditors Malek Siddiqui Wali,
Chartered Accountants and recommended to place the same before the Board for consideration.
The Board approved the same at its 278th meeting held on 16 August, 2016.
Acknowledgement
The Audit Committee expressed of sincere thanks to the Chairman and members of the Board,
management and the Auditors for their support in carrying out its duties and responsibilities effectively.
On behalf of the Audit Committee,
Faruq Ahmad Siddiqi

Chairman of Audit Committee

Annual Report 2016
AUDITORS REPORT
To the Shareholders of Apex Tannery Limited
We have audited the accompanying statement of Financial Position of Apex Tannery Limited as at 30th
June, 2016 and the related Statement of Comprehensive Income, Statement of Changes in Equity,
Statement of Cash Flows and Notes for the year then ended, and a summary of significant accounting
policies and other explanatory notes.
Managements Responsibilities for the Financial Statements
The Management is responsible for the preparation and fair presentation of these financial statements
in accordance with Bangladesh Accounting Standards (BAS)/ Bangladesh Financial Reporting
Standards (BFRS), the Companies Act 1994, Bangladesh Securities and Exchange Commission Rules
1987 and other applicable laws and regulations and for such Internal control as management
determines, which is necessary to enable the presentation of financial statements that are free from
material misstatement, where 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 with Bangladesh Standards on Auditing (BSA). Those standards
require that we comply with ethical requirements and plan and perform the audit to obtain reasonable
assurance where 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. The procedures selected depend on the auditors judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor consider internal control relevant to the entitys
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the entitys internal control. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of accounting estimates made by management, as well as
evaluating the overall presentation of the financial statements.
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 prepared in accordance with Bangladesh Accounting
Standards/ Bangladesh Financial Reporting Standards (BFRS), give a true and fair view of the state of
the companys affairs as of 30th June, 2016 and of the results of its operations and its cash flows for the
period then ended and comply with the Companies Act 1994, relevant schedule of Bangladesh
Securities and Exchanges Commission 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 companys Statement of Financial Position, Statement of Comprehensive Income dealt with by
the report are in agreement with the books of accounts;
AUDITORS REPORT
d) The expenditures incurred and payments made were for the purpose of the companys business.
Dated: Dhaka Malek Siddiqui Wali

August 16, 2016 Chartered Accountants

Annual Report 2016
Statement of Financial Position as of June 30, 2016
Taka in thousand
As of As of
Notes June 30, 2016 June 30, 2015
Assets
Non-current assets
Property, plant and equipment 4 270,744 270,134
Capital work-in-progress 5 577,002 223,074
Advance for Land at Savar 6 57,431 57,431
Investments 7 49,374 52,764
Deferred tax assets 8 7,364 5,537
961,915 608,940
Current assets
Inventories 9 607,810 525,785
Trade and other receivables 10 139,112 163,829
Advances, deposits and prepayments 11 128,581 120,455
Cash & cash equivalents 12 41,715 333,932
917,218 1,144,001
Total Assets 1,879,133 1,752,941
Equity and Liabilities
Shareholders equity
Share capital 13 152,400 152,400
Share premium 425,333 425,333
Dividend equalization fund 44,888 44,888
Retained earnings 474,347 451,933
Fair valuation surplus of investment 14 41,818 45,208
1,138,786 1,119,762
Non-current liabilities
Retirement benefit obligations 15 104,803 90,790
Government Grant 16 59,942 -
164,745 90,790
Current liabilities
Short-term loan 17 - -
Working capital loan 18 392,889 423,488
Trade payables 19 43,797 42,300
Other payables 20 86,841 19,255
Provision for income-tax 21 52,075 57,346
575,602 542,389
Total Equity and Liabilities 1,879,133 1,752,941
STATEMENT OF FINANCIAL POSITION
Net asset value per share (NAVPS) Tk. 74.72 73.47
The annexed notes form an integral part of these financial statements.

For and on behalf of the Board of Directors
Md. Rahmatullah Md. Iftikhar-uz-zaman Jagadish Kumar Bhanja

Managing Director Director Company Secretary
Signed in terms of our annexed report of even date.


Annual Report 2016
Statement of Comprehensive Income for the year ended June 30, 2016
Taka in thousand
Notes June 30, 2016 June 30, 2015
Sales 23 2,158,363 3,771,638

Cost of sales
Cost of goods sold 24 (1,867,181) (3,431,702)
Freight & forwarding 25 (38,501) (66,546)
(1,905,682) (3,498,248)
Gross profit 252,681 273,390
Operating expenses
Administrative expenses 26 (41,958) (40,399)
Marketing expenses 27 (88,766) (118,525)
Directors' remuneration (10,260) (10,260)
Legal & audit fees 28 (547) (513)
Depreciation (Schedule-A-01) (5,003) (6,187)
(146,534) (175,884)
Operating Profit 106,147 97,506
Bank interest expenses & charges 29 (34,209) (30,227)
Non operating income
Other income 30 43,574 56,456
Profit for the year 115,512 123,735
Contribution to workers profit participation fund (5,501) (5,892)
Profit before income tax 110,011 117,843
Income tax
Current tax expenses 31 (20,844) (23,066)
Deferred tax income 32 1,827 492
(19,017) (22,574)
Net profit after tax 90,994 95,269
Other Comprehensive Income
Fair valuation surplus of investments (unrealized) (3,390) 807
Total comprehensive Income 87,604 96,076
EPS without fair valuation surplus (Tk.) 33 5.97 6.25
STATEMENT OF COMPREHENSIVE INCOME




Annual Report 2016
Statement of Cash Flow for the year ended June 30, 2016
Taka in thousand
June 30, 2016 June 30, 2015
A. Cash flow from operating activities

Collections from turnover/bills receivable and other income 2,224,533 3,823,445
Payments for purchase of leather, chemicals, spare-parts,
payments of creditors and other expenses (2,118,950) (3,664,501)
Interest paid (34,209) (30,227)
Payments to workers profit participation fund (5,837) (4,878)
Income tax paid (18,629) (31,695)
Net cash generated by operating activities 46,908 92,144
B. Cash flow from investing activities

Acquisition of property, plant and equipment (18,998) (12,550)
Capital work-in-progress (283,011) (223,074)
Advance payment for land at Savar - (16,397)
Net cash used in investing activities (302,009) (252,021)
C. Cash flow from financing activities

Loans received/(paid) (30,599) 193,312
Government Grant 59,942 -
Dividend received/(paid) (66,459) (66,400)
Net cash used in financing activities (37,116) 126,912
Increase / (decrease) in cash and cash equivalents (A+B+C) (292,217) (32,965)
Opening cash and cash equivalents 333,932 366,897
Closing cash and cash equivalents 41,715 333,932

Net operating cash flows per share (NOCFPS) Tk. 3.08 6.05


STATEMENT OF CASH FLOW


Annual Report 2016
Statement of Changes in Equity
For the year ended June 30, 2016

Taka in thousand
Share Share Dividend Retained Fair
Particulars Capital Premium Equalization Earnings Valuation Total
Fund Surplus
As at June 30, 2015 152,400 425,333 44,888 451,933 45,208 1,119,762

Net Profit 90,994 - 90,994
Cash dividend for 2014-2015 (68,580) - (68,580)
Fair valuation surplus (3,390) (3,390)
As at June 30, 2016 152,400 425,333 44,888 474,347 41,818 1,138,786
For the year ended June 30, 2015 Taka in thousand
Share Share Dividend Retained Fair

Particulars Capital Premium Equalization Earnings Valuation Total
Fund Surplus
As at June 30, 2014 152,400 425,333 44,888 425,244 44,401 1,092,266

Net Profit 95,269 - 95,269
Cash dividend for 2013-2014 (68,580) - (68,580)
Fair valuation surplus 807 807
As at June 30, 2015 152,400 425,333 44,888 451,933 45,208 1,119,762

STATEMENT OF CHANGES IN EQUITY


44 t Apex Tannery Limited

Annual Report 2016
Notes to the Financial Statements for the year ended June 30, 2016
1. Reporting entity
a) Company profile
Apex Tannery is the largest tannery in Bangladesh and one of the largest in South Asia. It is a
100% export oriented company. The Company is using state of the art machineries from Italy,
France and Germany. Apex Tannery Limited was incorporated as a private limited company on
26th day of July 1976 under Companies Act 1913 and was converted into a public limited
company in 1986. The shares of the Company are publicly traded at Dhaka Stock Exchange
Limited and Chittagong Stock Exchange Limited. The address of the registered office is 127
Hazaribagh T/A, Dhaka-1209.
b) Nature of business
The principal activities of Apex Tannery are to produce high quality leather, by using Italian
chemicals, technology, complying with world fashion standards and specifications. Its annual
capacity is about 26 million Sft. of finished goat and cow leather. Apex exports to Europe, China,
South America and all major leather market of the world. It has two manufacturing facilities; Unit
I situated at Hazaribagh and Unit II situated at Shafipur, Gazipur both engaged in processing
and finishing cow and goat leather for 100% export. Unit II has been leased out to Apex
Footwear Ltd. for 10 years from 01.10.2011.
2. Basis of preparation of financial statements
a) Statement of compliance
The financial statements have been prepared in accordance with Bangladesh Accounting
Standards (BAS), Bangladesh Financial Reporting Standards (BFRS), Companies Act 1994,
The Securities and Exchange Rules, 1987 and other applicable laws and regulations.
b) Basis of measurement
The financial statements have been prepared on historical cost basis except
I. Note 7 : Investment in marketable securities which is measured at fair value
II. Note 15 : Retirement benefit obligations
c) Date of authorization
The board of directors has authorized these financial statements on August 16, 2016
d) Functional and presentation currency
These financial statements are presented in Bangladesh Taka which is the companys functional
currency.
NOTES TO THE FINANCIAL STATEMENTS
e) Use of estimates and judgments

The preparation of financial statements requires management to make judgments, estimates
and assumptions that affect the application of accounting policies and reported amounts of
assets, liabilities, income and expenses. Estimates and underlying assumptions are reviewed
on an on going basis. Revisions of accounting estimates are recognized in the period in which
the estimates are revised or any future periods affected.
In particular, information about significant areas of estimates and judgments in applying
accounting policies that have the most significant effect on the amount recognized in the
financial statements are described in the following notes:
I. Note 8 Deferred tax assets
II. Note 9 Inventory valuation
III. Note 21 Provision for tax

Annual Report 2016
f) Reporting period
The reporting period of the company covers one year from July 1, 2015 to June 30, 2016.
3. Significant accounting policies
The accounting policies set out below have been applied consistently to all period presented in
these financial statements.
a. Property, plant & equipment
I. Recognition and measurement: Property, plant & equipment (PPE) are initially measured at
cost. After initial recognition an item of PPE carried at cost less accumulated depreciation in
accordance with BAS 16 "Property plant & equipment". Cost of PPE represents cost of
purchase price, import duties and non refundable purchase taxes after deducting trade
discounts and rebates and any cost directly attributable to bringing the assets to the location
and condition necessary for it to be capable of operating in the manner intended by
management.
II. Subsequent cost: The costs of the day-to-day servicing of PPE are recognized in the
Statement of Comprehensive Income. The costs of replacing of PPE are recognized in the
carrying amount of the item if it is probable that the future economic benefits embodied within
the part will flow to the Company and its cost can be measured reliably.
III. Depreciation: The Company uses reducing balance method to depreciate property, plant &
equipment. No depreciation is charged on Land and Land development. Depreciation of an
asset begins when it is available for use i.e. when it is in the location and condition necessary
for it to be capable of operating in the manner intended by management. Depreciation of an
asset ceases at the earlier of the date that the asset is classified as held for sale ( or included
in a disposal group that is classified as held for sale) in accordance with BFRS 5 and the date
that the assets are derecognized. The rates of depreciation and category of property, plant
and equipment are as follows:
Building 10%
Plant & machinery 15%
Furniture & fittings 10%
Vehicles 20%
Depreciation has been charged to cost of goods sold & administrative expenses consistently.
b. Inventories
Inventories comprise of raw materials, work-in-process and finished goods, chemicals and
spare-parts. They are stated at a lower of cost and net realizable value, in accordance with BAS
2 "Inventories". The cost of inventories is measured by using the weighted average cost formula.
The cost of inventories represents all costs of purchase, costs of conversion and other costs NOTES TO THE FINANCIAL STATEMENTS
incurred in bringing the inventories to their present location and condition. Net realizable value
is the estimated selling price in the ordinary course of business less the estimated cost of
completion and selling expenses.
c. Trade and other receivables
These are carried at original invoice value considered good and collectible.
d. Cash and cash equivalents
Cash and cash equivalents comprises cash in hand, cash at Bank and FDR which is readily
convertible to a known amount of cash and be subject to an insignificant risk of changes in
value.
e. Trade and other payables
These are recognized for amounts to be paid in the future for goods and services.

Annual Report 2016
f. Income Taxes
I) Current Income Tax
The corporate tax rate for publicly listed companies is 25%. However companies deriving
income from export are entitled to exemption of 50% tax on such income. Since the company is
100% export-oriented, 50% of trading income will not be subject to tax under paragraph 28 of
Part A of the Sixth Schedule of the IT Ordinance, 1984. The provision made has been calculated
on the above basis, which is adequate.
II) Deferred Income Tax
Deferred tax is recognized on differences between the carrying amounts of assets and liabilities
for financial reporting purpose and the corresponding tax bases used for taxation purpose.
Deferred tax liabilities are generally recognized for all taxable temporary differences, and
deferred tax assets are generally recognized for all deductible temporary differences to the
extent that it is probable that taxable profit will be available against which those deductible
temporary differences can be utilized.
g. Employee Benefits
The Company maintains both defined contribution plan and defined benefit plan for its eligible
permanent employees.
I) Defined contribution plan (Provident fund)
The Company operates a contributory Provident fund for its eligible permanent employees. The
fund is approved by the National Board of Revenue (NBR). The fund is administered by a Board
of Trustee and is funded by contribution partly from the employee and partly from the Company
at predetermined rates. The contribution is invested separately from the Companys assets.
II) Contribution to workers profit participation/ welfare funds:
The Company provides 5% of its profit before tax as a contribution to workers profit participation/
welfare funds in accordance with the Bangladesh Labour Act 2006 (as amendment in 2013).
III) Defined benefit plan (Gratuity)
The Company maintains an unrecognized gratuity fund for its permanent employees, under
which an employee is entitled to the benefits depending on the length of services and last drawn
basic salary.
h. Statement of Cash Flow
Statement of Cash flow is prepared in accordance with BAS-7 under direct method and as
outlined in the Securities and Exchange Rule, 1987.
i. Transaction with related parties
The company has carried in arms length transactions with Apex Footwear Limited, Pioneer
Insurance Company Limited, Mutual Trust Bank Ltd. and Guardian Life Insurance Ltd. in the
normal course of business.
j. Foreign currency transaction
Transactions in foreign currencies are converted into Bangladesh Taka at the exchange rate
prevailing on the date of transaction in accordance with provisions of BAS 21 "The effects of
changes in foreign currency rates".
k. Revenue recognition
I. Sale of goods: The Company recognizes revenue when risk and rewards associated with
ownership has been transferred to the buyer, which satisfied all the conditions for the revenue
recognition as provided in BAS 18 "Revenue Recognition".
II. Dividend income is recognized when the right to received payment is established
III. Interest income is recognized when accrued on a time proportion basis
IV. Rental Income Recognition when accrued on the tenancy agreement basis

Annual Report 2016
l. Earnings per share (EPS)
The Company calculates Earnings per share (EPS) in accordance with BAS 33 "Earnings per
share" which has been shown on the face of Statement of Comprehensive Income.
m. Components of the Financial Statements
According to the Bangladesh Accounting Standard (BAS) 1 presentation of Financial
Statements, the complete set of Financial Statements includes the following components:
i. Statement of Financial Position as at June 30, 2016.
ii. Statement of Comprehensive Income for the year ended June 30, 2016.
iii. Statement of Changes in Equity for the year ended June 30, 2016.
iv. Statement of Cash Flow for the year ended June 30, 2016.
v. Accounting policies and explanatory notes.
m. Subsequent Disclosure of events occurring after the Reporting period
There is no adjusting event between the end of the Reporting period and the date when
Financial Statements are authorized for issue of such importance non-disclosure of which would
affect the availability to the user of the financial statement to make proper evaluation and
decision.
n. Impairment
The carrying amount of assets other than inventories and deferred tax assets are reviewed at
each financial position date to determine whether there is any indication of impairment. If any
such indication exists, the recoverable amount is estimated. An impairment loss is recognized in
the Statement of Comprehensive Income when the carrying amount of the asset exceeds its
recoverable amount.
o. Segment reporting
The Companys operation predominantly comprises only one segment i.e. Leather; hence no
segment reporting is felt necessary.
As of As of
June 30, 2016 June 30, 2015
Taka Taka
4. PROPERTY , PLANT AND EQUIPMENT
Details of Property, plant and equipment and depreciation as of June 30, 2016 are shown in the
annexed Schedule -A
Opening Balance (At Cost) 878,677,445 866,127,059

Add: Addition during the year 18,998,030 12,550,386
897,675,475 878,677,445 NOTES TO THE FINANCIAL STATEMENTS
Less: Transferred during the year - -
Closing Balance (At Cost) 897,675,475 878,677,445
Less: Accumulated Depreciation 626,931,545 608,543,437
Written Down Value 270,743,930 270,134,008
5. CAPITAL WORK-IN-PROGRESS 577,002,237 223,073,548
This represents construction cost of new factory building at Savar and acquiring machineries
which are under progress and not put to use during the year under audit. Construction work has
started from March 2015.

Annual Report 2016
As of As of
June 30, 2016 June 30, 2015
Taka Taka
6. ADVANCE FOR LAND AT SAVAR
57,431,401 57,431,401
The amount paid to Bangladesh Small and Cottage Industries Corporation (BSCIC) against
300,000 SFT Land at BSCIC Leather Industrial Park, Savar, Dhaka.
7. INVESTMENTS
Apex Footwear Limited (136,700 shares @ 319.40) 43,661,980 47,052,140
Central Depository Bangladesh Limited (571,181 shares @ 10.00) 5,711,810 5,711,810
49,373,790 52,763,950
Investment in shares of Apex Footwear Limited has been recorded at fair value as per BAS-39.
The quoted price was Taka 319.40 per Taka 10 each share as at June 30, 2016 and companys
cost price for 136,700 shares was Taka 13.49
8. DEFERRED TAX LIABILITIES (ASSETS) (7,364,081) (5,537,353)

Deferred tax assets (13,100,375) (11,348,739)
Deferred tax liabilities 5,736,294 5,811,386
8.1 Deferred tax assets
Provision for gratuity (13,100,375) (11,348,739)
8.2 Deferred tax liabilities
Property, plant & equipment 5,736,294 5,811,386
9. INVENTORIES
Goatskins
- Raw 290,733 15,337,377 18,863,289
- Wetblue 581,290 33,475,540 41,661,975
- Work in Process 109,953 6,829,115 12,081,944
- Crust/Finished 629,405 42,799,517 47,476,643
Cowhides
- Raw 439,696 40,452,014 42,416,121
- Wetblue 1,109,449 126,992,139 93,144,288

- Work in Process 245,133 30,264,642 18,847,105
- Crust/Finished 685,465 97,212,485 96,661,495
Chemicals 193,726,244 133,621,683
Spare-parts 20,720,306 21,010,760
607,809,379 525,785,303
Inventories are valued at lower of cost price and net realizable value.
Inventories at the end of the year are equivalent to 119 days consumption based on current
years cost of goods sold.
A team, consisting of Auditors and Management staff, carried out physical verification of the
inventories as of June 30, 2016.
Inventories were hypothecated to Agrani Bank Ltd., Amin Court Corporate branch as security
of working capital loan.

Annual Report 2016
As of As of
June 30, 2016 June 30, 2015
Taka Taka
10. TRADE AND OTHER RECEIVABLES
Export bills receivable 133,564,509 155,612,462
Rental income receivable 5,000,000 5,000,000
Interest receivable 547,283 3,216,578
139,111,792 163,829,040
Most of the above bills receivable remained from the sales of June 2016 and were considered
good which will be collected within 90 days.
Rental income receivable from Apex Footwear Limited.
11. ADVANCE, DEPOSITS & PREPAYMENTS

L/C accounts (Goods in transit) 25,086,750 9,075,084
Advance income-tax 93,471,542 100,957,226
Advance rent 1,461,833 1,566,833
Advance to staff and workers 1,122,813 559,250
Advance to suppliers & Contractors - 1,163,652
Bank guarantee margin 776,340 731,764
Security deposit 6,661,907 6,401,200
128,581,185 120,455,009
L/C accounts (goods-in-transit) represent cost incurred on import of chemicals, spare parts
which will be adjusted against respective inventory items.
Advance income taxes are made to statutory authorities.
Rent agreement made with Rana Leather Industries Ltd. for using their premises.
Advance due from staff & workers are regularly being realized through their salaries.
In the opinion of the Directors, all current assets, investments, loans and advances have, on
realization in the ordinary course of business, a value at least equal to the amounts at which
they are stated in the Statement of Financial Position.
There is no amount of loans and advances due for payment for a period of more than 12
months from the date of Statement of Financial Position.
There is no aggregate amount due from Directors, Officers of the Company or by any
associated companies.
There are no claims against the company, which can be acknowledged as bad debt.
12. CASH AND CASH EQUIVALENTS
Cash in hand
Head Office 237,164 5,439,561
Factory 263,355 204,544
Cash at Banks
Agrani Bank Ltd. 17,576,138 34,604,455
Rupali Bank Ltd. 16,196 17,346
Mercantile Bank Ltd. 4,947,444 3,366,651
Mutual Trust Bank Ltd. 7,406,395 325,830
State Bank of India 4,150,251 4,235,866
FDR 7,118,319 285,737,430
41,715,262 333,931,683
Cash balances were physically verified and bank balances were reconciled.

Annual Report 2016
As of As of
June 30, 2016 June 30, 2015
Taka Taka
13. SHARE CAPITAL
Authorized Capital 500,000,000 500,000,000
Issued, subscribed & fully paid-up capital 152,400,000 152,400,000
Distribution schedule showing the number of shareholders and their share holdings in
percentage has been disclosed below:
Number
of share Range of Holdings Total Holdings %
Holders
7,907 Less than & equal 5,000 shares 4,036,663 26.48
178 5,001 shares to 50,000 shares 1,971,889 12.94
11 50,001 shares to 100,000 shares 837,975 5.50
6 100,001 shares to 200,000 shares 846,261 5.55
1 200,001 shares to 300,000 shares 284,000 1.86
4 300,001 shares to 400,000 shares 1,014,600 6.67
1 400,001 shares to 500,000 shares 4,13,223 2.71
2 500,001 shares to 1000,000 shares 1,387,389 9.10
2 over 1000,000 share 4,448,000 29.19
8112 15,240,000 100.00
14. FAIR VALUATION SURPLUS OF INVESTMENTS

Investment in shares of Apex Footwear Limited:
Fair valuation surplus as of 30-06-2015 45,208,057
Fair value of 136,700 shares @ 344.20 as of 30-6-2015 47,052,140
Fair value of 136,700 shares @ 319.40 as of 30-6-2016 43,661,980 3,390,160
Fair valuation surplus as of 30-06-2016 41,817,897
15. RETIREMENT BENEFIT OBLIGATIONS

Opening balance 90,790,015 79,688,421
Provision for the year 16,223,321 12,824,631
Payments during the year (2,210,233) (1,723,037)

Closing balance 104,803,103 90,790,015
16. GOVERNMENT GRANT 59,941,946 -
The amount received from Bangladesh Small and Cottage Industries Corporation (BSCIC),
Govt. of Bangladesh out of total Tk. 10,04,05,367.45 for the purpose of shifting compensation.
According to BAS 20 (Bangladesh Accounting Standard 20), when conditions of future
performance-(1) Completion of construction work of Factory Building and (2) Starting of
commercial production at Savar are met, the amount of grant will be deducted in arriving at the
carrying value of the Asset (Factory Building), in which case the grant is recognized in income
over the life of the asset by way of a reduced depreciation charge.

Annual Report 2016
As of As of
June 30, 2016 June 30, 2015
Taka Taka
17. SHORT-TERM LOAN 50 50
Short-term loan taken from Agrani Bank Ltd., Amin Court Corporate Branch, Motijheel C/A,
Dhaka-1000 as KORBANI ADVANCE for procurement of raw hides and skins after Korbani. This
loan was sanctioned by Agrani Bank Ltd. against existing fixed assets and inventory as
securities.
18. WORKING CAPITAL LOAN

Agrani Bank Ltd. 392,888,714 423,488,039
The Company has taken cash-credit (hypothecation) facilities from Agrani Bank Ltd., Amin Court
Corp. Branch, Motijheel C/A, Dhaka-1000 against existing fixed assets and inventories as
securities. Apart from the above, company has no other short term credit facilities.
19. TRADE PAYABLES

Hides & Skins 43,796,927 42,300,011
This represents the amount payable for raw skins & hides.
20. OTHER PAYABLES
Contribution to WPP & WF 6,624,210 6,961,012

Liabilities for freights, spare parts & other expenses 9,111,149 12,140,758
Liabilities to Suppliers of Building Materials 70,917,900 -
Audit fees 187,500 153,333
86,840,759 19,255,103
Payment against outstanding expenses were made subsequently in due time. For other
credits, payments are generally made by due date.
There are no liabilities for expenses due more than 12 months.

In the opinion of the Directors, no liabilities in the Statement of Financial Position are at a value
less than the amount at which it is repayable at the date of the Statement of Financial Position.
21. PROVISION FOR INCOME TAX

Balance as per last year 57,345,956 60,013,469
Add: During the year 20,843,735 23,066,073
78,189,691 83,079,542
Adjustment of income tax for assessment year 2012-2013 - (25,733,586)
Adjustment of income tax for assessment year 2013-2014 (26,114,417) -
52,075,274 57,345,956

Annual Report 2016
June 30, 2016 June 30, 2015
Taka Taka
22. PROPOSED DIVIDEND 60,960,000 68,580,000
The Board of Directors proposed dividend @40% for the year at the Board Meeting held on
August 16, 2016.
The proposed dividend is not recognized as a liability at the Statement of Financial Position date
in accordance with Bangladesh Accounting Standard (BAS) 10 Events after the Reporting
Date.
Bangladesh Accounting Standard (BAS) 1 Presentation of Financial Statements also require
that the dividend proposed after the Statement of Financial Position date but before the financial
statements are authorized for issue, be disclosed either on the face of the Statement of
Financial Position as a separate component of equity or in the notes to the financial statements.
The provision of Companies Act, 1994, requires that dividend stated to be in respect of period
covered by the financial statements and that are proposed or declared after the Statement of
Financial Position date but before approval of the financial statements should be either adjusted
or disclosed.
Considering the requirements of BAS-1, BAS-10 and Companies Act 1994, proposed dividend
has been disclosed in the financial statements.
23. SALES
Sft. Taka Taka
Finished Cow Leather 11,488,637 1,930,145,353 3,105,350,707
Finished Goat Leather 2,022,129 228,217,522 666,287,095
13,510,766 2,158,362,875 3,771,637,802
24. COST OF GOODS SOLD

Opening stock 1,218,685 144,138,138 115,783,500
Add: Cost of production 13,606,951 1,863,054,609 3,460,056,617
Less: Closing stock 1,314,870 140,012,002 144,138,138
Cost of goods sold 13,510,766 1,867,180,745 3,431,701,979
Cost of production
Goatskins consumed 34 91,374,876 311,852,899
Cowhides consumed 35 1,025,699,365 2,017,914,642
Chemicals consumed 36 471,614,334 859,612,385
Spare parts consumed 37 17,607,968 21,070,852
Packing materials 3,372,680 4,966,773
Direct labour 96,735,547 99,910,579
Depreciation (Schedule A-01) 10,368,910 10,766,092
Factory overhead 38 146,280,929 133,962,395
1,863,054,609 3,460,056,617

Annual Report 2016
June 30, 2016 June 30, 2015
Taka Taka
25. FREIGHT & FORWARDING 38,501,061 66,545,992
Freight and forwarding represents cost of shipment of finished leather.
26. ADMINISTRATIVE EXPENSES

Salary & allowances 26,352,916 21,941,201
Gratuity 2,028,389 5,121,923
Staff welfare 2,838,164 3,000,084
Telephone, telex & fax 171,945 186,106
Repairs & maintenance 262,630 219,830
Printing & stationery 161,396 196,032
Postage 11,194 39,137
Vehicle maintenance 1,790,253 1,515,222
Fuel & lubricant 1,901,412 1,755,171
Electricity & water 1,359,561 1,100,503
Social responsibilities (CSR) 1,280,828 1,150,223
Renewal & registration 844,646 1,010,784
Advertisement 659,095 998,235
Entertainment 166,681 233,868
AGM and EGM expenses 1,006,366 930,813
Forms & fees 297,166 309,667
Membership subscription 385,395 333,455
Board meeting fees 440,400 356,500
41,958,437 40,398,754
Salary & allowances increased because of annual increment

Repairs & maintenance increased due to repairs of Air Conditioners
Vehicle maintenance increased because of aged vehicles and increase in quantity of vehicles
Fuel & lubricant increased due to increase of fuel price
Electricity & water increased due to rate increase
Corporate Social Responsibilities (CSR) expenses increased because of more activities on
CSR incurred during the year
Membership subscription increased due to increase of subscription fees
27. MARKETING EXPENSES

Sales commission 75,344,036 104,304,311
Sales promotion 13,421,613 14,220,033
88,765,649 118,524,344
Details of sales commission paid to agents are given on the next page.

Annual Report 2016
Sales commission:
We certify that the local & foreign agents, whose details are given below, have no connection whatsoever with any Director.
Local/Foreign Agent Address Amount in Taka

ABC Leather House # 50/1(1st floor) Road # 11/A, Dhanmondi, Dhaka-1209. 8,055,966
Abedin Corporation House # 50/1(1st floor) Road # 11/A, Dhanmondi, Dhaka-1209. 6,478,910
Ashok Lal Lala A-15, Sector-9, Noida, India. 3,595,170
Conceria Everest AG Castano Primo, Itally 2,631,257
Cheng Hui Shan No. 24, Alley-2, Lane 104, wenhua S. Rd. Nantow, Taiwan 1,892,074
Kema Trading 77, Hazaribagh T/A, Dhaka 4,146,807
Europa International House # 61, Road # 4, Block # B, Section -12, Mirpur, Dhaka 185,961
Ecoton Leather 29/F, Sanataughor (1st floor), Hazaribagh, Dhaka-1209 143,805
Euro Asia Baitul Khair (2nd floor), Room # 20, Purana Paltan, Dhaka 174,183
Lee Je Yong 191-28, Kyohgsinri Nammyeon Yongju-City, Korea 416,513
Schmenger Zweibrucker Strabe 29, 66953 Pirmasens, Germany 2,087,955
Shampan Trading Corp. 49 Hazaribagh T/A, Dhaka-1209. 9,911,449
Dairath Co. Ltd. Vill: Chamta, PO: Puran Dinara Hat. PS: Naria, Dist.: Shariatpur 269,421
Fair International 86, Shere-e-Bangla Road, Dhaka-1209 91,360
Famaz International Via Grande, 22-24 Santa Croce, Italy 9,08,060
PRP International 594/C, Khilgaon Police Line, Khilgaon, Dhaka-1219 4,231,654
Ridge International 87/1, Moneshwar Road, Dhaka-1209. 6,299,154
Rimex International H # 28, R # 11, Block # Kha, P.C. Culture Housing, Mohammadpur, Dhaka 528,087
CDF S.R.L. Via Consortile Zona A.S.L, S.N.C 81032 Carinaro (CE), Italy 848,845
Colomer Japan Co. Ltd. 1-23-2, Ishihara, Sumida-KU, Post code 130-0011, Tokyo, Japan 88,159
Megumi International 66/14, West Razabazar (1st floor), Dhaka. 3,097,933
Universal Leather Corp. 27 Dilkusha C/A, 5th Floor, Dhaka-1000 1,370,228
Panna Zaman & Co. House # 390, Road # 29, New DOHS Mohakhali, Dhaka-1206 45,948
World Trade Leather 68/7/A, Jigatala (3rd floor), Dhaka-1209. 444,003
Inleather Via Di Pelle, 2956029 B. Croce Sull Arno (PI), Italy 349,272
Leather Export Co. 86 Sher-e-Bangla Road, 2nd floor(North side), Zigatola, Dhaka 87,122
Global Leather House # 86, Road # 17, Section # 14, Uttara Model Town, Dhaka 85,431
Yip Yan Fai House # 8, Narcissua path, Phase 1E, Palm Springs, Hong kong 673,719
Innovate Future Co. 93/1/A, Tin Mazar Road, Hazaribagh, Dhaka-1209 37,171
J.M. Corporation 20, Hazaribagh, Dhaka 1,543,035
Kashem Enterprise 68/7/A, Jigatala (3rd floor), Dhaka-1209. 558,581
Keywin Trading Corp. Concord Tower, 123 Kazi Nazrul Islam, Avenue, Dhaka. 10,841,407
Md. Babul 202, New Paltan Line, Azimpur, Dhaka-1205 1,253,442
PHU Focus 30-234 Krakow UL, Krowej Jadwigi 303 F/A, Poland 1,815,592
Bangla Leather Corp. 124 Hazaribagh T/A, Room # 43-44, Dhaka-1209 156,362
7,53,44,036

Annual Report 2016
June 30, 2016 June 30, 2015
Taka Taka
28. LEGAL & AUDIT FEES
Legal fees (Professional fees) 360,000 360,000
Audit fees 187,500 153,333
547,500 513,333
29. BANK INTEREST EXPENSES AND CHARGES
Bank interest 33,212,471 29,312,280
Bank charges 996,306 914,535
34,208,777 30,226,815
Bank interest and charges increased due to the Company availed more amount of loan during
the year under audit as compared to the previous year.
30. OTHER INCOME

Dividend income-Cash 2,121,421 2,179,803
Interest on FDR 15,464,898 28,863,885
Rental income 30,000,000
Less: Depreciation (Schedule A-02) 3,016,321
Rent, rates & taxes 187,070
Insurance premium 808,858 (4,012,249) 25,987,751 25,412,062
43,574,070 56,455,750
Cash dividend amounting Taka 2,121,421 included cash dividend from Apex Footwear Limited
Tk. 683,500 and Tk. 1,437,921 from Central Depository Bangladesh Limited. Rental income
of Unit II was received / receivable from Apex Footwear Limited as monthly rent @ Tk.
2,500,000.
31. CURRENT TAX EXPENSES

Rate of Tax Taxable Profit Tax Tax
On export profit after 25% on 50% 80,450,348 10,056,293 9,061,125
adjustment of gratuity of income
On other income
Dividend on investment (Cash) 20% 2,121,421 424,284 435,961
Rental income 25% 25,987,752 6,496,938 6,353,016

Interest on FDR 25% 15,464,898 3,866,225 7,215,971
124,024,419 20,843,740 23,066,073
32. DEFERRED TAX EXPENSES (INCOME)

Deferred tax assets closing (7,364,081) (5,537,353)
Deferred tax assets opening 5,537,353 5,045,074
Total (1,826,728) (492,279)
33. EARNINGS PER SHARE (EPS)

COMPONENTS OF EARNINGS PER SHARE ARE AS FOLLOWS:
Earnings per share without fair valuation surplus of investment:
Net operating income 3.82 3.46
Net other income 2.15 2.79
Earnings per share (Tk.) 5.97 6.25

Annual Report 2016
June 30, 2016 June 30, 2015
34. GOATSKINS CONSUMED (RAW & WETBLUE)
Sft. Taka Taka

Opening stock (raw) 273,381 18,863,289 12,694,732
Add: Purchase this year 1,722,247 74,409,700 330,562,273
Less: Closing stock 290,733 15,337,377 18,863,289
1,704,895 77,935,612 324,393,716
Add: Opening stock (wetblue) 555,493 41,661,975 32,577,536
1,679,098 86,122,047 315,309,277
Add: Opening WIP 152,936 12,081,944 8,625,566
Less: Closing WIP 109,953 6,829,115 12,081,944
1,722,081 91,374,876 311,852,899
35. COWHIDES CONSUMED (RAW & WETBLUE)

Opening stock (raw) 411,807 42,416,121 29,951,337
Add: Purchase this year 12,317,130 1,069,000,646 2,054,086,427
12,289,241 1,070,964,753 2,041,621,643
Add: Opening stock (wetblue) 802,968 93,144,288 73,812,674
Less: Closing stock 1,109,449 126,992,139 93,144,288
11,982,760 1,037,116,902 2,022,290,029
Add: Opening WIP 147,243 18,847,105 14,471,718
Less: Closing WIP 245,133 30,264,642 18,847,105
11,884,870 1,025,699,365 2,017,914,642
36. CHEMICAL CONSUMED
Opening Stock 133,621,683 139,461,034

Add: Purchase this year 531,718,895 853,773,034
Less: Closing stock 193,726,244 133,621,683
471,614,334 859,612,385
Chemical purchase during the year:
MT USD Euro Taka Taka

Imported 3,974 3,875,412 2,422,400 499,739,540 746,264,522
Local 261 00 00 31,979,355 107,508,512
4,235 3,875,412 2,422,400 531,718,895 853,773,034
37. SPARE-PARTS CONSUMED

Opening stock 21,010,760 23,246,078
Add: Purchase this year 17,317,514 18,835,534
Less: Closing stock 20,720,306 21,010,760
17,607,968 21,070,852

Annual Report 2016
June 30, 2016 June 30, 2015
Taka Taka
38. FACTORY OVERHEAD
Salary & allowances 66,611,784 57,205,708
Gratuity 7,119,927 6,112,210
Staff welfare 2,317,889 2,198,739
Entertainment 1,205,861 1,261,695
Postage 166,714 166,440
Printing & stationery 340,164 457,413
Repair & maintenance 11,941,101 11,177,430
Insurance premium 8,761,784 7,559,535
Telephone & fax 212,013 195,162
Vehicle maintenance 2,605,093 2,065,210
Carriage inward 8,826,279 11,823,555
Power, gas & water 31,690,863 29,427,873
Consumable store 469,425 576,759
Rent, rates & taxes 3,724,676 3,469,904
Conveyance 287,356 237,751
Miscellaneous expenses - 27,011
146,280,929 133,962,395
Salary & allowances, gratuity and Staff welfare increased because of annual increment
Repair & maintenance expenses increased due to overhauling of Generator
Insurance premium increased due to holding of more inventory as well as credit facilities
Telephone expenses increased due to more communication was incurred with customers during the period
Vehicle maintenance increased due to old age of vehicles
Power, gas & water increased because of rate increase
Rent, rates & taxes increased due to increase of Municipal Tax and factory rent
Conveyance increased due to fare increase
39. AGGREGATE AMOUNT PAID TO THE DIRECTORS AND KEY MANAGEMENT PERSONNEL

June 30, 2016 June 30, 2015
Taka Taka NOTES TO THE FINANCIAL STATEMENTS
Directors
Meeting Fees 440,400 356,500
Remuneration 10,260,000 10,260,000
Key Management Personnel
Salary & allowance 21,591,450 18,849,544
40. DISCLOSURE AS PER SCHEDULE XI PART II OF THE COMPANIES ACT 1994.
40.1 EMPLOYEE POSITION

The Company engaged 822 employees of which 454 is permanent employees and 368 is casual
and temporary workers as required. All employees received total salary of above Tk. 36,000.00
per annum.

Annual Report 2016
40.2 PRODUCTION CAPACITY UTILIZATION
Particulars Sft. per year %

Installed Capacity 18,500,000 71.00
Rented Capacity (Wet blue only) 7,500,000 29.00
Total Capacity 26,000,000 100.00
Actual Production 13,606,951 52.33
41. RELATED PARTY DISCLOSURES

The Company carried out a number of transactions with related parties in the normal course of
business, The nature of transactions and their values are shown below:
Name of the Related Parties Nature of Transactions Value in Tk. Balance in Tk.
Apex Footwear Ltd. Lease Rental 30,000,000 5,000,000
Apex Footwear Ltd. Dividend received 6,83,500 -
Pioneer Insurance Company Ltd. Fixed Assets & LC Related 8,761,784 -
Mutual Trust Bank Ltd. Current Deposit 145,083,000 7,406,395
Guardian Life Insurance Ltd. Group Insurance 630,809 -
42. FOREIGN CURRENCY TRANSACTION

During the year foreign currency transaction was as follows:
2015-2016 2014-2015
Euro USD Euro USD
Materials and Others 2,422,400 3,875,412 3,538,673 5,711,248
Export Earnings - 27,919,813.63 - 49,233,533.99
43. GENERAL
43.1 All financial information presented in Taka have been rounded off to the nearest Taka, Taka in
Thousand (000).
43.2 Figures of the year 2014-2015 have been rearranged whenever considered necessary to ensure
comparability with the current period.
44. CONTINGENT LIABILITIES

There was no sum for which the company was contingently liable as on June 30, 2016.


Annual Report 2016
SCHEDULE OF FIXED ASSETS AS OF 30 JUNE 2016
Schedule -A
60
PROPERTY, PLANT AND EQUIPMENT: Tk. 270,743,930
Amount in Taka
COST DEPRECIATION
Written
Particulars Balance as Addition Adjustment / Balance as Rate Balance as Charged Adjustment / Balance
Down Value
on during the disposal on (%) on during disposal as on
as on
01.07.2015 year during 30.06.2016 01.07.2015 the year during 30.06.2016
30.06.2016
the year the year
Land 147,675,936 8,411,000 - 156,086,936 - - - - - 156,086,936
Building 162,227,469 - - 162,227,469 10 138,388,076 2,383,939 - 140,772,015 21,455,454

Annual Report 2016
Plant & Machinery 442,630,598 154,500 - 442,785,098 15 377,066,353 9,854,383 - 386,920,737 55,864,361
Furniture & fittings 26,873,315 177,675 - 27,050,990 10 22,062,103 489,532 - 22,551,635 4,499,355
Vehicles 99,270,127 10,254,855 - 109,524,982 20 71,026,904 5,660,254 - 76,687,158 32,837,824
Total 2015-2016 878,677,445 18,998,030 - 897,675,475 - 608,543,436 18,388,108 - 626,931,545 270,743,930
Total 2014-2015 866,127,059 12,550,386 - 878,677,445 - 588,174,417 20,369,019 - 608,543,436 270,134,008
Property, plant & equipment- Unit I Schedule A-01

Amount in Taka
COST DEPRECIATION
Written
Particulars Balance as Addition Adjustment / Balance as Rate Balance as Charged Adjustment / Balance
Down Value
on during the disposal on (%) on during disposal as on
as on
01.07.2015 year during 30.06.2016 01.07.2015 the year during 30.06.2016
30.06.2016
the year the year
Land 134,906,690 8,411,000 - 143,317,690 - - - - - 143,317,690
Building 41,031,128 - - 41,031,128 10 37,356,469 367,466 - 37,723,935 3,307,193
Plant & Machinery 328,690,186 154,500 - 328,844,686 15 269,691,819 8,869,501 - 278,561,321 50,283,365
Furniture & fixture 25,990,274 177,675 - 26,167,949 10 21,323,311 475,107 - 21,798,418 4,369,531
Vehicles 98,783,627 10,254,855 - 109,038,482 20 70,543,106 5,659,714 - 76,202,820 32,835,662
Total 2015-2016 629,401,905 18,998,030 - 648,399,935 - 398,914,705 15,371,788 - 414,286,494 234,113,441
Total 2014-2015 616,851,519 12,550,386 - 629,401,905 - 381,961,600 16,953,105 - 398,914,705 230,487,200
Charged to:
Cost of Production 10,368,910
Profit & Loss Account 5,002,878
15,371,788
SCHEDULE OF FIXED ASSETS
Addition of land represents purchase of 15 decimal land at Kandi Boilarpur, Savar , Dhaka.
Addition of plant & machinery represents purchase of Milling Drum parts
Vehicle purchased for management
Addition of furniture & fittings represent purchase of computer, printer and ancillaries.
There are no intangible assets.
Depreciation has been charged on reducing balance method.
Property, plant & equipment- Unit II

Schedule A-02
Amount in Taka
COST DEPRECIATION
Particulars Balance as Addition Adjustment / Balance as Rate Balance as Charged Adjustment / Balance Written
on during the disposal on (%) on during disposal as on Down Value
01.07.2015 year during 30.06.2016 01.07.2015 the year during 30.06.2016 as on
the year the year 30.06.2016
Land 12,769,246 - - 12,769,246 - - - - - 12,769,246

Building 121,196,341 - - 121,196,341 10 101,031,607 2,016,473 - 103,048,080 18,148,261
Plant & Machinery 113,940,412 - - 113,940,412 15 107,374,534 984,882 - 108,359,416 5,580,996
Furniture & fixture 883,041 - - 883,041 10 738,792 14,425 - 753,217 129,824
Vehicles 486,500 - - 486,500 20 483,798 540 - 484,338 2,162
Total 2015-2016 249,275,540 - - 249,275,540 - 209,628,731 3,016,321 - 212,645,052 36,630,488
Total 2014-2015 249,275,540 - - 249,275,540 - 206,212,817 3,415,914 - 209,628,731 39,646,809
Depreciation of Unit II Taka 3,016,321 charged against rental income.
Annual Report 2016

NOTICE OF ANNUAL GENERAL MEETING
Notice is hereby given that the 40th Annual General Meeting of Apex Tannery Limited will be held on
Sunday, October 02, 2016 at 10:00 a.m. at the Gulshan Shooting Sport Federation, Gulshan-1,
Dhaka-1212, to transact the following business:
1 To receive and adopt the Audited Accounts for the year ended June 30, 2016 and the
Reports of the Auditors and Directors thereon
2 To declare dividend
3 To elect Director
4. To appoint Managing Director
5. To appoint auditors for the year 2016-2017 and fix their remuneration
By Order of the Board

September 8, 2016
127 Hazaribagh T/A
Dhaka-1209
(Jagadish Kumar Bhanja FCS)
Company Secretary
Notes:
1. September 8, 2016 is the record date. Shareholders whose names will appear in the Members register of
the Company or in the Depository Register on that date will eligible to attend at the Annual General
Meeting and receive dividend .
2. A member entitled to attend and vote at the Annual General Meeting may appoint a proxy in his stead.
The proxy form, duly stamped must be deposited at the Corporate Office of the Company not later than
48 (forty eight) hours before the time fixed for the meeting. Annual report and proxy form can be available
on the website www.apextannery.com.
NOTICE OF ANNUAL GENERAL MEETING

3. Admission to the hall will be only on production of the attendance slip sent with the notice.
4. In compliance with the Bangladesh Securities and Exchange Commission Circular No. SEC/ CMRRCD
/2009-193/154 dated 24 October, 2013 no Gift/ Gift Coupon/ Food Box/Biscuit Box/Cash or Cash kinds
shall be distributed at the Annual General Meeting.

Annual Report 2016
Notes

Annual Report 2016
PROXY FORM
I/We
of
being a Member of Apex Tannery Limited, hereby appoint
Mr./Ms.
of
as my /our proxy to attend and vote for me/us and on my/our behalf at the 40th Annual General Meeting
of the company to be held on Sunday, October 02, 2016 at 10:00 a.m. and/or at any adjournment
thereof.
As witness my hand this day of 2016.

Affix
Revenue
Signature of Proxy Stamp of
Tk. 20.00
Signature of the Shareholder
PROXY FORM
No. of shares held
Register Folio/BO ID No.
Note: A Member entitled to attend and vote at the General Meeting may appoint a proxy to attend and vote on his behalf. The proxy form
duly completed must be deposited at the registered office of the Company not later than 48 hours before the time fixed for the meeting.

ATTENDANCE SLIP
I do hereby record my attendance at the 40th Annual General Meeting being held on Sunday, October
02, 2016 at 10:00 a.m. at Gulshan Shooting Sport Federation, Gulshan-1, Dhaka-1212.
Name of member/proxy
Register Folio/BO ID No.

ATTENDANCES SLIP
Signature
Note: Shareholders attending meeting in person or proxy are requested to complete the attendance slip and hand it over at the entrance
of the meeting hall.

Annual Report 2016

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39th Annual General Meeting of the Company held on 4 October, 2015

A partial view of the Shareholders at the 39th Annual General Meeting

Apex Tannery Limited

Apex Tannery Limited

Apex Tannery Limited 03

04 Apex Tannery Limited

HUMAN RESOURCES COMMITTEE REGISTERED OFFICE

M. Abdul Majed 127 Hazaribagh T/A,

Apex Tannery Limited 05

Syed Manzur Elahi Md. Rahmatullah

Syed Nasim Manzur Md. Hedayetullah Md. Iftikhar-uz-zaman

Faruq Ahmad Siddiqi Sayed Alamgir Farrouk Chowdhury M. Abdul Majed

Independent Director Independent Director Executive Director

Ansarul Islam Anup Kumar Mukherjee Jagadish Kumar Bhanja

06 Apex Tannery Limited

Syed Manzur Elahi Md. Rahmatullah

(BAPLC) A.K.M.Rahmatullah University College,

Apex Tannery Limited 07

Syed Nasim Manzur Md. Hedayetullah

Managing Director Director

08 Apex Tannery Limited

Mr. Iftikhar-uz-zaman Faruq Ahmad Siddiqi Sayed Alamgir Farrouk Chowdhury

Chairman Former Chairman Retired Secretary to the Govt.

Deputy Managing Director, ICB. Education

Apex Tannery Limited 09

Ansarul Islam M. A. Majed

Past Responsibilities Director

Anup Kumar Mukherjee FCA Jagadish Kumar Bhanja FCS

Past Responsibilities Past Responsibilities

Head of Accounts and Finance, Company Secretary, Central Insurance

10 Apex Tannery Limited

Proposed cash dividend 60,960 68,580

Apex Tannery Limited 15

This Year Previous Year

INDUSTRY OUTLOOK AND POSSIBLE FUTURE DEVELOPMENTS

RISKS AND CONCERNS

16 Apex Tannery Limited

CORPORATE & FINANCIAL REPORTING

Apex Tannery Limited 17

CORPORATE GOVERNANCE COMPLIANCE REPORT

EXTERNAL AUDITORS APPOINTMENT

On behalf of the Board,

August 16, 2016 Syed Manzur Elahi

18 Apex Tannery Limited

Particulars 2016 2015 2014 2013 2012

Gross profit 252,681 273,390 225,764 253,309 271,157

Profit before tax 110,011 117,843 106,931 126,047 131,981

Net profit after tax 90,994 95,269 84,024 100,157 107,676

Authorized capital 500,000 500,000 500,000 500,000 500,000

Issued and paid up capital 152,400 152,400 152,400 152,400 152,400

Property, plant & equipment 270,744 270,134 277,953 280,531 241,175

Current assets 917,218 1,144,001 1,109,035 1,112,356 1,313,429

Current liabilities 575,602 542,389 313,070 311,474 525,849

Net current assets 341,616 601,612 795,965 800,882 787,580

Dividend 60,960 68,580 68,580 60,960 53,340

Earnings per share (Taka) 5.97 6.25 5.51 6.57 7.07

Dividend per share (Taka) 4.00 4.50 4.50 4.00 3.50

Price earnings ratio (Times) 23.30 17.71 25.88 13.20 14.58

Dividend yield ratio (%) 2.88 4.07 3.16 4.61 3.39

Current ratio 1.59 2.11 3.54 3.57 2.50

Quick ratio 0.54 1.14 2.10 2.28 1.00

Return on Shareholders fund (%) 8.30 8.87 8.02 9.77 11.01

Interest coverage ratio 4.38 3.23 3.70 3.34 2.79