Accounting Practice in Listed Companies in Bangladesh

1. Basis of Accounting

Basis of Accounting
Sl. Name of Companies Ref
Cash Accrual
1 Saiham Cotton Mills Limited - Yes 2.2 Basis of Preparation

2 Nurani Dyeing and Sweater Limited - Yes 2.06 Accrual Basis

3 Pacific Denims Limited - Yes 16. Principle Accounting Policies

2.01 Basis of Preparation and

4 R. N. Spinning Mills Limited - Yes Presentation of Financial
Statement

2.1 Basis of Preparation and

5 Safko Spinning Mills Limited - Yes Presentation of Financial
Statement

2. Inventory Valuation Technique: FIFO/LIFO/ Weighted Average / NRV/ Others

Inventory valuation
Sl. Name of Companies Ref
Technique
1 Saiham Cotton Mills Limited Net Realizeable Value 2.10 Inventories
2 Nurani Dyeing and Sweater Limited Net Realizeable Value 3.04 Inventories
3 Pacific Denims Limited Average Cost 16.09 Inventories
4 R. N. Spinning Mills Limited N/A N/A
5 Safko Spinning Mills Limited Average Cost 2.5 Inventories

3. Preparation of the financial statement.

Preparation of Financial Statement

Sl
Name of Companies Ref
. Vertical Horizontal

1 Saiham Cotton Mills Limited Yes - 2.3 Basis of Reporting

Nurani Dyeing and Sweater 2.01 Statement of
2 Yes -
Limited Compliance
4.0 Corporate Financial
3 Pacific Denims Limited Yes -
Statements and Reporting
2.01 Basis of Preparation and
4 R. N. Spinning Mills Limited Yes - Presentation of the Financial
Statements
2.1 Basis of Preparation and
5 Safko Spinning Mills Limited Yes - Presentation of the Financial
Statements
4. Method of Depreciation: Straight Line/ Declining Balance / Double Declining / Sum of Year
Digit/ Activity Method

Sl
Name of Companies
.
1 Saiham Cotton Mills Limited
Nurani Dyeing and Sweater
2 Declining Balance Method
Limited
3 Pacific Denims Limited
4 R. N. Spinning Mills Limited
5 Safko Spinning Mills Limited
Methods of Depreciation
Declining Balance Method
Declining Balance Method
Declining Balance Method
Straight Line Method
Sum of Year Digit
Declining Balance Method
Ref
2.8 Property Plant and Equipment
3.2.3 Depreciation on Property, Plant &
Equipment
16.03 Depreciation of Tangible Assets
2.08 Depreciation of Fixed Assets
2.08.1 Accelerated Depreciation Allowance
2.2 Recognition of Property, Plant ,
Equipment and Depreciation

5. Method of Cash Flow Statement: Direct/ Indirect

Method of Cash Flow Statement

Sl. Name of Companies Ref
Direct Indirect
1 Saiham Cotton Mills Limited Yes - Statement of Cash flow
Nurani Dyeing and Sweater
2 Yes Statement of Cash flow
Limited -
3 Pacific Denims Limited Yes - Statement of Cash flow
4 R. N. Spinning Mills Limited Yes - Statement of Cash flow
5 Safko Spinning Mills Limited Yes - Statement of Cash flow

6. Proportion of Long Term Liability over Total Asset

Total Long % of Long Term

Sl
Name of Companies Term Total Assets Liabilities over Ref
.
Liabilities Total Assets
Saiham Cotton Mills Statement of
1 556,597,015 5,781,821,898 10%
Limited Financial Position
Nurani Dyeing and Statement of
2 277,235,170 1,961,603,189 14%
Sweater Limited Financial Position
Statement of
3 Pacific Denims Limited 567,872,648 3,035,758,409 19%
Financial Position
R. N. Spinning Mills Statement of
4 20,460,584 7,486,152,857 0.3%
Limited Financial Position
Safko Spinning Mills Statement of
5 452,801,254 1,542,222,030 29%
Limited Financial Position
7. Proportion of Inventory over Total Asset

% of Total
Sl Total
Name of Companies Total Assets Inventories over Ref
. Inventories
Total Assets
Saiham Cotton Mills Statement of
1 1,108,561,348 5,781,821,898 19%
Limited Financial Position
Nurani Dyeing and Statement of
2 450,853,211 1,961,603,189 23%
Sweater Limited Financial Position
Statement of
3 Pacific Denims Limited 529,279,513 3,035,758,409 17%
Financial Position
R. N. Spinning Mills Statement of
4 1,395,802,380 7,486,152,857 19%
Limited Financial Position
Safko Spinning Mills Statement of
5 286,215,571 1,542,222,030 19%
Limited Financial Position

8. Proportion of Non-Current Asset over Total Asset

% of Non-Current
Sl Non-Current
Name of Companies Total Assets Asset over Total Ref
. Asset
Assets
Saiham Cotton Mills Statement of
1 3,414,238,540 5,781,821,898 59%
Limited Financial Position
Nurani Dyeing and Statement of
2 663,170,656 1,961,603,189 34%
Sweater Limited Financial Position
Pacific Denims Statement of
3 1,177,012,324 3,035,758,409 39%
Limited Financial Position
R. N. Spinning Mills Statement of
4 5,002,073,301 7,486,152,857 67%
Limited Financial Position
Safko Spinning Mills Statement of
5 1,029,389,858 1,542,222,030 67%
Limited Financial Position

9. Proportion of Current Liability over Total Asset

% of Current
Sl Name of
Current Liability Total Assets Liabilities over Ref
. Companies
Total Assets
Saiham Cotton Mills Statement of
1 1,830,450,803 5,781,821,898 32%
Limited Financial Position
Nurani Dyeing and Statement of
2 625,567,575 1,961,603,189 32%
Sweater Limited Financial Position
Pacific Denims Statement of
3 351,585,294 3,035,758,409 12%
Limited Financial Position
R. N. Spinning Mills Statement of
4 921,395,623 7,486,152,857 12%
Limited Financial Position
Safko Spinning Statement of
5 559,580,390 1,542,222,030 36%
Mills Limited Financial Position
10. Methods of Changing the Accounting Policies and Estimates: Prospective Application /
Retrospective Application.

Sl
Name of Companies Methods Used Ref
.
Prospective Application and
1 Saiham Cotton Mills Limited 2.4 Use of Estimates and Judgments
Retrospective Application
Nurani Dyeing and Sweater
2 As per BAS 8 2.04 Applicable Standard
Limited
7.00 Corporate Accounting
3 Pacific Denims Limited As per BAS 8
Standards Practiced
2.06 IAS and IFRS adopted by the
4 R. N. Spinning Mills Limited As per BAS 8
management
5 Safko Spinning Mills Limited N/A N/A

11. Proportion of Contingent Liability over Total Asset

% of Contingent
Sl Contingent
Name of Companies Total Assets Liabilities over Total Ref
. Liability
Assets
Saiham Cotton Mills Statement of
1 - 5,781,821,898 0%
Limited Financial Position
Nurani Dyeing and Statement of
2 - 1,961,603,189 0%
Sweater Limited Financial Position
Statement of
3 Pacific Denims Limited - 3,035,758,409 0%
Financial Position
R. N. Spinning Mills Statement of
4 - 7,486,152,857 0%
Limited Financial Position
Safko Spinning Mills Statement of
5 - 1,542,222,030 0%
Limited Financial Position

12. Proportion of Intangible Asset over Total Asset

Sl Intangible % of Intangible Assets

Name of Companies Total Assets Ref
. Assets over Total Assets
Saiham Cotton Mills 5,781,821,8 Statement of
1 0%
Limited - 98 Financial Position
Nurani Dyeing and 1,961,603,1 Statement of
2 0%
Sweater Limited - 89 Financial Position
3,035,758,4 Statement of
3 Pacific Denims Limited 0%
- 09 Financial Position
R. N. Spinning Mills 7,486,152,8 Statement of
4 0%
Limited - 57 Financial Position
Safko Spinning Mills 1,542,222,0 Statement of
5 0%
Limited - 30 Financial Position
13. Net Profit after Tax to Net Sales

Sl Net Profit % of Net Profit after

Name of Companies Total Sales Ref
. After Tax tax over Net Sales
Statement of Profit
Saiham Cotton Mills 158,130,5 2,989,827,1 or Loss and Other
1 5%
Limited 39 21 Comprehensive
Income
Statement of Profit
Nurani Dyeing and 53,914,9 1,109,771,2 or Loss and Other
2 5%
Sweater Limited 87 76 Comprehensive
Income
Statement of Profit
181,547,4 2,126,218,8 or Loss and Other
3 Pacific Denims Limited 9%
62 06 Comprehensive
Income
Statement of Profit
R. N. Spinning Mills 206,267,1 2,188,498,6 or Loss and Other
4 9%
Limited 54 12 Comprehensive
Income
Statement of Profit
Safko Spinning Mills 12,196,7 587,492,3 or Loss and Other
5 2%
Limited 26 15 Comprehensive
Income

14. Presentation of EPS: Basic/Diluted

Sl Basic Diluted
Name of Companies Ref
. EPS EPS Remarks
Diluted Earnings Per Share
Saiham Cotton Mills 2.13 Earning Per was not required as there was
1 1.06 N/A
Limited Share (EPS) no scope for dilution during
the year under review
Nurani Dyeing and 28. Basic EPS Diluted EPS was calculated
2 1.15 1.15
Sweater Limited 28.01 Diluted EPS Considering the IPO
44. Basic & Diluted Diluted EPS was calculated
3 Pacific Denims Limited 1.43 1.43
EPS Considering the IPO
Diluted Earnings Per Share
R. N. Spinning Mills 28. Earnings per was not required as there was
4 0.58 N/A
Limited Share no scope for dilution during
the year under review
Safko Spinning Mills 24 Earning per Diluted EPS was calculated
5 N/A 0.42
Limited Share Considering the Bonus Share
15. Date of Incorporation of the company.

Date of
Sl. Name of Companies Ref
Incorporation
1 Saiham Cotton Mills Limited 30-May-2002 1.1 Corporate Information
Nurani Dyeing and Sweater
2 14-Dec-2005 1.00 Legal Status of the Company
Limited
1.00 Corporate History of the Reporting
3 Pacific Denims Limited 12-Jan-2011
Entity
4 R. N. Spinning Mills Limited 20-Feb-2007 1.01 Legal form of the company

5 Safko Spinning Mills Limited 20-Jun-1994 1. Legal form of the enterprise