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These financial statements have been prepared on going concern basis under historical cost
convention in accordance with the Bangladesh Financial Reporting Standards (BFRS) and
Bangladesh Accounting Standards (BAS), the Companies Act 1994 and other applicable laws
and regulations in Bangladesh as applicable.
2.02 Property, plant and equipment
Tangible fixed assets have been stated at cost as reduced by accumulated depreciation. Fixed
assets costing less than Taka 1,000 are recognized as expenditure irrespective of their useful
lives.
2.03 Depreciation
Depreciation is provided on all fixed assets, at various rates on a reducing balance method
over their estimated useful lives. Depreciation on additions to fixed assets are charged for the
full year in the year of acquisition while no depreciation is charged in the year of
retirement/disposal, Property, plant and equipment
Rates of Depreciation
Name of Fixed Assets
(%)
Mixture Machine 20%
Furniture & Fixtures 10%
Computer 20%
Fire Extinguishers 20%
Vibration Machine 20%
Water pump 20%
Bricks breaking Machine 20%
Welding Machine 20%
Steel shutter 20%
2.04 Accounts receivable
Accounts receivable, which generally have within 90 days terms, are recognized and carried at
original invoiced amount.
Revenue is recognized net of discounts when the products are delivered and accepted by the
customer. In few cases the Company is used to sale on credit in most of the cases the products
are sold in cash at their different sales outlet in Dhaka and elsewhere. In case of credit sales the
revenue so recognized are recovered within 30 to 45 days.
2.06 Inventories
Inventories are valued at lower of cost and net realizable value. Inventories comprise of raw
materials, goods in transit, work-in-process, finished goods.
a) Foreign currency transactions have been converted into Bangladesh Taka at the prevailing
rate on the date of transaction.
b) The imported plant & equipment has been converted at historical rates.
2.07 General